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Health Care reform is complex and difficult to understand.
You have until SEPTEMBER 2010 to get in compliance, or face fines.
Here is a synopsis of the IMMEDIATE changes ALL employers must comply with for the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act:
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The Hiring Incentives to Restore Employment Act of 2010 (HIRE) became law on March 18, 2010 as signed by President Obama. Unfortunately, this new law did not get a lot of press due to the Health Care Reform Passage, but is critical for employers who intend to hire.
Under this law, an employer who hires an employee after February 3, 2010 and before January 1, 2011, will receive a tax credit equal to the employer’s portion of the Social Security tax (FICA) for hiring an unemployed worker for new positions or replacement for employees who resigns or discharged for cause. All employers except government institutions are eligible for this great tax credit.
Key facts of the HIRE Act:
- Temporary payroll tax forgiveness of the employers 6.2% share of Social Security taxes (FICA) on wages paid to new hires. Employers will not have to match 6.2% of FICA on the employee’s wages for 2010. The exemption is effective March 19, 2010 to December 31, 2010.
- There is an additional general business income tax break of $1000 per employee hired for all businesses who hire a qualified employee under the ACT. This applies only if the employer continues to employ the employee for 52 weeks.
- Revised IRS Form 941 (Employers quarterly federal tax return) to document these tax credits.
To qualify for ACT, employees:
- Must be hired after Feb. 3, 2010 and before January 1, 2011
- Must certify and sign an affidavit stating the employee had not been employed for more than 40 hours during the 60 days period prior to the new hire date with new employer. On April 7, 2010 the IRS released its final version of Form W-11 which is the HIRE Employee Affidavit. The IRS does not require employers to send the affidavits in, however these should be kept in the employee’s file.
- Must be employed for a new position or replacing an employee who voluntarily quit or discharged for cause.
- Are not covered by the Work Opportunity Tax Credit program.
- Are not relatives of the employer.
- Can not earn more than $106,000 per year.
Reference: SHRM Article 3/27/2010: Hiring Incentives to Restore Employment Act of 2010 (HIRE)
Genetic Information is the most recent protected characteristic (such as race, religion, and sex) to be added to the Civil Rights Act of 1964.
The Genetic Information Nondiscrimination Act (GINA) of 2008 [Public Law 110-233, H.R. 493, S. 358] was signed into law by President Bush on May 21, 2008. The law prohibits health insurers and employers from discriminating on the basis of genetic information and sets a national baseline of protections from any such discrimination across the country. In the legislation, the term “genetic information” means a person’s genetic test results, the genetic test results of an individual’s family members and/or information about a genetic disease or disorder in family members.
Here are 5 things all employers need to do ASAP to be compliant with this law.
1) Revise all your EEO statements and job applications to include genetic non-discrimination.
2) Post new EEO nondiscrimination posters.
3) Train all managers on what this means. (CALL ME – I CAN HELP WITH THIS.)
4) Discontinue requests for family medical history from post offer or fitness of duty evaluations or in connection with reasonable accommodations.
5) Store genetic information in confidential medical files.
Additionally you need to be aware of the following:
- Employers are barred from disclosing genetic information.
- Employers cannot receive individual identifiable genetic information.
- Company wellness programs that provide premium differential for completing Health Risk Assessments, and ask for family history, may violate GINA if there are incentives given.
- You can be fined up to $50,000 for non-compliance!
President Obama signed this bill into law on 12/19/2009 (P.L. No:111-118). This federal spending bill includes two important provisions:
1. Extended and expanded the COBRA subsidy program enacted under the American Recovery and Reinvestment Act (ARRA). This expands the COBRA premium subsidy period to employees who were/or are involuntarily terminated on or before 2/28/10. Employers who have affected employees will pay the 65% subsidy for employees COBRA payments and employees will only need to pay 35% of their COBRA coverage. The COBRA premium subsidy is extended from 9 months to 15 months and employers must notify the affected terminated employees.
2. Extended unemployment benefits through July 31, 2010. For example, an individual who runs out of all their unemployment benefits on or before 2/20/2010 may be eligible for an extension of an additional 14-20 weeks of benefits. All affected employees are encouraged to contact your state’s unemployment office to understand their detailed unemployment benefits. Each state, depending on their unemployment rates will have different weekly extentions.
