Regulations on Equal Treatment for Agency Workers Finalised
The Agency Workers Regulations 2010, implementing the EC Temporary Agency Workers Directive (2008/104/EC) have been put before the UK Parliament, although they will not come into force until October 2011. The Regulations provide all employment agency workers with a right to equal treatment in basic working and employment conditions with their directly employed counterparts after 12 weeks in a given job.
Continue Reading...Provincial Finance Ministers Release Report on Pension System
The steering committee of provincial finance ministers has released its report (pdf) on the adequacy of retirement income and its proposals for improving pension plan coverage in Canada.
Continue Reading...Ontario Court of Appeal Releases Decision on Peril of Partial Pension Wind-ups
On January 11, 2010, the Ontario Court of Appeal released its decision in Hydro One Inc. v. Ontario (Financial Services Commission). The central issue in the case was whether the number of employees terminated as part of a restructuring could be considered "significant" under the Ontario Pension Benefits Act thereby constituting grounds for a partial wind-up order.
Continue Reading...Haiti Earthquake May Have Legal Repercussions for Employers
In the wake of the devastating earthquake in Haiti, businesses operating in the United States, even those without establishments in Haiti, will be facing employment issues related to the aftermath of the tragedy and the ongoing relief effort. Companies should anticipate new employment-related questions encountered when the business and/or its employees seek to aid the relief effort, either with monetary donations or by donations of skill, expertise or goods. In addition, employers with workers and business interests in Haiti must also address various personnel issues.
Continue Reading...Legislative Update for the Week of January 18
Supreme Court Eases Ban on Corporate, Union Political Spending
In a narrowly held decision that could have a significant impact on the 2010 mid-term elections, the U.S. Supreme Court has ruled that restrictions on political spending by corporations and unions are unconstitutional. Read the full post here. (January 22)
Obama Returns Craig Becker Nomination to Senate
President Obama re-submitted to the Senate his nomination of controversial candidate Craig Becker to be a member of the National Labor Relations Board. Read the full post here. (January 21)
What Could Health Care Reform Mean for Employers?
President Obama has made healthcare reform in the U.S. a major legislative priority. Whether a healthcare bill will ultimately be enacted and in what form is unclear. Democratic members of Congress are currently reconciling the Senate's Patient Protection and Affordable Care Act (H.R. 3590) with the House of Representatives' Affordable Health Care for America Act (H.R. 3962), both of which narrowly cleared their respective chambers. While these bills contain important differences, both contain a number of provisions that would dramatically change the scope and content of employer-provided health insurance.
Continue Reading...Change to UK Whistleblowing Regime: Tribunals to Have Power to Alert Regulator
Under draft legislation due to come into effect on 6 April 2010, claimants to UK employment tribunals will be able to tick a box on their claim form indicating whether their claim involves allegations of a protected disclosure and, if so, whether they wish the tribunal to pass on such allegations to the relevant regulatory body. If the tribunal accepts the claim and considers it appropriate to do so, it may send a copy of the claim, or part of it, to one or more regulators set out in a prescribed list. The tribunal would then write to the claimant and respondent to confirm that a copy of the claim form, or extracts from it, has been disclosed.
Continue Reading...Legislative Update for the Week of January 11
Reported Deal Would Provide Temporary "Carve Out" for Collectively Bargained Healthcare Plans
A reported deal has been reached between the White House and union leaders regarding the proposed 40 percent excise tax on high cost ("Cadillac") healthcare plans for inclusion in the final healthcare overhaul bill. Read the full post here. (January 15)
Bill Would Extend Waiver of Required Minimum Distribution Rules
Rep. Joe Sestak (D-Pa.) has introduced a bill (H.R. 4421) that would extend the waiver of required minimum distribution rules for certain retirement plans and accounts through 2010. Read the full post here. (January 15)
A Guide to the New Bank Payroll Tax
Lewis Silkin has published a guide (pdf) to the new, one-off 'bank payroll tax' (BPT) that was announced by the Government last month. The tax is payable at a rate of 50% on bonuses (including deferred bonuses and share awards) paid or awarded by banks and certain other financial institutions in the period between 9 December 2009 and 5 April 2010. (The Government has, however, indicated that this period might be extended.) BPT is in addition to the income tax and national insurance contributions also payable on bonuses and results in a combined effective tax rate of over 100%.
