HR Forum: health care

Showing posts with label health care. Show all posts

Proposed bill takes aim at 20-year minimum wage for tipped workers

For the past 20 years, the minimum wage for tipped employees has remained at $2.13 per hour.

Congresswoman Donna Edwards of Maryland hopes to change that. She recently introduced a bill (H.R. 631) that would increase the minimum wage for employees who live off tips to $3.75 an hour, eventually reaching $5.50 an hour. The bill is currently under review by the House Committee on Education.

A recent report, “Behind the Kitchen Door: Inequality & Opportunity in Washington, D.C.’s Thriving Restaurant Industry,” revealed that restaurant workers made, on average, $22,218 in 2009. In addition, nearly 90 percent of the workers reported that their employers did not offer health insurance.

Are you dishing the right details about dependent eligibility?

With all the confusion surrounding the dependent coverage rules under the health care reform bill, we’d like to take a moment to provide some clarity.

First things first: The definition of an eligible dependent is a biological or legally adopted child up to age 26, even if married.

Just as important, you must comply with the new eligibility rules if your plan year begins on or just after September 23.

Some of the eligibility rules to keep in mind:

=> Dependents don’t need to be enrolled in school or be financially dependent on their parents
=> The spouses or children of adult dependents aren’t eligible for coverage
=> You must invite all dependents back during your company’s enrollment period – including those previously dropped or whose parents opted out of your plan

As you might imagine, a change like this requires some targeted communication on your part. This means reviewing and updating all your company’s printed and electronic information (such as enrollment materials and benefits-related websites) to include the new dependent definition and eligibility guidelines.

Automatic health care enrollment kicks in for large employers

Under the Patient Protection and Affordable Care Act, employers with more than 200 full-time employees must automatically enroll new employees in one of their health benefit plans and continue the enrollment of current employees.

Keep in mind, however, that the automatic enrollment provision needs to include ample notice – and a chance for an employee to opt out of the coverage and choose another option (or opt out altogether). Automatic enrollment may be subject to a legal waiting period, too.

Like with auto-enrollment in 401(k)-type plans, this change is expected to increase participation in employer-sponsored health care plans and ensure coverage for more Americans.

Check back here for future updates on this and other health care reform requirements.

Wellness investment yields better than 1:1 return

For companies to commit financially to anything these days, executives first need to know that the return on investment (ROI) is worth getting involved. Even internal investments such as employee wellness programs, which have lacked hard ROI data in the past, must prove that they’re a sound investment.

If you’re one of those searching for wellness program ROI data, you’ll be happy to hear that recent research suggests companies that invest in employee wellness get their investment back, and then some.

A survey of 225 employers by Health2 Resources revealed that 73% of companies successfully measured the ROI of wellness programs. Of those that measured ROI, 83% said their programs had a return of better than 1:1 on their investment.

"Employers are becoming more sophisticated about measuring the return on investment from wellness and disease management programs, and today's economic outlook dictates that these programs bring a positive ROI," said Sean Sullivan, president and CEO of the Institute for Health and Productivity Management.

"No other kind of health management program has been given the same scrutiny as health and productivity management in measuring its effectiveness in reducing total health-related costs, including sick days, disability claims and impaired performance at work. Employees are too valuable a human capital investment for companies to take their health and productivity for granted."

The survey also found that most employers with and without wellness programs in place believe that paying employees to participate boosts program success and return value. An estimated two out of three U.S. companies offer programs dedicated to employee health, and 66% of those with programs also use incentives.

Other key findings:

The most commonly used incentives are premium reductions followed by merchandise/tokens and gift cards.
Smoking cessation programs are the most popular health and wellness program to offer, with weight management and physical activity programs a close second.
Some organizations with as few as 210 employees are offering incentives valued at $1,450 per year to keep employees healthy.
Diabetes programs are the most popular disease management program offered in 2009.

Does your company offer any health and wellness programs for employees? What kind of incentives, if any, are promoted to get employees involved? Have they seen a positive ROI?

Please leave a comment and let us know about your company’s experience with wellness programs.

Develop a worksite obesity prevention program with new, free CDC tool

As a follow-up to our Monday post on how a lack of healthy snacks in the office are putting workers’ waistlines to the test, I wanted to share a new resource for businesses wanting to enhance their wellness program this year.

Yesterday, Ann Bares at Compensation Force spotlighted LEAN Works, a new online resource to help employers determine how much obesity costs their business each year.

