Legal Update: Pay-or-Play Affordability Percentage Will Increase for 2025
On Sept. 6, 2024, the IRS released Revenue Procedure 2024-35 to index the contribution percentage in 2025 for determining the affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2025, employer-sponsored coverage will be considered affordable under the ACA’s “pay-or-play” rules if the employee’s required contribution for self-only coverage does not exceed 9.02% of their household income for the year.
News Brief: Report: Employee Happiness Declining in 2024
Employee satisfaction has plummeted to its lowest point in four years, according to BambooHR’s most recent Employee Happiness Index. The survey recorded a score of 35 out of 100 in May 2024, consistently trending down from 44 in May 2020,signaling a “troubling trend” in workplace morale. More recently, employee happiness dropped 5% from June 2023 to June 2024.
The second-quarter (Q2) decline dampened the modest increase seen in the first quarter and marked a return to the steady downward trend of employee dissatisfaction since 2020, dubbed the “Great Gloom.” This trend is characterized by rising disengagement, burnout and dissatisfaction at work. While employees are less inclined to quit their jobs than in previous years,employers are struggling to engage their workforce effectively.
“This persistent decline throughout Q2 2024, with scores consistently below 36, is alarming and signals a critical need for organizational introspection and action. As leaders, we must enhance our engagement efforts, support our teams in their workplace transitions and foster open lines of communication.”
-Anita Grantham, head of HR, BambooHR
Legal Update: Draft Forms for 2024 ACA Reporting & Draft B Series Instructions Released
The Internal Revenue Service (IRS) has released draft 2024 forms for reporting under Internal Revenue Code Sections 6055 and 6056. Draft instructions for these forms have not yet been released.
- The 2024 draft Forms 1094-B and 1095-B (and related draft instructions) are draft versions of forms and instructions that will be used by providers of minimum essential coverage—including self-insured plan sponsors that are not applicable large employers (ALEs)—to report under Section 6055.
- The 2024 draft Forms 1094-C and 1095-C are draft versions of forms that will be used by ALEs to report under Section 6056 as well as for combined Section 6055 and 6056 reporting by ALEs that sponsor self-insured plans.
No major changes were made to the draft forms, or the draft B series instructions, for 2024 reporting.
However, certain changes may be made once the forms and instructions are finalized.
HR Brief – NLRB Voluntarily Withdraws Joint-employer Rule Appeal (September)
On July 19, 2024, the National Labor Relations Board (NLRB) voluntarily dismissed its appeal of the U.S. District Court for the Eastern District of Texas decision vacating the NLRB’s 2023 joint-employer rule. Thus, the decision of the Eastern District of Texas will be final.
The rule, which had been set to take effect on March 11, 2024, would have expanded the types of control over job terms and conditions that trigger joint employment. The NLRB stated it would like to consider the issues identified in the Eastern District of Texas’ decision and options for addressing outstanding joint-employer matters. As a result of the Eastern District of Texas’ ruling and the NLRB’s decision to withdraw its appeal, the former 2020 joint-employer rule remains in effect and calls into question the future status of the 2023 rule.
Legal Update: IRS Fact Sheet: SECURE 2.0 May Impact How Businesses Complete Forms W-2
The IRS is reminding businesses that, starting in tax year 2023, changes under the SECURE 2.0 Act may affect the amounts they need to report on their Forms W-2. On Aug. 29, 2024, the agency released a
fact sheet that details the provisions potentially affecting Forms W-2 (including Forms W-2AS, W-2GU andW-2VI).
Compliance Bulletin – Employer Considerations for Navigating Election Season
Election season can be a fraught time for employers. Employers are often faced with the challenge
of fostering a culture of open communication while ensuring a civil work environment and navigating
a variety of federal, state and local laws. Therefore, as the 2024 election approaches, it is critical for employers to understand their legal rights and responsibilities, as well as the steps they can take to prevent and mitigate political tension in the workplace.
Legal Update: OSHA Proposes Heat Injury and Illness Prevention Standard
On Aug. 30, 2024, the U.S. Department of Labor’s (DOL) Occupational Safety and Health Administration (OSHA) published a notice of proposed rulemaking in the Federal Register to protect workers from heat injury and illness. If finalized, the new standard would apply to all employers conducting indoor and outdoor work in all general industry, construction, maritime and agricultural sectors where OSHA has jurisdiction, subject to limited exceptions.
News Brief: Report Finds Weight Loss Drugs Key Driver of 2025 Health Care Cost Increase
A recent Business Group on Health (BGH) survey found that heightened interest and spending on glucagon-like peptide-1 (GLP-1) drugs is a major driver of rising health care costs in 2025. Americans’ interest in GLP-1 drugs is increasingly pressuring employers’ budgets. On average, GLP-1 treatment costs around $1,000 per individual each month. The medications were traditionally used to treat diabetes but are now in demand for weight loss. When considering covering weight loss drugs, many employers are concerned that they must be used for extended periods to be effective, requiring a long-term commitment.
An estimated 9% of the U.S. population could be on GLP-1s by2030, according to an analysis by investment bank J.P. Morgan.
Legal Update: 5th Circuit Strikes Down DOL’s Tip Credit Final Rule
On Aug. 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S.Court of Appeals for the 5th Circuit vacated the U.S. Department of Labor’s(DOL) 2021 final rule that updated tip credit regulations under the Fair Labor Standards Act (FLSA). This rule is known as the 80/20/30 rule.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
