HR Forum: employee benefits

Showing posts with label employee benefits. Show all posts

One size doesn't fit all: Paid leave benefits vary by industry, occupation and wages

A report by the U.S. Bureau of Labor Statistics (BLS) revealed some interesting findings about paid sick leave benefits, including:

• Access to paid sick leave for private industry employees varied by occupation, ranging from 42% for service workers to 84% for management, professional and related occupations

• 81% of employees earning wages in the highest 25% wage distribution bracket had access to paid sick leave, compared to 33% for employees in the lowest 25% backet

• In private industry, employee received an average of eight days of paid sick leave after one year of service (with small establishments offering an average of six days and large establishments, 11 days)

• The cost of sick leave per employee hour worked in state and local government was $0.81, compared to $0.23 an hour in private industry

• Higher-paying occupations typically incur higher sick leave costs, averaging $0.53 per employee hour worked in management, professional and related occupations, compared to $0.08 for service occupations

As an employer, you are not required by law to provide paid leave benefits for your employees. But to attract and hold on to workers, most employers offer some sort of paid sick leave in their benefit package.

How do your paid sick leave benefits compare to national averages? Are you doing enough with this particular employee perk? To learn more, check out the entire Program Perspectives: On Paid Sick Leave.

Independent contractor vs. employee: Proposed bill would toughen classification standards

In mid-December, 2009, Senator John Kerry introduced a bill in the Senate that focuses on employers misclassifying workers as independent contractors. The bill, called the Taxpayer Responsibility, Accountability, and Consistency Act of 2009 (S.2882), would amend Section 530 of the Revenue Act of 1978.

The “safe harbor provision” of Section 530 gave businesses some leeway in classifying workers as independent contractors for employment-tax reasons. If certain requirements were met and the business had a “reasonable basis,” it could treat an individual as an independent contractor without having to resort to the IRS’ 20-factor common-law test.

But that could change with Kerry’s proposed legislation. Under the Taxpayer Responsibility, Accountability, and Consistency Act, a business would have a “reasonable basis” for classifying a worker as an independent contractor (and not be held to the common-law test) only if it met these two new standards:

1) The employer didn’t treat any worker in a substantially similar position as an employee since December 31, 1977

2) The independent contractor classification was based on a written statement from the Department of Treasury that the worker was not an employee, or on an IRS examination that concluded the worker was not an employee

The bill would also require you to issue a Form 1099 to anyone your business pays more than $600 annually, in addition to giving workers classified as independent contractors the right to obtain a determination of their status from the Secretary of the Treasury.

So what’s your status, Gladys?

If a worker is classified as an employee, you are required to withhold income taxes, and pay Social Security, Medicare and unemployment taxes. With independent contractors, however, you do not have these same obligations.

Yet if you misclassify an employee as an independent contractor, you may pay dearly down the road.

Basically, the questions in the IRS’ common-law test fall under three categories:

1) Behavioral control – Does your business direct or control how a person’s work is done through instructions, training or other means?

2) Financial control – Do you direct or control the business aspects of a person’s job, such as reimbursing expenses or providing supplies?

3) Type of relationship – What is the relationship between your business and the worker, such as written contracts or employee-type benefits like insurance and vacation pay?

In most cases, if your level of control extends to what is done by an individual – as well as how it is done – then that worker is an employee and not an independent contractor. An independent contractor, as a sole proprietor, directs many aspects of the business relationship.

Getting this right is critical – and could become more so under the Taxpayer Responsibility, Accountability, and Consistency Act. Misclassify a worker and you could be looking at a substantial tax bill and penalties from the IRS. There’s also the possibility of a misclassified independent contractor suing you for not providing the necessary overtime, meal periods or rest breaks that an employee would receive.

Hiring to come out of its deep freeze as economy warms up

According to CareerBuilder’s 2010 Job Forecast, employers will be revisiting their hiring strategies in the new year, largely due to the dark cloud of the depressed economy beginning to lift.