LEAN Works is a new web-based resource developed by the Centers for Disease Control & Prevention (CDC) full of completely free interactive tools and evidence-based resources to help any organization develop an effective worksite obesity prevention and control program.

The site features an obesity cost calculator to estimate how much obesity is costing your company and how much you could save by using different workplace interventions.

LEAN Works also includes example presentations to help pitch your wellness program within your organization, tools to help collect employees’ baseline health information, workplace health audits and employee interest surveys.

Visit the CDC’s LEAN Works! Leading Employees to Activity and Nutrition.

Limited healthy snack options test workers’ waistlines

Our days are busy, breaks are short and fitting a well-balanced meal in at work can be a tough job. For many of us, eating at work is typically done on the go and we’ve memorized our favorite vending machine combination that will curb our hunger or give us a quick, sugary boost.

Snacking at work is almost a fact of life. It’s going to happen, but unfortunately the most popular snacks at work tend to be unhealthy – full of sugar, fat, salt and oil.

Even for those watching their waistlines, unhealthy office snacks can derail even the strictest diet, according to a recent survey on workplace eating habits.

About two out of three employees find it challenging to eat healthy at work, reveals the Peapod Biz Bites Survey sponsored by Peapod Business Delivery. Only 7% of respondents claimed to eat healthier in the office than at home.

"One of the best ways to support healthy lifestyles in the workplace is also one of the easiest," said Cathy Leman, a Chicago-area registered dietitian and certified personal trainer. "When you control the environment that you spend eight-plus hours per day in, you automatically set yourself up for success. That means stocking the break room with healthy, accessible snack foods.” (Press release)

Almost half of employees (47%) surveyed cite having too many tempting unhealthy snack options at work as the top reason they’re not eating healthy at work. Less than one-third (28%) of employees said their workplaces offer enough healthy snack options to keep them satisfied.

What employees want most in the office – fresh produce. However, only 36% of companies provide fresh fruit and vegetables for their employees on a regular basis.

Top nutritionists at WebMD warn against “desktop dining” and unhealthy snacking habits because they hold potentially disastrous health effects. Nutritionists advise putting aside work if possible and take a few minutes to enjoy your food and choose healthy workplace snacks.

“Katherine Tallmadge, a registered dietitian and spokeswoman for the American Dietetic Association, tells her clients to snack up to three times a day but to limit calories to 100-200 calories for each snack.

"I like to recommend snacks that provide a little carbohydrate, protein, and a small amount of fat, if any," she says. (WebMD)

Tallmadge suggests creating a snacking strategy and to have a plan. Keep healthy snack foods at your desk for times when you need a nutritional boost, but may not have the time to eat a full meal.

Keep some of these healthy snack foods handy:

Trail mix and/or dried fruit and nuts
Instant oatmeal packets (low sugar)
Tuna salad kits
Higher-fiber, lower-fat crackers
Low-fat yogurt
Reduced-fat cheese

How do you ensure you’re snacking healthy at work? Does your office provide fresh produce or healthy vending machine snacks? Leave a comment and let us know how well you’re able to snack healthy in your workplace.

Employers brace for 2010 healthcare cost hike

It’s estimated that U.S. employers will see a 9 percent jump in healthcare costs in 2010 and workers will be footing more of the bill, according to an annual trend report by PricewaterhouseCoopers (PwC).

The annual medical costs trends report also revealed that workers are more likely to utilize their health insurance coverage out of fear that they will loose their jobs. More uninsured and underinsured people are expected to turn to Medicaid for health coverage.

The rise in healthcare costs may be offset partially by cost declines associated with U.S. health care reforms and the potential for high deductible health plans and wellness programs, according to PwC.

Of the 500 employers surveyed by PwC:   

42% plan to increase their workers’ share of healthcare costs in 2010, and
41% said they would change the design of health care plans to increase medical cost sharing.

The study comes at a time when new health-reform legislation is heating up congressional hearings. President Obama has pledged to push his plans to revamp health-care regulation through Congress and Senate hearings this summer. Before anything is approved, it will be up to employers to manage rising costs.

"Employers are squeezing dollars out of their programs to save money," Mike Thompson, principal at PricewaterhouseCoopers global human resource solutions group, said in a statement.

