EMPLOYEE PORTAL

Date: January 4, 2022
To: All Elgin Sweeper Employees
From: Mike Higgins, VP/GM Elgin Sweeper
RE: OSHA Vaccine Mandate Update

We hope you enjoyed a safe and healthy holiday season. Happy New Year to all.

We are writing you to inform you of an emergency, mandated policy that, unless the U.S. Supreme Court rules otherwise, we will have no choice to roll out and implement on Monday, January 10, 2022, effective that same date. The policy would be applicable to all employees and facilities of Federal Signal and its U.S.-based subsidiaries (collectively, the “Company”).

As we previously reported, OSHA issued an emergency temporary standard (“ETS”) that requires companies with 100 or more workers to ensure all of their employees are either fully vaccinated for COVID-19 or provide a weekly negative test and wear a face covering while working.

A federal court initially blocked OSHA from enforcing the ETS by a court order. However, a federal appellate court recently overturned the block and authorized OSHA to begin enforcing the ETS. OSHA has since announced compliance deadlines (e.g., face covering requirements must begin on January 10, 2022, and weekly testing must commence on February 9, 2022, for employees who are not fully vaccinated by that date).

While the matter has been appealed to the U.S. Supreme Court, a decision by the Court may not issue before January 10, 2022. Penalties for non-compliance with OSHA’s ETS are severe, reaching as high as $14,000 per violation, and as high as $136,532 for any employer who deliberately disregards the mandate, with the potential for multiple citations per business.

As a result of these developments, we now have no choice but to comply with the OSHA’s ETS, unless and until the Supreme Court issues a ruling barring OSHA from enforcing the ETS. To be clear, if the Supreme Court blocks OSHA from enforcing the ETS prior to January 10, 2022, we will not roll out the Policy. If the Supreme Court blocks OSHA from enforcing the ETS after January 10, 2022, we will immediately discontinue the Policy.

As stated, we intend to implement our mandated ETS policy (the “Policy”) on January 10, 2022, absent a Supreme Court ruling or other legal development. We believe we have structured the Policy in a manner that is safe and the least intrusive on each of our employees and the most respectful of their personal privacy and choice.

Some notable features of the Policy include but are not limited to:

1. 1. Employees would have the choice to vaccinate or not by OSHA’s February 9, 2022, compliance deadline. At this time, we would not mandate vaccination and instead would give our employees the choice to vaccinate or not.
   
   
2. Pursuant to the ETS, employees who are not vaccinated by February 9, 2022, would be required by the ETS to submit to weekly COVID-19 testing.
   
   
   1. The Company would conduct weekly COVID-19 testing on site during work hours, meaning employees who test on-site would be paid for their time spent testing.
   2. The Company would bear the costs of on-site testing for unvaccinated employees. We would not require employees to pay for on-site testing at this time.
   3. Employees would test in the presence of a Company representative who would proctor the test and on-site testing would be conducted pursuant to a schedule determined and announced by the Company.
   4. Test results would be maintained confidentially by the Company.
   5. Employees who test positive would be removed from the workplace in accordance with the requirements of the ETS and permitted to return after meeting the ETS’s return to work requirements.
3. Effective on January 10, 2022, unvaccinated employees would be required by the ETS to wear face coverings in accordance with the ETS.
   
   
4. Pursuant to the ETS, employees would be required to inform the Company of their vaccination status and intent to vaccinate or not on or before January 10, 2022, or as soon as possible thereafter. Such records would be maintained confidentially by the Company.

We are in the final stages of finalizing a draft of our Policy. We will provide you with a copy of the Policy on January 10, 2022, in the event the U.S. Supreme Court either does not rule by that date or rules in favor of the upholding OSHA’s ability to enforce the ETS.
We remain hopeful for a ruling from the Supreme Court on or prior to January 10th. We will keep you informed.
We thank you for your continued support and understanding during these emerging and challenging developments.