Opinion: Federal law changes trickle down to industry

Recent changes regarding requirements in the Affordable Care Act, Consolidated Omnibus Budget Reconciliation Act, Fair Labor Standards Act and Office of Federal Contractor Compliance Programs impact area employers.

The following are a few updates to watch for.

PACE
President Barrack Obama signed the Protecting Affordable Coverage for Employees Act into law on Oct. 7.

A provision in the ACA scheduled to take effect in 2016 would have expanded the definition of small-group employers up to 100 staffers, from 50 employees.

The definition is significant because particular ACA insurance market reforms do not apply to insurance offered in the large group market, such as the mandate to provide essential health benefits.

The PACE Act maintains the definition of small employer to between two and 50 associates. Accordingly, businesses with 51 to 100 workers will not be faced with new requirements and increased costs for health insurance.

COBRA forms
The recently issued final instructions for forms 1094-C and 1095-C modified specific rules pertaining to the reporting for offers of COBRA coverage where the COBRA qualifying event occurs in the reporting year.

The current directives simplify the reporting for offers of COBRA coverage in the case of terminated laborers.

An offer of COBRA continuation coverage provided to an active team member, such as a reduction in hours that causes the loss of eligibility for coverage under the health plan, is reported in the same manner and utilizing the same code as an offer of that type of coverage to any other active employee.

The directions also cover COBRA provided to staff members who are not employed during any month of the reporting year under the heading of reporting enrollment information to nonemployees. There is no mandate to present a form 1095-C to a nonemployee, but where coverage is furnished, there is an obligation to give a form 1095-B and transmit on a form 1094-B.

FLSA and home care workers
The Department of Labor has begun enforcement of the final rule on protections relating to most home care workers. In the past, the FLSA allowed for exemptions to overtime requirements for companionship and live-in domestics. However, third-party employers will no longer be able to rely on these exemptions.

Direct-care workers, such as home health and personal care aides and certified nursing assistants, who are employed by third-party employers, such as home care agencies, must receive minimum wage for every hour worked and overtime for every hour worked over 40 in a workweek.

Laborers employed by a family or individual also may be required to comply if the home care associates are performing medically related responsibilities or delivering more than a narrow amount of care, in addition to fellowship and protection.

Contractor compliance posters
A supplement to the “EEO is the Law” poster is now mandated as part of the OFCCP’s new final pay transparency rule. The final rule is effective Jan. 11.

The rule only pertains to enterprises that enter into a new, covered federal contract or subcontract, or alter a standing, covered federal contract or subcontract on or after Jan. 11.

The OFCCP is presently collaborating with the Equal Employment Opportunity Commission to update the “EEO is the Law” poster due to additions and changes in numerous regulations. Until then, the OFCCP requires organizations to continue displaying the current poster, as well as the new supplement.

In addition, the OFCCP published a new outreach and education poster entitled, “Opening Doors of Opportunity for All Workers.” The purpose of the poster is to expand public awareness concerning the OFCCP and the requirement of federal contractors to treat laborers equally and without discrimination, including with regard to pay practices.

Lynne Haggerman, 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.