"There have been many signs over the past few months that point to the healing of the U.S. economy, especially the continued decrease in the number of jobs lost per month, a trend that will hopefully carry over into the new year," said Matt Ferguson, CEO of CareerBuilder.

In its survey of more than 2,700 hiring managers and human resource professionals nationwide, CareerBuilder uncovered some very encouraging hiring predictions for 2010, including:

=> 20% of employers plan to increase their number of full-time, permanent employees
=> 11% of employers plan to add part-time employees
=> Employers in the West plan to increase their headcounts the most of any other region, with nearly 24% saying they will add full-time workers (compared to 21% in the Northeast, 20% in the South and 16% in the Midwest)
=> Hiring is expected to increase the most in these industries: information technology, manufacturing, financial services, professional and business services, and sales
=> The types of jobs that employers plan to hire for most frequently are technology and customer service, followed by sales, research/development, business development, accounting/finance, and marketing

Hiring isn’t the only area being resuscitated in the new year. According to the CareerBuilder survey, companies will be “making up for lost ground caused by the recession” by pursuing 10 additional key trends.

In yet another “top 10 list” in a January blog post (!), these key initiatives include:

1. Replacing lower-performing employees
2. Focusing on social media to strengthen brand
3. Rehiring laid-off workers
4. Providing flexible work arrangements
5. Cutting perks and benefits
6. Rehiring retirees and postponing retirement
7. Turning to freelance or contract hiring
8. Adding green jobs
9. Stepping up bilingual recruitment
10. Reducing business travel

So what about your business? Will hiring come off the back burner and make an appearance again in 2010? And what about the other trends CareerBuilder revealed in its survey? Will you be taking any of the same steps?

They're back! Employee benefits slo-o-o-o-wly returning as economy rebounds

Like a slumbering bear awakening from his long winter’s hibernation, the economy is showing signs of life again. It’s still a little sluggish, but it’s stirring and has stepped into the light of day.

That’s good news, as is the fact that more employers are bringing back the benefits they were forced to freeze during the worst of the recession. During tough times, many companies slashed 401(k) matches, merit-based raises and bonuses, and other employee perks to help cut costs. A recent USA today article, however, shares some encouraging results from a report from human resources consultancy Towers Perrin:

=> Nearly two-thirds of firms that locked in salaries last year will start offering raises again in 2010

=> Approximately one-third of firms that dropped 401(k) matches will increase or restart those company contributions next year

And many of these companies are reinstating these benefits for the best of reasons: To motivate and retain their most valuable employees, so they don’t walk out the door as the economy (and job market) strengthens.

"When you start coming out of a recession, people remember how they were
treated," says Fred Crandall, a Watson Wyatt senior human resource consultant. "Some people who feel like they've been given a raw deal will jump ship." USA Today

Yet many of these benefits won’t be as robust as they once were. Gone are the days of the usual 401(k) match of 50 cents on the dollar, up to 6% of pay. Many companies, like FedEx, will offer smaller matches. Other companies will look at certain factors when adjusting benefits, such as tying 401(k) matches to quarterly or annual financial performance.

And what about raises? They may return in 2010, but not in an across-the-board, one-size-fits-all fashion. Four in 10 employers in the Towers Perrin report stated that they will differentiate among employees when considering salary increases, doling out the highest raises to only the highest achievers. A weak employee may see no raise at all.

While these re-emerging benefits will be a welcome change to employees in the new year, employees shouldn’t assume it’s business as usual in 2010. Most employers will be extremely cautious when reinstating benefits, keeping a close eye on the economy’s recovery.

“More organizations are being much more clear that benefits such as 401(k) matches are discretionary,” says Brad Kimler, executive vice president of Fidelity’s Consulting Services business.

What about your company? Are you in a position to start bringing back some of the benefits you placed on the back burner in 2009? Do you see the economy - and your business - rebounding enough in 2010 to reinstate 401(k) matches, raises and other benefits? We'd love to hear what's happening in your corner of the world!

