The Johnson & Dugan Blog

Readying for Open Enrollment

Benefits Communications to Take Center Stage

More than ever, employees are looking to their employers and their human resource (HR) departments for information and tools to select their benefits. In fact, employers and their HR departments are now the number-one source consulted for advice during open enrollment (63%), surpassing co-workers (55%), spouse (54%) and benefit advisors (39%), according to MetLife’s 2008 Open Enrollment Survey.

“As employees continue to bear more responsibility for choosing and paying for their benefits, they have a stronger interest in making smarter decisions than they did in years past, and they are asking their employers for the information and tools that will help them choose wisely,” says Bill Mullaney, president, Institutional Business, MetLife.

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Updated I-9

The Department of Homeland Security U.S. Citizenship and Immigration Services has extended the expiration date on Form I-9, Employment Eligibility Verification to 6/30/09. The Revision Date on the new form is 6/16/08, however, forms with Edition Date of 6/5/07 are acceptable.

To download the most current form, go to: http://www.uscis.gov/i-9

Anthem Blue Cross Wellness Programs

Niko Washington, Account Executive, Johnson & Dugan

Insurance carriers are developing specialized programs to help employers promote employee wellness. Anthem Blue Cross, for example, offers the 24/7 NurseLine and Health Coaching. Continue reading for the Anthem Blue Cross descriptions of these programs, which are available to participants in the Anthem Blue Cross medical plans. Employees should register online through the Anthem Blue Cross website, where they will find additional information on these programs under the 360 Degree Health tab.

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Employer Opinion Survey

Wellness Programs, Tools Help Control Costs

Incentive-based employee wellness programs and chronic disease management programs, combined with enhanced employee education and communications, are gaining increased use as key cost-containment alternatives, according to United Benefit Advisors’ (UBA) 2008 Employer Opinion Survey.

These changes are also being fueled by the increasing applicability and decreasing costs of web-based solutions and the growing sophistication of benefit advisors, thus enabling employers of all sizes to now have access to tools, services, and programs that were previously available only to very large employers.

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Threefold Increase

Workplace Wellness Programs on Rise in 2008

The number of employers implementing specific wellness programs increased threefold from 2007 to 2008. In 2008, for example, the top five wellness programs that are being implemented are promoting physical activity (68% vs. 19% in 2007); disease management programs (60% vs. 18%); health risk appraisals (48% vs. 14%); biometric screening (47% vs. 12%); and telephonic health care coaching (45% vs. 14%), according to Aon Consulting’s 2008 Benefits and Talent Survey.

The figures reflect employers’ recognition of the link between employee lifestyle behaviors and medical expenditures, according to Tom Lerche, Aon Consulting’s Health Care practice leader. Employers are embracing wellness and health promotion programs for other reasons as well: as effective recruitment tools, a way to reduce disability costs, and a way to reduce absenteeism, he said.

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Department of Labor Announces Employment Law Advisor

Jody Lee, Compliance Manager, Johnson & Dugan

The Department of Labor (DOL) has released a web tool to help employers comply with employment laws such as ERISA, COBRA, HIPAA Portability, the Newborns' and Mothers' Health Protection Act, the Women's Health and Cancer Rights Act, Family and Medical Leave Act (FMLA), and USERRA. The tool will help companies determine what laws they must comply with, direction regarding required posters, and a brief explanation of each law.

The tool includes three interactive “advisors”: Employment Law Overview Advisor, Recordkeeping, Reporting, and Notices Advisor, and the Poster Advisor. To access the advisor tools, go to: http://www.dol.gov/elaws/firststep/

Each Advisor will walk you through a series of questions in order to provide information tailored to your organization. The results can be printed as a reference guide. In addition, downloads are available for required posters.

Only major laws governed by the DOL are included in the Employment Law Advisor, and employers should continue to rely on their standard sources for overall compliance advice.

This tool is an excellent resource to add to any company’s compliance efforts. Please contact your Johnson & Dugan team for additional information.

