The Employee Free Choice Act ("EFCA") is proving to be the ultimate pigskin in a game of political football! Two years ago, with President Bush promising a veto if EFCA ever landed on his desk, members of the House of Representatives (which passed the bill) and of the Senate (which didn't pass the bill) could proclaim their support of EFCA with absolutely no fear the bill would actually become law. Many elected officials in both Houses of Congress who supported the bill received funding from and the backing of Big Labor in being re-elected. Of particular note in this category of clever politicians is Mark Pryor, Democrat Senator from Arkansas. Senator Pryor was a co-sponsor of EFCA last time around, along with then-Senator, now President, Barack Obama. Senator Pryor continued to voice his support for EFCA during the 2008 election cycle, which helped him avoid any serious challengers and to enjoy union support and dollars. Now, with a fresh six-year term under his belt, Senator Pryor has assumed a more moderate position. And he is in good company.
President Obama, unlike his predecessor, has pledged to sign EFCA into law if it is approved by the House of Representatives and the Senate. This fact, along with a slowed economy, has made for rougher sailing for EFCA in 2009 than it faced in 2007.
The aspect of EFCA considered most offensive is the elimination of the secret-ballot election. As bad (or worse) to employers is the arbitration provision that would allow an arbitrator to impose a collective bargaining agreement for a two year period for the parties. The latter would effectively put an end to over 80 years of labor law in which the parties were left to their own devices when drafting a labor contract.
EFCA once seemed like a sure thing, with the Senate posing a potential obstacle to passage of the law. Now, some have gone so far as to declare it dead for the current session of Congress. We believe the unions will huddle up and emerge with a fourth quarter strategy designed to put them in a position to score a few points in this game of political football. We see compromise on the horizon that will win over key figures such as Senator Arlen Specter (R - Pa.). Because if EFCA is passed in some form, even a weaker version than hoped, it can be amended later if need be . . . particularly if the political winds continue to blow in the Democrats' favor!
Wednesday, May 6, 2009
ARRA/COBRA Poster
For those of you who have health benefits plans subject to COBRA, here is a new poster from the Department of Labor detailing information on the premium reduction resulting from the American Recovery and Reinvestment Act:
http://www.dol.gov/ebsa/pdf/joblossposter2.pdf
http://www.dol.gov/ebsa/pdf/joblossposter2.pdf
Wednesday, April 22, 2009
The warranty must have expired on my crystal ball, because it's not working
With the news today of the death/suicide of Freddie Mac's interim CFO David Kellermann, and the anticipated ripple this is expected to have, brace yourselves for more uneasiness in the workforce. The fragile economic conditions right now are primed for quick reaction to any semblance of trouble. Speculation is sure to abound on blogs, Facebook, Twitter, LinkedIn and the abundance of other communication connections that the suicide was surely linked to some dark, lurking secret at the already-scarred financial giant. Rumblings in the news lead to wrinkled and furrowed brows in the workplace.
We would all like to think that the reductions-in-force and reduced schedules are behind us; that the company has been trimmed as lean as it can be; and that we've surely found the bottom. I certainly hope so. Consider taking a moment to take the temperature of your employees. If you have a chance to assuage some of the fears of your workers, take it.
By no means do we suggest you make promises of job security, salary continuation and the like. Those who are "in the know" at work can often forget that you are among the minority. You and your management team have been living and breathing budgets, watching expenditures like a hawk, and exercising more fiscal responsibility than you ever thought you would have to. If these items have consumed you, it is natural for you to assume that they have consumed everyone else. In fact, your employees may only see the duck swimming on the surface and not notice the feet furiously paddling underneath. So throw them a mask, invite them into your world, at least for a glimpse, and hear them out. They may be dwelling on matters that you can eliminate as a concern.
None of us have the crystal ball necessary to predict when we'll return to some sense of normalcy. It may be that we are as normal as we are ever going to be. Regardless, those in leadership should take this opportunity to embrace your workforces and open the communication lines. We'll all be better for it.
We would all like to think that the reductions-in-force and reduced schedules are behind us; that the company has been trimmed as lean as it can be; and that we've surely found the bottom. I certainly hope so. Consider taking a moment to take the temperature of your employees. If you have a chance to assuage some of the fears of your workers, take it.
By no means do we suggest you make promises of job security, salary continuation and the like. Those who are "in the know" at work can often forget that you are among the minority. You and your management team have been living and breathing budgets, watching expenditures like a hawk, and exercising more fiscal responsibility than you ever thought you would have to. If these items have consumed you, it is natural for you to assume that they have consumed everyone else. In fact, your employees may only see the duck swimming on the surface and not notice the feet furiously paddling underneath. So throw them a mask, invite them into your world, at least for a glimpse, and hear them out. They may be dwelling on matters that you can eliminate as a concern.
None of us have the crystal ball necessary to predict when we'll return to some sense of normalcy. It may be that we are as normal as we are ever going to be. Regardless, those in leadership should take this opportunity to embrace your workforces and open the communication lines. We'll all be better for it.
