Legislation is a mirror of society; a snapshot in time of issues thought to require government intervention and oversight.
As a result, employers are in a position to interpret legislation, ensure compliance with government mandates, and create new policies by which to manage legislation in the workplace.
Many employment related issues, with the exception of national health care and immigration, garner little attention from the media or discussed during speeches or debates.
Little activity is expected in the 110th Congress, but several proposed pieces of legislation may be resurrected post-election.
The majority of legislation is backed by the Democratic Party.
Employers need to understand the impact such legislation may have on employer and employee rights, workplace productivity and the bottom line.
Labor Relations On the union front, a bill called the Employee Free Choice Act (H.
R.
800) proposes an amendment to the National Labor Relations Act (NLRB) which would change the way workers choose to become part of a union, requiring the NLRB to certify a union securing a majority of signatures through a signed authorization card process.
Although the President stated he would veto the bill, reconsideration after the election is expected.
Employee Benefits In the shadow of Enron and other misuse of employee pension funds, several bills have been presented which provide additional worker protections and more stringent requirements for employers.
The Pension Protection Technical Corrections Act (H.
R 3361) amends the Employee Retirement Income Security Act (ERISA) and the and the Internal Revenue Code, as amended by the Pension Protection Act of 2006, proposes changes regarding defined benefit pension plans, including to: (1) revise rules concerning amendments of a plan while a waiver of minimum funding standards is in effect; (2) amend provisions that allow the Secretary of Treasury to provide a transition rule for estimating an at-risk plan's funding target attainment percentage; (3) exclude from the definition of prohibited payment for purposes of limitations on accelerated benefit distributions a payment that may be immediately distributed without the consent of the participant; (4) extend exemption from fiduciary liability during a blackout period to otherwise qualified blackout periods of less than three days; and (5) revise deduction rules for employer contributions to one or more defined contribution plans.
A similar bill, S.
1974 was passed in December of 2007.
A compromise bill is expected to be negotiated.
Health Benefits Protection Act of 2007 (H.
R.
1322) amends the Employee Retirement Income Security Act of 1974 (ERISA) prohibiting group health plans from making post-retirement reductions in retiree benefits and require employers to restore benefits reduced after retirement.
No action is expected.
Long-Term Care Affordability and Security Act, (H.
R.
3633) (S.
2237)a bi-partisan bill allowing for long-term care insurance to be offered among employer-sponsored cafeteria plans as well as flexible spending arrangements.
The bill enjoys full support but is not expected to pass this session.
Leave Policies The Healthy Families Act (H.
R.
1542) (S.
910) requires employers with 15 or more employees to provide seven days of paid sick leave to full-time (30 hours) workers.
This bill seems to be a top priority although it could have a devastating effect on small employers.
The Survivors' Empowerment and Economic Security Act, (S.
1136) would require employers with 15 or more employees to provide 30 days of job-protected, unpaid leave to employees to address issues relating to domestic violence.
Outlook is unclear at this time.
Proposed Expansions to the Family Medical Leave Act When the Family Medical Leave Act passed in 1993, it caused a tremendous hardship on employers, which has been attributed to poor drafting in the law.
There have been many attempts to broaden the scope of the FMLA which would result in employers assuming more record-keeping tasks, administrative burdens and increasing costs.
The Family Leave Insurance Act of 2007 (S.
1681) a bi-partisan bill, provides eight weeks of paid leave to employees for leaves permitted under the Family and Medical Leave Act.
This would apply to employers with 50 or more workers.
Employees, employers and the federal government would finance this benefit program.
This bill is expected to move forward.
Family and Medical Leave Inclusion Act (H.
R.
2792) would amend the Family and Medical Leave Act to permit leave to care for a same-sex spouse, domestic partner, parent-in-law, adult child, sibling, or grandparent who has a serious health condition.
Currently, the law only applies to immediate family which is defined as parent, child or spouse.
The Family Leave Insurance Act of 2008 (H.
R.
5873) provides up to 12 weeks of paid leave for birth, adoption or foster care placement of a child; to care for a child, parent, spouse, domestic partner, grandchild, grandparent or sibling with a serious health condition; for the employee's own serious health condition; or because of any qualifying exigency arising from a family member's call to active duty; or to care for an injured servicemember.
Employers with two or more employees would be covered.
Employees would be eligible for the paid leave after 625 hours of work in the preceding six months with his/her current employer.
This particular bill is not expected to pass but there is a strong movement to change FMLA leaves to paid leaves.
Currently, the law states that the leave is unpaid and allows employers to mandate the use of sick and vacation time during qualified leaves.
The proposed bills noted reflect the focus on workplace balance and family, increased flexibility in terms and conditions of employment and greater rights for employees.
Although it is not clear which bills will move forward, the emphasis on specific workplace issues is apparent.
Employers need to note these trends and review their existing policies, procedures and determine whether support of proposed legislation is in their company's best interest and make their voices heard.
