Congress Passes the HIRE Act

Yesterday, the Senate approved H.R. 2847, carrying the HIRE (Hiring Incentives to Restore Employment) Act, as passed by the House. The HIRE Act is cleared for the President’s signature.

The following tax changes will be part of this act:

• Exempts employers from paying the employer share of Social Security employment taxes on wages paid in 2010 to newly hired qualified unemployed workers. These are workers who: (1) begin employment with the employer after February 3, 2010 and before January 1, 2011, (2) were previously unemployed and (3) do not replace other employees of the employer. The payroll tax relief applies only for wages paid with respect to employment beginning on the day after the enactment date (the date the HIRE Act is signed into law by the President) and before 2011.
• Provides employers with an up-to-$1,000 tax credit for retaining qualified unemployed workers. The workers must be employed by the employer for a period of not less than 52 consecutive weeks, and their wages for such employment during the last 26 weeks of the period must equal at least 80% of the wages for the first 26 weeks of the period.
• For tax years beginning in 2010, boosts to $250,000 the maximum amount that can be expensed under Code Sec. 179, and boosts to $800,000 the beginning of the investment based phaseout amount.
• Allows issuers of certain tax credit bonds to elect to receive a direct payment instead of a tax credit to the bondholder.
• Enacts a comprehensive set of measures to reduce offshore noncompliance.
• Delays the application of worldwide allocation of interest for an additional three years.
• Tinkers with estimated tax payments of large corporations in future tax years.

Contact your BCG&Co. tax advisor with further questions on how this can impact your organization.
(330) 864-6661

This past Wednesday,  a U.S. District Court issued a long-awaited decision in the Chamber of Commerce of the United States of America v. Napolitano case. A number of groups including U.S. Chamber of Commerce, Society of Human Resource Management (SHRM),  and Associated Builders and Contractors, Inc., challenged the legality of an Executive Order requiring that federal contractors use E-Verify to check the employment eligibility of all newly hired employees, as well as all current employees directly working on a contract.

The groups challenged the legality of Executive Order 13464 and its implementing regulations arguing that it was neither legally justified nor practical for federal contractors to implement.  Unfortunately, the court discounted the group’s arguments deciding the case in favor of the government and ruling that the regulation should go forward.

The rule is scheduled to go into effect on September 8, 2009.  This deadline means that most federal contracts awarded, as well as solicitations issued after September 8, 2009, must include a clause mandating use of E-Verify for all employees hired during the contract period and all existing employees assigned to perform work under the contract. 

The United States Citizenship and Immigration Services (USCIS) has published information and on its website regarding application of the rule. To access the page the addresses frequently asked questions please click here.

If you have any additional questions in regard to this ruling, please contact me at (330) 572-8049 or jim.krosky@bcgcompany.com

Recent changes at the BWC (Bureau of Workers’ Compensation) will affect employers that are currently participating in the BWC’s group rating or retrospective rating programs. Effective July 1, 2009,  if an employer that participates in BWC’s Group Rating or Group Retrospective Rating Program sustains a claim within the “green year” period or the prior year, the employer will be required to attend an additional two hours of safety training annually. The training will need to be performed by the sponsoring organization, the sponsoring organization’s third party administrator, or the bureau.

We are in the process of scheduling a training session that will meet this requirement for early 2010 and will communicate this date once it is confirmed through this site and  www.bcgcompany.com In the meantime if you have any questions in regard to this information please contact me at (330) 572-8049 or jim.krosky@bcgcompany.com or visit BCG Resources, Inc. to learn more.

Updates on the Employee Free Choice Act

Last week a group of senators friendly to the labor unions decided to drop the card check provision from the bill. This was the provision that would  require employers to recognize a union as soon as a majority of workers signed authorization cards stating they wanted to join the union.

In its place these senators and union officials are looking at different ways of shortening the time to 5 or 10 days after 30 percent of workers sign the authorization cards instead of the current 60 day time period.  Other items being considered are giving unions the use of company property and to limit employer ability to hold captive employee meetings.

What hasn’t had nearly the amount of discussion but is equally concerning to employers is the binding arbitration provisions if an employer fails to reach a contract with a new union. Employers argue it would be wrong for arbitrators that would be designated by the government to dictate what an employer’s wages and benefits would be.

In addition to the arbitration provision, corporate lobbyists have indicated they would oppose fast election, arguing that such a provision would deny employers ample opportunity to educate employers about the downside of unionizing, such as strikes and union dues.

Labor leaders counter that employers will have plenty of opportunity to fight unionization, noting that many companies begin educating employees on the downside of unionization the day they are hired.

Regardless of whether the provisions listed above become law, employers should expect some reforms to labor law in the near future.

For more updates relating to the HR profession sign-up for the monthly HR Update newsletter.

Missed the Workers’ Compensation webinar? Check it out here or send it to a friend.

