Tag: UBA

  • Be the Boss You Want to See in the World | California Employee Benefits Advisors

    November 2, 2018

    Tags: , , ,

    An article in the Harvard Business Review suggests that the traits that make someone become a leader aren’t always the ones that make someone an effective leader. Instead, efficacy can be traced to ethicality. Here are a few tips to be an ethical leader.


    Humility tops charisma
    A little charisma goes a long way. Too much and a leader risks being seen as self-absorbed. Instead, focus on the good of the group, not just sounding good.

    Hold steady
    Proving reliable and dependable matters. Showing that—yes—the boss follows the rules, too, earns the trust and respect of the people who work for you.

    Don’t be the fun boss
    It’s tempting to want to be well liked. But showing responsibility and professionalism is better for the health of the team—and your reputation.

    Don’t forget to do
    Analysis and careful consideration is always appreciated. But at the top you also have to make the call, and make sure it’s not just about the bottom line.

    Keep it up!
    Once you get comfortable in your leadership role, you may get too comfortable. Seek feedback and stay vigilant.

    A company that highlights what happens when leaders aren’t the ones to champion ethics is presented in Human Resource Executive. Theranos had a very public rise and fall, and the author of the article cites the critical role compliance and ethics metrics might have played in pushing for better accountability. The article also makes the case for the powerful role of HR professionals in helping guide more impactful ethics conversations.

    One high profile case study of a company recognizing that leadership needed to do more is Uber. Here, leadership realized that fast growth was leading to a crumbling culture. A piece in Yahoo! Sports shows how explosive growth can mean less time to mature as a company. Instead of focusing of partnerships with customers and drivers, Uber became myopically customer-and growth-focused. This led to frustrations for drivers and ultimately a class-action lawsuit. New initiatives, from tipping to phone support to a driver being able to select riders that will get them closer to home, have been rolled out in recent months. These changes have been welcome, but, as the leadership reflected, could have been more proactively implemented to everyone’s benefit. The mindset of bringing people along will also potentially help Uber maintain better ties with municipalities, which ultimately, is good for growth.

    Harvard Business Review Don’t Try to Be the Fun Boss” — and Other Lessons in Ethical Leadership

    Yahoo! Sports – How Uber is recovering from a ‘moral breaking point’

    Human Resource Executive – An Ethics Lesson

    by Bill Olson

    Originally posted on ubabenefits.com

  • Look Backward to Plan Forward | CA Employee Benefits Agency

    October 3, 2018

    Tags: , , , , , , , , , , , , , , , , ,

    We have entered Open Enrollment season and that means you and everyone in your office are probably reading through enrollment guides and trying to decipher it all. As you begin your research into which plan to choose or even how much to contribute to your Health Savings Account (HSA), consider evaluating how you used your health plan last year. Looking backward can actually help you plan forward and make the most of your health care dollars for the coming year.

    Forbes magazine gives the advice, “Think of Open Enrollment as your time to revisit your benefits to make sure you are taking full advantage of them.” First, look at how often you used health care services this year. Did you go to the doctor a lot? Did you begin a new prescription drug regimen? What procedures did you have done and what are their likelihood of needing to be done again this year? As you evaluate how you used your dollars last year, you can predict how your dollars may be spent next year and choose a plan that accommodates your spending.

    Second, don’t assume your insurance coverage will be the same year after year. Your company may change providers or even what services they will cover with the same provider. You may also have better coverage on services and procedures that were previously not eligible for you. If you have choices on which plan to enroll in, make sure you are comparing each plan’s costs for premiums, deductibles, copays, and coinsurance for next year. Don’t make the mistake of choosing a plan based on how it was written in years prior.

    Third, make sure you are taking full advantage of your company’s services. For instance, their preventative health benefits. Do they offer discounted gym memberships? What about weight-loss counseling services or surgery? How frequently can you visit the dentist for cleanings or the optometrist? Make sure you know what is covered and that you are using the services provided for you. Check to see if your company gives discounts on health insurance premiums for completing health surveys or wellness programs—even for wearing fitness trackers! Don’t leave money on the table by not being educated on what is offered.

