Is the repeal of the ACA dead? Don’t count anything out. It may be that a bill will still be passed. More likely, a bipartisan approach could be taken to shore up the weaknesses in the current system, although the Republicans still want to repeal the employer mandate. With the tax bill next up, changes there could be highly impactful. From Reagan to Obama, it has been proposed to change the exclusion from gross income for employer-provided health insurance, although employees would likely get a deduction matching the cost. As it would be a part of income, both employee and employer would be responsible for payroll taxes on the attributable income amount as opposed to a deduction by the employer as an expense. If so, this change will likely have a major impact on how employers provide benefits to their employees as employee costs will increase and may stifle wage increases, although total compensation will increase…
Highly skilled professionals want more meaningful work: Korn Ferry’s July 2017 survey of nearly 1,000 professionals and executives found that more than two-thirds of respondents (68%) said that the top reason highly skilled professionals would choose one employer over another is the promise of meaningful work. Only 4% said better compensation is the top reason these professionals would choose one employer over another. When asked why highly skilled professionals would leave an organization, the majority (53%) said the top reason would be a lack of their organization’s willingness to recognize the value of their expertise. The survey also found that the vast majority of respondents (77%) say there is not a clear path for advancement for highly skilled professionals, and 78% say their organization does not have a way to reward them other than a raise or promotion. Source: CCH 7/31/17
Employer contribution to retirement benefits drop from 2001 to 2015: Employers cut their contributions to workers' retirements by a quarter from 2001 to 2015, according to a new report by the consulting firm Willis Towers Watson. The biggest driver: the decline of traditional defined-benefit pensions, replaced by stingier, 401(k)-style, defined-contribution plans. Retirement benefits—including employer contributions to pensions, 401(k)s, and retiree health-care benefits—fell from 9.1% of worker pay in 2001 to 6.8% in 2015. Spending on traditional pensions plunged 76%, to less than 1% of worker pay. Medical benefits for retired workers became increasingly scant, falling from 1.2% of worker pay to just 0.2%. On the other hand, some employers have greatly increased 401K contributions in such hot areas as technology to increase the attractiveness for recruitment. At the same time, spending on current workers' health insurance soared, Willis Towers Watson said. To keep up with the rising cost of health care in the U.S., employers doubled their spending on health care as a percentage of employees' pay, from 5.7% in 2001 to 11.5% in 2015. Source: Bloomberg 7/19/17
Proposed DOL 2018 budget moves out of House Appropriations Committee: On July 19th, the House Appropriations Committee approved a funding bill that would give $10.8 billion in discretionary appropriations to the Labor Department, $1.3 billion below the FY 2017 enacted level. Within the DOL, The Employment Training Administration would get $8.5 billion; a decrease of $1.5 billion below last year’s enacted level and $848 million above the budget request. The Job Corps would receive $1.69 billion, a decrease of $16 million over the 2017-enacted level and $239.7 million above the budget request. The Veterans Employment and Training Service would get $284 million—$5 million above the FY 2017 level. The Mine Safety and Health Administration would be funded at $360 million, $14 million below the FY 2017-enacted level. It also includes a cut of $10 million to $217,500,000 for the Wage and Hour Division and a cut of $10 million to $94.5 million for the Office of Federal Contract Compliance Assistance Programs. OSHA’s budget would drop over $20 million to $531,470,000.
DOL regulatory agenda released: On July 20th, the Trump administration issued its regulatory blueprint for 2017. The agenda includes rescinding a 2011 Wage and Hour regulation that prohibited certain employer tip-pool arrangements in the service industry, regulations by Employment and Training Administration by May 2018 to expand apprenticeships by streamlining the registration process, and a rule by the Office of Labor-Management Standards (OLMS) to re-establish the “Form T-1” that required union trusts to file annual spending reports. This re-establishing of the Form T-1 would impact credit unions, strike funds, training funds, and apprenticeship programs that have never been subject to reporting mandates. Another action would reinstate another OLMS rule from 2003 that was overturned by the Obama administration that would hold public sector unions responsible for filing annual spending reports if they were subordinates of national or international unions that were covered by the Labor-Management Reporting and Disclosure Act. Another rule for drug testing by states to determine eligibility for unemployment compensation is also being proposed. Surprisingly, the Office of Federal Contract Compliance Programs (OFCCP) various rules, including a controversial 7% workforce utilization for Individuals with Disabilities and LGBT regulations, were not included for repeal or replacement in this go-around. Source: BNA 7/21/17
Is the traditional workday a relic of the past?: According to a new poll by CareerBuilder, the traditional eight-hour workday may soon be the exception rather than the rule, Overall, more than 3 in 5 workers (61%) say the traditional 9-5 workday is an idea of the past, a belief held more so by those ages 45-54 (68%), compared to those 18-24 (45%), 25-34 (59%), 35-44 (61%) or 55+ (64%). Broken down by industry, those in leisure and hospitality are most likely to think traditional hours are outdated (75%), followed by those in sales (64%) and IT (62%). Working off the clock is common. Overall, nearly half of workers (48%) keep working off the clock – a trait more common in men (53%) than women (43%) and those ages 18-24 (52%) than any other age group – 25-34 (45%); 35-44 (48%); 45-54 (49%); 55+ (46%). Around half of workers (52%) check or respond to emails outside of work. If overtime eligible employees fall under this category, the question is whether there is sufficient documentation to support claims of OT. Source: CareerBuilder 7/27/17