Presenters
Jim Krosky, SPHR – BCG & Company
Mike Agnoni, Risk Consultant – Oswald Companies
Daniel O’Brien -Atty. -  Millisor & Nobil

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The announcement of Senator Arlen Specter switching to the Democratic Party could potentially shed a completely different light on some pending legislation. In regard to the Employee Free Choice Act (EFCA), Senator Specter stated that even though he has switched to the Democratic Party, he does not intend to change his stance opposing the legislation in its current form. We should, however, consider the real possibility of a revised version of the bill, or at the very least, significant changes to the current National Labor Relations Act. In addition to potential impact on the EFCA, the switch also brings our attention to legislation dealing with workplace flexibility such as the Healthy Families Act and changes to Family Medical Leave.

What should employers do?

EFCA
Conduct a vulnerability audit. This type of audit is designed to identify areas in which your organization could be vulnerable to a union organizing campaign and will identify compliance issues with policies and programs. Typical areas that a vulnerability audit would examine are:

• Policies and Procedures

• Training and Development

• Benefits and Compensation

• Workers Compensation/Safety

Once these vulnerability and compliance issues are identified, an action plan should be developed to address these findings. In addition to the vulnerability audit, employers should provide training to their supervisors and managers. Some topics to include:

• Signs and warnings of a union campaign

• What do authorization cards look like and how do they work?

• What a supervisor can and cannot do to prevent unionization

Workplace Flexibility
It is widely expected that the Healthy Families Act will be introduced around Mother’s Day. This legislation requires an employer to provide paid sick leave to full- and part-time employees. It applies to public and private employers with 15 or more employees working 20 or more calendar workweeks in the current or preceeding year. It provides up to seven days of paid sick leave for full-time employees working more than 30 hours per week year round or 1, 500 hours in one year.
At this point, employers should begin to analyze their time off and benefit plans to determine what the impact would be and possible action steps. The language mentioned above is some of the language being discussed and could be modified before the Act is introduced.
The Family Leave Insurance Act amends and expands FMLA by:

• Lowering the qualifying number of employees from 50 to 25.

• Allowing up to 24 hours in a 12 month period for parental involvement and family wellness leave.

• Prohibiting more than 4 hours of leave during a 30 day period.

• Providing employee leave to participate/attend school or community sponsored activities of child or grandchild.

• Allowing employee leave to meet routine family medical needs of spouse, child or grandchild of employee or to care for elderly relatives, including visits to nursing/group homes.

Employers should consider analyzing their current FMLA practices. For employers that are in that 25-50 employee category, I recommend you familiarize yourself with the current FMLA law and monitor the progress of this Act.

If you have any questions regarding this information or need any assistance in conducting vulnerability audits or management/supervisor training, contact me at (330) 572-8049 or jim.krosky@bcgcompany.com

Over the last 20 years the HR profession has evolved from a basic administrative function to being an integral contributor to a company’s strategic plan. Regardless of the industry, one thing that is universal across all industries is the impact legislation has on how you execute your HR strategy.

I recently attended a National Legislative Conference in Washington D.C. where HR professionals from across the U.S. gathered to advocate a number of issues that would impact not only their business but the HR profession as a whole.  With a new administration in the White House, now is the time when many proposed legislative changes will surface.

As someone in the HR profession, it is your responsibility to be aware of what changes are being proposed and how you can effectively advocate for or against the different issues.  You don’t necessarily have to go to the Hill to make a difference; here are some ideas on how you can take action: 

• Write a letter, email or fax to your legislator’s office.
• Create a letter to the editor or an opinion piece for your local paper.  
• Find others who are advocating for the same issue and create an impact group who will grow awareness. 

Here are some tips on how to effectively advocate for or against an issue: 

• Get the facts about both sides – Know the opposing arguments and be able to refute them.
• Tell your story – make it personal- give the HR and/or your organization’s perspective.  
• Understand and familiarize yourself with the bill.

Groups like SHRM (Society of Human Resource Management), your local Chamber of Commerce and websites like www.congress.org are good resources for keeping up-to-date on upcoming legislation and how you can impact the issues.  If you have questions about effective advocacy call me at (330) 572-8049 or send me an email. (jim.krosky@bcgcompany.com) 

IRS has issued a notice providing detailed guidance on the new COBRA continuation premium subsidy provided to involuntarily terminated workers and their qualified beneficiaries under the American Recovery and Reinvestment Act of 2009. This article takes an in-depth look at IRS’s explanation of how eligible involuntarily terminated workers, former employers, and health plans figure the COBRA premium subsidy. An earlier article addressed IRS’s interpretation of what constitutes involuntary termination for purposes of the COBRA premium subsidy.

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Staying compliant with the ever changing employment laws and regulations can be time consuming and confusing. Join Jim Krosky, SPHR as he and experts in the legal and insurance industries present a series of four no cost webinars designed to provide updates on timely human resource topics and answer your questions. For dates and topics or to RSVP visit www.bcgcompany.com/hr2009