    Finally, look at your company’s policy choices for life insurance. Taking out a personal life insurance policy can be very costly but ones offered through your office are much more reasonable. Why? You reap the cost benefit of being a part of a group life policy. Again, look at how your family is expected to change this year—are you getting married or having a baby, or even going through a divorce? Consider changing your life insurance coverage to account for these life changes. Forbes says that “people entering or exiting your life is typically a good indicator that you may want to revisit your existing benefits.”

    As you make choices for yourself and/or your family this Open Enrollment season, be sure to look at ALL the options available to you. Do your research. Take the time to understand your options—your HR department may even have a tool available to help you estimate the best health care plan for you and your dependents. And remember, looking backward on your past habits and expenses can be an important tool to help you plan forward for next year.

  • DOL and IRS Release Additional Information on Association Health Plans | California Benefits Firm

    September 21, 2018

    Tags: , , , , , , , , , ,

    On August 20, 2018, the Department of Labor (DOL) posted the Association Health Plans ERISA Compliance Assistance fact sheet.

    On August 20, 2018, the IRS added a new Q&A 18 to its Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act. Q&A 18 confirms that:

    • An employer that is not an applicable large employer (ALE) under the employer shared responsibility provisions does not become an ALE due to participation in an AHP.
    • An employer that is an ALE under the employer shared responsibility provisions continues to be an ALE subject to the employer shared responsibility provisions regardless of its participation in an AHP.
    • The only circumstance when multiple employers are treated as a single employer for determining whether the employer is an ALE is if the employers have a certain level of common or related ownership.

    Originally published by www.UBABenefits.com

    By Karen Hsu

     

  • Leadership, Now with More Humility | CA Benefits Consultants

    July 19, 2018

    Tags: , , , , , , , , , , ,

    More and more, we are learning that scientists, marketers, programmers, and other kinds of knowledge workers lead office lives very similar to famous innovators like Watson, Crick, and Franklin, who discovered the structure of DNA. How so? All of these people live work lives structured around progress in meaningful work. And when this progress occurs, it boosts emotions, perceptions, and productivity.

    This could be an important key to supporting your employees at their desks, wherever those may be. While recognition, tangible incentives, and goals are important, leading managers must also consider nourishing progress through attention to inner work life, minor milestones, and appropriate modeling.

    When progress is effectively monitored and encouraged, it can lead to a self-sustaining progress loop, which often results in increased success and productivity, especially toward larger, group-based goals. In other words, when managers support inner work life and recognize minor progress, it leads to major accomplishments.

    Seeing employees as growing, positive individuals with a drive to experiment and learn, as opposed to mere means to an end goal, can make all the difference in an office, and over the yearsOne way to do this effectively is to incorporate humility into your leadership style. This doesn’t imply that you have low self-confidence or are yourself servile. Rather, it says you prioritize the autonomy of your office and support your employees to think responsibly for themselves. Ask them what their daily work lives are like, and how you can help them maximize effectiveness. Create low-risk opportunities for growth, and most importantly: follow through.

    Read More:
    “Leading through emotions”
    “Leading with emotional intelligence”

     

    By Bill Olson, VP, Marketing & Communications at United Benefit Advisors

    Originally posted on UBABenefits.com

  • Beware of Tech Overload | Petaluma Employee Benefits

    May 3, 2018

    Tags: , , , , , , , , , ,

    Technology has certainly made the workplace faster, smarter and more productive. New apps and systems continuously offer new ways to create, manage and collaborate. However, just as with many good things, workers can get too much of office tech. With each digitization of traditional job and team functions comes a cost in diminishing associated skills. Many forward-thinking companies are taking heed of the potential pitfalls of tech overload. Check out some particular hazards culled from across the Web.