Continue Reading...Legislative Update for the Week of January 4
House Committees Release Health Reform Comparison Chart
Three House committees (Ways and Means, Education and Labor, and Energy and Commerce) involved in crafting the healthcare overhaul bill have put together an 11-page document highlighting the similarities and differences between the House and Senate bills. Read the full post here. (January 8)
Equal Employment Opportunity Commission Year-End Statistics Show Record Level of Discrimination Charges
The Equal Employment Opportunity Commission reported that 93,277 workplace discrimination charges were filed in fiscal year 2009, the second highest total for the agency. Read the full post here. (January 7)
American Benefits Council Urges Employer Flexibility for Final Healthcare Bill
The American Benefits Council, an advocacy organization for voluntary private employer-sponsored benefit programs, has released a document outlining its recommendations to Congress for crafting the final healthcare bill. Read the full post here. (January 6)
Caveat Employer: Let the Employer Beware of Employee Endorsements on Social Media Websites
The Federal Trade Commission issued updated guidelines aimed at protecting consumers from misleading endorsements and advertising. Employers whose employees use social media, such as blogs or Facebook, to comment on their employer's products or services face potential liability, even where the employer has not authorized or ratified the employee's remarks. Read the full post here. (January 4)
Employers Faced with Defending SOX Whistleblower Claims in Multiple Forums Following Fourth Circuit Decision
In a landmark decision issued December 31, 2009, the U.S. Court of Appeals for the Fourth Circuit held that an individual bringing a whistleblower claim against his former employer has the right to pursue this action de novo in federal court - even after losing his case at the administrative level - because a final administrative decision was not issued within 180 days, contrary to statutory requirements. In Stone v. Instrumentation Laboratory Co. (No. 08-2196, Dec. 31, 2009) (pdf), David Stone, a former employee of Instrumentation Laboratory Co. (ILC), alleged that he was fired in retaliation for complaining that his superiors were not accurately tracking, reporting, and paying certain administrative fees, which he believed impacted the accuracy of ILC's financial reporting to shareholders. Pursuant to the Sarbanes-Oxley ("SOX") Act, Stone filed a retaliation claim with the Occupational Safety and Health Administration (OSHA). OSHA filed its preliminary findings - which Stone objected to - more than 180 days after Stone filed his charge. Stone then requested a hearing before an administrative law judge (ALJ). The ALJ ultimately granted ILC's motion for summary decision, and Stone appealed to the Administrative Review Board (ARB). Before the ARB considered the matter, Stone filed a notice stating his intent to file his case anew in federal court. Once the matter was brought in federal district court, the judge dismissed the action, finding that the ALJ's dismissal of Stone's administrative complaint amounted to a final judgment on the merits, and that re-litigating the action would be wasteful. Stone appealed this decision, and the Fourth Circuit sided with him, concluding that the express language of the SOX Act entitled him to de novo review in federal court.
Continue Reading...Pension Plan Sponsors Pessimistic About Canadian Pension System
December Employment Statistics Released
Court of Appeal Rejects Christian Registrar's Same-Sex Appeal
In Ladele v London Borough of Islington and another, the Court of Appeal has ruled that a local authority did not unlawfully discriminate against an orthodox Christian registrar on grounds of her evangelical beliefs by requiring her to officiate at same-sex civil partnership ceremonies. The case highlights the contentious issue of individuals' rights in connection with religious belief conflicting with the other protected rights.
Continue Reading...New Compensation Limits and Statutory Payments for 2010 Confirmed
The Government has published the Employment Rights (Revision of Limits) Order 2009, which contains revised Employment Tribunal compensation limits applicable from 1 February 2010. Amongst other things, the Order revises the maximum compensatory award for unfair dismissal downward, from £66,200 to £65,300. The reduction reflects a decrease of 1.4 per cent in the Retail Prices Index (RPI) from September 2008 to September 2009.
