Overtime Rule Struck Down

On August 31, 2017, Federal District Court Judge Amos Mazzant overturned the Fair Labor Standards Act (FLSA) final overtime rule that would have doubled the annual salary level to qualify for exemption from overtime pay, raising it from $23,660 to $47,476. Mazzant issued an injunction stopping implementation of the final rule nine months ago, and the Trump administration didn't challenge the decision.

DOL and IRS Issue Compliance Guidance for Employee Benefit Plans Impacted by Hurricane Harvey

The U.S. Department of Labor (DOL) announced an update on employee benefit plan compliance for those impacted by Hurricane Harvey. “Our deepest and most immediate concern is for those who are in harm’s way, and for the first responders who will work tirelessly to help those affected,” said U.S. Secretary of Labor Alexander Acosta. “We also realize that employers and employees impacted by Hurricane Harvey will need assistance in dealing with employee benefits issues arising from disruptions in banking and payroll processing.” 

Senate Rejects Efforts to Repeal the ACA

In the early morning hours of July 28, 2017, members of the U.S. Senate voted 49-51 to reject a “skinny” version of a bill to repeal and replace the Affordable Care Act (ACA) called the Health Care Freedom Act (HCFA).

Senator John McCain (R-Arizona) cast the dramatic and decisive “no” vote early Friday, July 28 that upended the Republican effort to repeal the Affordable Care Act.

What happens if the ACA employer mandate is repealed?

The Affordable Care Act (ACA) requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their full-time employees in order to avoid possible penalties. Because this employer mandate has been criticized as burdensome for employers and an impediment to business growth, its repeal has been a central part of Republican plans to repeal and replace the ACA.

On Thursday morning, members of the Senate revealed their version of the American Health Care Act (AHCA), titled the Better Care Reconciliation Act of 2017 (BCRA), to repeal and replace the Affordable Care Act (ACA). Like the AHCA, the majority of the BCRA deals with individual markets and Medicare. Of particular note, the BCRA places the eligibility for tax credits to purchase individual coverage back on income, instead of on age as the AHCA does.

With summer in full swing, July 31 will be here before you know it. On or before that date, some employers will need to file an IRS Form 720 and submit the applicable payment for their Patient Centered Outcomes Research Institute (PCORI) fees. Employers with self-funded health plans and those with HRAs are generally responsible for filing and paying the fee. Employers with fully-insured health plans are generally not responsible for the filing or paying, unless they also sponsor an HRA.

On Thursday afternoon, members of the House took first steps toward repealing and replacing the Affordable Care Act (ACA) by passing the American Health Care Act (AHCA). While the majority of the AHCA deals with individual markets and Medicare, there are provisions that will affect employers if the bill becomes law. In particular, the AHCA would reduce the penalties imposed under the Individual and Employer Mandates to zero beginning in 2016, effectively repealing both (although they would technically still exist).

On Friday afternoon, House Republicans abandoned a vote on their health care replacement plan, called the American Health Care Act of 2017, after it became apparent that the Republicans did not have the votes they needed to pass the bill. This comes a day after the President threatened to walk away from health care reform if the House did not vote on the matter. Therefore, it appears at this time that Congress and the President will be “moving on” from health care to tackle other items such as tax reform. This means the current effort to repeal is in all likelihood over, at least for now.