    Loss of Interpersonal Skills — Video chats, group chats, IMs, DMs, texts, pings, not to mention old-fashioned email certainly afford a multitude of ways to communicate, even collaborate. However, there’s no replacement for face-to-face interaction. Over-reliance on digital channels can diminish the opportunities and ability to collaborate in the most free-form manner, that being when folks share the same room.

    Inhibits Big Thinking — Unlimited information flow can sometimes turn into overflow. Continuous text alerts, IMs and other pings can inhibit completion of the task at hand. They can also cause mistakes due to lack of concentration. While pressing issues can be quickly resolved, continual interruptions leave little or no time for working through larger projects and long-term planning.

    Impaired Security — It’s an unfortunate fact of business life that the more freely information flows, even behind firewalls, the more susceptible it is to hacking, corruption and theft. As well-publicized incidents have shown, corporate information is not the only data at risk, but also financial and personal data of employees and customers. It’s vital that when companies upgrade their business tech, their security tech and protocols keep pace.

    Time and Maintenance Costs — The only sure bet with a new application or system is that it will require updates. Also, while out-of-pocket expenses can be quantified, less-obvious costs of downtime devoted to system maintenance and training can pose significant drag on productivity, and in some cases job satisfaction. More companies are discovering that not every tech wave is worth catching, especially if it crashes against strained budgets.

    Encroachment on Personal Time — Certainly boundaries of normal working hours have been significantly extended. While tech has indeed freed workers from cubicle and office tethers, it can also tempt managers and team members to infringe, often unknowingly, on the personal lives of their reports. Yes, emergencies may arise. But workers repeatedly besieged with after-hour queries may seek other places to use their devices.

    It May Be Unhealthy — Work is stressful enough. While technology has certainly speeded operations, it’s concurrently raised everyone’s expectations. Some research indicates that over-reliance on devices may increase stress levels with potentially adverse health consequences. For better health, occasionally put down the phone!

    Find out more:
    Small Business Chronicle: Pros & Cons of Technology in Business Today
    CIO: Americans Suffer Technology Overload, But We Want More
    Northeast Valley News: Technology Overload Causing Health Problems

    By Bill Olson

    Originally published by www.UBABenefits.com

     

  • Higher Satisfaction Through Higher Education | California Benefit Advisors

    April 18, 2018

    Tags: , , , , , , , , , , , , , ,

    When evaluating employee benefits, essentials such as health and dental plans, vacation time and 401(k) contributions quickly come to mind. Another benefit employers should consider involves subsidizing learning as well as ambitions. Grants and reimbursements toward advanced degrees and continuing education can be a smart investment for both employers and employees.

    Educational benefits are strongly linked to worker satisfaction. A survey by the Society for Human Resource Management revealed that nearly 80 percent of responding workers who rated their education benefits highly also rated their employers highly. While only 30 percent of those rating their higher education benefits as fair or poor conversely rated their employer highly.

    These benefits are popular with businesses as well. In a survey by the International Foundation of Employee Benefit Plans, nearly five of six responding employers offer some form of educational benefit. Their top reasons are to retain current employees, maintain or raise employee satisfaction, keep skill levels current, attract new talent and boost innovation and productivity. Tax credits offer additional advantages. Qualifying programs offer employers tax credits up to $5,250 per employee, per year.

    At the same time, companies should offer these benefits with care as they do pose potential pitfalls. Higher education assistance can be costly, even when not covering full costs. Workers taking advantage can become overwhelmed with the demands of after-hour studies, affecting job performance. Also, employers would be wise to ensure their employees don’t promptly leave and take their new skills elsewhere.

    When well-planned, educational benefits will likely prove a good investment. Seventy-five percent of respondents to SHRM’s survey consider their educational-assistance programs successful. To boost your employee morale, skill levels and job-satisfaction scores, consider the benefit that may deliver them all, and more.

