Washington OutlookA New Congress_ New Administration and

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							Washington Outlook: A New Congress,
New Administration and New HR Public
                          Policy Issues
     Michael P. Aitken • March 9, 2009
       SHRM Employment Law & Legislative Conference
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                                                      Environment

Environment

 Worst economic crisis since the Great Depression:

    Current unemployment rate is 8.1%, highest since
                Washington rise to 10% New Congress,
    December of 1983. It couldOutlook: A in 2009.
                 unemployed in February 2009 is the
                       p y                 y
    12.5 millionNew Administration and New HR Public
    highest number of unemployed on record since
    1948.                                         Policy Issues
                           Michael Aitken and is
    Federal deficit in 2008 was $455 billion • March 9, 2009
                     $1.7                      $1.2
    predicted to hit $1 7 trillion in 2009 and $1 2 trillion in
    2010.                 SHRM Employment Law & Legislative Conference


      g                                      y
 Foreign affairs issues are never too far away:

    Israeli – Palestinian conflict.
    India-Pakistan – Flare-ups over Sri Lanka.
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                                                    Environment

Environment

 U.S. is involved in two wars.

     President Obama has promised to bring troops home
                Washington Outlook: A New Congress,
               in 16 Administration and New HR Public
     from Iraq New months ...
                                             Policy Issues
     … but has already begun to redeploy troops to
                        Michael Aitken • March 9, 2009
     Afghanistan.
     Afghanistan
                         SHRM Employment Law & Legislative Conference
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                                                      White House
The Obama Administration

 First seven weeks of presidency marked by high energy, high
 expectations, high degree of action and lots of decisions.
    p            g    g

                 Washington Congress which is typically
 Will have “honeymoon” with theOutlook: A New Congress,
                New
 6 to 8 months but ... Administration and New HR Public
                                               Policy Issues
 Areas of initial focus include:
                             Michael Aitken • March 9, 2009
             Cabinet-level
     Getting Cabinet level and senior executive branch
                          SHRM Employment Law & Legislative Conference
     confirmed. Most require Senate confirmation.
     Stimulus package - $787 billion
     Fiscal Year 2009 Appropriations
     Bailout efforts - TARP Part II
     Wars in Iraq and Afghanistan
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                                                     White House
The Obama Administration

 Trying not to repeat mistakes of previous administrations:

     Focus only on priorities.
                  Washington Outlook: A New Congress,
     Control the message.
                 New
     Change “climate”Administration and New HR Public
               climate in Washington
                                             Policy Issues
  But ….:                  Michael Aitken • March 9, 2009
                          SHRM Employment Law & Legislative Conference
     Change doesn’t necessarily mean that Washington will
     change the way it operates.
         g        y     p
 Washington Outlook: A New Congress, New Administration and
                                New HR Public Policy Issues

                                                    White House
Obama Administration

     Centrist agenda may not be the same as some of the
     more liberal congressional leaders.

     This could Washington Outlook: A New Congress,
                be the most active Congress for HR public
               New 35 years.
     policy issues in Administration and New HR Public
                                            Policy Issues
     Economic issues will continue to dominate this 9, 2009
                      Michael Aitken • March
     Congress.
     C
                       SHRM Employment Law & Legislative Conference


     Comprehensive Health Care Reform may not be
     debated until 2010.
Washington Outlook: A New Congress, New Administration and
                               New HR Public Policy Issues
                                                              U. S. Congress

House of Representatives
                 103rd  H o u s e             D emoc rats

                                              R epublic ans

                    0%                        Independants



    40%


                Washington Outlook: A New Congress,
                New Administration and New HR Public
                                       60%



                                           Policy Issues
                 111th Hous e
                         Michael Aitken • March 9, 2009
                                          Democ rats

                                             p
                                          R epublic ans
                         0%
                              SHRM Employment Law & Legislative Conference
                                        Independants



          41%




                                        59%
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                                                     U. S. Congress

Senate
                                   Democ rats
                103rd  S en ate
                                   R epublic ans

                      0%           Independants



         44%

                Washington Outlook: A New Congress,
                                   56%
                New Administration and New HR Public
                                            Policy Issues
                          Michael Aitken • March 9, 2009
                111th S enate  Democ rats

                                    R epublic ans

                      2%   SHRM Employment Law & Legislative Conference
                                  Independants



