Big Changes for Employers in 2010
April, 2010
Health Care Reform
President Obama recently signed into law numerous reforms to health care laws. The reforms impose many requirements on employers and health plans. The effective dates range from immediate to far into the future.
Effective now
- Many small employers (with fewer than 25 full-time employees) may be eligible for a tax credit to purchase health insurance for their employees.
Future changes
- In 2010: Starting in June, some employment-based plans will be eligible for reimbursement for providing coverage to early retirees and eligible dependants.
- In 2011: Starting in January, employers will be required to report the value of health coverage on W-2 forms. Changes to HSA requirements are also coming in 2011, including a prohibition on use of HSA funds for over-the-counter medicine, and an annual HSA contribution limit of $2,500.
- In 2014: Certain employers with more than 50 employees will be subject to a fine for not providing health coverage to employees, and they will be required to offer "free choice vouchers" to low income employees. The vouchers can be used by employees to apply the value of employer-based coverage to the cost of enrolling in a state Health Benefit Exchange program.
- Effective Date To Be Determined: Many large employers (with more than 200 full-time employees) will be required to enroll their employees in one of the health plans they offer.
Oregon Family Leave
The Oregon Department of Labor has published the new Oregon Family Leave Act (OFLA) regulations. They are effective immediately. The new regulations clarify that calling in sick (without more) is not sufficient notice to trigger an employer's obligations under OFLA. They also provide that within five business days of learning of an employee's need for OFLA leave, the employer is required to inform the employee whether s/he is eligible and qualifies for leave. The new regulations do not incorporate some of the recent changes to the federal Family and Medical Leave Act (FMLA), including changes to the definition of serious health condition under the FMLA and FMLA revisions that allow persons other than the employer's health care provider to contact the employee's health care provider.
Medical Marijuana Accommodation
On April 14, 2010, the Oregon Supreme Court ruled that employers need not accommodate an employee's use of medical marijuana, even if the use occurs off-duty. An employee may be lawfully disciplined or terminated for being under the influence of marijuana on the job, in accordance with the employer's policies. This decision overturned many prior administrative decisions and lower court rulings.
Ban on Credit Checks
Effective July 1, 2010, Oregon employers are banned from using credit histories for any employment purpose. This includes using credit checks for purposes of screening job applicants, termination, promotion, or compensation. There are a couple of narrow exceptions to the ban, including credit histories that are substantially job-related if the use of the credit history is disclosed in writing, and employers that are required by law to use credit histories for employment purposes.
WHAT EMPLOYERS NEED TO KNOW: Employers need to be aware of these new requirements under state and federal law. Employers should update their employee handbooks to reflect the new laws. Employers should also be sure to provide training to management and human resource personnel on the new laws so that they are implemented correctly. Please contact your Bullivant lawyer if you have any questions about these new laws, to have your handbook updated, or to schedule a training session.