    Find out more:
    IFEBP: Why Educational Assistance Programs Work
    EBRI: Fundamentals of Employee Benefit Programs

    By Bill Olsen

    Originally published  by www.UBABenefits.com

  • Court Modifies Order Regarding EEOC Wellness Rules | CA Benefit Advisors

    February 2, 2018

    Tags: , , , , , , , , , , ,

    In August 2017, the United States District Court for the District of Columbia held that the U.S. Equal Employment Opportunity Commission (EEOC) failed to provide a reasoned explanation for its decision to adopt 30 percent incentive levels for employer-sponsored wellness programs under both the Americans with Disabilities Act (ADA) rules and Genetic Information Nondiscrimination Act (GINA) rules.

    At that time, the court declined to vacate the EEOC’s rules because of the significant disruptive effect it would have. However, the court remanded the rules to the EEOC for reconsideration.

    In September 2017, the EEOC filed a status report indicating its schedule to comply with the court order, including issuing a proposed rule by August 2018 and a final rule by October 2019. It stated that it did not expect to require employers to comply with a new rule before 2021.

    In December 2017, the court found the EEOC’s process of not generating applicable rules until 2021 to be unacceptable. Instead, the court determined that one year was ample time for employers to adjust to new EEOC rules. The court vacated the EEOC rules under the ADA and GINA effective January 1, 2019, and ordered the EEOC to promulgate any new proposed rules by August 31, 2018.

    In January 2018, the EEOC asked the court to reconsider the portion of the court’s order that required the EEOC to promulgate new proposed rules by August 31, 2018. The court vacated that portion of its order. The court’s order to vacate the portions of the EEOC’s wellness rules under the ADA and GINA as of January 1, 2019, remains.

    Current and Upcoming Impact on Employer Wellness Plans

    • Employers are still subject to the EEOC’s wellness rules, including the incentive limits, through 2018.
    • If the EEOC does not promulgate new rules by the end of 2018, then the EEOC’s incentive limit rules will not apply to employers’ wellness programs starting on January 1, 2019. Employers would only be subject to HIPAA’s more lenient incentive limits.

    Originally published by www.UBABenefits.com

  • Be the Boss You Want to See in the World | California Employee Benefits Advisors

    November 2, 2018

    Tags: , , ,

    An article in the Harvard Business Review suggests that the traits that make someone become a leader aren’t always the ones that make someone an effective leader. Instead, efficacy can be traced to ethicality. Here are a few tips to be an ethical leader.


    Humility tops charisma
    A little charisma goes a long way. Too much and a leader risks being seen as self-absorbed. Instead, focus on the good of the group, not just sounding good.

    Hold steady
    Proving reliable and dependable matters. Showing that—yes—the boss follows the rules, too, earns the trust and respect of the people who work for you.

    Don’t be the fun boss
    It’s tempting to want to be well liked. But showing responsibility and professionalism is better for the health of the team—and your reputation.

    Don’t forget to do
    Analysis and careful consideration is always appreciated. But at the top you also have to make the call, and make sure it’s not just about the bottom line.

    Keep it up!
    Once you get comfortable in your leadership role, you may get too comfortable. Seek feedback and stay vigilant.

    A company that highlights what happens when leaders aren’t the ones to champion ethics is presented in Human Resource Executive. Theranos had a very public rise and fall, and the author of the article cites the critical role compliance and ethics metrics might have played in pushing for better accountability. The article also makes the case for the powerful role of HR professionals in helping guide more impactful ethics conversations.

    One high profile case study of a company recognizing that leadership needed to do more is Uber. Here, leadership realized that fast growth was leading to a crumbling culture. A piece in Yahoo! Sports shows how explosive growth can mean less time to mature as a company. Instead of focusing of partnerships with customers and drivers, Uber became myopically customer-and growth-focused. This led to frustrations for drivers and ultimately a class-action lawsuit. New initiatives, from tipping to phone support to a driver being able to select riders that will get them closer to home, have been rolled out in recent months. These changes have been welcome, but, as the leadership reflected, could have been more proactively implemented to everyone’s benefit. The mindset of bringing people along will also potentially help Uber maintain better ties with municipalities, which ultimately, is good for growth.

