All posts by stu

CHIP Notice, Department of Labor, Employee benefits, Group Health Insurance

New updated CHIP model notice released in 2017

In February 2017 the Department of Labor issued an updated model notice for employers to provide information on eligibility for premium assistance under Medicaid or the Children’s Health Insurance Program (CHIP) is now available for employers.

Employers that provide insurance coverage in states with premium assistance through Medicaid or CHIP must inform employees of potential opportunities for assistance in obtaining health coverage.  The CHIP notice must be provided annually before the start of each plan year.  Most employers are given the model CHIP notice from their employee benefits consultant.  An employer may provide the notice applicable to the state in which an employee resides concurrent with the furnishing of either: (1) health plan eligibility materials; (2) Open enrollment materials; or (3) in the Summary Plan description.

The updated model notice includes information on how employees can contact their state for additional information and how to apply for premium assistance, with information current as of January 31, 2017.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR and safety solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

I9 Form, Immigration, New Hire, USCIS

USCIS publishes new Handbook for Employers (M274) on Completing the I9 Form

The USCIS has released an updated Form I-9 Handbook for Employers (M-274) and posted it on its website January 22, 2017. The updated manual provides updated guidance on the new form I9, that was updated November 2016.  It offers valuable information to employers on completing and retaining the Form I-9.  All employers should download and retain the new M-274 Manual and refer to it if questions arise.  Click here to access the updated handbook.

The Handbook answers common questions on the I9 form – so your I9 forms are always correct. For instance: How are minors (under age 18) handled? What to do about future expiration dates? When are you required to reverify the Employment Authorization for a current employee? How to make corrections to errors on the I9?  And many more questions.

There is also guidance to federal contractors on the use of E-Verify, the web-based verification system.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR and safety solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

EEOC, Employee Handbook, Harassment, Training

10 point checklist: Improve your Harassment policy and program in 2017

Your company’s efforts to prevent workplace harassment is still a very important step in controlling the risk of employment lawsuit liability in 2017.  In a 2016 report, the EEOC stated that harassment is still a significant workplace issue and one-third of the 90,000 annual charges have an allegation of harassment. So, even though harassment is not a new risk topic, the statistics show that thousands of companies, large and small, are still being sued for alleged incidents of harassment. Your company should already have a written non-harassment policy communicated to employees. However, in addition it is a good idea to review your company’s entire harassment prevention process annually. To help you, the EEOC recently released some proposed guidance on how to review your company practices and implement practices that reduce the likelihood of employee complaints and protect your company, should an incident arise.

Here is a 10 point checklist to review your company harassment prevention program. It also serves as a roadmap for strengthening your current written policy and current practices.

  1. Does the Company have a written harassment policy – clearly written, easily understood and regularly communicated (translated into languages commonly used by employees)?
  2. Is the policy discussed at new hire and posted for employee common areas?
  3. Has the Company conducted employee training on workplace harassment and/or workplace civility?
  4. Can the Company show resources are devoted to harassment prevention training?
  5. Is there a harassment complaint process? Has it ever been used?
  6. Are there multiple ways to complaint or people to complain to?
  7. Are supervisors trained about identifying, preventing and responding to objectionable conduct (to keep small incidents from becoming prohibited harassment)?
  8. Is non-retaliation specifically addressed in the policy and during training?
  9. Does the Company have a documented process for complaints (intake, steps to follow, written report and disciplinary action form)?
  10. Does ownership/senior leadership assess the program and effectiveness regularly?

Read all the entire EEOC proposed draft Guidance on Harassment.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR and safety solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

Employee benefits, ERISA, Group Health Insurance, Wrap Plans

What is a Wrap Plan Document, and does my company need one?

A plan document is a comprehensive written instrument describing the operation and administration of an employer’s plan, from the perspective of the carrier and it is written in legalese.  One of the requirements under the Employee Retirement Income Security Act (ERISA) is that employee welfare benefit plans must be written and maintained in a written document, and must clearly identify specific basic information about the plan, including: name of fiduciary administering the plan, procedures for amending and terminating the plan, source of plan contributions and allocation of responsibilities between the employer and the insurance carrier (or third party administrator).  The plan document describes the benefits that an employee is entitled to under the plan and the guidelines to be used for plan administration and decision making.

The summary plan description (SPD) is simply a summary of the plan document required to be written in such a way that the participants of the benefits plan can easily understand it.  Unlike the plan document, the SPD is required to be distributed to plan participants.  The SPD is required because ERISA requires specific content, and required style and format.  The SPD summarizes the plan document, and so the plan document encompasses the content required for the SPD.  Day to day administration of the plan will use the plan document, because it contains more detail than the SPD. Read more about the contents of an SPD.

