Hunton Employment & Labor Perspectives

Is your payroll system ready for the new reporting requirements for group health benefit costs under The Affordable Care Act?  Under IRS guidance, the Form W-2 reporting of group health plan coverage costs will become mandatory this year.  Beginning with the 2012 Forms W-2 due in 2013, employers must report the aggregate value of certain employer-provided health coverage in Box 12 (with Code DD).  For many employers, this will involve substantial groundwork and will generally require that any needed payroll reporting changes be done before year-end.

Section 302 of the Labor Management Relations Act (LMRA) is, and always has been, an odd law. Its bare terms — which make it unlawful for an employer to “pay, lend or deliver” money or any “other thing of value” to a labor union or official, or for a union to “request, demand, receive or accept” the same from an employer — can be read expansively. Its most commonly cited proscriptions carry nothing more than a general intent requirement, suggesting that one can violate its provisions inadvertently.

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In Patterson v. Domino’s Pizza, LLC, the California Court of Appeals overturned the lower court’s order granting summary judgment to a franchisor and held that the terms of the franchise agreement did not necessarily govern whether the franchisor could be held strictly liable for the actions of an employee of the franchisee. 

As the 2013 open enrollment season approaches, group health plan sponsors are trying to hold down health care costs.  Implementing a wellness program may be part of that effort.  The difficulty lies in designing a program that promotes wellness without running afoul of the Equal Employment Opportunity Commission (EEOC).

July 1, 2012 has come and gone and ERISA retirement plans should have received fee disclosures from their covered service providers.  Now plan fiduciaries have to do something with all that information.  Where do you start?

The Americans with Disabilities Act (ADA) prohibits discrimination against individuals with disabilities. Once an employer becomes aware of an employee’s disability, the ADA requires the employer to provide a “reasonable accommodation” to enable the employee to perform the essential functions of his or her job.  While the type of reasonable accommodation required can vary greatly depending on an employee’s disability and essential job functions, it was not until recently that a court found that permitting an employee to work in natural light can be a reasonable accommodation.

Group health plan sponsors have an additional date to add to their calendars, thanks to the Patient Protection and Affordable Care Act (ACA). The new summary of benefits and coverage (SBC) disclosure rules for group health plans go into effect soon. Disclosures that tell participants what their plan covers and what it costs must be provided starting with enrollment periods and plan years that begin after September 22,  2012. Attached is an overview of what you need to know now about the new SBC requirements.

The Supreme Court recently announced the cases for which it has granted certiorari for the 2012-2013 term.  Among these, and now slated to be adjudicated in the nation’s highest court next term, are the appeals of three cases that will surely impact employment litigation.  In these cases, the Court will discuss (1) what the evidentiary standard is in federal courts, post-Dukes,  for class certification, (2) whether a case becomes moot, and thus beyond the judicial power of Article III, when the lone plaintiff receives an offer from the defendants to satisfy all of the plaintiff's claims, and (3) what constitutes a “supervisor” for a vicarious liability claim under Title VII.

Is your cafeteria plan ready for the new health care flexible spending account (FSA) employee contribution limit?  Beginning in 2013, the Patient Protection and Affordable Care Act (ACA) limits the maximum amount that an employee can elect to contribute to a health care flexible spending account (FSA) to $2,500 per year.  While plan sponsors could, prior to ACA, impose limits on the amount of elective employee contributions to a health care FSA, there was no statutory limit.

Health plan sponsors should be aware of new fees taking effect soon that are imposed by the Patient Protection and Affordable Care Act (ACA).  Here is a quick review of the fees as described in the recent proposed Treasury Regulations.