HR CORNER HRFocus June 2015 THE NEW CALIFORNIA FAMILY RIGHTS ACT BY MARINA A. GALATRO, PHR-CA, SHRM-CP SENIOR HUMAN RESOURCES CONSULTANT WILLIS HUMAN CAPITAL PRACTICE HUMAN CAPITAL PRACTICE www.willis.com Effective July 1, 2015, amendments to the California Family Rights Act (CFRA) regulations are meant to clarify a number of confusing rules, improve employees and employers understanding of their rights and duties, and mirror CFRA regulations more closely to the federal FMLA. For those that have ever administered leave in California (or FMLA), this should be exciting news it is not uncommon for employers to struggle with administering and coordinating leave laws. Before you jump up and down with excitement and relief, let me highlight a few key changes to the new CFRA regulations. Requesting Leave. If an employee communicates a need for leave that would qualify under CFRA, an employer must determine whether CFRA is applicable and whether the employee seeks to take CFRA-protected leave. It is the employer s responsibility to address situations where an employee s request for CFRA leave is not clear. For example, if an employee asks for vacation, paid time off, or offers to resign and informs the employer that the reason for the request is CFRA-qualifying, the employer is permitted to question the employee to determine whether CFRA leave is being sought and obtain the necessary information concerning the leave. Notice Requirements. Employers must respond to leave request within five business days (mirrors FMLA). Used to be 10 calendar days. Remote Employees. For employees who have no fixed worksite, an employee s worksite is that which is considered his / her home base. Employers make these assignments, and therefore will have this information. For example, if a salesperson works from home in California, but reports to and receives assignments from the corporate headquarters in New York, the New York headquarters, not employee s home, would constitute the worksite from which there must be 50 employees within a 75-mile radius in order for the salesperson to be eligible under the CFRA. HR CORNER The New California Family Rights Act... 1 How to Engage Employees on a Budget... 2 Massachusetts Passes Mandatory Paid Sick Leave... 4 HEALTH OUTCOMES Maximizing Carrier Resources... 5 LEGAL AND COMPLIANCE HIPAA Privacy Rules and Workplace Wellness Programs...7 IRS Announces HSA Inflation Adjustments for 2016... 9 SINCE YOU ASKED Adjustment of 9.5% Affordability Standard... 10 WEBCASTS... 12 CONTACTS... 13 Continued on page 2 1
HR Corner continued from page 1 Reinstatement Rights. Reinstatement rights are stronger. Employees returning from CFRA leave must be reinstated to their prior position even if the employer restructured the position to accommodate the employee s leave. In addition, if at the time of reinstatement an employee is no longer qualified for a position because of an inability to attend a course, renew a license, or satisfy another prerequisite due to his or her leave, the employee must be given reasonable opportunity to fulfill those conditions. The new regulations also require the employer to determine whether an extension of leave would constitute a reasonable accommodation where the employee has a serious health condition that also constitutes a disability under the California Fair Employment and Housing Act (FEHA) and cannot return to work at the conclusion of his or her CFRA leave. Benefit Continuation. The new regulations expand the continuation of group health coverage during CFRA leave. The new regulations clarify that pregnant employees are entitled to the continuation of health insurance benefits for the entire duration of PDL and any CFRA-bonding time. The 12 weeks of coverage under PDL does not fulfill the benefit coverage requirement under CFRA. This means that an employee taking PDL/FMLA leave and CFRA leave for baby bonding would be entitled to 24 weeks of benefit coverage. Medical Documentation. The employer is not permitted to have direct access to an employee s treating physician without written authorization. Unlike the FMLA, California employers may only contact an employee s health care provider to authenticate or validate a medical certification. Changes to Forms. Certification of Health Care Provider form to include safe harbor language of the California Genetic Information Nondiscrimination Act of 2011 (CalGINA). The new regulations also revise the form provided to pregnant employees (Notice B for CFRA-covered employers). What should you do? Review the new regulations and consult with employment counsel. Employers should also review and update their CFRA policies, posters, handbooks and forms to conform to the amended regulations. For