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HR Matters
October 2006 - Volume X, Issue 114
October 31, 2006
LABOR & EMPLOYMENT NEWSEmployers Must File Revised EEO-1 Report in 2007 . For the first time in 40 years, the EEOC has revised the EEO-1 Report. Private employers or enterprises with 100 or more employees (excluding primary and secondary school systems and institutions of higher education) are required to submit this report annually. Employers will be required to file the revised report in calendar year 2007 by September 30, 2007. The revised report contains changes to the race/ethnic and job categories used on the report. The EEOC added a new race/ethnic category titled "two or more races." Also, the EEOC divided the "Asian or Pacific Islander" race/ethnic category into the following separate categories: "Asian" and "Native Hawaiian or other Pacific Islander." The EEOC renamed the "Black" race/ethnic category to "Black or African American" and renamed the "Hispanic" race/ethnic category to "Hispanic or Latino." The EEOC strongly endorses that employers rely on self-identification as opposed to visual identification to determine an employee's race and ethnic background. Additionally, the EEOC divided the "Officials and Managers" job category into the two levels depending on an individual's responsibility and influence in the organization. For assistance regarding the new EEO-1 reporting requirements, please contact a GH&R Labor & Employment attorney.
Pregnant Police Officer Not Similarly Situated to Injured Male Co-Workers. A pregnant police officer sued the police department for a violation of the Pregnancy Discrimination Act when she was denied a light duty position. She argued that a male employee who had a muscle injury and an employee with a broken toe received more favorable treatment. A federal Court of Appeals disagreed. The male employees were willing and able to continue working in their ordinary capacities while the pregnant police officer requested a temporary alteration of her job duties. The Court noted that the Pregnancy Discrimination Act does not require preferential treatment for pregnant employees. It mandates that the employers treat pregnant employees the same as non-pregnant employees who were similarly situated with respect to their ability to work. The police department treated the pregnant officer the same as the male employees because the city had a policy that prohibited assignment of police officers to light duty positions. (Tysinger v. Police Dep't of Zanesville)
WORKPLACE HEALTH & SAFETY NEWS
Senate Bill 7 Referendum Not on November 7 Ballot. Senate Bill 7 (SB7) contains many provisions that will cut costs, increase revenue, and improve service for participants in Ohio's workers' compensation system. This was a negotiated bill that contains compromises by business, labor, and the BWC. We reported in our September 2006 newsletter that a referendum challenged several provisions of SB7. On October 20, the Supreme Court of Ohio let stand a Court of Appeal's decision that found that proponents of the referendum had filed insufficient signatures. Therefore, the referendum (which would have been State Issue 1) will not appear on the November 7 ballot. As such, all provisions of SB7 have an effective date of June 30, 2006, unless otherwise specified in the legislation. Please contact a GH&R workers' compensation attorney for additional information regarding SB7.
EMPLOYEE BENEFITS & EXECUTIVE COMPENSATION NEWS
DOL Proposed Regulations Regarding Default Investments . As noted in the September edition of HR Matters, the Pension Protection Act of 2006 provides protection to employers who choose default investments when using an automatic enrollment feature. The DOL has recently issued proposed regulations clarifying the relief available to fiduciaries and establishing rules for qualified default investment alternatives (QDIA). A QDIA must not impose financial penalties or otherwise restrict the ability of the participant or beneficiary to transfer the investment to another investment; it must be managed by an investment manager or a registered investment company; the investments must be diversified; and none of the default investments may be in employer securities. A QDIA may be a life-cycle or targeted-retirement-date fund, balanced fund, or professionally managed account. The proposed regulations provide additional conditions that must be met for fiduciary relief to be provided, including notice requirements.
Deferred Compensation Deadline Extended. The IRS recently published a notice that for most purposes extends the compliance deadline for the nonqualified deferred compensation regulations under Code Section 409A from December 31, 2006 to December 31, 2007. Employers have been required to comply with Section 409A since January 1, 2005, but have been operating under guidance that included transition relief until the end of 2006. The recent notice generally extends the transitional relief rules that were scheduled to expire December 31, 2006 through 2007. Further, the notice extends the deadline for bringing plan documents into compliance to December 31, 2007.
Medicare Part D Notices Due by November 14 . Under Medicare Part D regulations, a notice of prescription drug creditable coverage must be provided to Part D eligible individuals. The notice must be provided at least as often as the following times: prior to an individual's initial enrollment period for Part D; prior to the effective date of enrollment in the entity's coverage, and upon any change in creditable status; prior to the Part D Annual Coordinated Election Period which begins on November 15 of each year; and upon request. Therefore, notices for the 2007 calendar year must be delivered to plan participants by November 14, 2006. Even employers who provide their own drug coverage and are eligible to receive the subsidy are required to provide the notice. The only employers who are exempt are those who contract directly with Medicare as a Part D plan or contract with a Part D plan to provide qualified prescription drug coverage. The Centers for Medicare and Medicaid Services (CMS) have produced various model notices which are available at www.cms.hhs.gov/creditablecoverage.
This Newsletter is a periodic publication of Graydon Head & Ritchey LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult your own advisor concerning your situation and any specific legal question you may have.