Legislative Updates:
Employee Free Choice Act:
On March 10, 2009, the Employee Free Choice Act (EFCA) was introduced to Congress. This act is supported by President Obama and expected to pass in some form. EFCA essentially is meant to make it much easier for employees to organize in a union. It also guarantees a 2-year contract, modify the definition of "management" and puts regulations in place which will make companies much more susceptible to fines for infractions with the National Labor Board (NLB). There have been several Executive Orders put in place surrounding this Act. In late January an Executive Order regarding mandatory postings of employees' rights to form, join and assist labor unions. There is much preparation needed by employers to stay ahead of the unions. Employers must start now to develop a plan to remain union-free. Being proactive with their communication and policies, employers will be in a much better situation to avoid the activity a union can bring once this Act is enacted. A plan of Union Avoidance is crucial and would involve audits and review of current policies, Union Avoidance training, Leadership Training, employee communication/involvment as well as a plan ready to go at a moment's notice should unions try to organize at your company. Take note that unions are not just in manufacturing or trades. Unions have been organizing engineers, medical facilities, retail stores and corporate offices. Are you ready? We can help. Contact us today for a complimentary assessment.
American Recovery and Reinvestment Act of 2009:
The American Recovery and Reinvestment Act (ARRA) was enacted on February 17, 2009. In this act came a COBRA subsidy which has benefits providers, companies, legal teams and HR staffs in a situation of trying to piece together the necessary tasks to be compliant, but at the same time looking to the US Department of Labor (DOL) for more clairifcation.
This act implemented new eligibility rights, assistance to premiums, a payroll tax credit and revised notice requirements. In a nutshell, employees who have faced an involuntary termination from a company since September 1, 2008 are eligible for a subsidy to assist them with their COBRA premium payments. This subsidy would last no longer that 9 months and would end with employees who are terminated (involuntarily) up through December 31, 2009.
Companies who have employees meeting this requirement prior to March 1, 2009, would only need to notify those eligible and give them a second shot at the benefits (exclusions do apply). This would not include an retroactive payments back to September, but would only make them eligible to attain insurance at this point.
There are many details to this act which have yet to be clarified by the DOL. We recommend you are contacting your benefit provider to help you determine eligibility and notification appropriate for your business. Any overpayment of taxes and/or premiums will come to the company in a tax credit or in some cases a check from the government. Your Human Resources department can also assist with the compliance needed for this act.