Wednesday, March 25, 2009
COME ON DOWN! YOU'RE THE NEXT CONTESTANT ON. . . .
Well, if only OFCCP audits were as much fun as one of my all-time favorite game shows. Nanny and I would keep our own score at home, frequently winning the Showcase Showdown over whatever contestant the network could throw at us!
But I digress. It is probably cruel to liken a compliance review letter to winning a contestant call-out. For those of you subject to Executive Order 11246 (and you know who you are!), the Office of Federal Contractor Compliance recently issued its list of supply and service contractors who are being considered for a compliance audit in the upcoming year. Unfortunately, you probably will not find out if you made the list until your establishment receives a letter from the regional OFCCP office notifying you that you have been selected for an audit.
If you receive one of the Corporate Scheduling Announcement Letters, you generally will have 30 days to submit your current Affirmative Action Plan to the OFCCP office listed in the letter. If you have been subjected to an audit within the last two years, if you have a Functional Affirmative Action Plan agreement with the OFCCP, or if you meet a few other criteria specified by the OFCCP here, then you may be excused from an evaluation.
Should you be doing anything? Not unless you receive one of the letters--besides, of course, ensuring that your plan is up to date. You may want to alert the chief officers at your various establishments (including corporate headquarters), and anyone identified as your EEO Coordinator, to be on the lookout for one of the CSALs.
I'll stay on 89 cents, Bob.
But I digress. It is probably cruel to liken a compliance review letter to winning a contestant call-out. For those of you subject to Executive Order 11246 (and you know who you are!), the Office of Federal Contractor Compliance recently issued its list of supply and service contractors who are being considered for a compliance audit in the upcoming year. Unfortunately, you probably will not find out if you made the list until your establishment receives a letter from the regional OFCCP office notifying you that you have been selected for an audit.
If you receive one of the Corporate Scheduling Announcement Letters, you generally will have 30 days to submit your current Affirmative Action Plan to the OFCCP office listed in the letter. If you have been subjected to an audit within the last two years, if you have a Functional Affirmative Action Plan agreement with the OFCCP, or if you meet a few other criteria specified by the OFCCP here, then you may be excused from an evaluation.
Should you be doing anything? Not unless you receive one of the letters--besides, of course, ensuring that your plan is up to date. You may want to alert the chief officers at your various establishments (including corporate headquarters), and anyone identified as your EEO Coordinator, to be on the lookout for one of the CSALs.
I'll stay on 89 cents, Bob.
Monday, March 23, 2009
Time flies. . . .
but I probably won't complete that familiar phrase with its familiar ending.
It has been almost a month since the last blog post. My apologies. Sometimes things come up outside of work that demand your attention, so those less time-sensitive tasks that you would pick up here and there (such as maintaining the blog) tend to suffer.
The world around me has been moving at a frenetic pace, one where I find that I'm hanging on by the ever-whitening tips of my fingers. That makes work a nice outlet. It makes it an even better one when I know that I come to work not just with co-workers, but friends and confidants who have concern for me.
This environment is not one unique to Hunter, Smith & Davis. My clients are geniuses at promoting these types of relationships. They've managed to maintain enough caution that, in most situations, the line doesn't get blurred. Doing so helps diffuse problems when it comes time to counsel, discipline, evaluate, etc.
So in these difficult times, these uncertain times, knowing that friends are both inside and outside the office can bring some comfort (and boost morale at the office). Think about ways you can engender a feeling of camaraderie at your workplace--you may find yourself pleasantly surprised at the benefits that come with it!
It has been almost a month since the last blog post. My apologies. Sometimes things come up outside of work that demand your attention, so those less time-sensitive tasks that you would pick up here and there (such as maintaining the blog) tend to suffer.
The world around me has been moving at a frenetic pace, one where I find that I'm hanging on by the ever-whitening tips of my fingers. That makes work a nice outlet. It makes it an even better one when I know that I come to work not just with co-workers, but friends and confidants who have concern for me.
This environment is not one unique to Hunter, Smith & Davis. My clients are geniuses at promoting these types of relationships. They've managed to maintain enough caution that, in most situations, the line doesn't get blurred. Doing so helps diffuse problems when it comes time to counsel, discipline, evaluate, etc.
So in these difficult times, these uncertain times, knowing that friends are both inside and outside the office can bring some comfort (and boost morale at the office). Think about ways you can engender a feeling of camaraderie at your workplace--you may find yourself pleasantly surprised at the benefits that come with it!
Tuesday, February 24, 2009
Are you sure this fuss isn't just over a set of golf clubs?
For HR professionals, all the discussion threads about COBRA probably make you wish that the golf company by the same name was simply unveiling a new, state-of-the-art line of rescue woods. Alas, not so (well, maybe Cobra is doing something like that, but that's not the point of this entry).