New Jersey – Third State to Provide Paid Family Leave

Jody Lee, Compliance Manager, Johnson & Dugan

New Jersey has joined California and Washington as the third state to offer Paid Family Leave. Called “Temporary paid family disability leave”, the law allows paid time off to care for a family member who has a serious health condition or in connection with the birth or placement for adoption of a child. Leave pay will be two-thirds of salary, up to $524 per week.

The law was passed in April of 2008, however, the law includes in the definition of employers “those whose employees are eligible for benefits after June 30, 2009”, meaning the effective date of the paid leave is June 30, 2009. All employers covered by New Jersey’s unemployment compensation law are also required to provide this benefit to employees who are currently employed or who were previously employed but have been out of employment for less than two weeks.

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FMLA Military Family Leave Entitlements

Jody Lee, Compliance Manager, Johnson & Dugan

Two new entitlements have been added to the Family and Medical Leave Act (FMLA) as a result of the National Defense Authorization Act (NDAA). The first allows eligible employees of covered employers the right to 26 weeks of FMLA leave in a single 12-month period to care for a family member who has suffered a serious injury or illness while on active military duty. A family member would include the spouse, son, daughter, parent or next of kin (nearest blood relative) of an eligible employee. In addition, eligible employees of covered employers can take FMLA leave because of “any qualifying exigency (to be determined by regulations) arising out of the fact that the spouse, son, daughter or parent of an employee is on active duty or notified of impending call or order to active duty in the Armed Forces in support of a contingency operation.”

The FMLA amendments took effect on January 28, 2008, however, “qualifying exigency” has not yet been defined. This provision will not take effect until the Secretary of Labor issues corresponding regulations. For more information on the regulations, go to the U.S. Department of Labor website: http://www.dol.gov/esa/whd/FMLANPRM.htm

These amendments to the FMLA are new laws and regulations are not yet in place to implement them. When you encounter an employee situation that may fall under one of these entitlements, you should consult your legal counsel.

For more information on how the FMLA affects your organization, contact your Johnson & Dugan Team.

AB910 - Disabled Persons Support and Health Care Coverage

The California legislature passed AB910 to amend the Family Code, the Health and Safety Code and the Insurance Code as they relate to disabled persons. The bill went into effect January 1, 2008. Additional coverage requirements for an over-age dependent child have been provided, when the child "is and continues to be both incapable of self-sustaining employment by reason of mental retardation or a physical handicap and chiefly dependent upon the subscriber or insured for support".

• A health care service plan and a health insurer must provide notice to the subscriber or insured at least 90 days before the dependent child attains the limiting age.
• The subscriber or insured has 60 days from receipt of the notice to submit proof of eligibility, as described above.
• The plan or insurer will review and determine whether or not the child meets the criteria. Coverage will remain active until a determination is finalized.

In the instance when the subscriber or insured in changing carriers, the new plan or insurer must continue coverage for the dependent child. The new insurer may request information about the dependent child initially and not more frequently than annually thereafter in order to determine if the child continues to meet the criteria. Any subsequent request must be submitted to the plan or insurer within 60 days of receiving the request.

Please contact your Johnson & Dugan team if you would like additional information on this topic.

Employers Will Face Increased Penalties for Immigration Violations

Global Immigration Alert from Fisher & Phillips, LLP

Effective March 27, 2008, the Department of Homeland Security has increased penalties levied on employers for various employment-related immigration violations by approximately 25% in order to keep up with rising inflation.

Some examples of the new penalties are as follows:

• First violation for knowing employment of an unauthorized alien, $375.00 (previously $275.00)

• First violation maximum penalty, $3,200.00 (previously $2,200.00)

• Multiple violations maximum penalty, $16,000.00 (previously $11,000.00)

All penalties are assessed on a per-alien basis and haven’t been adjusted since 1999. Homeland Security Secretary, Michael Chertoff has described the new penalty hikes as "part of our effort to continue to make it less appealing for people to break the law" and "a way to keep that pressure up."

Please contact your immigration attorney if you have any questions.