"As the economy recovers, employers will refocus on more sustainable longer term approaches to medical cost containment based on an increasingly shared interest between employers and their workers." (Reuters)

What is your company doing to offset the rise in healthcare costs? Please leave a comment and let us know.

Are you prepared to handle flu-related HR issues?

As the World Health Organization (WHO) raises the alert level of the H1N1 flu virus (aka. swine flu), employers’ concern over how an outbreak could affect their businesses has seemingly tapered off.

The WHO officially declared the H1N1 flu virus a pandemic on Thursday by raising the threat level of the virus to Phase 6. The pandemic status of the virus doesn’t mean that it is more dangerous, but that it has infected people in more countries. The Phase 6 threat level means community-level outbreaks have hit more than one continent.

News coverage surrounding swine flu has calmed down and so seems employers’ concern regarding any danger the illness may pose to their organizations. Approximately two in five employers (41%) do not have a human resources policy in place for health-related emergencies, although they have employees working in areas with confirmed swine flu (or Influenza A) cases, according to a survey by Mercer.

“With the continued increase of reported cases of Influenza A [swine flu], it is important for employers to develop a plan for dealing with the myriad HR issues that can arise in the event of a pandemic or other health care emergency,” said Danielle Dorling, a consultant in Mercer’s HR effectiveness consulting business. “In particular, organizations with a global workforce and decentralized HR units need to have a coherent procedure in place for employee care in the event of a health emergency.” (Mercer press release)

Among the key survey findings:

53% of the employers surveyed were considering whether to create back-up and contingency plans in response to the outbreak
43% said they planned to restrict or cancel business travel
41% said they planned to allow employees to work at home
27% opted for voluntary quarantine for employees exposed to risk
24% enforced quarantine on employees judged at risk
24% indicated they were taking no special actions.

Employers also said they would cancel meetings, screen staff members returning from travel, require medical check-ups and review health or insurance plans as a result of the recent swine flu outbreak.

“Business continuity plans should be standardized and employers must be able to communicate in a streamlined, swift and decisive fashion,” Dorling said. “Ad-hoc reaction can lead to confusion, unnecessary panic and expensive global inconsistencies that can expose the organization to significant financial risk.”

In April, Secretary of Homeland Security Janet Napolitano asked private employers to do their part in helping the federal government protect workers from the illness, saying that employers should be thinking ahead about what they would do if affected by swine flu or other contagious diseases.

Before you create policies and procedures regarding the spread of viral infections in your workplace, there are a few legal and ethical issues to consider. Employers should know the rights of exposed employees, if they can order employees to go home and how the Americans with Disabilities Act could come into play, among a list of other important questions.

G.Neil’s free “Flu in the Workplace” white paper explains the answers to those questions along with information on how to protect your employees and business from serious contagious diseases.

IRS answers more pressing COBRA questions

If you’re an employer struggling with COBRA questions, the Internal Revenue Service (IRS) has published added guidance on the federal premium subsidy to help answer some of the most common issues.

The new COBRA regulations, which were part of President Obama’s American Recovery and Reinvestment Act of 2009, contain specific changes to COBRA health benefit requirements that affect former employees, their employers and COBRA coverage providers.

Under the subsidy, involuntarily terminated employees must pay 35 percent of the COBRA premium and employers must front the money for the remaining 65 percent. After paying insurers directly, employers can then claim the payment as an offset against payroll tax liabilities using the updated Form 941.

The IRS published information earlier this year to answer major questions from the public regarding eligibility for the COBRA subsidy. Information has been added to the question-and-answer style document as new questions develop.

Last week, the IRS updated the online document with additional information including guidance on whether an employee who is a reservist would be eligible for the subsidy if called to active duty.

Q. Does an involuntary termination of employment occur if a member of a military Reserve unit or the National Guard who is employed by a civilian employer is called to active duty?

A. Yes. This is the case regardless of whether the civilian employer otherwise treats the employee’s absence as a termination of employment or a leave of absence.

The IRS also added information in response to questions regarding elected officials and employees hired for a limited period of time.

Q. In the case of an employee who is hired only for a limited period, such as a seasonal worker, or a teacher hired only for one school year, can the end of employment at the end of the period be considered an involuntary termination?

