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Legislative Issues                                                   Last updated 6/15/2010

6/15/2010 -- State Legislative Alert:  Urge Your Member of Congress to Support H.R. 4855, The Work-Life Balance Award Act

YOUR ASSISTANCE IS NEEDED!  H.R. 4855, the Work-Life Balance Award Act, will come to a vote on the House floor on Tuesday, June 15, 2010.  Please contact your Member of Congress today and urge them to support this important legislation!

Background

H.R. 4855 has been introduced by Representative Lynn Woolsey (D-CA), Chairwoman of the Subcommittee on Workforce Protections.  The legislation would create the Work-Life Balance Award within the Department of Labor (DOL) to recognize employers that have developed and implemented innovative policies to enable employees to achieve a satisfactory work-life balance.  The bill establishes a nine-member, independent Advisory Board within the DOL composed of representatives of family, employee and employer groups to develop award criteria and select recipients.

SHRM testified in support of this legislation at a House Subcommittee hearing in April and has worked closely with Chairwoman Woolsey on this bill.

SHRM Position

SHRM supports the Work-Life Balance Award Act, which will help recognize and showcase those public and private organizations delivering policies and programs that help employees to better balance work and personal life obligations.  This legislation is consistent with SHRM’s workplace public policy position statement and affirms a key SHRM public policy principle-encouraging organizations to be innovative in designing flexible workplace policies can ultimately enable employers to better meet the needs of their workforce.

Talking Points

The Work-Life Balance Award Act will help highlight the importance of workplace flexibility issues.  Specifically H.R. 4855:

• Emphasizes the significance of flexible workplaces;
    
• Encourages employers to create flexible work environments which can lead to more  employee engagement, improved employee retention, better customer service, and increased productivity;
    
• Fosters the expansion of creativity and innovation in the design of work-life policies that meet the needs of employees and employers.

Action Needed-SHRM Members

Please write your Member of Congress and urge them to support H.R. 4855.  To write your elected official using HRVoice, follow these steps:

1. Log onto SHRM Online by clicking HERE.
2. Sign in using your Member ID and Last Name.
3. Once you have completed the HR Advocacy e-list form and entered the SHRM Advocacy Action Center, click the “Take Action” tab at the bottom of the featured alert highlighted in blue. 

If you continue to encounter problems with this site, please contact Bob Carragher, SHRM’s Manager of Government Relations, at Robert.Carragher@shrm.org.  

Action Needed- Chapter Members who are not National SHRM members

If you are not a SHRM member, contact your elected official in the House of Representatives today.  

Congressman Patrick Kennedy at      patrick.kennedy@mail.house.gov

Washington, D.C.      (202)-225-4911

Pawtucket, RI           (401)-729-5600

Congressman James Langevin at       james.langevin@mail.house.gov

Washington, D.C.      (202) 225-2735

Warwick, RI                (401) 732-9400

 
Please feel free to adapt this sample letter and send to your Congressman:

Dear Representative                       :

As your constituent, an HR Professional and a member of (your chapter name) I urge you to support H.R. 4855, the Work-Life Balance Award Act. 

H.R. 4855, sponsored by Representative Lynn Woolsey (D-CA), Chairwoman of the Subcommittee on Workforce Protections, would create the Work-Life Balance Award within the Department of Labor (DOL) to recognize employers that have developed and implemented innovative policies to enable employees to achieve a satisfactory work-life balance.  The bill establishes a nine-member, independent Advisory Board within the DOL composed of representatives of family, employee and employer groups to develop award criteria and select recipients.

SHRM is the world's largest association devoted to human resource management.  Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. There are almost 900 SHRM and chapter members in Rhode Island. 

SHRM supports the Work-Life Balance Award Act, which will help recognize and showcase those public and private organizations delivering policies and programs that help employees to better balance work and personal life obligations.  This legislation is consistent with SHRM's workplace public policy position statement and affirms a key SHRM public policy principle-encouraging organizations to be innovative in designing flexible workplace policies can ultimately enable employers to better meet the needs of their workforce.

The Work-Life Balance Award Act will help highlight the importance of workplace flexibility issues.  Specifically H.R. 4855:

• Emphasizes the significance of flexible workplaces;
  

• Encourages employers to create flexible work environments which can lead to  more loyal employees, improved employee retention, better customer service, and increased productivity; and
    
• Fosters the expansion of creativity and innovation in the design of work-life policies that meet the needs of employees and employers.

For these reasons, I strongly urge you to support H.R. 4855 when it comes to the floor.  Thank you for considering my view on this important legislation.

Sincerely,

Your name and contact information

State Legislative Alert:  General Assembly Proposal Would Eliminate 2010 Workforce Development Training Grants

April 26, 2010

CALL FOR ACTION IS NEEDED!

We have learned from Business and Chamber groups that the General Assembly intends to stop the 2010 Workforce Training Grants ($2.5M) that were supposed to be awarded in April.

The Job Development Fund, which is financed by employers, supports Workforce training as well as Employment Services and Unemployment Insurance activities.

It appears that elected officials are considering taking away a valuable tool to help Rhode Island employers and employees by moving these restricted monies into other accounts to finance the budget.

The Rhode Island Business Community will be holding a Press Conference and Rally on Thursday, April 29 at 4 PM in the Rotunda of the Rhode Island State House to ask that funding be restored to the Governor’s Workforce Training Grant program. Event organizers are expecting at least 200 members of the Rhode Island business community and labor to attend the Press Conference and testify to the positive impact of the Workforce Training Grants.

Background

According to Governor Carcieri’s website, since the Workforce Development Training program started in September 2005, per Executive Order 05-18, the Governor’s Workforce Board has awarded more than $37-million dollars to help improve the existing skill base of the Rhode Island workforce and to invest in future needs. For a list of employers who have been awarded grants see the Governor’s website at http://www.rihric.com/awards.htm.

Job Development Fund Tax: Employers pay an assessment of 0.21% to support the Rhode Island Human Resource Investment Council (HRIC), as well as Employment Services and Unemployment Insurance activities. The HRIC assists Rhode Island employers by funding a variety of projects designed to improve and upgrade the skills of the existing workforce. Each employer's Employment Security tax rate is reduced annually by 0.21% to ensure that this program does not result in a tax increase. See RI General Law Title 28-42 http://www.rilin.state.ri.us/Statutes/TITLE28/28-42/28-42-84.HTM.  

For information about the HRIC, refer to http://www.rihric.com/about.htm.

Given the economic situation in Rhode Island and the major need to support business and the development and training of the RI workforce, RI SHRM advocates that the State fund the 2010 Workforce Development Grants that have already been awarded.

Action Needed

Write or call your representative:

Legislators need to hear from as many voices from the human resources community as possible, so please share your concerns as soon as you can! To locate your state representatives check out the Voter Registration Center on the Secretary of State’s website. To locate the email address of your state representative, refer to the State of RI General Assembly website.

