Rick Rossignol

Why It Matters That You’re Prepared for the New Health Care Reform Released by the Department of Labor

The ongoing debate about health care reform has stirred up much “dust.” As it continues to settle, it’s vital that you remain informed about being prepared for the DOL’s new health care reform and the related Summary SBC (Summary of Benefits) template.

Knowing where we’ve been

In 2016, the Departments of Labor, Treasury, and Health and Human Services initiated changes based on their responsibilities under the Affordable Care Act (ACA). A key change had to do with the SBC template and the instructions for completing the SBC.

New rules and obligations for plan sponsors apply based on their individual SBC’s. The SBC template changes have been labeled “significant.”

Changes affect plan sponsors and third-party administrators. It’s necessary to be informed as you go forward.

Getting to where you need to go

Here’s where your understanding (to date) should land:

  • SBC’s require fully insured carriers and plan sponsors (of self-insured group health plans) to use HHS (Health and Human Services), calculators. Calculations are focused on the minimum value of the health plan. Each calculation determines whether or not it meets the minimum 60% standard required by law.
  • A “Yes” or “No” answer is required for the FAQ and the new SBC template related to whether the plan meets minimum value.
  • Your determination and subsequent answers on the SBC could remove the uncertainty for employers concerned about the minimum value percentage for their particular plans.
  • Employers must implement plan design changes if their plans do not meet the requirement. Failure to do so will incur penalties as stated under Code Section 4980H(b).

Contact us with your questions about Health Care Reform and your employer’s obligations.

What to Know About Transgender Rights and How It Could Impact Your Business

Change is the word. It’s at the core of the transgender issue and transgender workplace protections.

 

Who are we talking about?

Transgender describes those with a gender description different than what their sex defined for them at birth. Law has defined it to mean a…

“…person’s gender-related appearance and behavior whether or not stereotypically associated with the person’s assigned sex at birth.”

 

What are we talking about?

It’s important to know your state laws and policies related to sex and gender protections. For example, California’s Fair Employment & Housing Act prohibits discrimination based on sex, gender, gender identity, and gender expression.

Discrimination is risky for you as an employer. It could produce a complaint filing or worse a lawsuit.

 

How to Stay True to Current Law Regarding Transgender Rights and Provide a Non-Discriminatory Work Environment

 

Keep your questions “safe”

As an employer, you’re limited in what you can and cannot ask an employee or prospective employee. Safe zones include:

  • Work/employment history
  • Personal references

Off-limits questions that cross the line include:

  • Sexual orientation or gender identity
  • Marital status
  • Spouse’s name
  • Household members personal relationship to the employee and to each other
  • Body image or body-related themes
  • Medical or surgical implications

HIPAA (Health Insurance Portability and Accountability Act) covers many of these, especially medical-related questions. Stay on the safe side by keeping your line of questions focused on work history.

 

Maintain a workplace appropriate dress and grooming code that fits everyone

Laws, such as California’s, prohibit you as an employer from denying an employee the right to dress according to their gender identity. Be non-imposing in this area if you want to stay safe and avoid push-back.

The only flex here would be attire or grooming that infringes on the person’s ability to do their job safely and effectively.

Restrooms, locker facilities, changing rooms, etc. are to be safe for all. Privacy protection can be assured by providing unisex facilities (e.g. restrooms, etc) with lockable entry points. The usage of a unisex should be at the discretion of the employee.

 

Change is life. It’s to your advantage to embrace those that affect your business and know how to navigate them without risk.

See this guide for more specific guidelines to protect you and your employees. Contact us about human resources information and guidelines to improve your work environment.

 

                   

Everything You Need to Know About ACA Reporting to the IRS for 2017

When it comes to the health care law, also known as the Affordable Care Act (ACA), and how it may affect your company’s taxes, there are many questions you might have.  This blog is designed to answer your questions and make filing a breeze!

 

The Good News and the Bad News

 

We all know by now that individuals are required to have health insurance in 2017 and that applicable large employers (ALEs) are required to offer health benefits to their full-time employees. If you’re an employer, be sure to accurately meet the reporting requirements. Reporting is due early in 2018. Forms 1094-C, 1095-C, 1094-B, and 1095-B need to be filed by February 28, 2018 by mail, or April 2, 2018, electronically. Employers remember to provide all printed forms to the IRS in landscape, not portrait.

