The findings of the
2007 annual survey of employer-sponsored health
insurance by the Kaiser Family Foundation and
Health Research and Educational Trust are now
available. A quick scan of the numbers indicates
that most didn’t change all that much from the
spring of 2006 until this spring. Approximately
the same percentage of employers offer health
insurance to their workers (60% in 2007 vs. 61%
in 2006) and the average annual premiums
increased by 6.1%, down somewhat from the 7.7%
increase for 2006. The good news is that this
marks the 4th consecutive year in which the rate
of growth for premiums has declined. This is
also the lowest rate of increase since 1999 when
premiums increased by only 5.3%. Almost half
(46%) of the plans offered by employers
experienced increases of 5% or less. While the
current trend toward a lower rate of change in
premiums continues, it is important to note that
since 2001, premiums for family coverage have
increased by 78%. Over that same period
inflation has gone up 17% with wages increasing
only 19%.
The average annual health
insurance premium for single coverage was $4,479
in the 2007 survey with family plans averaging
$12,106 across all employer size categories with
little variation between small and large
employer plans or between plans fully insured
and those that were self-funded. Of workers with
single coverage 80% contributed an average of
$694 toward their premiums and 94% of those with
family plans contributed an average of $3,281
toward annual premium costs. Overall, workers
with single coverage contributed 16% of premium
costs and those with family plans contributed
28%. This proportion of premium cost shared by
workers has remained relatively stable and
worker contribution continues higher for small
employer plans. MORE
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The Department of
Homeland Security is the latest government
agency to step in with a proposed solution to
undocumented workers in the U.S. In August it
issued new rules that would take effect on
September 14 placing increased responsibilities
and burdens on employers. The Social Security
Administration (SSA) currently notifies
employers that have 10 or more employees with
information that does not match the SSA
database. However, employers have not been
required to act upon these notices. The new
Homeland Security rules basically would give
employers just 90 days to resolve ‘no-match’
letters from the SSA. On August 31 the new rules
were put ‘on-hold’ when a U.S. District Court
Judge temporarily blocked their implementation
in response to suits filed by various labor and
civil rights organizations. The U.S. Chamber of
Commerce and other business groups have also
filed suits to block implementation. The SSA was
preparing to send out 140,000 ‘no-match’ letters
to employers involving over 8 million workers.
The Chamber estimates that resolution of these
notices would cost small businesses in the U.S
over $100 million.
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WAGE AND HOUR
LAWS
Q. Must
I pay employees double-time if they work on
Sundays or holidays?
A. There is no
legal requirement to pay double-time for work
performed on Sundays or on holidays. If
employees are eligible for a paid holiday and
also work on the holiday, they would be paid for
their hours worked in addition to their holiday
pay. Of course, any hours over 40 in a week are
to be paid at time-and-a-half for non-exempt
employees.
Q. Is there a
minimum call-in pay that I am required to pay
employees?
A. If an employee
is called in to work, the employer is only
required to pay them for their actual time
worked. While some employers may choose to have
a company policy that will pay employees a
minimum of 2 or 4 hours in order to reward and
encourage employees to be willing to suddenly
come in if needed, there is no law requiring
them to do so.
Q. Do I need
to pay employees when they are on-call?
A. Employees do not have to be paid for
on-call time, only hours worked. Keep in mind
that employees must be given an adequate amount
of time to report to work, giving them the
freedom to do what they wish with their free
time. A reporting time of less than 30 minutes
may be considered too restrictive. If the
employee is required to remain at home or any
other one location, this may be considered work
time. An employer is allowed to require the
employee to abstain from alcohol consumption
during on call time.
Q. Can I give an
employee comp time instead of paying overtime if
the employee would prefer it?
A.
Even if an employee wishes to have compensatory
time off, employers are legally required to pay
time-and-a-half for all hours worked over 40 in
a week for non-exempt employees. Therefore
because overtime must be paid for in the pay
period in which it was earned, this is an
illegal practice, if the compensatory time is
saved for a later pay period. The employer can
choose however, to allow the employee to leave
work early, come in late, or take a day off to
offset extra hours in the same workweek.
Q. When must I pay my employees for
travel time?
A. Travel time is
paid differently depending on if it includes an
overnight stay or if the travel is done all in
one day. Employers must pay travel time for
employees required to travel to another city and
return home the same evening, minus the normal
commuting time, whether the travel time is
within normal working hours or not. Employers
must compensate employees required to stay
overnight in another city, for travel only
during normal working hours, but regardless of
the day of the week. |
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Based upon past
articles in the HR Exec, it should
come as no surprise to hear that another study
has identified Generation Y workers as ‘high
risk’ for departure. A report from Walker
Information on loyalty in the workplace
confirms that these newest workers to enter the
workplace are 6% more likely to move on to
another job than the next older age group -
Generation X. However, this report adds a new
twist by saying that these young workers also
represent the highest percentage of ‘truly
loyal’ employees coming in 6 points higher than
even the famously loyal ‘baby boomers’. The
Gen-Y workers are educated and highly skilled.