If you have a personal relationship with key leadership in the House or Senate, we ask that you make contact with those leaders who will play an important role in the state budget process. The House Speaker's Office can be reached at 222-2447; the Senate President's office at 222-6655.

Attend the Rally:

The rally is open to the public and will be on Thursday, April 29 at 4 PM in the Rotunda of the Rhode Island State House.

3/23 SHRM Federal Legislative Alert: President Obama Signs Health Care Reform Bill Into Law

On March 23, 2010, President Obama signed into law H.R. 3590, the Patient Protection and Affordable Care Act.  This sweeping reform law includes many provisions that will impact both employers and employees.

• Employer Requirement -- Penalties would be assessed on employers with 50 or more employees who fail to offer coverage to employees.  The penalty would be assessed if even one employee receives a subsidy to purchase coverage through a health insurance exchange.  Employers would also incur penalties if the coverage they offer is considered “unaffordable” to the employee or if the health plan has an actuarial value of less than 60 percent or pays less than 60 percent of covered health care expenses.

• Individual Requirement -- The new law requires individuals to purchase health insurance coverage or pay a tax penalty beginning in 2014.  The penalty, which is phased in, starts at $95 or 0.5% of income per individual in 2014 and increases to $750 or 2% of income in 2016.  The penalties for families would be capped at $2,250.  Religious and hardship exemptions are available.

• Excise Tax on High - Value Health Plans (“Cadillac” tax) -- Employers offering health plans that exceed a certain cost (the total employee and employer cost) would be subject to an excise tax on the amount above that value.  For individual coverage, the threshold would be $8,500; for family coverage, the threshold would be $23,000.  These thresholds would be indexed at Consumer Price Index plus one percentage point.  Certain high-risk provisions would have a higher cost threshold.

• Insurance Market Reforms -- The new law requires insurance plans to provide coverage to any individual who requests insurance.  It also includes a prohibition on pre-existing condition restrictions in the individual and small group health care market.  Health insurance premiums would be allowed to vary based only on tobacco use, age, family composition, and geographic location.  Large employers that purchase coverage through a health care exchange would be eligible for the above insurance protections.  Both self-insured and fully-insured plans are required to provide dependent coverage for children up to age 26.  Health plans are also prohibited from establishing annual and lifetime dollar limits on coverage.

• Wellness Programs -- Employers can offer increased incentives or rewards to employees for participation in a wellness program or for meeting certain health status targets beginning in 2014.  Rewards or premium reductions up to 30 percent of the cost of coverage are now permissible.

• Free Choice Vouchers -- Employers offering coverage are required to provide “free choice vouchers” to qualified employees to purchase insurance through the exchanges.  To be eligible for a voucher, an employee’s contribution under the employer’s plan would be between 8 percent and 9.8 percent of income, and the employee’s income would be at or below 400 percent of the Federal Poverty Level.

• Flexible Spending Accounts (FSAs) -- Contributions to health FSAs would be capped at $2,500 beginning in 2011 and over-the-counter medicines would only qualify for reimbursement with a doctor’s prescription.

• Medicare Hospital Insurance Tax -- Beginning in 2013, an additional Medicare tax of 0.9 percent is imposed on individuals with income in excess of $250,000 for joint filers or $200,000 for single filers.

More Changes Pending

While the new health care legislation was signed into law just this week, some additional changes are expected to be made in the coming days as part of what is called budget reconciliation.  These changes, which include several of the effective dates and requirements outlined above, are being made as part of the agreement negotiated between the House and Senate to approve the overall health care reform package.

To review a side-by-side chart of the new health care law and the anticipated changes to it contained in the budget reconciliation bill, click HERE.

SHRM is committed to helping you understand this new law and implement it now and as it continues to evolve.  A number of resources are available to SHRM members immediately to help you navigate this complex issue -- and more will be announced soon.

• SHRM's Health Care Resource Page is the go-to place for all the latest offerings in the health care realm.

• Click HERE to sign-up for an in-depth webcast titled “Health Care Reform: Leading Your Organization’s Response” on April 7.  This special SHRM session will be conducted by Frank McArdle, Principal and Manager, Hewitt and Associates. The cost is $99 for SHRM members, $119 for non-members.

• If you are a SHRM member, click HERE to listen to a free pre-recorded overview of the final health care reform package by Mike Aitken and Lisa Horn of SHRM’s Government Affairs department. 

3/17 RI SHRM Federal Legislative Action Alert:
Health Care Reform Vote!

Debate on comprehensive health care reform is entering the final stage. Both the House of Representatives and the Senate will likely vote on a comprehensive health reform bill later this week.

The pending legislation contains some provisions that are consistent with SHRM's official position and some provisions that are contrary to SHRM's official position. Additionally, the impact of other portions of the bill cannot be fully assessed until more is known about how they will be implemented.

SHRM knows that the health care reform bill affects our various members and their organizations in different ways. This Legislative Alert is intended to help you contact your Representative and two Senators to share your views on this important issue.

Background

The House of Representatives passed H.R. 3962, the Affordable Health Care for America Act, on November 7, 2009. The Senate passed H.R. 3590, the Patient Protection and Affordable Care Act, on December 24, 2009. While SHRM opposed the House bill, the Society took a "neutral" position on the Senate's health care reform legislation. The Senate bill was consistent with SHRM's established Health Care Public Policy Position Statement in several areas and contained some positive reforms; however other major parts of the bill were contrary to our policy statement. As a result, SHRM could not support the legislation.

The final bill that will be voted on by Congress in the coming days is a modified version of the Senate-passed legislation, with additional changes. While it contains some positive provisions, SHRM believes the bill as constructed fails to adequately meet many of the critical reform objectives that our members told us were most important. As a result, SHRM cannot support the legislation in its current form.

In keeping with the views of the overwhelming majority of our 250,000 members, SHRM continues to advocate for legislation that lowers costs; strengthens the employer-based system; improves the quality of care; and offers access to affordable coverage for all Americans.

• SHRM is sending a letter to Members of the House and Senate, expressing our concerns about several specific provisions in the pending bill. You can read the SHRM letter by clicking HERE.
   
• Click HERE to see how the final bill compares to SHRM's reform goals.

SHRM understands that our members have a strong interest in this issue. Therefore, we want to help you share your views or those of your organization with your elected officials. If you are a SHRM member, following the HRVoice instructions below, you have the opportunity to SUPPORT, OPPOSE, or convey your thoughts about the pending health care reform legislation.

If you are a chapter member but not a member of SHRM, please see the letters below which have been provided for your convenience. Each of the three draft letters emphasizes different aspects of the legislation.