more information on the CFRA changes, including the final text, visit the DFEH website HERE. HOW TO ENGAGE EMPLOYEES ON A BUDGET BY LISA BEYER SENIOR COMMUNICATION CONSULTANT WILLIS HUMAN CAPITAL PRACTICE Benefit communicators agree that even the best benefit program, when poorly communicated (or not communicated at all!), has little value. It s true. Unfortunately, many employers spend millions on their benefit programs but fall short when it comes to educating their employees. According to a 2014 report by Aflac 1, only 9% of employees believe human resources has communicated benefit information effectively and 65% said their employers sent benefit-related information fewer than three times in a year. A survey by Benz Communications 2 revealed that 64% of employers distribute information only during open enrollment. Keep in mind that these are only a few of the changes to the new CFRA regulations. Although many of the changes simply harmonize CFRA and FMLA, employers still need to remember California s unique leave rules. For example, FML and CFRA do not run concurrently when employee is out of work on PDL. And under the CFRA, employers many not obtain a second opinion for time off related to a covered family member s serious health condition. 2 Continued on page 3
HR Corner continued from page 2 No wonder employees are confused, choose the same benefits year after year, and rarely take advantage of valuable benefits such as flexible spending or health savings accounts. Your employees need to be aware of the benefits you offer and understand how to use them to appreciate their value. A MetLife study 3 reports that 50% of U.S.-based employees said benefits are the reason they will stay with their current employer. So while it makes sense to communicate effectively and often, for some organizations, that s easier said than done. Here are five tips to help you begin developing engaging communication materials, even if you have little time and no budget. Use carrier communication materials, including flyers, posters, emails and more, available on their public websites. Many have free videos available on YouTube. You can use these formatted, professionally written pieces as is or borrow content for emails and enrollment guides (attribution required) to develop your own flyers and posters. Post them in break rooms, rest rooms and entrances or consider desk drops. Email links to the videos or use them in benefit meetings. Don t forget about carrier apps and cost calculators for instant access to plan and provider information and decision-making tools. itunes and Google Play feature hundreds of free apps, including itriage, WebMD, Health News and more. Access info from organizations such as the Centers for Disease Control, the American Cancer Society or the National Coalition on Business Health (which offers robust employee communication materials) to boost your benefits and wellness education. Take advantage of free and highly effective group and one-on-one meetings with employees. A simple PowerPoint presentation with a motivated presenter is an effective educational tool. Provide talking points to managers and supervisors so they can conduct mini-enrollment meetings with employees, if that makes more sense for your organization. If your employees use email at work, you re in luck. Stick to one topic and try to condense information into two to three paragraphs. If you can invest in a graphic format for your emails, that s even better. Educational infographics are high level, which is what employees want today, and graphically appealing which helps readers easily digest the information. (They can scroll through the information.) You ve probably seen infographics in magazines and other publications in the past few years they are geared for a sound bite audience that doesn t have time to read through a lot of complicated information. When sending an infographic, write active, action-oriented subject lines: Three steps you must take during open enrollment (which begins today). PUTTING IT ALL TOGETHER Spend some time gathering information that relates to your employee population and determining key messaging you want to share, actions you want to encourage, and the results you hope to achieve. Decide how you will share information with your employees (emails, intranet, print, mail, meetings) and then determine how you will cascade your communications materials throughout the year. Communicating beyond open enrollment is more effective for motivating employees to make better choices. ALWAYS REMEMBER TO FOCUS ON WHAT S IN IT FOR ME FROM THE EMPLOYEE S PER- SPECTIVE. THEY RE THINKING WHY SHOULD I READ THAT NEWSLETTER OR THAT EMAIL? It s also important to identify your audience