Department of Labor officials recently announced that they have proposed new regulations governing the Family and Medical Leave Act , the New York Times reports (Greenhouse, New York Times, 1/25). The federal law currently requires businesses with 50 or more workers to offer employees who have worked at the business for one year -- or 1,250 hours -- 12 weeks of unpaid leave. The law also requires that unpaid leave be available for serious health conditions, to care for a newly adopted child, or to care for a seriously ill spouse, child or parent.
Currently, employees can take two days off before requesting leave, but the proposed rule generally would require workers to call in to request leave before taking it, the Times reports. The department also is drafting regulations to put into effect changes that Congress approved earlier this month, including leave for the families of wounded veterans or leave for "any qualifying exigency" related to a family member's call-up to active duty or deployment, according to the Times (New York Times, 1/25). According to AP/Google.com, areas of the law likely to see changes include medical certification for FMLA leave, unscheduled intermittent leave for people claiming chronic health conditions, and employee awareness of their rights under the law.
Friday, February 8, 2008
Thursday, February 7, 2008
New DOL Wellness Guidelines
In December, the US Department of Labor's Employee Benefits Security Administration issued guidelines to its national and regional offices (Field Assistance Bulletin 2007-04) on "supplemental coverage," a form of health insurance covering co-pays and deductibles in regular insurance. Supplemental coverage is generally used to fill such gaps in either Medicare or Tricare, the health-care plan for current and retired military members. But in recent years, some employers have incorporated a form of supplemental insurance into their wellness programs.
Last July, federal agencies finalized rules granting some exceptions from HIPAA to certain wellness programs. Under the rules, employers can offer financial incentives of as much as 20% of the cost of covering an employee. Popular are discounts to nonsmokers or contributions toward insurance premiums for workers who complete health-risk assessments or have their blood pressure checked.
The new Field Assistance Bulletin establishes an enforcement safe harbor under which supplemental health insurance will be considered excepted benefits for purposes of the health reform provisions in Part 7 of ERISA. Similar supplemental coverage that does not meet the standards for the safe harbor may be subject to enforcement actions by the department.
To fall within the safe harbor, to be similar supplemental coverage, a policy, certificate, or contract of insurance must meet the standards in four criteria detailed in the safe harbor: (1) independent of primary coverage, (2) supplemental for gaps in primary coverage, (3) supplemental in value of coverage, and (4) similar to Medicare supplemental coverage. This guidance has been coordinated with the Departments of Treasury, and Health and Human Services.
Last July, federal agencies finalized rules granting some exceptions from HIPAA to certain wellness programs. Under the rules, employers can offer financial incentives of as much as 20% of the cost of covering an employee. Popular are discounts to nonsmokers or contributions toward insurance premiums for workers who complete health-risk assessments or have their blood pressure checked.
The new Field Assistance Bulletin establishes an enforcement safe harbor under which supplemental health insurance will be considered excepted benefits for purposes of the health reform provisions in Part 7 of ERISA. Similar supplemental coverage that does not meet the standards for the safe harbor may be subject to enforcement actions by the department.
To fall within the safe harbor, to be similar supplemental coverage, a policy, certificate, or contract of insurance must meet the standards in four criteria detailed in the safe harbor: (1) independent of primary coverage, (2) supplemental for gaps in primary coverage, (3) supplemental in value of coverage, and (4) similar to Medicare supplemental coverage. This guidance has been coordinated with the Departments of Treasury, and Health and Human Services.
Wednesday, February 6, 2008
EEOC Bulletin Effects Those 65 and Over
An Equal Employment Opportunity Commission ruling from last month allows employers to treat younger and older retirees differently without fear of being sued for age discrimination. It permits companies to maintain or spend more on benefits for younger retirees who aren't eligible for Medicare while reducing or eliminating benefits for older retirees. The EEOC says employers would be more likely to drop health care coverage for all retirees if they had to spend the same amount on insurance for both groups.
The AARP has asked for a U.S. Supreme Court ruling that the EEOC lacks authority to issue the regulation. The senior group argues that the regulation is discriminatory and shifts the burden of cost to older retirees.
A copy of the EEOC's Q&A on the ruling can be found at http://www.eeoc.gov/policy/docs/qanda_retireehealthrule.html
The AARP has asked for a U.S. Supreme Court ruling that the EEOC lacks authority to issue the regulation. The senior group argues that the regulation is discriminatory and shifts the burden of cost to older retirees.
