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Legislative Updates - 2009

HRCG is ready to interpret and/or implement policies to address these legislative requirements for your business. Please contact us today for more information.

- ADA (Americans with Disabilities Act)
- COBRA
- EFCA / NLRMA
- FMLA
- HIPPA
- H-1B Visas
- I-9's
- Lilly Ledbetter Fair Pay Act
- Identity Theft - Red Flag Rules and FACTA


ADA (Americans with Disabilities Act)

The ADA (Americans with Disabilities Act), as recently amended (as the "ADA Amendments Act of 2008"), effective January 1, 2009, to expand the term "disability" and significantly increase the number of persons protected by the ADAAA.

To be protected under the ADAAA, a person has to be an individual with a disability who can perform essential job functions, with or without reasonable accommodations. The ADAAA significantly expands the definition of "disability" in four (4) ways:

  • Directing that a person's impairment must be considered without corrective measures ("the ameliorative effects of mitigating measures"), except for ordinary eye glasses and contact lenses.
  • Including in the definition of a disability those impairments that are episodic or in remission. These conditions will be covered by the ADAAA for their lifetime, even if their disease never becomes active again.
  • Expanding the definition of major life activities, to add "eating, sleeping, walking, standing, lifting, bending, reading, concentrating, thinking, and communicating" as well as bodily functions.
  • Directing the EEOC to adopt a broader interpretation of "substantially limits" as being "significantly restricted".
The bottom line: employers cannot discriminate against someone they regard as disabled, which is now associated with an exhaustive list of possibilities. HRCG is prepared to guide employers on how to best address these issues.

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COBRA

The new COBRA (Consolidated Omnibus Budget Reconciliation Act) subsidy rules, which were introduced by the American Recovery and Reinvestment Act of 2009 (ARRA - the new stimulus package) provides that certain individuals who have the right to continue group health coverage because of an involuntary termination that occurred (or occurs) between Sept. 1, 2008, and Dec. 31, 2009, may qualify for up to nine months of assistance in paying for that coverage.

The new subsidy addresses a (health care) premium reduction, as well as involuntary termination of employment (which includes situations where an employer discharges an employee who is willing and able to work, as well as when the employer's material adverse actions give the employee good reason to terminate employment.

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EFCA / NLRMA

EFCA (Employee's Free Choice Act) is also known as the "card check" bill, is a top legislative priority for labor unions. It would amend the National Labor Relations Act and eliminate secret-ballot workplace elections. Union representation would instead be decided through a card check process; unions would be certified automatically if a majority of an employer's workers sign union cards.

The legislation would mandate arbitration for first contract negotiations. Once a union is certified, the law would require arbitration between the union and employer if a voluntary agreement for a union contract cannot be reached within 120 days.

Alternative legislation to EFCA has recently surfaced - NLRMA (National Labor Relations Modernization Act) - to reach a compromise between labor and management interests. There are several new concessions suggested by the NLRMA, including application to employers having 20 or more employees and would not eliminate the requirement for secret ballot union elections, thereby avoiding EFCA's controversial card check provisions.

There are additional considerations with the NLRMA, which HRCG is prepared to address as your "employer advocate".

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FMLA

There are several new provisions to the Family Medical Leave Act (FMLA) which could result in additional administrative burden to employers First, is the ability for an employee to support a request for leave to care for a covered service member with a serious injury or illness. Since there is a "single 12-month period" for military caregiver leave to begin, the employee could have two leave years running under this new rule.

Second, there are new medical certification rules, as highlighted below

  • Employers now must designate leave as FMLA within five business days of the employee notifying the employer of the need for FMLA leave, rather than two days.
  • Employers also can require employees to follow their notice call-in procedures.
  • HR professionals may contact an employee's health care provider to authenticate or clarify a medical certification, if the employee is first given the opportunity to cure any deficiencies in the certification.
Last, the addition of care for covered service members, combined with new medical certification rules, has resulted in additional forms. The new forms are intended to help employers better manage the administrative requirements of FMLA, with different forms applying to the different types of serious health conditions.

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HIPPA

ARRA imposes significant new Health Insurance Portability and Accountability Act (HIPAA) privacy and security requirements on health plans, business associates and other vendors of personal health records.

There are several areas that are addressed by the new requirements:

  • Extension of HIPPA for business associates
  • Breach notification
  • Accounting for disclosures
  • Remuneration for exchange of PHI (Protected Health Information)
  • Right to restrict disclosures
  • Enforcement
There are many detailed aspects to this new legislation. Each of these are likely to have a significant impact on employers and their relationships with TPA's (Third Party Administrators) who have responsibility for administering health care plans. HRCG is ready to explain these requirements in more detail and help ensure proper recordkeeping of these critical documents.

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H-1B Visas

The U.S. Department of Homeland Security (DHS) has outlined new restrictions for employers that receive federal stimulus funds to hire foreign workers through the H-1B visa program. H-1B visas are granted to highly skilled, college-educated, temporary foreign workers for a maximum of six years.

EAWA was designed to ensure that employers receiving TARP funds do not displace U.S. workers by hiring H-1B workers. Therefore, employers that receive funds through the Troubled Asset Relief Program (TARP) will need to provide additional attestations to the U.S. Department of Labor (DOL) when seeking to hire H-1B workers, DHS' U.S. Citizenship and Immigration Services (USCIS) announced March 20, 2009. These restrictions are temporary and will sunset on Feb. 17, 2011.

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I-9's

Employers are no longer allowed to accept outdated forms of identification from employees. The U.S. Citizenship and Immigration Services (USCIS) wants to "ensure that documents presented for use in the Form I-9 process must be valid and reliably establish both identity and employment authorization," This change takes into account the limits placed by their issuing authorities. If a document does not contain an expiration date, such as a Social Security card, it is considered unexpired."

The new Form I-9 also:

  • Eliminates List A identity and employment authorization documentation Forms I-688, I-688A and I-688B (temporary resident cards and outdated employment authorization cards).
  • Adds foreign passports containing certain machine-readable immigrant visas to List A.
  • Adds to List A as evidence of identity and employment authorization valid passports for citizens of the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI), along with Form I-94 or Form I-94A indicating nonimmigrant admission under the Compact of Free Association Between the United States and the FSM or RMI.
  • Makes technical updates.

Employers must be using the new Form I-9 effective April 3, 2009.

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Lilly Ledbetter Fair Pay Act

The new law states that each paycheck that delivers discriminatory compensation is a wrong actionable under the federal EEO statutes, regardless of when the discrimination began. Therefore, the statute of limitations is reset when each discriminatory paycheck is issued. Previously, a compensation discrimination charge had to be filed within 180 days of a discriminatory pay-setting decision (or 300 days in jurisdictions that have a local or state law prohibiting the same form of compensation discrimination).

This new law clearly necessitates proper documentation on the part of employers - including pay audits, a well documented compensation philosophy, evaluation of compensation practices during the due diligence process associated with mergers and acquisitions (M&As), and other critical recordkeeping methods that will help employers prevent discriminatory pay practices.

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Identity Theft - Red Flag Rules and FACTA

The Red Flag Rules - applies to financial institutions and creditors who regularly extends, renews or continues credit for any entity for which there is a foreseeable risk of identity theft. The definition of a creditor is any organization that accepts deferred payment for any product or services. The deadline for compliance is May 1, 2009. There are ways in which employers expected to act when "red flags" surface.

FACTA (2003) - affects any business or individual who maintain, or otherwise possess consumer information for business purposes. Employee or customer information lost under the wrong set of circumstances may result in Federal and State fines of $2500 per occurrence and class action lawsuits with no statutory limitation

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