NAPEO: PEO Insider

	May 2013
FEATURE The Shifting Complexities of Regulatory Enforcement and Compliance Complying with employment law has certainly gotten more complex in the last four years, as the Obama administration has increased its focus on investigations and enforcement. This shift will continue during the next four years as well. To the nation’s small businesses, this presents a complicated picture of rules and regulations, government agency initiatives, heightened enforcement, and increased penalties for violations. In other words, PEOs have their work cut out for them. The biggest compliance issues revolve around labor issues in the private sector, immigration, equal employment opportunity, healthcare, and military and flight crew leave. Government agency initiatives in these areas create new employer obligations viewed under increased scrutiny. For example, the National Labor Relations Board (NLRB) has revised its case-handling manual in a multi-faceted approach that creates a more union-friendly environment, while increasing its efforts to more closely examine employer policies and practices. Initiatives under Immigration and Customs Enforcement (ICE), the Equal Employment Opportunity Commission (EEOC), the various agencies charged with enforcement of the Patient Protection and Affordable Care Act (PPACA), and the Department of Labor (DOL) have mirrored this approach. Not surprisingly, the agency approach to penalties is also a reflection of this shift. As experts in employment compliance policies and practices for their clients, PEOs are right in the middle of helping them make sense of these shifting complexities. By implementing the basic elements of achieving compliance—education, training, self-auditing, documentation, best practices, and monitoring–and applying them in this shifting regulatory climate, PEOs can make sure all the pieces fall into their proper places... More > >


DEPARTMENTS State Decisions For Creating Health Insurance Exchanges (As of April 1, 2013)* Coverage through the exchanges will begin in every state on January 1, 2014, with enrollment beginning October 1, 2013. States can elect to build a fully state-based exchange, enter into a state-federal partnership exchange, or default into a federally facilitated exchange. The Patient Protection and Affordable Care Act (PPACA) directs the secretary of Health and Human Services (HHS) to establish and operate a federally facilitated exchange in any state that is not able or willing to establish a state-based exchange. In a federally facilitated exchange, HHS will perform all exchange functions. States entering into a state-federal partnership exchange may administer plan management functions, in-person consumer assistance functions, or both, and HHS will perform the remaining exchange functions. If a state opts for... More >> Recent Cases Affecting Employment Law Todd Van Dyke, Esq. and Alison Loy, Esq. The end of 2012 and the beginning of 2013 brought a number of court decisions of note to PEOs and employers alike. National Labor Relations Board–In Noel Canning v. NLRB et al., Nos. 12-1115 and 12-1153 (D.C. Cir. Jan. 25, 2013), the D.C. Circuit Court held that President Obama did not have the power to make three recess appointments to the National Labor Relations Board (NLRB) because the Senate was officially still in session at the time and therefore they were not made during the recess that takes place between sessions. This decision casts into doubt the validity... More >> Reducing Risk Through the HR Audit Brian L. McDermott, Esq. PEOs and their clients that have struggled with the expense and disruption of litigation or agency investigations related to employee issues are aware that the related demands for time, money, and energy stretch the resources of the PEO and client, and take valuable time away from the “business of doing business.” While no one has found a foolproof way to eliminate the possibility of lawsuits or agency review, legal liability in those circumstances can be reduced by a well-organized and objective audit of the company’s labor and employment policies and procedures... More >> SPD and SBC Compliance Under Healthcare Reform Barry L. Salkin, Esq. While summary plan descriptions (SPDs) have been part of the employee benefit plan landscape since the enactment of the Employee Retirement Income Security Act (ERISA), the summary of benefits and coverage (SBC) is the new kid on the block, having been added to the Internal Revenue Code (Code) and ERISA by the Patient Protection and Affordable Care Act (PPACA). The PPACA directed group health plans to comply with the... More >> Selling the Value of Regulatory Compliance in Today’s Surging Regulatory Climate Al Anastasi If you think the Patient Protection and Affordable Care Act (PPACA) has small businesses reeling, consider this: According to a recent Forbes.com article, since 2010, the Obama administration has issued 854 rules and regulations affecting small businesses. Add to these the myriad of local and state regulations with which businesses must comply and it is easy to understand why small businesses need assistance with regulatory compliance. In fact, a recent Society for Human Resource Management (SHRM) survey found 55 percent of the respondents citing “to control legal risk and improve compliance” as their primary reason for human resources outsourcing... More >>		COLUMNS Navigating the Regulatory Enforcement Environment with NAPEO Dale Hageman 2013 NAPEO Chairperson Over the last few years, the regulatory landscape has changed