Legislative Changes Businesses Should Watch!

by | Aug 20, 2009 | HR Legislative Updates

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  THIS RULE HAS BEEN RETRACTED FOR NOW!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!