The Feds Are Coming, Is Your Business Ready? Part 4: Unions

June 28 - Posted at 10:31 AM Tagged: , ,

I understand that your first thought may be that this article has nothing to do with your business and you can skip it. 

Please read before you disregard.  Your employees will soon receive a union message!  You have a short amount of time to decide if that message comes from your organization or if you will wait and your employees will learn all they need to know about unions from the Federal Task Force, whose very existence is to encourage unionizing. 

I understand the desire to avoid the topic of unions as in my thirty years of working as an Employer Advocate, I’ve skimmed over union articles, and barely skimmed at that.  Unions have never been a real issue for most Florida employers, unless you are Disney or a public service entity/municipality.  Yes, we must work within the regulations and rules around Section 7 rights (protected concerted activity) of the National Labor Relations Act, but unions have never been a concern.  Nationally, there has been a steady decline in union activity as the rights of employees have continued to expand.  What is the threat now? Why does it matter to you?

Biden vowed to be “the most pro-union president you’ve ever seen” and he appears to be living up to that promise.  His first order of business, day one in office, was to fire (and replace) the sitting General Counsel of the NLRB, even though his term was set to expire November 2021. This is the first time in history a President has fired the sitting General Counsel! 

Biden nominated Marty Walsh to be our Secretary of Labor.  Mr. Walsh has been confirmed by the Senate and is now the first union member in nearly 50 years to run the Department of Labor. 

Biden’s most recent act to abide by the union promise was an Executive Order to create a task force to encourage worker organizing and collective bargaining.

VP Harris has been tapped to chair the Federal Task Force.  The task force has no more than 180 days from the Executive Order to submit recommendations for actions to promote worker organizing and to increase union density. 

Most business owners and HR professionals have no history in dealing with a partial workforce rebellion.  This could happen in individual companies or it could be a wider industry movement in a city or region.  Again, most of us have no history in dealing with unions or collective bargaining, so where do you start?  What are you supposed to do and how? 

You may wish to start with training your managers.  They typically have the pulse of your employees and will be the first to know if organizing starts and will likely be the ones your employees go to with questions.  Mostly importantly, they need to know how to report, monitor and legally respond to employees.  A manager saying “They will shut this company down, before allowing a union in” is not an appropriate response and could cause you much bigger legal problems. 

Next, you will want to talk with your employees.  In our current environment, they need to be communicated with regularly, regardless of union activity.  It seems, we have spent most of the past year with social media, news outlets and the government focused on dividing the country and our citizens.  We’ve been divided by our race, gender, religion, political party, mask and/or COVID vaccine status, views on Second Amendment rights, sexual preference, or how you identify.  The media has provided you with a multitude of options to cause division in your community.  Wouldn’t it be nice if employees didn’t have to endure division at their place of employment? 

Communicating with employees to remind them that they do not need an intermediary to speak with their manager or the company owner is a must!  You want to stress that you have good open communication between managers and employees.  Remind employees that you offer competitive wages and benefits.  If any of this is not true, now is the time to fix it as it will be good for your company as a whole, even if the taskforce doesn’t target your industry.  Union organizers will use any real (or imagined) crack in your company’s framework to convince employees of how much better they would be with a union on their side.

You may also consider modernizing your policies in regard to your position on unions, while stressing your company’s open door policy as well as a no solicitation policy.   

Remember your people are the reason your company exists, and they need to be reminded and shown that they are valued and appreciated. 

Being proactive now is one of the keys to your success when it comes to preventing a union from walking through your front door.

Let us know if you would like any help with implementing a Union Avoidance management training program. With AAG on your side, we will help to ensure your team is prepared to answer employee questions.

Part 4 of Myra’s Minutes- Unions

- Posted at 8:15 AM Tagged: , , ,
Business owners and HR professionals alike say that it’s nearly impossible to keep up with all the changes, but as the Employer Advocate, we’re here to help. AAG has compiled a series of informative videos and articles to help your business navigate the upcoming changes.

This episode covers the new Federal Task Force, chaired by VP Harris, whose goal is to encourage worker organizing and collective bargaining.

Check out Part 4 in our 4 part series of Myra’s Minutes 
here!

The Feds Are Coming, Is Your Business Ready? Part 3: OSHA

June 21 - Posted at 8:38 AM Tagged: , , , ,

Recent CDC recommendations on masking has caused confusion for employers everywhere.  Guidance advises that those vaccinated could resume many of their normal routines without wearing a mask.  However, the CDC doesn’t govern employers or fine them for non-compliance, OSHA does. As a result, employers are left wondering if they lift their facemask requirements or not.

