Tip Tuesday! Determining Minimum Value and Affordability

By Linda Rowings

The IRS has released final regulations that address how wellness incentives or penalties, contributions to a health reimbursement arrangement, and employer contributions to a Section 125 plan are applied to determine affordability. While these regulations were issued in connection with the individual shared responsibility requirement (also called the individual mandate), the agencies said that they expect to use the same approach when determining affordability for purposes of eligibility for the premium tax credit and the employer-shared responsibility/play or pay requirements.
The regulations provide that when deciding if the employee’s share of the premium is affordable:

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The worst list of holiday party rules you’ll read this year

By Tim Gould

OK. so it’s time for the obligatory holiday party story — the one where we run down all the bad things that might get employers in legal trouble during a get-together that’s supposed celebrate the season, raise employee morale and get people pumped for a bang-up 2015.  
If we were just a hair more cynical, we’d suggest bagging the whole idea altogether. Instead, though, let’s take a look at the things you can do at your get-together to guarantee some fresh new legal problems in the New Year (a hat tip to attorney Robin Shea, whose blog posts sparked this approach).

Click here for entire article.

Supreme Court Agrees to Rule on Availability of Premium Tax Credits

By Linda Rowings

Premium tax credits are only available to individuals who obtain health coverage through a Marketplace. A dispute has arisen as to whether the IRS has the ability to interpret PPACA to allow the subsidy to individuals who obtain coverage through any Marketplace, or whether the language of PPACA limits eligibility to those who have obtained coverage through a state Marketplace. The U.S. Supreme Court has agreed to rule on whether premium tax credits may only be available to individuals who receive tax subsidies as a result of being enrolled in a state exchange. In the meantime, the IRS has stated that it will continue to issue tax credits to individuals in both state and federally-run Marketplaces.

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Feds’ 2015 to-do list: 5 things that’ll impact your job

By Jared Bilski

If we had to sum up what federal agencies such as the Department of Labor (DOL) and the Equal Employment Opportunity Commission (EEOC) had planned for next year in just two words, it would be this: New regulations.
At the Fall 2014 Regulatory Agenda meeting, federal agencies like the DOL and EEOC gave some insight into their progress on the more than 75 rules and regulatory proposals in their queue.
Here are the proposed deadlines of regs that will impact HR pros the most next year:

DOL action items

1. Changes to the DOL’s overtime rule

Click here for full article.

Tip Tuesday! Deadline for Submitting Information for Transitional Reinsurance Program Extended to 12/19/2014 -Clarification

By Larry Grudzien

Clarification:

This extension only applies to reinsurance insurers and not to health plans.  The deadline for employer health plans remains December 5, 2014.

Today  CMS extended deadline for contributing entities to submit their 2014 enrollment counts for the transitional reinsurance program contributions under 45 CFR 153.405(b).  The deadline has now been extended until 11:59 p.m.  EST on December 19, 2014.  The January 15, 2015 and November 15, 2015 payment deadlines remain the same.

For a copy of the announcement, please click on the link below:

https://www.regtap.info/uploads/library/DDC_InitialDataSubmissionDeadlineAdjustment_5CR_120514.pdf
  

4 keys to calculating full-time employees under Affordable Care Act

By Sheryl Southwick

Employers have 11 months to nail down just how many full-time employees they have before Obamacare’s employer mandate kicks in. The problem is, the law’s formula is tricky. To help with the math, 15-year benefits compliance vet Sheryl Southwick has some advice for employers.
———————————————————————————————
Under the Affordable Care Act’s (ACA) shared responsibility provision, a large employer (who employs at least 50 full-time equivalent employees on average) must offer affordable medical coverage to at least 95% of its full-time equivalent employees and their dependent children age 26 or younger — or face stiff penalties.
But who exactly is a “full-time equivalent employee?” Under the ACA rules, generally an employee is considered full-time if he or she is reasonably expected to work on average at least 30 hours per week, or 130 hours per month. Variable hour and seasonal employees may also be considered full-time under the new ACA rules.