A. Yes. Under Notice 2009-27, Q&A-1, an involuntary termination may include the employer’s failure to renew a contract at the time the contract expires, if the employee was willing and able to execute a new contract providing terms and conditions similar to those in the expiring contract and to continue providing the services. Thus, if an employee hired for a limited period works to the end of the period, is willing and able to continue employment, and terminates employment because of the failure of the employer to offer additional work, an involuntary termination occurs for purposes of the premium subsidy.

For more answers to questions on COBRA continuation health coverage read the IRS FAQs for employers.

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.

Wellness programs stay strong despite recession

Despite the recession, companies continue to add wellness and health-management programs to reduce costs while encouraging employees to improve their physical health.

The latest Watson Wyatt/National Business Group on Health survey discovered that companies are still adopting employee wellness programs. The survey results also revealed that many companies improved employee participation rates by offering workers financial incentives.

Survey results show how companies increased the availability of various wellness programs:

58% of companies offer lifestyle improvement programs, up from 43% in 2007
56% offer health coaches, up from 44% in 2007
52% offer weight-management programs, up from 42% in 2007
80% offer health-risk appraisals, up from 72% in 2007

Companies that encouraged employees to participate in wellness programs by offering financial incentives reported significantly higher participation rates, according to survey results. Only 40% of companies reported that less than 5% of their workforce participated in weight-management programs.

"Employers continue to see gains from promoting wellness and health management initiatives," said Scott Keyes, senior group and health-care consultant at Watson Wyatt. "Effective financial incentives are one of the keys to encouraging worker participation in these programs — an effort that not only improves the health of workers but also helps reduce costs."

The survey also found that motivating employees with financial incentives significantly increased participation rates. Currently, 61% of employers offer incentives for health-risk appraisals and many employers are also offering incentives for smoking cessation and weight management programs.

Using financial incentives between $51 and $100 have been successful in encouraging employees to participate in smoking cessation programs, weight-management programs, and encourage employees to receive biometric screenings, according to the results.

"The relationship between the amount of the incentive and the level of program participation among employees is strong," said Sherri Potter, senior group and health-care consultant at Watson Wyatt. "A properly structured incentive program does much more than protect investments in health management; it creates a healthier and more productive workforce."

For more information on employee wellness programs and employee health, read these past posts:

Obesity linked to more expensive workers’ comp claims

HR survey reveals top green business practices

New research suggests exercise makes you smarter

Economic stress impacts employee health, productivity

How to beat stress in the workplace

Employees hit the road for National Start! Walking Day, tomorrow April 8

Thousands of Americans will bring along a pair of sneakers to work tomorrow and embark on a new journey to fitness that starts with one 30-minute walk.

The initiative is part of the American Heart Association’s National Start! Walking Day, a nation-wide effort to get more people of all physical ability levels on the path to wellness.

The American Heart Association chose walking as the main activity in their program because it’s the most accessible, affordable and successful of any type of exercise routine.

"With over 66 percent of Americans considered overweight and obese and nearly 70 percent of the population not engaging in regular light to moderate physical activity five times a week or vigorous activity three or more times per week, we realized there was a dire need to incorporate more walking into people's daily routines," said Timothy Gardner, M.D., American Heart Association president. "Just a few extra steps each day is a simple and easy way to take an active role in maintaining a significantly healthier life."

Research has proven that walking programs have the lowest dropout rate of any physical activity and are the most effective method to get employees to exercise during the workday without hurting productivity, according the the American College of Sports Medicine.

“It’s good business to have physically fit workers,” says David Josserand, executive vice president and chief strategic officer of The Dalton Agency in Jacksonville, Fla., and 2008-2009 national chairman for the American Heart Association.

“A recent four-year sutdy reported in the Journal of Occupational and Environmentla Medicine found that employers can save $1.65 in healthcare expenses for every dollar they invest in fitness programs. Reducing just one health risk in a workplace can increase productivity by 9%,” Josserand said in a Forbes magazine article (pdf).

In addition to healthcare savings, studies also suggest that implementing a workplace physical activity program can help companies reduce absenteeism and lower turnover rates.

Businesses can register for the Start! Fit-Friendly Companies Recognition Program, which recognizes employers who advocate the health of their employees and work to create a culture of physical activity in the workplace. Nearly 1,000 companies were designated Fit-Friendly since the program was launched in 2007.

Participants in the Start! Fit-Friendly Companies Recognition Program are given free access to program resources, including materials to promote employee wellness programs, internal newsletter templates and consultation on CPR/AED programs.