 

The good news: we didn’t see any substantial changes in the instructions for filing the 1094-B and 1095-B1094-C and 1095-C, or the forms themselves: 1094-B1095-B1094-C, and 1095-C. The IRS kept the “plan start month” box as an optional item for 2017 reporting and confirmed there is no code for Form 1095-C, Line 16 to indicate an employee waived an offer of coverage.

 

The bad news: for 2017, the “good faith compliance efforts” offered by the IRS in the past will no longer be extended. And there are penalties employers need to be aware of:

 

  • Employers will be fined $260 for each incorrect or unfiled return. The total penalty for a calendar year will not to exceed $3,218,500.

 

  • Statements to employees must be furnished by January 31, 2018 or an employer can be fined $260.The total penalty for a calendar year not to exceed $3,218,500.

 

  • Employers can go to Form 1095-C, Line 15 to report the monthly cost of the lowest employee-only premium offered to employees. As long as the dollar amount reported on Line 15 is correct, no penalty will be imposed.

 

6055 Requirements When It Comes to Forms 1094-B and 1095-B

 

Employers who provide minimum essential coverage (MEC) during a calendar year are required to report to the IRS certain information about individuals covered by MEC along with a statement to those individuals. Section 6055 reporting relates to covered individuals that have been provided MEC by health insurance issuers, certain employers, and other entities that provide MEC. A statement disclosing MEC information must also be furnished to responsible individuals.

 

Details about information reporting requirements under section 6056 is available on the Information Reporting by Applicable Large Employers page.

 

6056 Requirements: Forms 1094-C and 1095-C

 

The information reported on Form 1094-C and Form 1095-C should be used to determine whether an employer is liable for any payment under the employer shared responsibility provisions of section 4980H, and the amount of the payment, if any. The IRS uses Form 1095-C to determine the eligibility of an employee to receive the premium tax credit under section 36B. Employers that are subject to section 4980H and that sponsor self-insured health plans can use Form 1095-C to verify employees’ and family members’ enrollment in minimum essential coverage under the self-insured health plan for purposes of the individual shared responsibility provisions of section 5000A. The 1095-C form retains the “plan start month” box, intended to provide the IRS with information used to calculate an individual’s eligibility for premium tax credits.

 

If you’d like to learn more about ACA Reporting to the IRS in 2017, please contact the experts at RTR Consulting. For more than 20 years, we’ve been helping small to medium-sized businesses manage their most precious resource through a full range of HR services – at a fraction of the cost of an in-house department, too!

Employment Law Changes for 2018 – Part Three

This is the last in our three-part series of Employment Processes for 2018, giving you essential information on new laws, bills, and policies. Employers, you must stay up-to-date on changes that could much affect you and your business. We at RTR Consulting want to make sure that you are prepared when the new year rolls around, to be in compliance, and maintain a positive work environment.

If you missed them, be sure to read part 1 and part 2 in the series for more critical updates.

 

SB 63 (Expansion of Parental Leave Rights)
Those employers with 20 or more employees also need to develop a policy for Parental Leave. While the leave is unpaid, an employer needs to plan on allowing an employee having a baby up to seven months of unpaid leave. This new law, effective January 1, 2018, adds section 12945.6 to the Government Code and provides that an employee who has at least 12 months and 1250 hours of service within the prior 12 months, and who works at a worksite with at least 20 employees within 75 miles, is entitled to take up to 12 weeks of parental leave to bond with a new child within the first year of the child’s birth, adoption, or foster care placement.  The employer also is required to maintain the employee’s group health coverage during such leave, on the same terms as if the employee was actively reporting to work. There are already state and federal statutes requiring larger employers (50 or more employees) regarding such leave, but this new law creates parental leave rights for employees of smaller employers.  If an employee is already entitled to leave under the FMLA or CFRA, this new law does not grant the employee another 12-week bucket of time off to also use.

 

The Immigrant Worker Protection Act
Employers need to review their policy for Immigrant worker workers in 2018 too. Effective January 1, 2018, the Immigrant Worker Protection Act will prohibit employers in California from voluntarily consenting to allow immigration enforcement agents to enter any nonpublic areas of their workplaces unless they obtain a subpoena or judicial warrant.

The Act prohibits employers from consenting to enforcement agents accessing, reviewing, or obtaining their employee records (except Forms I-9 and other documents for which ICE has provided the required three days’ notice before inspection) without a subpoena or judicial warrant.