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2 Obamacare strategies the feds kill in new guidance

By Jared Bilski

The feds’ latest health reform guidance contains some unwelcome news for employers.
That’s because the Treasury, Department of Health and Human Services (HHS) and the Department of Labor’s (DOL) latest guidance specifically prohibits two strategies that a number of firms had been using to curb healthcare costs.
Here’s what the feds’ recent FAQ — the 22nd document in the series — says employers can’t do:

1. Offer cash to employees

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Here’s a look at Millennials that might surprise you

By Tim Gould

Those so-called Millennials might not be the selfish slackers they’re often described to be.  

The standard narrative is that these 18-to 30-somethings are lazy, feel entitled and don’t have good work ethic. But a recent survey from Bentley University in Massachusetts says different.

Click here to continue reading.

Tip Tuesday!. . . Better Not Cry; Better Not Use a Three Month Measurement Period, We’re Tellin’ You Why

By R. Pepper Crutcher, Jr.

The preamble to the IRS Employer Shared Responsibility Cost final rules said, “Under the look-back measurement method for ongoing employees, an applicable large employer member determines each ongoing employee’s full-time employee status by looking back at a standard measurement period of at least three months but not more than 12 months, as determined by the employer.”  79 Fed. Reg. 8,554 (Feb. 12, 2014).  Addressing comments about the three month measurement period, the preamble further said:

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The single health condition that costs employers $175 billion a year

By Tim Gould

If your wellness program doesn’t have a component that’s dedicated exclusively to preventing and managing diabetes, you’ll probably want to add one soon.  

If your wellness program doesn’t have a component that’s dedicated exclusively to preventing and managing diabetes, you’ll probably want to add one soon.

That’s one of the major takeaways from a recent comprehensive report on the impact of diabetes.
It’s no secret that diabetes is a condition that can wreak havoc on employees’ health — and employers’ bottom lines.

Click here for entire article.

Tip Tuesday! Can Employers Pay for Employees in Exchanges? No.

By Keith McMurdy

On November 6, the DOL issued FAQ Part 22, which directly addresses some recent efforts by employers to reimburse employees for participation in the exchange through Code Section 105, or through some type of other arrangement.  Here are the questions, with shortened answers.  For a complete copy of the notice, click this link.

Click here for entire article.

IRS bumps up FSA, adoption limits, leaves others alone

By Jared Bilski

The IRS released the limits on flexible spending accounts (FSAs), adoption assistance and transit benefits for 2015. Here are the limits that will increase as well as those that will remain the same.
The most important change HR pros will want to note and let employees know about involves FSAs.

FSAs

In Rev. Procedure 2014-61, the feds increased the inflation adjusted contribution limit for health FSAs to $2,550 for the 2015 tax year. That’s a $50 increase from the current $2,500 contribution limit, and the first time the feds have increased the FSA limit since the Affordable Care Act capped contribution amounts.

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Tip Tuesday! Transitional Reinsurance Fee Filing Date Extended to December 5

By Linda Rowings

The Centers for Medicare and Medicaid Services (CMS) extended the deadline for group health plans to provide their 2014 transitional reinsurance fee (TRF) submission. Filing is now due by 11:59 p.m. on December 5, 2014. The January 15, 2015, and November 15, 2015, deadlines to pay the fee remain the same. For more information on the TRF, see our recent blog. For the answers to nearly 30 questions about filing, due dates, calculation methods, payment, submission and more, CLICK HERE to Request UBA's "Frequently Asked Questions about the Transitional Reinsurance Fee (TRF)".

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Obamacare delay provides relief — and an opportunity

By Jared Bilski

The most recent health-reform implementation roadblock involves a tool the feds created to help employers with administration issues. But problems with that very tool directly led to a delay that benefits employers.

In IRS Notice 2014-69, the agency clarified that certain health plans — commonly referred to as “skinny” health plans — that offer limited or no coverage for in-patient hospitalization services and/or physician services will not provide “minimum value” under the health reform law.
But there’s one major caveat in this announcement.

