Compensation Solutions Blog
Human Resources Outsourcing (HRO – PEO – ASO – Payroll – Agency)
September 16, 2011 4:29 pm
The National Labor Relations Board (NLRB) has issued a final rule requiring most private employers who fall under the NLRB, to post a notice for all employees regarding their rights under the National Labor Relations Act. Agricultural, railroad and airline employers, as well as the U.S, Post Office, are exempt from the requirement.
The notice will inform employees that they have a right to improve wages and working conditions, to form, join or assist a union, and to bargain collectively with an employer. They may also refuse to exercise those rights. The notice will further provide examples of unlawful employer and union conduct, and will list contact information for employees who have questions or complaints.
The notice is similar to one already required for federal contractors. It will be made available by November 1, 2011, will be an 11” x 17” document and must be posted, as with all other labor posters, in a place where it can be conspicuously viewed by other employees.
Failure to post the notice may be treated as an unfair labor practice under the NLRA.
September 07, 2011 4:57 pm
Please see below for important information from TransitChek:
“As your commuter benefits provider, we want to remind you of an upcoming fare change that will affect commuting costs for some of your employees.
New fares for the Port Authority of New York and New Jersey (PATH) will go into effect on September 18, 2011.
Below is a list of the new PATH fares:
- 2-trip $4.00
- 10-trip $15.00
- 20-trip $30.00
- 40-trip $60.00
- 30-Day pass $65.00
- 7-Day pass $21.00
- 1-Day pass $6.25
- Senior $1.00
Employees can find complete fare information on the PATH website at http://www.panynj.gov/port-authority-ny-nj.html .
Affected employees can update their TransitChek benefits or enroll in the program by:
1. Downloading the TransitChek Mobile app on their smart device and going to the “Change Benefit” screen to update your benefit amount.
2. Logging into their account online at https://tams.transitcenter.com/login.aspx .
3. Calling 1.888.618.CHEK (2435).
Changes made before September 30th will go into effect for their November benefit.
If you have any questions or concerns, please call TransitChek Customer Service at 1.866.550-CHEK (2435).”
August 18, 2011 1:04 pm
The United States Senate introduced a bill aimed at curtailing what is becoming an excessive amount of 401(k) loans. Statistics show that roughly 29% of 401(k) participants had an outstanding loan in 2010, up from 22% in 2005, with the average loan amount at almost $8,000. 401(k) participants are also making hardship withdrawals at a high level, at an average of $5,500 in 2010. These hardship withdrawals were used mainly to 1) avoid a home foreclosure or eviction; or 2) to pay medical bills.
The Savings Enhancement by Alleviating Leakage in 401(k) Savings Act of 2011 (SEAL Act) contains provisions intended to prevent the growing dependence on 401(k) accounts as a means of accessing short-term cash relief. It contains several components:
It limits the number of loans a participant can take out to three at one time. Currently the limit is determined by the employer. This is the first time since 1980 that the federal government has tried to limit 401(k) loans.
- The rule for repayment of loans would change. Currently, employees with 401(k) loans who lose their jobs are required to repay their loan within sixty (60) days. The proposed legislation would give employees until the tax deadline of the year they took the loan to contribute the outstanding balance to an IRA, and the early withdrawal penalty would be applied to the loan balance.
- The new legislation would ban debit cards allowing investors to borrow from their retirement accounts. The ReservePlus card, introduced in 2006, provides a debit card that allows participants to take out loans with an interest rate of the prime rate plus 2.9%.
- The bill would allow participants to make contributions to their 401(k) during the six (6) months after a hardship withdrawal. This practice is currently prohibited.
- The new bill would extend the rollover period for 401(k) rollover amounts.
Lawmakers hope the new legislation, if passed, will help protect Americans’ retirement savings.
August 18, 2011 1:03 pm
In the largest settlement in the history of the New York State Department of Labor, a New York restaurant chain agreed to a $5.1MM settlement for wage and hour violations affecting at least 800 workers. The DOL accused the chain of paying less than minimum wage, failing to pay overtime wages and failing to keep accurate payroll records. The settlement is for back wages and $100,000 in penalties.