    Harvard Business Review Don’t Try to Be the Fun Boss” — and Other Lessons in Ethical Leadership

    Yahoo! Sports – How Uber is recovering from a ‘moral breaking point’

    Human Resource Executive – An Ethics Lesson

    by Bill Olson

    Originally posted on ubabenefits.com

  • Look Backward to Plan Forward | CA Employee Benefits Agency

    October 3, 2018

    Tags: , , , , , , , , , , , , , , , , ,

    We have entered Open Enrollment season and that means you and everyone in your office are probably reading through enrollment guides and trying to decipher it all. As you begin your research into which plan to choose or even how much to contribute to your Health Savings Account (HSA), consider evaluating how you used your health plan last year. Looking backward can actually help you plan forward and make the most of your health care dollars for the coming year.

    Forbes magazine gives the advice, “Think of Open Enrollment as your time to revisit your benefits to make sure you are taking full advantage of them.” First, look at how often you used health care services this year. Did you go to the doctor a lot? Did you begin a new prescription drug regimen? What procedures did you have done and what are their likelihood of needing to be done again this year? As you evaluate how you used your dollars last year, you can predict how your dollars may be spent next year and choose a plan that accommodates your spending.

    Second, don’t assume your insurance coverage will be the same year after year. Your company may change providers or even what services they will cover with the same provider. You may also have better coverage on services and procedures that were previously not eligible for you. If you have choices on which plan to enroll in, make sure you are comparing each plan’s costs for premiums, deductibles, copays, and coinsurance for next year. Don’t make the mistake of choosing a plan based on how it was written in years prior.

    Third, make sure you are taking full advantage of your company’s services. For instance, their preventative health benefits. Do they offer discounted gym memberships? What about weight-loss counseling services or surgery? How frequently can you visit the dentist for cleanings or the optometrist? Make sure you know what is covered and that you are using the services provided for you. Check to see if your company gives discounts on health insurance premiums for completing health surveys or wellness programs—even for wearing fitness trackers! Don’t leave money on the table by not being educated on what is offered.

    Finally, look at your company’s policy choices for life insurance. Taking out a personal life insurance policy can be very costly but ones offered through your office are much more reasonable. Why? You reap the cost benefit of being a part of a group life policy. Again, look at how your family is expected to change this year—are you getting married or having a baby, or even going through a divorce? Consider changing your life insurance coverage to account for these life changes. Forbes says that “people entering or exiting your life is typically a good indicator that you may want to revisit your existing benefits.”

    As you make choices for yourself and/or your family this Open Enrollment season, be sure to look at ALL the options available to you. Do your research. Take the time to understand your options—your HR department may even have a tool available to help you estimate the best health care plan for you and your dependents. And remember, looking backward on your past habits and expenses can be an important tool to help you plan forward for next year.

  • DOL and IRS Release Additional Information on Association Health Plans | California Benefits Firm

    September 21, 2018

    Tags: , , , , , , , , , ,

    On August 20, 2018, the Department of Labor (DOL) posted the Association Health Plans ERISA Compliance Assistance fact sheet.

    On August 20, 2018, the IRS added a new Q&A 18 to its Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act. Q&A 18 confirms that:

    • An employer that is not an applicable large employer (ALE) under the employer shared responsibility provisions does not become an ALE due to participation in an AHP.
    • An employer that is an ALE under the employer shared responsibility provisions continues to be an ALE subject to the employer shared responsibility provisions regardless of its participation in an AHP.
    • The only circumstance when multiple employers are treated as a single employer for determining whether the employer is an ALE is if the employers have a certain level of common or related ownership.

    Originally published by www.UBABenefits.com

    By Karen Hsu

     

  • Leadership, Now with More Humility | CA Benefits Consultants

    July 19, 2018

    Tags: , , , , , , , , , , ,

    More and more, we are learning that scientists, marketers, programmers, and other kinds of knowledge workers lead office lives very similar to famous innovators like Watson, Crick, and Franklin, who discovered the structure of DNA. How so? All of these people live work lives structured around progress in meaningful work. And when this progress occurs, it boosts emotions, perceptions, and productivity.