They are also eager to buy-in to their
employer’s mission. But if they don’t find the
environment supportive of their continued growth
and advancement, they are prepared to look
elsewhere. This outlook isn’t unique to the
Gen-Y worker as the percentage of workers
categorized as ‘high risk’ to leave exceeds
those classified a ‘loyal’ regardless of age.
This has made worker retention a business
problem that more and more HR executives are
struggling to address with competitive pay,
benefits, recognition and career advancement
programs. MORE
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| We have been warning
of the impending year-end deadline for changes
to 409A compliance so you may be relieved when
you hear that Treasury and the IRS have extended
'the deadline'. Be careful. The
document compliance deadline has been extended
for those businesses scrambling to apply changes
in Internal Revenue Code Section 409A to
nonqualified deferred compensation plans.
However, the requirements and effective date of
the new requirements haven’t changed, just the
document compliance deadline. This means a plan
can now be amended retroactively during
2008 back to January 1, 2008 but it still must
be in operational compliance with the new
requirements throughout the year. Since
operational compliance hasn’t changed, the
review of arrangements potentially subject to
409A prior to December 31, 2007 is still
required to be in compliance with the final
regulations by year-end. |
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Ameren Illinois
utilities has launched a program to assist small
businesses and non-profit organizations hard hit
by higher electric bills. A qualifying
organization may receive one-time credits of up
to $5,000 toward their Ameren electric bills.
Part of a $1 billion rate relief package for
Illinois electric customers, the Non-Residential
Hardship Assistance Program extends assistance
to the non-residential market. To qualify,
businesses and organizations must meet the
eligibility guidelines listed on www.ameren.com
and be able to demonstrate a financial hardship
caused by this year’s electric rate increase.
Non-profit applicants must provide proof of
their non-profit status; businesses must have
fewer than 50 employees and have experienced at
least a 30 percent increase in their electric
bill from July 2006 to July 2007. For complete
program guidelines or an application, visit www.ameren.com
or call your Ameren Illinois utility.
Applications for assistance must be postmarked
no later than October 12, 2007.
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The Illinois
Environmental Regulatory Group (IERG) is
offering seminars specifically designed to
detail the technical and legal requirements and
expectations necessary for environmental
compliance. Give your in-house management the
basics crucial to their effective use of outside
experts. Three (3) sessions will be presented
covering regulations in the areas of Air
(9/24), Water (10/29) and Land (11/7). You
are encouraged to attend all sessions and bring
your outside experts along with you. Application
has been made for accreditation with the Illnois
MCLE Board. Discounted rates are available to
IERG and Illinois Chamber members. CLICK
HERE for complete information and
registration.
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| The Department of
Labor has announced that this year’s Drug-Free
Workplace Week will be held October 14 through
20. The purpose of Drug-Free Work Week is to
educate employers, employees and the general
public about the importance of being drug-free
as an essential component of a safe and
healthful workplace. Throughout the week the DOL
and alliance members will conduct various
activities to help employers, supervisors and
workers understand how to implement effective
drug-free workplace programs that focus on
detection and deterrence while also offering
assistance and support for workers who may have
problems with alcohol or drugs. CLICK
HERE to find out how your business can
participate. |
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| Knowing what you can
and can't do will help you prevent costly
mistakes. Call our staff of HR experts. Let Pam
Holleman help you deal with problems safely and
avoid disputes. You can reach the Helpline
toll-free at 800-322-4722. |
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| Your membership in the
Illinois Chamber pays! We offer valuable
programs and services to our members at special
discounts. CLICK
HERE for our growing list of outstanding
seminars, workshops and programs that will help
you with your everyday business needs.
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The Chamber urges all
Illinois employers to recognize their Guard and
Reserve employees by signing and displaying the
ESGR Statement of Support. To get yours, simply
complete an online
form and you will receive a personalized
certificate that demonstrates your support. Click
here for answers to Frequently Asked Questions
(FAQ's) for employers and reservists. Also
visit the SBA Veteran's Business Development web
site for assistance to small business owners
that have employees activated in the Guard or
Reserves. Click MORE
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The
HR Exec - Copyright © 2007 The Illinois
Chamber
Wood
S. McComb, Editor
Pam
Holleman, Manager, Human Resource
Information
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