Encourage employees to wear their sneakers to work tomorrow and take a 30-minute walk outside. Even if you can't pull things together to get started tomorrow, set a date in the near future and put your company on the road to wellness.

You can find free, downloadable walking plans and a list of walking paths in various cities at startwalkingnow.org.

Related posts:

Obesity linked to more expensive workers’ comp claims

Economic stress impacts employee health, productivity

Employee wellness best practices: Offset the rise in health care costs

Rising health care costs motivate employee wellness programs

DOL issues model COBRA notices for employers

Late last week the Department of Labor (DOL) issued four model notices that employers can use to explain federal premium subsidies available under COBRA.

As part of the economic stimulus plan President Obama signed into law in February, employees who were involuntarily terminated between September 1, 2008, and December 31, 2009, are eligible to retain their group health coverage for a period of up to nine months by paying a portion of the COBRA premium.

Involuntarily terminated employees must pay 35 percent of the COBRA premium and employers must front the money for the remaining 65 percent. Employers will pay the insurer directly, then claim it as an offset against payroll tax liabilities. Payroll will then report any subsidies and take the offset on an updated Form 941.

"Our action today gives workers and their families useful information on their right to receive the COBRA subsidy and makes it easier for employers and plans to meet their notice obligations. Given the current economic situation facing dislocated workers and their families, it is very important that individuals do not lose their group health coverage," said Alan D. Lebowitz, deputy assistant secretary of labor for the department's Employee Benefits Security Administration (EBSA).

Employers can send the DOL’s model notices to COBRA beneficiaries advising them of the subsidy and how they can enroll for coverage.

Designed to fit different situations, the four COBRA model notices include:

A general or “full” notice to be given to beneficiaries who lost group coverage between September 1, 2008, and December 31, 2009.
An abbreviated general notice that would be for beneficiaries who are currently receiving unsubsidized COBRA.
An alternative notice explains the right of individuals working in states with continuation coverage laws, or “mini-COBRA” laws, which apply to employers with fewer than 20 employees.
A notice of extended election periods for eligible individuals who lost their jobs before the stimulus plan was signed into law, between September 1, 2008 and February 16, 2009, and declined or discontinued COBRA coverage at the time.

Each package includes information of the premium reduction provisions, a series of questions and answers, and which forms to use in requesting the premium reduction or COBRA coverage.

More information on the COBRA subsidy:

Obesity linked to more expensive workers’ comp claims

Data released earlier this month indicates that obesity is having an increasingly larger impact on workers’ compensation claims and workplace safety efforts.

Workers’ comp medical claims involving obese claimants open for one year can be up to three times as costly than those involving healthier employees, according to preliminary findings released by the National Council on Compensation Insurance (NCCI).

Claims that remain open for five years can be five times as expensive and the extra treatments related to obesity involved in some “smaller claims” can exceed almost 30 times the cost of treating a non-obese individual, according to NCCI.

Studies have shown that along with obesity, the heath care costs associated with employees who smoke and with conditions such as diabetes and high blood pressure can be significantly higher than healthy employees.

In addition to mounting health care costs, the cost of work-related injuries in the U.S. totals more than $50 billion a year. Though the costs are high, a growing number of business have been taking their chances with employee safety by cutting vital OSHA safety training out of the budget in the wake of the recession.

The combination of unhealthy employees and more businesses cutting safety training corners has the potential to add even more financial stress to organizations that are already feeling the pressure.

Employers can take a comprehensive approach to combating both rising health care costs and more expensive workers’ comp claims by promoting the importance of employee wellness and workplace safety.

Employer-sponsored wellness programs can help employees take that first step to improving their health. Find a gym to partner with that can give you a good deal on memberships for employees or bring health specialists in-house to train employees on the benefits of wellness.

As the economy continues to challenge businesses, more are searching for inexpensive safety training methods to save money and limit the number of workplace injuries that can lead to costly workers’ compensation claims.

G.Neil is meeting that challenge with new products that make employee safety training and OSHA compliance easier and affordable. With the right tools, it’s possible to keep workers safe and healthy without jeopardizing your budget.

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.

Cash incentives help employees quit smoking

Smokers are more likely to quit if they are offered a cash incentive, according to a new study offering the strongest evidence tying monetary rewards to behavioral changes.

The study, led by a team from the University of Pennsylvania and published by the New England Journal of Medicine, is one of the largest of its kind.