to understand how they might best receive your messages. We know that more mature audiences still like to hold paper in their hands and read it. However, younger people have grown up with smart phones and tablets and prefer texting to talking, and reading online instead of in a printed book or newspaper. And it s obvious that if you have a workforce that sits at desks and works on computers, you can use emails and videos to communicate that s not suitable if your employees are fabricating products, driving a truck or standing on a sales floor. Always remember to focus on what s in it for me from the employee s perspective. They re thinking Why should I read that newsletter or that email? Am I getting a benefit from doing so, almost every time? Make sure your communications deliver that benefit. Use the right tools. If your audience likes to receive information via email, use email. If the employee s spouse tends to make the benefit decisions, then mail materials home. Continued on page 4 3
HR Corner continued from page 3 COMMUNICATION BENEFITS EMPLOYEES (AND YOU, TOO) Effective communication educates employees and promotes wellness by helping them be better health care consumers. When employees know the value of the benefits available to them, their morale and engagement increases, which serves to improve recruitment, retention or other behaviors that enhance your bottom line. Creativity and a little planning can make a big difference in your ability to help your employees understand the complex world of benefits and how they can use them to their best advantage. The not-so-surprising bonus? Your organization benefits as well. 1 2014 Aflac Workforce Report http://workforces.aflac.com/overview.php 2 Inside Benefits Communication Survey Report 2014 3 MetLife 2014 Employee Benefit Trends Study MASSACHUSETTS PASSES MANDATORY PAID SICK LEAVE BY DANIEL MARGOLIS, MBA, PHR, SHRM-CP SENIOR HUMAN RESOURCES CONSULTANT WILLIS HUMAN CAPITAL PRACTICE On November 4, 2014, Massachusetts voters approved a law that guarantees all employees the right to earn and use up to 40 hours of sick time in a calendar year, making Massachusetts the third state, (Connecticut and California are the others) to do so. The new law, effective July 1, 2015, applies to employers with 11 or more employees. Those working for employers with 10 or fewer employees also accrue and use sick leave, although it can be unpaid. Draft regulations have been issued and the attorney general of Massachusetts, Maura Healey, is hosting public hearings in May and June leading up to the effective date of the new law. Business leaders, employers and employees are encouraged to attend and participate in the hearings. What do we know for sure? All employees working in Massachusetts and elsewhere count towards the threshold of 11 or more employees. Massachusetts must be considered an employee s primary place of employment, meaning that they spend more time working in Massachusetts than elsewhere, for an employee to be covered under the law. The employer can define what it considers a calendar year. It just needs to be a consecutive 12 months and consistent to all employees. An employer is not required to provide additional sick days under the Act if it has a paid leave policy or paid time off policy that provides paid time off for the same purpose of the Act and under the same conditions. Employers are required to track the accrual and use of earned sick time. The attorney general has granted a limited exemption for employers who currently offer at least 30 hours of job-protected paid time off. The exemption will be effective from 07/01/2015 to 12/31/2015. This exemption only extends through the end of the year. Effective January 1, 2016 all employers must ensure that their respective sick, PTO and/or vacation policies fully comply with all provisions of the law. The hearings over the next few months could result in changes to the final regulations. We therefore recommend that employers keep an eye out for any changes. For a more detailed summary of the new law, including all of its requirements, please click HERE. 4