Flex time: How far are you willing to bend?

The traditional, 9-to-5 workplace model is going the way of the typewriter, shoulder pads and pocket calculators. Flexible workplace scheduling - whether letting employees telecommute, work part time or leave early one day a week - is becoming more commonplace.

In fact, nearly all of the 1,100 companies polled by the nonprofit Families and Work Institute in a 2008 report provide at least one type of flexible work option. The Families and Work Institute considers flexibility “a way to define how and when work gets done and how careers are organized”. For employees, this may include:

• having traditional flex time (setting daily hours within a range periodically)
• having daily flex time
• being allowed to take time off during the work day to address family matters
• being able to take a few days off to care for a sick child without losing pay, having to use vacation days or make up an excuse for the absence
• being able to work some regular hours at home
• being able to take breaks when one wants to
• having a work shift that is desirable
• having complete or a lot of control over the work schedule
• being able to work part-time (if currently full-time) or full-time (if currently part-time) in one’s current position
• being able to work a compressed work week
• being able to work part-year in one’s current position

It’s no surprise that employees support flexible scheduling, where the payoffs include higher job satisfaction and commitment to their work, coupled with lower stress and job burnout.

"We know from the research that if you have choice or autonomy and you have the
support to make those choices and you're held accountable, those are the
things that most affect how you feel about your employer, as well as your
health and well-being," says Ellen Galinsky, President of the Families and
Work Institute.

To promote flex time in your workplace, Ilyse Shapiro, founder of the job search website MyPartTimePRO.com, recommends:

1. Make sure your organization’s culture supports work/life initiatives. “Flexibility” shouldn’t be just a catchphrase but a concept embraced throughout the organization.

2. Effective work/life balance programs should be nondiscriminatory, available to all employees, male or female, with or without children, regardless of income level, job title, exempt/nonexempt status or marital status.

3. Career advancement and training opportunities should be offered to those with flexible schedules as well as to those with traditional schedules.

What type of flexible work options do you extend to your employees? What are the challenges, if any, you’re facing? Post a comment and tell us more.

Federal agencies improving work/life balance, setting precedent for private sector

A number of federal agencies, including the Office of Personnel Management (OPM), are implementing new programs to improve work/life balance issues for the thousands of workers they employ.

Earlier this month, three federal department and agency heads, including OPM Director John Berry, met to discuss how to improve the work environment within each organization.

Berry, who said that he would give the OPM’s current work/life balance programs a “generous” grade of D+, is working with the Interior Department and the General Services Administration (GSA) to create a set of model programs for the 7,000 employees at the agencies’ neighboring headquarters.

“Establishing work/life programs and creating a better work environment is critical, particularly in the public sector, where managers don’t control pay and benefits, Berry says.” (Workforce)

Berry started by setting up “The Wolf Pack,” a group of 12 employees to give insight into what work/life balance issues the OPM workforce is most concerned with.

Among the list of top priorities is providing day care for employees’ parents and expanding the OPM health clinic. OPM has since devoted $300,000 in upgrades to the clinic. He is also working to expand and broaden the organization’s telework program, of which 34% of OPM employees already participate in.

“Experts believe that if Berry’s programs are successful, not only will other federal agencies adopt them, but private employers will as well, as they realize they need such programs to compete for talent.” (Workforce)

Read more about the OPM’s work/life balance initiatives in their recent press release: Four Federal Agencies Combine Forces To Create a Model Federal Work-Life Campus.

Small businesses report steady or improved morale, despite recession

A new workplace survey suggests that efforts by small businesses to maintain employee morale throughout the recession are paying off.

More small businesses believe that employees’ work environment has more impact on job satisfaction than financial factors like benefits or compensation, according to the TriNet quarterly HR Trends Survey.

More than 75% of the 250 small businesses surveyed said employee morale has held steady or improved during the second quarter. Another 41% believed that employee morale in their companies has remained unchanged from a year ago. More than one-third (34%) felt that employee morale in their organizations improved during the past year.

