The Covid-19 pandemic made us all vulnerable, and many of us are struggling to keep our mental health. In the U.S., the percentage of adults with recent symptoms of an anxiety or depressive disorder increased from 36.4% to 41.5% from 2020 to 2021 — so much so that the U.S. Preventive Services Task Force, an expert panel managed by the Department of Health and Human Services, recommended that doctors screen all adult patients under age 65 for anxiety. The Lancet also estimated that the pandemic caused an additional 53.2 million cases of major depressive disorder globally and an additional 76.2 million cases of anxiety disorders globally.
So, if one of your employees is struggling with their mental health, how do you talk about it? While you will have to have conversations that feel intimate and discomfiting, it’s also not your job to be the office therapist, and you don’t need to have all the solutions when a team member is struggling. Said Daisy Auger-Dominguez, chief people officer at Vice Media Group: “We are not therapists [but] we have to show evidence of care in our engagement with our teams. We also must ensure employees have access to the things that they need to be able to do their work well.”
The good news is that it’s possible to handle mental health conversations without overstepping your expertise. And while it’s natural to worry you’ll start asking the wrong questions or that your employee might ask questions you can’t answer, you can take steps now to create a culture where vulnerable conversations are OK, where boundaries stay in place and where people can get the help they need.
If having conversations about employee mental health makes you nervous, here are three things to remember:
Be Prepared for Vulnerable Conversations
All managers need to be familiar with the basics of privacy practices in the workplace and to have a set of questions ready for when mental health conversations happen.
Jen Porter, COO of the non-profit workplace mental health consultancy, advises to be curious about the impact of an employee’s mental health challenges, not the cause. She said, “You can ask anything you want about the impact of what’s happening on their work and at work. That’s fair game.” What you shouldn’t ask about, she said, is why the employee is having difficulties. Stay away from “what’s going on at home, the deep causes, the health history…anything that falls into that camp. That’s all therapist camp.”
In the U.S., the Americans with Disabilities Act (ADA) offers a basic rule: You can’t discriminate against someone based on health. This means “you can’t force them to talk about their health,” noted Porter. But you can address impacts on work — and the ADA also states employers should provide “reasonable accommodations” to employees with disabilities, including mental illness.
Porter suggested asking open-ended questions and pairing them with non-judgmental observations. “You can ask something like, ‘Hey, I’ve noticed you’ve been absent in our usual meetings, just wanted to check in and see how you were,’ or ‘You’re such an awesome project manager, but a lot of things seem to have been falling by the wayside. I just wanted to check in on you and see if there’s extra support you need or, or if you need to have a conversation with someone.'” These are very human but still about work.
If your employee opens up, however, what do you do? Porter advised, “Clearly they’ve found you to be a person that they trust — well done.” Your job as a manager is to listen, and then enable your employee to get help — but you “don’t want your employee to feel like you’re dropping them or handing them off. … We always recommend a more collaborative approach.”
Auger-Dominguez agreed. “You can say, ‘I’m feeling a little bit over my head right now. If it’s ok with you, I’ll reach out confidentially to HR to make sure that I’m giving you all the support that you need. And let’s meet again in a week.'” You might even suggest that you and the employee walk down to the HR office or connect to a mental health employee resource group. “Just because they’re getting support from someone somewhere else doesn’t mean that they’re [still] not getting support from you,” Auger-Dominguez noted. “It just means that they’re getting support from multiple places and you can focus on where you can give the right support, which is in a work-related context.”
If there’s low trust in HR within an organization, Porter suggested connecting an employee to a peer-based group which tends to have higher trust among employees. “Often people in those groups will have worked with HR or will have tried out the mental health benefits. And sometimes that storytelling and normalizing can be super helpful.”
