Presentation Transcript

1. Federal HR Public Policy UpdateNC SHRM Day in the DistrictMay 21, 2013

   Bob Carragher SHRM Government Affairs Robert.Carragher@shrm.org
2. Topics for Today’s Presentation Political Climate in Washington Fiscal issues Tax reform Health care reform Immigration reform Agency updates Workplace Legislation SHRM’s Advocacy Team (A-Team) Questions
3. Politics – 2012 Election a Mere 6 Months Ago 12 4 3 3 7 10 4 10 29 3 16 3 20 6 5 6 18 11 20 6 5 9 13 55 6 10 8 15 11 7 10 5 6 9 9 16 6 8 38 29 3 Obama 206 Romney 332 Obama 206 Romney 332 Obama
4. Politics – 2012 Electoral College Results 12 4 3 VT 3 3 7 10 NH 4 4 10 29 MA 11 3 RI 4 16 3 CT 7 20 6 5 NJ 14 6 18 11 20 6 DC 3 5 9 13 55 DE 3 6 10 8 MD 10 15 11 7 10 5 6 9 9 16 6 8 38 29 Barack Obama (D) 3 Romney HI 4 Obama Obama Mitt Romney (R) 206 Romney 332 Obama 206 Romney 332 Obama 270 votes needed to win Source: National Journal, 2012
5. Politics – Fewer “swing”seats, more polarization House Makeup by Cook Partisan Vote Index Source: Cook Political Report, 2013.
6. 2012 ELECTION

   Politics – House of Representatives 2012 election results

   5 vacancies 112th Congress House makeup 240 GOP 190 Dems 113th Congress House makeup 201 Dems 234 GOP Source: National Journal, 2012.
7. National Journal Vote Ratings in the Senate* 1982 – 2011 Over the past three decades, voting overlap between GOP and Dems has been disappearing, resulting in a more polarized Congress Most conservative Democratic senator Most liberal Republican senator

   Politics – Fewer mavericks, more polarization, less compromise

   *Source: National Journal’s “Vote Ratings”
8. 2012 ELECTION

   Politics – Senate 2012 election results

   112th Congress Senate Makeup Democrats: 51 Republicans: 47 Independents: 2 51 Dem Not Up for Reelection Dem Defeated Incumbent 7 1 2 3 5 Dem Won Open Seat 113th Congress Senate Makeup 15 Republican Not Up for Reelection Republican Maintained Seat 37 30 Democrats: 53 Republicans: 45 Independents: 2 Republican Defeated Incumbent Republican Won Open Seat Independent 173 Romney Dem Maintained Seat Source: National Journal, 2012.
9. Politics – 2012 Election Results in Congress?Diversity 12 4 3 3 7 10 4 10 29 3 16 3 20 6 5 6 18 11 20 6 5 9 13 55 6 10 8 15 11 7 10 5 6 9 9 16 6 8 38 29 3 Obama 206 Romney 332 Obama 206 Romney 332 Obama
10. Politics – Congress Divided Congress has meant less congressional productivity The 112th Congress
11. Political Climate in Washington in 2013

12. Politics – Senate 2014 Election

13. Political Climate in Washington
14. Political Climate in Washington – The Summer Trifecta?
15. Political Climate in Washington – DoD Estimates 26,000 + Cases of Sexual Assault Occurred in the Military in 2012
16. Fiscal issues
17. Fiscal cliff, sequestration, etc. – How did we get there? $16.82 trillion national debt $1 trillion+ annual federal budget deficit Bipartisan “Budget Control Act of 2011” – signed into law in August 2011 Raised debt limit Cut federal spending by $1 trillion over 10 years Created the Joint Select Committee on Deficit Reduction, “the Super Committee” Failure of Super Committee in Nov. 2011 triggered $1.2 trillion sequester over next 9 years in discretionary and mandatory spending effective Jan. 2013 – 2021 $85 billion sequestration began on March 1, 2013
18. Fiscal cliff deal American Taxpayer Relief Act of 2012 (P.L.112-240) signed into law by President Obama on Jan. 2, 2013 Extended the Bush-era tax cuts for individuals making less than $400,000 and married couples making less than $450,000 Payroll tax cut allowed to expire Extended Work Opportunity Tax Credit (WOTC) through Dec. 31, 2013. WOTC allows employers to claim credit equal to 40% of the first $6,000 of wages for one of eight targeted groups.
19. Fiscal cliff deal Employee Educational Assistance – BIGSHRM Victory Fiscal cliff deal made permanent Section 127of the Internal Revenue Code Section 127 allows an employer to provide employees with up to $5,250 per calendar year tax-free in tuition, fees, and books for courses at the undergraduate and graduate levels Section 127 was set to expire on Jan. 1, 2013 as part of the Bush tax rates SHRM is co-chair of the Coalition to Preserve Employer Provided Educational Assistance (www.cpepea.com)
20. Fiscal cliff and beyond – The Timeline Dec. 31, 2012 – Debt ceiling reached, tax rates expired Jan. 2, 2013 – President signed American Taxpayer Relief Act to make Bush-era tax rates permanent Jan. 31, 2013 – Congress passed bill to suspend debt ceiling May 18, 2013 – U.S. debt ceiling reinstated Late Fall of 2013 – The ceiling will be reached and the U.S. faces threat of default if the ceiling is not raised
21. Health care reform Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act (PPACA) on June 28, 2012 Implementing regulations are being promulgated Despite House vote to repeal PPACA on 5/16, efforts to “repeal and replace” are dead with Obama re-elect House Republicans will continue to scrutinize law IRS admission that it scrutinized conservative advocacy groups provides fresh ammunition to attack PPACA, given IRS’ critical role in the law