As a result, employers are in a position to interpret legislation, ensure compliance with government mandates, and create new policies by which to manage legislation in the workplace.
Many employment related issues, with the exception of national health care and immigration, garner little attention from the media or discussed during speeches or debates.
Little activity is expected in the 110th Congress, but several proposed pieces of legislation may be resurrected post-election.
The majority of legislation is backed by the Democratic Party.
Employers need to understand the impact such legislation may have on employer and employee rights, workplace productivity and the bottom line.
Labor Relations On the union front, a bill called the Employee Free Choice Act (H.
R.
800) proposes an amendment to the National Labor Relations Act (NLRB) which would change the way workers choose to become part of a union, requiring the NLRB to certify a union securing a majority of signatures through a signed authorization card process.
Although the President stated he would veto the bill, reconsideration after the election is expected.
Employee Benefits In the shadow of Enron and other misuse of employee pension funds, several bills have been presented which provide additional worker protections and more stringent requirements for employers.
The Pension Protection Technical Corrections Act (H.
R 3361) amends the Employee Retirement Income Security Act (ERISA) and the and the Internal Revenue Code, as amended by the Pension Protection Act of 2006, proposes changes regarding defined benefit pension plans, including to: (1) revise rules concerning amendments of a plan while a waiver of minimum funding standards is in effect; (2) amend provisions that allow the Secretary of Treasury to provide a transition rule for estimating an at-risk plan's funding target attainment percentage; (3) exclude from the definition of prohibited payment for purposes of limitations on accelerated benefit distributions a payment that may be immediately distributed without the consent of the participant; (4) extend exemption from fiduciary liability during a blackout period to otherwise qualified blackout periods of less than three days; and (5) revise deduction rules for employer contributions to one or more defined contribution plans.
A similar bill, S.
1974 was passed in December of 2007.
A compromise bill is expected to be negotiated.
Health Benefits Protection Act of 2007 (H.
R.
1322) amends the Employee Retirement Income Security Act of 1974 (ERISA) prohibiting group health plans from making post-retirement reductions in retiree benefits and require employers to restore benefits reduced after retirement.
No action is expected.
Long-Term Care Affordability and Security Act, (H.
R.
3633) (S.
2237)a bi-partisan bill allowing for long-term care insurance to be offered among employer-sponsored cafeteria plans as well as flexible spending arrangements.
The bill enjoys full support but is not expected to pass this session.
Leave Policies The Healthy Families Act (H.
R.
1542) (S.
910) requires employers with 15 or more employees to provide seven days of paid sick leave to full-time (30 hours) workers.
This bill seems to be a top priority although it could have a devastating effect on small employers.
The Survivors' Empowerment and Economic Security Act, (S.
1136) would require employers with 15 or more employees to provide 30 days of job-protected, unpaid leave to employees to address issues relating to domestic violence.
Outlook is unclear at this time.
Proposed Expansions to the Family Medical Leave Act When the Family Medical Leave Act passed in 1993, it caused a tremendous hardship on employers, which has been attributed to poor drafting in the law.
There have been many attempts to broaden the scope of the FMLA which would result in employers assuming more record-keeping tasks, administrative burdens and increasing costs.
The Family Leave Insurance Act of 2007 (S.
1681) a bi-partisan bill, provides eight weeks of paid leave to employees for leaves permitted under the Family and Medical Leave Act.
This would apply to employers with 50 or more workers.
Employees, employers and the federal government would finance this benefit program.
This bill is expected to move forward.
Family and Medical Leave Inclusion Act (H.
R.
2792) would amend the Family and Medical Leave Act to permit leave to care for a same-sex spouse, domestic partner, parent-in-law, adult child, sibling, or grandparent who has a serious health condition.
Currently, the law only applies to immediate family which is defined as parent, child or spouse.
The Family Leave Insurance Act of 2008 (H.
R.
5873) provides up to 12 weeks of paid leave for birth, adoption or foster care placement of a child; to care for a child, parent, spouse, domestic partner, grandchild, grandparent or sibling with a serious health condition; for the employee's own serious health condition; or because of any qualifying exigency arising from a family member's call to active duty; or to care for an injured servicemember.
Employers with two or more employees would be covered.
Employees would be eligible for the paid leave after 625 hours of work in the preceding six months with his/her current employer.
This particular bill is not expected to pass but there is a strong movement to change FMLA leaves to paid leaves.
Currently, the law states that the leave is unpaid and allows employers to mandate the use of sick and vacation time during qualified leaves.
The proposed bills noted reflect the focus on workplace balance and family, increased flexibility in terms and conditions of employment and greater rights for employees.
Although it is not clear which bills will move forward, the emphasis on specific workplace issues is apparent.
Employers need to note these trends and review their existing policies, procedures and determine whether support of proposed legislation is in their company's best interest and make their voices heard.
Source...