Tuesday, June 30, 2009

ARRA for Employee's Health Care

American Recovery and Reinvestment Act (ARRA) of 2009, the economic stimulus legislation, were approved by the House of Representatives and Senate On Friday, February 13, 2009.

On April 3, 2009, the Office of Management and Budget (OMB) published Implementing Guidance for ARRA. This is the second installment of detailed government-wide guidance for carrying out programs and activities enacted in the Recovery Act.

Employers' obligations under COBRA have been significantly increased by ARRA. Employees who have terminated their employment between September 1, 2008 and December 31, 2009 are entitled to continue their heath care coverage through COBRA. What those employees need do is pay 35 percent of their premiums for up to nine months. Employers are obligated to pay for the remaining 65 percent. Apparently employer has to pay some money; however, they do not have any loss as they can deduct their cost from federal payroll taxes. Employers must immediately comply with the law by providing notice to eligible individuals, collecting 35% of the premiums from the employees, paying 65% themselves, and filing quarterly tax returns claiming a credit for the 65% subsidized amount.

ARRA mandates that plans notify certain current and former participants and beneficiaries about the premium reduction. Employers should send notices to employees who are involuntarily terminated between September 1, 2008 and December 31, 2009.

The Department created model notices 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. The forms were posted on the DOL website on March 19, 2009.

Does CFRA equal to FMLA

The U.S. Department of Labor published new regulations governing the Family Medical Leave Act (FMLA). The rules became effective on January 16, 2009.

California Family Rights Act ("CFRA") is called "California version of FMLA". There are many similarities between CFRA and FMLA, but a HR professional should also know the differences between the two leave acts.

The new FMLA regulation can not be fully applied in because California has its own separate statutory and regulatory scheme. The Fair Employment and Housing Commission, The California agency responsible for regulating CFRA, issued a statement and a chart comparing the two Acts and their regulations.

On November 17, 2008, the federal Department of Labor issued revised regulations interpreting the FMLA. These new regulations differ from comparable regulations that the Commission had issued interpreting the California Family Rights Act. The Commission plans to revise its CFRA regulations. It has made a comparison between the revised FMLA regulations and the Commission's CFRA regulations."

Although we do not have a clear idea when the new CFRA regulations will be proposed, and we do not know whether the new regulation will make a closer step to the new FMLA, there is one thing for sure: Employers must of course comply with both state and federal law.

The following are some examples.

Domestic Partners. CFRA covers leave to care for "spouses" in the traditional sense of the word and registered domestic spouses, while in FMLA registered domestic spouses are excluded. Military Leave. FMLA now includes 26 weeks of leave to care for injured family members in the military, and 12 weeks of leave for "qualified exigencies" related to certain military deployments. California does not offer this right, although in a separate statute spouses of certain military members may take leaves.

Overtime. Under FMLA, overtime hours that would have been worked but for leave can be deducted from the 12 week leave entitlement. The employer has no such expression under CFRA.

State and Federal Regulations for Summer Jobs

Here comes summer. It is time for some teenagers to go to the workforce to earn some money. Companies who hire teenagers should be highly aware that state and federal law restricts the use of minors. Every company should be clear about this labor law poster requirement State and federal law apply to "minors." According to the California Labor Code, minors refer to people under the age of 18 who are required to attend school. The definition also includes people under age 18 who are not required to attend school because they are not California residents. The definition also covers any child under the age of six.

A person under the age of 18 but has graduate from high school or the equivalent is not a minor according to this definition as he is not required to go to school. So the child labor laws would not apply.

Work permits are required to employ "minors" under the age of 18. Generally, permits can be obtained from the student's school. Schools are not permitted to issue permits for children under age 12, but under federal law it is generally impermissible to employ an individual under age 14. The documents are usually issued from the superintendent's office, or by the superintendent's designated representative.

You should know that work permits have its expiration, so it is important to know the effective dates. Permits issued during the school year expire at the start of the next school year. That is to say, if you would love to hire a teenager for another school term, you need to obtain a new permit

To comply with Labor Code requirement, the school district's permit form includes the following information: the minor's name, age, birth date, address, telephone number, and social security number. The permit must be signed by both the issuing school representative and the student.

