by MHA
Several federal agencies have released guidance for employers regarding labor issues caused by H1N1 and the flu season.

• Centers for Disease Control: (more) Communication Toolkit for Employers includes a step-by-step guide for employers to develop a policy. The kit also includes sample posters and e-mails to communicate the policy to the employees.
   
• Equal Employment Opportunity Commission: (more) Guidelines regarding pandemic preparedness in the workplace and the interactions with the Americans with Disabilities Act. The guidance answers important question such as:
• How much information may an employer request from an employee who calls in sick?
• May an employer require employees to stay home if they have symptoms of the pandemic influenza virus?
• May an employer require a doctor’s note when the employee returns to work?
• Department of Labor, Wage and Hour Division (DOL, WHD) FLSA Fact Sheet: (more) Fact Sheet related to the pandemic flu and its interaction with the Fair Labor Standards Act. The sheet confirms that an employer may encourage or require employees to work from home during an outbreak and explains the compensation issues involved in such a decision.
   
• DOL, WHD FMLA Fact Sheet: (more) Fact Sheet related to the pandemic flu and its interaction with the Family and Medical Leave Act (FMLA). The sheet confirms that an employee may be eligible for FMLA if the employee is absent from work because the employee or a family member has the flu. However, FMLA does not protect an employee who is absent as a precautionary measure.

by MHA

Three annual notices must be given to all plan participants no later than 30 days prior to the beginning of each plan year. For calendar year plans, this deadline is Dec. 1. The notices listed below are each separate legal requirements, but a plan that is subject to more than one notice may use a single notice to satisfy the requirement.

• Safe Harbor Notice: A plan that uses a safe harbor method to avoid annual ADP/ACP nondiscrimination testing must provide a safe harbor notice to each participant and employee who is eligible to participate in the plan. The types of safe harbors includes dollar-for-dollar matching on the first 3 percent of deferrals and 50 percent on the next 2 percent, a 3 percent non-elective contribution, or the new qualified automatic contribution arrangement (QACA) created by the Pension Protection Act.
• Qualified Default Investment Alternative (QDIA) Notice: A plan that provides for participant-directed investments and has a default investment option must provide a QDIA notice if the plan fiduciaries are seeking protection from lawsuits by plan participants who are defaulted into this option.
• Eligible Automatic Contribution Arrangement (EACA): A plan that allows for automatic enrollment but includes a provision allowing participants to opt out and withdraw deferrals within the first 90 days after being enrolled must provide a notice describing the terms of the EACA.

Finally, defined contribution plans that implemented a waiver of the required minimum distributions for 2009 are reminded that the Internal Revenue Service (IRS) issued sample amendments, and transition relief for certain actions taken on or before Nov. 30, 2009. Beginning Dec. 1, 2009, each plan must have implemented a policy regarding the handling of minimum distributions, including adoption of plan amendments which is required at the end of the 2011 plan year.

At home, most of us would be outraged if we thought someone was listening to our conversations or looking at our computers. But what happens when we go to work?

Generally speaking, an employer obtains the right to monitor internet usage, e-mails, and phone calls in the workplace without the consent of the employee. In 1986 Congress passed the Electronic Communications Privacy Act (ECPA). The act states that one is liable if they “intentionally intercept, use or disclose any wire, oral or electronic communications.” However, there are many exceptions to the ECPA such as the consent exception, business use, and provider exception that leave the issue of employee privacy open to broad interpretation. There are certain circumstances where employees may have rights.

For example, if an employer is monitoring phone calls and realizes the call is personal, they must stop monitoring the call immediately. However, if the employer has told employees not to make personal calls on business phones, then the employee takes the risk that those phones may be monitored. Also, union contracts may limit an employer’s ability to monitor e-mails or phone calls. There also may be additional rights in the state of California.

The fact is, three out of four companies monitor employee activities in one form or another. 63% of those companies track internet use, 47% review e-mails, 15% use video surveillance, 12% monitor phone calls, and 8% review voicemail messages. Employees need to be aware that they can be monitored if they are using company property such as computers and phones. Over the last couple of years, social networks have become increasingly popular and a growing concern for employers. The concern that employers are losing productivity has caused an increase in electronic monitoring.

Because workplace privacy laws are few and weak, employers can monitor employees, and there is virtually little to no protection. So with that, a good general rule is to assume someone is watching and don’t take any chances! Take personal calls on a cell phone and use your personal computer for personal use.

References:

http://www.workplacefairness.org/sc/privacy.php

http://www.privacyrights.org/fs/fs7-work.htm

http://jobsearchtech.about.com/od/laborlaws/a/work_privacy.htm

http://www.llrx.com/congress/090400.htm

From MHA

The Equal Employment Opportunity Commission (EEOC) issued an informal letter regarding an employer that required a health risk assessment as a condition of eligibility for reimbursement under the employer’s health reimbursement arrangement (HRA). If an employee did not complete the assessment, the employee was not eligible for reimbursements under the HRA. The Americans with Disabilities Act (ADA) permits a wellness plan to ask disability-related questions only if the plan is voluntary and individuals are not penalized for nonparticipation. The EEOC stated that the assessment would violate the ADA because it asked disability-related questions and penalized individuals for not completing the assessment. The EEOC has not taken a formal stand on this issue, but this informal letter is in line with previous EEOC informal letters prohibiting a plan from basing enrollment in a group health plan on completion of a health risk assessment.

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On Friday, November 6, 2009, President Obama signed the “Worker, Homeownership, and Business Assistance Act of 2009″ which gives tax breaks to large corporations and extends the homebuyer’s credit.

The American Recovery and Reinvestment Act of 2009 extended the first-time homebuyer credit for purchases before December 1, 2009 and increased the credit to $8,000. The new law extends the date to close on a credit eligible purchase to before May 1, 2010. And for purchases subject to a written binding contract by April 30, 2010, the closing would have to be before July 1, 2010.

The credit is no longer restricted to first-time homebuyers. Taxpayers are able to claim the credit on the purchase of a new home if they have owned and used a prior residence as their principal residences for any 5 consecutive-year period during the 8-year period ending on the date of the purchase of the new principal residence. However, the homebuyer credit for these “long-time residents” cannot exceed $6,500.

The credit is phased-out based upon modified Adjusted Gross Income (AGI). The credit begins to be phase-out for joint filers with modified AGI above $225,000 ($125,000 for other filers). Prior to the new law the phase-out began at $150,000 and $75,000 respectively.

The credit is only available for homes with a purchase price of $800,000 or less. Previously there was no price ceiling.

A taxpayer is allowed to elect to treat the purchase as occurring on December 31 of the calendar year preceding the year of purchase in order to accelerate the refund.

The new rules take effect on November 6, 2009.

Net Operating Loss carryback period extended to five years.

The new law permits any business to elect up to a 5-year carryback for net operating losses (NOLs) incurred in either 2008 or 2009, but not both. Businesses are able to offset 50% of the available income from the fifth year and 100% of all income in the remaining four carryback years. Eligible small businesses already had the ability to elect to carryback their 2008 NOLs either 3, 4, or 5 years under the American Recovery and Reinvestment Act. These small businesses are able to elect to carryback losses from 2009 up to 5 years. Additionally, the 90% limitation on the use of any alternative tax NOL deduction is suspended for these NOL carryback deductions. The NOL provision is not available to a taxpayer if the federal government acquired an equity interest (or right to acquire such an interest) in the taxpayer under the Emergency Economic Stabilization Act of 2008.

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