Survey respondents cited company culture and reputation as the top contributor (36%) to employee morale, followed by flexibility and work/life balance (23%) and job security (22%). The bottom of the list included advancement opportunities (4%), benefits (5%), or compensation (9%).

Well over half of employees (60%) said their employer successfully built and maintained a positive employment brand through good communication and quality management practices.

“These results prove that employees are happier and more likely to stay with their companies due to the quality of their management,” said Burton M. Goldfield, president and CEO of TriNet. “Companies that develop the skills of their leaders boost employee morale, which then positively contributes to the company’s overall employment brand.”

How do you think the recession has impacted employee morale at your company? Over the past year, has it improved, remained steady or declined? Please leave a comment and let us know how your organization is handling it.

What workers want most this summer: Time

Flexible schedules and leaving work early on Fridays are the the benefits employees want most this summer, a new survey by OfficeTeam suggests.

More than 450 office workers were asked, “Which of the following summer benefits would you most like to have?” They answered:

Flexible schedules 38%

Leave early on Fridays 32%

Activities (e.g. company picnic, potluck) 6%

More relaxed dress code 5%

“Employees appreciate flexibility in their jobs because it gives them greater control and enables them to handle other commitments without sacrificing their work performance,” said Robert Hosking, executive director of OfficeTeam.

Flexible scheduling can be an inexpensive way to motivate employees during the summer months, adds Hosking. For businesses worried that customer service will suffer, he suggests staggering workers’ schedules to maximize the total number of hours employees are able to assist customers.

“Companies should pilot flexible schedule programs before rolling them out permanently,” Hosking recommended. “This gives businesses time to evaluate the impact on workflow and productivity.”

If flex time isn’t an option, allowing employees to occasionally leave early on Fridays can boost morale. Many workers plan activities and weekend trips during the summer months and would appreciate the extra time to get started, says Hosking.

Fear, lack of paid time off drive sick employees to work

Despite daily news coverage of the swine flu outbreak and reports of flu-related deaths, U.S. workers continue to show up for work sick, according to a recent Monster.com poll.

The nationwide poll revealed that 71% of almost 12,000 U.S. workers who responded between May 11 and May 18, 2009, said they report to work even when feeling ill.

“Of those who go to work sick, 33 percent fear losing their job if they take a sick day, while 38 percent admit their workload is too busy to take a day off from work even when they are ill,” said Norma Gaffin, director of career content, Monster.com, in a press release.

When asked “Do you go into work sick?” respondents answered:

Yes, work is too busy for me to miss a day: 38%
Yes, in this economy, I’m afraid I’ll lose my job: 33%
No, I work from home if I’m sick: 10%
No, I rest up to get better: 19%

Even if they wanted to, many workers can’t stay home when they’re sick. An estimated 57 million working Americans have no paid sick days. For these workers, staying home from work means losing pay or possibly losing their job.

"The problem has really come into sharp relief the past few days," said Debra Ness, president of the National Partnership for Women and Families, which has long pushed for paid sick leave. "Many people don't even realize that almost half the private sector — 48 percent — has no sick days, not even a single one."

"We have officials telling people to stay home when they're sick," she added. "Well, guess what? That can be the beginning of economic disaster for many, especially in this economy."

A 2008 study on sick leave found that 68% of workers without paid sick days had gone to work with a contagious illness like the flu or viral infection. Additionally, one in six workers reported that they or a family member had been fired, suspended, punished or threatened with firing after taking time off to care for themselves or a family member, according to the 2008 study by the University of Chicago's National Opinion Research Center.

Currently, the U.S. is the only country out of the top 20 world economic powers with no federally mandated sick days. But that may be about to change.

On May 18, 2009, Sen. Edward M. Kennedy, D-Mass., and Rosa DeLauro, D-Conn., reintroduced the Healthy Families Act (H.R. 2460), which would let workers earn up to seven paid sick days a year. Those paid sick days could be used to care for themselves or a sick family member.