SHRM's Position

SHRM's position on health care reform was developed through a rigorous, member-driven process. After surveying members, holding numerous focus group meetings, and consulting with state Legislative Directors and SHRM's Special Expertise Panels, we drafted a Health Care Public Policy Position Statement, which was subsequently reviewed and approved by SHRM's Board of Directors.

In keeping with that Public Policy Position Statement, SHRM is committed to achieving comprehensive health care reform that provides high quality, affordable health coverage to all Americans in a manner that strengthens the voluntary employer-based system.

HR professionals understand that the current system, which has health care costs rising faster than inflation, is unsustainable. This is why SHRM has advocated for reforms that control costs. Specifically, SHRM believes comprehensive health care reform should:

• Strengthen and improve the employer-based health care system;
    
• Encourage greater use of health prevention, promotion, and wellness programs;
    
• Strengthen the Employee Retirement Income Security Act (ERISA) to ensure a national, uniform framework for health care benefits;
    
• Reduce health care costs by improving quality and transparency; and
    
• Ensure tax policy contributes to lower costs and greater access.

Action Invited

If you are a National SHRM Member 

We invite you to share your views with your elected official using HRVoice:

1.  Log onto SHRM Online by clicking here.
  
2.  Sign in using your Member ID and Last Name.
  
3.  Once you enter the SHRM Advocacy Action Center, click the " Act Now" tab at the bottom of the Health Care Alert highlighted in blue to access your choice of sending a message of opposition, support, or to convey your views about HR specific aspects of Health Care Reform.

If you continue to encounter problems with this site, contact SHRM's Member Advocacy Specialist Recardo Gibson at Recardo.Gibson@shrm.org.

If you are not a National SHRM Member:

Write or call your elected officials in Washington today! Your legislators need to know your views on this important matter. Feel free to use or modify one of the attached letters.

Senator Jack Reed at:

E-mail via website: http://reed.senate.gov/contact/contact-share.cfm

Washington, DC   202-224-4642 phone      202-224-4680 fax

Cranston, RI         401- 943-3100 phone     401- 464-6837 fax

 
Senator Sheldon Whitehouse at:

E-mail via his website at: http://whitehouse.senate.gov/contact/

Washington, DC  202-224-2921 phone       202-228-6362 fax

Providence, RI    401-453-5294 phone       401-453-5085 fax

 
Congressman Patrick Kennedy

By e-mail at patrick.kennedy@mail.house.gov

Washington, DC   202-225-4911

Pawtucket, RI      401-729-5600

 
Congressman James Langevin

By e-mail at james.langevin@mail.house.gov

Washington, DC  202-225-2735

Warwick, RI        401-732-9400

 
Sample Letters

The sample letters shown below may also be downloaded as editable Word documents by using the following links:

Letter #1: Share Your Views

Letter #2: Oppose This Legislation

Letter #3: Support This Legislation

   
Letter #1: Share Your Views:

Dear :

As a human resource professional, I am writing to share my thoughts regarding the health care reform bill that will be considered later this week.

The nation's health care system urgently needs comprehensive reform. The reforms that I support include those that strengthen the voluntary employer-based system, reduce costs, promote transparency and improved quality, and increase access to affordable health coverage. While the bill under consideration includes some provisions that will improve our health care system, I am concerned that it fails to adequately meet several critical reform objectives.

To achieve effective reforms, I believe a final health reform bill should reflect the following key elements:

Employer Responsibilities - Requirements on employer-sponsored health care coverage limit employer flexibility and innovation. I urge you to allow for maximum employer flexibility to design benefit plans that meet the specific needs of varying workforces by: 1. omitting the "free choice" provisions; 2. limiting the employers' responsibilities to only full-time employees; and 3. lowering the penalties on employers.

Health Care Costs - While this legislation includes modest provisions to reform provider payments and promote transparency by providing access to Medicare claims data, it fails to adequately reduce health care costs for employers and employees. Additionally, this legislation does not include meaningful medical liability reforms to reduce "defensive" medicine costs.

Workplace Wellness Incentives - Employer investments in worksite wellness programs can help reduce overall health care costs for employers and employees. I support provisions that permit employers to discount up to 30 percent of the premium or cost-sharing requirements for participants in a workplace wellness program.

High Cost Plan Excise Tax - A significant number of public and private employer plans will likely exceed the Senate's 40 percent excise tax on so-called high-cost plans, not because they are overly generous but simply because of health care inflation, geographic variations, and the age of the workforce. I believe the tax thresholds must be increased and contributions to spending accounts or supplemental benefits such as vision, dental and wellness plans should not count toward the threshold.

ERISA Structure for Employer-Sponsored Coverage - The Employee Retirement Income Security Act (ERISA) has provided employers and employees with a workable federal regulatory framework for employee benefits, thereby allowing employers to offer a uniform set of benefits to employees throughout the United States. The flexibility and certainty of the ERISA framework has been essential to the success of the employer-based system and should be maintained.

I am committed to helping Congress enact responsible and effective health care reforms and urge you to consider my views as you review the final health reform bill.

Thank you for considering my views.

Sincerely,

Your Name and Address

 
Letter #2: Oppose This legislation:

Dear :

As a human resource professional, I am writing to urge you to OPPOSE the current health care reform bill.

The nation's health care system urgently needs comprehensive reform. The reforms that I support include those that strengthen the voluntary employer-based system, reduce costs, promote transparency and improved quality, and increase access to affordable health coverage. While the bill under consideration includes some provisions that will improve our health care system, unfortunately, I believe the bill fails to achieve a number of the most critical reform objectives.

* Employer Responsibilities - This bill includes costly penalties for employers that do not offer coverage and even penalizes those organizations that provide health care coverage that exceeds 9.8 percent of an employee's household income. "Free choice" vouchers, requiring employers to provide certain employees with a voucher to obtain coverage through an exchange, would destabilize employer plans.

* Health Care Costs - While this legislation includes modest provisions to reform provider payments and promote transparency by providing access to Medicare claims data, it fails to adequately reduce health care costs for employers and employees. Additionally, this legislation does not include meaningful medical liability reforms to reduce "defensive" medicine costs.

* Health Plan Excise Tax - This bill levies a 40 percent excise tax on high cost plans that exceed specific thresholds. Many public and private plans will be subject to this new tax simply because health care costs are increasing by 7 - 8 percent or more a year, while this tax threshold would only be indexed to the Consumer Price Index plus one percent. Neither employers nor employees can absorb these added costs.

HR professionals are committed to helping Congress enact responsible and effective health care reforms. We believe this is a national priority. But, as written, I oppose the legislation being considered by Congress this week and urge you to incorporate the reforms described above.

Thank you for considering my views.

Sincerely,

Your Name and Address

 
Letter #3: Support This legislation:

Dear :

As a human resource (HR) professional, I am writing to urge you to SUPPORT the health care reform bill.