         41%


                                   57%
                Washington Outlook: A New Congress, New
             Administration and New HR Public Policy Issues

                                                 Key HR Issues

  y
Key Federal HR Issues

 Equal Pay Protections / New Anti-Discrimination Laws

 Labor-Management Relations
              Washington Outlook: A New Congress,
             New Administration and New HR Public
 Workplace Flexibility / Leave Benefits
                                            Policy Issues
                          Michael Aitken • March 9, 2009
   p y                          g
 Employment Verification in Immigration
                       SHRM Employment Law & Legislative Conference

 Stimulus Bill
                   Washington Outlook: A New Congress, New
                Administration and New HR Public Policy Issues

                                                Civil Rights Issues

The Lilly Ledbetter Fair Pay Act (P.L.111-2)

 Signed into law by President Obama, after swift
 p    g y        g     ,         y ,
 passage by Congress, on January 29, 2009.

                 Washington Outlook: A New Congress,
 Bill passed the Senate by a vote of 61 - 36; the House by a
                 New
               177. Administration and New HR Public
 vote of 250 - 177
                                             Policy Issues
                        Court’s decision in March v.
 Overturns U.S. Supreme Michael Aitken •Ledbetter9, 2009
                         Co.
  Goodyear Tire & RubberSHRM Employment Law & Legislative Conference

                       g paychecks cannot be challenged as
 Court held that issuing p y                        g
 a discriminatory act. Claim must be based on compensation
 rate decisions.
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                                              Civil Rights Issues


The new law amends Title VII of the 1964 Civil Rights Act,
the ADA, ADEA, and the Rehabilitation Act.

It does away with the statute of limitations on pay
                 Washington Outlook: A New
discrimination claims.                            Congress,
               New Administration and New HR Public
                                               within Issues
Current law requires employees to bring claimsPolicy 180
                         Michael has no • March 9, 2009
days (if the employee’s home state Aitken equal
                       SHRM Employment employee’s home
employment agency) or 300 days (if the Law & Legislative Conference
state has an equal employment agency).
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                                               Civil Rights Issues


The new law will also re-start the time clock when a retiree
receives an annuity check from an employer, and thus,
keeps employers liable to a discrimination claim long after
   p      p y                                       g
an alleged act of misconduct.
                Washington Outlook: A New Congress,
               New Administration and New
Also expands current law by allowing, not just an HR Public
Also,                          allowing
“aggrieved person,” but other individuals who were Policy Issues
                          Michael Aitken March 9,
“affected” by an act of pay discrimination, to•file claims. 2009
                         SHRM Employment Law & Legislative Conference
New law is effective May 28, 2007.
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                                                Civil Rights Issues

Other Key Issues

 Paycheck Fairness Act: Amends the Fair Labor Standards
 Act to provide new remedies for victims of p y discrimination
        p                                   pay
 on the basis of sex.
               Washington Outlook: A New Congress,
               New Administration and New HR
 Employment Non Discrimination Act: Would prohibitPublic
              Non-Discrimination
                                              Policy Issues
 employment discrimination on the basis of sexual
 orientation.            Michael Aitken • March 9, 2009
                          SHRM Employment Law & Legislative Conference
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                               Labor-Management Relation Issues
Labor-Management Relation Issues

 Unions have been losing members for many years, but that
 trend appears to be ending.

 Pressure to address union setbacks in court decisions.
                  Washington Outlook: A New Congress,
                                      and b organized
                 New Administration focus New HR Public
 Union-friendly legislation ill be
 U i f i dl l i l ti will b major fj       by     i d
 labor.
                                             Policy Issues
                           Michael Aitken • March 9, 2009
                         advertizing blitz to pass “The
 Example: Major nationalSHRM Employment Law & Legislative Conference
 Employee Free Choice Act” (also known as “Card Check”).

 Action on legislation, such as “The Employee Free Choice
 Act,” could occur early in 2009 but Detroit auto troubles
 could change timetable and support.
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                                Labor-Management Relation Issues
Employee Free Choice Act

 Legislation may be introduced today.

