Posted on February 13, 2020

Disclosures Due Within 60 Days of Beginning of Plan Year

Employers that offer prescription drug coverage to Medicare-eligible individuals are required to complete an online disclosure form with the Centers for Medicare & Medicaid Services (CMS) on an annual basis and at other select times, indicating whether the plan's prescription drug coverage is creditable or non-creditable.

The plan sponsor must complete the online disclosure within 60 days after the beginning of the plan year. For calendar year health plans, the deadline for the annual online disclosure is normally March 1. However, since 2020 is a leap year, the deadline is Feb. 29, 2020.

Employers that are required to report to CMS should work with their advisors to determine whether their prescription drug coverage is creditable or non-creditable. They should also visit CMS' creditable coverage website, which includes links to the online disclosure form and related instructions.

© 2020 HR 360, Inc.

Posted on February 11, 2020

Notices Have Updated Expiration Dates of Jan. 31, 2023

The Department of Labor (DOL) has released updated versions of its model COBRA General Notice and model COBRA Election Notice, both with an expiration date of Jan. 31, 2023. As a reminder, these notices are required to be provided as follows:

• Plan administrators must provide covered individuals with a general notice within 90 days after their group health plan coverage begins.
• Plan administrators must provide qualified beneficiaries with an election notice within 14 days after receiving notice of a qualifying event (44 days under certain circumstances).

Click here for more information.

© 2020 HR 360, Inc.

Posted on February 11, 2020

Information Current as of Jan. 31, 2020

The Department of Labor (DOL) has released a new model Employer CHIP Notice with information current as of Jan. 31, 2020. As a reminder, employers with group health plans that cover participants in states that provide premium assistance subsidies through Medicaid or the Children’s Health Insurance Program (CHIP) are required to notify their employees annually, regardless of the employer’s location.

The DOL’s model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states that offer premium assistance subsidies, as well as the contact information for those states. Click here for more information.

© 2020 HR 360, Inc.

Posted on February 06, 2020

The requirement Became Effective January 1

Beginning this year, employers in Virginia must provide their employees with an itemized wage statement each regular pay date. Before this requirement became effective, Virginia employers were required to provide wage statements only upon request.

The new requirement applies to most employees and employers within the state. The law provides an exception for agricultural employers, including agribusiness and forestry (click here for more information on this exception).

At a minimum, each employee wage statement must include: 

• The employer’s name and address;
• The number of hours the employee worked during the pay period;
• The employee’s rate of pay;
• The gross wages earned by the employee during the pay period; and
• The amount and purpose of any payroll deductions.

As a result, employers in Virginia should review their payroll practices and their voluntary wage deduction policies and procedures to ensure compliance. 

© 2020 HR 360, Inc.

Posted on February 05, 2020

Law Takes Effect February 29

Maryland has enacted a "Ban the Box" law. Highlights of the law are presented below.

Covered Employers

The new law applies to Maryland employers with 15 or more full-time employees.  

Prohibited Employer Actions

Before conducting an in-person interview with an applicant, a covered employer may not require the applicant to disclose whether he or she:  

• Has a criminal record; or 
• Has had criminal accusations brought against him or her.  

An employer may, however, require an applicant to disclose this information during its first in-person interview with the applicant.

The new law also prohibits retaliating or discriminating against any applicant or employee because he or she has claimed a violation. 

Exceptions 

The prohibitions against requiring criminal record disclosure do not apply for: 

• Inquiries that are required or authorized under other laws; or 
• Employers that provide programs, services or direct care to minors or vulnerable adults.  

Enforcement 

Any violation may result in being ordered to comply by the Maryland Commissioner of Labor and Industry. A second or subsequent violation may result in civil penalties of up to $300 for each employee or applicant involved. 

Additional provisions are contained in the text of the law. To review other laws specific to Maryland, visit the State Laws section, click on Maryland, and choose your topic of interest.

 

© 2020 HR 360, Inc.

Posted on February 03, 2020

The New Form Will Expire on Oct. 31, 2022

On Jan. 31, 2020, the U.S. Citizenship and Immigration Services (USCIS) published a new version of Form I-9: Employment Eligibility Verification. The previous version of this form expired Aug. 31, 2019, but USCIS advised employers to continue using the expired form until a new form was made available.

Transition Period

With the new form, USCIS has also clarified that employers have the option of initially using either the expired or the new Form I-9. However, employers must begin using the new form exclusively by May 1, 2020. 

What’s Different?

The paper version of the new form has not changed, but the electronic form shows a few minor changes. Specifically, the new form:

• Lists additional countries (Eswatini and Macedonia) in the country of issuance field;
• Clarifies who can act as an authorized employer representative;
• Updates the USCIS website address;
• Clarifies the list of acceptable documents;
• Updates the process for requesting paper versions of the form; and
• Updates the privacy notice from the Department of Homeland Security.