The economic stimulus package known as the American Recovery and Reinvestment Act of 2009 ("ARRA") brings much hope with it that jobs will be stabilized and the economy rejuvenated. For those of you in HR, it would appear that you have yet another layer of job security. The ARRA means changes to our methodologies if we want to avail ourselves of the carrots dangling from the sticks. When those methods are "adjusted," it almost always means a wave of new rules for HR professionals and the laws within which they work.
COBRA is significantly impacted by the ARRA:
1. A COBRA subsidy is now available, where the government provides 65% for continuation coverage premiums for up to 9 months (in your best commercial narrator voice: certain exclusions may apply).
2. But we know that "free" money from the government isn't really free, right? Correct! (in your best Alex Trebec impersonation). The subsidy actually comes from the employer's pocket, to be paid upfront. The employer then is allowed to deduct the 65% figure from the Social Security and Medicare taxes paid.
3. Pull out those personnel records, because the COBRA subsidy is backdated to September 1, 2008. That means that you should quickly refresh your memory on who has experienced a COBRA-qualifying event from September 1, 2008 and. . . .
4. Letters/notices should be sent to those who qualify for the subsidy. Your plan administrator should handle this step for you, but you should get in touch with said administrator to ensure that nothing is needed from you, especially if you have changed insurance carriers since September 1, 2008.
5. While you're furiously scribbling down notes on the ARRA, jot down this action item: amend group health plan documents to show that the ARRA COBRA changes have been adopted and incorporated.
6. Remember that "some exclusions may apply" caveat? One exclusion is for health care flexible spending accounts--those are not eligible for the subsidy.
7. The retroactive nature of the ARRA does not mean that subsidies will reach back that far. Rather, those who fall within this time frame are to be given another opportunity elect COBRA. The subsidy will become effective on the first COBRA continuation period after the enactment of the ARRA. For most of you, that would mean March 1, 2009.
You should work with your plan administrator to identify those individuals who may be eligible for the subsidy payment and calculate the premium payment now required under ARRA.
Isn't it nice to be needed?
The economic stimulus package known as the American Recovery and Reinvestment Act of 2009 ("ARRA") brings much hope with it that jobs will be stabilized and the economy rejuvenated. For those of you in HR, it would appear that you have yet another layer of job security. The ARRA means changes to our methodologies if we want to avail ourselves of the carrots dangling from the sticks. When those methods are "adjusted," it almost always means a wave of new rules for HR professionals and the laws within which they work.
COBRA is significantly impacted by the ARRA:
1. A COBRA subsidy is now available, where the government provides 65% for continuation coverage premiums for up to 9 months (in your best commercial narrator voice: certain exclusions may apply).
2. But we know that "free" money from the government isn't really free, right? Correct! (in your best Alex Trebec impersonation). The subsidy actually comes from the employer's pocket, to be paid upfront. The employer then is allowed to deduct the 65% figure from the Social Security and Medicare taxes paid.
3. Pull out those personnel records, because the COBRA subsidy is backdated to September 1, 2008. That means that you should quickly refresh your memory on who has experienced a COBRA-qualifying event from September 1, 2008 and. . . .
4. Letters/notices should be sent to those who qualify for the subsidy. Your plan administrator should handle this step for you, but you should get in touch with said administrator to ensure that nothing is needed from you, especially if you have changed insurance carriers since September 1, 2008.
5. While you're furiously scribbling down notes on the ARRA, jot down this action item: amend group health plan documents to show that the ARRA COBRA changes have been adopted and incorporated.
6. Remember that "some exclusions may apply" caveat? One exclusion is for health care flexible spending accounts--those are not eligible for the subsidy.
7. The retroactive nature of the ARRA does not mean that subsidies will reach back that far. Rather, those who fall within this time frame are to be given another opportunity elect COBRA. The subsidy will become effective on the first COBRA continuation period after the enactment of the ARRA. For most of you, that would mean March 1, 2009.
You should work with your plan administrator to identify those individuals who may be eligible for the subsidy payment and calculate the premium payment now required under ARRA.
Isn't it nice to be needed?
Wednesday, February 4, 2009
New Child Labor Law Poster in Tennessee
Tennessee has issued a revised child labor law poster. If you employee individuals who are 17 and under, this poster must be displayed in your Tennessee locations with your other required posters. (If you're saying, "What required posters?", then we have more to talk about than just the new poster.)
Here is a link for the revised child labor poster:
http://www.state.tn.us/labor-wfd/WageRegPoster.pdf
As a reminder, if you have Spanish-speaking employees, some of your federal and state law posters are available in that language and should be displayed. If you need assistance in locating those or determining which ones you need, please contact us.
Happy posting!
Here is a link for the revised child labor poster:
http://www.state.tn.us/labor-wfd/WageRegPoster.pdf
As a reminder, if you have Spanish-speaking employees, some of your federal and state law posters are available in that language and should be displayed. If you need assistance in locating those or determining which ones you need, please contact us.
Happy posting!
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