August 18, 2011 12:59 pm
Governor Chris Christie of New Jersey is allowing the state to implement its medical marijuana law, putting aside his concerns about possible federal prosecution.
In June, Gov. Christie said he wanted a blanket assurance from the U.S. Justice Department that it wouldn’t prosecute state-sanctioned marijuana programs before proceeding. This past spring, State Attorney General Paula Dow sent two letters to the Justice Department specifically asking whether state employees would be prosecuted.
In a memo directed to several states dated June 30, the Justice Department said that local federal prosecutors should not focus on patients and caregivers complying with state medical laws. Gov. Christie, relying also on his past experience as a prosecutor and on comments made in 2008 by then Presidential candidate Barack Obama, who said, in essences, that federal prosecutors had bigger fish to fry.
Former New Jersey Governor Jon Corzine signed the bill into law shortly before leaving office in 2010. New Jersey joins 15 other states and the District of Columbia in allowing the use of marijuana for medical purposes; however, New Jersey’s law is among the strictest in the nation. Only certain diseases can be treated, patients are allowed only 2 ounces every thirty (30) days. New Jersey’s law is also the only law right now that prohibits patients from growing their own crop at home.
So far, 92 physicians from 19 counties have registered to participate in the program, and six nonprofit centers were awarded license to grow and distribute marijuana.
June 16, 2011 12:18 pm
U.S. Citizenship and Immigration Services (USCIS) adopted the final rule that adopts the interim rule, in place since 2009, governing the use of the Form I-9 process. All private employers, agricultural recruiters and referrers-for-a-fee are required to use this form to verify the eligibility of all new hires to work in the United States.
Specifically, the final rule:
- Prohibits employers from accepting unexpired documents;
- Eliminates from List A Forms the Temporary Resident Card and the outdated Employment Authorization Cards (Forms I-688, I-688A and I-688B);
- Adds to List A unexpired foreign passports with the temporary I-551 stamp, or machine readable immigrant visas with the temporary I-551 stamp;
- Also adds to List A passports from the Federated States of Micronesia and the Republic of the Marshall islands, along with Form I-94 or Form I-94A.
The final rule does not make any changes to how the form is completed, nor has the USCIS issued a new I-9 form along with the final rule. Employers can continue to use either the current version of the form (Rev. 08/07/2009) or the previous version (Rev. 02/02/2009).
June 08, 2011 5:57 pm
President Barack Obama signed legislation to repeal the 1099 reporting requirements under the Affordable Care Act. IRS Form 1099 is the reporting form used to report income other than wages, salaries and tips. Payers use a 1099 Form for each transaction. The rules, which would have taken effect in 2012, required businesses to report aggregate payments for all goods and services to any one vendor of $600 or more. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 was signed into law on April 14, 2011, in response to intense lobbying by the U.S. Chamber of Commerce and other business trade groups. They objected to this part of the healthcare reform legislation on the grounds that the recordkeeping and tracking would have created a significant and costly burden on small businesses.
Under the Act, the penalties for failure to report payments would have increased fron $15 to $30 per return, to a maximum of $75,000 for small employers and $250,000 for large employers. To offset the revenue lost as a result of the repeal, the Small Business Paperwork Mandate Elimination Act of 2011 will increase the amount that individuals who will receive subsidies to purchase coverage on the exchange will have to repay. The exchange is at the heart of the healthcare reform legislation and will begin in 2014.
May 31, 2011 3:29 pm
The Federal Government’s Americans with Disabilities Act Amendments Act of 2008 (ADAAA) was enacted on September 25, 2008, and became effective on January 1, 2009. The main goal of the ADAAA was to clarify employers’ obligations regarding discrimination, and to enforce the provisions of reasonable accommodation. The Equal Employment Opportunity Commission (EEOC) published their final ruling implementing the ADAAA on March 25, 2011, and stated that “The focus is on how the person was treated rather than on what an employer believes about the nature of the person’s impairment.”
The proposed rule stated that certain impairments would consistently meet the definition of a disability. Instead of publishing a list if impairments that would not be considered disabilities, the EEOC regulations establish the intent of Congress to create predictable, consistent and workable standards to use when determining if an individual is “substantially limited” in performing a major life activity.