Researchers tracked 878 General Electric Co. employees from across the U.S. for 18 months in 2005 and 2006. Each employee involved in the study smoked an average of one pack of cigarettes a day. They were divided into two groups and all received information regarding smoking-cessation programs.

Members of one group received cash incentives for completing each step of the program: $100 for finishing a smoking-cessation course, $250 if they quit smoking within six months, and $400 for continuing to not smoke for another six months.

Almost 15% of the group who were offered money to stop smoking had quit within the first year of the study, only 5% of the other group had done the same. At the end of the 18-month study, 9% of the paid group was still not smoking compared to only about 4% of the non-paid group.

From the Wall Street Journal article:

Loretta Massie-Eaton, a 53-year-old administrative assistant who works for GE in Atlanta, said encouragement from her 14-year-old son, Harrison, was the main reason she decided to participate. But money was also a motivation, she said. "It was the satisfaction of sticking to the commitment and getting reimbursed for doing it," said Ms. Massie-Eaton, who says she hasn't had a cigarette since taking part in the study more than two years ago.

Ric Barton, a GE lighting specialist from Cleveland, said he had been thinking about quitting before the study. A smoker for four decades, the 62-year-old said finding places to light up had become increasingly difficult and he was tired of rising cigarette prices. "It was icing for me to get a monetary reward for something I was already planning to do," Mr. Barton said.

Statistics show that helping employees quit smoking is worth the investment for companies. Smoking costs employers $3,400 per smoking employee per year in health-care bills, reduced productivity and absenteeism, according to the Centers for Disease Control and Prevention (CDC).

Researchers not involved in the study commented that the latest findings show that incentives work and give employers hard evidence that incentive programs can help companies save money on employee health-care costs.

“You’d prefer not to pay them, but it’s worth it,” said Helen Darling, president of the National Business Group on Health professional organization.

Related posts:

Help employees quit smoking, participate in the Great American Smokeout

Workplace smoking policies: When employees lie

New research suggests exercise makes you smarter

We know that regular exercise can help the human body ward off a slew of physical ailments including heart disease, obesity, certain types of cancer, diabetes and hypertension. Now, along with the benefits to our bodies, new studies show that exercise can be just as beneficial to our brains.

Until recently, the only link scientists had to connect exercise and brain function was the fact that aerobic activity increases the amount of oxygen flowing to the brain and nourishes brain cells. A recent study is suggesting that exercise helps brain cells form new connections, increasing the brain’s capacity for knowledge, according to an article at HRGuru.

Neurologist Scott Small from the Columbia University Medical Center and Fred Gage of the Salk Institute co-authored the study that illustrates how exercise could improve our ability to learn and develop.

Here’s a breakdown of what happens to your brain as you exercise:

As you exercise, your muscles contract.
This releases chemicals, including a protein called IGF-1.
IGF-1 travels to the brain and stimulates the release of several chemicals, including brain derived neurotropic factor (BDNF).
Regular exercise increases levels of BDNF.
BDNF stimulates neurons (brain cells) to branch and connect in new ways.
New junctions between neurons are the basis of learning.

“Bodies that exercise regularly stimulate brains to have higher levels of BDNF; brains with higher levels of BDNF have greater capacity for knowledge,” explains author Kristin Wehner, “Healthy & Wealthy” columnist at Entrepreneur.com.

If you’ve been looking for more reasons to encourage employees to start exercising, you can now add knowledge to the list. It may involve a small investment, but promoting exercise with an employee wellness program will pay itself back in reduced health care costs, a boost in productivity, and an even smarter workforce than what you have now.

New FMLA regulations, what employers need to know

The U.S. Department of Labor released the final regulations under the Family and Medical Leave Act (FMLA), clarifying employer and employee rights under the law. The new FMLA regulations were published in the Federal Register on November 17, 2008 and will take effect on January 16, 2009. New forms and posters reflecting the latest changes will be required for employers subject to the FMLA.

This is the first set of revisions to the FMLA regulations since its enactment in 1993 and will affect all employers that must adhere to FMLA guidelines. The final rule helps workers and employers better understand their responsibilities and will speed the implementation of a new law that expands FMLA coverage for military families.

"This final rule, for the first time, gives America's military families special job-protected leave rights to care for brave service men and women who are wounded or injured, and also helps families of members of the National Guard and Reserves manage their affairs when their service member is called up for active duty," said U.S. Secretary of Labor Elaine L. Chao in a recent press release. "At the same time, the final rule provides needed clarity about general FMLA rights and obligations for both workers and employers."

