Labor & HR

The eligibility period required for certain individuals to receive a 65 percent premium subsidy to help pay for continuing health coverage, also known as COBRA, has been extended several times but will likely not be extended again.  Although Congress recently passed the Continuing Extension Act of 2010, extending the COBRA subsidy eligibility period to May 31, when addressing the matter after the Memorial Day break, the Senate decided to remove a further extension from pending legislation in order to save $7 billion.  This decision leaves many workers who were involuntarily terminated after May 31 and who desire to continue their employer-sponsored health care coverage to pay the full cost of COBRA.  Those who were involuntarily terminated on or prior to the expiration date and currently receive the COBRA subsidy may continue with the subsidized coverage, but will lose the benefit once they reach the maximum subsidy coverage period of 15 months.

The U.S. Department of Labor (DOL) Wage and Hour Division has issued a final rule to revise the Fair Labor Standards Act as it pertains to workers under age 18. It will place a few more restrictions on tasks that cannot be performed by 16- and 17-year-olds working in construction but leaves in place, for now, an exemption for 16- and 17-year-old apprentices and student learners.

The U.S. Court of Appeals for the Seventh Circuit (Ill., Ind., Wis.) has upheld an arbitration award against the Chicago Regional Council of Carpenters (CRCC) for violating a most-favored nation (MFN) clause resulting in substantial damages to a residential and commercial roofing contractor.  

In an effort to increase voluntary compliance, the Internal Revenue Service (IRS) recently announced that it began randomly questioning 1,200 sponsors of 401(k) plans as a part of a compliance check program administered by its Employee Plans Compliance Unit.  Sponsors of the selected plans were expected to receive a letter that was mailed the week of May 17, 2010, describing the program and directing them to a secure website where they will have 90 days to complete an online compliance questionnaire.  The IRS says it will use the information gathered for education, outreach and enforcement actions.