The most recent information from U.S. Occupational Safety and Health Administration (OSHA) from January 29th stated that employers should not distinguish between vaccinated and unvaccinated employees.  But doesn’t that contradict what the CDC released in their newest guidance? OSHA did acknowledge the CDC guidelines mid-May, but has not yet specifically advised employers on what to do.  Companies are working around these guidelines (and lack thereof) to build policies that are most fitting to their level of exposure and potential liability. 

In addition to updating mask guidance, you can look for other changes from OSHA.  President Biden nominated Doug Parker to lead OSHA.  Parker currently heads California’s OSHA division (Cal/OSHA).  While his tenure at Cal/OSHA has been brief, his time there strongly suggests the potential for new federal standards and increased enforcement.  Cal/OSHA standards are complex and more stringent than Federal OSHA and provide standards that have no federal counterpart.  They laid the groundwork for many standards that have yet to be enacted at the federal level.  The aerosol transmissible diseases (ATD) standard may be a preview of a federal workplace infectious disease standard, especially in the wake of COVID.  That standard has already sparked a National Emphasis Program and an imminent federal emergency temporary standard (which Parker said would stand up to legal challenges during his confirmation hearing).  

How much of a California flare will he bring to the federal agency and what should you expect as an employer? 

Common consensus is that employers can expect increased enforcement under the Biden administration… more inspections, more citations, less negotiating and more litigating.  The new administration has made it clear they intend to double the number of investigators.  It is not a matter of if, but when, employers will see an uptick in OSHA inspectors knocking on doors.

When OSHA does arrive, it is important for you to have your compliance playbooks at the ready.  You can prepare now, regardless of the current regulatory and enforcement landscape, to better protect your workforce.   

As The Employer Advocate, AAG is happy to work with you to discuss your facemask options, areas to consider before you change your existing policy as well as when an outbreak or complication from a vaccine may be OSHA recordable.

Part 3 of Myra’s Minutes- OSHA

- Posted at 8:15 AM Tagged: , ,
Business owners and HR professionals alike say that it’s nearly impossible to keep up with all the changes, but as the Employer Advocate, we’re here to help. AAG has compiled a series of informative videos and articles to help your business navigate the upcoming changes.

This episode covers conflicting CDC & OSHA unmasking guidance as well a preview of what employers can expect from OSHA once the new chief Douglas Parker is confirmed.

Check out Part 3 of our 4 part series of Myra’s Minutes 
here!

The Feds Are Coming, Is Your Business Ready? Part 2: FFCRA

June 14 - Posted at 9:00 AM Tagged: , , , , , ,

This is the second in our four-part series designed to let you know what changes have taken place that may affect your business. AAG is a benefit brokerage that specializes in working alongside an employer’s Human Resource/Management Team to assist with keeping companies in compliance with the ever-changing state and federal regulations. 

The Family First Coronavirus Response Act (FFCRA) was amended earlier this year under the American Rescue Plan Act (“ARPA”). The amended act encompasses the same covered categories as the Federal law required last year with some expansions, options, and more room for abuse. 

If you are a private employer with less than 500 employees, you have the option to voluntarily extend FFCRA paid leave from April 1, 2021 through September 30, 2021 and receive a tax credit. However, you must proceed with caution because the rules have changed and if not followed you may not be eligible for the tax credit.

In addition to the previous six reasons for emergency paid sick leave (EPSL) under the FFCRA, if an employer chooses to offer, you must allow for the following three reasons:

  • An employee seeking or awaiting results of a COVID-19 test or diagnosis;
  • An employee obtaining a COVID-19 vaccine;
  • An employee recovering from an injury, disability, illness, or condition related to the COVID-19 vaccine.

The change also includes 10 new days of available leave effective April 1, 2021. If an employee took 80 hours of EPSL leave prior to April 1st, they will be eligible for a new bank of paid leave after April 1, 2021. 

The emergency family medical leave (EFML) under the FFCRA also has some key changes to be aware of:

  • Includes “all” of the EPSL reasons for leave, including the 3 additional reasons
  • Expanded to include the first 10 days of leave and increases the maximum paid leave over 12 weeks from $10,000 to $12,000

Employers will not have the option of whether to apply the new reasons for leave or the fresh 10-day bank. Should you decide to offer EPSL to employees, it must be offered completely and available to all employees. Strict compliance is required in order to be eligible for the tax credit.

