Navigating Pre- and Post- Election Tensions

Every four years, a U.S. presidential election brings voters to an intersection where they decide whether to turn right or left. Halting at these intersections often brings heightened tension and polarizing discourse within our workplaces and society. Taking proactive measures to ensure the safety and well-being of employees and providing an environment conducive to effective collaboration among employees can help prevent fraught work environments from forming. Here are some practical procedures that employers may want to consider implementing throughout standard day-to-day operations, before and after an election, to efficiently navigate establishing ground rules and policies, fostering environments of open dialogue, and providing support.

Learn more from Ogletree Deakin's article on pre-election and post-election measures that assist employers in creating safe and inclusive work environments where all employees feel valued, respected, and supported, regardless of political beliefs.

Read the Article Here

DOL Updates Model Employer CHIP Notice

The U.S. Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), has released a new model Employer CHIP Notice with information current as of July 31, 2024.

Background

As a reminder, the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA) imposes an annual notice requirement on employers that maintain group health plans in states that provide premium assistance subsidies under a Medicaid plan or a Children’s Health Insurance Plan (CHIP).

An employer can choose to provide the notice on its own or concurrent with the furnishing of:

Materials notifying the employee of health plan eligibility;
Materials provided to the employee in connection with an open season or election process conducted under the plan; or
The summary plan description (SPD).

Covered Employers

An employer is subject to this annual notice requirement if its group health plan covers participants who reside in a state that provides a premium assistance subsidy, regardless of the employer’s location.

Read the Legal Update HERE

USCIS Extends Form I-9 Expiration Date

On Aug. 2, 2024, the U.S. Citizenship and Immigration Services (USCIS) announced that it updated its Employment Eligibility Verification form, also known as Form I-9, to extend the form’s expiration date from July 31, 2026, to May 31, 2027.

On Aug. 1, 2023, the USCIS published a new version of the Form I-9 that employers were required to use beginning on Nov. 1, 2023. Some of the most notable changes included the following:

Sections 1 and 2 were reduced to a single sheet; all previous fields remained, but some fields were merged;
The preparer/translator certification area was moved to a standalone supplement that employers can use as necessary for initial verification or recertification;
Section 3 (Reverification and Rehire sections) was moved to a standalone supplement that employers can use as necessary; and
The list of acceptable documents now includes some acceptable receipts, guidance and links to information on automatic extensions of employment authorization documentation.

Read More HERE

Deadline for MLR Rebates is Approaching

Employers with insured group health plans may soon receive a medical loss ratio (MLR) rebate from their health insurance issuers. Issuers who did not meet the applicable MLR percentage for 2023

must provide rebates to plan sponsors by Sept. 30, 2024. These rebates may be in the form of a

premium credit or a lump sum payment.

The MLR rules require health insurance issuers to spend a minimum percentage of their premium dollars on medical care and health care quality improvement. This percentage is 85% for issuers in the large group market and 80% for issuers in the small and individual group markets. States may set higher MLR standards than the federal 80%/85% thresholds.

Issuers must report to the federal government how they spent their premium dollars for each calendar

year by July 31 of the following year. Issuers who do not meet the applicable MLR standard

must provide rebates by Sept. 30, following the end of the MLR reporting year. Issuers who issue

rebates must provide plan sponsors and participants with a notice explaining the rebate and how

it was calculated.

Download graphic HERE

Report: Employers Plan to Raise Wages 3.9% in 2025

The latest Salary Budget Planning Report

released by Willis Towers Watson (WTW) shows that salary budget increases are expected to rise by 3.9% in 2025. The overall median pay raise for 2024 dropped to 4.1%, compared with 4.5% in 2023.

Although these expected wage increases have diminished since 2023, this figure remains high compared to many previous pay cycles, where 3% was common.

WTW’s report also revealed the following:

Almost half (47%) of U.S. organizations reported that their salary budgets for the 2024 cycle are lower than from 2023.
Total annual payroll expenses (which include salaries, bonuses, variable pay and benefit costs) continue to rise considerably in the United States. Almost three-quarters (73%) of companies report that their total payroll expenses were higher than last year.
Nearly half (49%) of companies are hiring people at higher salaries.

Read more HERE

Potential Impact of the FTC's Non-Compete Ban on Employee Benefits & Exec Compensation

The Federal Trade Commission’s (FTC) ban on non-competition covenants (“non-competes”) could significantly impact the design and administration of employee benefits and executive compensation arrangements.

Quick Hits

The FTC’s ban on noncompetition covenants has potential implications for several aspects of employee benefits and executive compensation plans and arrangements, such as Code Section 457(f) plans, restricted stock, severance arrangements, golden parachute payments, and garden leave.
The rule takes effect on September 4, 2024, but a federal district court in Texas recently granted a preliminary injunction staying the enforcement of the final rule as to the parties in the case. The court’s decision, pending a final ruling on the merits by August 30, 2024, has signaled that the FTC’s noncompete rule will not survive judicial scrutiny.

Although the U.S. District Court for the Northern District of Texas recently granted a preliminary injunction staying enforcement of the rule as to the parties to a lawsuit seeking to vacate and set aside the rule, employers whose plans or compensation arrangements utilize non-competes may want to consider assessing the applicable plans’ compliance with the ban, as well as potential impacts if the non-competes are rendered invalid.

For examples of plans and arrangements that may be affected by the ban according to an article by Ogletree Deakins, read HERE.

How to Address Employee Burnout

Employee burnout is escalating globally, with a significant number of workers experiencing severe physical, emotional and mental exhaustion. The 2024 Global Talent Trends report reveals that approximately 82% of employees are at risk of burnout, primarily due to financial pressures and excessive workloads.

Burnout occurs when long-term stress overwhelms employees’ ability to cope, leading to lower productivity, negative feelings and a diminished sense of effectiveness at work. It can also result in serious health consequences, such as insomnia and heart disease.

As substantial burnout levels persist, it’s important for employers to recognize the signs and implement preventive measures to create a healthier, more productive work environment.

Spotting Signs of Employee Burnout

Recognizing burnout is the first step toward addressing it. Check with your employees if they exhibit the following symptoms:

Persistent tiredness and lack of energy
Noticeable decline in productivity, creativity and efficiency
Feelings of disconnection from colleagues and a lack of enthusiasm for work
Increased irritability, anxiety and depression
Frequent headaches, muscle pain and other stress-related ailments

Creating a work culture that values employee well-being is essential in preventing burnout. Click below to learn about some strategies your organization can adopt.

Tips For Preventing Employee Burnout