Here we are again. Year end. For most companies, it takes on a financial meaning. Did we finish the year in the red or black? This year, in addition to a financial analysis of the past year and forecasting for the coming year, a similar analysis of your human Resource policies and procedures may be required. There are some changes in store for us in 2013, and here are some suggestions for preparing your company and your employee for these changes.
The election has passed and healthcare reform is upon us. The Patient Protection and Affordable Care Act was designed primarily to decrease the number of uninsured Americans and reduce the overall cost of health care, and in that process there are a few changes being made to the way businesses handle health insurance coverage for their employees. Here are the changes for 2013 that you need to be aware of:
* Health FSAs are limited to $2500 in annual benefits.
* Headcount tax of $2 for each covered life.
* Medicare payroll tax increase for highly paid employees.
* Written notice to employees about insurance exchanges (March 2013).
* Phase-in of real time eligibility confirmation with insurance carriers, administrators, hospitals and doctors.
* Reporting cost of health insurance coverage for employees in a sponsored group health plan on W2.
The changes coming in 2014 will be even more substantial, and it is important that these 2013 changes are understood and implemented. This will allow your company an opportunity to really understand the impact of these changes on your business and your staff and determine that best course of action for the 2014 requirements. There are many seminars that you can take advantage of to learn more about healthcare reform outside of consulting with your attorney, CPA or health insurance broker.
For those companies that perform background checks on their employees or candidates for hire, you will need to state on your consent forms that this is governed by Consumer Financial Protection Bureau and not the Fair Credit Reporting Act, as currently reported. If you have a third party conducting the screen for you, you will want to confirm that their consent forms meet the new standard. If you are or will be conducting criminal background checks, follow the guidelines, disregard violations older than seven years and consider the nature and gravity of the offense and the relevance of the offense to the nature of the position you are offering to the candidate.
There are expected changes from the Occupational Safety and Health Administra-tion which include an injury and illness prevention program. It will require every employer to identify and correct all hazards in the workplace regardless of whether there is a specific standard or not.
There are additional hot topics coming out of the Equal Employment Opportunity Commission. It is being reported that the EEOC is considering "sweeping developments" and "strategic enforcement" in the areas of ADA Amendments Act, sexual orientation, pregnancy accommodation, preserving employee rights and harassment.
Some other issues that fall under EEOC enforcement have to do with violations against protected activities or classes. For instance, wearing religious clothing or hairstyles can be considered a protected activity and gender identity is also a protected class. For employers with 50 or more employees your expecting mothers' lactation is protected or it could be considered pregnancy discrimination. You need to consider and follow Americans with Disability Act, Family Medical Leave Act and Fair Labor Standards Act to avoid pregnancy discrimination.
It is expected there will be an increase in investigations or audits within the Department of Labor. They will be reviewing companies' policies and practices surrounding classifications of workers. It is always prudent to review and ensure that your company is classifying its employees correctly as exempt, non-exempt or independent contractor. This analysis can be rather complex as there are many regulatory guidelines to consider.
As social media grows in our personal lives, it has also grown in our professional lives as well. While there is limited regulation on a company's utilization of social media or the use of social media by their employees, a general rule of thumb is to have a social media policy that clearly outlines what an employee may or may not post about their employers protected information and when an employee can or cannot post information during business hours for personal purposes. In addition, making employment decisions involving either current employees or applicants, based on their social media postings or material, needs to be thoroughly analyzed to insure you are not violating any privacy or protected class laws.
The National Labor Relations Act protects all employees (not just union employees) from unfair labor practices. The National Labor Relations Board is the federal agency that investigates and resolves complaints under the act. The NLRB is reviewing social media policies that might be potential violation of the law that affords employees the right to organization and collective bargaining.
As an employer, you will want to have a general understanding of these regulations. Some activities within a social media setting are protected if the employee is discussing wages and benefits and other terms and conditions of employment with co-workers or talking with co-workers about raising work-related complaints directly with the employer. Each case can be complicated and may be judged by the circumstances of the events. We suggest that employers consult their HR professionals or attorneys in these situations. The NLRB will be posting advisories on this topic on its website, www.nlrb.gov.
These changes are likely just the tip of the iceberg especially when considering the vast nature of healthcare reform. Arming yourself with as much information as possible, attending classes or seminars, consulting with your business partners (CPAs, insurance broker, HR consultants) on these changes will provide you with some peace of mind, but most importantly equip you and your business with information to make strategic decisions.
Best wishes for a prosperous 2013!
Sarah Sommers is the chief executive officer of Solutions At Work, an human resources consulting firm in Reno. Contact her at 775-827-9675 or sarah@mysolutionsatwork.com.