“As Congress works hard to pass quality, affordable healthcare for every American, they must make sure workers are able to do the things necessary to keep themselves and their families healthy. Paid sick days benefit both workers and employers, as there is substantial evidence that it improves productivity and the bottom line,” said DeLauro in her address to the House of Representatives last week.

Our legal team will continue to watch the Healthy Families Act and how the legislation may affect your business. Check back regularly for the most up-to-date information.

Do you still show up to work when sick? Why? Do you think the U.S. should have federally mandated paid sick leave? Leave a comment and let us know what you think.

Want to cut costs? Send employees home.

To work, that is.

While it can hardly be considered a new idea in the business world, telecommuting may deserve a second look if your company is searching for ways to cut costs, according to a recent Entrepreneur.com article.

“Rather than thinking outside the box, you may want to think outside the office.”

In 2008, more than 17 million U.S. workers telecommuted at least one day a month, according to a WorldatWork report. Telecommuters account for slightly more than 10% of the workforce and their numbers have grown almost 40% from 2006.

Over the next seven years the U.S. telecommuter population will reach 63 million, amounting to almost a third of all U.S. workers, according to Forrester Research predictions.

Both U.S. business owners and their employees are proponents of telecommuting. More than 70% of the U.S. workforce and 53% of small businesses are interested in telecommuting, according to Citrix Online’s Worldwide workplace survey.

The benefits of telecommuting on the business’ side range from lower energy costs, to improved employee retention and lower payroll costs. About 1 in 5 workers are willing to give up 5% of their salary to telecommute just a couple days a week, according to the Citrix survey.

However, simply sending employees home to work won’t immediately reduce your payroll. There will always be some management and logistical issues to work out before putting an employee telecommuting program in place.

From Entrepreneur.com:

If people share workstations when they are in the office, you need a schedule of when they'll be home and when they won't. There's also the question of oversight and management--some business owners and managers want to see their employees (and, let's face facts, some employees need to be seen). Plus, not every business function is conducive to remote work. Point being you need to pick your spot.

There's also a technology hurdle to clear. To be effective, your remote workers need access to communications and applications and you need to figure out how to provide everything from a phone extension to secure IT access.

These days, every company is looking for ways to get more done with less and telecommuting offers a major advantage. After working out the logistics, telecommuting gives employees the benefit of flexibility and employers will stay competitive by cutting operating costs and having the ability to hire top talent regardless of their location.

Of course, telecommuting won’t work for every business or career, but it’s worth taking another look at. Depending on your situation, it has the potential to deliver some real perks.

Citrix’s “Worldwide Workplace: The Web Commuting Imperative” is available at www.workshifting.com.

Has your company saved money by allowing employees to telecommute? What benefits/drawbacks to telecommuting have you experienced?

DOL seeks public comment on mental health parity law

The U.S. Departments of Labor (DOL), Treasury, and Health and Human Services (HHS) published a request for information (RFI) in the April 28 Federal Register asking for public comments regarding the Mental Health Parity and Addiction Equity Act of 2008.

The mental health parity bill was signed into law in October 2008, ensuring better insurance coverage for mental health treatments. The law requires health care plans to provide equal coverage of mental and physical illness.

Before the bill was signed, insurers could set high co-payments and deductibles and stiff limits on treatment for mental illness and addiction disorders.

The government is now seeking information and advice from the public regarding the best ways to implement the new rules for group health plans.

The public is encouraged to share comments on issues including:

The types of financial requirements or treatment limits currently set by health plans.
How certain terms in the statute could be clarified to make compliance easier.
Health plans’ current disclosure practices regarding medical necessity determinations and denial of medical coverage.
Current health plan practices concerning out-of-network coverage for mental health benefits.

Public comments may be submitted by mail, through the Federal eRulemaking Portal (http://www.regulations.gov), or by sending an e-mail to E-OHPSCA.EBSA@dol.gov. Comments will be accepted through May 28, 2009.