The nation's health care system urgently needs comprehensive reform. The reforms that I support include those that strengthen the voluntary employer-based system, reduce costs, promote transparency and improved quality, and increase access to affordable health coverage.

While the pending legislation is not perfect, I do believe the bill under consideration includes a number of important reforms that will improve our health care system. Several of these key elements are outlined below.

Workplace Wellness Incentives - Employer investments in worksite wellness programs can help reduce overall health care costs for employers and employees. Such programs also generate savings for our health care system as a whole. Evidence suggests that incentives, such as premium discounts, encourage employee participation in wellness programs. I strongly support provisions that permit employers to discount up to 30 percent of the premium or cost-sharing requirements for participants in a workplace wellness program.

Transparency and Payment Reforms - For individuals to make better informed decisions about the cost-effectiveness of health care services, they must have access to provider performance measures and outcomes. The bill includes modest provisions that, to some degree, would improve quality, promote transparency and access to health information, and reform the current payment system. While these reforms need to go further, this is a start.

ERISA Structure for Employer-Sponsored Coverage - The Employee Retirement Income Security Act (ERISA) has provided employers and employees with a workable federal regulatory framework for employee benefits, thereby allowing employers to offer a uniform set of benefits to employees throughout the United States. The flexibility and certainty of the ERISA framework has been essential to the success of the employer-based system and should be maintained. Additionally, including a flexible "grandfathering" provision should not limit the continuation of plans in effect at the time of enactment.

I am committed to helping Congress enact responsible and effective health care reforms and urge you to support the legislation being considered by Congress this week.

Thank you for considering my views.

Sincerely,

Your Name and Address

March 3, 2010 Legislative Alert: COBRA Subsidy and UI Extension Signed Into Law

On March 2, 2010, the U.S. Senate passed H.R 4691, the Temporary Extension Act of 2010 by a vote of 78-19. This Senate action follows House passage of H.R. 4691 on February 25, 2010. The President immediately signed this bill into law on March 2, 2010.

The Temporary Extension Act:

1. Extends the COBRA subsidy program that was enacted under the American Recovery and Reinvestment Act and
      
2. Extends unemployment benefits through April 5, 2010.

The law's COBRA provisions:

• Extend the eligibility period for the 15-month 65 percent premium subsidy to those involuntarily terminated from March 1 through March 31, 2010.
    
• Allow employees to receive the subsidy if they first lost group coverage due to a reduction in hours and then were terminated after enactment of the bill.

The law's unemployment insurance benefit provisions:

• Extend the period during which individuals may file applications for Federal Emergency Unemployment Compensation (EUC) from the current end date of February 28, 2010 to April 5, 2010 and the period during which individuals may claim and be paid EUC is extended from July 31, 2010 to September 4, 2010.
    
• Extend the period during which individuals may qualify for the Federal Additional Compensation (FAC), the extra $25 weekly benefit amount on state and federal unemployment compensation, from the current end date of February 28, 2010 to April 5, 2010 with weekly payment provided during the phase out period for weeks ending October 5, 2010 instead of August 31, 2010.
    
• Extend the period during which 100% federal reimbursement for weeks of regular federal extended benefit payments to April 5, 2010, with the state option to continue the extended period from July 31, 2010 to September 4, 2010.

Additional Extension

These "short-term" extensions of the COBRA subsidy and unemployment benefits are intended to give Congress more time to consider legislation to extend these programs through 2010. Under H.R. 4213, a bill the Senate is currently debating, both the COBRA subsidy program and unemployment benefits would be extended through December 31, 2010. Be sure to look for future updates on this issue from SHRM Government Affairs.

2/4/2010 - DOL Issues Model CHIP Notice

Employers Must Notify Employees of State Premium Assistance Opportunities for Group Health Coverage

The Children's Health Insurance Program Reauthorization Act of 2009 ("CHIPRA"), enacted by President Obama last year, included a requirement that employers maintaining group health plans must notify their employees of potential opportunities for group health plan premium assistance through Medicaid and the Children's Health Insurance Program ("CHIP") in the States in which the employees reside. On February 4, 2010, the U.S. Department of Labor (DOL) issued a model Employer CHIP Notice that may be used for that purpose. The Employer CHIP Notice must be provided by employers that maintain group health plans in states (like RI) that provide medical assistance under a State Medicaid plan or children's health insurance program. In addition, the notice requirement applies regardless of whether the employer provides group health coverage directly or through insurance, reimbursement or otherwise.

Employers must provide the initial annual notice to its employees by the date that is the later of (1) the first day of the first plan year after February 4, 2010 (by January 1, 2011 for calendar year plans) or (2) by May 1, 2010. Further information on the notice requirements can be found on the DOL website, along with the link to the model notice.

Senate Passes Health Care Reform Bill on Christmas Eve Morning  

By a 60-39 vote, the Senate passed health care reform legislation (H.R. 3590) on Christmas Eve morning, December 24.  The bill would provide coverage to an additional 31 million Americans, implement sweeping health insurance industry reforms, and reduce Medicare spending nearly $500 billion.

The Senate and House must now reconcile their bills to produce compromise legislation. That process will be difficult because the bills contain several major differences, including: the design of health insurance exchanges, the structure of coverage mandates on employers, a public health insurance option in the House bill, new taxes on some health plans in the Senate bill, and a variety of special interest "deals" for certain states and constituencies. Lawmakers are hoping to send a final compromise bill to President Obama by the time he delivers his State-of-the-Union address in late January.

SHRM Position:

SHRM strongly supports strengthening and improving the current employer-based health care system, and the goal of providing all Americans with access to health care coverage.  The Senate bill contains some provisions that are compatible with SHRM's health care reform principles, and some provisions that are not. (See previous article below.)

As a result, SHRM remains hopeful that the Senate and House can agree on a final bill that, on balance, includes reforms that are important to SHRM members.

More information on this topic will be coming from SHRM after the holidays -- watch this site or visit the SHRM web site at www.shrm.org.

SHRM Federal Legislative Alert: VOTE NO on H.R. 3962 - Affordable Health Care for America Act

YOUR ASSISTANCE IS NEEDED!  Debate on comprehensive health care reform is at a crucial stage. The House of Representatives will consider H.R. 3962, the Affordable Health Care for America Act as early as this weekend. While SHRM strongly supports comprehensive health care reform that strengthens the employer-based system, promotes wellness programs and health promotion initiatives, strengthens the Employee Retirement Income Security Act (ERISA), increases purchaser and consumer access to cost and quality information and increases access to affordable health coverage, the House bill fails to achieve these goals.

Please contact your Representative today to urge a NO VOTE on H.R. 3962.

Background

On October 29, the Democratic leaders of the U.S. House of Representatives unveiled their long-awaited fix for the nation's health care delivery system. The bill, titled the Affordable Health Care for America Act (H.R. 3962), includes many provisions of interest to HR professionals.