As the world continues to open and more employees return to work, changes to these paid leave revisions will no doubt continue. With AAG on your side, you can focus on your employees while we stay on top of required changes and keep you informed! If you have any questions or would like additional information please reach out, we are here to help!

Part 2 of Myra’s Minutes- FFCRA

- Posted at 8:15 AM
Business owners and HR professionals alike say that it’s nearly impossible to keep up with all the changes, but as the Employer Advocate, we’re here to help. AAG has compiled a series of informative videos and articles to help your business navigate the upcoming changes.

This episode covers Family First Coronavirus Response Act (FFCRA) as amended under ARPA.

Check out Part 2 of our 4 part series of Myra’s Minutes 
here!

PCORI Fee Increases to $2.66 for 2020 Calendar Year Plans

June 09 - Posted at 10:00 AM Tagged: , , ,

The IRS has released IRS Notice 2020-84 providing the adjusted $2.66 Patient-Centered Outcomes Research Institute (PCORI) fee per covered individual for health plan years ending on or after October 1, 2020 and before October 1, 2021, which includes 2020 calendar plan years.  The fee has increased $0.12 per covered individual from last year (from $2.54).

As detailed in last year’s alert, Congress surprisingly extended the PCORI fee for another decade (until 2029). Despite the originally scheduled sunsetting of the fee in the 2019 filing (for calendar plan years), PCORI filings are now here to stay as a summer staple for the foreseeable future.

The annual PCORI fee must be reported and paid to the IRS by August 2, 2021 via the second quarter Form 720

What is the PCORI Fee Used For?

The fee is imposed on health insurance issuers and self-insured health plan sponsors in order to fund the Patient-Centered Outcomes Research Institute (PCORI).  The mission of the institute is to improve healthcare delivery and outcomes by producing and promoting high-integrity evidence-based information that comes from research guided by patients, caregivers and the broader health community.

The institute currently maintains a robust portfolio of patient-centered outcomes research that addresses a variety of high priority conditions and topics.

PCORI research projects are also targeting certain populations of interest such as: racial and ethnic minorities, low socioeconomic status, women, older adults and individuals with multiple chronic conditions.  The PCORI website lists current and completed research projects as well as outcomes.

Who Needs to Pay the PCORI Fee?

Fully Insured Medical Plans:  Health Insurers (aka insurance carriers) are responsible for paying the fee on fully insured health policies.  This fee is built into the insurance premium, so there is no action required by employers.

Self-Insured Medical Plans (Including HRAs): The plan sponsor (aka the employer) is responsible for paying the PCORI fee for self-insured health plans.   Self-insured plans include so-called “level funded” plans. The employer must file the Form 720 and pay the fee.

To Which Plans Does the PCORI Fee Apply?

The PCORI fee generally applies only to major medical plans and health reimbursement arrangements (HRAs).  (See below for an exception that applies to many HRAs.)

The PCORI fee does not apply to dental and vision coverage that are excepted benefits (whether through a stand-alone insurance policy or meeting the “not integral” test for self-insured coverage).   Virtually all dental and vision plans are excepted benefits. 

The PCORI fee also does not apply to health FSAs (which must be an excepted benefit to comply with the ACA) or HSAs (which are not a group health plan).

For a quick reference guide, the IRS has published a table which summarizes the applicability of the fee to common types of health and welfare benefits.

Does the PCORI Fee Apply to HRAs?

Yes, an HRA is a self-insured health plan.  However, the PCORI rules provide an exception to the fee requirement for an HRA where it is offered along with a self-insured major medical plan that has the same plan year as the HRA.  This avoids the need to pay the PCORI fee for both the HRA and the self-insured major medical plan (i.e., each person covered by both plans is counted only once for purposes of determining the PCORI fee).

There is no exception from the PCORI fee for an HRA offered along with fully insured major medical coverage.  While the insurance carrier is responsible for paying the PCORI fee for the fully insured medical plan, the employer is responsible for paying the PCORI fee on the HRA.   The IRS is essentially double-dipping in this scenario by imposing the PCORI fee on the same lives covered by both the major medical and the HRA.  In recognition of this, the HRA PCORI fee paid by the employer is determined by counting only one life per employee participating in the plan (and not dependents).

