SMALL BUSINESS TAX RELIEF - MAYBE!

The House of Representatives voted overwhelmingly to repeal burdensome tax-reporting requirements that were imposed on small businesses to help pay for the expansion of health insurance coverage under the new health care law.

The Senate passed a similar measure of repeal by a wide margin as well.

The provision in question was one tucked into the new law which would require millions of businesses to file tax forms for every vendor that sells them more than $600 in goods each year, starting in 2012.  

Here is the "rub".  Democrats and Republicans - and the House and Senate -  disagree on how to make up the potential revenue that the business tax was intended to produce (supposedly $25 billion over the next 10 years), the debate could drag on for months before any agreement on the two repeal measures can be achieved.

A spokesperson for the National Federation of Independent Business said it well:  "Only in Washington can you have something so universally agreed to, and yet we still cannot get it done".

The U.S. Department of Labor has developed an overall vision of Good Jobs for Everyone.  In furtherance of this vision, the DOL is targeting regulatory actions that will impact employers rather significantly.

The DOL has provided preliminary information on the "Right To Know Under the Fair Labor Standards Act" initiative (an initial step in the overall strategy).

This particular proposed rule is part of the DOL's Plan/Prevent/Protect strategy and is expected to be published in April or May.  The provisions will provide employees with what the DOL says is "essential information about their employment status and earnings".  Potential information to be given to employees, perhaps each pay period, will include whether the person is considered an employee or an independent contractor (and why), whether the employee is considered to be exempt or nonexempt (and why), and other details about their pay.

The stated goal is to reduce the number of FLSA misclassifications.

Wait, there's more!

Under the DOL's Plan/Prevent/Protect strategy, specific agencies within the Department are proposing regulations that require employers to develop programs to address specific compliance issues.  The specific regulations will vary by law and industry (Wage and Hour Division - WHD, Employee Benefits Security Administration - EBSA, Office of Federal Contract Compliance Programs - OFCCP, Occupational Safety and Health Administration - OSHA, Mine Safety and Health Administration - MSHA), but the strategy seeks to remind all employers that they are responsible for full compliance with the law every day, not just when inspectors come calling.

This new strategy will require that employers:

Plan:  Create a plan to identify and remedy risks of legal violations and risks to workers.  Employers should give employees opportunities to participate in creating plans and make the plans available to workers so they can understand the plans and help monitor implementation.

Prevent: Thoroughly and completely implement the plan.  According to the DOL, the plan cannot be a mere paper process.

Protect: Verify on a regular basis that the plan's objectives are met so that it actually protects workers.

The DOL warns that employers who fail to take these Plan/Prevent/Protect measures to comprehensively address risks will be considered out of compliance with the law and subject to remedial action.

The Wage and Hour Division of the DOL is one agency currently in the process of implementing changes under the Plan/Protect/Prevent initiative.

NOTE:  Reminds one of the time consuming and recordkeeping nightmare associated with Affirmative Action Plans.