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Ouch! Asking candidates for family medical info costs biz $187K

By Christian Schappel

This company committed perhaps the cardinal sin under the commonly misunderstood Genetic Information and Nondiscrimination Act (GINA). 
All Star Seed, Inc., La Valle Sabbia and Abatti, three Southern California seed and fertilizer providers operating as a single employer subjected job applicants to inquiries about genetic info (a.k.a., family medical history) and medical conditions as a condition of employment, according to charges filed by the feds.
The Equal Employment Opportunity Commission (EEOC) filed the charges, claiming the company’s practices violated GINA, which prohibits employers from making employment decisions based on genetic info.

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5-minute stress busters — for every season

By United Healthcare-Healthy Mind Healthy Body Feeling frazzled? Try these quick ways to tap some calming energy

It's certainly a hectic and harried time of year. But if you're like many people, that describes your average day too. You've got places to be, people to see and a to-do list a mile long. Really, who has time to relax? You're on the go, go, go. But while you're at it, stress can be zapping your energy. And over time that strain can take a greater toll. It can contribute to burnout and a host of health problems, including anxiety, depression and high blood pressure. So when you feel the tension building, take a few minutes and slow it down. You'll feel better right away — and you'll be caring for your long-term peace of mind and health too.    Five quick fixes You can take yourself from keyed-up to calmer with any of these steps: 1. Take a deep breath — or 10. Sit quietly, breathe deeply and exhale slowly — and try to let go of your worries. 2. Step out. If you can get away, take a short, brisk walk to clear your head. 3. Go to your happy place. Close your eyes — and imagine a favorite serene setting. 4. Tune out the tension. Take a few minutes to listen to some calming music. Or maybe rocking out is more your style. An up-tempo song — and some air guitar or pencil drumming — may do the trick for you. 5. Focus on the upside. When you're feeling overwhelmed, take a few minutes to think about all the blessings in your life, including your own good qualities. Are you stressed over a particular difficult situation? Try to picture at least one positive solution — and what steps you would take to make that happen.      Click here for article.

Tip Tuesday! Reference-Based Pricing and Cost-Sharing Limits

By Linda Rowings

The Department of Labor (DOL), the IRS, and the Department of Health and Human Services (HHS) have jointly issued a FAQ that addresses how "reference-based pricing" works with the Patient Protection and Affordable Care Act's (PPACA) restrictions on out-of-pocket maximums. PPACA limits the out-of-pocket maximum a non-grandfathered plan may impose, and generally requires that co-pays, coinsurance, and deductibles be counted toward this limit. However, premiums, balance billed amounts for non-network providers, and non-covered services do not need to be applied to the out-of-pocket limit. (For 2015, the limits are $6,600 per individual or $13,200 per family.) The new FAQ explains how the out-of-pocket limit applies to plans that use reference-based pricing--i.e., a design under which the plan pays a fixed amount for a particular procedure (such as a knee replacement), which certain providers have agreed to accept as full payment.

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Can Employers Pay for Employees in Exchanges? No.

By Keith R. Mcmurdy

On November 6, the DOL issued FAQ Part 22, which directly addresses some recent efforts by employers to reimburse employees for participation in the exchange through Code Section 105, or through some type of other arrangement.  Here are the questions, with shortened answers.  For a complete copy of the notice, click this link.

Q1: My employer offers employees cash to reimburse the purchase of an individual market policy.  Does this arrangement comply with the market reforms?

No.  If the employer uses an arrangement that provides cash reimbursement for the purchase of an individual market policy, the employer’s payment arrangement is part of a plan, fund, or other arrangement established or maintained for the purpose of providing medical care to employees, without regard to whether the employer treats the money as pre-tax or post-tax to the employee.  Under the Departments’ prior published guidance, the cash arrangement fails to comply with the market reforms because the cash payment cannot be integrated with an individual market policy.

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When HR’s worst Facebook nightmare becomes a reality

By Christian Schappel

Social media can certainly help employers in a lot of ways. But here’s an alarming example of the sad fact that even if you do everything right on social media, it can still burn you down. 
Leslie’s Family Tree, a family-owned cafe in Santaquin, UT, thought what most businesses do these days: “Let’s start a Facebook page to drum up more business.”
It’s got to be regretting that thought now.

Click here for entire article.