Set and Protect Boundaries
Whenever you talk about mental health, personal boundaries come into play — the limits and rules we set for ourselves in our relationships. When we cross our own or others’ boundaries, things can feel uncomfortable, emotionally draining and just not right. Many managers fear becoming their employees’ go-to resource for mental health challenges because instinctively we know that our boundaries will be crossed, which will zap our own energy and mood. This might lead us to avoid having vulnerable conversations with members of our team.
However, there is a way to have these conversations and protect boundaries, said clinical psychologist Dr. Emily Anhalt. When it comes to addressing how people should share in a work setting, Anhalt suggested using “boundaried vulnerability”: sharing enough with others to invite connection, without sharing so much that you or your team has an emotional hangover.
The idea, Anhalt said, is that “There’s a spectrum from too tight to too leaky. Too tight is when we don’t let ourselves show up as humans at work. When we’re going through a really tough time and someone asks how we’re doing and we say ‘I’m good, everything’s fine. I don’t know what you’re talking about.'” This doesn’t work well because people are perceptive and may feel like we’re shutting off possibilities for authentic connection. Too leaky is when people “evacuate so much of their emotional stuff at work that it puts other people in a position of being their therapist or fixing something they don’t have the responsibility to fix.”
Let’s say a person is going through a messy divorce. They’re really overwhelmed and it’s affecting their work. If they pretend everything is fine, that’s too tight of a boundary and not reality. You and your colleagues actually want to know how the person is doing! But on the other end of the spectrum, saying something like “My spouse is just being absolutely horrible to me, and I don’t know what I’m going do about it. Every day I wake up and I don’t know how I’m going get through the day and I get here and it’s just more of the same. What do you think I should do? How should I handle it?” — that’s too leaky.
What’s the middle ground? Anhalt said the boundaried vulnerability version would be for the person to say something like, “To be honest, I’m actually going through some really tough stuff at home. It’s definitely affecting how I’m showing up at work. I’m getting support with it. But what I’d really love from you, if you’re open to it, is a little bit of extra time on that deadline? Is that doable?”
As managers, we can model boundaried vulnerability. If someone comes to us in a puddle, we can say, “I can tell that you’re going through a lot, and I want to make sure that you get the support you deserve for this.” In this situation, we’re modeling own boundaries while also helping the person move to the most appropriate next steps. Auger-Dominguez said you can also keep boundaries and support an employee by holding structured time open for them. If you learn about a mental health crisis during a one-on-one check-in, you can end that meeting by saying something like: “Our next scheduled meeting is five days from now. Is it okay to wait until then? Or would you like to check in earlier?” Then, honor their preference and show up for them at their desired time.
Further, as you set your own boundaries, it’s important to understand that our own anxieties and challenges may be triggered by leaning in to help our employees, said Arti Kashyap Aynsley, global head of health and wellbeing at Ocado Group. Managers want to “lean into being empathetic and compassionate, but we have tasks and deliverables and things that need to get done,” and there are only so many hours in the day. Managers can provide support and guidance, but other professionals in your organization likely have time and training dedicated to help employee mental health.
However, she noted, because rates of mental ill health are so high, and so many people need additional support, companies also need to give managers the time to accommodate increased needs of their teams. It’s not fair to expect managers to support their teams’ needs while not building in space for these conversations to happen.
Showing Up Is the Most Important Thing
Perhaps the most important thing a manager can do to support employees is to show up and listen, and then figure out what your employee needs.
Auger-Dominguez said if a team member seems “a little wobbly,” she asks a simple question: “Do you need me to witness, help or distract you right now?”
This is important, “because if we get clear on that, I’m also normalizing asking what people need, rather than making an assumption. It also creates clarity on what the expectation is from me as their manager. Sometimes they just want me to witness, so it’s not about me solving for anything. It’s just about them. If they want help, I’m going to help them get the resources they need.” And if the employee needs a distraction, Auger-Dominguez might say, “Hey, let’s go for a walk or coffee.” This strategy also helps develop your employees’ agency; that way, they feel empowered to ask for help, versus you trying to assume what they need.
