Quick Hits - April 5, 2023 - American Society of Employers - ASE Staff

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Quick Hits - April 5, 2023

OFCCP Director Jenny Yang is leaving the agency: Director Yang became OFCCP Director on January 20, 2021, and her last day was March 31, 2023.  She accomplished much at OFCCP during her time there.  There will be an acting director until a new director is appointed. 

Michigan tax rate decreases to 4.05%:  The Michigan personal income tax rate will decrease from 4.25% to 4.05% for 2023. Michigan law requires a reduction in the personal income tax rate beginning in 2023 if the general revenue fund grew from the preceding year faster than the rate of inflation for the same period. This determination requires consensus by the State Treasurer, the Director of the Senate Fiscal Agency, and the Director of the House Fiscal Agency. It is anticipated that the formal step of adopting a consensus will occur as a procedural matter at the May Consensus Revenue Estimating Conference.   Attorney General Dana Nessel issued an opinion indicating that this rate reduction will be temporary, for one year only, and that the rate will revert to 4.25% the following year. If employees ask, they will not be able to get the overpayments for taxes paid in first three months of 2023 until they file their taxes next year.  Source: Press Release, Michigan Department of Treasury, 3/29/23.

Do you experience “Quick Quitting?” Many employees are leaving less than a year after joining an organization in a practice labelled as "quick quitting," according to a new report from SkyNova, an invoicing software company.  "Quick quitting has been around forever; it's not uncommon to leave a job as soon as you discover it's not a good fit — especially if you're burnt out after a short time working there," SkyNova said in a blog post.  "But perhaps quick quitting has become more common due to employees feeling empowered to ask for sufficient pay, benefits, and flexibility in the wake of the Great Resignation."  According to the SkyNova, which surveyed 500 employees and 632 managers and HR professionals, the most common causes for quick quitting include:  Insufficient pay (54%), toxic work environment (47%), insufficient benefits (47%), and lack of communication (27%).  Source:  HR Director 329/23

Employers may cut back on benefits for next year and prioritize new ones:  According to a new report from Care.com, many U.S. employers are looking to revamp their benefits packages this year. The survey suggests that 95% of leaders are planning to re-examine their strategies, with nearly half of respondents – some 47% – looking to cut back benefits.  Among the most prioritized offerings include childcare benefits, which 46% of HR leaders say is at the top of their lists. Likewise, 43% of survey respondents say senior care benefits were something they would look to prioritize moving forward. Though few organizations are expanding benefits overall, some select benefits, like family care benefits, are being prioritized by companies even while other benefits, like adoption and fertility assistance, are cut. That means that benefits as a whole will go down – but for some employees, the personal utility they get out of their benefits package might actually increase. For most leaders, family care benefits are seen as a good way to boost productivity and talent retention – which makes sense, since a third of workers have a child under 14 in their household and one-sixth of workers are a caregiver to an elderly individual, according to Care.com’s research.  Source: ALM Benefits Pro 3/17/23

Another Obama rule for favoring unions is back – OSHA inspections:  In January 2023, the Occupational Safety and Health Administration (OSHA) revived a rule that would permit worker-designated representatives to accompany OSHA during the inspection process.  The proposed rule aims to renew a controversial Obama-era policy that ended in 2017 during the Trump administration when OSHA rescinded the rule amidst legal challenges. As proposed, the rule would have two key impacts. First, it would “clarify” the role of union representatives, many of whom are union staff members and not employees of the workplace, during inspections. This change would affect work sites that are already unionized and allow that union to designate someone who is not employed at the inspected facility—such as a representative from the union’s national office—to accompany OSHA during the inspection. Second, and more divisively, the proposed rule would enable nonunionized workforces to designate union representatives to participate in OSHA inspections, subject only to the requirement that the compliance officer deems the representative’s presence “reasonably necessary to an effective and thorough physical inspection.” With this rule, Biden administration aims to provide pro-union advocates with one more tool to deploy in organizing campaigns.  Source: Baker & Hostetler LLP

Make sure your COBRA notices are compliant:  Three former Wells Fargo employees sued the company in May 2022 under the Employee Retirement Income Security Act (ERISA), as amended by the Consolidated Omnibus Budget Reconciliation Act (COBRA). After the former employees left the company, they opted to discontinue their medical, dental, and vision benefits through Wells Fargo because of allegedly misleading and threatening COBRA notices that they had received about post-employment benefits. The former employees claimed that the notices were deficient in that they misinformed them and other plan participants about criminal and tax penalties for submitting incomplete information. As a result, the former employees incurred substantial costs in paying for their medical expenses.  The case is still pending surviving summary judgement.  With reductions in force potentially looming, it is a good idea to re-review all COBRA notices through legal counsel.  Source:   Hall Benefits Law 3/14/23

Veteran unemployment rate at 2.8%:  The unemployment rate for veterans who served on active duty in the U.S. Armed Forces at any time since September 2001 declined to 3.1% in 2022. The jobless rate for all veterans decreased to 2.8%.  The average age of veterans surprisingly is 64.  Source:  USDOL

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