CDHPs: How firms can help workers avoid this bad health habit

By Jared Bilski

The popularity of consumer-driven health plans (CDHPs) may be skyrocketing, but an alarming number of businesses are failing to use these plans as directed. Luckily, there are some proven fixes to this problem.

First, some stats to show just how popular these plans have become.
Starting in 2015, more than three-fourths (81%) of all employers will offer at least one CDHP, which is a significant increase from the 63% of firms that did so just five years ago, according to new research by the National Business Group on Health.

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Tip Tuesday! Requirement to Obtain a Health Plan Identifier (HPID) Delayed

By Linda Rowings

On Friday, October 31, 2014, the Department of Health and Human Services (HHS) quietly updated its Health Plan Identifier information page to delay the requirement that insurance carriers and self-funded health plans obtain a health plan identifier (HPID). The delay is in effect until further notice.

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The Story Behind Minimal Changes in Plan Designs and Premium Rates

By Carol Taylor

The United Benefit Advisors (UBA) annual Health Plan Survey for 2014, which contains validated data on 16,467 plans for 9,950 employers, shows minor average change for plans in the last year. The survey contains information on plans that renewed predominantly between June 2013 and June 2014.
While the average in-network deductible rose a mere $49 to $1,901, the larger plan changes are only seen in the median results:

• In-network out-of-pocket maximums jumped $500 for single coverage and $1,000 for family coverage.
• The out-of-network out-of-pocket maximums rose by $1,000 for both single and family coverage.

Click here for entire article.

The problem with high-deductible health plans

By Jared Bilski

With the bulk of employers turning to high-deductible health plans (HDHPs) and banking on employees becoming better overall consumers, the findings in this report can be very disheartening for HR pros.

According to a recent study by the American Institutes for Research (AIR), 42% of individuals are “not likely” or just “somewhat likely” to review a healthcare plan’s details before signing up for coverage. What’s worse, only 20% of health plan participants could correctly calculate how much they owe for a routine doctor’s visit, the AIR study found.

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EEOC’s third wellness lawsuit focuses on ADA and GINA: What HR should know

By Jared Bilski

Bad things, such as celebrity deaths and high-profile federal lawsuits, tend to come in threes. Recently, the Equal Employment Opportunity Commission (EEOC) completed its trifecta by filing its third wellness-related lawsuit of 2014.

Honeywell International, Inc., is the latest organization to find itself on the wrong end of an EEOC lawsuit.

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Tip Tuesday! IRS Announces Other Benefit Limitations for 2015

By Larry Grudzien Attorney-At-Law

The Internal Revenue Service announced  in Revenue Procedure 2014-61  the annual inflation adjustments for more than 40 tax provisions for 2015, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments. 

  

There are several benefit limitations for 2015 included: 

* The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is increased to $2,550.

  

*The amount for the adoption credit or the amount excluded for adoption assistance allowed for an adoption of a child with special needs is $13,400.

  

*The dollar amount for employee health Insurance expense of small employers is $25,480.

  

*The monthly limitation for qualified transportation fringe benefit regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $130. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $250.

  

*The limitations regarding eligible long-term care premiums includible in the term "medical care," are as follows:

  

Attained Age Before the Close of the Taxable Year            Limitation on Premiums

  

40 or less                                                                                              $380

More than 40 but not more than 50                                                      $710

More than 50 but not more than 60                                                   $1,430

More than 60 but not more than 70                                                   $3,800

More than 70                                                                                     $4,750

.

*For Medical Savings Accounts, the term "high deductible health plan"  means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,200 and not more than $3,300, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,450.

  

*For Medical Savings Accounts, the term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $4,450 and not more than $6,650, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $8,150. 

For a copy of Revenue Ruling 2014-61, click here.

Read more from Larry here.

6-step plan for managers to turn around angry employees

By Tim Gould

Let’s face it. Working isn’t always a day at the beach. People get frustrated and angry — and frustrated employees aren’t productive. So HR expert Mel Kleiman has come up a few ways for your managers to bring angry employees back into the fold.  

According to Kleiman, who runs the consulting firm Humetrics, angry or frustrated employees have three choices: They can speak up, let things simmer inside, or they can leave.

