A man wears an anti-vaccine button as people and teachers protest against New York City mandated vaccines against the coronaviruses disease in front of the United States Court in Manhattan.
The vaccine mandate for federal contractors was halted by a U.S. district court in Georgia.
The Associated Builders and Contractors, a trade group that represents the construction industry, is likely correct that President Joe Biden exceeded his authority when he issued the mandate, according to the U.S. District Court for the Southern District of Georgia.
In its practical application, it operates as a regulation of public health. It will have a major impact on the economy, as it limits contractors and members of the workforces ability to perform work on federal contracts. It appears to have a lot of economic and political significance.
The court said that the mandate is likely to result in a reduction in available members of the workforce.
Biden issued an executive order requiring contractors to make sure their workers are protected against Covid. The White House gave contractors until Dec. 8 to comply, but later pushed it back to Jan. 4. Millions of workers are covered by the requirements.
The court told the Biden administration to stop enforcement of the mandate in all covered contracts. A week ago, a federal district court in Kentucky halted enforcement in Kentucky, Ohio and Tennessee.
The judge wrote that limiting the relief to only those before the court would prove unwieldy and cause more confusion. He wrote that it wouldn't give relief to the builders association for contracts in other states.
The Biden administration has been trying to get companies to make sure their employees are protected against Covid and the Omicron variant of the virus, but the court injunction is the latest blow.
Businesses with 100 or more employees were forced to stop being tested for vaccine last month. The administration was ordered to refrain from implementing the requirements until further notice by the 5th Circuit.
The business requirements of the Occupational Safety and Health Administration are not as strict as those of the federal contractor mandate. It does not include a broad testing option. Companies can put in protocols for those with exemptions.
Major airlines have been working for months to fulfill the requirements despite Tuesday's order. Southwest Airlines told staff on Saturday that 98% of its employees have uploaded vaccine cards or requested exemptions.
The airline said that staff with exemptions may have to wear masks at work. In August of this year, United Airlines implemented a company vaccine mandate, and by the fall of the same year, more than 98% of its 67,000 employees had been vaccined.
CNBC'sLeslie Josephs contributed to the report.
