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COBRA Alert – Take Steps Now

Posted February 28th, 2009 by Harold Ford, in HR Related News

The American Recovery and Reinvestment Act of 2009 (ARRA), the financial stimulus law signed by President Barack Obama on Feb. 17, 2009, includes significant changes to the COBRA continuation coverage rules. (Read more at the Department of Labor).

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Here are the main points to the ARRA that you need to be aware of:

  1. Workers who became jobless as early from Sept. 1, 2008 to December 31, 2009 are eligible to receive benefits under the law.
  2. If a worker rejected COBRA coverage after Sept. 1, 2008, they can reconsider now.
  3. Taxpayers with modified adjusted gross income exceeding $145,000, or $290,000 for those filing joint returns, do not qualify for the subsidy.
  4. COBRA continuation coverage premiums will get a 65% federal government subsidy.
  5. Employers will pay the 65% upfront, and then deduct these costs from Social Security and Medicare taxes. (IRS Tax Refund FAQ).
  6. The subsidies will be paid for a maximum of nine months.
  7. Subsidies begin March 1, 2009.

WHAT YOU NEED TO DO:

Plan administrators of group health care plans subject to COBRA need to act quickly to:

  • Implement administrative procedures necessary to provide the subsidy.
  • Provide notices required by the ARRA to COBRA qualified beneficiaries who are eligible for the subsidy.
  • Implement the extended COBRA coverage periods.
  • In addition, group health plan documents will need to be amended to incorporate these changes.
  • Employers (or insurers, if applicable) will be required to file three types of reports relating to the subsidy.

1. Attest that each employee receiving the subsidy was involuntarily terminated.

2. File an accounting to report the payroll tax credit taken for the reporting period and the estimated credits to be taken during the following reporting period.

3. File a report of all covered employees, the amount of subsidy treated as a payroll tax credit for each employee and a designation as to whether the subsidy is for coverage of one individual or two or more individuals.

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What Stimulus Means to HR

Posted February 20th, 2009 by Harold Ford, in HR Related News, Relevant Sites

The stimulus package that President Obama recently signed into law has some direct and lasting effects on Human Resources. SHRM did a terrific job of outlining the major points of the American Recovery and Reinvestment Act of 2009, and we wanted to share those HR-related items with you.

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Extending Unemployment and Health Coverage

  • A nine-month extension of a program that offers an additional seven weeks of unemployment benefits. Benefits would be increased by $25 per week.
  • A seven-week extension of jobless benefits, which provides unemployed workers up to 33 weeks of benefits, was extended to December 31. The proposal would exempt the first $2,400 of unemployment benefits from federal income taxes.
  • The plan will appropriate $20 billion to offer health insurance coverage to the unemployed under COBRA. The coverage features a 65 percent subsidy of the health insurance premiums for up to nine months for laid-off workers who qualify for the program.

Health Care Technology

  • $19 billion to improve the nation’s health care information technology systems to reduce errors and streamline administrative processes.

Trade Protection for Jobs

  • Extend Trade Adjustment Assistance benefits for workers who lose their jobs because of increased imports or because employers move those jobs offshore.

E-Verify

  • The House and Senate negotiators removed all provisions that refer to the government’s electronic employment verification system-known as E-Verify.
  • Require that businesses that receive funding under the government’s Troubled Asset Relief Program (TARP) hire laid-off U.S. workers or show good cause before recruiting and hiring workers from overseas under the H-1B visa program for highly skilled workers.

Executive Compensation

  • Place limits on the compensation packages that businesses receiving TARP funds can offer to their executive teams.

For more information on the Act, visit SHRM or the Recovery Act website.

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HRMG offers suggestions of how to do more with your Sage Abra software

Posted February 16th, 2009 by Ted Morse, in HRMG Solutions news, Sage Abra HRMS

HRMG Solutions has begun a series of monthly webcasts that are designed to expose Sage Abra users to fresh ideas on how to better use their Abra software. Each month, keep an eye out for these webcasts and attend them if you feel they will help you do more with your Abra system.

This month’s webcast will be presented by an Alliance Partner or ours, Perryman Associates from sunny Florida. They will be reviewing their performance appraisal management system (PAM) and how it can help you leverage the information that you already have in Abra to automate the performance appraisal process.

Here is the link to register for this, our first webcast on how to better use your Abra system. The webcast is on Friday, February 20th from 2-3p.m. with time at the end for questions. Enjoy!

http://www1.gotomeeting.com/register/755341129

PS: We are always open to suggestions for the content of future webcacts. Please comment back on topics of interest to you that you would like us to consider. We will do our best to find interesting material and presenters on these topics!