Click here to continue reading.

How Wellness Programs Affect Affordability and Minimum Value Calculations

By Linda Rowings

We field a lot of questions from employers about wellness programs and how they comply with PPACA.  Here are two of the most common ones from UBA’s “Frequently Asked Questions (FAQ) About Wellness Programs’ Legal Requirements”:
Q:      How does a wellness program affect affordability calculations?

A:      The proposed regulations provide that when deciding if the employee’s share of the premium is affordable (less than 9.5% of the employee’s safe harbor income), the employer may not consider wellness incentives or surcharges except for a non-smoking incentive. In other words, the premium for non-smokers will be used to determine affordability (even for smokers). Any other type of wellness incentive must be disregarded.

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Email’s not good enough for FMLA notices either, court rules

By Christian Schappel

Courts don’t trust the U.S. Post Office or Gmail, Yahoo Mail, AOL Mail, or any other email service to deliver your Family Medical Leave Act (FMLA) notices to employees. So what’s an employer to do?

Use certified mail or some other form of correspondence with “verifiable receipt” — or deliver the notice in person and get the employee to sign a document stating he or she received it.
Anything short of that, and your hopes of dismissing an FMLA notice claim short of it going to trial are next to nil thanks to recent court rulings.

Click here to continue reading.

Tip Tuesday! 22 PPACA provisions small businesses need to know

By Alson Martin

Changes to health reform laws could present a bit of challenge for small businesses. Don't be caught unprepared before open enrollment begins in November.

1. Which employers are eligible for the tax credit for the purchase of health insurance available in 2010 and thereafter?

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7 in 10 firms hiring over past 12 months: Was yours one of them?

By Tim Gould

More than seven in 10 companies have added staff in the past year, and more organizations are offering employees a 401(k) plan, according to a recent study. So how’s it going at your place?  
Here are a few benchmarks for you to see how your company’s doing in comparison with the participants in the 15th annual Transamerica Retirement Survey.

Seventy-two percent of the employers surveyed said they hired new employees in the last 12 months — only 16% say they’ve had to cut staff.

Almost three-quarters (74%) said they’ve increased salaries in the past year. Just 12% said they instituted salary freezes.

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NLRB just rewrote the rules on employee classification

By Christian Scahppel

Independent contractors (IC) can’t join unions. As a result, it’s in the National Labor Relations Board’s (NLRB) best interest to make it harder to classify employees as ICs — and that’s exactly what it just did.


In a case involving FedEx drivers, the NLRB has added another factor to the test a lot of employers — and courts — use to determine whether a worker is an IC or not.

And in doing so, it has waved its hand in the face of precedent set by a D.C. Circuit Court.
The added factor is more of an amendment to an existing one — the entrepreneurial opportunity standard.

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First case of Internet addiction: 2 ways it could impact HR

By Jared Bilski

Between the passage of the Americans with Disabilities Amendments Act and the American Psychiatric Association’s (APA) addition of “Internet Use Disorder” to its Diagnostic and Statistical Manual of Mental Disorders, HR pros were well aware Internet addiction could become reality in the near future. Now we have the first concrete example.

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Tip Tuesday! Determining If Dental and Vision Plans Are “Excepted Benefits”

By Linda Rowings

The U.S. Department of Health and Human Services (HHS), the Internal Revenue Service (IRS), and the Department of Labor (DOL) released final regulations that explain when dental and vision plans and employee assistance plans (EAPs) will be considered “excepted benefits.” Excepted benefits are health benefits that are limited enough in scope to be exempt from many of the requirements of the Patient Protection and Affordable Care Act (PPACA), such as annual dollar limits, reporting on W-2s and various fees.

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Obamacare: Feds amend mid-year plan change rule

By Jared Bilski

There are very few exceptions to the rule that health plan participants can’t change their elections in the middle of the plan year. Up until recently, those exceptions didn’t account for Obamacare and the new insurance exchanges.
The Internal Revenue Service (IRS) just released Notice 2014-55, which essentially says that individuals can make mid-year changes and opt out of their employers’ health plan if:

• they have a reduction of hours that will drop them below a 30-hours-per-week average but are still eligible for coverage, and
• they want to drop employer coverage and purchase coverage on the exchange without having a period of either duplicate or no coverage.

