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13724 Venetian Court
Orland Park, Illinois 60467
Office 708-301-6425 
 Fax:  708-301-6455

 

 
 
  
 

Providing Human Resources Consulting for Small to Mid-Size Organizations

 

March, 2014

 
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Change is a process, not an event.  Change is also a constant.

 

The Affordable Care Act is a prime example of constant change (see below). 

 

Our Federal Legislators are also focused on tweaking current laws and regulations with, perhaps, good intentions, but certainly with an eye toward revenue generation and building political capital.

 

With mid-term elections coming up, the tweaks referred to below will have little chance of passage in the near term, but we must be vigilant of this mindset going forward.

 


 
FMLA Expansion Legislation IntroducedHealth Pic

 

 

On February 5th a Bill was introduced by Democratic Representative Carolyn Maloney (NY) that would amend the Family and Medical Leave Act of 1993 (FMLA) to expand its protections to a greater number of employees and to add additional types of protected leave.  This Bill would amend the FMLA to cover employers with 25 or more employees (rather than the current threshold of 50 employees).  It would also permit employees to take "parental involvement leave" and "family wellness leave".

 

The Bill provides that employees are entitled to up to four hours of parental involvement or family wellness leave during a 30-day period and up to 24 hours in a 12 month period (good luck with the paperwork requirements and monitoring of that).  Employees would be able to elect substitution of any accrued vacation leave, personal leave, or family leave to continue payment of wages.  In the case of family wellness leave, employees would be able to elect to use accrued medical or sick leave to continue payment of wages.

 

Employees would be required to give the employer at least seven days prior written notice of their intention to take parental involvement or family wellness leave. The proposed legislation has been referred to the House Committee on Education and the Workforce as well as the Committees on Oversight and Government Reform, and House Administration for consideration of any provisions that fall within the jurisdiction of each.

 

 

 

Yet More Obamacare Changes

Healthcare Reform  

It has become very difficult to stay abreast of the ever changing Obamacare compliance issues. Here we go again:

 

The Obama administration released final rules in February for businesses that must comply with the "Affordable Care Act" in 2015. Businesses with between 50 and 99 employees will not now face a penalty until 2016 for not providing healthcare to staff members working 30 or more hours per week. For businesses with 100 or more employees, the final rules reduce to 70% the number of full-time workers to whom the employer must offer coverage in 2015. Businesses are required to offer coverage to 95% of their employees in 2016 and beyond.

 

Employer reporting requirements (final details not yet released) were delayed until 2015. However, most individuals still face a tax penalty for not having healthcare coverage in 2014.

 

I am quite confident that there is more to come!

 
  

Employee or Not An Employee

 

 OutsourcingPic

The Payroll Fraud Prevention Act of 2013  was introduced in November by Sen. Bob Casey, D-Pa. The proposed legislation would require businesses to notify workers of their status as employees or non-employees and doubles the penalties for noncompliance with FLSA. 
 
Under federal law, an employee's status is determined by the degree of an employer's control over the manner and means of work, not any written agreement.

Misclassification occurs when an employer classifies a worker as an "independent contractor" instead of as an employee, thus avoiding paying taxes and providing employee benefits. Some say the passage of the Patient Protection and Affordable Care Act will give some employers further incentive to keep workers off the books as official employees.  Talk about new legislative and regulatory measures concerning misclassification arises at a time when the number of freelance and contract workers has been rising steadily. The issue of determining who is a legitimate employee has become more pressing for employers in a range of industries.  The DOL says that since 2012, it has collected $18.2 million in penalties linked to misclassification of more than 19,000 workers in the U.S.
 

 

Government regulators see misclassification not only as a labor issue but a tax issue, because companies don't withhold taxes on contractors, making it much more difficult for the IRS to collect such taxes.

Issue:57

 
 
 

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Regards,
    Rich                      Dave                 Jim
Rich Lehr, President                   Dave Slivinski                  Jim Kacena
RGL Consultants                        RGL Consultants              RGL Consultants

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