HEALTH OUTCOMES MAXIMIZING CARRIER RESOURCES BY: MEGAN SOWA HEALTH OUTCOMES CONSULTANT WILLIS HUMAN CAPITAL PRACTICE Are you aware of all the resources and services your carrier partners can offer, in most cases, free? In the 2014 Willis Health and Productivity Survey, 53% of employers reported that their organization was very effective/effective at leveraging their health insurance carriers to drive health and productivity. The remaining respondents reported they are somewhat effective or not at all effective. 1 Exhibit 1 on the next page illustrates the extent to which Willis clients are taking advantage of their medical carriers services. How does your company compare? Most, if not all insurance carriers, are offering wellness tools and resources that help promote health improvement. Knowledge of carrier offerings can help you begin a workplace wellness program or supplement your existing initiatives for little to no additional cost! Here are a few ideas to make sure you are fully aware of the tools and resources you may already have access to that can enhance your wellness initiatives: 1. Analyze and understand your medical and pharmacy utilization reports to identify your most prevalent conditions and gaps in care so you can offer appropriate programs to your organization. 2. Think beyond your medical carrier Dental, vision, 401k and disability carriers generally have educational resources that tie into your health and wellness initiatives. 3. Remember your EAP Employee assistance programs offer a catalog of free information and online resources for employees. Onsite hours may also be part of your contract and used for educational seminars. 4. Request and review annual utilization reports from all carriers for all services Employers should be aware of which services are being used by employees and which are not. Those not used should be modified or discontinued, especially if you are paying for something that is not used. Reinvest the funds in other programs. 5. Schedule an annual check in outside of your utilization meeting so you can focus completely on your carrier s programs and any recent updates; combining with other priorities often leaves too little time for a full overview. Before rolling out a carrier program or resources, make sure you know how employees feel about that carrier. If employees don t trust their insurer they may not be willing to participate in programs or pay attention to information from them. The same holds true for any program an employer offers. Assessing employee attitudes can provide valuable insight to your population and help you implement effective and engaging programs. Continued on page 6 5
Health Outcomes continued from page 5 Ongoing evaluation is also a key to maximizing your carrier resources. Plan how you will measure any initiative before it is implemented so you can track its effectiveness and modify as needed. Great resources to help you develop evaluations can be found on the Centers for Disease Control s website. 2 Other options include your carrier reports. Carriers can often track communication efforts, member calls and program participation (online, telephonic or inperson). Reports showing member interactions with specific carrier tools and resources can provide useful data for employers looking to expand or enhance offerings. Exhibit 1 Source: 2014 Willis Health and Productivity Survey 1 2014 Willis Health and Productivity Survey 2 Centers for Disease Control and Prevention: Workplace Health Promotion 6
LEGAL AND COMPLIANCE HIPAA PRIVACY RULES AND WORKPLACE WELLNESS PROGRAMS Recently issued FAQs from the Department of Health and Human Services (HHS) are a helpful reminder about the application of the Health Insurance Portability and Accountability Act (HIPAA), specifically the privacy and security rules, to certain workplace wellness programs. BACKGROUND HIPAA s privacy and security rules apply directly to covered entities (and to the business associates of such entities). Covered entities are defined as (a) health plans, (b) health care clearinghouses, (c) health care providers that conduct certain types of transactions in electronic form, and (d) endorsed sponsors of the Medicare prescription drug discount card. The HIPAA privacy and security rules apply to the workplace wellness program if it is a group health plan or part of a group health plan. HIPAA does not apply to the employer acting in its capacity as an employer. For HIPAA purposes, a health plan is an individual plan or a group plan that provides (or pays the cost of ) medical care. This definition includes virtually all arrangements that pay the cost of medical care. HIPAA regulations define group health plan as an employee welfare benefit plan under the Employee Retirement Income Security Act (ERISA), including insured and self-insured plans, to the extent that the plan provides medical care to employees or their dependents, directly or through insurance, reimbursement, or otherwise; if the plan (a) has 50 or more participants; or (b) is administered by an entity other than the employer. See 45 CFR 160.103. Under ERISA, an employee welfare benefit plan includes any plan, fund or program established or maintained by an employer to the extent that such plan, fund or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, [or] disability. See 29 U.S. Code 