New Expiration Date

The new Form I-9 was approved by the Office of Management and Budget on Oct. 21, 2019 and has a new expiration date of Oct. 31, 2022.

© 2020 HR 360, Inc.

Posted on February 03, 2020

New Requirements Become Effective May 20

State law already requires New Jersey employers to notify their employees of their payroll deductions, for each period when a deduction is made. However, on Jan. 21, New Jersey amended its law to require employers with 10 or more employees (including public employers) to include in each employee’s wage statement:

• The employee’s gross wages;
• The employee’s net wages;
• The employee’s rate of pay; and
• The number of hours the employee worked during that pay period, if this information is relevant to the calculation of that employee’s wages for that pay period.

Employers will be able to provide this information electronically, unless the employee specifically asks to receive it in print. 

Employers in New Jersey should review their payroll practices to ensure employees receive compliant wage statements by May 20, 2020. 

© 2020 HR 360, Inc.

Posted on January 31, 2020

New Requirements Become Effective July 19

On Jan. 21, 2020, New Jersey adopted significant changes to the Millville Dallas Airmotive Plant Job Loss Notification Act (New Jersey WARN Act). The New Jersey WARN Act, much like its federal counterpart, the federal Worker Adjustment and Retraining Notification Act (WARN Act) exists to notify employees of upcoming plant closings and other events that lead to mass layoffs. 

Key Amendments

The amended New Jersey WARN Act will require employers to: 

• Give advanced notice when 50 or more employees will be terminated or laid off;
• Deliver the notice at least 90 days before the first termination takes place; and
• Provide severance pay to affected employees, in proportion with their years of service.  

The amended New Jersey WARN Act will apply to employers with 100 or more employees, regardless of whether the employees are full or part time. In addition, to determine whether the advance notification requirements apply, employers will need to aggregate layoffs for all affected groups located within the state, unless they can prove the cause of termination or layoff is different for each group.

Next Steps

Employers should review how these amendments affect their notification, compensation and severance pay release practices. 

© 2020 HR 360, Inc.

Posted on January 29, 2020

The new Overtime and Minimum Pay Standards Order Becomes Effective March 16

On Jan. 22, 2020, the Colorado Department of Labor and Employment (CDLE) announced the adoption of the Colorado Overtime and Minimum Pay Standards Order #36 (COMPS 36). COMPS 36 replaces Colorado’s Minimum Wage Order 35 and all previous state minimum wage orders. 

Among other things, COMPS 36:  

• Expands the scope of the state’s wage orders. Previous wage orders applied only to specific industries. Beginning Mar. 16, 2020, COMPS 36 will apply to all Colorado employers, unless specifically exempt.
• Sets a schedule for increasing salary levels under the state’s overtime white collar exemptions. The minimum annual salary threshold will increase every year until it reaches $55,000 by Jan. 1, 2025. 
• Offers expanded employee break rights. The 30-minute meal break will become fully compensable if the employee is “on duty” and 10-minute breaks will become more flexible.
• Clarifies employer obligations regarding pre- and post-work time, employee tips, employee breaks and the duties test for the high-tech computer employee exemption. 

Applicability

The order applies to a wider variety of employees, including migratory laborers, and provides guidelines on relevant factors employers must consider to determine whether any particular worker is an employee or an independent contractor. 

COMPS Order 36 also dictates that the term “employer” includes foreign labor and migratory field labor contractors or crew leaders. However, the order does not apply to state, county, city or municipal organizations. 

© 2020 HR 360, Inc.

Posted on January 28, 2020

The New Poster Must be Displayed by April 1

Employers in New Jersey will need to add an employee classification poster to their required workplace posters and notices by April 1. The New Jersey Department of Labor and Workforce Development has been tasked with creating a model poster for employers to use to satisfy this requirement. The new notice will include a description of employee protections against misclassification. 

New Jersey employers should monitor the publications issued by the Department between now and April 1 to ensure compliance with this law. Employers are also encouraged to review their employee classification policies and procedures to avoid potential misclassifications and penalties. 

© 2020 HR 360, Inc.

Posted on January 21, 2020

Privacy and Security Rule Violations Impacted by Rule

On Jan. 17, 2020, the Department of Health and Human Services (HHS) published a final rule increasing the civil monetary penalties for violations of the HIPAA Privacy and Security Rules. HHS is required to adjust these penalties for inflation each year. 