The conversations you have with your employees are the culture you create. Dr. Thomas Insel, former director of the National Institutes of Mental Health, said that only 10% of mental health outcomes are a result of clinical mental health care. The determinants of mental health are broader and societal, and our workplaces are a huge factor in our mental health. Mentally healthy workplaces want employees to feel valued, heard, impactful — and to have agency over their time, work and decisions.
So, remember: You don’t need to be the office therapist. You just need to be ready to listen.
Small organizations have overcome a range of HR challenges in recent years, from managing through a pandemic and converting employees to remote and hybrid work to talent shortages, widespread resignations, and inflation’s impact on compensation and benefits. For those who work at small companies, these challenges can be even more difficult due to a lack of resources and training.
A recession likely is looming, according to many economists who predict that rising inflation will slow business revenues through much of next year and prompt layoffs, some of which have already been announced at large companies such as Amazon, Meta and Disney.
While larger companies often are better suited to survive a downturn, small organizations can find it much more challenging, which is why many are taking steps now to prepare. The following are several ways in which small businesses can gear up for a possible recession while keeping employees’ best interests in mind.
Cut Back on Spending
When a recession is on the horizon, smaller organizations should immediately review all spending and look for ways to reduce or eliminate unnecessary costs, said Linda Chavez, founder and CEO at Seniors Life Insurance Finder in New York City. Given uncertain economic indicators, Chavez said, she is keeping compensation flat for her 50 employees and is operating as lean as possible.
“We have been prudent in our spending in recent years and have built up a cash reserve that will help us weather any storm,” she said. “I’m optimistic about the future because I believe that our company is well-positioned to weather a recession. We have a strong product and a loyal customer base.”
Reduce Bonuses
To many small employers, retaining their workforce is of greatest importance. David Aylor, founder and CEO of David Aylor Law Offices in South Carolina, said his priority is to keep his 15 employees on payroll throughout the duration of the recession and not spend on bonuses to make up for lost revenue.
“We have no plans to lay any of our people off,” he said. “Although we may have to cut down on our bonuses, we fully intend to continue to offer salary raises to keep our existing employees happy. This is because the cost of recruiting and training new employees is very high. So even in a recession, it will be cheaper to give existing employees raises than to lose them.”
Lease Out Employees
Commercial and residential real estate has taken a major hit this year due to rising interest rates. At Borgia Consulting Corp., a service title insurance agency with 10 employees in Fort Myers, Fla., real estate closings have dropped 75 percent in recent months. Fearing the situation will get worse during a recession, owner Karina Lacroix is now leasing out her employees to other companies.
“We get to keep the employee on our payroll, but their income is being covered by the company leasing the employee,” she explained. “If our business turns and we need the employee back, the new company is already aware and the employee would return to their daily activities with our company. That will keep us from having to find qualified candidates for those positions in the future and have to train again.”
Employees are able to continue their relationship with Lacroix’s company and keep receiving their pay, while other employers benefit from having skilled workers on their team, at least on a temporary basis.
“I’m really hopeful that all of my staff will be back together again soon,” Lacroix said. “If I were not hopeful, I would not have leased them out and would have laid them off instead.”
Consider Raising Prices
Rather than laying off any employees, some businesses are raising their prices to make up for lost revenue. Tom Monson, owner at Monson Lawn Care and Landscaping in the Minneapolis area, has taken this approach to protect his 12 employees.
“We’ve done our best to keep inflation at bay, but eventually we had to raise our prices to keep up with our spending,” he said. “We’ve tried to cut our costs without laying off employees so that we’d have a little bit of wiggle room in our coffers to absorb some of a recession. And if it turns out this is all overblown, then we can use that money for more advertising or to upgrade some of our equipment.”
Monson added that as a small business, “the only thing I really can do is to plan ahead, make sure our relationships with our customers are solid and not overexpand my business when it looks like things might be rough on the horizon.”