President Obama signed a FMLA coverage extension for Military Families on October 28, 2009. The 2010 National Defense Authorization Act (NDAA) extends FMLA exigency leave coverage to both active duty members of Armed Forces, Reserves and National Guard, and family members of active members of the Armed Forces, Reserves and National Guard. The FMLA provides 26 weeks of leave and is only for employers with 50 or more employees. This new laws covers FMLA caregiver leave for up to five years after the veteran ends active duty. Qualify exigencies are the following:
1. Short-notice deployment
2. Military event and related activities
3. Childcare and school activities
4. Financial and legal arrangements
5. Counseling
6. Rest and recuperation
7. Post-deployment activities and
8. Additional activities to address other events which arise out of the covered military members’ active duty or call to active duty.
President Obama approved the extension of Unemployment Benefits an extra 14 weeks of benefits in states with unemployment rates less than 8.5% and an extra 20 weeks in states with unemployment rates above 8.5%. Any individual whose benefits have expired will be eligible to re-apply for the additional benefits.
Click here to check the current unemployment rate in your state.

The U.S. Department of Labor plans increased enforcement of small-to-medium sized businesses after the September 2009 release of a 72-page report documenting what some call “rampant” violations of wage-and-hour laws by employers.
Martha Neil of the ABA Journal writes,
It [US DOL] is hiring 250 additional investigators to pursue claimed widespread practices by numerous employers of not paying the required minimum wage, not paying required overtime, and not allowing workers to take required breaks.
U.S. Secretary of Labor, Hilda Solis, issued a statement stating her department’s intention to audit small-to-medium sized employers.
According to Solis,
“During the first 6 months of the year, the Department of Labor (DOL) already has recovered more than $82 million in back wages for nearly 107,000 minimum wage workers.”
The U.S. DOL found the following violations:
- 1 in 4 workers (26%) were paid below minimum wage.
- 76% of those who worked overtime were not paid the required time and half.
- 69% of the employees did not receive their meals breaks.
- 70% of the employees did not get any pay for work performed outside their regular shift.
- 30% of tipped employees were not paid their tipped worker minimum wage.
- 57% of employees did not receive the mandatory pay stubs.
- 89% of employees working in home child care were paid less than minimum wage.
DAS HR Consulting, LLC advises employers to review their job descriptions and ensure proper Fair Labor Standards Act (FLSA) status.
The Equal Employment Opportunity Commission (EEOC) interprets the definition of a disability more broadly and expands the definition of “major life activities”. To learn more click here: Long-Awaited Proposed ADA Regulations Issued by the EEOC
Retracted “no match” letters rules
The Department of Homeland Security (DHS) has requested the rescinding of the “No MATCH” rule. The “No Match” rules would have required employers to re-verify employees social security numbers. Employers would have been subject to fines, and be forced to terminate employees if discrepancies were not resolved. THIS RULE HAS BEEN RETRACTED FOR NOW!
I-9 Extended
The Department of Homeland Security (DHS) has extended the current I-9 form which expired on 6/30/09 until DHS develops a new I-9 form.
E-Verify set to start 9/8/09
Federal contractors and subcontractors are to begin using the new E-Verify program on 9/8/09. If companies do not comply with the E-verify program they may lose government contracts, will not be able to be awarded new contracts and can be fined for each I-9 infraction.
Health Care Costs Increase
Estimated health care coverage costs are projected to increase 10-11% through the remainder of 2009 and 2010 according to National Survey of Insurers. (www.buckconsultants.com).
National Pay Raises
2009 median merit increases are 2% and 2010 expects 3% merit median increases (Watson Wyatt 2009/2010 U.S. Strategic Rewards Survey).
Health Care Reform
Legislation (HR 3200) under consideration in the House would require businesses to provide health benefits to their employees or pay a fee of 8% of the company’s payroll to help fund a public health care plan. The Senate version would require employers to offer health insurance to offer health insurance to their employees, with small business exemptions. Continue to watch this legislation!
Unemployment Rate
As of 8/7/09 the new national unemployment reate is 9.4%!
EFCA Update
The Employee Free Choice Act (EFCA) will be amended to exclude the controversial “card check” provision. Employer penalties and binding arbitration is still in the bill. Employers are encouraged to train supervisors in potential labor relations issues at the work place. Continue to watch this bill develop!
ADA On September 25, 2008, the President signed the Americans with Disabilities Act Amendments Act of 2008 (“ADA Amendments Act” or “Act”). The Act makes important changes to the definition of the term “disability” by rejecting the holdings in several Supreme Court decisions and portions of EEOC’s ADA regulations. The Act retains the ADA’s basic definition of “disability” as an impairment that substantially limits one or more major life activities, a record of such an impairment, or being regarded as having such an impairment. However, it changes the way that these statutory terms should be interpreted in several ways.
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