Summary: The PCORI fee is required for an HRA unless it is paired with a self-insured major medical plan that has the same plan year as the HRA.  Where the PCORI fee is required, the employer is responsible for filing the Form 720 and paying the PCORI fee for an HRA solely for the covered employees (not dependents).

How is the PCORI Fee Calculated?

Plan Sponsors of self-insured health plans (other than an HRA) calculate the fee based on the average number of total lives covered by the plan (both employees and dependents).

Plan Sponsors can use one of three alternative methods which are summarized by the IRS in its PCORI fee homepage and PCORI fee FAQs:

  • Actual count method
  • Snapshot method
  • Form 5500 method

Upon reinstatement of the fee in 2020, the IRS allowed plan sponsors an alternative method of calculating the average number of covered lives.  Plan sponsors were able to use any reasonable method to calculate the average number of covered lives.  This guidance was not extended to the 2021 filing, and employers must use one of the above three methods.

How Much Do I Need to Pay on the July 2021 Form 720?

  • Plan Years Ending January 2020 – September 2020: $2.54 per covered life (including spouses/dependents)
  • Plan Years Ending October 2020– December 2020: $2.66 per covered life (including spouses/dependents)

For calendar plan years, the applicable rate for the 2020 plan year will be $2.66 per covered life.

Employers filing for a self-insured medical plan should keep in mind that the plan year is the ERISA plan year reflected in the plan document, SPD, and Form 5500 (if applicable).  The PCORI fee also applies to short plan years, defined as any plan year less than 12 months.

The fee is due July 31st (August 2nd in 2021) of the year following the last day of the plan year, including short plan years.

Examples

  • Employer with a calendar plan year first changes to a self-insured medical plan (including level funded) effective January 1, 2021. Employer must file the first Form 720 to pay the PCORI fee in July 2022 based on the TBD PCORI rate for next year.
  • Employer with a July 1 plan year first changes to a self-insured medical plan (including level funded) effective July 1, 2020. Employer must file the first Form 720 to pay the PCORI fee of $2.66 per covered life in July 2022.
  • Employer with a self-insured medical plan has short plan year from July 1, 2020 through December 31, 2020 to transition to a calendar plan year as of 2021. Employer must file the Form 720 in July 2021 to pay the PCORI fee for both the full plan year ending June 2020 ($2.54 per covered life) and the short plan year ending December 2020 ($2.66 per covered life). The PCORI fee amount is prorated for the short plan year, as detailed in the IRS PCORI Fee FAQ.

The IRS has published a table of the applicable filing deadline and rate for each plan year ending date.

How do we file the PCORI fee?

The PCORI fee is filed on the second quarter IRS Form 720, which is due by August 2, 2021 (July 31st is a Saturday in 2021).  Consult the IRS Instructions for Form 720 for direction on completing the form (see pages 8-9).

 

 

The Feds Are Coming, Is Your Business Ready? Part 1: New DOL Outreach

June 08 - Posted at 8:31 AM Tagged: , , , , , , , , , ,

The Department of Labor (DOL) has launched a new concentrated outreach initiative. For business owners, that means the DOL has promised to actively reach out via radio announcements, social media platforms and neighborhood posters informing employees of their rights under the Fair Labor Standards Act (FLSA). 

You may now be thinking “What does that have to do with me? I pay my employees to work”.  While this may be mostly true, often we (or our managers) inadvertently allow or encourage our employees to work off the clock.  Before your internal defenses kick into high gear, let me provide a few examples of how this could occur: 

  • Have you or one of your managers ever interrupted an employee during lunch to ask a “quick” work related question?
  • Do you auto deduct time for lunch each day?
  • Do your managers understand that if they need to reach out to employees before or after hours, even if it is a quick text or phone call, they should ensure the employee accounts for that time on their timesheet?
  • Do non-exempt employees have access to their work email on their personal phone?
  • How do you confirm time worked for remote employees is accurate?
  • Do you have a policy for your employees to report unauthorized or unapproved overtime?

Over the past year, business owners and managers have dedicated their time, energy and focus to keeping the essential business doors open or attempting to reopen and get employees back in the office.  To allow employees to safely return to work, you have had to operate/reopen your business within CDC guidelines, transition your business to accommodate a remote workforce, follow OSHA’s recommendations, keep up with Federal Equal Employment Opportunity Laws related to the COVID-19 pandemic, as well as the interaction between the Americans with Disability Act (ADA), Title VII of the Civil Rights Act of 1964, and the Genetic Information Nondiscrimination Act (GINA).  It is no wonder some of our focus on day-to-day compliance may have slipped. 

