EEOC Launches Small Business Task Force to Expand and Enhance Assistance to Small Businesses

Posted by admin on February 10, 2012  |   No Comments »

The U.S. Equal Employment Opportunity Commission (EEOC) has launched a new internal task force that will focus on expanding and improving outreach and technical assistance to small businesses. The Small Business Task Force will work to find ways in which the agency can better collaborate with the small business community to ensure compliance with federal anti-discrimination laws.

The Task Force will, among other things, develop recommendations on how to:

- Utilize new technology to expand outreach to small businesses;
- Develop technical assistance and training initiatives for small businesses;
- Identify specialized approaches to aid small businesses owned by women and minorities;
- Identify specialized approaches for micro businesses, generally those with 50 or fewer employees; and
- Enhance small business information and training on the EEOC’s web site.

The Small Business Task Force plans to focus on newly established small businesses and those that are too small to afford lawyers or human resource personnel.

Anti-Discrimination Laws Enforced by EEOC
The EEOC enforces federal laws prohibiting employment discrimination. The laws enforced by the EEOC apply to employers who meet the threshold number of employees for coverage.

- Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Genetic Information Nondiscrimination Act apply to employers who have at least 15 employees in 20 or more weeks of the calendar year.

- The Age Discrimination in Employment Act applies to employers with 20 or more employees.

- The Equal Pay Act does not contain a minimum number of employees for coverage.

- Additionally, employers with100 or more employees (50 if the employer is a government contractor) are required annually to file the EEO-1 Report, providing a breakdown of the workforce by race, sex, and national origin in nine broad job categories.

For information about the federal nondiscrimination laws enforced by the EEOC, you can contact the Commission’s small business liaisons or visit our section on Discrimination.

NLRB Postpones Effective Date of New Employee Rights Posting Rule to April 30

Posted by admin on February 6, 2012  |   No Comments »

The National Labor Relations Board (NLRB) has furtherpostponed the effective date of its employee rights notice-posting rule at the request of the federal court in Washington, DC hearing a legal challenge regarding the rule, in order to facilitate the resolution of the legal challenges that have been filed with respect to the rule. The new implementation date for the rule is April 30, 2012.

As a result of the most recent postponement, most private sector employers will be required to post the 11-by-17-inch notice beginning on April 30, 2012. The notice is available at no cost from the NLRB through its website, either bydownloading and printing or you may also fill out this form or call 202-273-0064 and copies will be mailed free of charge.

Additional Information
For further information about the jurisdiction and posting requirements for the new notice, please see the NLRB’sFrequently Asked Questions, which will be updated regularly as new questions arise. For questions that do not appear on the list, or to arrange for an NLRB presentation on the rule, employers may contact the agency at questions@nlrb.govor             866-667-NLRB      .

Our section on Federal Poster Requirements contains more information on this and other federal notices required to be displayed in the workplace.

Allowing Employees to Work “Off the Clock:” How to Avoid a Costly Mistake

Posted by admin on January 31, 2012  |   No Comments »

Did you know if your employees are putting in extra time outside of normal working hours, even though you haven’t requested it, you may be responsible for paying them for that time “off the clock”? Consider the following examples:

  • An employee voluntarily continues to work at the end of regular working hours to finish an assigned task or finish waiting on a customer.
  • An employee takes work home to complete in the evening or on weekends to meet a deadline.

If your employees are covered under the federal Fair Labor Standards Act(FLSA), all of these are examples of hours worked that generally must be compensated.

What counts as “hours worked” under the FLSA?
In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other designated place of work, from the beginning of the first principal activity of the work day to the end of the last principal work activity of the workday.

Also included is any additional time the employee is allowed to work. This means that time spent doing work not requested by the employer, but still allowed, is generally hours worked, since the employer knows or has reason to believe that the employees are continuing to work and the employer is benefiting from the work being done.

Pay special attention to the following situations:

  • Rework. When an employee must correct mistakes in his or her work, the time must be treated as hours worked, even when the employee voluntarily does the rework.
  • Waiting for Work. Time, which an employee is required to be at work or allowed to work for his or her employer, is hours worked. A person hired to do nothing or to do nothing but wait for something to do or something to happen is still working.
  • Place of Work. Hours worked include all the time during which an employee is required or allowed to perform work for an employer, regardless of where the work is done, whether on the employer’s premises, at home or at some other location.