Research Employee Needs
If you aren’t sure how to proceed when attempting to prepare for a recession, consider advice offered by Julia Christenson, U.S. chair of employee experience at global public relations and communications services firm Edelman.
“Understanding your employees, their day-to-day life and what they are facing is crucial,” she said. “Many companies, especially those with front-line workers, are removed from the daily challenges employees face and don’t have a full understanding of how the recession will impact them. This is particularly true for companies with multi-generational workforces who face a range of social issues and different priorities.”
According to the 2022 Edelman Trust Barometer, which measures employee trust in the workplace, 90 percent of people want organizations to protect the well-being and financial security of their employees and suppliers, even if it means suffering financial losses.
“In preparing for the recession, companies should carefully evaluate the commitments made to employees and the potential trade-offs in continuing to manage employee trust and engagement,” Christenson said. “It’s also critical that companies continue to foster real and true transparency around financial rigor, pay equity and financial decision-making.”
Lacroix said she is committed to putting her employees’ needs at the forefront while ensuring that her business is able to survive the downturn.
“I believe that as business owners, we have the responsibility of protecting and keeping our employees happy,” she said. “[I thought] of how we can protect our staff but also help our bottom line during the recession. It’s up to us to come up with ideas that may be considered out-of-the-box to be able to bend with shifting markets and benefit our work family.”
She continued, “I’m sure that if other business owners consider their staff as family, they also will come up with a variety of ways to help their staff and their company during those market changes.”
Article courtesy of The Society of Human Resource & Management (SHRM)
Each year, millions of people in the U.S. experience seasonal affective disorder (SAD), also called seasonal depression or the “winter blues.”
The disorder is characterized by short periods of sadness or people not feeling like their usual selves, according to the National Institute of Mental Health. People may start to feel “down” when the days get shorter in the fall and winter but then feel better in the spring.
“Seasonal affective disorder is a form of depression tied to a seasonal pattern,” said Hanne Hoffmann, assistant professor in the College of Agriculture and Natural Resources at Michigan State University (MSU). “It usually begins in the fall, but some people do experience it in the summer.”
Employers have become increasingly cognizant of mental health problems in the workplace, evidenced by more companies offering “mental health days” and enhanced counseling benefits. Hoffman said that organizations can support workers with SAD in more nuanced ways.
Who Is Vulnerable to Developing SAD?
Sabine Schmidt, director for psychology education with the University of Minnesota, said that the symptoms of SAD often mirror those of major depression. These signs and symptoms can include:
A 2020 article by Forbes indicated that SAD can negatively affect motivation and diminish workplace communication and productivity. Workers with the disorder are also more prone to injuries, accidents and absenteeism, which costs businesses $51 billion annually.
“These symptoms may not be immediately visible [in the workplace] but could go with behaviors such as decreased work productivity, difficulty being on time, slowness, irritability or social withdrawal,” Schmidt explained.
Hoffman said that women experience SAD four times more frequently than men do. She noted that it is unclear why women are more at risk for seasonal depression than men.
Studies have indicated that as much 20 percent of the population in northern states, including Alaska, experience some degree of seasonal depression in the winter because daylight hours are shorter. In southern states like Florida and Texas, seasonal depression is rare.
Why Workers Need Sunlight
Hoffman, who holds a doctorate in biochemistry and neurobiology, runs a lab at MSU that studies how light regulates our physiology, affects our overall well-being and mood, and induces changes in brain function.
“Sunlight boosts your mood and energy,” she said. “What really happens [with SAD] is that our mood follows light quality and light intensity.”
Many employees who work in an office arrive to work when it is still dark outside. When they leave the office, dusk approaches. Hoffman said that this lack of sunlight can increase their risk of developing seasonal depression.
She also noted that natural light promotes an increased sense of well-being. In the fall, many workers do not get enough natural light to maintain the brain signals for feeling happy, so they start to feel sad.
“It’s important that the workers see bright light in the morning,” she explained.