My company’s mission is to be The Employer Advocate.  Under the new administration, changes are happening at lightning speed and, as your advocate, we are here to help you navigate through changes as they occur.  Administrators Advisory Group (AAG) is a benefits brokerage that works with small to mid-size businesses, specializing in human resources compliance.  We work alongside your human resource team to keep you up to date with the latest workplace rules and regulations.

The Department of Labor (DOL) campaign is the first in our four-part series designed to let you know what changes have taken place that may affect your business. In the following weeks, we will cover changes regarding the Family First Coronavirus Response Act (FFCRA) as amended under the CARES Act, changes occurring within OSHA, and a new federal taskforce created whose goal is to unionize your employees. 

While Wage & Hour rules have not changed, the informational outreach by the DOL has just begun.  The biggest change comes in the form of visibility and accessibility of the information, beginning with the revamp of their website.  The DOL has promised to proactively reach out to employees using radio public service announcements, national webinars, social media messages, and posters. 

Reminding employers and employees alike that employees must be paid for ALL hours worked is the center of this outreach!  Even if you don’t ask an employee to work overtime, even if it’s done remotely, and even if you aren’t aware (but should have been), the employee is entitled to be paid.

Wage & Hour rules can be one of the many landmines that employers have to navigate on a daily basis. With AAG on your side, we will help you ensure you are prepared in case the DOL shows up on your doorstep. Let us know if you have questions or would like to review some of your existing practices or policies.

 

Part 1 of Myra’s Minutes- DOL Outreach

June 07 - Posted at 8:15 AM
Business owners and HR professionals alike say that it’s nearly impossible to keep up with all the changes, but as the Employer Advocate, we’re here to help. AAG has compiled a series of informative videos and articles to help your business navigate the upcoming changes.

This episode covers the new DOL Outreach program “Essential Workers, Essential Protections” including potential Wage & Hour issues your business may run into.

Check out the quick video  portion of Part 1 in our 4 part series of Myra’s Minutes 
here!


What A Big Surprise Before My Eyes… Advanced EOBs Coming in 2022

June 03 - Posted at 3:12 PM Tagged: , , , ,

The No Surprises Act (part of the Consolidated Appropriations Act introduced earlier this year) is poised to eliminate some of the surprises that group health plan participants encounter from unexpected charges.  One way the new legislation intends to accomplish this is with Advanced Explanation of Benefits (EOBs).

Beginning in plan years that start on or after January 1, 2022, group health plans are required to provide, upon request, what the No Surprises Act refers to as an Advanced EOB.  This new form is required to provide information on the estimated costs of procedures and services, especially the additional costs of non-participating providers.  The request for an Advanced EOB may be made by the participant or their representative and must include the billing and diagnostic codes for the anticipated services.  The Advanced EOB must then be provided within one business day of request for scheduled procedures (three business days if the request is made at least 10 business days before the scheduled procedure). 

The Advanced EOB must include:

  • Whether or not the provider or facility is in-network, and if so, the contracted rate under the plan for the provider or service. If the provider/facility is not in-network, the Advanced EOB must include a description on how the participant can obtain information on in-network providers/facilities.
  • A good faith estimate of the cost of the services to be provided, based on the billing and diagnostic codes provided, that must include:
    • the total cost for the services;
    • the amount of participant cost-sharing;
    • the accrued amounts already met by the participant towards deductibles and out-of-pocket maximums (as of the date of the notice); and
    • the amount the plan is responsible for paying.
  • A disclaimer regarding the requirement to obtain any medical management techniques for services subject to medical management techniques (such as prior authorization);
  • A disclaimer that the information is only an estimate and subject to change and any other information or disclaimer the plan determines is appropriate.

Plan Sponsors will be relying on insurers and TPAs to meet this new responsibility.  But, in the meantime, what should Plan Sponsors be doing so that they’re not surprised come January 1st?

  • Amend Summary Plan Descriptions to include a description of the right to request an Advanced EOB and the steps needed to do so;
  • Ask insurers/TPAs what steps they are taking to get ready for Advanced EOB requirements; and
  • Review service provider agreements and revise as necessary to include responsibility for providing Advanced EOBs (and responsibility for any penalties and/or costs that may be associated with missing deadlines or providing egregiously incorrect information).
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