However, in order for workers to “revoke” or drop out of their employers’ cafeteria plan, the plan must meet two conditions:

Click here to continue reading.

Creative Recruiting: 7 Innovative Ways to Land Your Dream Hire

By Elizabeth DeMarco & Rachel Rossini

If you want to avoid sifting through a stack of poorly written resumes and find your dream hire, simple ad postings just aren’t going to cut it.


While posting ads online might be effective in hiring entry-level employees, the most skilled professionals aren’t likely scouring Monster.com or CareerBuilder for employment opportunities.

Click here to continue reading.

Tip Tuesday! Obamacare: What HR needs to know about final excepted benefits rule

By Jared Bilski

There are a number of benefits — such as dental and vision coverage — that the Affordable Care Act addresses in the “excepted benefits” rules. So HR will definitely want to take a look at the feds’ final rule on this subject.
The Department of Labor (DOL), Health and Human services (HHS) and Treasury just published the final rule on excepted benefits under the healthcare reform law. Rather than sifting through the feds’ guidance, check out this summary of what’s covered in the final rule:

Amended to include EAPs

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Ray Rice scandal: Can you legally fire a domestic abuser?

By Christian Schappel

In the wake of the NFL’s Ray Rice scandal – and more recent domestic violence issues – a lot of employers are asking the same question: Can we fire an employee who’s committed domestic violence? 


This issue was recently tackled head on by The Washington Post, which solicited comments and advice from employment law attorneys.

Click here to continue reading.

6 quick combos for a power breakfast

By Healthy Mind Healthy Body

When you rise in the morning, you've gone hours without eating. And whether you feel it or not, your whole body is saying, "Feed me!"

Do you listen?

Making time for a healthy breakfast can pay big rewards all day long. It gives your body energy to work and play. It fuels your brain to help you think and solve problems. And it may even benefit your waistline. Research shows that people who eat breakfast tend to do better at weight control.

Click here to continue reading.

DOL audits: More health plans getting hit with $10K-plus fines

By Jared Bilski

When the feds start looking into employers’ benefit plans, most HR pros think they’re generally targeting retirement plan issues. But new research shows that’s not necessarily the case.
Not only is the Department of Labor (DOL) investigating health and welfare plans, the agency is also handing down some steep fines based on what it finds.

In fact, more than a quarter (32%) of the health and welfare plans audited by the DOL were hit with fines higher than $10,000 for Employee Retirement Income Security Act (ERISA) and Form 5500 errors. And 5% of the plans the feds looked at were hit with fines of more than $50,000.

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Tip Tuesday! Obamacare regs: 3 top compliance killers

By Jared Bilski

The health reform law has been in place long enough for employers’ compliance efforts to lose some steam. But complacency is leaving many firms wide open to problems.


Some of the health plan strategies employers have been using will hurt their ability to comply with the Affordable Care Act (ACA) moving forward.

The Kaiser Family Foundation recently listed some of the top ACA-compliance problems that can sneak up on employers.

The top three:

1. Grandfathered status loss

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Appeals court reverses landmark telecommuting ruling: Now what?

By Jared Bilski

Remember that historic ruling on telecommuting where a court essentially said employers may have to prove an employee’s physical presence at work is essential? Well, an appeals court just offered a much different slant on this issue.

Before we delve into the federal appeal court’s recent verdict, here’s a recap of the landmark ruling that started it all.

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Attracting great applicants when qualified people are scarce

By Tim Gould

More than three in four employers say they’re struggling to find qualified people to fill their open positions.


Outplacement consultancy Challenger, Gray & Christmas recently conducted a survey of 100 human resources executives in a variety of industries nationwide. The bottom line: 77% of respondents said they were having trouble filling open slots because the applicants they were seeing didn’t have the right backgrounds.

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8 goal-oriented steps to a more engaged workforce

By Andre Lavoie

According to estimates from Gallup, low engagement is costing the economy close to $550 billion annually. Is there an answer to overcoming this growing employee engagement crisis that can in turn increase productivity and satisfaction in the workforce?

