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HR Matters
HR Matters - July 2007 - Volume XI, Issue 123
July 31, 2007
LABOR & EMPLOYMENT NEWSNew Federal Minimum Wage. Effective July 24, 2007, the federal minimum wage increased to $5.85 for nonexempt employees. The Department of Labor (DOL) requires all employers to post its new poster. Copies of the new poster are available on the DOL website at http://www.dol.gov/esa/regs/compliance/posters/flsa.htm . For Ohio employers, the new federal minimum wage does not supersede Ohio’s minimum wage of $6.85 that became effective on January 1, 2007.
EEOC Adopts Guidance for Treatment of Employees in Caregiver Roles . The EEOC announced new enforcement guidance that highlights how disparate treatment of employees who care for children, parents, or other family members may amount to unlawful discrimination under Title VII of the 1964 Civil Rights Act, the Americans with Disabilities Act, or the Family and Medical Leave Act. The EEOC developed the guidance in response to testimony outlining how gender stereotypes and sex-based discrimination can adversely affect the career prospects of employees in caregiver roles. For example, men who choose to assume a caregiving role can be subject to hostility from supervisors, while women are often denied professional growth opportunities because employers believe that they will shun their careers in favor of caregiving. Studies show that shift-dependent employers and small firms (less than 100 employees) are less likely to offer productive work-life policies such as flextime, telecommuting, and the option to bring children to work in emergencies. The EEOC guidance can be found at http://www.eeoc.gov/policy/docs/qanda_caregiving.html.
WORKPLACE HEALTH & SAFETY NEWS
Tips for Avoiding Back Injuries . Workplace back injuries accounted for 4 of the 10 most common lost-time injuries according to a study of claims submitted from 1996 to 2005 by the BWC. Common back injuries included: lumbar sprain/strain (#1); lumbosacral sprain/strain (#3); thoracic sprain/strain (#6); and lumbar disc displacement (#7). To avoid injuries, employers should identify risk factors in the workplace and then put controls in place to reduce or eliminate them. BWC ergonomists are available, at no extra charge, to analyze the physical relationship between your workers and your workplace. Also, the ergonomists can suggest better ways for your workers to perform their jobs that will reduce their risks for injuries. To take advantage of this service, contact your local BWC customer service.
IMMIGRATION NEWS
Comprehensive Immigration Reform. On June 28, 2007 the United States Senate voted against moving forward on Comprehensive Immigration Reform, effectively eliminating any chances of new legislation before the 2008 Presidential election. Some lawmakers have introduced amendments to other bills, such as the Department of Homeland Security Appropriations Act, but these amendments have either been voted down directly, or defeated through congressional rules of procedure. However, there are still many options available for employers to engage foreign workers under existing immigration laws.
On July 30, a new fee structure for visa applications will go into effect. The USCIS has stated that the new fees are aimed at reducing the processing times by the end of fiscal year 2009.
EMPLOYEE BENEFITS & EXECUTIVE COMPENSATION
Final Roth 401(k) Regulations. The IRS recently issued the final Roth 401(k) regulations. These regulations are generally effective for tax years beginning on or after January 1, 2007. The regulations clarify that excess Roth 401(k) deferrals must be returned to the participant by April 15 of the following year or the amount of excess will be included in the participant’s gross income even though it was already taxed when deferred. The final regulations also clarify that a qualified distribution is one that occurs after a five year period of participation and the participant either attains age 59 ½, dies or becomes disabled. The final regulations state a plan that accepts a Roth rollover does not have to account for the rollover funds separately from other Roth contributions.
EB Question of the Month: Do bonus plans have to be reviewed by year end for compliance with 409A? Yes, bonus or other cash incentive awards can constitute deferred compensation under the final 409A regulations, unless they are structured so as to be paid out within a specified time period after the employee earns a vested right to the payment. Generally, the plan must specify a particular date or range of dates that the payment will occur or the payment must be made no later than two-and-a-half months after the end of the year in which the employee earns a vested right to payment. A payment that does not comply with Section 409A in either form or operation will be subject to tax at the time it is vested (as opposed to when it is paid) and also subject to interest and a penalty tax.
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.