1002. The definition of medical care, as used in the health plan and group health plan definitions, refers to Public Health Service Act 2791(a)(2), 42 U.S.C. 300gg-91(a)(2), which provides that medical care means amounts paid for: The diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body Transportation primarily for and essential to medical care referred to in the first bullet point Insurance covering medical care referred to in the first and second bullet points As a result of this broad definition, a wide range of employee benefit plans, including medical and hospitalization plans, dental plans, vision plans, health flexible spending arrangements (health FSAs), health reimbursement arrangements (HRAs), and employee assistance plans, provide medical care and are health plans subject to HIPAA. Not all employee welfare benefit plans, however, will be covered health plans under HIPAA s privacy and security rules. For example, some ERISA plans such as those providing life insurance or long- or short-term disability do not provide medical care and thus would not be health plans under the HIPAA privacy and security rules. RECENTLY ISSUED FAQS FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) ARE A HELPFUL REMINDER ABOUT THE APPLICATION OF THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) Continued on page 8 7
Legal and Compliance continued from page 7 FAQS Workplace wellness programs can take a variety of forms. How they are structured and what benefits they offer will determine whether they are group health plans and subject to HIPAA. For example, some employers offer incentives or rewards related to group health plan benefits, such as reductions in premiums or cost-sharing amounts, in exchange for participation in a wellness program. Other programs may be completely unrelated to the group health plan or do not offer services that would deem them group health plans. For example, a program that provides employeesonly information (i.e., brochures and other materials describing the benefits of exercise, proper diet and not smoking) is not likely to be a health plan. HHS first FAQ confirms that if the wellness program is offered as part of a group health plan, the individually identifiable health information (IIHI) collected from or created about participants in the wellness program is protected health information (PHI) and covered by the HIPAA privacy rules. A group health plan sponsored by the employer is a covered entity under HIPAA, and HIPAA protects the IIHI held by the group health plan (or its business associates). While the HIPAA privacy and security rules do not directly apply to the employer, they do protect PHI that is held by the employer as plan sponsor on the plan s behalf when the plan sponsor is administering aspects of the plan, including wellness program benefits offered through the plan. The FAQ reminds employers that even if the wellness program is not part of a group health plan (and is not subject to the HIPAA rules), other federal or state laws may apply. The second FAQ addresses the protections available to wellness program participants under the HIPAA rules in regard to employer access to health information. The FAQ states that HIPAA puts restrictions on the circumstances under which a group health plan may allow an employer as plan sponsor access to PHI without an individual s written authorization. Often, the employer as plan sponsor will be involved in administering certain aspects of the group health plan, which may include administering wellness program benefits offered through the plan. Where this is the case, and absent written authorization from the individual to disclose the information, the group health plan may provide the employer, as plan sponsor, with access to the PHI necessary to perform its plan administration functions, but only if the employer as plan sponsor amends the plan documents for the group health plan and certifies to the group health plan that it agrees to, among other things: Establish adequate separation between employees who perform plan administration functions and those who do not Not use or disclose PHI for employment-related actions or other purposes not permitted by the privacy rule Where electronic PHI is involved, implement reasonable and appropriate administrative, technical, and physical safeguards to protect the information, including by ensuring that there are firewalls or other security measures in place to support the required separation between plan administration and employment functions Report to the group health plan any unauthorized use or disclosure, or other security incident, of which it becomes aware See 45 CFR 164.314(b) and 164.504(f )(1)(i) and (f )(2). Further, where