  Amends the National Labor Relations Act to change the
 procedures under which employees choose to join or not to
 join a union.
                Washington Outlook: A New Congress,
               New Administration and New HR Public
                                                Policy Issues
 Requires the employer to recognize a union if the union
                         Michael Aitken • March 9,
 obtained signed authorization cards (card checks) from 2009
                         the relevant collective
 more than 50 percent of SHRM Employment Law & Legislative Conference
 bargaining unit.
               Washington Outlook: A New Congress, New
            Administration and New HR Public Policy Issues

                           Labor-Management Relation Issues


Requires the union and employer to enter into binding
arbitration on the terms of an agreement if the union and
the employer were unable to reach a contract within 120
        p y
days (90 days of negotiations and 30 days of mediation on a
first contract). Washington Outlook: A New Congress,
              New Administration and New HR Public
                                      Policy Issues
                    Michael Aitken • March 9, 2009
                       SHRM Employment Law & Legislative Conference
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                              Labor-Management Relation Issues

Executive Orders – Federal Contractor
Regulations

          y ,         ,
 On January 30, 2009, President Obama issued 3 Executive
 Orders (EOs) affecting federal contracting:
                Washington Outlook: A New Congress,
               New Administration and New HR Public
    Nondisplacement of Qualified Workers Under Service
    Contracts                                Policy Issues
                         Michael Aitken Federal Labor
    Notification of Employee Rights Under • March 9, 2009
     Laws             SHRM Employment Law & Legislative Conference
     Economy in Government Contracting
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                               Labor-Management Relation Issues

       p           Q
Nondisplacement of Qualified Workers Under
Service Contracts

Government contracts must include language requiring the
                  Washington Outlook: A New right of
successor contractor to offer existing employees aCongress,
first refusal of employment.
                  New Administration and New HR Public
                                                Policy Issues
 DOL will investigate and enforce the rule and violations
                          Michael Aitken • March 9, 2009
                          debarment.
 may result in contractor debarment
                           SHRM Employment Law & Legislative Conference

 Applies to contracts resulting from solicitations on or after
 the final l       issued.
 th fi l rules are i     d
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                              Labor-Management Relation Issues

                  p y      g
Notification of Employee Rights

Government contracts must include language requiring
contractors to post a notice containing certain information
required by DOL.Washington Outlook: A New Congress,
                New Administration and New HR Public
 DOL will investigate any complaints and the sanctions may
                                               Policy Issues
include cancellation of or debarment from federal contracts.
                           Michael Aitken • March 9, 2009
                          SHRM Employment Law & Legislative Conference
Applies to contracts resulting from solicitations on or after
the final rules are issued.
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                               Labor-Management Relation Issues

      y                         g
Economy in Government Contracting

Prohibits contractors from charging the government for any
costs associated with persuading employees on whether or
not to join a union.
                  Washington Outlook: A New Congress,
                 New Administration and New HR Public
EO lists the following as unallowable expenses:
                                               Policy Issues
         Preparing and distributing materials.
                           Michael Aitken • March 9, 2009
        Hiring or consulting legal counsel or consultants.
             g             g g
        Holding meetings.SHRM Employment Law & Legislative Conference



Applies to contracts resulting from solicitations on or after
the final rules are issued.
                Washington Outlook: A New Congress, New
             Administration and New HR Public Policy Issues

                            Labor-Management Relation Issues

Other Key Issues

 RESPECT Act: Narrows the definition of “supervisor” under
 the NLRA.
              Washington Outlook: A New Congress,
              New Administration and New HR Public
                                      Policy Issues
                    Michael Aitken • March 9, 2009
                       SHRM Employment Law & Legislative Conference
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                       Workplace Flexibility/Leave Benefit Issues
Workplace Flexibility / Leave Benefits

 Key issue during the presidential campaigns.

                                                  2009.
 New FMLA regulations went into effect in January 2009

                 Washington Outlook: A New Congress,
 Lots of “pressure” to expand FMLA benefits and require
                New paid sick leave
 employers to provideAdministration and New HR Public
                                leave.
                                                Policy Issues
                          Michael Aitken • March 9, in
 Legislation to mandate paid sick leave could be debated 2009
                   2009.
 Congress in early 2009
                           SHRM Employment Law & Legislative Conference
 Michelle Obama is reportedly concerned about the issue of
 work life
 work-life balance.