Tips for Employers to Prevent Seasonal Depression
Most workplaces have indoor lighting that is relatively dim. Hoffman suggested that employers improve their indoor lighting, especially in the late fall, to prevent or reduce the effects of seasonal depression among their employees.
She recommended that employees dealing with SAD purchase a light therapy lamp, which emits a brighter light than traditional bulbs, to keep at their desk. She also implored companies to consider allowing more flexible work hours during the winter months.
“The workplace can allow people to start a little later so they see the morning light,” Hoffman said. “Giving them the flexibility to see this morning light will help them prevent seasonal depression.”
Schmidt said that companies should educate themselves as well as their employees about the winter blues.
“For instance, many people wrongly believe that SAD is a minor form of depression or caused by a bad attitude,” Schmidt said. “However, people don’t cause SAD and cannot simply shake it off.”
She also recommended that companies:
Schmidt implored workers to address any signs of winter blues before they become full-blown SAD or major depressive disorder. Once SAD reaches the levels of major depressive disorder, it can cause serious mood changes that affect thoughts and actions.
“It can be quite debilitating and lead to other serious problems such inability to work, substance abuse, physical health deterioration and even suicide,” she said. “Those with known SAD should consult a mental health professional about when to start treatment to help minimize symptoms.”
Employees can put an extra $200 into their health care flexible spending accounts (health FSAs) next year, the IRS announced on Oct. 18, as the annual contribution limit rises to $3,050, up from $2,850 in 2022. The increase is double the $100 rise from 2021 to 2022 and reflects recent inflation.
If the employer’s plan permits the carryover of unused health FSA amounts, the maximum carryover amount rises to $610, up from $570. Employers may set lower limits for their workers.
The limit also applies to limited-purpose FSAs that are restricted to dental and vision care services, which can be used in tandem with health savings accounts (HSAs).
The IRS released 2023 HSA contribution limits in April, giving employers and HSA administrators plenty of time to adjust their systems for the new year. The individual HSA contribution limit will be $3,850 (up from $3,650) and the family contribution limit will be $7,750 (up from $7,300).
CARRYOVER AMOUNTS OR GRACE PERIOD
Health or dependent care FSA funds that are not spent by the employee within the plan year can include a two-and-a-half-month grace period to spend down remaining FSA funds, if employees are enrolled in FSAs that have adopted the grace period option.
Health FSAs have an additional option of allowing participants to carry over unused funds at the end of the plan year, up to an inflation-adjusted limit set by the IRS, and still contribute up to the maximum in the next plan year. Health FSA plans can elect either the carryover or grace period option but not both.
Dependent Care FSAs
A dependent care FSA (DC-FSA) is a pretax benefit account used to pay for dependent care services such as day care, preschool, summer camps and non-employer-sponsored before or after school programs. Funds may be used for expenses relating to children under the age of 13 or incapable of self-care who live with the account holder more than half the year.
These plans may also be referred to as dependent care assistance plans (DCAPs) or dependent care reimbursement accounts (DCRAs).
In general, an FSA carryover only applies to health FSAs, although COVID-19 legislation permitted a carryover of unused balances for DC-FSAs into the next plan year for plan years 2020 and 2021 only.
The dependent care FSA maximum annual contribution limit is not indexed and did not change for 2022 or for 2023. It remains $5,000 per household for single taxpayers and married couples filing jointly, or $2,500 for married people filing separately. Married couples have a combined $5,000 limit, even if each has access to a separate DC-FSA through his or her employer.
Maximum contributions to a DC-FSA may not exceed these earned income limits:
Employers can also choose to contribute to employees’ DC-FSAs. However, unlike with a health FSA, the combined employer and employee contributions to a DC-FSA cannot exceed the IRS limits noted above.
A separate tax code child and dependent care tax credit cannot be claimed for expenses paid through a DC-FSA, as “double dipping” is not permitted.
