Quick Hits - May 24, 2017 - American Society of Employers - Heather Nezich

Quick Hits - May 24, 2017

More than one in 25 U.S. workers fail their employer’s drug tests: More U.S. workers are testing positive for illicit drugs than at any time in the last 12 years, according to data from Quest Diagnostics Inc.  The number of workers who tested positive for marijuana rose by 4%, while positive results for other drugs also rose.  In 2016, 4.2% of the 8.9 million urine drug tests that Quest conducted on behalf of employers came back positive, up from 4% in 2015. It is the highest rate since 2004, when 4.5% of tests showed evidence of potentially illicit drug use.  Marijuana remains the most commonly used drug among U.S. workers and was identified in 2.5% of all urine tests for the general workforce in 2016, up from 2.4% a year earlier. Quest also tests people, such as bus drivers and airline pilots, in jobs that affect public safety. In this segment, 0.78% of workers tested positive for marijuana, up from 0.71% in the previous year. Another concern for employers is the continuing rise in cocaine positives, particularly in drug tests conducted after workplace accidents. Of U.S. workers tested by Quest, traces of cocaine were found in 0.28% of tests. The share of positives from post-accident tests was more than twice as high as the rate from pre-employment assessments.  Source: The Wall Street Journal 5/16/17

2018 HSA contribution amounts announced by IRS: The annual contribution limits for health savings accounts (HSAs) and the minimum deductibles and maximum out-of-pocket limits for an HSA-eligible high-deductible health plan (HDHP) will be increased for inflation, according to Revenue Procedure 2017-37. For self-only plans, the contribution limit (employer + employee) for calendar year 2018 is $3,450; this represents a $50 increase over the 2017 limit. For family plans, the 2018 limit is $6,900, a $150 increase from 2017. For 2018, the IRS is defining an HDHP as one with an annual deductible of not less than $1,350 for self-only coverage or $2,700 for family coverage (compared to $1,300 and $2,600, respectively, for 2017). Annual out-of-pocket expenses (deductibles, copayments, and other amounts not including premiums) for 2018 cannot exceed $6,650 for self-only coverage or $13,300 for family coverage (versus $6,550 and $13,300). Note that the 2018 out-of-pocket limits are different for Affordable Care Act compliance, at $7,350 for self-only plans and $14,700 for family plans, as indicated in the U.S. Department of Health and Human Services’ “Notice of Benefit and Payment Parameters” rule (81 Fed. Reg. 94058, Dec. 22, 2016).  Source:  HR Daily Advisor 5/17/17, IRS.gov

Having just one employee in Europe could trigger privacy law:  On April 16, 2016, the EU adopted the General Data Protection Regulation (GDPR) which largely rewrites and harmonizes the European legal framework of data protection. The new regulation will become applicable in May 2018. If your group of companies has any (even just one) EU-based employees, and it processes (i.e., collect, use, transfer or electronically store) personal data of this employee, the GDPR may apply. Personal data includes information that is typically considered personal such as an employee’s name, address, income details and medical condition, but also includes an employee’s computer or device IP address, device identifiers, or other “unique identifiers.” Even if the employer offers certain services which gives access to such personal data, such as an IT helpdesk, server access, etc., the GDPR could apply. To prepare, work with legal counsel to conduct an internal GDPR review to determine which department or which companies (e.g. IT help desk, HR, accounting, etc.) are in scope for GDPR compliance obligations.  Evaluate current compliance and gaps to be resolved by May 2018, and set up the necessary structure for compliance with the GDPR.  Source: Kelley Drye & Warren LLP  5/15/17

Do you collect biometric data?   If so, are you complying with the law?  Biometric data may include facial characteristics, hand geometry, a retina/iris scan, a fingerprint or a voiceprint. Employers often collect and use biometric data to establish records of employee hours, to restrict access to specific areas, computer systems, data or devices, to provide security and to promote employee health, including wellness programs. Employers who use biometrics should be mindful of regulations that impact their ability to collect, retain and use biometric data. Numerous states, including Iowa, Michigan, Nebraska, Texas and Wisconsin, have data breach notification laws that require notifications relating to the disclosure of biometric data, and more states are considering biometric privacy laws.  To mitigate potential risks, employers should consider: 1) Creating and regularly updating processes to inform employees about the collection, retention, storage and use of biometric data; 2) Creating and regularly updating processes to obtain employee consent to the collection of such data; 3) Drafting, regularly updating, and distributing policies to properly address the collection, retention, storage and use of biometric data; 4) Implementing and regularly monitoring the adequacy of data security systems to protect biometric data; and 5) Developing and regularly updating policies to address the retention and regular destruction of biometric data.  Source: Fisher Phillips 5/16/17

Are you considering programs for assisting student debt issues? Given the dearth of qualified workers, one benefit that should be considered is helping reduce the student debt burden as an attraction and retention tool.  Student debt has more than tripled as a share of total debt owed by U.S. households in less than 15 years, new data shows.  Student loans made up just 3.3 % of total household debt in 2003, for a sum of $240.7 billion, according to estimates on Wednesday by the Federal Reserve Bank of New York. That sum is now about $1.3 trillion, or about 10.6% of all U.S. household debt. The jump reflects higher tuition and campus-related costs, more people seeking higher education (partly because of the Baby Boom), and declines in state appropriations to public colleges and federal grants to students relative to rising college costs. One in six American adults, or 44 million people, has a student loan. Graduation rates haven't increased much over the past decade. What's more, the increase in pay in recent years for bachelor's degree holders has barely outpaced inflation. That leaves a generation of young workers with student debt burdens that far exceed what their predecessors had to repay.  Source:  Bloomberg 5/18/17

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