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Employee Free Choice Act – SHRM Position

Posted February 6th, 2009 by Harold Ford, in HR Related News

Federal Legislative Action Alert!

YOUR ASSISTANCE IS NEEDED! The time is now to share the HR perspective on the Employee Free Choice Act (EFCA)!

In virtually all cases, this legislation would take away the privacy and secret ballot voting rights of American employees in choosing whether they want to be represented by a union in the workplace.

If enacted, the Employee Free Choice Act would:

  • Eliminate employees’ right to vote in a Federal government-administered, private ballot election
  • Require binding arbitration within 120 days after a union is certified through a signed card collection process if the employer and the union are unable to reach an agreement
  • Restrict an employer’s ability to communicate to employees about the workplace issues involved in the union organizing drive
  • Create new fines against employers for an expanded list of unfair labor practices

SHRM has been actively engaged in opposing the EFCA in Congress for years.  Please use HR Voice to send a letter to your House representative and both of your senators and urge them to OPPOSE the Employee Free Choice Act.

Background

The National Labor Relations Act (NLRA) establishes two primary ways that employees are able to form or join a union:

  1. Private ballot election administered by the National Labor Relations Board (the Board). An election is initiated after a union has collected and submitted to the Board at least thirty percent of workers’ signed authorization cards. The Board certifies the union as the bargaining representative if a majority of employees voted in favor of the union, or,
  2. Collection of signed authorization cards (known as the “card check” process, which is similar to signing a petition in favor of a union) from a majority of employees in a bargaining unit. A union submits the cards to the Board, and the Board subsequently recognizes that union as the sole bargaining agent on behalf of the relevant employees.

Employers usually select the first process and initiate an election for their employees because it is a superior format that best ensures employee privacy. The “card check” process, conversely, forces employees to make their union views known in public. Thus, card checks are most likely to expose employees to inappropriate coercion.

Legislation

The Employee Free Choice Act, sponsored by Representative George Miller (D-CA) and Senator Edward Kennedy (D-MA), would amend the NLRA to allow unions to use the “card check” process each time they try to organize workers. The proposed measure would effectively eliminate the private ballot election during union organizing campaigns by requiring the Board to certify any union that secures a simple majority of signatures through the card check process.

Furthermore, once a union is certified through card checks, the EFCA would lead to binding arbitration on a two-year contract after only 120 days. The bill would direct the Federal Mediation and Conciliation Service to refer management-labor disputes on first contracts to an arbitration board after 90 days of collective bargaining and 30 days of mediation.

SHRM’s Position


SHRM believes in the fundamental right of every employee to make his or her own choice on union representation. For this reason, SHRM aggressively opposes the Employee Free Choice Act because it would take away the right of employees to a federally supervised, private ballot in union elections.

Furthermore, SHRM opposes these specific aspects of the bill:

  • Circumvention of Private Ballot Election—The bill would force employees to make their important decision on whether or not to support a union in public—potentially in front of their co-workers, union organizers and others who have a stake in the organizing process. SHRM strongly believes the secret ballot election process is the best way to ascertain a worker’s true view on union representation. By eliminating the private ballot, SHRM believes the bill would actually take away an employee’s private and “free choice,” expose employees to coercion and promote a threatening work environment for employees.
  • Binding Arbitration on First Contracts—The bill would end bargaining negotiations after only 120 days—90 days of negotiations and 30 days of mediation—and force a two-year contract on both the employer and employees. SHRM believes that mandatory binding arbitration provides motivation for either a union or employer to engage in bad faith bargaining until the end of the negotiating period. Finally, the EFCA would lead to an arbitrator to impose unwanted employment conditions on both employees and management.
  • One-sided penalties—The bill would establish additional penalties, including back pay plus liquidated damages, on employers that discriminate against employees during organizing drives. The bill creates no new penalties for labor organizations that engage in coercive conduct during organizing campaigns.

Action Needed

Write or call your elected officials in Washington today! Your congressional representatives need the benefit of your expertise and your viewpoint on the Employee Free Choice Act before the private rights of employees are changed.

To write your elected official using HRVoice, follow these steps:

  • Log onto HR Voice by clicking HERE and enter your member number and last name.
  • Under the heading “Take Immediate Action on these Hot Issues,” click on: “OPPOSE the Employee Free Choice Act
  • Feel free to personalize your letters by including specific information about the organization you work for, your experiences in the workplace, and why this legislation would negatively impact your organization. Just place your cursor on the text of the letter where you would like to edit.

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