Click HERE to review a side-by-side comparison of the House and Senate bills (PDF).

Specific provisions of concern to HR professionals include:

Wellness Programs – Unfortunately, H.R. 3962 does not include provisions to facilitate greater availability of wellness programs among employers and employees. In addition, the measure does not include meaningful cost, quality, or transparency provisions to ensure that both employers and employees have better access to health-related information.

Employer Mandate – The bill requires employers to provide and pay for "qualified" health care coverage or face an 8 percent payroll tax. Employers must pay 72.5 percent of the premium for individuals and 65 percent of the premium for families. In addition, even if an employer provides and pays for health insurance coverage for their workforce, that employer could still be subject to an 8 percent payroll tax if employees decline employer coverage because it is unaffordable – defined as more than 12 percent of the employee's income.

ERISA – H.R. 3962 would erode the Employee Retirement Income Security Act (ERISA) by applying state law remedies to employer purchased coverage in a health insurance exchange; prohibiting post-retirement reductions of retiree health benefits by group health plans, unless reductions are also made to active employees' health benefits; and requiring employer-sponsored plans to meet detailed federal requirements that will increase costs.

Public Plan – The bill also includes a public insurance plan option that raises serious concerns about cost-shifting to private plans. Inadequate reimbursement practices under Medicare and Medicaid has resulted in significant cost-shifting to private plans, increasing costs for both employers and employees.

SHRM's Position

SHRM is committed to achieving comprehensive health care reform that provides high quality, affordable health coverage to all Americans in a manner that strengthens the voluntary employer-based system. HR professionals realize that the current system, which has health care costs rising faster than inflation, is unsustainable. That is why SHRM has supported efforts to control costs. To meet this goal, SHRM supports public policy that achieves the following:

• Strengthens and improves the employer-based health care system;
• Encourages greater use of health prevention, promotion, and wellness programs;
• Strengthens the Employee Retirement Income Security Act (ERISA) to ensure a national, uniform framework for health care benefits;
• Reduces health care costs by improving quality and transparency;
• Ensures tax policy contributes to lower costs and greater access.

Action Needed

Please write your Members of Congress TODAY and urge them to oppose the Affordable Health Care for America Act.

If you are a member of SHRM, you can write your elected officials using HRVoice by following these steps:

1. Log onto HR Voice by clicking HERE and enter your member number and last name.
2. Under the heading "Take Immediate Action on these Hot Issues," click on: "VOTE NO on the Affordable Health Care for America Act (H.R. 3962)" and
3. Feel free to personalize your letters by including specific information about the organization you work for, your experiences in the workplace, and why this legislation would negatively impact your organization. Just place your cursor on the text of the letter where you would like to edit.

Senate Turns to SHRM on H1N1 Influenza Preparedness

On November 10, SHRM member Elissa C. O’Brien testified at the Senate Subcommittee on Children and Families hearing titled, "The Cost of Being Sick: H1N1 and Paid Sick Days." Click here to learn more.

Ms. O’Brien is Vice President of Human Resources at Wingate Healthcare in Needham, MA. She is a member of SHRM’s Special Expertise Panel on Labor Relations and a past President of HRM-RI.

Are You Ready for The Genetic Information Nondiscrimination Act?

"The Genetic Information Nondiscrimination Act" – or GINA – has been called "the first civil rights law of the 21st Century." The Act prohibits discrimination against individuals on the basis of their genetic information in both employment and health care.

SHRM is offering a 90-minute webcast to explain the law and its requirements.

Webcast Date:  November 20, 2:00 P.M. -- 3:30 P.M. (ET)

Presenter:  Steven J. Pearlman, partner, Seyfarth Shaw LLP, and SHRM's Government Relations staff

Recertification:  Hours: 1.5 hours (Strategic)

Click here to learn more

Revised EEOC Poster for GINA Compliance Is Available Online Now

Title II of GINA - Employment Provisions: The Equal Employment Opportunity Commission (EEOC) has approved a proposed final rule to implement the employment title of the Genetic Information Nondiscrimination Act (GINA). The proposed regulation notes that covered entities will be required to post notices in conspicuous places describing GINA's applicable provisions. The EEOC has published a notice revising its "Equal Employment Opportunity is the Law" poster to reflect changes required by the employment provisions of the GINA, which becomes effective on Nov. 21, 2009.

Who Must Post: Employment provisions in Title II of GINA will apply to the same covered entities as Title VII of the Civil Rights Act of 1964 whether or not the employer conducts genetic testing. The provisions will prohibit employers from discriminating against individual employees or job candidates on the basis of genetic conditions or predisposition to certain diseases even if an employer does not conduct genetic testing.

You may complay with the posting requirement by posting a supplemental poster alongside EEOC's September 2002 "EEO is the Law" poster or OFCCP's August 2008 "EEO is the Law" poster, or by posting the revised poster.

Request posters at: http://www1.eeoc.gov/employers/poster.cfm

SHRM Federal Legislative Alert: FMLA Military Leave Law Expanded

President Obama has signed into law the Fiscal Year 2010 National Defense Authorization Act (H.R. 2647). The new law includes an expansion of the recently-enacted exigency and caregiver leave provisions for military families under the Family and Medical Leave Act of 1993 (FMLA).

In January 2008, Congress amended the FMLA to provide:

• Exigency leave - up to 12 weeks of leave for urgent needs related to a reservist family member's (spouse, son, daughter, or parent) call to active service.
    
  • H.R. 2647 expands the exigency leave benefits to include family members of active duty service members. Under current law, only family members of National Guard and Reservists are eligible for “exigency leave.
      
• Caregiver leave - up to 26 weeks of unpaid leave to an employee to care for a family member (spouse, son, daughter, parent, or next of kin) who is injured while serving on active military duty.
    
  • H.R. 2647 expands the caregiver leave provision to include veterans who are undergoing medical treatment, recuperation or therapy for serious injury or illness that occurred any time during the five years preceding the date of treatment.

These previsions are effective upon enactment.

In addition to providing leave for military families, the FMLA provides unpaid leave for the birth, adoption or foster care placement of an employee's child, as well as for the "serious health condition" of a spouse, son, daughter, or parent, or for the employee's own medical condition. To be eligible for the leave, employees must work in organizations of 50 or more employees and work at least 1,250 hours in a 12-month period.

SHRM Legislative Alert: Court Rules Federal Contractors Must Use E-Verify Beginning September 8, 2009

On 8/26/09, a U.S. District Court issued a long-awaited decision in Chamber of Commerce of the United States of America v. Napolitano; a case in which SHRM, along with the U.S. Chamber of Commerce, American Council on International Personnel, HR Policy Association, and Associated Builders and Contractors, Inc., challenged the legality of a Bush Administration Executive Order requiring that federal contractors use E-Verify to check the employment eligibility of all newly hired employees, as well as all current employees directly working on a contract.
 