Effective Jan. 17, 2020, the following civil penalty amounts apply to violations of HIPAA’s Privacy and Security Rules: 

• For each violation where the covered entity does not know about the violation (and by exercising reasonable diligence, would not have known about the violation) the penalty amount is between $119 and $59,522.  
• If the violation is due to reasonable cause, the penalty amount is between $1,191 and $59,522. 
• For each corrected violation caused by willful neglect, the penalty amount is between $11,904 and $59,522. 
• For each uncorrected violation caused by willful neglect, the penalty amount is $59,522, with an annual cap of $1,785,651 for all violations of an identical requirement.  

Click here for more details.

© 2020 HR 360, Inc.

Posted on January 15, 2020

2020 DOL Penalty Amounts for ERISA Violations Issued

The U.S. Department of Labor (DOL) has increased the penalties employers face under ERISA for group health plan reporting and disclosure failures. These new amounts apply to penalties assessed after Jan. 15, 2020, and include the following: 

• Summary of Benefits and Coverage (SBC): Failure to provide group health plan participants and beneficiaries with an SBC may now result in a penalty of up to $1,176 per participant or beneficiary.
• Employer CHIP Notice: Failure to provide a CHIP Notice to employees in states that offer group health plan premium assistance through a state Children's Health Insurance Program may now result in a penalty of up to $119 per day per employee.
• Summary Plan Description (SPD): Failure to furnish an SPD to the DOL upon request may now result in a penalty of up to $159 per day (not to exceed $1,594 per request).
• Form 5500: Failure to file an annual report with the DOL (unless a filing exemption applies) may now result in a penalty of up to $2,233 per day. 

© 2020 HR 360, Inc.

Posted on January 14, 2020

On Jan. 12, 2020, the U.S. Department of Labor (DOL) announced a new four-factor balancing test to determine whether two or more organizations should be considered “joint employers” under the Fair Labor Standards Act (FLSA). The final rule establishing the new test becomes effective March 16, 2020. 

The final rule requires the DOL to examine whether a potential joint employer: 

• Hires or fires the employee;
• Supervises and controls the employee’s work schedule or conditions of employment to a substantial degree;
• Determines the employee’s rate and method of payment; and
• Maintains the employee’s employment records.

However, the rule also clarifies that additional factors may be considered as necessary. Please note that this final rule and new test apply only to joint employment status for FLSA compliance and do not address joint employment status under other federal employment laws.

The DOL has the authority to enforce full compliance with labor standards against one or all joint employers. To avoid violations, employers should:

• Become familiar with this final rule; 
• Evaluate whether they are in a joint employment situation; and
• Identify any potential areas of non-compliance by joint employers.

© 2020 HR 360, Inc.

Posted on January 10, 2020

Opinion Letters Provide an Insight on How the DOL applies the Law to Specific Facts

On Jan. 7, 2020 the U.S. Department of Labor (DOL) issued two opinion letters that clarify how the Fair Labor Standards Act (FLSA) applies in specific situations. Opinion letters provide the DOL’s official opinion on how the law applies in specific situations. Employers that rely on opinion letters may be able to establish a “good faith defense” under the law. As a result, employers should become familiar with these letters and review their practices to ensure compliance with FLSA requirements.

FLSA 2020-1: Lump Sum Nondiscretionary Bonuses Must Be Included in Regular Rate

In its first letter, the DOL asserts once again that employers must include nondiscretionary bonuses in their employee’s regular wage rate calculations. In addition, the opinion letter outlines how employers may go about allocating lump sum nondiscretionary bonuses that cover more than one workweek. This guidance is important to employers calculating overtime pay for employees who received such bonuses.

FLSA 2020-2: Per-Project Pay Can Satisfy the Salary Basis Test

In its second letter, the DOL asserts that per-project payments can satisfy the fee basis test if the payments do not vary from pay period to pay period, vary based on the number of hours worked, or vary based on the quality of the work performed. The DOL also explains that occasionally, employers may increase or reduce an exempt employee’s project compensation if the changes in pay are tied to changes in the scope of the project. 

However, an employee’s exempt status may be undermined if contract or project revisions are too frequent. 

© 2020 HR 360, Inc.

Posted on January 10, 2020

New Rate will Phase in Beginning June 30

On Dec. 31, 2019, New York amended its wage order for miscellaneous industries to eliminate the subminimum wage for tipped employees. Please note that the current tipped employee minimum wage rates still apply for the restaurant and hospitality industries. 

The minimum wage rate for tipped employees in miscellaneous industries will increase in two stages. 

• On June 30, 2020, the new rate will increase to cover 50% of the difference between the miscellaneous tipped wage and the minimum wage. 
• On Dec. 31, 2020, the miscellaneous tipped wage will increase again to become equal to the applicable minimum wage.

