Employee Benefits

On September 7, the House Ways and Means Committee released bill text that includes a new national, universal paid medical and family leave plan. This bill represents just one portion of the expected $3.5 trillion social spending bill that will advance President Biden’s legislative agenda.

The bill is extensive, but employers should be particularly aware of the following provisions:

  • Beginning in July 2023, the bill provides up to 12 weeks of federal benefits to replace lost wages due to time off for medical leave or caregiving for an ill family member.
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As previously reported here, under the American Rescue Plan Act, certain employers have until May 31, 2021 to notify eligible individuals of their potential right to subsidized COBRA coverage. Eligible individuals are those who lost group health plan coverage due to a reduction of hours or an involuntary termination of employment and who are still within the possible maximum COBRA coverage period, even if they never elected COBRA or initially elected it and let it lapse.… Continue Reading

The whirl of changes in employee benefits rules that have resulted from the pandemic include the temporary opportunity for employees to carry over unused amounts contributed to a dependent care flexible spending account from one year to another. The IRS has issued a new notice on these rules that clarifies how these rules apply in view of the increase in the maximum limit on dependent care assistance for 2021 to $10,500.… Continue Reading

On May 18, the IRS released Notice 2021-31. The notice contains detailed guidance on subsidies employers must provide COBRA beneficiaries pursuant to the American Rescue Plan Act (“ARP”), and uses a Q&A format to illustrate several specific examples and potential issues regarding the subsidies. For employers, one of the many issues of interest addressed in this notice is the determination of which employee departures qualify as involuntary terminations triggering COBRA assistance.… Continue Reading

Employers with employee health plans subject to the Affordable Care Act (ACA) should take note that, earlier this week, the U.S. Department of Health and Human Services (HHS) announced that its Office for Civil Rights (OCR) will begin enforcing Section 1557 of ACA to prohibit discrimination based on sexual orientation and gender identity.… Continue Reading

As previously reported here, the American Rescue Plan Act of 2021 (ARP) was passed and signed into law on March 11, 2021, and had significant and immediate impacts on employee benefit plans, employers, and other plan sponsors and plan administrators. Last week, the United States Department of Labor issued guidance about the new COBRA subsidy rules under the ARP, but some significant questions remain unanswered.… Continue Reading

On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was passed and signed into law.  ARP has significant and immediate impacts on employee benefit plans, employers, and other plan sponsors and plan administrators. On April 7, 2021, the United States Department of Labor (DOL) issued much anticipated guidance and model forms under the COBRA subsidy rules provided by ARP.… Continue Reading

On March 11, 2021, President Biden signed the American Rescue Plan Act. At $1.9 trillion, it is the second largest stimulus bill in legislative history. The ARP includes labor-related spending initiatives important to both employers and employees.

Employers should particularly take heed of the increased funding to OSHA for enforcement actions, which could indicate a potential increase in the number of audits and inspections, as well as additional scrutiny of whistleblower claims.… Continue Reading

As employers wrestle with whether to require vaccines for employees or how to encourage employees to get vaccinated voluntarily, many companies are implementing incentive programs that provide gifts, paid time off and even cash payments to employees who get vaccinated.  In doing so, employers need to consider whether their vaccine programs should be treated as employee wellness programs. … Continue Reading

Group health plan sponsors and administrators may soon need to introduce changes to their offer of continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The House Education and Labor Committee has proposed temporary COBRA subsidies and other modifications as part of the current COVID-19 stimulus package that is working its way through Congress.… Continue Reading