a group health plan has knowledge of a breach of unsecured PHI at the plan sponsor (i.e., an unauthorized use or disclosure that compromises the privacy or security of the PHI), the group health plan, as a covered entity under the HIPAA privacy rules, must notify the affected individuals, HHS, and if applicable, the media, of the breach, in accordance with the requirements of HIPAA s breach notification rule. Where the employer as plan sponsor does not perform plan administration functions on behalf of the group health plan, access to PHI by the plan sponsor without the written authorization of the individual is much more restricted. In these cases, the privacy rule generally would permit the group health plan to disclose to the 8 Continued on page 9
Legal and Compliance continued from page 8 plan sponsor only: (1) information on which individuals are participating in the group health plan or enrolled in the health insurance issuer or HMO offered by the plan, and/or (2) summary health information if requested for purposes of modifying the plan or obtaining premium bids for coverage under the plan. IRS ANNOUNCES HSA INFLATION ADJUSTMENTS FOR 2016 On May 4, 2015, the IRS announced the health savings account (HSA) inflation adjustments for 2016. By law, the IRS must publish the annual inflation adjustments relating to HSAs no later than June 1 for the following calendar year. This chart summarizes the changes for 2016. CALENDAR YEAR 2016 CALENDAR YEAR 2015 SELF-ONLY FAMILY SELF-ONLY FAMILY ANNUAL CONTRIBUTION LIMIT $3,350 $6,750 $3,350 $6,650 HDHP MINIMUM ANNUAL DEDUCTIBLE HDHP MAXIMUM $1,300 $2,600 $1,300 $2,600 OUT-OF-POCKET LIMIT $6,550 $13,100 $6,450 $12,900 CATCH-UP CONTRIBUTION $1,000 $1,000 The Annual Contribution Limit is the maximum amount of tax-favored contributions that can be made to an individual s HSA for a calendar year. Contributions from all sources are aggregated when determining whether the limit is met. An individual may incur excise taxes on excess contributions. Catch-Up Contributions increase the Annual Contribution Limit for individuals 55 or older. The Catch-Up Contributions Limit is not inflation-adjusted. When enacted, the limit was set at $500 for 2004, with $100 annual increases. In 2009, it reached the current $1,000 maximum. The HDHP Minimum Annual Deductible and Maximum Out-of-Pocket Limit refer to features that a health plan must have in order to qualify as an HDHP. Coverage under an HDHP is one of the conditions that an individual must meet in order to be eligible for tax-favored HSA contributions. The limits on these items are also inflation-indexed, with the potential to change each year. Employers that maintain HDHPs need to know these adjustments so they can make any changes needed for their plans to remain HDHPs. The IRS announces the adjustments for HSAs much earlier in the year than it announces the adjustments for other types of benefit programs. (Inflation adjustments for most plans usually are announced in October or November. A chart of those limits appears in the Willis Health and Welfare Calendar, available from your Willis representative.) The earlier timing of the announcement for HSAs is mandated by legislation that Congress passed at the end of 2006 (see Willis s Employee Benefits Alert, Issue 91, Health Savings Account Legislation Makes HSAs More Flexible ). The legislation revised the provisions governing HSAs so that the IRS now must publish the annual adjustments no later than June 1 for the following calendar year. 9
SINCE YOU ASKED ADJUSTMENT OF 9.5% AFFORDABILITY STANDARD Recently the National Legal & Research Group (NLRG) was asked whether the IRS increase of the affordability standard from 9.5% to 9.56% applies to the affordability safe harbors under the Patient Protection and Affordability Care Act (PPACA) pay or play rules. Based on the IRS guidance to date, for now it appears that the increase to 9.56% only applies to the general household income standard and not to the safe harbors, as discussed more fully below. BACKGROUND In order to avoid the Internal Revenue Code Section 4980H(b) drop-off penalty ($3,000 annually $250 per month [as indexed for 2015 and later years] for each full-time employee for whom the employer receives a certification of premium assistance or cost-sharing reduction), the PPACA statute states that employersponsored minimum essential coverage must be, among other things, affordable. Under that law, an employer s health coverage is considered affordable if an employee s required contribution does not exceed 9.5% of the employee s household income. The statute defines household income as the modified adjusted gross income of the taxpayer and the members of the taxpayer s