Season's Greetings from RGL Consultants

Legislation has just recently been introduced which would extend COBRA provisions for workers who are involuntarily terminated. This could potentially further complicate COBRA administration for many employers, given the timing of this proposed legislation.

The current COBRA subsidy (65% of COBRA health care premiums) is available for up to nine (9) months for employees who have lost their jobs since September 1, 2008, or lose their jobs through December 31, 2009. Unless the law is extended, this subsidy will no longer be available to employees laid off after December 31, 2009, and without an extension, employees who began utilizing the subsidy on March 1, 2009 (when it first generally became available) will have lost it as of November 30, 2009.

Under H.R. 3930, the COBRA subsidy would be extended and provided for a period of up to 15 months (an additional 6 months), and employees laid off from January 1, 2010 through June 30, 2010, would also become eligible for the subsidy.

Be prepared to communicate with and respond to your former employees, understandably confused about the premium amounts they are responsible for paying as of December 1, 2009.

Paid Sick Leave Discussion in Congress

On November 3, 2009, H.R. 3991 was introduced that would mandate five (5) days of paid sick leave for employees either sent home or told not to come to work due to the H1N1 flu virus. This Bill would apply to employers with 15 or more employees. In an odd provision of the proposed legislation, this mandate would not apply to employees who voluntarily call in sick due to H1N1. As a consequence, it would seem to encourage sick workers to come to work (thus exposing co-workers) so they could be sent home and be paid. Great plan!

and if that's not enough......

The Balancing Act of 2009 (honest, that's the real title)

Currently before Congress, H.R. 3047 would provide that Family Medical Leave Act (FMLA) absences would be paid, and eligible employees could take 12 weeks of leave over a 12-month period for family, medical or military-exigency reasons. Balance

A federal Family Medical Leave Insurance Fund, managed by the Department of Labor, would be established to finance absences. Employers and employees would jointly subsidize this trust fund by contributing 0.2% of employee earnings.

New forms of protected leave for both "parental involvement" and "family wellness" would be established, covered employers would have to provide at least seven (7) days of "specifically designated" paid sick leave per year, victims of domestic violence and sexual assault would also be protected, and employees would have to be allowed leave to care for a broader range of family members (same-sex spouses and domestic partners).

While the FMLA currently covers only employers with 50 or more employees, those with 15 or more employees (full-time and/or part-time) would be covered under the Balancing Act.

Update Labor Law Postings: GINA Change

Effective November 21, 2009, the Genetic Information Nondiscrimination Act (GINA) went into effect.

GINA prohibits employers' use of genetic information, restricts employers' acquisition of genetic information, and strictly limits disclosure of genetic information.

The EEOC has up-dated the Equal Employment Opportunity is the Law (EEO) notice with mandatory changes pursuant to the Genetic Information Nondiscrimination Act of 2008 (GINA).

All employers with 15 or more employees are required to update their EEO posting.

FMLA military leave provisions expanded

Effective October 28, 2009, the Family and Medical Leave Act (FMLA) was revised to expand the provisions relating to military family leave.

The changes expand the "qualifying exigency" leave to include the regular Armed Forces (not just the National Guard and Reserves). Also, this leave is now available in relation to any deployment to a foreign country, and is no longer limited to deployments in support of a "contingency operation."

The revisions also affect the leave provision to care for a "covered servicemember" by including veterans who require treatment for a covered condition up to five years after the individual leaves the military service (such as post-traumatic stress disorder). Further, the term "serious injury or illness" for this type of leave has been re-defined to include the aggravation of an existing or pre-existing condition, rather than limiting the term to an injury or illness incurred in the line of active duty.

Unemployment Extension legislation

H.R. 3548 has been passed by both chambers of Congress and was signed by the President on November 6, 2009. It will become law once administrative actions are complete. This bill extends unemployment insurance benefits in all 50 states by 14 weeks and an additional six weeks in states where the unemployment rate is 8.5% or higher.

Call RGL Consultants if you have any questions regarding these pieces of legislation.