SHRM and the other plaintiffs challenged the legality of Executive Order 13464 and its implementing regulations arguing that it was neither legally justified nor practical for federal contractors to implement. Unfortunately, the court discounted the plaintiffs' arguments deciding the case in favor of the government and ruling that the regulation should go forward.
 
In the wake of the court's ruling, SHRM is reviewing its public policy options. However, absent an additional delay, the rule is scheduled to go into effect on September 8, 2009. This deadline means that most federal contracts awarded, as well as solicitations issued after September 8, 2009, must include a clause mandating use of E-Verify for all employees hired during the contract period and all existing employees assigned to perform work under the contract. The United States Citizenship and Immigration Services (USCIS) has published information and frequently asked questions on its website regarding application of the rule.
 
In order to help prepare SHRM members for implementation of the rule, SHRM is developing a compliance webcast which will be available soon. Information about the webcast will be distributed as soon as a date is selected.

To read the final rule,  click HERE.

To read the court's decision, click HERE.

For Companies Operating On The Web, New Data Security Regulations Have Broad Implications

Massachusetts' New Identity Theft Law (201 CMR 17.00)

Massachusetts has a new identity theft law and data encryption mandate that goes into effect January 1, 2010. This law applies to all businesses that "own, license, store or maintain personal information" on any Massachusetts resident. It also applies contractors and third-party vendors that access and work with this information.

Does your company have an online presence with national reach? Sales on the East Coast? Customers in Boston? If your company counts among its customers residents of Massachusetts, you have until March 1, 2010 to ensure that your data storage and transmission policies and practices are in compliance with new data security regulations issued by the State of Massachusetts.

Read more about this on the Bullivant Houser Bailey PC site (attorneys-at-law)

HRM-RI members who are interested in learning about how to comply with this law may register for a FREE 35 minute webinar being offered by Universal Benefit Plans.

Click here for more details on the HRM-RI site or visit www.universalbenefitplans.com

SHRM Federal Legislative Alert - Healthy Families Act Introduced

The Healthy Families Act has been introduced in the both the House (H.R. 2460) and Senate (S. 1152). Sponsored by Representative Rosa DeLauro (D-CT) and Senator Edward Kennedy (D-MA), the bill would require employers to provide employees with up to 56 hours of paid sick leave. SHRM believes a paid sick leave mandate as outlined in the Healthy Families Act would limit an employer's flexibility in designing a benefits package that meets the needs of their unique workforce, resulting in significant costs for employers as well as a potential loss to employees who prefer other benefits rather than paid sick leave. As such, we are opposed to the Healthy Families Act, as currently written.

Background

The Healthy Families Act (HFA) would require public and private employers with 15 or more employees to allow employees to accrue one hour of paid sick leave for every 30 hours worked. An employee begins accruing the sick leave at commencement of employment and is able to begin using the leave after 60 days. The paid sick time could be used for the employee's own medical needs or to care for a child, parent, spouse, or any other blood relative, or for an absence resulting from domestic violence, sexual assault or stalking. Other key provisions of interest to HR professionals include:
 
Coordination with Existing Federal and State Leave Laws: The HFA specifically states that the Act does not supersede any state or local law that provides greater paid sick time or leave rights. Sick leave required under the HFA would be in addition to any leave provided under the Family and Medical Leave Act or state workers compensation laws.
 
Effect on Existing Paid Leave Benefits: Under the HFA, if an employer's existing paid leave policy fails to meet all the requirements of the Act, the employer's plan would need to be amended to comply with the HFA requirements.
 
Impact on Absence Control or No Fault Attendance Policies: The HFA would prohibit an employer from counting any leave taken by an employee under the legislation from counting as leave under an employer's absence control or no-fault attendance policy.

SHRM Position

Rather than a one-size-fits-all government approach, where federal and state laws often conflict and compliance is determined under regulatory silos, SHRM advocates a comprehensive workplace flexibility policy that, for the first time, responds to the diverse needs of employees and employers and reflects different work environments, union representation, industries and organizational size.
 
SHRM has developed a comprehensive workplace flexibility policy that responds to the diverse needs of today's employees and employers. For a 21st century workplace flexibility policy to be effective, SHRM believes that all employers should be encouraged to provide paid leave for illness, vacation and personal days to accommodate the needs of employees and their family members. In return, employers who choose to provide paid leave would be considered to have satisfied all federal, state and local leave requirements.
 
For a 21st Century workplace flexibility policy to be effective, SHRM believes the policy must meet the following principles:

1. Shared Needs - The policy must meet the needs of both employees and employers. Rather than an inflexible government approach, policies governing employee leave should be designed to encourage employers to offer a paid leave program (i.e., vacation, sick time, personal days or “paid time off” (PTO) bank that meets baseline standards to qualify for a statutorily defined “\"safe harbor."
    
2. Employee Leave - Employers should be encouraged voluntarily to provide paid leave to help employees meet work and personal life obligations through the safe harbor leave standard.
    
3. Flexibility - A federal workplace leave policy should encourage maximum flexibility for both employees and employers.
    
4. Scalability - A federal workplace leave policy must avoid a mandated one-size-fits-all approach and instead recognize that paid leave offerings should accommodate the increasing diversity in workforce needs and environments.
    
5. Flexible Work Options - Employees and employers can benefit from a public policy that meets the diverse needs of the workplace in supporting and encouraging flexible work options such as telecommuting, flexible work arrangements, job sharing and compressed or reduced schedules. Federal statutes that impede these offerings should be updated to provide employers and employees with maximum flexibility to balance work and personal needs.

To access a complete and detailed description of these principles, please click HERE.

Action Needed

Please write your Members of Congress TODAY and urge them to refrain from signing on as a cosponsor to the Healthy Families Act and instead, pledge to work with SHRM in developing a workplace flexibility plan that balances the interest of employers and employees.

If you are a SHRM member, to write your elected officials using HRVoice, follow these steps:

1. Log onto HR Voice by clicking HERE and enter your member number and last name.
    
2. Under the heading "Take Immediate Action on these Hot Issues," click on: "VOTE NO on the Healthy Families Act" and
    
3. Feel free to personalize your letters by including specific information about the organization you work for, your experiences in the workplace, and why this legislation would negatively impact your organization. Just place your cursor on the text of the letter where you would like to edit.

RI House Bill 5143 (E-Verify Compliance) Is Passed on 5/12/09

On May 12, 2009, the Rhode Island House of Representatives Tuesday passed the "E-Verify" bill requiring private employers to electronically verify the citizenship of new hires. The proposal succeeded on a 38-33 vote and now heads to the Senate.

Rep. Charlene Lima, D-Cranston, speaker pro tempore, voted against the bill, arguing that the federal E-Verify program makes too many mistakes to be relied upon. Floor debate also focused on the impact to the state's ailing business community.