Employers should be especially careful when it comes to allowing non-exempt employees to read and respond to work-related emails after hours through the use of smart phones or similar devices. The time spent on these emails may be considered “hours worked,” entitling such employees to compensation.

Remember – it’s your responsibility to exercise control and see that work you do not want performed is not done. Merely making a rule against “off the clock” work is not enough. The employer has the power to enforce the rule and must make every effort to do so.

For more information, check out the U.S. Department of Labor’s Hours Worked Advisor. Our section on Employee Pay includes information on other issues related to employee compensation.

IRS Announces 2012 Standard Mileage Rates

Posted by admin on January 26, 2012  |   No Comments »

The Internal Revenue Service has issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
2012 Standard Mileage Rates
Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 55.5 cents per mile for business miles driven;
  • 23 cents per mile driven for medical or moving purposes; and
  • 14 cents per mile driven in service of charitable organizations.

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Limitations on Use of Standard Mileage Rates
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.

For Additional Information
Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan. For more on employer-provided transportation benefits, please see our section on Fringe Benefits.

Payroll Tax Cut Temporarily Extended into 2012

Posted by admin on January 25, 2012  |   No Comments »

Employees will continue to see a reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. The two percentage point payroll tax cut, in effect for 2011, was temporarily extended by the Temporary Payroll Tax Cut Continuation Act of 2011. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

According to the Internal Revenue Service (IRS), employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Additional Income Tax May Apply to Certain Higher Income Employees
Employers should note that the law includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month extension period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount).

  • This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).
  • This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year.
  • With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.

To read more about the Social Security and Medicare payroll taxes, please visit our section on the Federal Insurance Contributions Act (FICA).

IRS Issues Additional Guidance on Form W-2 Health Care Coverage Reporting Requirement

Posted by admin on January 20, 2012  |   No Comments »

The U.S. Internal Revenue Service (IRS) has issued Notice 2012-9 to provide additional guidance on the informational reporting to employees of the cost of their employer-sponsored group health plan coverage on Form W-2. This informational reporting is required under Section 6051(a)(14) of the Internal Revenue Code, enacted as part of the Affordable Care Act of 2010. The IRS requested public comments on the W-2 reporting requirement in Notice 2011-28. Notice 2012-9 responds to these comments and amends, restates and supersedes Notice 2011-28. Specifically, the new notice includes guidance on the W-2 reporting as it relates to small employers, flexible spending accounts, dental and vision plans, COBRA and health reimbursement arrangements.

U.S. Supreme Court Will Hear Arguments Over Constitutionality of Health Care Reform Law

Posted by admin on January 20, 2012  |   No Comments »

The U.S. Supreme Court has announced that it will hear more than five hours of oral arguments on the constitutionality of select provisions of the health care reform law (Affordable Care Act or PPACA). The arguments are expected to take place in late February or early March, with a ruling by the Court in June.

The following four issues will be addressed on appeal:

  • Constitutionality of the Individual Mandate. The Court set aside two hours to hear oral arguments on whether Congress had the constitutional authority to enact the minimum coverage provision of the Affordable Care Act, which requires non-exempted individuals to maintain a minimum level of health insurance or pay a tax penalty beginning in 2014.
  • “Severability” of the Individual Mandate from the Entire Law. Ninety minutes have been allotted for arguments on whether the individual mandate, if found to be unconstitutional, can be severed from the remaining provisions of the Affordable Care Act or whether some or all of the remaining law must also be invalidated.
  • Whether the Individual Mandate May Be Challenged Prior to Enforcement. The Court will hear one hour of oral arguments on the question of whether federal law (specifically, the Anti-Injunction Act) prohibits the Court from hearing challenges to the individual mandate before the requirement becomes effective in 2014 and a taxpayer actually incurs a penalty tax for non-compliance.
  • Constitutionality of the Expansion of Medicaid. Finally, one hour has been allotted by the Court to hear arguments on whether the Affordable Care Act’s expansion of the eligibility and coverage thresholds that states must adopt to remain eligible to participate in Medicaid is a valid exercise of constitutional authority by Congress.

You can read more about these challenges to the health care reform law in the Patient Protection and Affordable Care Act Briefs, posted on the Docket page of the U.S. Supreme Court website. For more information on other provisions of the Affordable Care Act, visit our section on Health Care Reform.