A copy of the EEOC's Q&A on the ruling can be found at http://www.eeoc.gov/policy/docs/qanda_retireehealthrule.html
Friday, February 1, 2008
December Unemployment Rises
From the Bureau of Labor Statisticsof the U.S. Department of Labor :
The unemployment rate rose to 5.0 percent in December, while nonfarm payroll employment was essentially unchanged (+18,000). Job growth in several service-providing industries, including professional and technical services, health care, and food services, was largely offset by job losses in construction and manufacturing.
Average hourly earnings rose by 7 cents, or 0.4 percent.
The number of unemployed persons increased by 474,000 to 7.7 million in December and the unemployment rate rose by 0.3 percentage point to 5.0 percent. A year earlier, the number of unemployed persons was 6.8 million, and the jobless rate was 4.4 percent.
In December, unemployment rates rose for several major worker groups--adult men (to 4.4 percent), adult women (4.4 percent), whites (4.4 percent), and Hispanics (6.3 percent). The unemployment rates for teenagers (17.1 percent) and blacks (9.0 percent) were little changed. The unemployment rate for Asians was 3.7 percent, not seasonally adjusted. Most major worker groups experienced increases in their jobless rates over the year.
Both total employment, at 146.2 million, and the employment-population ratio, at 62.7percent, decreased in December following increases in November. Total employment was essentially unchanged over the year, while the employment-population ratio declined by 0.7 percentage point over the same period. The civilian labor force was essentially unchanged in December at 153.9 million. The labor force participation rate, at 66.0 percent, was unchanged over the month, but was 0.4 percentage point lower than a year earlier.
The number of persons who worked part time for economic reasons, at 4.7 million in December, was little changed over the month but was up by 456,000 over the year. This category includes persons who indicated that they would like to work full time but were working part time because their hours had been cut back or because they were unable to find full-time jobs.
The unemployment rate rose to 5.0 percent in December, while nonfarm payroll employment was essentially unchanged (+18,000). Job growth in several service-providing industries, including professional and technical services, health care, and food services, was largely offset by job losses in construction and manufacturing.
Average hourly earnings rose by 7 cents, or 0.4 percent.
The number of unemployed persons increased by 474,000 to 7.7 million in December and the unemployment rate rose by 0.3 percentage point to 5.0 percent. A year earlier, the number of unemployed persons was 6.8 million, and the jobless rate was 4.4 percent.
In December, unemployment rates rose for several major worker groups--adult men (to 4.4 percent), adult women (4.4 percent), whites (4.4 percent), and Hispanics (6.3 percent). The unemployment rates for teenagers (17.1 percent) and blacks (9.0 percent) were little changed. The unemployment rate for Asians was 3.7 percent, not seasonally adjusted. Most major worker groups experienced increases in their jobless rates over the year.
Both total employment, at 146.2 million, and the employment-population ratio, at 62.7percent, decreased in December following increases in November. Total employment was essentially unchanged over the year, while the employment-population ratio declined by 0.7 percentage point over the same period. The civilian labor force was essentially unchanged in December at 153.9 million. The labor force participation rate, at 66.0 percent, was unchanged over the month, but was 0.4 percentage point lower than a year earlier.
The number of persons who worked part time for economic reasons, at 4.7 million in December, was little changed over the month but was up by 456,000 over the year. This category includes persons who indicated that they would like to work full time but were working part time because their hours had been cut back or because they were unable to find full-time jobs.
Thursday, January 31, 2008
Supreme Court Tackles ADA case
The United States Supreme Court has granted certiorari from an Eighth Circuit decision and has agreed to address whether an employer violates its duty, under the Americans with Disabilities Act (ADA), to provide a reasonable accommodation to an employee when, instead of reassigning the employee to a vacant, equivalent position, it merely allows the employee to compete for that position. The grant of certiorari was limited to Question 1 of the petition, which stated: "If a disability prevents an employee from performing the essential functions of his or her current position, does the ADA require: (a) that the employer reassign the employee to a vacant, equivalent position for which he or she is qualified, as the Tenth and District of Columbia Circuits have held; or (b) that the employer merely permit the employee to apply and compete with other applicants for the vacant, equivalent position for which he or she is qualified, as the Seventh and Eighth Circuits have held?"
In the decision below, addressing an issue of apparent first impression for the court, the Eighth Circuit Court of Appeals held that an employer did not violate its duty of reasonable accommodation when it required an employee with a disability to enter a pool of applicants for a vacant router position, and ultimately assigned a more qualified applicant to the vacant position and the employee to a maintenance associate position with less pay than her previous position. The ADA did not require the employer to turn away a superior applicant for the router position in order to give the position to the employee in question. Even though the employee was able to perform the job duties of the vacant router position, the employer had a non-discriminatory policy of hiring the best applicant for available positions, the Court of Appeals reasoned. The maintenance position may not have been a perfect substitute job, or the employee's most preferred alternative job, but an employer is not required to provide a disabled employee with an accommodation that is ideal from the employee's perspective, only an accommodation that is reasonable, the court explained.