Employers plan to cut more retirement perks amid recession

The number of employers offering, and planning to offer, retirement perks to new employees has fell in response to the recession, according to a recent survey by Hewitt Associates.

Instead of offering premium retirement features, including automatic enrollment and company matches, the survey found that employers are more focused on offering lower-cost strategies, such as automatic rebalancing and target-date funds.

Hewitt’s annual survey of about 150 mid- to large-sized employers revealed that half (51%) currently offer automatic enrollment, up from 44% in 2008.

Among the companies that don’t currently offer automatic enrollment, just 25% are likely to add it for new hires, down from 57% in 2008.

The top reason for not offering automatic enrollment is because of the high cost of the employer match. According to the survey, only 2% of employers have cut or temporarily suspended 401(k) company matches since the recession began, about 5% plan to do the same this year.

Depending on where our economy stands in the next 12 to 18 months, Hewitt predicts that about 10% of companies will also cut or suspend 401(k) matches.

Has the economy forced your business to cut back on employee retirement perks? What lower-cost strategies are you using instead?

IRS releases info to help employers claim COBRA credit

The Internal Revenue Service (IRS) has released detailed information that will help employers claim credit for the COBRA medical premiums they pay for their former employees, a measure contained in President Obama’s economic stimulus package passed last month.

Employers will find a comprehensive set of questions and answers at IRS.gov, in addition to a revised version of the quarterly payroll tax return employers must use to claim credit for COBRA medical premiums paid for former employees.

Beginning with the first quarter of 2009, the Employer’s Quarterly Federal Tax Return, Form 941, is the form used to claim the new COBRA payments credit.

“This is the first step in our effort to provide employers with information on this important health benefit for people who have lost their jobs,” said IRS Commissioner Doug Shulman. “We will continue our work in the weeks ahead to help employers implement this crucial change for the nation’s unemployed.”

In February, President Obama signed the American Recovery and Reinvestment Act of 2009. The new law contains specific changes to COBRA health benefit requirements, changes that affect former employees, their employers and COBRA coverage providers.

Under the new law, eligible former employees, enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent of the cost of COBRA coverage. Employers must treat the 35 percent payment by eligible former employees as full payment, but the employers are entitled to a credit for the other 65 percent of the COBRA cost on their payroll tax return.

The IRS notes that employers must maintain supporting documentation for the COBRA credit claimed, including:

Documentation of receipt of the employee’s 35 percent share of the premium.
In the case of insured plans: A copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier.
Declaration of the former employee’s involuntary termination.

Visit the Department of Labor for more information about COBRA payments and read another HR Forum post on the subject: Stimulus plan subsidizes COBRA, expands unemployment insurance.

Obama on labor law: Preparing for change

As President-elect Barack Obama prepares to take his place in the White House, businesses across the country are considering what impact his plans will have on their organizations in the coming years.

In our existing unpredictable market, businesses should be prepared for impending changes related to wages, immigration, taxes, health care, executive compensation and benefits, civil rights and an inevitable increase in worker unionization, according to Littler Mendelson, the nation’s largest employment and labor law firm representing management, in a recent article.

“The combination of President Obama, with an electoral mandate for change from the voters, large Democratic gains in both houses of Congress, and the declining economy, sets the stage for a wave of legislative and regulatory proposals intended to protect workers in these troubled times,” Jay Sumner, a Washington, DC-based attorney at Littler said. “In the first 100 days and over the next four years, American businesses should anticipate significant changes.

“Those companies that educate themselves and prepare to navigate the changed labor and employment landscape will survive and prosper, and they should have a competitive edge over those that are caught unprepared,” said Sumner in a recent Seacoastonline.com article.

Here are the most important employment law issues we’ll be watching after Obama takes office in 2009:

Unions - The Employee Free Choice Act (EFCA), designed to make it easier for unions to organize, is the top item on the labor agenda. Obama has already pledged to sign EFCA into law once passed.