The final determination by the EEOC provided nine “rules of construction” to guide analyses as to what constitutes a disability. By applying these rules, some impairments will be found to almost always constitute a disability, and other examples will be clearly determined to be disabilities, such as epilepsy, diabetes, cancer, HIV infection and bipolar disorder.
1) The term “substantially limits” shall be construed broadly in favor of expansive coverage, to the maximum extent permitted by the terms of the ADA. “Substantially limits” is not meant to be a demanding standard.
2) An impairment is a disability within the meaning of this section if it substantially limits the ability of an individual to perform a major life activity as compared to most people in the general population. An impairment need not prevent, or significantly or severely restrict, the individual from performing a major life activity in order to be considered substantially limiting; but make note that not every individual with an impairment is covered.
3) The primary object of attention in cases brought under the ADA should be whether covered entities have complied with their obligations and whether discrimination has occurred, not whether an individual’s impairment substantially limits a major life activity. No extensive analysis of coverage is required for the merits of a discrimination claim to be considered.
4) The determination of whether an impairment substantially limits a major life activity requires an individualized assessment. However, in making this assessment, the term “substantially limits” shall be interpreted and applied to require a degree of functional limitation that is lower than the pre-ADAAA standard.
5) The ability of an individual to perform a major life activity is to be compared to most people in the general population, and it need not be exacting so should not require scientific, medical, or statistical analysis. Nothing in this paragraph is intended, however, to prohibit the presentation of scientific, medical, or statistical evidence to make such a comparison where appropriate.
6) The ameliorative effects of mitigating measures are not to be considered in determining whether an individual’s condition is substantially limiting. However, ordinary eyeglasses or contact lenses shall be considered an exception.
7) An impairment that is episodic or in remission would be covered if it would substantially limit a major life activity when active.
8) An impairment only needs to substantially limit one major life activity in order to be considered a substantially limiting impairment.
9) An impairment may be substantially limiting regardless of its duration, (i.e., impairments which last for just a few days may be covered, depending on its severity).
Employers should revise their policies accordingly, and also take note where state and local laws may apply.
May 17, 2011 4:24 pm
Delaware Governor Jack Markell signed into law SB 30, which creates the recognized legal relationship of civil union in Delaware for eligible persons. The Civil Union and Equality Act of 2011 also recognizes legal unions between two persons of the same sex entered into in jurisdictions outside of Delaware, provided that the parties meet the Delaware eligibility requirements to enter into a civil union. Effective January 1, 2012, all eligible persons will have all of the same rights, benefits, protections and responsibilities as married persons under Delaware law.
Delaware is now one of four states to allow civil unions. Hawaii, Illinois and New Jersey also recognize them. Connecticut, Vermont and New Hampshire have replaced civil unions with same-sex marriage.
May 10, 2011 5:11 pm
In what is viewed by some as an attempt to attract more businesses, the State of Florida is cutting into the time period during which unemployed residents can collect unemployment benefits. A huge tax increase is looming for Florida businesses under the current system. Companies are scheduled to pay a minimum of $206.55 per employee per year in 2012, up from $72.10 for 2011.
State lawmakers approved a bill that would reduce the number of weeks claimants could collect, dependent upon the state’s unemployment rate. Florida would be the first state to correlate the two. Under the new bill, which Governor Rick Scott is expected to sign, beginning in 2012 the maximum time period that a claimant could collect would be twelve weeks if the unemployment rate is at 5% or below. The number of weeks an individual could receive jobless benefits would increase by one week for every 0.5 percent the jobless rate increases above 5 percent. It would cap at 23 weeks, down from the current 26 weeks, if the state’s unemployment rate is 10.5% or higher.
Florida’s current unemployment rate is 11.1%, the third highest in the country. Michigan and Missouri have also recently cut their state benefits to 20 weeks, and Arkansas reduced theirs by one week.
New Jersey just introduced a bill that would lower the tax increase on employers over a period of three years. Instead of levying a $300 tax per employee this year, state lawmakers introduced a bill that would increase taxes by $130 this year, then increase it additionally over the next two years. In addition, the bill would slow the rate at which the taxes are lowered, allowing the state’s UI trust fund to build a reserve.