The ADA's the "reassignment" language cannot be satisfied by merely permitting a disabled incumbent employee to compete with the rest of the world for a vacant, equivalent position, the employee argued in her petition for a writ of certiorari. Moreover, the petition asserted, the judges who dissented from the denial of en banc rehearing correctly observed that the Eighth Circuit's ruling "renders a statutory provision in the ADA superfluous, overlooks EEOC guidance, and is contrary to the Supreme Court's admonition in US Airways, Inc. v. Barnett, 535 U.S. 391 (2002), that preferences are a valid means to achieve the statutory goals." (Case below: Huber v. Wal-Mart Stores, Inc., 486 F.3d 480 (C.A.8-Ark. 2007), reh'g and reh'g en banc den., 493 F.3d 1002 (C.A.8-Ark. 2007).)
In the decision below, addressing an issue of apparent first impression for the court, the Eighth Circuit Court of Appeals held that an employer did not violate its duty of reasonable accommodation when it required an employee with a disability to enter a pool of applicants for a vacant router position, and ultimately assigned a more qualified applicant to the vacant position and the employee to a maintenance associate position with less pay than her previous position. The ADA did not require the employer to turn away a superior applicant for the router position in order to give the position to the employee in question. Even though the employee was able to perform the job duties of the vacant router position, the employer had a non-discriminatory policy of hiring the best applicant for available positions, the Court of Appeals reasoned. The maintenance position may not have been a perfect substitute job, or the employee's most preferred alternative job, but an employer is not required to provide a disabled employee with an accommodation that is ideal from the employee's perspective, only an accommodation that is reasonable, the court explained.
The ADA's the "reassignment" language cannot be satisfied by merely permitting a disabled incumbent employee to compete with the rest of the world for a vacant, equivalent position, the employee argued in her petition for a writ of certiorari. Moreover, the petition asserted, the judges who dissented from the denial of en banc rehearing correctly observed that the Eighth Circuit's ruling "renders a statutory provision in the ADA superfluous, overlooks EEOC guidance, and is contrary to the Supreme Court's admonition in US Airways, Inc. v. Barnett, 535 U.S. 391 (2002), that preferences are a valid means to achieve the statutory goals." (Case below: Huber v. Wal-Mart Stores, Inc., 486 F.3d 480 (C.A.8-Ark. 2007), reh'g and reh'g en banc den., 493 F.3d 1002 (C.A.8-Ark. 2007).)
Wednesday, January 16, 2008
Important Deadlines Approaching
1/31 - Furnish Forms 1099 and W-2: Furnish each employee a completed Form W-2, Wage & Tax Statement for 2007.
2/1 - OSHA 300A Form: Employers need to post their 2007 Summary of Work-Related Injuries and Illnesses (Form 300A) from February 1st through April 30th of each year.
2/15 - W-4 Reminder: Any Form W-4 previously given to you claiming exemption from withholding has expired. Employers must change the withholding exemption to "single, with zero allowances" for employees who claimed total exemption from withholding for last year, unless those employees have completed a new Form W-4.
3/31 - Forms 1099 and 8027 Due: Employers are required to file (electronically) Forms 1099 and 8027 with the IRS. Form 1099 is used for reporting payment made to Independent Contractors. Form 8027 is to be filed by large food and beverage an establishment in which tipping is customary.
3/31 - Form W-2 Due: Form W-2 is to be filed with the Social Security Administration.
2/1 - OSHA 300A Form: Employers need to post their 2007 Summary of Work-Related Injuries and Illnesses (Form 300A) from February 1st through April 30th of each year.
2/15 - W-4 Reminder: Any Form W-4 previously given to you claiming exemption from withholding has expired. Employers must change the withholding exemption to "single, with zero allowances" for employees who claimed total exemption from withholding for last year, unless those employees have completed a new Form W-4.
3/31 - Forms 1099 and 8027 Due: Employers are required to file (electronically) Forms 1099 and 8027 with the IRS. Form 1099 is used for reporting payment made to Independent Contractors. Form 8027 is to be filed by large food and beverage an establishment in which tipping is customary.
3/31 - Form W-2 Due: Form W-2 is to be filed with the Social Security Administration.
Friday, January 11, 2008
Minimum Wage To Increase In July
The federal minimum wage is currently $5.85 per hour; it is scheduled to increase to $6.55 per hour on July 24, 2008. A number of states, including California, Illinois and Texas have also increased the minimum wage.
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