Continue Reading...Legislative Update for the Week of December 28
Department of Labor Releases Fact Sheet on Updated COBRA Premium Subsidy
The Department of Labor's Employee Benefits Security Administration has released a fact sheet explaining how the Defense Department's 2010 appropriations bill extends the Consolidated Omnibus Budget Reconciliation Act (COBRA) premium reduction provided by the American Recovery and Reinvestment Act. Read the full post here. (December 28)
Craig Becker Nomination to the National Labor Relations Board Hits a Snag
Before the Senate adjourned for the holiday break, it returned to the President for reconsideration the nomination of Craig Becker to be a member of the National Labor Relations Board. Read the full post here. (December 28)
Immigration Update for the Week of January 18
United States: Audit Reveals E-Verify Errors by the Social Security Administration
The Social Security Administration failed to run electronic employment verification (E-Verify) checks on 19% of the employees it hired in 2008 and 2009. Read the full post here. (January 21)
United States: USCIS Memo Outlines Employer-Employee Relationship for H-1B Purposes
The United States Citizenship and Immigration Services' Associate Director for Service Center Operations has issued a detailed memo regarding how to determine, when evaluating H-1B visa petitions, whether an employer-employee relationship exists and will continue to exist. Read the full post here. (January 21)
Proposed French Law Mandates Gender Quotas for Corporate Boards
The bill has the support of both the Government and Medef, the national employers' association. If the law passes,
In a related development,
Immigration Update for the Week of January 11
United Kingdom: Identity Cards for Skilled Migrant Workers Now Available
As of January 6, 2010, the UK Border Agency has started issuing identity cards to skilled foreign workers and their dependents. Read the full post here. (January 16)
United States: State Department Releases February 2010 Visa Bulletin
The U.S. Department of State has released its Visa Bulletin for February 2010. Read the full post here. (January 16)
Immigration Update for the Week of January 4
United Kingdom: Malaysians May Lose Visa-Free Status
The U.K. is considering rescinding Malaysia's visa-free status due to the high number (an estimated 20,000) of Malaysian nationals overstaying and working illegally. Read the full post here. (January 4)
China: Government Officials Attempting to Curb Illegal Immigration in Guangdong Province
Government officials are working to combat illegal immigration in southern China's Guangdong province, home to 57,800 permanent--and more than 1.14 million temporary--foreign residents where, during the first half of 2009, almost one-third of foreigners visiting China entered or exited the country. Read the full post here. (January 4)
United States: The City of Lancaster, California Will Require Businesses to Use E-Verify
Businesses in the southern California city of Lancaster will be required to use E-Verify to confirm new hires' eligibility to legally work in the United States, and those that fail to comply with the requirement could face revocation of their business license. Read the full post here. (January 4)
Latest Statistics Indicate "Murky" Job Outlook in U.S. and Europe
Economic recovery remains slow in the United States and the 16-member euro area, with both reporting 10% unemployment rates, according to the New York Times. Unemployment in the larger, 27-member European Union was 9.5% in November 2009.
In November 2009, the euro area lost 102,000 jobs, while the Unites States reported an increase of 4,000 jobs. However, the United States' good news was short-lived, as 16,000 job losses were added to October's revised tally, bringing the country's net job losses in 2009 to 85,000.
Unemployment rates vary widely in Europe. The Netherlands has the lowest at 3.9%, while Latvia has the highest at 22.3%. France and Germany, with unemployment rates of 10% and 7.6%, respectively, had established programs offering support to companies putting workers on shorter hours to alleviate the effects of recession, which has helped to keep unemployment rates relatively low in these countries.
Immigration Update for the Week of December 28
India: Online Processing of U.S. Visa Applications Begins February 1, 2010
Beginning February 1, 2010, an online application process for U.S. visas will be launched at consulates in India. Read the full post here. (December 31)
United States: Prevailing Wage Determinations to be Processed in D.C.
Starting January 1, 2010, the Office of Foreign Labor Certification National Prevailing Wage and Helpdesk Center in Washington, D.C. will receive and process prevailing wage determination requests for use in H-1B, H-1B1, H-1C, H-2B, E-3 and permanent labor certification programs. Read the full post here. (December 31)
Canada: Online Applications Available for Temporary Residents
Citizenship and Immigration Canada has announced that temporary residents seeking work permits or extensions of their stays in the country now can apply online. Read the full post here. (December 31)