Why doesn’t the insurance carrier provide an SPD for a full insured plan?  Employers receive a plan document and a certificate of coverage document for their fully ensured plans, but not an SPD.  A written contract of insurance with an insurance company does not normally contain all of the rules required by ERISA and is therefore not a plan document.

What is a “wrap plan”? A “wrap” document is a drafting device used to supplement already-existing documentation.  To comply with the requirements of ERISA, the “wrap” document  contains the mandatory information and wraps around the plan document.  The insurance document remains part of the wrap document, and together they form the complete plan document.

Why is a “wrap plan” needed?  The insurance carrier plan document does not contain all the ERISA required information, because the insurance carrier is focused on complying with state insurance requirements (not federal law).   By using a wrap document, an employer meets the requirements of ERISA, and the accurate insurer-provided benefit description contained in the insurance policy or contract.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

CHIP Notice, COBRA, Employee benefits, HR Compliance

DOL extends Expiration Dates for COBRA and CHIP notices (until 2019)

Washington DC – The U.S. Department of Labor (DOL) has quietly extended the effective date of its model Employer CHIP Notice, General Notice of COBRA Rights, and COBRA Election Notice so that all three notices are effective through December 31, 2019.  The previous forms and model notices had an expiration date of December 31, 2016.

Even though there were no other changes made to these notices (except the expiration date), employers should download the newest versions of these forms for continued use.  For the latest guidance regarding these notices please visit the DOL’s Children’s Health Insurance Program Reauthorization Act and COBRA Continuation Coverage webpages.

What is CHIP?  The federal CHIP program mandates that employers that maintain a group health plan in a state that provides premium assistance under Medicaid or CHIP (includes Florida) must notify all employees of potential opportunities for premium assistance in the State in which the employee resides.

What is COBRA?  Under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), certain former employees, retirees, spouses former spouses, and dependent children the right to temporary continuation of health coverage at group rates.  Employers with 20 or more employees are usually required to offer COBRA coverage and to notify their employees of the availability of such coverage.  COBRA applies to plans maintained by private-sector employers and sponsored by most state and local governments. Read more FAQs for employers about COBRA.  Additionally, there is a non-mandatory COBRA poster (Job Loss Poster) available through the Department of Labor.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR and safety solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

Disabilities, Drug Free Workplace, Medical Marijuana

Florida publishes new rules for Medical Marijuana

Tallahassee – The implementation of the Constitutional amendment passed by Florida voters in November is moving rapidly.  The Office of Compassionate Use (part of the Florida Department of Health) published a notice of Rule Development on January 17, 2017.  The proposed rule expands the Office of Compassionate Use’s (OCU) regulation of the compassionate use registry and licensing of Florida businesses that cultivate, process, and dispense medical cannabis to qualified patients.  Read the proposed rules.

Some of the highlights include:

  • Debilitating medical condition (qualifying for a cannabis prescription) includes: “conditions eligible for physician ordering contained in s. 381.986(2), F.S., or cancer, epilepsy, glaucoma, positive status for human immunodeficiency virus (HIV), acquired immune deficiency syndrome (AIDS), post-traumatic stress disorder (PTSD), amyotrophic lateral sclerosis (ALS), Crohn’s disease, Parkinson’s disease, multiple sclerosis.  This list may be expanded to include “any debilitating medical conditions of the same kind or class as or comparable to those enumerated, as determined by the Florida Board of Medicine.”
  • There will be a 45 day cannabis supply limit.
  • Everyone must be registered in the Compassionate Use Registry (doctors, patients and caregivers and medical marijuana treatment centers).
  • Security, product testing, labeling, inspection and safety standards are forthcoming, as outlined in Florida Statutes 381.986
  • Any caregivers will be a legal representative as defined by s. 381.986(1)(d), F.S., who is at least twenty-one (21) years old and has successfully passed a Level 1 background screening as defined in s. 435.03, F.S.

For those in Tampa, participate in the rulemaking by attending a public meeting: February 8, 2017, 9:00 a.m. – 11:00 a.m., at the Florida Department of Health, Tampa Branch Laboratory, 3602 Spectrum Blvd., Tampa, FL 33612.

Follow this blog to stay up to date with developments on medical marijuana in Florida.

 

Business Expenses, Compensation, Employee Policies, IRS

What is an Accountable Plan (IRS) for Employee Business Expenses?

A business expense reimbursement or allowance arrangement is a system by which a company pays advances, reimbursements, and charges for an employee’s business expenses.   How your company reports a reimbursement or allowance amount depends on whether the company has an accountable or a non-accountable plan. According to the IRS, if a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement.  The IRS Publication 15 (newly updated for 2017) contains the guidelines for handling both accountable and non-accountable plans.  The rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee.

To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules.

