Another notable opinion from the U.S. Department of Labor letters issued on March 14 is that workers are not required to be paid for community service they perform through an employer program unless they are forced into volunteering. An employer submitted a question to the DOL asking if it had to compensate employees who are allowed to pick their own or employer sponsored volunteer activities. The employer pays them for activities that occur during the work day or on the employer’s premises, but much of the volunteer time falls outside of working hours.
Yesterday, the U.S. Department of Labor (DOL) issued three opinion letters. This is the first of a series of blog posts addressing the letters.
Notably, the DOL clarified that employers cannot allow employees to take paid leave in lieu of FMLA leave. As you know, the FMLA allows workers to take up to 12 weeks of unpaid time off to care for family members or receive treatment for their own illnesses.
The IRS recently released Technical Advice Memorandum 201903017 (the TAM) providing guidance to IRS personnel as to whether the value of meals and snacks provided without charge by an employer to its employees constitutes taxable wages.
The employer in the TAM provided free meals to all employees, contractors and guests. No distinction was made as to the employee’s position, job duties, responsibilities or other circumstances. Unlimited drinks and snacks were also provided to all employees, contractors and visitors in unrestricted snack areas.
Good news! Last night, the New York State Department of Labor issued a statement that it would not pursue implementing the proposed call-in pay regulations we wrote about previously (click here for that blog post). This issue is likely headed to the New York State Legislature.
Another recent NLRB decision narrows the standard for what constitutes protected activity. In that case, a manager asked a group of airport baggage handlers to help unload the equipment of a soccer team. One of the baggage employees said they’d done a similar job previously and didn’t receive a tip. When the equipment arrived, the baggage handlers didn’t help unload, and the employee who complained about the lack of tip was fired. He filed a complaint alleging he was fired for complaining about the lack of tip, which he claimed was protected activity.
On January 25, 2019, the NLRB issued a Decision wherein it found that van operators at the Dallas/Fort Worth airport are independent contractors, not employees, and thus could not unionize. In doing so, the NLRB overruled its own 2014 FedEx Home Delivery Decision that it said gave insufficient weight to workers’ entrepreneurship opportunities, and too much weight to right-to-control factors, in deciding the issue. Going forward, where appropriate, all the traditional common law independent contractor factors will be evaluated “through the prism of entrepreneurial opportunity”.
On January 15, 2019, the New York Legislature passed a bill that protects transgender people from discrimination and adds gender identity or gender expression as a protected class in employment, housing, places of public accommodations and other areas. After more than a decade of attempts, the Gender Expression Non-Discrimination Act (GENDA) awaits Governor Cuomo’s expected signature.
As the government shutdown persists, private employers continue to be affected. As we discussed earlier this month, E-Verify remains shut down. Employers must continue to manually verify eligibility through the use of I-9 forms. In addition, the EEOC is mostly shut down, other than a relatively small number of employees still in place to receive new charges so potential charging parties don’t miss the statute of limitations. Federal courts remain open, but cases involving the federal government are stayed and court staff is reduced.
Employers who use E-Verify to comply with their I-9 obligations have not had access to the system since December 22, 2018. Crucially, however, those I-9 obligations do not cease just because the E-Verify system is down. Thus, employers are advised to carefully examine new employees’ I-9 documents and complete I-9 sections 1 (by first day) and 2 (by third day) now, and then comply with the E-Verify 3-Day Rule as directed by the Division of Homeland Security (DHS) E-Verify website once it is back online.
Governor Cuomo vetoed the bill we described in our last post that would have added bereavement leave to the list of acceptable reasons to take NY Paid Family Leave. Cuomo indicated that he generally supports increased bereavement leave but felt that the bill, as written, would lead to an “extreme expansion” of Paid Family Leave. Cuomo argued the bill would necessitate an increase in employee contributions, and felt the financial burden of increased contributions might be too much for some low-wage and middle-class workers.
YOUR ASSISTANCE IS NEEDED! Please email your representative and ask him/her to co-sponsor the Neal/Gerlach House Concurrent Resolution! Representatives Richard Neal (D-MA) and Jim Gerlach (R-PA) will introduce a bi-partisan House Concurrent Resolution the week of February 4, 2012, that highlights the important role employer-sponsored retirement plans play in helping Americans save and plan for retirement. To date, SHRM has assisted in garnering 56 co-sponsors! Click HERE to see if your member has co-sponsored the resolution.
Please Take This Action:
If your representative has not yet co-sponsored, please write to him/her using SHRM’s HRVoice program, follow these steps:
1. Log onto the alert on the SHRM Advocacy Action Center by visiting HERE
2. Please personalize your message with your own story
3. Be sure to include your complete home mailing address.
This summer, President Obama signed into law legislation that creates a bipartisan, bicameral Congressional Joint Select Committee on deficit reduction. The committee, known as the “Super Committee,” is charged with reducing the federal debt by at least $1.5 trillion during the next 10 years by looking at current spending and tax code policies. Because of their tax-deferred status, employer-provided benefits such as retirement and health care plans may come under scrutiny by the Super Committee.
Employer-provided retirement plans are a key component of our nation’s retirement system and produce significant retirement benefits for America’s working families. Together with Social Security and individual savings, employer-provided retirement plans produce significant retirement benefits for America’s working families. There are approximately 670,000 private-sector defined contribution plans covering 67 million participants and over 48,000 private-sector defined benefit plans covering 19 million participants.
Employer-sponsored health care and retirement benefits, because of their tax-deferred status, create the largest annual loss in revenue to the federal treasury. As a result, it is anticipated that public policy efforts to reform the tax code and bring down the federal deficit will involve an examination of employer-sponsored benefits, including retirement plans, health care benefits and educational assistance programs. Given the large loss of revenue to the U.S. Treasury, employer-sponsored pension plans are an attractive revenue-raising target for Congress.
SHRM believes that a comprehensive and flexible benefits package is an essential tool in recruiting and retaining talented employees. Every American employee should be provided the opportunity to save for retirement. The government should facilitate and encourage voluntary employer-sponsored plans, as well as individual savings through consistent tax incentives and simplified regulations.
SHRM supports the House Concurrent Resolution to be introduced by Rep. Neal and Rep. Gerlach. The resolution declares the benefits and importance of employer-sponsored retirement plans.
The House Concurrent Resolution has not yet been introduced, and therefore, has yet to be assigned a number. However, the draft legislation has been sent to every member of the House of Representatives. Please ask your Representative to co-sponsor this measure prior to introduction! This measure states many important facts, most importantly:
Should you have any questions regarding this resolution, please contact Kathleen Coulombe, SHRM’s Senior Associate, Government Relations at firstname.lastname@example.org.