Yes: a goal-based employee engagement strategy. This not only keeps entire organizations aligned and working toward the same thing, but also allows individual employees to see their personal contribution to the big picture.

Click here to continue reading.

Tip Tuesday! Flu season: 5 preventive measures to take right now

By Jared Bilski

The summer may have just ended, but HR pros should begin prepping for an event that takes place each winter and, more often than not, inflicts a lot of damage on unprepared workplaces.
Of course, the event we’re referring to is flu season.

To say the flu can wreak havoc on the workplace is a bit of an understatement.
The CDC says almost 111 million workdays are lost because of the flu, and it costs employers around $7 billion in sick days and lost productivity each year.

But well-prepared employers can minimize the impact of the flu and continue with business as usual this flu season.

Best practices

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For better or worse: 3 ways the workplace is about to change

By Jared Bilski

Granted, no one can predict the future with 100% accuracy. But if the modern workplace winds up being anything like what HR pros predicted in a recent report, employees will have lots of adjustments to make.
The consulting firm PricewaterhouseCoopers (PwC) just published a report titled, The Future of Work: A Journey to 2022, which was based on interviews with 500 HR experts in the U.S. as well as several other countries.
And the results of that report paint a different picture of corporate life in the next decade. Here are some of the highlights of the PwC report:

Constant monitoring, survival of the fittest

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Employers pumping the brakes on dependent health coverage

By Christian Schappel

To either help you decide how to adjust your benefit offerings this open enrollment season or justify some of the decisions you’ve already made, here’s a look at what other employers are doing with dependent health coverage

With healthcare costs continuing to climb into 2015, employers are scaling back how much they’re willing to pay for dependent coverage — particularly spousal coverage.

In fact, about one-fifth (22%) of employers said they have already reduced the amount of money they’re willing to contribute toward dependent coverage. And a whopping 50% plan to do so over the next five years.

Click here to continue reading.

Tip Tuesday! No More Election-Lock for Non-Calendar Year Employer Plans

By Katharine Marshall

The IRS recently released welcome additions to the permitted election changes for health coverage under the IRS Code Section 125 Cafeteria Plan mid-year election change rules. The guidance, released as IRS Notice 2014-55, solves an election lock problem that has been facing employer-sponsored non-calendar year plans since the opening of the Federal Marketplace (aka Exchange).
Under the current rules (Treas. Reg. § 1.125-4), an employee is not permitted to revoke an election under the group health plan mid-year solely to enroll in a plan through the Marketplace. For employees participating in an employer-sponsored calendar year plan, this was not an issue. An employee could explore and enroll in a Marketplace plan during the open enrollment period, and begin Marketplace coverage on January 1st, just after the expiration of the employer-sponsored plan. Employees participating in an employer-sponsored non-calendar year plan were not so lucky.

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The one interview question that tells you (almost) everything about an applicant

By Christian Schappel

Looking for that next great interview question to help you nail down the perfect candidate? There’s one in particular you should consider adding to your arsenal. 

At least that’s the opinion of best-selling author and renowned columnist Paul B. Brown, whose latest book, Own Your Future: How to Think Like an Entrepreneur and Thrive in an Unpredictable Economy, has just been published.

Brown has hired a person or two in his day, and he says this question has told him an awful lot about job candidates: “Tell me about your friends.”

(OK, it’s more like a directive than a question, but we digress.)
The reason Brown loves this question: “Good people hang out with other good people,” Brown wrote in his thrice-weekly column on Inc.com.

Click here to continue reading.

Unraveling upcoming IRS rules on Obamacare

By Tim Gould

Next year promises to be a busy year for healthcare reform compliance — so the IRS has already begun issuing sample documents and rule changes for employers. Here’s what HR pros need to know.  

First, the IRS issued draft forms for employers — with insured and self-insured plans that are subject to the Affordable Care Act’s employer mandate — which must be used to verify their compliance.

The filing for these forms is made on the basis of the calendar year — regardless of the type of year on which a firm administers its plan. The first due date for this form is early 2016 and that data will be based on the 2015 calendar year.

