Quick Hits - April 29, 2020 - American Society of Employers - ASE Staff

Quick Hits - April 29, 2020

Quick HitsPandemic raises the need for caregiving benefits:  An AARP survey found there were about 41 million family caregivers in the U.S. in 2017, providing about 34 billion hours of unpaid care for other adults. The economic value of their efforts was estimated at $470 billion.  Of those who are caregivers, 60% also work. On top of their jobs, they provide an average of 20 hours of care each week.   A March survey of more than 250 employers by the National Alliance of Healthcare Purchaser Coalitions found almost 60% of respondents were offering unpaid family leave, and more than 45% were offering paid family leave to employees with caregiving responsibilities.  “The caregiver burden is something that employers are recognizing,” says Michael Thompson, the alliance’s president and CEO.  However, the leave seems limited.  A February survey of 113 large employers by the Business Group on Health found 35% of respondents offer paid caregiving-leave benefits, and 28% more were considering adding such a benefit by 2022.  For roughly 40% of companies, the benefit is also available if an employee is caring for a sibling, grandparent, or parent of a spouse or domestic partner. Offering a paid caregiving benefit “serves as a differentiator” for employers, says LuAnn Heinen, vice president of the Business Group on Health.

CARES Act reminder – It allows over the counter spends by HSAs: The CARES Act lifted the prohibition on pretax reimbursement for over-the-counter drugs without a doctor’s prescription — a ban that was enacted under the Patient Protection and Affordable Care Act (ACA). Since 2011, the restriction had applied to health savings accounts (HSAs), Archer medical savings accounts (MSAs), and group health plans, including health flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs). Over the counter (OTC) medications, including non-prescription pain relievers and cold/flu medications, may now be purchased with an FSA, HSA, or HRA without a prescription. Menstrual care products have also been added to the list of qualified healthcare expenses. 

Michigan reports interest rate for taxes for 2nd half of 2020:  The interest rate for overpayments and underpayments of Michigan taxes is 5.63% for the period of July 1, 2020 through December 31, 2020. (Revenue Administrative Bulletin 2020-5, Michigan Department of Treasury, April 15, 2020).

Working at home – feel like you are working longer? With many living a few steps from their offices, America’s always-on work culture has reached new heights. The 9-to-5 workday, or any semblance of it, seems like a relic of a bygone era. Long gone are the regretful formalities for calling or emailing at inappropriate times. Burnt-out employees feel like they have even less free time than when they wasted hours commuting. A month and a half later, people are overworked, stressed, and eager to get back to the office. In the U.S., homebound employees are logging three hours more per day on the job than before city and state-wide lockdowns, according to data from NordVPN, which tracks when users connect and disconnect from its service.  The contours of the workday have changed, too. Without commutes, wake-up times have shifted later, NordVPN found, but peak email time has crept up an hour to 9 a.m., according to data from email client Superhuman. Employees are also logging back in late at night. Surfshark, another VPN provider, has seen spikes in usage from midnight to 3 a.m. that were not present before the COVID-19 outbreak.  Source: Bloomberg 4/23/20

Call centers hiring more individuals with disabilities: Call centers have had to adapt swiftly as the pandemic has dealt them a double blow. Call volumes are “off the charts” in several industries, including health care, insurance, technology, and retail, said Michele Rowan, president of Customer Contact Strategies, a consulting company that specializes in remote work and call centers.  But many of the people who would normally answer those calls either can’t get to work or are not equipped to work from home. The National Telecommuting Institute, a nonprofit that works with the Social Security Administration to fill telecommuting jobs with people who have disabilities, has handled 30% more job postings over the past month than it did a year ago, and the numbers could be much higher in the next month, said Alan Hubbard, the institute’s chief operating officer.  Founded in 1995, the telecommuting institute trains disabled people and helps them acquire the necessary equipment and broadband connections. The group also pairs beneficiaries with mentors who help them update their resumes, prepare for interviews and make the transition to work. Call center work can be grueling, and some companies that employ lower-wage, lower-skilled workers have turnover rates of 30% to 45%. Some employers said the telecommuting institute’s beneficiaries were less likely to quit.  Source: NYTimes 4/26/20

Union representation is reaching lowest levels: According to an analysis by Bloomberg Law Daily Labor Report, the Teamsters Union lost almost 65,000 members in 2019, the largest decline in the union’s membership in 20 years. The Service Employees International Union (SEIU) added almost 45,000 members.  The analysis was based on a review of recently released annual LM-2 reports filed by unions with the U.S. Department of Labor. (The LM-2 reports contain detailed financial and other information about the union and can be accessed on the DOL’s website. For most unions, the deadline for filing the financial reports is March 30, but the DOL has said the deadline will be extended if a union has a reason related to COVID-19.) Besides the SEIU, the Laborers International Union, and the American Federation of State, County, and Municipal Employees (AFSCME) also added members.  The United Food and Commercial Workers Union, the United Steelworkers Union, and the American Federation of Government Employees lost members.  Union representation in the private sector in 2019 was at 6.2%, an all-time low.  Source: Jackson Lewis 4/26/20

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