for employers, and the next four years stand to bring even more change and risk for employers. Regulatory enforcement has become the focus for many key government agencies, and as we look ahead to the next few years, it appears their shift to enforcement will only continue to gain momentum. The Equal Employment Opportunity Commission (EEOC), the Department of Labor (DOL), the National Labor Relations Board (NLRB), and the Internal Revenue Service (IRS) have turned their focus to increased audits and investigations, which have and will continue to result in increased fines, penalties, charges, and litigation. Add to this already difficult environment the regulatory burden associated with the Patient Protection and Affordable Care Act (PPACA), and employers are left facing an almost insurmountable challenge. As PEOs, we find this shift naturally concerning as we work with countless businesses across this nation. The good news is that PEOs have now, more than ever, the opportunity to... More >> NAPEO Visibility Patrick J. Cleary Those of you who come to the Legal and Legislative Conference (LLC) in Washington this month will see a whole lot of NAPEO visibility The first thing people who arrive at Reagan National Airport will see is a giant billboard at the US Airways concourse touting the benefits of PEOs, carrying the message of “Keep Calm and Call a PEO” and welcoming attendees to the 2013 LLC. There is also a link to the site where people can find a PEO: www.napeo.org/peo_find... More >> The State B2B Tax Paradox Paul J. Richman States are struggling to find ways to strengthen and grow their economies as they begin to recover from the after-effects of the “great recession.” States will also receive reduced federal funding due to the cuts mandated by the sequestration. States face a difficult decision: either cut their budgets or find sources of additional revenue. If they seek sources of additional revenue, they must choose a revenue structure that will allow them to maintain and increase economic competiveness... More >> Right-to-Work States, WARN Act William J. Schilling, Esq. Q. I have heard that Michigan and Indiana have become right-to-work states. Does that mean unions are out in those jurisdictions? A. Not at all. There is a good deal of misunderstanding about right-to-work and what it does and does not mean. Basically, Section 14(B) of the Taft-Hartley Act allows states to adopt “right-to-work” laws and to ban “close-shop” workplaces. By adopting such laws, states can eliminate... More >> Grassroots Lobbying 101 at NAPEO’s Legal and Legislative Conference Meeting with Your Representatives and Senators Thom Stohler At NAPEO’s 2013 Legal and Legislative Conference, Monday May 20 and Tuesday May 21, we are doing something new. This year, we will be moving a key portion of the meeting to the U.S. Capitol. On Tuesday, May 21, at approximately 11:30 a.m., conference participants will board buses to travel to the Capitol for lunch and the final part of the conference. At noon, the conference will resume with a talk by Senator Max Baucus (D-MT), chairman of the Senate Finance Committee (which has jurisdiction over the entire federal tax code). Other Members of Congress may also address the conference after Baucus. Participants will be at the center of the action and will hear from key players. The remainder of the afternoon is set aside for conferees to attend meetings with their representatives and senators—meetings NAPEO is scheduling for you (call or email me at 703/739-8167 or tstohler@napeo.org)... More >> Our Taxes: We Hear You, and Congress Will Hear You Too Dan Danner Thanks to those of you who participated in NFIB’s recent survey on federal taxes and spending, we now have data that clearly shows just how strongly you feel about the federal government’s need to simplify the tax code, manage its costs, and balance its budget. The results of the survey (http://bit.ly/ZutBiT) tell a story that Congress must hear. As you and I know, under current tax law, inconsistent tax preferences and continuous tax code changes hinder... More >> Premier Employer Services: Challenges Met, Adjustments Made, Vision Created Stephanie Oetjen PEOs often get unusual calls from their clients. For example, Roger Hays, president and CEO of Premier Employer Services, Inc., in Englewood, Colorado, once received a call from a client that went like this: “We have a problem: One of our supervisors took all his clothes off, ran out the front door, and climbed up the flagpole. What do we do?” “That’s what I love about it—you can get all this crazy stuff,” said Roger. “And you have a great story when you get together with your friends at NAPEO.” This is but one of the reasons Roger loves the PEO business and would not want to do anything else: he likes getting to help small businesses get better and grow; he likes interacting with the wide variety of businesses he helps; he likes keeping companies out of trouble; and he has a blast hanging out with NAPEO people... More >> We Need Spending Restraint, Not Tax Hikes Thomas J. Donohue As Tax Day loomed last month, American families and employers were keenly aware of the deep cut the government is taking out of their household incomes and hard-earned profits. A heavy tax burden means that consumers have less to spend in the economy and businesses have less for hiring, expanding, and investing. When taxes go up, the rate of economic growth goes down. And even though economic growth is what we badly need to hasten our recovery, many leaders in Washington are... more >>