 New White House task force was recently created headed
 by Vice President Biden.
                  Washington Outlook: A New Congress, New
               Administration and New HR Public Policy Issues

                         Workplace Flexibility/Leave Benefit Issues
Healthy Families Act

 Identified as a key priority for the Senate Health
 Education Labor and Pension Committee Chair Ted
 Kennedy (D-MA).
               Washington Outlook: A New Congress,
               New on the issue last and
 House held hearings Administrationweek. New HR Public
                                               Policy Issues
 Requires an employer to provide paid sick leave to full and
                         Michael Aitken • March 9, 2009
 part time employees.
                           SHRM Employment Law & Legislative Conference

 Provides for civil right of action against an employer for
                               requirement.
 violations of the paid leave requirement
               Washington Outlook: A New Congress, New
            Administration and New HR Public Policy Issues

                     Workplace Flexibility/Leave Benefit Issues


 Sick leave may be used for:

     A physical or mental illness of the employee;
     A doctor’s visit or medical visit or diagnosis for the
     employee;Washington Outlook: A New Congress,
              New Administration spouse or HR
     Caring for a child, a parent, or a and Newany Public
     other individual related by blood or affinity that isIssues
                                                Policy
     the equivalent of a family relationship.
                        Michael Aitken • March 9, 2009
                        SHRM Employment Law & Legislative Conference
Allows an employer to meet an “equivalency test” if
the employer offers a similar leave that covers the
requirements of the Act.
             Washington Outlook: A New Congress, New
          Administration and New HR Public Policy Issues

                   Workplace Flexibility/Leave Benefit Issues

                               (H.R.
The Family Leave Insurance Act (H R 824)

  Sponsored by Representative Carolyn Maloney (D-
  NY).

            Washington Outlook: Medical Congress,
  Amends and expands the Family and A New Leave
  Act.     New Administration and New HR Public
                                              Policy Issues
  Amends FMLA to cover employers with 25 or more
  employees.        Michael Aitken • March 9,          2009
                     SHRM Employment Law & Legislative Conference
              Washington Outlook: A New Congress, New
           Administration and New HR Public Policy Issues

                    Workplace Flexibility/Leave Benefit Issues


Allows up to 24 hours in a 12-month period for parental
involvement and family wellness leave.

                                                30-day
Prohibits more than 4 hours of leave during any 30 day
period.
            Washington Outlook: A New Congress,
            New Administration and New HR Public
Provides employee leave to participate/attend school
                                           Policy Issues
or community sponsored activities of child or
grandchild.
                    Michael Aitken • March 9, 2009
Allows employee leave to meet routine family medical
                       SHRM Employment Law & Legislative Conference
needs of spouse, child or grandchild of employee or to
care for elderly relatives, including visits to
nursing/group homes.
              Washington Outlook: A New Congress, New
           Administration and New HR Public Policy Issues

                     Workplace Flexibility/Leave Benefit Issues

                              (H.R.
Family Friendly Workplace Act (H R 933)

   Sponsored by Cathy McMorris Rodgers (R-WA).

   Allows private employers to offer employees the choice
   of receiving Washington Outlook: A New Congress,
                pay or compensatory time off for working
   overtime. New Administration and New HR Public
                                               Policy Issues
   Requires employee to have worked 1,000 hours within
   the last 12 months to Michael Aitken • March 9, 2009
                         be eligible for comp time.
                      SHRM Employment Law & Legislative Conference
           Washington Outlook: A New Congress, New
        Administration and New HR Public Policy Issues

                   Workplace Flexibility/Leave Benefit Issues



Employee may:

   Accrue pay or time at a rate of one and one-half
   times for each hour worked past 40.
           Washington Outlook: A New Congress,
   Accrue up to 160 hours of comp time in 12 months.
          New Administration and New HR Public
                                           Policy
   Cash-out unused comp time with the employer Issues
                     Michael Aitken • March 9,
   required to provide the cash-out within 30 days 2009
                      request.
   after received the request
                    SHRM Employment Law & Legislative Conference

   Use the accrued comp time within a reasonable
   time after request as long as use of the comp time
   does not unduly disrupt the operations of the
   employer.
             Washington Outlook: A New Congress, New
          Administration and New HR Public Policy Issues

                    Workplace Flexibility/Leave Benefit Issues



Employer:

   Able to cash-out accrued comp time in excess of
   80 hours after providing employee 30 days written
   notice. Washington Outlook: A New Congress,
            New Administration and New HR Public
    Required to cash-out unused comp time at the
    higher of the regular rate at which time Policy Issues
                                             was
                      Michael Aitken • March 9, 2009
    earned or the final regular rate.
                      SHRM Employment Law & Legislative Conference
Permits employers to offer comp-time program only if
(1) it is part of a collective bargaining agreement or (2)
the employer and employee voluntarily agree in writing
to the programs prior to the performance of work.
               Washington Outlook: A New Congress, New
            Administration and New HR Public Policy Issues

                     Workplace Flexibility/Leave Benefit Issues

Other Key Issues
  Family Leave Insurance Act: Provides 8 weeks of
  paid leave to employees for the types of leave permitted
  under the Family and Medical Leave Act.
             Washington Outlook: A New Congress,
             New Administration and New HR Public
                                     Policy Issues
                   Michael Aitken • March 9, 2009
                       SHRM Employment Law & Legislative Conference
              Washington Outlook: A New Congress, New
           Administration and New HR Public Policy Issues

                              Employment Verification Issue

Employment Verification
  Failed in the last Congress because both Republicans
  and Democrats were divided on the immigration issue.
  More states are moving forward with verification rules
  of their own.Washington Outlook: A New Congress,
            New Administration and New HR Public
  Comprehensive immigration reform is not likely until
  2011 - 2012.
                                            Policy Issues
                      Michael Aitken • March 9, 2009
                     SHRM Employment Law & Legislative Conference
               Washington Outlook: A New Congress, New
            Administration and New HR Public Policy Issues

                                Employment Verification Issue

       y
E-Verify Extension
   Employment verification system known as E-Verify
   expires in March 2009 but will likely be extended
               year.
   through the year

                Washington Outlook: requirement that
   SHRM filed a lawsuit to prevent a newA New Congress,
   all federal contractors must use E-Verify. New HR Public
                New Administration and
                                              Policy use
   Pending regulations requiring federal contractors toIssues
                        Michael Aitken • 2009 as a
   E-Verify have been delayed until May 21, March 9, 2009
             SHRM s                regulations.
   result of SHRM’s lawsuit on the regulations
                       SHRM Employment Law & Legislative Conference
                 Washington Outlook: A New Congress, New
              Administration and New HR Public Policy Issues

                                       Health Care Reform Issues

Health Care Reform Issues
  Number 2 or 3 issue for the public.
  President Obama has said health care reform would be
  one of his priorities, but other major issues, such as the
                Washington Outlook: A New Congress,
  Economic Stimulus Package, has delayed action.
                                      and New HR Public
  Withdraw of New Administration Daschle, a health
               former Majority Leader Daschle
                                             Policy Issues
  care reform advocate, as Secretary of HHS has slowed
  down effort.          Michael Aitken • March 9, 2009
                          SHRM moving forward with health
  However, President call for Employment Law & Legislative Conference
  care reform in his joint presentation to Congress in late
          y
  February.
  Expansion of State Children’s Health Insurance Plan
  (SCHIP) signed into law in February.
                Washington Outlook: A New Congress, New
             Administration and New HR Public Policy Issues

                                     Health Care Reform Issues

Health Care Reform Issues
  Number 2 or 3 issue for the public.
  President Obama has said health care reform would be
  one of his priorities, but other major issues, such as the
                Washington Outlook: A New Congress,
  Economic Stimulus Package, has delayed action.
               New Administration and New HR Public
                                       Daschle,
  Withdrawal of former Majority Leader Daschle a health
                                            Policy Issues
  care reform advocate, as Secretary of HHS has slowed
  down effort.          Michael Aitken • March 9, 2009
                          SHRM Employment forward with Conference
  However, President called for movingLaw & Legislative health
  care reform in his joint presentation to Congress in late
          y
  February.
  Expansion of State Children’s Health Insurance Plan
  (SCHIP) signed into law in February.
                                                 Washington Outlook: A New Congress, New
                                              Administration and New HR Public Policy Issues

                                                                                    Health Care Reform Issues
                                                                              Uninsured
                                                                                15%


                                                                                             Medicaid/
                              Employer-                                                     Other Public
                              Sponsored                                                        13%
                              Insurance          Washington Outlook: A New Congress,
                                53%
                                                 New Administration and New HR Public
                                                                     Medicare
                                                                           Policy Issues
                                                                       14%
                                                       Michael Aitken • March 9, 2009
                                                                       Private Non-
                                                                          Group
                                                                 SHRM Employment Law & Legislative Conference
                                                                           5%