Employers also will be required to notify employees of any inspections of Forms I-9 or other employment records within 72 hours of receiving notice of the inspection, including:

  • The name of the agency conducting the inspections
  • The date that the employer received notice of the inspection
  • The nature of the inspection to the extent known
  • A copy of the Notice of Inspection of I-9 Employment Eligibility Verification forms for the inspection to be conducted

By July 1, 2018, the California Labor Commissioner will create a template that employers may use to satisfy these notice requirements.

Within 72 hours of receiving inspection results, employers will be required to provide affected employees a copy of the written immigration agency notice and a written notice containing specific information about their collective obligations.

Employers that violate any of the aforementioned requirements will be subject to civil penalties of $2,000 to $5,000 for a first violation and of $5,000 to $10,000 for each subsequent violation.

In addition, employers will be prohibited from reverifying the employment eligibility of a current employee at a time or in a manner not required by specified federal law. Violations of this requirement will be subject to a civil penalty of up to $10,000.

 

SB 306 (Expanding The Labor Commissioner’s Authority)
The approval of SB 306 means the DLSE will be authorized to investigate an employer—with or without a complaint being filed—when, during a wage claim or other investigation, the Labor Commissioner suspects retaliation or discrimination. The bill will also allow the Labor Commissioner or an employee to seek injunctive relief (that the employee be reinstated pending resolution of the claim) upon a mere finding of “reasonable cause” that a violation of the law has occurred. That injunctive relief, however, would not prohibit an employer from disciplining or firing an employee for conduct that is unrelated to the retaliation claim. The bill also authorizes the Labor Commissioner to issue citations directing specific relief to persons determined to be responsible for violations and to create specific procedural requirements.

 

If you’d like to learn more about these new laws, bills, and policies and how they will affect your Employment Processes for 2018, please contact the experts at RTR Consulting. For more than 20 years, we’ve been helping small to medium-sized businesses manage their most precious resource through a full range of HR services – at a fraction of the cost of an in-house department, too!

Employment Law Changes for 2018 – Part Two

 

Employers, have you examined your employment processes for 2018 yet? The new year will be here before you know it, and with that comes important updates you must be aware of!

 

This is part 2 in our three-part series on Employment Law Changes for 2018. We at RTR Consulting want to make sure you know about relevant new laws, bills, and policies including:

 

Minimum Wage Increase
Don’t forget the minimum wage increases in 2018. The chart below is just for the state of California and does not include local ordinances that require minimum wages higher than the rule.

 

Date Minimum Wage for Employers with 25 Employees or Less Minimum Wage for Employers with 26 Employees or More Minimum Salary to be exempt from FSLA

Under 25 EE

Minimum Salary to be exempt from FSLA

Over 65 EE

January 1, 2017 $10.00/hour $10.50/hour $800.00 $840.00
January 1, 2018 $10.50/hour $11.00/hour $840.00 $880.00
January 1, 2019 $11.00/hour $12.00/hour $880.00 $960.00
January 1, 2020 $12.00/hour $13.00/hour $960.00 $1040.00
January 1, 2021 $13.00/hour $14.00/hour $1040.00 $1120.00
January 1, 2022 $14.00/hour $15.00/hour $1120.00 $1200.00
January 1, 2023 $15.00/hour $1200.00

 

SB 396 (Expansion of Harassment Training)  
As you review your plans for training in 2018, you need to add definitions to sexual harassment. California’s Fair Employment and Housing Act already requires employers with 50 or more employees to provide at least two hours of prescribed training and education about sexual harassment to all supervisory employees within six months of being promoted to a supervisory position and once every two years after that.

 

Effective January 1, 2018, this new law requires covered employers to include information on harassment based on gender identity, gender expression, and sexual orientation as a component of that prescribed training. Employers also have to publish new/amended posters from the Department of Fair Employment and Housing on harassment and transgender rights.

 

Be sure to read part 1 of this series and watch for part 3 coming up!

 

This is the second in a series of three blogs regarding important info employers need to know and implement in 2018. If you’d like to learn more about these new laws and how they will affect your Employment Processes, please contact the experts at RTR Consulting. For more than 20 years, we’ve been helping small to medium-sized businesses manage their most precious resource through a full range of HR services – at a fraction of the cost of an in-house department, too!

Employment Law Changes for 2018 – Part One

Happy Almost New Year: Time to Examine Your Employment Processes for 2018

 

This is the first in a three-blog series with essential information employers need to know about new laws, bills, and policies.