Due to ongoing COVID-19 concerns, employers will have the flexibility to remotely review employment documents for I-9 purposes in some circumstances until July 2023 — and they should keep using the current Form I-9 even though it was set to expire at the end of the month, according to two important announcements this week from the Department of Homeland Security (DHS). Here’s what you should know as we wait for additional DHS guidelines and prepare for anticipated changes.
Keep Using the Current Form I-9 — But Stay Tuned for Further Guidance
DHS notified employers that they should continue to use the current I-9 — which has an expiration date of October 31, 2022 — until further notice. So, stay tuned for additional information, as we will provide an update when DHS publishes its new Form I-9, associated instructions, and effective date.
Timely compliance will be critical, since failing to use the current version of Form I-9 can result in administrative penalties. You should be prepared to take immediate action and discard the current version when the new one goes into effect.
Relaxed Document Inspection Rules Remain in Play in Limited Circumstances
Due to continued safety precautions related to COVID-19, DHS announced that it will extend its updated I-9 flexibilities until July 31, 2023. Since early on in the COVID-19 pandemic, USCIS has allowed employers to remotely review — by Zoom, video chat, FaceTime, fax, or other electronic means — the identity and work-authorization documents that are necessary to complete employees’ I-9 forms during the hiring and reverification process. These “relaxed” rules have applied in the following situations:
Under these rules, employers must eventually inspect the relevant documents in person, but only if an employee stops working remotely and begins to report to the employer’s physical location on a regular, consistent, or predictable basis.
A Sign of Changes to Come?
This extension of the relaxed rules aligns with recent DHS efforts to kickstart the rulemaking process for a permanent protocol on remote document review. The latest extension of the relaxed document review rules is seen by some as more proof that DHS is dedicated to creating a permanent remote document examination rule. If implemented, the rule would allow employers to hire workers in far-flung locations, inspect their documents remotely, and eliminate the current requirement of in-person review by a company employee or authorized representative.
On October 11, 2022, the IRS released a final rule that changes the way health insurance affordability is determined for members of an employee’s family, beginning with Plan Year (PY) 2023 coverage. Beginning in 2023, if a employee has an offer of employer-sponsored coverage that extends to the employee’s family members, the affordability of that offer of coverage for the family members will be based on the family premium amount, not the amount the employee must pay for self-only coverage, when purchasing coverage in the marketplace.
To view the final rule, visit: https://www.federalregister.gov/public-inspection/2022-22184/affordability-of-employer-coverage-for-family-members-of-employees
Prior to each year’s Medicare Part D annual enrollment period, plan sponsors that offer prescription drug coverage must provide notices of creditable or noncreditable coverage to Medicare-eligible individuals.
The required notices may be provided in annual enrollment materials, separate mailings or electronically. Whether plan sponsors use the federal Centers for Medicare & Medicaid Services (CMS) model notices or other notices that meet prescribed standards, they must provide the required disclosures no later than Oct. 15, 2022.
Group health plan sponsors that provide prescription drug coverage to Medicare Part D-eligible individuals must also disclose annually to the CMS (within 60 days following their plan renewal) whether the coverage is creditable or noncreditable. The disclosure obligation applies to all plan sponsors that provide prescription drug coverage, even those that do not offer prescription drug coverage to retirees.
Background
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 requires group health plan sponsors that provide prescription drug coverage to disclose annually to individuals eligible for Medicare Part D whether the plan’s coverage is “creditable” or “noncreditable.” Prescription drug coverage is creditable when it is at least actuarially equivalent to Medicare’s standard Part D coverage and noncreditable when it does not provide, on average, as much coverage as Medicare’s standard Part D plan. The CMS has provided a Creditable Coverage Simplified Determination method that plan sponsors can use to determine if a plan provides creditable coverage.