22. Health care reform – Public opinion of PPACA

    Public Opinion of ACA Among all Adults Unfavorable 40% unfavorable 37% favorable Favorable Source: Kaiser Health Tracking Poll.
23. Health care reform Some of the Key 2013/14 employer requirements: HSA Contributions Capped at $2,500 Employer Exchange Notification Employer mandate Individual mandate Automatic enrollment Insurance reforms for grandfathered plans
24. Health care reform Fall of 2013
25. Health care reform SHRM’s “Health Care Reform Resource Page” www.shrm.org/healthcare
26. Immigration reform Comprehensive immigration reform is a top issue in 2013 E-Verify extended for three years until Sept. 30, 2015 U.S. Citizenship and Immigration Services temporarywork visas for skilled foreigners (H-1B) cap reached on April 5 States have passed their own immigration laws; Arizona, Virginia and others have required certain employers to use E-Verify on new hires
27. Immigration reform – States States that require some or all employers to register with E-Verify
28. Immigration reform – Federal “Gang of Eight” in both House and Senate (slide) Any legislation would likely mandate employment verification, provide path to citizenship and create new visa category SHRM/American Council on International Personnel (www.acip.com) partnership is big part of the debate Obama Administration continues worksite enforcement

29. Immigration reform – Senate “Gang of Eight”

    Republicans Democrats Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Sponsor of Immigration Innovation Act of 2013 Supports non-deportation of illegal immigrants brought to the U.S. as children Sponsor of the DREAM Act Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Marco Rubio (R-Fla.) Dick Durbin (D-Ill.) Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Has voted to oppose the DREAM Act Supports creation of pathway to earned citizenship Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate John McCain (R-Ariz.) Chuck Schumer (D-N.Y.) Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Supports measures to help foreigners studying science, engineering, technology or math work in the U.S. Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Supports creation of temporary worker program Michael Bennet (D-Colo.) Jeff Flake (R-Ariz.) Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Co-sponsor of the DREAM Act Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Senate Has voted to oppose the DREAM Act Lindsey Graham (R-S.C.) Bob Menendez (D-N.J.) Source: National Journal Research, 2013.
30. Immigration reform – Federal Border Security, Economic Opportunity and Immigration Modernization Act (S. 744) “New system” is just Form I-9 plus mandatory E-Verify Would require all employers to use E-Verify within 5-year phase-in period 5,000+ employees will be phased in within 2 years 500-4,999 employees phased in within 3 years All employers, including agricultural employers, phased in within 4 years Photo matching: As part of the E-Verify system, every non-citizen will be required to show a “biometric work authorization card” or “biometric green card”