family. Modified adjusted gross income is defined as adjusted gross income plus certain types of income that would otherwise be excluded from the taxpayer s income (i.e., foreign-earned income and housing costs, tax exempt interest, and the excludable portion of the taxpayer s Social Security income). The IRS did not address the household income standard in its pay or play regulations. Instead, it established a choice of three safe harbors that employers could use to demonstrate compliance with the affordability standard, all of which limit the determination of affordability to employee self-only coverage. Those safe harbor affordability standards include the Form W-2 safe harbor (based on the employee s W-2, Box 1 reported wages for that year), the rate of pay safe harbor (based on an employee s hourly rate times 130 hours per calendar month), and the federal poverty line safe harbor (based on the annual federal poverty line for a single individual divided by 12). The final pay or play regulations state that each of those standards is applied by multiplying the applicable wage amount by 9.5%. Additional information about the affordability safe harbors can be found in Willis s Human Capital Practice Alert, June 2014, Employer Pay or Play Mandate - Final Regulations Explained. ADJUSTMENT OF 9.5% FACTOR UNDER THE HOUSEHOLD INCOME STANDARD The provision in the PPACA statute that established 9.5% of an employee s household income as the general affordability standard also provided for indexing of that standard beginning in 2015. Indexing of that 9.5% standard is done in the same manner as for the indexing of the percentages used to calculate the amount of premium subsidy payable to a taxpayer who qualifies for a subsidy in connection with the purchase of coverage on the public health insurance exchanges. In Revenue Procedure 2014-37 issued July 25, 2014, the IRS announced the first adjustment to the household income affordability standard by increasing 9.5% to 9.56%, effective in 2015. Subsequently on November 21, 2014, the IRS announced in Revenue Procedure 2014-62 that the household income affordability standard would increase to 9.66%, effective in 2016....FOR NOW IT APPEARS THAT THE INCREASE TO 9.56% ONLY APPLIES TO THE GENERAL HOUSEHOLD INCOME STANDARD AND NOT TO THE SAFE HARBORS... 10 Continued on page 11
Since You Asked continued from page 10 None of the above changes is applicable to the 9.5% standard used in connection with the safe harbor affordability standards, since all of those safe harbors are established by IRS regulations, and those regulations do not provide for indexing. Because indexing is hard-wired into the statutory provision governing the household income standard, that original household income 9.5% factor will continue to adjust, while the safe harbor 9.5% factor remains fixed in place under the IRS regulations at least until the IRS amends those regulations to adjust that safe harbor factor. The continuing adjustments in the household income factor provide employers with an opportunity to consider using the household income standard to determine affordability under pay or play, since the increases provide employers with more flexibility in shifting the cost of coverage to employees. Note, however, that the IRS has not provided any guidance on how to meet the household income standard other than through one of the safe harbor standards. Moreover, the PPACA health coverage reporting forms and instructions published to date only address the three safe harbors, and it is unclear how an employer would report compliance with the pay or play affordability requirement based on the household income standard. 9.56% 11
WEBCASTS HOW TO USE DATA ANALYTICS TO GUIDE HEALTH CARE REFORM COMPLIANCE TUESDAY, JUNE 16, 2015 2 PM EASTERN Presented by: Jill Spiker Senior Consultant Reporting & Analytics Consulting Human Capital Practice Tara Silver-Malyska, JD, MBA, FLMI Senior Principal Employee Benefits Attorney National Legal & Research Group Willis Human Capital Practice It s time. After countless regulatory specifications, clarifications and delays, the PPACA (The Affordable Care Act), with all its compliance mandates, must be addressed. Are you ready to evaluate and document the eligibility of your part-time and seasonal workers? Do you know which measurement method would benefit your organization the most? What tools will you use to ensure good faith compliance as well as operational efficiency? If that all seems too overwhelming to contemplate, never fear because data analytics can show you the way! During this session participants will learn: Which tools are available to help you comply with PPACA and how to make the most of them How data analytics can help guide