NOTE: Includes those over age 65. Medicaid/Other Public includes Medicaid, SCHIP, other state programs, and
military-related coverage. Those enrolled in both Medicare and Medicaid (1.7% of total population) are shown
as Medicare beneficiaries.
SOURCE: Kaiser Commission on Medicaid and the Uninsured/Urban Institute analysis of March 2008 CPS
                                  Washington Outlook: A New Congress, New
                               Administration and New HR Public Policy Issues

                                                                           Health Care Reform Issues
  Which comes closer to describing your own views?
  Given the economic challenges facing the country…


   …it is more
    p
 important than
 ever to take on
health care reform                                          we cannot
                                 Washington Outlook: A New Congress,
                                   62%
                                                              take on
                                                            HR Public
                                 New Administration and New health care
                                                         Policy Issues
                                                           reform right
                                                     34%        now
                                       Michael Aitken • March 9, 2009
                                                    SHRM Employment Law & Legislative Conference
                                                                4%


                                               Don’t Know/ Refused
               Note: Among registered voters in October 2008.
Source: Kaiser Health Tracking Poll: Election 2008 (conducted Oct 8-13, 2008).
   Washington Outlook: A New Congress, New
Administration and New HR Public Policy Issues

                       Health Care Reform Issues




 Washington Outlook: A New Congress,
 New Administration and New HR Public
                         Policy Issues
       Michael Aitken • March 9, 2009
          SHRM Employment Law & Legislative Conference
                Washington Outlook: A New Congress, New
             Administration and New HR Public Policy Issues

                                       Health Care Reform Issues

Health Care Reform Issues
  President Obama’s preferred reform plan is modeled
  after Massachusetts Health Care Plan:
  - Require all children to have health insurance.
                employers to Outlook: A New Congress,
  - Require all Washingtonoffer employee health
    benefits orNew Administration and New HR Public
                contribute to the cost of a new public
    program.                                    Policy Issues
                      Michael
  - Expand Medicaid and SCHIP. Aitken         • March 9, 2009
                        Health Insurance Exchange
  - Create the National SHRM Employment Law & Legislative Conference
    through which small businesses and individuals
    without coverage could enroll in a new p
                  g                         public p plan.
                Washington Outlook: A New Congress, New
             Administration and New HR Public Policy Issues

                                      Health Care Reform Issues

  y                    Questions
Key Health Care Reform Q
  Delivery Model: Public / private system or single-payer or
  individual-based system.
  Employer Role: Voluntary nature of the employer-based
               Washington Outlook:
  system vs. “pay or play” requirement. A New Congress,
              New Administration and obtain
  Individual Role: Require all individuals to New HR Public
                                                Policy Issues
  coverage vs. limited (children) or no individual mandate.
                        Michael Aitken • March 9, 2009
  Financing: Pay for reforms vs. further deficit spending.
                       SHRM Employment Law & Legislative Conference
  Cost Containment: Cost and quality transparency or
  prevention and wellness.
                Washington Outlook: A New Congress, New
             Administration and New HR Public Policy Issues

                                           Tax Stimulus Issues

                y
American Recovery and Reinvestment Act
(P.L.111-5)

     g              y
   Signed into law by President Obama on February 17,y ,
   2009 the massive $788 billion stimulus bill is aimed at
               Washington Outlook: A New Congress,
   addressing the ailing economy.
              New Administration and New HR Public
   ARRA, however, contains several provisions of interest
   to the HR community.
                                           Policy Issues
                      Michael Aitken • March 9, 2009
   Legislation   id a 65% premium subsidy f
                                  i         id for
   L i l ti provides SHRM Employment Law b Legislative Conference
                                         &
   COBRA up to 9 months for individuals who are
   unemployed beginning September 1, 2008.
            Washington Outlook: A New Congress, New
         Administration and New HR Public Policy Issues

                                         Tax Stimulus Issues


Individuals with income 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
             Washington Outlook: A New Congress,
coverage, would be given an additional 60 days after
            New Administration and New HR
they receive notice of the special election period to Public
elect to receive the subsidy.                 Policy Issues
                     Michael Aitken • March 9, 2009
                                       1.
COBRA provision became effective March 1
                     SHRM Employment Law & Legislative Conference
             Washington Outlook: A New Congress, New
          Administration and New HR Public Policy Issues

                                           Tax Stimulus Issues

ARRA also provides $119 billion in financial incentives
and future penalties to hospitals and medical facilities
to implement health information technology programs.

