On May 19, 2023, Governor Tim Walz signed into law House File No. 782, establishing the Minnesota Secure Choice retirement program. Minnesota has now joined California, Colorado, Oregon, Illinois, and other states in creating a state-run retirement savings program for employees working with small employers without their own retirement plans.
Employers, at least for now, may have some relief from some of the Affordable Care Act (ACA) requirements to cover preventive care services without cost sharing under a nationwide injunction issued March 30, 2023, by a federal judge in Texas.
In response to House Joint Resolution 7, which was signed into law on April 10, 2023, ending the National Emergency declaration that had been in effect since March 2020, the U.S. Department of Labor and the U.S. Department of the Treasury have clarified informally that they intend to continue to use May 11, 2023, as the relevant date in applying guidance on the end of the National Emergency.
Employers facing a June 1, 2023, deadline for 2022 prescription drug cost reporting have important new clarification on issues such as plans that cover more than one employer, average monthly premium calculations, and medical plans that carve out prescription drug benefits.
Employers are increasingly offering periods of leave as a benefit for employees to combat burnout and retain high-quality workers. Employees are also asking for leave more frequently.
As employers plan for the impact of the anticipated May 11, 2023, end of the two federal COVID-19 emergency orders, they have some important new clarity on test and vaccine coverage and on how to unwind COVID-19–era extended deadlines, including for COBRA continuing healthcare coverage elections.
On March 3, 2023, the U.S. District Court for the District of Puerto Rico issued a decision declaring Law 41-2022 null and void, effectively reinstating the prior state of many of Puerto Rico’s employment statutory entitlements. The decision will impact employees’ statutory benefits and rights, including vacation pay and sick leave, meal periods, holiday bonuses, and statutory severance pay.
SECURE 2.0 may cause some insecurity. However, the law’s changes to the treatment of overpayments from employer-sponsored retirement plans may replace that insecurity with relief.
With the pandemic winding down, deadlines for employee benefit plans governed by the Employee Retirement Income Security Act (ERISA) will be resuming. Two different emergencies affect employer-sponsored group health plans: the national emergency and the public health emergency.
After months of suspense and intrigue on whether SECURE 2.0 would make it to the finish line and become law, the U.S. Congress ended the suspense by attaching SECURE 2.0 to the Consolidated Appropriations Act, 2023 funding bill on December 23, 2022. President Biden made it official on December 29, 2022, by signing the appropriations bill into law (Public Law No. 117-328).
Employers that provide 401(k) plans on documents that have been “pre-approved” by the Internal Revenue Service (IRS) beware: there is yet another annual notice requirement that may need to be added to your compliance list.
The Consolidated Appropriations Act, 2023 (CAA 2023) holds some welcome news for employers that offer a high deductible health plan (HDHP) option paired with a health savings account (HSA).
Employers have a reprieve from the challenging December 27, 2022, deadline for reporting 2020 and 2021 prescription drug cost information to the U.S. Department of Health and Human Services (HHS).
On December 13, 2022, President Joe Biden signed H.R. 8404, known as the Respect for Marriage Act, into law, guaranteeing marriage equality for same-sex and interracial couples under federal law. The law passed both houses of the U.S. Congress with bipartisan support, and the signing took place two weeks after the U.S. Senate voted 61–36 to approve it.
Beginning in 2023, Colorado employees whose employers do not offer a retirement plan will have access to an optional retirement savings plan through a state-facilitated retirement savings program, the Colorado SecureSavings program.
The Massachusetts Department of Family and Medical Leave (DFML) recently published a new workplace poster, notifications, and new rate sheets for all employers in the state for 2023 regarding the Paid Family and Medical Leave (PFML) law. Employers are required to notify their employees of new contribution and benefits rates and new published notices.
Earlier this year, the Internal Revenue Service (IRS) issued Notice 2022-23, which extended the deadline to make certain amendments pursuant to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, the Bipartisan American Miners Act of 2019 (Miners Act), and the Coronavirus Aid, Relief, and Economic Security (CARES) Act to December 31, 2025.
On November 29, 2022, the U.S. Senate passed the Respect for Marriage Act, which would guarantee marriage equality, including for interracial and same-sex couples, under federal law. The bill, H.R. 8404, passed the Senate in a 61-36 vote with bipartisan support. The bill must still be voted on by the U.S. House of Representatives, which passed a similar version in July, before it goes to President Biden’s desk for approval.
On November 7. 2022, the Supreme Court of the United States declined to review a case by a Georgia fire chief alleging she was discharged for being transgender in violation of Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act.
The latest idea for attracting and retaining employees in this post-COVID-19–pandemic era of the Great Resignation and “quiet quitting” is one that was usually limited to professors in higher education: the sabbatical.
With the rise of inflation and other negative economic indicators, most news reports are suggesting that the U.S. economy is facing uncertain times. Some economists predict that the economy is headed for a recession or that the United States has already entered one, while others are more optimistic.
Qualified retirement plans will experience unusually sharp increases to compensation and contribution limitations for 2023 compared to adjustments in recent years. On October 21, 2022, the Internal Revenue Service (IRS) released Notice 2022-55, providing the 2023 calendar year cost-of-living adjustments, also known as COLAs, for tax-qualified retirement plans.
Many employers have already claimed millions of dollars in tax credits through the Employee Retention Tax Credit (ERTC). Those employers that have not yet claimed (or incorrectly claimed) any ERTC may still do so retroactively by filing amended payroll tax returns for tax years 2020 and 2021.
On September 29 and 30, 2022, Governor Gavin Newsom signed more than one hundred new pieces of legislation, several of which directly affect California employers.
Hurricane Ian is expected to make landfall somewhere between Tampa, Florida, and the Florida panhandle this week as a Category 4 hurricane according to the National Hurricane Center.
Employers are facing increasing—and conflicting—pressures over health plan coverage of puberty-blocking medications used to treat some minors for gender dysphoria.
The Biden administration announced several student loan debt relief measures on August 24, 2022, including an extended loan repayment moratorium through December 31, 2022, and debt cancellation that will be available near the end of the year.
Employers may be able to alleviate some of the stress and burden associated with economic downturns by working with state unemployment agencies and using workshare programs. Workshare programs allow employers to enter into agreements with state unemployment agencies to reduce employee hours without laying off employees or disqualifying them from state unemployment compensation benefits to supplement their reduced wages.
Research suggests that more than 60 percent of U.S. workers would like to be able to access their earnings before their regularly scheduled paydays. Responding to this desire, many employers and their payroll providers now offer so-called on-demand pay arrangements that allow employees to receive their wages the same day they earn it. While on-demand pay may be a valuable recruiting and retention tool for employers, the immediate availability of wages carries with it certain tax implications for employers that may not easily be avoided without updates to the tax laws and regulations.
On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (IRA) (P.L. 117-169), a budget reconciliation act focused on tax reform, climate change, and healthcare costs. One notable provision of the IRA for employers is the expansion of coverage of insulin under high deductible health plans (HDHPs).
