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"Use it or Lose It" Rules Modified for Flex Plans
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The U.S. Department of Treasury and the IRS recently released a notice modifying the longstanding 'use it or lose it' rule for health flexible spending arrangements (FSAs). For the first time, at the plan sponsor's option, employees participating in an FSA will be allowed to carryover, rather than forfeit, up to $500 at year-end. Not only will participating employees have less risk of forfeiting unused contributions, they may be able to cut back or eliminate the year-end rush to schedule medical appointments and spend down those funds.
Employers that currently allow a 2 ½ month grace period must discontinue the grace period if they choose to allow the $500 carryover instead. Participants that carryover $500 may also make a full election for the next plan year - their total balance could be $3,000 for plans that have a $2,500 maximum. Employers that wish to take advantage of the carryover option should contact their plan administrator right away. To read the IRS' press release and final rule, visit the Treasury's Press Center.
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Washington Paid Family Leave Act Postponed Again
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The State of Washington has delayed implementation of the Washington Family and Medical Leave Insurance Act again until the program has a clear source of funding. The Act is now scheduled to become effective October 1, 2015. Once implemented, the law will provide parents with a benefit of up to $250 a week for five weeks following childbirth or adoption. Benefits will be contingent upon an employee working at least 680 hours in the preceding year. Implementation of the Act was originally scheduled for October 2009, but has since been postponed twice due to budgetary constraints (the program is government funded as opposed to being funded by a payroll or employer tax).
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| Greetings!
The holidays are drawing near. . . which means it's time to get ready for Portland's new sick leave ordinance! We discuss the final rules below. This edition of the newsletter also covers a rather surprising decision regarding the use of recording devices in the workplace, as well as the OFCCP's new regulations for affirmative action plans. If your employees have been losing their FSA money at the end of the year, you'll want to take a look at our sidebar article.
Best wishes for a safe and happy Thanksgiving!
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Final Rules Published for Portland Sick Leave
As reported in our prior newsletters (click here to read the most recent article), Portland's new sick leave ordinance will go into effect on January 1, 2014. The new ordinance requires all private employers to provide up to 40 hours of sick leave per year to employees after 90 days of employment. In order to be eligible, employees must work at least 240 hours within the City limits during the year.
Click here to read the final rule and find out how it will affect your business.
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NLRB Judge Upholds Workplace Ban on Recording Devices
A new case offers hope for a more employer-friendly analysis of the National Labor Relations Act's (NLRA) workplace protections. A National Labor Relations Board (NLRB) judge recently held that an employer's policy prohibiting employees from electronically recording the voices of coworkers does not violate the NLRA. This ruling contrasts with a flurry of NLRB decisions last year holding that many common workplace policies violated the NLRA because these policies tended to chill employees' rights to discuss terms and conditions of their employment (the NLRA applies to both non-union and union employers). As discussed in prior newsletters, the policies at issue (covering workplace investigations, confidentiality and nondisclosure, at-will employment, and social media use) were generally categorized as overbroad and therefore unlawful because they were perceived by the agency as limiting employees' rights to engage in protected activity - the right to talk about wages, hours, and working conditions. Click here to read about this surprising ruling.
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| New Affirmative Action Plan Regulations Issued by OFCCP
After a long wait, the Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) has released regulations that will significantly affect how federal contractors comply with Affirmative Action requirements. The new rules take effect on March 24, 2014, updating the Vietnam Era Veteran's Readjustment Assistant Act (VEVRAA) and Section 503 of the Rehabilitation Act, regulating the hiring of veterans and the disabled.
Click here for an overview of the OFCCP's regulations.
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2014 Workshops Are Right Around the Corner!
We have a number of exciting training opportunities scheduled for 2014 and hope to see you there! On January 22, we'll hold our Workplace Fraud Panel at the Crowne Plaza Hotel in Lake Oswego. The very next week is our one-day Supervisor Boot Camp, which will give your new leads and supervisors all the tools they need to hit the ground running. Session #2 of our three-part Best Practices Safety Series will run on February 12--the topic will be Hazard Communication. And of course, we hold First Aid/CPR classes at our offices on a regular basis. The next two are scheduled for December 18 and February 5. Call Isabella at (503) 595-2095 or click the workshop names in this article for more information.
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UEA is a trusted resource for Northwest employers. Our experts are standing by to answer your HR, labor relations, and employee relations questions. Give us a call--we can help!
Sincerely,
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| United Employers Association |
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