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Greetings!
As we begin the second half of 2012, we continue to see a great deal of work yet to be accomplished to get our economy moving forward, to improve the confidence of business owners and employers that they can grow and expand their businesses, and provide a level of certainty regarding taxes and regulations (all of which translate into job creation opportunities).
Agree with it or not, the Supreme Court decision does provide at least some clarity regarding an important element of employee benefit packages going forward; employer costs will most assuredly continue increasing. We need to continue planning for the full implementation of the "Affordable Care Act".
We all need to work smarter; not harder. Might be easier said than done in the current environment, as many businesses are trying to do more with fewer resources. All the more reason to ensure that we have a well trained, energized workforce to see us through successfully. It may seem counter intuitive, but a well planned vacation can be just the right ticket (see below).
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VACATION SEASON IS UPON US
Vacation benefits are provided by most employers; yet, employers often cringe at the thought of "lost productivity" and scheduling difficulties when the employee actually takes advantage of these benefits.
Consider the fact that in many (if not most) cases, the employee puts in extra effort in advance of a scheduled vacation to clean up the desk, may well take work along on vacation, with today's technology, even when an employee is on vacation quite often they stay "connected" and "engaged" through cell phones and email, and then upon return from vacation, puts in extra effort to catch up. An argument could be made that productivity actually increases around vacation time.
A word of caution is warranted here: If a non-exempt employee is more than just casually connected or engaged in work-related activities (even if voluntarily) outside of normal work hours or while on vacation, that employee may well be eligible for overtime compensation under Wage & Hour regulations.
Here's why vacations are important and benefit both the employee and the organization:
- Vacations Promote Creativity: A good vacation can help employees reconnect with themselves; operating as a vehicle for self-discovery and helping get back to feeling their best.
- Vacations Stave Off Burnout: Employees who take regular time to relax are less likely to experience burnout; making them more productive than their overworked, under-rested counterparts.
- Vacations Can Keep Us Healthy: Taking regular time off can 'recharge your batteries', thereby keeping stress levels lower.
- Vacations Promote Overall Wellbeing: One study found that three days after vacation, subjects' physical complaints, their quality of sleep and mood had improved as compared to before vacation. These gains were still present five weeks later, especially in those who had more personal time and overall satisfaction during their vacations.
- Vacations Can Help With Job Performance: Studies have shown that the psychological benefits that come with more frequent vacations lead to increased quality of life, and that can lead to increased quality of work on the job.
- Vacations Relieve Stress in Lasting Ways: It should come as no surprise that vacations that include plenty of free time bring stress relief, but research shows that a good vacation can lead to the experience of fewer stressful days at least five weeks later! That means that vacations are the employee benefit that keeps on paying dividends.
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Labor Law Up-date
A new law titled "An Act Relative to Gender Identity,"commonly referred to as the Transgender Equal Rights Bill, goes into effect in Massachusetts on July 1, 2012. It adds gender identity as a new protected category under the Massachusetts non-discrimination statute.
Massachusetts will now join California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, and the District of Columbia in treating transgender citizens as an EEO protected class.
Under this law, "gender identity" is defined as:
A person's gender-related identity, appearance or behavior, whether or not that gender-related identity, appearance or behavior is different from that traditionally associated with the person's physiology or assigned sex at birth. Gender-related identity may be shown by providing evidence including, but not limited to, medical history, care or treatment of the gender-related identity, consistent and uniform assertion of the gender-related identity or any other evidence that the gender-related identity shall not be asserted for any improper purpose.
The employment-related provisions of the law, which will be enforced by the Massachusetts Commission Against Discrimination, call for Massachusetts employers to take action to be ready for the July 1, 2012 effective date by taking the following steps:
Employers should update their equal employment and anti-harassment policies to (1) add gender identity to the list of protected classes, (2) state that harassment and discrimination based on gender identity are prohibited, (3) inform employees how to report claims of gender identity-harassment, (4) inform employees about the employer's policy to investigate such claims and take prompt and effective remedial action against any such harassment, and (5) let employees know about the employer's prohibition on retaliation against any employee who makes such a complaint.
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We encourage you to forward this Newsletter to colleagues or others whom you feel would be interested in receiving the RGL Pipeline
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The Wait is Over
The U.S. Supreme Court has decided that the massive healthcare reform law (also known as the Affordable Care Act, or ACA) enacted in March 2010 is constitutional. So what happened, and what does this mean for employers?
The most publicized challenge to the ACA concerned the individual mandate, which starting in 2014 will require most individuals to obtain health insurance or pay a fine. The Court upheld this provision, asserting that the mandate is constitutional as a tax.
The Court also looked at three other ACA-related issues:
- The Anti-Injunction Act. The justices determined that it wasn't too soon to decide the case because of the Anti-Injunction Act, a federal law that requires a tax to be collected before it can be challenged in court.
- Severability. The justices heard oral arguments centered on whether the individual mandate could be severed from the rest of the law if the Court found it unconstitutional. Since the Court upheld the mandate, it didn't have to make a decision regarding severability.
- Medicaid. Finally, the Court determined that the ACA's expansion of Medicaid is lawful as long as the government doesn't penalize states that decide not to participate in the new program by taking away their existing Medicaid funding.
The Court's ruling in this case means employers need to continue their implementation of various ACA requirements. They also need to start preparing for 2014, when many of the employer-related provisions become effective (e.g., the employer "pay or play" provision). We will provide more information
in the very near future (HRLaws, 2012)
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