    This could be an important key to supporting your employees at their desks, wherever those may be. While recognition, tangible incentives, and goals are important, leading managers must also consider nourishing progress through attention to inner work life, minor milestones, and appropriate modeling.

    When progress is effectively monitored and encouraged, it can lead to a self-sustaining progress loop, which often results in increased success and productivity, especially toward larger, group-based goals. In other words, when managers support inner work life and recognize minor progress, it leads to major accomplishments.

    Seeing employees as growing, positive individuals with a drive to experiment and learn, as opposed to mere means to an end goal, can make all the difference in an office, and over the yearsOne way to do this effectively is to incorporate humility into your leadership style. This doesn’t imply that you have low self-confidence or are yourself servile. Rather, it says you prioritize the autonomy of your office and support your employees to think responsibly for themselves. Ask them what their daily work lives are like, and how you can help them maximize effectiveness. Create low-risk opportunities for growth, and most importantly: follow through.

    Read More:
    “Leading through emotions”
    “Leading with emotional intelligence”

     

    By Bill Olson, VP, Marketing & Communications at United Benefit Advisors

    Originally posted on UBABenefits.com

  • Beware of Tech Overload | Petaluma Employee Benefits

    May 3, 2018

    Tags: , , , , , , , , , ,

    Technology has certainly made the workplace faster, smarter and more productive. New apps and systems continuously offer new ways to create, manage and collaborate. However, just as with many good things, workers can get too much of office tech. With each digitization of traditional job and team functions comes a cost in diminishing associated skills. Many forward-thinking companies are taking heed of the potential pitfalls of tech overload. Check out some particular hazards culled from across the Web.

    Loss of Interpersonal Skills — Video chats, group chats, IMs, DMs, texts, pings, not to mention old-fashioned email certainly afford a multitude of ways to communicate, even collaborate. However, there’s no replacement for face-to-face interaction. Over-reliance on digital channels can diminish the opportunities and ability to collaborate in the most free-form manner, that being when folks share the same room.

    Inhibits Big Thinking — Unlimited information flow can sometimes turn into overflow. Continuous text alerts, IMs and other pings can inhibit completion of the task at hand. They can also cause mistakes due to lack of concentration. While pressing issues can be quickly resolved, continual interruptions leave little or no time for working through larger projects and long-term planning.

    Impaired Security — It’s an unfortunate fact of business life that the more freely information flows, even behind firewalls, the more susceptible it is to hacking, corruption and theft. As well-publicized incidents have shown, corporate information is not the only data at risk, but also financial and personal data of employees and customers. It’s vital that when companies upgrade their business tech, their security tech and protocols keep pace.

    Time and Maintenance Costs — The only sure bet with a new application or system is that it will require updates. Also, while out-of-pocket expenses can be quantified, less-obvious costs of downtime devoted to system maintenance and training can pose significant drag on productivity, and in some cases job satisfaction. More companies are discovering that not every tech wave is worth catching, especially if it crashes against strained budgets.

    Encroachment on Personal Time — Certainly boundaries of normal working hours have been significantly extended. While tech has indeed freed workers from cubicle and office tethers, it can also tempt managers and team members to infringe, often unknowingly, on the personal lives of their reports. Yes, emergencies may arise. But workers repeatedly besieged with after-hour queries may seek other places to use their devices.

    It May Be Unhealthy — Work is stressful enough. While technology has certainly speeded operations, it’s concurrently raised everyone’s expectations. Some research indicates that over-reliance on devices may increase stress levels with potentially adverse health consequences. For better health, occasionally put down the phone!