31. Immigration reform – Path to citizenship

    Democrats Republicans Many, though not all, Republicans oppose granting illegal immigrants amnesty, arguing that this may create an incentive for more illegal immigrants to come to the U.S. Many Democrats support creating a pathway to earned citizenship for illegal immigrants to naturalize the 11-20 million undocumented workers currently living in the U.S. Both GOP and Democratic politicians want to make more H1-B visas available to attract skilled foreign workers to the U.S. Source: National Journal Research, 2013.
32. Equal Employment Opportunity Commission (EEOC) Jacqueline Berrien, Chair (D) Constance Barker (R) ChaiFeldblum (D) Victoria Lipnic (R) Jenny Yang (D) General Counsel – David Lopez
33. Equal Employment Opportunity Commission (EEOC) April 2012 – EEOC approved enforcement guidance related to consideration of arrest and conviction records in employment decisions April 2012 – EEOC issued final rule amending the Age Discrimination in Employment Act (ADEA) regulations on the Reasonable Factors Other Than Age (RFOA) defense
34. Equal Employment Opportunity Commission (EEOC) EEOC guidance to come? Employer use of consumer reports and credit information Leave as a reasonable accommodation under the Americans with Disabilities Act
35. National Labor Relations Board (NLRB) Mark Pearce, Chairman (D) VACANCY (R) Sharon Block (D) Richard Griffin (D) VACANCY (R) General Counsel – Lafe Solomon Obama recess appts
36. National Labor Relations Board (NLRB) NLRB rule requiring employers to post 11x17 notices in the workplace STATUS: The DC Circuit vacated rule in its entirety in NAM v. NLRB on May 7, 2013 NLRB rule altering Representation Election Procedures (“Quick election rule” or “Ambush election rule”) STATUS: Federal court invalidated NLRB’s quick election rule on May 2012. Board appeal is not expected to resolved until probably Summer 2013
37. National Labor Relations Board (NLRB) NLRB Specialty Healthcare decision STATUS: NLRB is regularly applying the Specialty "overwhelming community of interest” test NLRB Banner Health decision STATUS: NLRB ruled July 2012 that employer’s concern for the integrity of its investigations is outweighed by employees’ Section 7 rights to engage in concerted activity for mutual aid and protection Federal court challenge to NLRB recess appointments STATUS: In Jan. 2013, D.C. Circuit ruled in Noel Canning that appointments were unconstitutional – case likely headed to Supreme Court
38. Preventing Greater Uncertainty in Labor-Management Relations Act H.R. 1120 introduced by Rep. David Roe (R-TN) in wake of D.C. Circuit ruling in Noel Canning that President’s Jan. 2012 NLRB recess appointments were unconstitutional Legislation would prohibit the NLRB from taking any action that requires a quorum until it has a quorum Would also prohibit the NLRB from implementing, administering, or enforcing any decisions finalized on or after Jan. 4, 2012 STATUS: House passed H.R. 1120 by 219-209 vote on April 12, 2013
39. Working Families Flexibility Act (H.R. 1406) Introduced by Rep. Martha Roby (R-AL) Legislation would amend the FLSA to allow private-sector employers option of offering hourly employees the choice of compensatory time off or pay for overtime hours worked Would require employee to have worked minimum of 1,000 hours within the last 12 months to be eligible for comp time Would allow employees to accrue up to 160 hours of comp time per year and to “cash out” unused comp time STATUS:House passed H.R. 1406 by 223 – 204 vote on May 8, 2013
40. Fair Minimum Wage Act (S. 460, H.R. 1010) Introduced by Sen. Tom Harkin (D-IA) and Rep. George Miller (D-CA) Bill would amend the FLSA to raise the hourly minimum wage by $2.85 an hour in three increments: $8.20 an hour 90 days after enactment, $9.15 an hour 12 months after enactment and $10.10 an hour 24 months after enactment The minimum wage would be indexed annually to inflation based on the Consumer Price Index 36 months after enactment The legislation would also increase the minimum wage for tipped employees as well to $3.00 an hour 90 days after enactment, with incremental increases raising it eventually to 70 percent of the regular minimum wage
41. Healthy Families Act (S. 631, H.R. 1286) Introduced by Sen. Tom Harkin (D-IA) and Rep. Rosa DeLauro (D-CT) Would require employers to provide 56 hours/year of paid sick leave Full-time employees working more than thirty hours per week year-round or 1,500 hours Part-time employees working more than twenty hours per week or 1,000 hours would receive pro-rated share of leave Leave may be used on an hour-by-hour basis or in the smallest increment used by employer’s payroll system
42. Paycheck Fairness Act (S. 84, H.R. 377) Introduced by Sen. Barbara Mikulski (D-MD) and Rep. Rosa DeLauro (D-CT) PFA would amend the Equal Pay Act to limit the factors employers can use in making pay decisions to only seniority, merit and quantity/quality of production Would empower the EEOC and the Dept. of Labor to collect wage information from employers of all sizes Would subject employers to unlimited compensatory and punitive damage liability under the Equal Pay Act (in addition to double back pay)
43. Employment Non-Discrimination Act (ENDA, S. 815, H.R. 1755) Introduced by Sen. Jeff Merkley (D-OR) and Rep. Jared Polis (D-CO) ENDA aims to prohibit employment discrimination on the basis of sexual orientation or gender identity In February, Chairman Tom Harkin (D-IA) of Senate HELP Committee promised ENDA “will move this year” in the Senate
44. We want you! For the SHRM Advocacy Team http://bit.ly/JoinTheA-Team Two participation levels: HR Advocate or Advocacy Captain
45. We want you! For the SHRM Advocacy Team Kay Hagan Richard Burr 2 Reasons A Strong Team is Needed for North Carolina
46. We want you! For the SHRM Advocacy Team NC Members on the House Education and Workforce Committee (Virginia Fox – 5th and Richard Hudson – 8th ) NC Members on the House Judiciary Committee (Howard Coble – 6th, Mel Watt 12th, and George Holding – 13th) Additional Reasons Why A Strong Team is Needed for North Carolina
47. Thank you! Contact me anytime: Bob Carragher Government Affairs Robert.Carragher@shrm.org