Let's take a look at some details about the work time by the California Education Code. Minors age 16 or 17 cannot work more than 8 hours per day or 48 hours per week. They may work as early as 5:00 a.m. or as late as 12:30 a.m. as long as there is no school the following day.

Not all the occupations are allowed for child labor. Children of certain ages are prohibited from working in a number of hazardous jobs, for example, a number of manufacturing, industrial, and construction occupations, as well as driving a motor vehicle. So before hiring a minor, you should make it clear that weather state and federal law permit the child to work the occupation.

Tuesday, June 23, 2009

Does CFRA equal to FMLA

The U.S. Department of Labor published new regulations governing the Family Medical Leave Act (FMLA). The rules became effective on January 16, 2009.
California Family Rights Act ("CFRA") is called "California version of FMLA". There are many similarities between CFRA and FMLA, but a HR professional should also know the differences between the two leave acts.
The new FMLA regulation can not be fully applied in because California has its own separate statutory and regulatory scheme. The Fair Employment and Housing Commission, The California agency responsible for regulating CFRA, issued a statement and a chart comparing the two Acts and their regulations.
On November 17, 2008, the federal Department of Labor issued revised regulations interpreting the FMLA. These new regulations differ from comparable regulations that the Commission had issued interpreting the California Family Rights Act. The Commission plans to revise its CFRA regulations. It has made a comparison between the revised FMLA regulations and the Commission's CFRA regulations."
Although we do not have a clear idea when the new CFRA regulations will be proposed, and we do not know whether the new regulation will make a closer step to the new FMLA, there is one thing for sure: Employers must of course comply with both state and federal law.
The following are some examples.
Domestic Partners. CFRA covers leave to care for "spouses" in the traditional sense of the word and registered domestic spouses, while in FMLA registered domestic spouses are excluded. Military Leave. FMLA now includes 26 weeks of leave to care for injured family members in the military, and 12 weeks of leave for "qualified exigencies" related to certain military deployments. California does not offer this right, although in a separate statute spouses of certain military members may take leaves.
Overtime. Under FMLA, overtime hours that would have been worked but for leave can be deducted from the 12 week leave entitlement. The employer has no such expression under CFRA.

State and Federal Regulations for Summer Jobs

Here comes summer. It is time for some teenagers to go to the workforce to earn some money. Companies who hire teenagers should be highly aware that state and federal law restricts the use of minors. Every company should be clear about this labor law poster requirement State and federal law apply to "minors." According to the California Labor Code, minors refer to people under the age of 18 who are required to attend school. The definition also includes people under age 18 who are not required to attend school because they are not California residents. The definition also covers any child under the age of six.
A person under the age of 18 but has graduate from high school or the equivalent is not a minor according to this definition as he is not required to go to school. So the child labor laws would not apply.
Work permits are required to employ "minors" under the age of 18. Generally, permits can be obtained from the student's school. Schools are not permitted to issue permits for children under age 12, but under federal law it is generally impermissible to employ an individual under age 14. The documents are usually issued from the superintendent's office, or by the superintendent's designated representative.
You should know that work permits have its expiration, so it is important to know the effective dates. Permits issued during the school year expire at the start of the next school year. That is to say, if you would love to hire a teenager for another school term, you need to obtain a new permit
To comply with Labor Code requirement, the school district's permit form includes the following information: the minor's name, age, birth date, address, telephone number, and social security number. The permit must be signed by both the issuing school representative and the student.
Let's take a look at some details about the work time by the California Education Code. Minors age 16 or 17 cannot work more than 8 hours per day or 48 hours per week. They may work as early as 5:00 a.m. or as late as 12:30 a.m. as long as there is no school the following day.
Not all the occupations are allowed for child labor. Children of certain ages are prohibited from working in a number of hazardous jobs, for example, a number of manufacturing, industrial, and construction occupations, as well as driving a motor vehicle. So before hiring a minor, you should make it clear that weather state and federal law permit the child to work the occupation.