Health care - Experts predict that the Obama Administration will explore avenues to keep the current employer-provided health care system in place. Obama’s health care plan would require employers to provide health care benefits or pay a percentage of payroll to support public health care.

Immigration - The new administration will push to increase enforcement of immigration laws and hold negligent employers accountable for disregard of immigration laws and employing undocumented workers. Obama is likely to agree with past proposals requiring government contractors to use E-Verify and could extend the program if accuracy and funding issues are settled.

Minimum Wage - Obama has pledged to increase minimum wage and index it to inflation.

Time off - The Obama Administration wants to expand the Family and Medical Leave Act (FMLA) to cover smaller employers, those with 25 or more employees, and permit leave for more reasons. Obama and Congress are also considering paid FMLA leave, mandatory sick leave and flexible work arrangements.

President signs mental health parity into law

A new law included in the economic bailout bill President Bush signed on Friday, will ensure more than one-third of Americans better insurance coverage for mental health treatments.

The mental health care benefits parity legislation will require health care plans to provide equal coverage of mental and physical illness. In the past, insurers were able to set higher co-payments and deductibles and harsh limits on treatment for mental illness and addiction disorders.

According to Workforce Management:

For example, plans no longer will be allowed to limit the number of annual outpatient visits for treatment of mental disorders while not imposing a comparable limit on the number of outpatient visits for other medical problems.

While the plan changes would be extensive, the cost impact is expected to be modest. The Congressional Budget Office last year estimated that enactment of a similar bill would boost health insurance premiums by an average of about 0.2 percent a year.

A result of 12 years of advocacy, the new law is described as “a milestone in the quest for civil rights, an effort to end insurance discrimination and to reduce the stigma of mental illness,” according to The New York Times.

The law will be effective for most health care plans on January 1, 2010. Businesses with 50 or fewer employees are exempt.

Related post:

Mental Health Parity Bill passes House, on to negotiations

San Francisco court upholds universal health care plan

Earlier this week, federal judges ruled to uphold a health care ordinance giving San Francisco the right to make employers help pay part of the cost of the city’s universal health care plan.

“City officials and labor unions said the ruling establishes San Francisco as a model for state and local health coverage in the absence of a nationwide universal health plan,” according to the SFGate.

The city’s plan, called Healthy San Francisco, is the first of its kind in the nation and “could set the stage for a test of the supremacy of a longstanding federal labor law.”

Healthy San Francisco will help the city provide care for an estimated 73,000 uninsured residents, about 30,000 residents have already signed up.

Under the plan, companies with more than 20 employees that do not offer insurance to their workers must contribute $1.17 to $1.76 per employee per hour for health care.

Employers may choose to pay the money in a number of ways, including health care savings accounts, employer-provided insurance, employee reimbursement or contributing directly to Healthy San Francisco.

From The New York Times:

Mayor Gavin Newsom, a former restaurateur, said that his administration recognized that some extra expense was falling on businesses but that he was proud the city was a trailblazer.

“By thinking outside the box,” he said, “every city and state in this country can provide health care if they are willing to challenge the conventional wisdom.”

Some of San Francisco’s well-known restaurants have added small fees to bills, often with a note explaining that the charge goes to pay for health care.

Mr. Scherotter, who runs an Italian restaurant, adds such a fee. He said the law had added to his costs and his administrative workload. “It’s a lot of tedious arithmetic,” he said.

USERRA helps veterans get back to work

Earlier this month, the President announced the withdrawal of 8,000 troops from Iraq by next February and the deployment of others to Afghanistan.

With 8,000 troops expected to return to the U.S. by next year, employers need to be prepared and understand the details of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).   USERRA provides reemployment protection and other benefits for veterans and other employees who perform military service. The law applies to all employers, regardless of size and all service members, including those who volunteered to serve.