The miscellaneous industry wage order applies to employees who are not covered by another minimum wage order or work for a nonprofit (if the nonprofit employer has elected to be exempt under the state’s wage order for nonprofit institutions.) Employees covered by the miscellaneous industry wage order include nail and hair salon workers, aestheticians, car wash workers, valets, doormen and doorwomen, dog groomers, tour guides and tow truck drivers.

© 2020 HR 360, Inc.

Posted on January 07, 2020

Temporary Injunction Applies Only to the Trucking Industry

A district court in San Diego has issued a temporary injunction to prevent enforcement of California’s recent AB 5 law for the trucking industry. This injunction does not affect other industries and all other employers are still expected to comply with the state’s “ABC test” for employee classification. 

California Trucking Assoc. v. Becerra

In a lawsuit brought against the state of California, the California Truckers Association (CTA) asserted that the recently enacted bill AB 5 would reclassify most drivers as employees. The CTA argued that most truck drivers it represents would prefer to retain their independent contractor classification, which allows them to set their own schedules and profit from owning their own vehicles. The CTA also argued that AB 5 is preempted by a federal law that prohibits states from regulating the price, route or service of freight-hauling motor carriers. 

The district court judge found that the CTA was likely to succeed in its case and likely to suffer irreparable damage if relief was not granted, and that the request for a temporary injunction was in the public interest. A hearing on this matter is scheduled for Jan. 13, 2020. 

While the CTA case is not the only case that has been filed against California’s AB 5, this case is the only one that has succeeded against enforcement of the new law. 

Next Steps

We will continue to monitor challenges to this law and provide updates as new developments take place. Employers should continue to review their employee status classification practices to ensure compliance with federal, state and local laws

© 2020 HR 360, Inc.

Posted on December 31, 2019

Business Mileage, Medical and Moving Rates Decrease

On Dec. 31. 2019, the Internal Revenue Service (IRS) issued the 2020 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 57.5 cents per mile driven for business use (down from 58 cents in 2019);
• 17 cents per mile driven for medical or moving purposes (down from 20 cents in 2019); and
• 14 cents per mile driven in service of charitable organizations (unchanged).

Click here for more details.

© 2020 HR 360, Inc.

Posted on December 17, 2019

New Law Becomes Effective July 1, 2020

On Dec. 11, 2019, Washington amended its wage and hour laws to increase the salary threshold white collar employees must satisfy to qualify for the state’s overtime exemption. The amendments also update some white collar duties tests to conform with the federal duties test under the Fair Labor Standards Act.

The updated salary levels will depend on employer size and will be based on the applicable state minimum wage rate. As a result, the threshold for the white collar exemptions in Washington will rise as the minimum wage rate increases. 

The new threshold and duties tests become effective July 1, 2020. 

Employers should review these amendments and update their payroll practices accordingly. Preparing to comply with this threshold increase may require reviewing employee salaries and responsibilities to ensure they are classified appropriately.

© 2020 HR 360, Inc.

Posted on December 17, 2019

New Law Takes Effect Oct. 7, 2020

A new law in Pennsylvania law will require employers in the construction industry to use the federal E-Verify system to confirm the employment eligibility of new hires. E-Verify is a federal web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. 

E-Verify is a voluntary program. However, Pennsylvania currently requires contractors and subcontractors hired to work on public works to enroll in E-Verify as a condition of contracting. The federal government has a similar requirement for contractors and subcontractors that work on projects paid for with federal funds. 

The new law expands the E-Verify requirement to contractors in Pennsylvania’s construction industry. The new law defines that employers are in the “construction industry” if they engage in the erection, reconstruction, demolition, alteration, modification, custom fabrication, building, assembling, site preparation, repair or maintenance of real property or premises under a contract. Covered work also includes work for public agencies and work paid for from public funds.

The new law also prescribes the penalties and exceptions state agencies must use to enforce or evaluate compliance. 

Click here for more information.

© 2020 HR 360, Inc.

Posted on December 13, 2019

Employers Must Begin Using the New Form Jan. 1

On Dec. 5, 2019, the Internal Revenue Service released an updated version of its W-4 form, also known as the “Employee’s Withholding Certificate.” 

Employers use IRS Form W-4 to determine each employee’s federal tax withholdings. The new form is intended to harmonize tax withholding declarations with the Tax Cuts and Jobs Act, which affected individuals for the first time during the last tax filing season. Employees may complete a new W-4 each year or each time they experience a change in their personal financial situation. However, the new form does not invalidate prior versions, and employers are not expected to replace W-4 forms from previous years with the 2020 version. 

Employers should become familiar with the updates to IRS Form W-4 and make it available for all new hires and employees who wish to amend their withholding declarations in 2020.

© 2020 HR 360, Inc.