The final rule includes two notable benefits for some military families:

Military Caregiver Leave: Expands FMLA protections for family members caring for a covered service member with a serious injury or illness incurred in the line of duty on active duty. These family members are able to take up to 26 workweeks of leave in a 12-month period.

Leave for Qualifying Exigencies for Families of National Guard and Reserves: The law allows families of National Guard and Reserve personnel on active duty to take FMLA job-protected leave to manage their affairs — "qualifying exigencies." The rule defines "qualifying exigencies" as: (1) short-notice deployment (2) military events and related activities (3) childcare and school activities (4) financial and legal arrangements (5) counseling (6) rest and recuperation (7) post-deployment activities and (8) additional activities where the employer and employee agree to the leave.

Additional highlights from the new FMLA regulations:

Waiver of Rights: The department has finalized its position that employees may voluntarily settle their FMLA claims without court or departmental approval. However, prospective waivers of FMLA rights will continue to be prohibited.

Serious Health Condition: The new rule clarifies that if an employee is taking leave involving more than three consecutive calendar days of incapacity plus two visits to a health care provider, the two visits must occur within 30 days of the period of incapacity. Additionally, it defines "periodic visits to a health care provider" for chronic serious health conditions as at least two visits per year.

Light Duty: Time spent in "light duty" work does not count against an employee's FMLA leave entitlement, and the employee retains the right to job restoration during the light duty period.

Employer Notice Obligations: The final rule clarifies and strengthens the employer notice requirements to employees in order that employers will better inform employees about their FMLA rights and obligations, and allow for a smoother exchange of information between employers and employees.

Employee Notice: Under the new regulations, employees must follow their employer’s normal call-in procedures when taking FMLA leave. Under current rules, employees may notify their employer up to two days after an absence on their need for FMLA leave.

Medical Certification Process: The final rule recognizes the Health Insurance Portability and Accountability Act (HIPAA) and its impact on medical privacy. Responding to concerns about medical privacy, the new provisions prohibit direct supervisors from obtaining employee medical information for FMLA certification.

View the final rule as it appears in the Federal Register, here.

New forms and posters will be required for employers subject to FMLA guidelines. G.Neil’s top legal experts are working to provide you with the information and resources needed to stay in full FMLA compliance.

As of today, our legal team is developing a new E-Guide to explain the new FMLA rules in plain English. Check back regularly for the most up-to-date information to help you understand and take action on the latest legal requirements that affect your business.

Read our new Q & A reviewing the latest Family and Medical Leave Act Changes.

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.

Help employees quit smoking, participate in the Great American Smokeout

November is Lung Cancer Awareness Month and Thursday, November 20, marks the 33rd Great American Smokeout, a day created to inspire and encourage smokers to quit for one day.

Almost 45% of the 45.3 million American smokers have attempted to quit smoking for at least one day in the past year, according to the American Cancer Society. For more than 30 years, the Great American Smokeout has proven to be a great opportunity to motivate smokers to make a long-term to quit for good.

Each year, only about 5% of smokers who quit succeed long-term and stress about the economy is having a clear and immediate effect on smokers, according to a recent survey sponsored by the American Legacy Foundation.

The survey found that smokers’ increased stress is causing smokers to delay a quit attempt, increase the number of cigarettes they are smoking, or switch to a cheaper brand instead of quitting. Additionally, former smokers reported that they are starting to smoke again because of financial stress.

Among the survey findings:

77% of smokers report increased stress levels due to the current state of the economy, two-thirds of those smokers say this stress has had an effect on their smoking.
One in four smokers stressed about the economy say this stress has caused them to smoke more cigarettes per day, higher among women (31%) than men (17%).
A greater percentage of middle-income ($35-74.9k) stressed smokers have delayed their quit attempts because of stress over the economy (20%) than those with household incomes of under $35k (14%).

“The best time to quit smoking is now,” according to the American Cancer Society. Use the upcoming Great American Smokeout to start a smoking cessation program, revisit your workplace smoking policy and encourage employees who smoke to set November 20 as their quit date.

The American Cancer Society has put together a Smokeout page as part of their Great American Health Challenge full of materials to help publicize smoking cessation in your workplace, press releases, local resources and guides to help employees quit smoking.

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