"Service members transitioning from the military today are some of the most educated, technically savvy, professionally qualified the armed forces have ever produced," says Willie Hensley, deputy assistant secretary for human resources management and labor relations for the U.S. Department of Veterans Affairs.

Many service members have received expert training in areas such as engineering, health care, information technology and security. Even with their qualifications, helping service members transition back into the workplace can be a difficult process.

For employers looking to hire veterans and advice for transitioning soldiers, visit sites including:

For more information on how USERRA protects the employment and benefit rights for employees who serve in the military and your responsibilities for accommodating disabled veterans visit GNeil.com and take a look at our E-Guide: When Soldiers Return to Work.

Commuter benefits a growing business trend

Recently the mayor of San Francisco signed an ordinance requiring employers to offer commuter benefits. The mandate was put in place in hopes of reducing San Francisco’s greenhouse-gas emissions by at least 20% by 2012

The new rule, believed to be the first of its kind, requires employers with more than 20 employees to offer at least one of three commuter benefit options:

Establish a program where employees could make pretax contributions to pay for public transportation expenses.
Employers could pay for employees’ transportation expenses, such as buying transit passes for employees.
Employers could provide transportation by setting up van pools for workers.

With more organizations working to reduce global warming, it’s predicted that more cities will follow San Francisco’s lead, especially those who have signed on to the U.S. Mayors Climate Protection Agreement (USCPA). Mayors in the USCPA have pledged to reduce global warming pollution in their cities by 7 percent below 1990 levels by 2012.

Commuting to and from work, lunch and running errands use 10 to 20 times more energy than any other factor contributing to your company’s carbon footprint. Supporting mass transit and allowing more employees to telecommute are just two ways employers can go green and reduce pollution.

Not only do commuter benefits help the environment, they also keep businesses productive. University studies have found that as gas prices drain employees’ wallets they also drain worker productivity. The money employees save by telecommuting full or part-time can improve productivity, job commitment and employee loyalty.

Keep workers less preoccupied with the high cost of gas and help the environment by offering commuter benefits. Whether through subsidized mass transit, telecommuting or pre-paid gas cards, every business can find a way to do their part for employees and the earth.

More sick employees reporting to work

Financial pressures are a big reason more sick employees are reporting to work, even if they have paid sick leave, according to a new poll of two presidential swing states.

National Public Radio, the Kaiser Family Foundation and Harvard School of Public Health compiled Heath Care and the Economy in Two Swing States: A Look at Ohio and Florida, examining how financial issues have affected citizens in the two presidential swing states. Soaring health care costs and medical bills have taken a bite out of family finances, forcing people to report to work even though they may be ill.

Of those surveyed, 44% of employees in Florida and 50% in Ohio go to work sick because they’re worried about the financial consequences went to work sick.

“The general level of economic anxiety that workers have today, I think, is evident in these polls, and employers might want to be cognizant of their workforce being very worried about paying their bills,” Kaiser’s vice president of public opinion and survey research Maryann Brodie told SHRM Online.

The data, she added, “should make everyone pause and think how this economy and economic anxiety are affecting the people around them and the people who are working for them.”

Hot workplace legislation on the move this summer

Last week, Congress members returned to Washington for the final legislative push before a month-long recess beginning August 9.

With the Democratic and Republican presidential conventions scheduled for late August and early September, Congress members look forward to returning to their home states to campaign.

The next few weeks, while legislators remain on Capitol Hill, are one of the last opportunities for Congress to make significant progress on important workplace legislation in 2008.

Congress is expected to vote on a list of critical workplace issues during the next five weeks, including:

Amendments to the Americans with Disabilities Act (ADA)
Proposed extension (or replacement) of the E-Verify employment verification program
The Employment Non-Discrimination Act, which creates federal protections against workplace discrimination based on sexual orientation
The Healthy Families Act, which requires certain U.S. employers to offer paid sick leave as an employee benefit.

We will continue following all of the latest headlines, so check back regularly over the next few weeks for news on workplace legislation that may affect your business.

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