 

Employers, have you examined your employment processes for 2018 yet? Start by asking yourself, is my recruitment and selection process working? Before you get to work, make sure you know about these relevant new laws that may change your method and require you to make changes to the information you can gather from a prospective employee.

 

AB 1008 (Ban the Box)  

Starting January 1, 2018, this new law amends the California Fair Employment and Housing Act to prohibit employers with five or more employees from inquiring about criminal history on an employment application and/or at any time (including the interview process) before making a conditional offer of employment. This law also requires an employer who intends to deny an applicant a position of employment solely or in part because of the applicant’s conviction history to take an extra step. Make an individualized assessment of whether the applicant’s conviction history has a direct and adverse relationship with the specific duties of the job he or she is applying for, and to considering the nature and gravity of the offense, the amount of time that has passed, and the nature and duties of the job sought by the applicant.

 

An employer who makes a preliminary decision to deny employment based on that individualized assessment must provide the applicant a written notification of the initial decision. The information must identify the disqualifying conviction(s) and inform the applicant that he or she may provide a response that includes evidence challenging the accuracy of the conviction information and/or demonstrating rehabilitation or other mitigating circumstances.

 

The employer also must provide a copy of the conviction history report, if any. The employer may, but is not required to explain or justify the reasoning for its preliminary decision.  The applicant must be provided with at least five business days to respond (before the employer can make a final decision on employment).  If the applicant notifies the employer in writing that he or she disputes the accuracy of the conviction history and is obtaining evidence to support that assertion, the applicant must be given an additional five business days to respond to the notice.  The employer is required to consider any information submitted by the applicant before making a final decision.

 

If a final decision is made to deny employment, the employer again must provide written notification to the applicant and inform them of his or her right to file a complaint with the Department of Fair Employment and Housing and/or of any internal appeal rights the applicant may have to challenge the decision. Again, the employer may but is not required to explain its justification/reasoning for its final decision.

 

This new law does not apply in those limited circumstances where a public or private employer is required by law to conduct a criminal background check or to restrict employment based on criminal history.

 

Covered California employers should familiarize themselves with the requirements of this new law and modify their employment applications and hiring processes accordingly.

 

AB 168 (Salary Inquiries) 

This new law which goes into effect on January 1, 2018, adds section 432.3 to the Labor Code and prohibits employers, public and private, from inquiring about or considering, information pertaining to an applicant’s prior salary history to determine whether to offer employment to the applicant and/or the amount to pay the applicant.

 

It also requires employers to provide the pay scale for a position upon request by an applicant.  An applicant may voluntarily disclose information concerning prior salary history, in which case the employer may consider it in determining the employee’s compensation.  This new law is intended to combat the continuation of historical pay gaps existing along with gender and/or racial lines.

 

Usually, during the recruitment process, we ask on the employment application have you ever been convicted of a crime? We also have applicants list their past three or four employees with dates of employment and starting and ending salary.

 

This is the first in a series of three blogs regarding important info employers need to know and implement in 2018. If you’d like to learn more about these new laws and how they will affect your Employment Processes, please contact the experts at RTR Consulting. For more than 20 years, we’ve been helping small to medium-sized businesses manage their most precious resource through a full range of HR services – at a fraction of the cost of an in-house department, too!

 

 

 

5 Things Employers Need to Know About the California Sanctuary State Law

You’ve probably already heard that Gov. Jerry Brown signed landmark sanctuary state legislation into law recently, set to go into effect on January 1, 2018. California is home to an estimated 2.3 million unauthorized immigrants. Senate Bill 54 protects immigrants without legal residency in the U.S. How? By restricting when local law enforcement can help federal agents enforce immigration laws. Research has shown sanctuary cities have lower crime rates and that immigrants generally commit fewer crimes than U.S. citizens.

 

According to the California Employment Law Report, employers must understand these five key aspects of sanctuary state legislation:

 

  1. Employers do not have to voluntary allow an immigration enforcement agent to enter any nonpublic areas of “a place of labor” without a subpoena or judicial warrant.

 

The bill essentially keeps local officials from asking people about their immigration status during “routine interactions” and limits their work with federal immigration agents.

 

  1. Employees must be given notice whenever Immigration officials want to review employment records.

Any inspections of I-9 Employment Eligibility Verification forms or other employment records conducted by an immigration agency must be posted in the language the employer normally uses to communicate within 72 hours of receiving a notice of the inspection. The notice must include:

 

  • The name of the immigration agency conducting the inspections of I-9 Employment Eligibility Verification forms or other employment records.
  • The date that the employer received notice of the inspection.
  • The nature of the inspection to the extent known.
  • A copy of the Notice of Inspection of I-9 Employment Eligibility Verification forms for the inspection to be conducted.