    Find out more:
    Small Business Chronicle: Pros & Cons of Technology in Business Today
    CIO: Americans Suffer Technology Overload, But We Want More
    Northeast Valley News: Technology Overload Causing Health Problems

    By Bill Olson

    Originally published by www.UBABenefits.com

     

  • Higher Satisfaction Through Higher Education | California Benefit Advisors

    April 18, 2018

    Tags: , , , , , , , , , , , , , ,

    When evaluating employee benefits, essentials such as health and dental plans, vacation time and 401(k) contributions quickly come to mind. Another benefit employers should consider involves subsidizing learning as well as ambitions. Grants and reimbursements toward advanced degrees and continuing education can be a smart investment for both employers and employees.

    Educational benefits are strongly linked to worker satisfaction. A survey by the Society for Human Resource Management revealed that nearly 80 percent of responding workers who rated their education benefits highly also rated their employers highly. While only 30 percent of those rating their higher education benefits as fair or poor conversely rated their employer highly.

    These benefits are popular with businesses as well. In a survey by the International Foundation of Employee Benefit Plans, nearly five of six responding employers offer some form of educational benefit. Their top reasons are to retain current employees, maintain or raise employee satisfaction, keep skill levels current, attract new talent and boost innovation and productivity. Tax credits offer additional advantages. Qualifying programs offer employers tax credits up to $5,250 per employee, per year.

    At the same time, companies should offer these benefits with care as they do pose potential pitfalls. Higher education assistance can be costly, even when not covering full costs. Workers taking advantage can become overwhelmed with the demands of after-hour studies, affecting job performance. Also, employers would be wise to ensure their employees don’t promptly leave and take their new skills elsewhere.

    When well-planned, educational benefits will likely prove a good investment. Seventy-five percent of respondents to SHRM’s survey consider their educational-assistance programs successful. To boost your employee morale, skill levels and job-satisfaction scores, consider the benefit that may deliver them all, and more.

    Find out more:
    IFEBP: Why Educational Assistance Programs Work
    EBRI: Fundamentals of Employee Benefit Programs

    By Bill Olsen

    Originally published  by www.UBABenefits.com

  • Court Modifies Order Regarding EEOC Wellness Rules | CA Benefit Advisors

    February 2, 2018

    Tags: , , , , , , , , , , ,

    In August 2017, the United States District Court for the District of Columbia held that the U.S. Equal Employment Opportunity Commission (EEOC) failed to provide a reasoned explanation for its decision to adopt 30 percent incentive levels for employer-sponsored wellness programs under both the Americans with Disabilities Act (ADA) rules and Genetic Information Nondiscrimination Act (GINA) rules.

    At that time, the court declined to vacate the EEOC’s rules because of the significant disruptive effect it would have. However, the court remanded the rules to the EEOC for reconsideration.

    In September 2017, the EEOC filed a status report indicating its schedule to comply with the court order, including issuing a proposed rule by August 2018 and a final rule by October 2019. It stated that it did not expect to require employers to comply with a new rule before 2021.

    In December 2017, the court found the EEOC’s process of not generating applicable rules until 2021 to be unacceptable. Instead, the court determined that one year was ample time for employers to adjust to new EEOC rules. The court vacated the EEOC rules under the ADA and GINA effective January 1, 2019, and ordered the EEOC to promulgate any new proposed rules by August 31, 2018.

    In January 2018, the EEOC asked the court to reconsider the portion of the court’s order that required the EEOC to promulgate new proposed rules by August 31, 2018. The court vacated that portion of its order. The court’s order to vacate the portions of the EEOC’s wellness rules under the ADA and GINA as of January 1, 2019, remains.

    Current and Upcoming Impact on Employer Wellness Plans

    • Employers are still subject to the EEOC’s wellness rules, including the incentive limits, through 2018.
    • If the EEOC does not promulgate new rules by the end of 2018, then the EEOC’s incentive limit rules will not apply to employers’ wellness programs starting on January 1, 2019. Employers would only be subject to HIPAA’s more lenient incentive limits.

    Originally published by www.UBABenefits.com

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