August 5, 2009 —Now that we're solidly in to the first recess week for the House, we're realizing how much we've talked about health care reform...and how much we haven't talked about other topics. One of those topics is workplace flexibility, which, despite the amount of attention given to health care bills, saw some significant movement lately.
One bill introduction of note was the introduction of the "Balancing Act of 2009." Led by Rep. Lynne Woolsey (D-CA), the "Balancing Act" is an omnibus workplace flexibility bill that combines many of the bills WorldatWork has been watching recently, including bills impacting paid sick leave and FMLA. It has some pretty heavy hitters as co-sponsors as well including Rep. George Miller (D-CA) (Chairman of the House Education and Labor Committee) and Rep. Carolyn Maloney (D-NY)(Chairwoman of the Joint Economic Committee and sponsor of many workplace flexibility bills herself).
These bills would, essentially, expand the definition of covered employer to those who have 25 or more employees; expand the list of qualifying reasons for taking FMLA leave to include appointments, counseling, and support groups relating to domestic violence, to allow parents to attend school related events for their children, and caring for an elderly relative including visits to nursing or group homes; and would make FMLA leave paid through an FMLA insurance fund that is paid for by contributions made by employers and employees. The bill, through the Healthy Families Act, would mandate that employers allow employees to accrue paid sick time at the rate of at least one hour of paid sick time for every 30 hours worked. Although employers who already have qualifying PTO plans are exempted from this requirement.
The bill also amends the Employee Retirement Income Security Act of 1974 (ERISA) definition of part-time employee when it comes to pension and group health benefits. For pension benefits, generally, if you work between 500-1,000 hours in a year, you are eligible for employer-provided pension benefits.
For group health plan eligibility, employers can only reduce their premium contributions for employees who work less than 30 hours a week and can only reduce their contribution to the level of employees who work 30 hours a week.
The overall definition of "employee" is also changed to include anyone who has is not already considered an ERISA covered employee but, pursuant to an agreement with the employer, has worked for at least a year (6 months in the case of health benefits) at the rate of at least 500 hours of service per year and the services performed are of a type historically performed by employees - basically contract employees.
Finally, the bill establishes a telework pilot program to be conducted by the Secretary of Labor in five states.
This is a lot to be covered in one bill. The feeling among the Public Policy staff is that the representatives on this bill did this to make the individual pieces easier to move in that it's easier to move one big bill through the House than it is to move five little ones that can get lost in the shuffle. We do not expect to see this bill in its entirety passed. Things will get negotiated off as they always do. That said, we are still watching this closely and would love to hear your thoughts on its provisions.
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