  • The employee must have paid or incurred deductible expenses while performing services as your employees. The reimbursement or advance must be payment for the expenses and must not be an amount that would have otherwise been paid to the employee as wages.
  • The employee must substantiate these expenses to you within a reasonable period of time (120 days to return or account for it).
  • The employee must return any amounts in excess of substantiated expenses within a reasonable period of time.

If expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses aren’t returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a non-accountable plan. This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time.

Payments to your employee for travel and other necessary business expenses under a non-accountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. Your payments are treated as paid under a non-accountable plan if:

  • Your employee isn’t required to or doesn’t substantiate timely those expenses to you with receipts or other documentation,
  • You advance an amount to your employee for business expenses and your employee isn’t required to or doesn’t return timely any amount he or she doesn’t use for business expenses,
  • You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or
  • You pay an amount as a reimbursement you would have otherwise paid as wages.

Check here for additional guidance from the IRS on how to withhold taxes on supplemental wages (such as allowances paid under a non-accountable plan), which depends on whether the supplemental payment is identified as a separate payment from regular wages.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

Construction, Fall Protection, OSHA, Safety

Four Miami Contractors cited almost $100k after fatal fall in Kendall

Miami, FL – On June 26, 2016, a construction worker performing punch-list activities at a Kendall Square housing complex construction site in Miami, fell 11 feet to his death through an unprotected stairway opening.  An OSHA investigation revealed that the stairway opening had no guardrails or cover as required by OSHA standards, and that his employer was aware that the opening was unprotected.  As a result of the fatality, OSHA issued eight citations to Southern Chills Inc., Capri Construction Corp., SB Painting & Waterproofing Inc. and Brothers Carpentry Corp. for alleged safety violations. Combined, the four contractors face $91,536 in penalties (citations dated December 21, 2016).

The project’s developer, Lennar Homes LLC contracted with Miami’s Capri Construction as the shell contractor at the job site. Capri then contracted with Homestead-based Southern Chills to perform carpentry work such as installing second-floor deck trusses and sheathing. Following the fatality, Capri contracted with Brothers Carpentry, a West Park finish carpentry contractor, to replace Southern Chills and Lennar hired SB Painting, of West Palm Beach, to paint the exteriors and interiors of the homes.  OSHA issued multiple citations for this event.

  • OSHA issued Southern Chills two repeated citations for failing to protect workers from falls up to 11 feet with a guardrail or personal fall system and not training employees to recognize fall hazards or procedures while working at elevated levels.
  • OSHA issued serious citations to Capri, SB Painting, and Brothers Carpentry for failing to protect workers from fall hazards with a guardrail or personal fall system.
  • OSHA cited SB Painting and Brothers for not training workers to recognize fall hazards while working at elevated levels.
  • OSHA cited Capri for exposing workers to fall hazards due to a lack of frequent inspections to ensure hazardous conditions did not exist or were corrected.

Read about OSHA’s multi-employer citation policy that allows OSHA to cite multiple employers for the same hazard. Employers that create, control, correct or expose employees to a hazard can all be issued citations as long as the compliance officer can establish that an employee of the cited company was exposed to the safety hazard.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR and safety solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

 

Disabilities, Drug Free Workplace, Employee Policies, Medical Marijuana, Workers Compensation

Medical Marijuana in Florida: A Summary for Employers and Employees

Tallahassee, FL (January 3, 2017) –  Now that Florida voters have approved Amendment 2, the constitutional amendment allowing the use of medical marijuana, there are many changes coming to Florida.  In the next few years, I predict there will be more medical conditions approved, more doctors prescribing, more cannabis use and more approved ways to ingest it (i.e. candy, treats and other food items).  Of course, we are not there yet – but it is coming. Employers and employees need to know more about medical marijuana, so here is a quick recap and summary of the situation today:

  • What is legal? On January 3, 2017, Amendment 2 took effect, allowing higher strength marijuana for a wider list of medical ailments.  The Florida Legislature will soon begin working to review and revise existing medical marijuana regulations to meet the mandates of Amendment 2.  Until new laws are passed, Florida Statute 381.986 remains in effect and the Florida Department of Health physicians, dispensing organizations and patients remain bound by the existing law and rules.  The Department of Health has 6 months (July 2017) to propose new rules, and 9 months to implement the regulations (September 2017).
  • Who is growing Cannabis? There are 6 dispensing organizations already licensed to grow and distribute medical cannabis in Florida.  In 2016, Florida completed its first legal harvest of medical marijuana.  The cannabis is stored in vacuum sealed and frozen in 441 gram bags, and stored somewhere outside Tallahassee.  Surterra, one of the licensed growers, operates a facility outside Tampa, where is grows the full strength variety (and another in Tallahassee growing the low THC variety).
  • Where are the dispensaries?  Sites are currently open in Tallahassee, Clearwater and Tampa.  Many Florida cities are banning or restricting dispensaries, until additional statewide laws and regulations are created.
  • How can you get medical marijuana in Florida?  Prior to Amendment 2, patients could obtain medical marijuana if they had seizures or other qualifying illnesses that benefit from low THC cannabis, or if they have irreversible terminal illness, they can obtain the full strength marijuana.  Under current rules, all medical marijuana needs to be smokeless. Only Florida state approved doctors (regulated by the Florida Office of Compassionate Use) may order medical marijuana.  To control potential abuse, patients had to have a treatment history with a cannabis approved doctor for at least 3 months.  Currently, there are about 1,500 patients on the state registry, but this number is expected to rapidly expand.
  • What physicians can prescribe marijuana? Any physician who holds an active, unrestricted license as a physician under Chapter 458, F.S. or an osteopathic physician under Chapter 459, F.S. may take the required course and examination.  There are over 300 physicians registered with the Office of Compassionate Use, and this number is expected to grow rapidly in the first quarter of 2017
  • What medical conditions qualify for cannabis (after Amendment 2)?  In addition to the existing conditions, patients suffering from HIV/AIDS, glaucoma, post-traumatic stress disorder, ALS, Crohn’s disease, Parkinson’s disease, multiple sclerosis, or other similar conditions will now be covered.  Watch for the new regulations to learn more details.
  • What patients can qualify for medical marijuana?  Under current rules, a patient qualified to receive an order for low-THC cannabis or medical cannabis must: (1) be a permanent resident of Florida; (2) be a patient of an ordering physician for at least 3 months; and (3) be diagnosed with a qualifying physical medical condition.  These rules will likely change, due to the expansion of medical conditions in Amendment 2.
  • How will this affect Employers?  Although the approved medical conditions are not likely due to work related causes, it is unclear about how Amendment 2 will affect workers’ compensation cases and the Florida Drug Free workplace rules and regulations.  Additionally, under the Americans with Disabilities Act (ADA), employers will have to confront the legal use of prescribed medical marijuana for chronic and debilitating medical conditions (as it does with other narcotics and pain related medication.   Medical marijuana may be available in Florida (and under Florida law); however, marijuana remains illegal under federal law.  More to come in future posts.

Florida employers will need to stay tuned to the Florida legislature and the Office of Compassionate Use for further developments.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

Americans with Disabilities Act, Disabilities, EEOC, Reasonable Accomodation

Deaf Employee and EEOC Sue Cheesecake Factory for Inadequate Training Accommodation

SEATTLE, Wash. – On December 20, 2016, restaurant giant The Cheesecake Factory, Inc., was sued by the U.S. Equal Employment Opportunity Commission (EEOC) for allegedly failing to provide an effective accommodation for a newly hired deaf employee – instead it fired him over attendance issues.  According to the EEOC’s lawsuit, The Cheesecake Factory denied Oleg Ivanov’s repeated requests for orientation training with either closed captioned video or American Sign Language (ASL) interpretation. Although the restaurant was aware that Ivanov was deaf prior to his hire as a part-time dishwasher, the Company did not respond to his requests for accommodation and unilaterally decided to rely on passing back and forth written notes to communicate with him at his June 2014 interview, post-hire orientation and significant meetings.  However, after Ivanov was terminated for attendance issues, the EEOC determined that he received inadequate training, including use of the company’s online scheduling system and timekeeping process, leaving him at a disadvantage in tracking his constantly changing work hours.  At the time of his termination for attendance, he reminded them that he was deaf and had not been provided with an ASL interpreter for his orientation training.

The Americans with Disabilities Act of 1990 (ADA) requires employers to provide reasonable accommodation to an employee or job applicant with a disability, unless doing so would cause significant difficulty or expense.  The EEOC’s lawsuit (EEOC v. The Cheesecake Factory, Inc. and The Cheesecake Factory Restaurants, Inc., 2:16-CV-1942.) was filed in U.S. District Court for the Western District of Washington, and seeks monetary damages on behalf of Ivanov, training on anti-discrimination laws, posting of notices at the work site, and other injunctive relief.

In other cases involving deaf employees, the EEOC has filed lawsuits to force certain accommodations, including:

  • Walmart agreed to provide a sign language interpreter for them during their training and orientation. It also agreed to give them vibrating pagers for communication at the store and installed a telecommunication device for the deaf (known as a TTY or TDD).  Walmart also installed a visual fire alarm.
  • Bank of America settled a lawsuit and agreed to provide alternate communications, because the written note communication process was not effective.  It also agreed to train its team on the ADA and accommodations.
  • Creative Networks was sued by the EEOC because it refused to pay more than $200 for sign language interpreter services during the company’s mandatory 24-hour pre-employment orientation and training program.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

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