More than a half-dozen states now mandate the use of E-Verify according to the National Council of State Legislators, with hundreds of businesses using the program on a voluntary basis. Last year in Rhode Island, Governor Carcieri issued an executive order that, in part, requires state agencies and vendors to use the same database to run similar checks.

Recent legislative alerts from the Rhode Island State Council of SHRM urged HRM-RI members and other HR professionals to oppose RI House Bill 5143. For more background on this issue and a list of "talking points", see the next article below.

SHRM Alert 3/19: U.S. DOL Releases Model COBRA Notices to Help Satisfy ARRA's Notice Provisions

The American Recovery and Reinvestment Act of 2009 (ARRA) aims at creating and/or saving more than 3 million jobs. ARRA mandates that plans notify certain current and former participants and beneficiaries about the COBRA premium reduction subsidy. On March 19, 2009, The U.S. Department of Labor (DOL) released model notices it created to help plans and individuals comply with these requirements. Each model notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA's notice provisions.

General Notice (Full version)
http://www.dol.gov/ebsa/COBRAgeneralnoticefullversion.doc

General Notice (Abbreviated version)
http://www.dol.gov/ebsa/COBRAgeneralnoticeabbreviatedversion.doc

Alternative Notice
http://www.dol.gov/ebsa/COBRAalternativenotice.doc

Notice in Connection with Extended Election Periods
http://www.dol.gov/ebsa/COBRAextendedelectionperiodnotice.doc

Read more about the DOL's model notices on the SHRM website at:
http://www.shrm.org/hrdisciplines/benefits/Articles/Pages/COBRAnotices.aspx

RI SHRM Alert 3/7/09: Stimulus Package Changes COBRA Procedures

The enactment into law of HR 1, the American Recovery and Reinvestment Act of 2009, (ARRA) implements new temporary procedures for employers relating to the administration of Consolidated Omnibus Budget Reconciliation Act (COBRA) benefits.

HR 1 establishes a 65% government subsidy for eligible workers towards their COBRA coverage for up to 9 months. The Treasury Department will administer the subsidy, providing employers or health plans (if they administer COBRA benefits) with a credit against payroll taxes for the cost of the subsidy. Workers who were involuntarily terminated between September 1, 2008 and December 31, 2009, with annual incomes less than $125,000 (single) or $250,000 (couples) are eligible.  Additionally, the employee, not the employer, will be responsible for abiding by the salary cap that determines eligibility. Should an employee accept COBRA coverage when they are ineligible, they will have to remit the subsidy to the federal government through their tax returns.

Qualified individuals who initially decline COBRA coverage have an additional 60 days after they receive notice of the special election period to receive the subsidy. Should an employee subsequently elect coverage, the effective date of coverage would begin February 17, 2009, the day that HR 1 was signed into law by President Barack Obama.

The Internal Revenue Service (IRS) released guidelines (IR-2009-15) on February 26, 2009, to assist employers with the task of administering these benefits. Employers can click HERE to visit the IRS's website. The website contains a FAQ< for employers as well as a revised version of Form 941 (Employer's Quarterly Federal Tax Return), which employers will use to claim credit for the COBRA medical premiums they pay for their former employees beginning with the first quarter of 2009. The IRS will send this form to employers in mid-March.

As part of the administration of this program, employers must maintain supporting documentation for the credit claimed. This includes:

• Information on the receipt, including dates and amounts, of the eligible individual's 35% share of the premium;
• In the case of an insured plan, copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA;
• In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the eligible individuals;
• Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy;
• Proof of each eligible individual's eligibility for COBRA coverage at any time during the period from September 1, 2008, to December 31, 2009, and election of COBRA coverage;
• A record of the Social Security numbers of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for 1 individual or 2 or more individuals;
• Other documents necessary to verify the correct amount of reimbursement.

For additional references related to COBRA and the American Recovery and Reinvestment Act, please click on the links below.

COBRA Coverage Expansion: HR Action Steps to Take Now

Claiming the New COBRA Premium Credit on Payroll Tax Forms

HR 1, the American Recovery and Reinvestment Act of 2009, (ARRA)
 
President Obama Signs $789 Billion Stimulus Bill

Stimulus Package Includes Significant HR Provisions

Stimulus Law Definitely a Lifeline

Express Request: SHRM members can receive additional resources on this topic.  Visit SHRM's Express Request service web site and select the key term Economic Stimulus Plan-COBRA Subsidy Only. 

Register for the SHRM Webcast: COBRA and CHIPRA: New Rules for Employers -- March 11, 2:00 p.m.- 3:15 p.m. ET

RI SHRM Alert 2/24/09:  Economic Stimulus Legislation Update --
COBRA Compliance Resources

Resource Links and Information regarding the COBRA provisions outlined in the Economic Stimulus Plan of 2009 may be found at the following:

Office of OHIC

Please note that the Office of the RI Health Commissioner has posted information regarding the The Federal Economic Stimulus Package subsidy regarding the purchase of COBRA for certain people on the OHIC website at http://www.ohic.ri.gov/Employers_Insurance.php

HR EXPRESS

If you are a SHRM member and would like to access the latest information on the Economic Stimulus Packages and COBRA compliance please access the HR EXPRESS Page< and under Hot Topics request the Economic Stimulus Plan of 2009.

Free Webinar

The Cornerstone Group offers a Free Webinar on Monday March 2 at 1 PM to review the COBRA related provisions in the ACT.

If you would like to take part in the Webinar, hosted by Larry who will explain the qualifications and impact this Stimulus Package will have on COBRA Benefits, please
click here to REGISTER

Cornerstone's ERISA attorney, Lawrence Grudzien practices exclusively in the field of employee benefits. He has more than 28 years' experience advising on all aspects of employee benefit law including: drafting and reviewing individually designed and prototype retirement plans, performing due diligence on employee benefit issues for merger, acquisition and outsourcing transactions, and advising on administrative and design issues.

More at SHRM

COBRA Coverage Expansion: HR Action Steps to Take Now 

"The American Recovery and Reinvestment Act of 2009 (ARRA), the financial stimulus law signed by President Barack Obama on Feb. 17, 2009, includes significant changes to the COBRA continuation coverage rules."

    -- 2/17/2009 by Toni Pilzner, Butzel Long

Stimulus Bill Imposes More Stringent HIPAA Requirements 

"The American Recovery and Reinvestment Act, the new stimulus package signed by President Barack Obama on Feb. 17, 2009, imposes significant new Health Insurance Portability and Accountability Act (HIPAA) privacy and security requirements on health plans, business associates and other vendors of personal health records. The bill also includes appropriations for health information technology (HIT) and new HIT requirements for the government sector (or businesses who have government contracts). The HIT and HIPAA requirements fall under the Health Information Technology for Economic and Clinical Health (HITECH) Act."