In addition, The Labor Commissioner is required to publish a template for employers to use by July 1, 2018.

 

  1. An employer is required to provide an affected employee with a copy of the Notice of Inspection of the I-9 Employment Eligibility Verification form.

An affected employee is an employee identified by the immigration agency inspection. The employer is required to provide the affected employee with a copy of the written immigration agency notice within 72 hours. If hand delivery is not possible, by mail or email, will suffice.

 

  1. Employers cannot reverify the employment eligibility of a current employee in a manner that’s not required by federal law.

Violations of this provision can result in civil penalties up to $10,000.

 

  1. Potential penalties.

Penalties for failure to provide the notices required under the new law are between $2,000 and $5,000 for a first violation, $5,000 up to $10,000 for each subsequent violation.  The penalties will be recovered by the Labor Commissioner.

 

If you’d like to learn more about the landmark sanctuary state legislation, please contact the experts at RTR Consulting. For more than 20 years, we’ve been helping small to medium-sized businesses manage their most precious resource through a full range of HR services – at a fraction of the cost of an in-house department, too!

 

 

7 Ways Management Diminishes Employee Morale

Perhaps your employees are performing the minimum expected, but wouldn’t you prefer they took the initiative to go above and beyond?

 

By fostering healthy employee morale, employers can get the most out of their team. Morale is the oil for a smoothly running machine and can have a profound effect on productivity, talent retention, and, ultimately, a company’s bottom line. Simply put, high spirits facilitate higher rates of engagement.

 

And the management team plays a big role in encouraging staff members to perform their best work on a regular basis. How? By communicating clear-cut roles, setting high standards, and being consistent and fair. To understand how these elements affect employee morale, let’s take a look at what happens in their absence.

 

Here are 7 ways your management team may be crushing employee morale:

 

  1. Not taking responsibility for mistakes.

 

Ultimately, success is a team effort – if one of your employees falls through they might not have access to the tools they need to succeed. Instead of assuming they just made an error, consider whether management communicated initiatives effectively and made sure their employees understood their instructions.

 

  1. Publicly shaming or calling out employees.

 

The effect of public embarrassment and humiliation is always negative. Employees may become resentful and begin acting out or they may retreat, causing them to underperform or seek employment elsewhere. If an employee issue must be addressed, privately is best – and respectfully. Employees may be more willing to acknowledge their mistakes, making them less likely to repeat them.

 

  1. Threatening their jobs.

 

People make mistakes. Employees miss the mark sometimes. When this happens, don’t threaten their jobs. Threatening their livelihood will only make them feel anxious and utterly replaceable, which, in turn, affects performance. Instead, management should work with them to figure out why they might not be performing as expected and then ought to help them find solutions that take into account their unique working style.

 

 

When managers micromanage employees, they are essentially second-guessing their work. Micromanaging tells employees leaders don’t trust them or think they’re incompetent. Don’t dictate how they complete their job to the last detail. Everyone has a unique working style – interfering with this process can dampen productivity. Define the end result and let the employees forge their own way.

 

  1. Never offering praise where praise is due.

 

Reinforce a job well done. When leaders shine a spotlight on employees who go above and beyond, they’re not only reinforcing that individual’s behavior but encouraging others to do the same – everyone loves a pat on the back once and a while.

 

  1. Tuning out employee ideas.

 

You never know where the next big idea is going to come from. Listening to your employees not only deepens the creative pool but makes your staff feel like they have a say, encouraging a sense of shared responsibility in company outcomes.

 

  1. Not addressing bad employee behavior.

 

When managers ignore toxic behavior, such as bullying, back-talking, or general negativity, they are inadvertently condoning said behavior, allowing negativity to spread through the ranks. Management should take the appropriate actions from the get-go, showing the team it won’t be tolerated.

 

Avoid these mistakes to boost employee morale, which, in turn, will generate higher levels of engagement. Just remember that it’s not up to the individual but the entire management staff to set aside their personal goals and work for the common good of all the company and the employees’ benefit.

 

If you’d like to learn more about boosting employee morale, please contact our human resource experts at RTR Consulting. For more than 20 years, we’ve been helping small to medium-sized businesses manage their most precious resource through a full range of HR services – at a fraction of the cost of an in-house department, too!