Disclosure of whether their prescription drug coverage is creditable allows individuals to make informed decisions about whether to remain in their current prescription drug plan or enroll in Medicare Part D during the Part D annual enrollment period. Individuals who do not enroll in Medicare Part D during their initial enrollment period (IEP), and who subsequently go at least 63 consecutive days without creditable coverage (e.g., they dropped their creditable coverage or have non-creditable coverage) generally will pay higher premiums if they enroll in a Medicare drug plan at a later date.
Who Gets the Notices?
Notices must be provided to all Part D eligible individuals who are covered under, or eligible for, the employer’s prescription drug plan—regardless of whether the coverage is primary or secondary to Medicare Part D. “Part D eligible individuals” are generally age 65 and older or under age 65 and disabled, and include active employees and their dependents, COBRA participants and their dependents, and retirees and their dependents.
Because the notices advise plan participants whether their prescription drug coverage is creditable or noncreditable, no notice is required when prescription drug coverage is not offered.
Also, employers that provide prescription drug coverage through a Medicare Part D Employer Group Waiver Plan (EGWP) are not required to provide the creditable coverage notice to individuals who are eligible for the EGWP.
Notice Requirements
The Medicare Part D annual enrollment period runs from Oct. 15 to Dec. 7. Each year, before the enrollment period begins (i.e., by Oct. 14), plan sponsors must notify Part D eligible individuals whether their prescription drug coverage is creditable or non-creditable. The Oct. 14 deadline applies to insured and self-funded plans, regardless of plan size, employer size or grandfathered status
Part D eligible individuals must be given notices of the creditable or non-creditable status of their prescription drug coverage:
According to CMS, the requirement to provide the notice prior to an individual’s IEP will also be satisfied as long as the notice is provided to all plan participants each year before the beginning of the Medicare Part D annual enrollment period.
Model notices that can be used to satisfy creditable/non-creditable coverage disclosure requirements are available in both English and Spanish on the CMS website. Plan sponsors that choose not to use the model disclosure notices must provide notices that meet prescribed content standards.
Notices of creditable/non-creditable coverage may be included in annual enrollment materials, sent in separate mailings or delivered electronically. Plan sponsors may provide electronic notice to plan participants who have regular work-related computer access to the sponsor’s electronic information system. However, plan sponsors that use this disclosure method must inform participants that they are responsible for providing notices to any Medicare-eligible dependents covered under the group health plan.
Electronic notice may also be provided to employees who do not have regular work-related computer access to the plan sponsor’s electronic information system and to retirees or COBRA qualified beneficiaries, but only with a valid email address and their prior consent. Before individuals can effectively consent, they must be informed of the right to receive a paper copy, how to withdraw consent, how to update address information, and any hardware/software requirements to access and save the disclosure. In addition to emailing the notice to the individual, the sponsor must also post the notice (if not personalized) on its website.
In Closing
Plan sponsors that offer prescription drug coverage will have to determine whether their drug plan’s coverage satisfies CMS’s creditable coverage standard and provide appropriate creditable/noncreditable coverage disclosures to Medicare-eligible individuals no later than Oct. 15, 2022.
As the economy remains resilient, companies are in a battle not only to hire capable talent, but also to retain the workers that are assets to the organization. Much has been written about the impact of the Baby Boomers and Millennials in the workplace. However, what about the smaller Generation X cohort that is sometimes the forgotten middle child of the generations? While they may be outnumbered by the Millennials and Boomers, their influence has shaped US companies during years of technological advancement and corporate change. What are the characteristics of Gen X, and what do they want from their employer?
Independent
The Gen X group born between 1965-1980 was often referred to as latchkey kids. This term was used because a number of them came home alone after school because both parents worked. This fostered a sense of self discipline and autonomy. These individuals had to self-manage their own activities and make decisions based on judgment in the absence of an adult. Gen X learned not to depend on others for constant direction; they created their own outcomes.