Standards for the nationwide electronic exchange of
health information would be developed by 2010. Bill
            Washington Outlook: A New Congress,
also expands current federal privacy and security
            New Administration and New HR Public
protections for health information.
                                       Policy Issues
                  Michael Tax Credit creating two
Expands the Work Opportunity Aitken • March 9, 2009
new categories of individuals eligible for the credit:
                      SHRM Employment Law & Legislative Conference
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.
             Washington Outlook: A New Congress, New
          Administration and New HR Public Policy Issues

                                          Tax Stimulus Issues


Creates a “Making Work Pay” refundable tax credit
that would provide up to $400 for individuals and up to
$800 for working families. This tax credit is calculated
 t     t f 6 2% f         di             d     ld h
at a rate of 6.2% of earned income, and would phase
out for taxpayers with adjusted gross income in excess
              Washington Outlook: A New Congress,
of $150,000 for couples filing jointly and $75,000 for
single filersNew Administration and New HR Public
       filers.
                                            Policy Issues
Taxpayers will receive this benefit through a reduction
                     Michael Aitken • March 9, 2009
in the amount of income tax that is withheld from their
                     SHRM Employment Law & on their tax
paychecks, or through claiming the credit Legislative Conference
returns.
             Washington Outlook: A New Congress, New
          Administration and New HR Public Policy Issues

                                          Tax Stimulus Issues


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
 t     t       it U S     k    f th j b i      hi h the H-
steps to recruit U.S. workers for the job in which th H
1B is sought. TARP beneficiaries would be required to
             Washington Outlook: A New Congress,
offer the job to any equally or better qualified U.S.
            New Administration and New HR Public
                     applied.
workers who have applied
                                            Policy Issues
Provision to reauthorize E-Verify for 4 years and one2009
                      Michael Aitken • March 9,
that would have required federal contractors that
                    SHRM use E-Verify system were
receive stimulus money toEmployment Law & Legislative Conference
dropped from the final bill.
            Washington Outlook: A New Congress, New
         Administration and New HR Public Policy Issues

                                        Tax Stimulus Issues


Extend the period for individuals to collect
unemployment benefits under the recently enacted
Unemployment Compensation Act of 2008 (Public Law
110-449) to M 31 2010. The benefits and
110 449) t May 31, 2010 Th b          fit    d
administration costs would be funded through the
            Washington Outlook: A New Congress,
general fund of the Treasury rather than the Federal
           New Administration and
Unemployment Tax Act (FUTA) surtax. New HR Public
                                 surtax
                                        Policy Issues
Increase the unemployment benefit by $25 per week2009
                    Michael Aitken • March 9,
and would be available to all individuals receiving
                   SHRM Employment Law & benefits or
regular unemployment benefits, extendedLegislative Conference
emergency unemployment benefits.
            Washington Outlook: A New Congress, New
         Administration and New HR Public Policy Issues

                                       Tax Stimulus Issues


Provides $7 billion in funding to states to modernize
their unemployment compensation systems.

The funding is paid from the UI trust fund and an
extension of the FUTA surtax, paid by employers.
             Washington Outlook: A New Congress,
States must adopt an “alternative base pNew HR Public
           Newp   Administration andperiod”
allowing workers to meet new eligibility requirements.
                                            Policy Issues
Additionally, states would have to meet two of the
                      Michael Aitken
requirements below to access funds: • March 9, 2009
            Family Related Needs Law & Legislative Conference
                     SHRM Employment
            Job training
            Part-time work
                         eek
            Uniform 26 week
            Child Assistance
      Washington Outlook: A New Congress, New
   Administration and New HR Public Policy Issues

                                 Contact Information




     Mike Aitken
Mike.Aitken@shrm.org Congress,
   Washington Outlook: A New
   New Administration and New HR Public
    703-535-6027
    703 535 6027 Policy Issues
              Michael Aitken • March 9, 2009
             SHRM Employment Law & Legislative Conference

						
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