    -- 2/19/2009 by Christy Tinnes

You can find an excellent summary of the Act at:

The American Benefits Council

Summary of Key COBRA Provisions in the American Recovery and Reinvestment Act

Overview of the American Recovery and Reinvestment Act of 2009 From the RI Senate Fiscal Office

To learn more about the impact the Recovery and Reinvestment Act will have on Rhode Island, read the 34-slide presentation prepared by the Senate Fiscal Office and/or the 72-page report prepared by the State Budget Office, Senate Fiscal Staff, and House Fiscal Staff.

Slide show link: http://www.rilin.state.ri.us/SenateFinance/ARRAFedPresentation.pdf

Report link: http://www.rilin.state.ri.us/SenateFinance/ARRActRev.pdf

RI SHRM Alert: House and Senate Pass Economic Stimulus Legislation

The American Recovery and Reinvestment Act of 2009, (ARRA) has been signed into law. Although the bill is aimed at aiding the faltering economy, it does contain several provisions affecting the workplace. Key HR provisions include:
 
Consolidated Omnibus Budget Reconciliation Act (COBRA) Continuation of Coverage:

• COBRA Subsidy -- Eligible workers will receive a 65 percent subsidy toward their health care coverage premium for up to 9 months. The Treasury Department will administer the subsidy, providing employers or health plans, if they administer COBRA benefits, to receive a credit against payroll taxes for the cost of the subsidy. The subsidy would terminate upon offer of any new employer-sponsored health care coverage or Medicare eligibility.
    
• Employee Eligibility -- Individuals who have been involuntarily terminated between September 1, 2008 and December 31, 2009 with annual incomes less than $125,000 (single) or $250,000 (couples) are eligible for the COBRA premium assistance, along with their family. Qualified individuals, who initially decline COBRA coverage, would be given an additional 60 days after they receive notice of the special election period to elect to receive the subsidy. The election period begins on the date of enactment of the ARRA.
    
• Special Enrollment -- The bill allows group health plans to provide a special enrollment right to allow eligible individuals to elect different coverage under the plan in electing COBRA continuation coverage.
    
• Notice Requirements -- COBRA notices must include information on the availability of the premium assistance. Model notices from the Department of Labor are due 30 days after enactment.
    
• Effective Date -- These provisions are effective for premiums the first calendar month following the date of enactment.

Health Information Technology: The ARRA also includes $19 billion to accelerate the adoption and use of health information technology (IT) by doctors and hospitals. The bill establishes a process led by the federal government to develop standards by 2010 that allow for the secure nationwide electronic exchange of health information. The bill also expands current federal privacy and security protections for health information.

Making Work Pay Credit: The ARRA creates a refundable tax credit of up to $400 per person, $800 per couple during 2009 and 2010, This tax credit is calculated at a rate of 6.2% of earned income, and would phase out for taxpayers with adjusted gross income in excess of $150,000 for couples filing jointly and $75,000 for single filers. Taxpayers will receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks, or through claiming the credit on their tax returns.

Unemployment Compensation:

• Extension of Benefits: This provision would extend the time period in which workers are able to collect their unemployment benefits. The recently enacted Unemployment Compensation Act of 2008 (Public Law 110 -- 449) created a temporary emergency unemployment compensation program. As opposed to the original program termination date of March 31, 2009, the ARRA would terminate the Emergency Unemployment Compensation program on December 31, 2009. Under this proposal no compensation under the program would be payable after May 31, 2010. The benefits and administration costs would be funded through the general fund of the Treasury rather than the Federal Unemployment Tax Act (FUTA) surtax.
   
• Expansion of Benefits: An increase of $25 per weekly benefit would be available to all individuals receiving regular unemployment benefits, extended benefits or emergency unemployment benefits. The $25 additional weekly benefits would be available in states that enter into an agreement with the Labor Secretary.
   
• Modernizations: This provision would provide $7 Billion in funding to states to improve the administration of their unemployment compensation systems. The incentive and administrative payments are paid from the UI trust fund and through an extension of the existing FUTA surtax, paid by employers. To receive one-third of its allotted funds, a state must adopt an "alternative base period" allowing workers to meet eligibility requirements by counting their most recent wages. Additionally, states would have to meet two out of the six requirements below to access funds:
     
  • Family Related Needs: Would provide UI compensation for workers who have voluntarily left their jobs due to illness or disability of an immediate family member, the relocation of a spouse for employment or domestic violence. Currently, a worker is only eligible for UI compensation if they have lost their jobs through no fault of their own and must be able, available, and actively seeking work. This provision creates a new entitlement to unemployment compensation for individuals who limit their work search and availability for work and separate themselves from employment for the illness or disability of a member of their immediate family (as defined by the Secretary of Labor)
       
  • Job training: Provide training benefits to unemployed workers laid off from a "declining" occupation who are enrolled in a state-approved training program for entry into a high-demand occupation
      
  • Part-time work: Provide unemployment compensation benefits to individuals seeking part-time work
      
  • Uniform 26 weeks: Raise maximum compensation caps so that all long-term unemployed workers can receive a full 26 weeks of benefits
      
  • Child Assistance: Pay unemployed workers at least an extra $15 per week for each of the worker's dependents

Work Opportunity Tax Credit (WOTC): The work opportunity tax credit is currently available on an elective basis for employers hiring individuals from one or more of nine targeted groups. The amount of the credit available to an employer is determined by the amount of qualified wages paid by the employer. The ARRA expands the WOTC by creating two new categories of individuals eligible for the credit: unemployed veterans and disconnected youth who begin work for the employer in 2009 or 2010. The proposal is effective for individuals who begin work for an employer after December 31, 2008.

Trade Adjustment Assistance (TAA): Extends TAA benefits for two years for employees who lose their jobs through increased imports or offshoring to certain foreign countries.

Executive Compensation: Would limit compensation for the highest paid individuals at companies who receive assistance from the Troubled Asset Relief Program (TARP). The bill includes a sliding scale of restrictions placed upon the highest earners dependent upon the amount of relief a company receives. The limits would only apply to employees that are required to register with the Securities and Exchange Commission and ould restrict the size of a bonus, which can be no more than a third of the total annual compensation an executive receives. Additionally, the ABBA ould ban "golden parachutes" to departing executives, and bonuses must be paid back to the Treasury under certain circumstances. Limits are also placed on "excessive expenditures" including entertainment, the use of corporate jets and office renovations. Lastly, it would require that TARP recipients hold an annual shareholder vote on approval of executive compensation.

H-1B visas: Prohibits organizations that receive funds under the TARP or certain federal loans from obtaining H-1B visas for two years unless they have taken good faith steps to recruit U.S. workers for the job in which the H-1B is sought. TARP beneficiaries would be required to offer the job to any equally or better qualified U.S. workers who have applied.