Legislative Update on Employment & Safety Related Issues

1. Legislative Updateon Employment & Safety Related Issues Pat Grischow Manager – Government Affairs – HR & Government Communications

2. Federal Legislation / Regulation • Expect a very active Congress and Administration • Democrats have control of the US House and Senate • House: 259 Ds, 178 Rs, 1 Independent • Senate: 57 Ds, 41 Rs, 2 Independents who caucus with Ds, • New president was one of the most liberal US Senators • Labor unions spent tens of millions on candidates who would support their agenda • Employers will have to become active to be sure Congress and Administration understand the impact of their actions on employers

3. Federal Legislation / Regulation What has already passed • ADA Restoration Act ( H.R. 3195 / S. 1881) • Compromise bill expanded Americans with Disabilities Act • EEOC Commission stopped rules from becoming effective • Genetic Information Nondiscrimination Act ( H.R. 493 / S. 358) • Prohibits employment and benefits discrimination on the basis of genetic information • EEOC has issued proposed rules for employment provisions • Mental Health Parity Act (H.R. 1424 / S. 558) • Mandates coverage for mental illnesses at the same level as physical illnesses • Includes substance abuse

4. Federal Legislation / Regulation What has already passed • Lilly Ledbetter Fair Pay Act ( H.R. 11 / S. 181) • Eliminated time limits to file pay discrimination claims • Children's Health Insurance Program Reauthorization ( H.R. 2 / S. 275) • Reauthorizes & expands State Children’s Health Insurance Program (SCHIP) • FMLA Expansion for Military Service Family Members and Caregivers (H.R. 1585) • Provides FMLA-protected leave to employees caring for injured military service members and to family members of service members called to active duty

5. Federal Legislation / Regulation What has already passed • American Recovery and Reinvestment Act of 2009 (H.R. 1 ) • COBRA continuation subsidy of 65% for up to 9 months • Unemployment benefits extended for as long as 33 weeks • Unemployment benefits increased $25 per week • Incentive fund for states to change unemployment insurance programs to cover workers who quit to care for a sick family member and certain part-time workers • Funding for national study on comparative effectiveness of medical treatments • Funding to accelerate development and adoption of national health information technology infrastructure • More stringent HIPAA requirements

6. Federal Department of Labor • Family & Medical Leave Act (FMLA) • New regulations effective January 16, 2009 • Requires significant changes in administration • US Representative Hilda Solis (D-CA) confirmed as DOL Secretary • Director of American Rights at Work, union group coordinating lobbying effort for Employee Free Choice Act • Increased Wage & Hour enforcement

7. Federal Department of Labor • Jordan Barab named OSHA’s acting assistant secretary until OSHA administrator is named • Former labor safety & health consultant and program coordinator • Expect increased OSHA inspection & enforcement activity • Potential new regulations on dust, silica, ergonomics • OSHA PEL Standard for Hexavalent Chromium upheld by court • Supports rule based on technological & economic feasibility

8. Federal Legislation What may be on the horizon • Paycheck Fairness Act (H.R. 12) • Passed by House in January 2009 • Unlimited compensatory & punitive damages under the Equal Pay Act, weakens employer defenses & expands class actions • Comparable worth • Employee Free Choice Act (Card Check) (H.R. 1409 / S. 560) • Eliminates secret ballot election to determine union representation • Sets time limits & mandatory arbitration for first contract • Takes away workers right to vote on first contract • Coalition for a Democratic Workplace: www.myprivateballot.com

9. Federal Legislation What may be on the horizon • Health Care Reform • Started with SCHIP reauthorization & economic stimulus package • Expect broad range of proposals to achieve universal coverage • Funded with tax increases and cuts in Medicare / Medicaid • FMLA Expansion • Eligibility requirements & covered employers • Paid leave proposals • Working Families Flexibility Act • Establishes legal obligation for employer to negotiate work schedules and locations with individual employees

10. Federal Legislation What may be on the horizon • Worker Protection Against Combustible Dust Explosions and Fires Act (H.R. 849) • Requires OSHA to develop standard for combustible dust • Discards consideration of technological & economic feasibility • Protecting America's Workers Act • Amends OSHA to cover more workers, increase penalties, strengthen whistleblower protections • Change Rulemaking Process for Permissible Exposure Limits • Would discard normal rulemaking process & require adoption of voluntary consensus standards

11. Federal Legislation What may be on the horizon • Civil Rights Act • Major rewrite of numerous workplace discrimination law • Re-Empowerment of Skilled and Professional Employees and Construction Tradeworkers (RESPECT) Act • Changes NLRB definition of supervisor • National Commission on State Workers' Compensation Laws Act of 2009 (H.R. 635) • Establishes commission to study & evaluate adequacy of state workers compensation laws

12. Federal Legislation What may be on the horizon • 401(k) and IRA plan changes • Eliminate tax-favored treatment • Replace with government-run program similar to Social Security • Energy & climate change legislation • Significant increases in electricity costs • Billions in new revenue generated for federal government • Under cap & trade proposal, Ohio increased cost projected to be $11.2 billion ($975 per person) per year

13. Ohio Issues • Unemployment Compensation Trust Fund • Claims cost has exceeded fund balance, prompting federal bailout • Caused by high rate of unemployment & insufficient funding • Federal economic stimulus incentive funding encourages state expansion of eligibility • Workers’ Compensation • Board of Directors reviewing all aspects of system • Workers’ Compensation Council • Deloitte study on BWC Web site: http://www.bwc.state.oh.us • Group rating / discount changes • Self-Insuring Employer Work Group • BWC & IC budgets (H.B. 15 & 16) passed by Ohio House

14. Ohio Issues • Health Care Coverage Expansion • Started with Medicaid expansion • Expect proposals to increase access to coverage • Education Proposals • Funding & education reforms • Stark Education Partnership: http://www.edpartner.org/ • Energy • S.B. 221 revised regulatory structure for electric public utility companies • PUCO hearing requests for huge rate increases from electric companies

15. Participative Democracy • Government impacts all aspects of American business • Policies & laws shaped by many special interest groups • Voters support candidates who reflect their thinking • All sides can speak & participate in political process

16. What Can You Do? • Watch & evaluate impact of proposed legislation & regulations • Join organizations • Establish relationships with elected & appointed government officials • Participate in political process • Participate in election process • Communicate! With government officials and your associates

17. Questions? “America is not governed by the majority, but governed by the majority of those who participate.” Thomas Jefferson