HR Alerts – June 2017

HR Alerts For June 2017

Would you like to receive HR Alerts like these via email every month? Sign up for our newsletter here!

House Passes Comp Time Bill

On May 2, the House passed the Working Families Flexibility Act. The Act would amend the Fair Labor Standards Act to allow employees who work more than 40 hours in a workweek to choose between overtime pay in the applicable pay period, as the law requires now, or time off in the future. That time off in the future (comp time) would be banked at the rate of 1.5 hours for each overtime hour worked.

For example, an employee who works 44 hours in a workweek could choose between 4 hours of pay at 1.5x their regular rate, or 6 hours of paid time off in their comp time bank.

If it becomes law, it will only apply to states that do not currently have their own overtime laws requiring premium pay for hours over 40 in a workweek.

In states where comp time becomes legal – if it becomes legal at all – it may be used only if the employee chooses comp time instead of overtime pay. Employers will not be able to make comp time a standard practice or in any way coerce employees to choose comp time instead of overtime wages.

Additionally, employees will have the option of asking for payout of their unused comp time at any time with 30 days’ notice, and unused comp time will have to be paid out at the end of each year. Other limits and worker protections are included as well. Employers will not be required to offer a comp time option.

This bill still needs to pass in the Senate – where it faces an uphill battle – and be signed by the President before it becomes a law.

House Passes New Healthcare Bill

On May 4, the House narrowly passed a revised version the American Health Care Act (AHCA) – the GOP’s bill to repeal and replace the Affordable Care Act. The Senate has the next move. Rather than vote on the House bill, the Senate Republicans plan to write their own version and incorporate elements of the House bill into it.

At present, there are no action items for employers. In its current form, the AHCA keeps the employer mandate requiring employers with 50 or more full-time equivalent employees to offer minimum essential coverage.

However, it reduces the employer penalties to zero. So, employer-reporting requirements would remain in effect, but there would be no financial penalties for failure to offer minimal essential coverage.

If the AHCA becomes law, dropping coverage could still be financially risky according to some experts. Employers who simply drop coverage once the law goes into effect could, under some limited circumstances, potentially face lawsuits for impermissible reduction in benefits under the Employee Retirement Income Security Act (ERISA).

There is some debate about this, however.

Much remains unknown at this time. The Senate version of the bill could turn out to be very different, in which case the differences would need to be resolved in a conference committee.

We will be watching closely as this process continues and will keep you apprised of important updates. If a final version the AHCA passes both the House and Senate and is signed by President Trump, we will notify you and explain your options going forward.

It’s That Time Of Year – Internship Time!

The Department of Labor has six specific and hard-to-meet criteria for when an employee can be classified as an unpaid intern. If the position doesn’t satisfy all six, the worker must be classified as a paid intern (or simply an employee). Before advertising for or hiring an unpaid intern, ensure the following:

1. The internship is similar to training which would be given in an educational environment;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under close supervision of existing staff;
4. The employer that provides the training derives no immediate advantage from the activities of the intern (on occasion its operations may actually be impeded);
5. The intern is not necessarily entitled to a job after the internship; and
6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

Read our blog to learn everything you need to know before hiring a summer intern.

OSHA Delays Electronic Record-Keeping Rule Compliance Date

We previously reported on the new OSHA rule, which would require certain employers to submit injury and illness data electronically. The new reporting requirement was scheduled to go into effect on July 1, 2017.

However, OSHA just announced that the requirement has been delayed indefinitely. OSHA has not given the reason for the delay or provided any information about a future effective date. We will provide updates if and when they are available.

Online Only – Worker’s Comp Claims

Effective July 1, 2017, the Kentucky Labor Cabinet Department of Workers’ Claims will no longer accept paper filings. If you wish to file a claim, click here to log on and register with the Litigation Management System.

Would you like to receive HR Alerts like these via email every month?
Sign up for our newsletter here!