Week In Review

July 06, 2015

President Proposes Changes to Overtime Regulations
President Obama announced on June 30 that the Department of Labor will propose extending overtime pay. The proposal would guarantee overtime pay in 2016 to most salaried workers earning less than an estimated $50,440 ($970 per week). Currently, the salary threshold remains at $23,660 ($455 per week). When the DOL’s Notice of Proposed Rulemaking is published in the coming days, there will be opportunities to submit comments in writing. Comments will help the DOL determine what to include in a final rule next year.

As experts in DOL/Wage Hour compliance, SESCO provides the following services:
• On site compliance audits;
• Virtual Audits — DOL/Wage;
• Training Management on new rules; and
• Provide advice on alternative pay plans/options to ensure compliance while marinating labor costs

Employers Turn Focus to ACA Reporting Compliance
Under the ACA reporting rules, employers must file annual returns beginning in 2016 reporting what health insurance they offered employees; if self-insured, they also need to report certain information for each employee they cover. The IRS has provided three 2015 draft forms: (1) Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns; (2) Form 1095-C, Employer- Provided Health Insurance Offer and Coverage; and (3) Form 1095-B, Health Coverage. Employers with traditional insurance plans are only required to complete forms 1094 and 1095C.

Employers that sponsor self-insured plans are required to complete all three versions of the form or they can combine forms to cover all per IRS issued guidance. Any employer issuing more than 250 1094/1095 C forms is required to submit those electronically to the IRS.

Compliance details include:
• Employers with less than 50 employees- no coverage/no record keeping or reporting requirements
• Employers with 250 or more employees must submit electronically forms 1094-C and 1095-C.

SESCO has published a comprehensive ACA compliance guide- $55.00.
Call to place your order 423-764 4127
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Massachusetts Sick Leave Law Now In Effect
As of July 1, all employers in the state of Massachusetts with one or more employees will be required to provide sick leave. Employers with 11 or more employees are required to implement a sick time policy that allows an employee to accrue and use up to 40 hours of paid sick leave per year. Employers with less than 11 employees are required to provide unpaid sick time. Employees will earn one hour of sick time for every 30 hours worked, and would begin accruing those hours on the date of hire or on July 1, 2015, whichever is later. Employees can begin to use earned sick leave 90 days after hire. Employees can carry over up to 40 hours of unused sick time to the next calendar year, but could not use more than 40 hours in a calendar year. Employers do not have to pay employees for unused sick time at the end of their employment.

Complying with ADA when Employees Request Sick Leave
A Pennsylvania company has agreed to pay $15,000 and provide substantial injunctive relief to settle a disability discrimination case filed by the EEOC. The complaint asserted that the employer violated the ADA when it subjected employees to unlawful medical inquiries. Under the ADA, employers are prohibited from requiring employees to reveal the specific nature of their medical illness in order to deem the use of sick leave an excused absence.