Adaptable
Gen Xers childhood predated the internet, personal home computers, and cell phones. They had to learn evolving technology as well as embrace and master it to be successful in corporate America. From the generation that used the first cordless home phone, to commanding the world of work on a smartphone, their actions illustrate the ability to adapt, pivot, and embrace change.
Self-Reliant
This cohort has experienced two Gulf Wars, dot com bust, 9/11 tragedy, The Great Recession, and COVID. All of these events came with a great loss of jobs and retraction of the economy. Gen Xers have managed to navigate some of the most unprecedented events in history that impacted careers and livelihoods. Their resourcefulness helped them thrive and develop the expertise needed to stay relevant in the workforce in the midst of those events.
Growth and Development
Invest in Gen X workers continued growth and development. Whether it be formal classroom leadership training, conferences and seminars, or online courses, help them enhance their skill set. They already have a wealth of business acumen, so modernizing their tool kit benefits them and improves results for the organization. Most of Gen X has been working for decades, and any job can become repetitive and monotonous if skill sets become stagnant. Create a culture of learning and design training programs that address the needs of mid-career professionals.
New Projects & Meaningful Work
Invite them to lead new company projects and initiatives. In addition, consider offering Gen Xers a different role outside of their comfort zone that teaches them a new talent. They likely have a distinguished track record of tackling new assignments, so keep them energized with new leadership responsibilities. Evaluate your process for promotions. Is it based on performance data? Many in this group want to achieve the next level of success within a company. Engage in dialogue and determine what is important to them in their career trajectory.
Flexibility
Some Gen Xers want enhanced flexibility to care for children, parents, or pursue outside interests. Flexibility desires may reach beyond the ability to work from home periodically. Moreover, some may want to take on a part time role or become an independent contractor supporting their current team. Some workers may simply want more vacation days. One size does not fit all when it comes to flexibility, and people have different motivators – ask them.
Mentor Others
Every organization is engaged in succession planning as the life line for business continuity. Gen X is an irreplaceable asset of industry knowledge and expertise. Many want to mentor, teach, and help the next generation succeed in their careers. They have a command of workplace dynamics and want to impart their skills and coach new leaders to excel in the organization.
The Generation X Influence
As pivotal members of corporate work teams, Gen X is 53 million strong in the US labor force. This group is often described as autonomous but driven to make a difference and have an impact. By using different methods to engage Gen X, we can align to their values and retain them for decades.
There are two potential ACA employer mandate penalties that can impact ALEs:
a) IRC §4980H(a)—The “A Penalty”
The first is the §4980H(a) penalty—frequently referred to as the “A Penalty” or the “Sledge Hammer Penalty.” This penalty applies where the ALE fails to offer minimum essential coverage to at least 95% of its full-time employees in any given calendar month.
The 2022 A Penalty is $229.17/month ($2,750 annualized) multiplied by all full-time employees (reduced by the first 30). It is triggered by at least one full-time employee who was not offered minimum essential coverage enrolling in subsidized coverage on the Exchange. Note: The IRS has not yet released the 2023 A Penalty increase.
The “A Penalty” liability is focused on whether the employer offered a major medical plan to a sufficient percentage of full-time employees—not whether that offer was affordable (or provided minimum value).
b) IRC §4980H(b)—The “B Penalty”
The second is the §4980H(b) penalty—frequently referred to as the “B Penalty or the “Tack Hammer Penalty.” This penalty applies where the ALE is not subject to the A Penalty (i.e., the ALE offers coverage to at least 95% of full-time employees).
The B Penalty applies for each full-time employee who was:
Only those full-time employees who enroll in subsidized coverage on the Exchange will trigger the B Penalty. Unlike the A Penalty, the B Penalty is not multiplied by all full-time employees.
In other words, an ALE who offers minimum essential coverage to a full-time employee will be subject to the B Penalty if:
The 2022 B Penalty is $343.33/month ($4,120 annualized) per full-time employee receiving subsidized coverage on the Exchange. Note: The IRS has not yet released the 2023 B Penalty increase.