Within the last three months, a new federal law, a revised federal form, regulations and advisory guidance have been issued from various federal agencies. Companies should review existing policies and procedures in these areas and modify each accordingly.
21st Century Cures Act
Former President Barack Obama signed the act into law on Dec. 13, 2016. It provides an exemption to the IRS position that a health reimbursement arrangement of a small employer violates the market reforms under the Affordable Care Act. Under an HRA, the business reimburses an employee for some or all of the premiums for an individual health insurance policy. An HRA allows an associate to take tax-free reimbursements for medical expenses for a year up to a certain amount, with unused amounts available to roll over for use in upcoming years. Both the employer payment plan and HRA are considered to be group health plans. To qualify for the exemption, five requirements for the EPP or HRA must be met: 1. It must be furnished by an enterprise without a group health plan and with fewer than 50 staff members. 2. It must be funded exclusively by the organization. 3. It must be offered on the same terms to all eligible workers. 4. It must provide for the payment or reimbursement of medical care expenses incurred by an eligible team member or his family members. 5. It must impose annual caps of maximum reimbursements at $4,950 for individuals and $10,000 for family plans.
New Form I-9
As of Jan. 22, establishments must use the new version Form I-9-Employment Eligibility Verification, which was released by the U.S. Citizenship and Immigration Services on Nov. 14, 2016. The new form enables easier completion on computers and provides tools such as on-screen embedded instructions, drop-down lists, error messages and calendars for filling in dates. Other changes include streamlining certification for certain foreign nationals.
Privacy training
As of Jan. 19, federal contractors must follow a five-step plan to comply with new Department of Defense regulations regarding privacy training to ensure protection of personally identifiable information. 1. Identify the personnel subject to the privacy training rules. 2. Train those employees in privacy obligations. 3. Maintain documentation of who attended training. 4. Flow down these requirements to subcontractors. 5. Do not allow access to personally identifiable information by untrained staff.
Anti-retaliation programs
On Jan. 13, OSHA published its recommended practices for anti-retaliation programs. OSHA listed five components of effective programs, including training, program administration, management accountability, a system to obtain and resolve worker safety and compliance concerns, and a system for responding to reports of retaliation.
National origin discrimination
On Nov. 21, 2016, the Equal Employment Opportunity Commission issued new guidance regarding national origin discrimination, harassment and retaliation under Title VII of the Civil Rights Act of 1964. The new guidance replaces the 2002 compliance manual section concerning this subject. The EEOC now advises against a policy that disqualifies applicants without a Social Security number, stating the procedure might have a disparate impact on new, lawful, permanent residents. If a supervisor harasses an associate and a tangible employment action occurs, such as termination, the business may not utilize a defense based on the team member not adhering to the company’s reporting system. It is now actionable retaliation if an organization threatens reporting to the government that laborers are undocumented when the employees participate in an EEOC investigation. Regarding human trafficking, working under the threat of deportation will be a factor in determining whether an enterprise is liable for national origin discrimination.
Lynne Haggerman, M.S., is president/owner of Lynne Haggerman & Associates LLC, a Springfield firm specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@lynnehaggerman.com.