Tips to Prepare for Flu Season in the Workplace

Posted by admin on January 17, 2012  |   No Comments »

Flu can be a big disruption for business. Employees who are sick may not be as productive when it comes to getting work done, and symptoms such as coughing, sneezing, and fever can spread germs to healthy employees.

According to the Centers for Disease Control and Prevention(CDC), flu activity in the U.S. most commonly peaks in January or February. Everyday preventive actions that can help prevent flu and the spread of germs in the workplace include:

Cover Your Mouth and Nose
Cover your mouth and nose with a tissue when coughing or sneezing. Flu viruses are thought to spread mainly from person to person through coughing, sneezing, or talking to someone with the flu.

Avoid Touching Your Eyes, Nose, or Mouth
Flu viruses also may spread when people touch something with flu virus on it and then touch their mouth, eyes, or nose. Routinely clean frequently touched objects and surfaces, including doorknobs, keyboards, and phones, to help remove germs.

Clean Your Hands
Washing your hands often will help protect you from germs. Make sure your workplace has an adequate supply of tissues, soap, paper towels, alcohol-based hand rubs, and disposable wipes.

Stay Home When Sick
Employees should be encouraged to stay home from work when they are sick to help prevent others from getting ill. If there is only one employee who performs a particular task, consider training others so that coverage is available should that employee need to leave work early or stay home due to illness.

For more information and resources to help fight the flu in your workplace, visit the CDC’s web page on Seasonal Flu Information for Businesses & Employees.

Compliance Date for Summary of Benefits and Coverage Will Likely Be Extended

Posted by admin on January 12, 2012  |   No Comments »

Compliance Date for Summary of Benefits and Coverage Will Likely Be Extended

The U.S. Department of Labor (DOL) has released a new set of Frequently Asked Questions (FAQs) which addresses the timing of the Affordable Care Act’s requirement that group health plans provide participants and beneficiaries with certain information about their health plan benefits and coverage. The FAQs make clear that compliance will not be required until final rules are issued and effective.

Background
Proposed rules issued in August established the standards for group health plans to provide participants and beneficiaries a summary of benefits and coverage (SBC), as well as a uniform glossary of terms commonly used in health insurance coverage, as required under the Affordable Care Act. Both documents must comply with certain appearance and format requirements and must utilize terminology understandable by the average plan enrollee.

Under the proposed rules, the new requirement would be applicable beginning March 23, 2012.

Compliance Not Required Before Final Rules Become Effective
According to the FAQs, final regulations regarding the SBC and uniform glossary are expected to be issued as soon as possible, taking into account comments and feedback on the proposed rules and the proposed templatesto satisfy these requirements that were issued simultaneously. Until those final regulations are issued, group health plans are not required to comply with the requirement to provide the SBC and uniform glossary. It is anticipated that the final regulations, once issued, will include an applicability date that gives group health plans sufficient time to comply.

To view the FAQs, please click here. For more on the Affordable Care Act, please visit the Health Care Reform section.

Previously Released Questions:

8 States Adjust Minimum Wage Rates for 2012

Posted by admin on January 3, 2012  |   No Comments »

The following states, and the City of San Francisco, have announced increases in minimum wage rates effective January 1, 2012:

  • Arizona: The minimum wage in Arizona will increase to $7.65 per hour.
  • City of San Francisco, California: The City of San Francisco’s minimum wage rate will rise to $10.24 per hour.
  • Colorado: The proposed state minimum wage is $7.64 per hour, and $4.62 for tipped employees.
  • Florida: The minimum wage will increase to $7.67 per hour in Florida, and $4.65 for tipped employees.
  • Montana: The state minimum wage will rise to $7.65 per hour.
  • Ohio: The state minimum wage will increase to $7.70 per hour, and $3.85 for tipped employees. The federal minimum wage of $7.25 per hour may be paid to employees whose employers gross $283,000 or less per year.
  • Oregon: The minimum wage will rise to $8.80 per hour in Oregon.
  • Vermont: The state minimum wage will increase to $8.46 per hour, and $4.10 for tipped employees.
  • Washington: The minimum wage in Washington will increase to $9.04 per hour.

For more information on state minimum wage laws, including poster requirements, please visit the State Laws section, click on your state, and select Minimum Wage in the left-hand navigation menu.

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