Quick Hits - June 12, 2019 - American Society of Employers - Heather Nezich

Quick Hits - June 12, 2019

Walmart calls on feds to increase minimum wage: Walmart CEO Doug McMillon thinks the federal minimum wage is "too low." Now the head of the country's largest private employer is calling on Congress to raise it beyond $7.25 an hour. "The federal minimum wage is lagging behind," Doug McMillon said at Walmart's annual shareholder meeting in Bentonville, Arkansas. Congress has not raised the minimum wage since 2009, but McMillon's surprise comments may give lawmakers an incentive to act. McMillon's call may also ease pressure on Walmart. Senator and presidential candidate Bernie Sanders, along with workers' rights groups, have called on Walmart to raise its wages above the company's current $11-an-hour minimum.  Any plan to increase the minimum wage, however, should take into account cost of living differences around the country "to avoid unintended consequences," McMillon said. He also noted that a hike may need to be phased in over time.  Note that Walmart competitors Amazon and Costco both pay a minimum of $15 per hour. Source:  CNN 6/5/19

No thank you note, no hire: It’s always nice to receive a thoughtful thank you note from a candidate after you interview them. But if they don’t send one, it’s not a dealbreaker...right?  For Jessica Liebman, the executive managing editor of Insider Inc., it is. The thank you note, in her opinion, can determine a candidate’s chances of getting the job. In a recent article for Business Insider, Jessica claims that using the thank you email as a “barrier to entry” can be beneficial to companies. She even advises hiring managers to “never make an offer to someone who neglected to send one.”  The argument for the thank you note: This gesture may show a candidate really wants the job and reveals important soft skills.  According to Jessica, a thank-you email reflects two things about the candidate. First, she believes that it “signals that the person wants the job,” while failing to send one indicates they’re not really invested. The argument against the thank-you note rule was the prospect of inviting bias into the process. Candidates who know to send a thank-you email after an interview tend to have had some job training, which can vary widely in quality and availability across different cultural backgrounds and social classes. Some schools don’t really teach it at all, while others will rigorously coach their students to prepare them for the job market.  Source: Linkedin 6/3/19

Can a one-hour diversity training have impact:  Can an hour of training make a difference when it comes to decades of discrimination?  Sephora, a nationwide beauty-products supplier dealing with accusations of racial profiling, will soon find out.  The company closed all of its stores on June 6th so its 16,000 employees across the country could undergo diversity-training workshops. The company decided on the training after singer SZA said she was recently profiled at one of the chain’s California stores. According to a CBS News report, SZA tweeted in April that while she was shopping at the cosmetics store, security was called on her to make sure she wasn’t stealing. “We had a long talk,” the singer wrote in her tweet. John Arendes, vice president and general manager of global compliance solutions at Skillsoft, says that it’s great to see organizations putting a corporate-wide focus to preventing harassment in the workplace.  “It certainly sends a message when an organization will shut down its business to ensure employees understand the importance of the subject,” he says.  Source:  HR Executive 6/5/19

New study shows educational payoff benefits play a role in applicant decision:  More than one-half of working Americans said employer-provided student loan repayment benefits would play a role in how they evaluate job opportunities, according to new research from SHRM—the Society for Human Resource Management.  The survey’s finding from the NORC AmeriSpeak Omnibus Panel comes as SHRM is advocating for H.R. 1043/S. 460, the Employer Participation in Repayment Act. This bipartisan, bicameral bill would expand current employer-provided education assistance to include student loan repayment as a type of tax-free benefit.  A Federal Reserve study found that student loan debt has increased by 96 percent since 2010, which signals that more people entering the workforce are graduating with significant student debt. As a result, employees are seeking benefits such as employer-provided education assistance and student loan repayment. In this competitive labor market, some employers are already restructuring benefit offerings to attract and retain talent. For more on this topic, see this week’s related article.  Source:  CCH 6/4/19

2020 HSA and HDHP limits announced by IRS: On May 28, 2019, the Internal Revenue Service (IRS) announced in Revenue Procedure 2019-25 the 2020 health savings account (HSA) annual contribution limit and the 2020 high deductible health plan (HDHP) definitional limit per Internal Revenue Code Section 223. Limits have been increased for 2020 as follows:  For 2020, a HDHP is defined as "a health plan with an annual deductible that is not less than $1,400 for self-only coverage and $2,800 for family coverage."  For 2020, HDHP annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $6,900 for self-only coverage and $13,800 for family coverage.  The 2020 annual contribution limit to an HSA for individuals with self-only coverage under a HDHP is $3,550, and for an individual with family coverage under a HDHP, the HSA contribution limit is $7,100.  The following table is a comparison of the 2019 and 2020 limits:

2020 Individual

2020 Family

2019 Individual

2019 Family

HSA Contribution Adjusted Limit

$3,550

$7,100

$3,500

$7,000

HDHP Deductible Adjusted Limit

$1,400

$2,800

$1,350

$2,700

HDHP Out-of-Pocket Adjusted Limit

$6,900

$13,800

$6,750

$13,500


Employers that sponsor a health plan that includes an HDHP/HSA option may want to revise their plan participant communications to make sure they are updated accordingly, as well as ensure that 2020 open enrollment materials properly reflect these limits.  Source:  Ogletree Deakins 6/4/19

Governor Whitmer does some reorganizing:  Governor Whitmer issued an Executive Order last week reorganizing several state agencies with responsibilities pertaining to talent, economic development, and labor. The stated goal of the reorganization is to streamline programs and better coordinate efforts to achieve the Governor’s statewide goal of increasing the number of Michigan residents with a post-secondary credential.   The Department of Talent and Economic Development (TED) has been abolished. Effective August 11, the new Department of Labor and Economic Opportunity (LEO) will be led by Jeff Donofrio, current executive director of workforce development for the city of Detroit. The new LEO will consist of the following agencies: 

  • Michigan Economic Development Corporation (MEDC) and the Michigan Strategic Fund (with a reorganized Board)
  • Unemployment Insurance Agency
  • Workforce Development Agency
  • Workers’ Compensation Agency and Board of Magistrates
  • Michigan Occupational Safety and Health Administration (MIOSHA)
  • Wage and Hour Division 
  • Employment Relations Commission
  • Michigan State Housing Development Authority (MSHDA), State Landbank Fast Track Authority and State Historic Preservation Office
  • Michigan Rehabilitation Services
  • Michigan Office of New Americans, Asian Pacific American Affairs Commission, Commission on Middle Eastern American Affairs and Hispanic/Latino Commission of Michigan
  • Bureau of Services for Blind Persons
  • Various entities and responsibilities for adult education, STEM advisory and youth employment 

Of particular note, the directive also separates the Michigan Compensation Appellate Commission, which currently handles unemployment and workers’ comp appeals, into two new bodies: the Workers’ Disability Compensation Appeals Commission and the Unemployment Insurance Appeals Commission. This is likely to have a significant impact on workers’ compensation appeals. 

Please login or register to post comments.

Filter:

Filter by Authors

Position your organization to THRIVE.

Become a Member Today