J&D Benefits Perspective

New Bills Will Greatly Affect Discrimination Claims, Health Benefits

President Barack Obama kicked off his first few weeks in office by signing a pair of bills that will significantly affect benefits compliance and discrimination lawsuits against employers.

Obama’s first significant bill, the Lilly Ledbetter Fair Pay Act of 2009, likely will make it easier for employees to sue employers for pay discrimination.

The bill overturns a 2007 Supreme Court ruling that stated that a worker, in order to meet the statute of limitations, had to file a discrimination claim within 180 days from the company’s initial decision to pay that worker less than another employee doing the same job.

The new law, however, removes any statute of limitations, meaning each paycheck can be a possible instance of discrimination.

Healthy San Francisco 2009

Jody Lee, Compliance Manager, Johnson & Dugan

San Francisco employers should be aware of the upcoming deadline to submit the Annual Reporting form for the Health Care Security Ordinance (Healthy San Francisco) to the Office of Labor Standards Enforcement (OLSE). For-profit employers with 20 or more employees and nonprofit organizations with 50 or more employees must submit the form by April 30, 2009 to report the minimum health care expenditures for covered employees.

2009 changes:
•    Employees are eligible when working only 8 hours per week, after completion of 90 calendar days of employment.
•    2009 expenditure rates are $1.23/hour for a Medium Business Size (20-99 employees) or $1.85/hour for a Large Business Size (100+ employees). These rates should be used to calculate the minimum expenditure for the first quarter of 2009.
•    The annual salary exemption limit has increased to $80,397 or $38.65/hour. A manager, supervisor or confidential employee earning above the limit will be exempt from coverage under the ordinance.

Michelle’s Law – Coverage for College Students on Medical Leave of Absence

Jody Lee, Compliance Manager, Johnson & Dugan

Both the federal government and the State of California have passed “Michelle’s Law”, allowing college students to continue coverage on a parent’s group health plan if they are required to take a medical leave of absence from school. The laws are similar, but each takes effect on a different date. California Legislation, SB1168, took effect on January 1, 2009 and the Federal law, HR2851, will take effect on the first day of the Play Year on or after October 9, 2009.