you toward the best methods for defining eligibility How to best meet the continuing impact of Health Reform on your Human Capital strategy and the business results it could bring To RSVP, click here. NOTE: Advance RSVP is required to participate in this call. Registration ends 1 hour prior to the call start time. PTO STRATEGIES: HOW TO BALANCE COST AND CULTURE WITH A PAID TIME OFF POOL TUESDAY, JULY 21, 2015 2 PM EASTERN Presented by: Marina Galatro Senior Human Resources Consultant HR Partner Consulting, Human Capital Practice Debbi Davidson, Practice Leader HR Partner Consulting Human Capital Practice With emphasis on work/life balance and flexibility, the use of Paid Time Off (PTO) pools has increased. PTO programs can control costs, reduce unscheduled absences and improve morale, as well as simplify administration, tracking, and communication. Despite the benefits, however, many organizations struggle to transition to a PTO program, especially when integrating multiple programs (such as traditional vacation and sick leave) into a single plan. Determining policy decisions and calculating financial implications can create headaches. This interactive session will address common concerns and show participants how to analyze cost impact under different scenarios. We ll consider: Prevalence and trends in PTO design, including a review of the types of leave typically implemented, and key advantages and disadvantages of PTO pools Strategic policy design considerations, such as eligibility, accrual factors and amounts, scheduling, year-end options (including carryover, caps, cash-out, etc.), and payout at termination During this session, participants will learn how to transition to a pooled paid time off program, using: Modeling cost impact A review based on key policy design features, taking into account the cost of sick leave and unscheduled absences Planning for communication and implementation To RSVP, click here. NOTE: Advance RSVP is required to participate in this call. Registration ends 1 hour prior to the call start time. Each of the above programs has been approved for 1 recertification hour toward PHR, SPHR and GPHR recertification through the Human Resource Certification Institute (HRCI). For more information about certification or recertification, please visit the HRCI homepage at www.hrci.org. 12
KEY CONTACTS U.S. HUMAN CAPITAL PRACTICE OFFICE LOCATIONS NEW ENGLAND Auburn, ME 207 783 2211 Bangor, ME 207 942 4671 Boston, MA 617 437 6900 Burlington, VT 802 264 9536 Hartford, CT 860 756 7365 Manchester, NH 603 627 9583 Portland, ME 207 553 2131 Shelton, CT 203 924 2994 NORTHEAST Buffalo, NY 716 856 1100 Morristown, NJ 973 539 1923 Mt. Laurel, NJ 856 914 4600 New York, NY 212 915 8802 Stamford, CT 203 653 2430 Radnor, PA 610 254 7289 Wilmington, DE 302 397 0171 ATLANTIC Baltimore, MD 410 584 7528 Knoxville, TN 865 588 8101 Memphis, TN 901 248 3103 Metro, DC 301 581 4262 Nashville, TN 615 872 3716 Norfolk, VA 757 628 2303 Reston, VA 703 435 7078 Richmond, VA 804 527 2343 Rockville, MD 301 692 3025 SOUTHEAST Atlanta, GA 404 224 5000 Birmingham, AL 205 871 3300 Charlotte, NC 704 344 4856 Gainesville, FL 352 378 2511 Greenville, SC 864 232 9999 Jacksonville, FL 904 562 5552 Marietta, GA 770 425 6700 Miami, FL 305 421 6208 Mobile, AL 251 544 0212 Orlando, FL 407 562 2493 Raleigh, NC 704 344 4856 Savannah, GA 912 239 9047 Tallahassee, FL 850 385 3636 Tampa, FL 813 281 2095 Vero Beach, FL 772 469 2843 MIDWEST Appleton, WI 800 236 3311 Chicago, IL 312 288 7700 Cleveland, OH 216 861 9100 Columbus, OH 614 326 4722 Detroit, MI 248 539 6600 Grand Rapids, MI 616 957 2020 13
Milwaukee, WI 262 780 3476 Minneapolis, MN 763 302 7131 763 302 7209 Moline, IL 309 764 9666 Overland Park, KS 913 339 0800 Pittsburgh, PA 412 645 8506 Schaumburg, IL 847 517 3469 SOUTH CENTRAL Amarillo, TX 806 376 4761 Austin, TX 512 651 1660 Dallas, TX 972 715 2194 972 715 6272 Denver, CO 303 765 1564 303 773 1373 Houston, TX 713 625 1017 713 625 1082 McAllen, TX 956 682 9423 Mills, WY 307 266 6568 New Orleans, LA 504 581 6151 Oklahoma City, OK 405 232 0651 San Antonio, TX 210 979 7470 Wichita, KS 316 263 3211 WESTERN Fresno, CA 559 256 6212 Irvine, CA 949 885 1200 Las Vegas, NV 602 787 6235 602 787 6078 Los Angeles, CA 213 607 6300 Phoenix, AZ 602 787 6235 602 787 6078 Portland, OR 503 274 6224 Irvine, CA 949 885 1200 San Diego, CA 858 678 2000 858 678 2132 San Francisco, CA 415 291 1567 San Jose, CA 408 436 7000 Seattle, WA 800 456 1415 The information contained in this publication is not intended to represent legal or tax advice and has been prepared solely for educational purposes. You may wish to consult your attorney or tax adviser regarding issues raised in this publication. 14178/06/15 14