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NLRB thwarts another common employer practice

By Christian Schappel

The National Labor Relations Board (NLRB) has taken a hacksaw to yet common employer rule – even when it’s unwritten.

As you may have noticed, the NLRB has been on the warpath to eliminate any employer practices or policies it deems as potentially detrimental to having an organized labor entity take root in a place of business.
Some practices and policies the NLRB has shot down recently, claiming they violate employees’ somewhat vague right under the National Labor Relations Act (NLRA) to discuss the “terms and conditions” of their employment:

• prohibitions on discussing wages
• social media policies prohibiting employees from discussing work matters, and
• handbook policies prohibiting negative comments about fellow team members.

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Tip Tuesday! What to Include in an SBC

By Linda Rowings

A Summary of Benefits and Coverage (SBC) must contain:

• Uniform definitions of standard insurance terms and medical terms (provided in the glossary)
• A description of the coverage for certain categories of benefits
• The exceptions, reductions, and limitations of the coverage
• The cost-sharing provisions of the coverage (deductible, coinsurance, and copayment obligations)
• A statement as to whether the plan offers minimum essential and minimum value coverage
• The renewability and continuation of coverage provisions
• Coverage examples
• A statement that the SBC is only a summary and that the plan document, policy, certificate, or contract of insurance should be consulted to determine the governing contractual provisions of the coverage

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Why hiring overqualified applicants could be your smartest move

By Tim Gould

Conventional wisdom says it’s stupid for companies to hire individuals who are overqualified for open positions — they’re just going to make a break for it when the job market improves. Conventional wisdom is wrong.  

At least that’s the opinion of Dr. John Sullivan, a California-based HR author and consultant. Writing on ere.net, Sullivan says that the assumption that hiring “overqualified” candidates will always result in frustrated employees and quick exits is badly off-target.

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EEOC Files Suit Over Wellness Program

By Linda Rowings

The Equal Employment Opportunity Commission (EEOC) has sued an employer because the penalty it applied for not participating in its wellness program was, in the eyes of the EEOC, so high that participation was not, as a practical matter, “voluntary.” Under EEOC rules, an employer may conduct medical examinations, which includes obtaining medical histories and blood draws, only in limited situations. One of those permitted situations is a voluntary wellness program. Because the program did not qualify as “voluntary,” the questions employees were asked about their health on a health risk assessment, a blood draw, and a range of motion assessment violated the Americans with Disabilities Act (ADA), according to the EEOC’s Complaint.

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Workers avoid retirement planning help: No. 1 reason why

By Jared Bilski

There are some very compelling reasons HR should let workers know there are plenty of places they can go for retirement-planning advice and assistance.

Reason: Nine in 10 retirement plan participants rely solely on themselves when it comes to retirement planning, according to a report from Schwab Retirement Plan Services.
And that can be very dangerous.

After all, many employees rely on their 401k as their main or only source of income in retirement. So if they’re only relying on their own instincts to get that retirement-plan balance where it needs to be, chances are they’re missing out.

More invested in picking a cell phone

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Tip Tuesday! One question employers should be asking about Obamacare?

By Jared Bilski

Employers are asking two main questions about health reform: What do I have to do? and When do I have to do it? But these are the wrong questions.

Instead, employers should be asking: Why am I offering employees healthcare benefits?

They should then use their responses to shape their companies’ healthcare reform compliance efforts and their overarching organizational benefits strategy.

Where to go from here

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Dependent Eligibility: Top Three Reasons Why You Shouldn’t Audit

By Bill Olson

Recently, UBA Partner Mike Humphrey, Senior Benefits Advisor at The Wilson Agency, shared some great insights for those who are considering doing a dependent audit.  He points out three reasons why you shouldn’t do these audits and offers a much better approach to reining in costs associated with covering dependents that should no longer be on your plan.  Humphrey’s long tenure counseling large employers shows once again that sometimes quick-fix solutions for eliminating wasteful spending aren’t worth it in the end, no matter how well intended. Instead, simple changes to the up front enrollment process can avoid a lot of headaches and keep costs in line.

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