In This Issue
NLRB Expedited Election Rule Invalidated
NLRP Posting Rule Delayed
EEOC Guidance Enforcement
Health Plan Deductibles
HSA Limits for 2013
Court Invalidates NLRB Expedited Election Rule
The U.S. District Court for the District of Columbia in Washington, D.C. has invalidated the National Labor Relations Board's (NLRB) expedited union election rule, declaring that the Board did not have the required quorum when it adopted the rule. "Two members of the Board participated in the [Dec. 16] decision to adopt the final rule, and two is simply not enough," the opinion states. "Member Hayes cannot be counted toward the quorum merely because he held office, and his participation in earlier decisions relating to the drafting of the rule does not suffice." In response to the decision, the NLRB announced it will temporarily suspend implementation of changes to its process for union representation cases while it considers how to respond to the court decision.
NLRB Posting Rule Delayed
The U.S. District Court for the District of Columbia has ordered the National Labor Relations Board (NLRB) to cease enforcement of its rule requiring all employers subject to the National Labor Relations Act to post notices informing employees of their rights under the National Labor Relations Act (NLRA). The posting requirement was to take effect on April 30th. The NLRB indicated the board's regional offices will not implement the rule requiring all employers subject to the Act to post notices informing employees of their rights under the NLRA, pending resolution of continued legal proceedings. The statement also cites the agency's strong interest in the uniform implementation and administration of its rules as additional considerations. The statement also said the agency disagrees with and will appeal the decision.
EEOC Issues Enforcement Guidance on Employers' Consideration of Arrest and Conviction Records
On April 25, the Equal Employment Opportunity Commission (EEOC) issued an updated Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions under Title VII. The Guidance, which takes effect immediately, is a summary of the EEOC's long-held position that employers' reliance on arrest and conviction records may have a disparate impact on individuals because of their race or national origin, with significant changes in certain areas that are important to most employers. According to the EEOC Guidance, Title VII violations may occur in two employment background check situations:
· When employers treat criminal history differently for different applicants/employees, based on their race or national origin (disparate treatment) or
· When an employer's neutral background check policy or practice disproportionately impacts protected individuals (disparate impact), unless the policy is job-related and consistent with business necessity.
The Guidance explains that, for a disparate impact claim, the EEOC first must identify the policy or practice causing the disparate impact and then confirm that there is a disparate impact. The commentary associated with the second "confirmation" step suggests employers may expect more EEOC requests for voluminous applicant and hiring data, in evaluating disparate impact.
Once the EEOC has established disparate impact, the employer has the burden of proving the affirmative defense that its policy or practice is job related and consistent with business necessity. In the Guidance, the Commission repeats its long-held position that an arrest, by itself, is never job-related and consistent with business necessity because an arrest does not establish that criminal conduct has occurred, individuals are presumed innocent until proven guilty, and many arrests do not result in convictions.
Many Health Plans Have No In-Network Deductible
While many U.S. employers are looking at high-deductible health plans (HDHPs) or attempting to drive greater enrollment in existing HDHPs, nearly half of 2012 employer-provided plans still have $0 in-network deductibles, according to the 2012 Medical Plan Trends Report by HighRoads, an employer health care compliance and benefits management firm, and CLC Benefits, a research and advisory services company. Another 23 percent of plans have an in-network deductible of between $100 and $350.
In another finding, the study revealed that the difference between in- and out-of-network costs for employees has increased substantially since 2011. Out-of-network primary care physician co-payments in 2012 were 53 percent higher than in-network co-payments, compared to a difference of just 16 percent in 2011.
In other findings related to plan costs, the study revealed there is inconsistency in the premium rates charged to employees for different coverage tiers, and nearly half of all health plans have in-network out-of-pocket-maximums of $2,500 or higher for individual coverage. The findings in the report are from health care benefit plan data covering more than 34 million people and representing more than 12,000 plans.
Higher Limits for HSA Contributions, Out-of-Pocket Expenses for High-Deductible Plans in 2013
The Internal Revenue Service has announced the 2013 limits on contribution and out-of-pocket spending amounts for health savings accounts (HSAs) and for the high-deductible health plans (HDHPs) to which HSAs must be linked. A comparison of the 2012 and 2013 limits is shown below:
Contribution and Out-of-Pocket Limits for HSA Accounts and High-Deductible PlansFor 2012 / For 2013 / Change
HSA contribution limit (employer + employee) / Individual: $3,100
Family: $6,250 / Individual: $3,250
Family: $6,450 / Individual: +$150
Family: +200
HSA catch-up contributions (age 55 or older) / $1,000 / $1,000 / No change
HDHP minimum deductible amounts / Individual: $1,200
Family: $2,400 / Individual: $1,250
Family: $2,500 / Individual: +$50
Family: +$100
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) / Individual: $6,050
Family: $12,100 / Individual: $6,250
Family: $12,500 / Individual: +$200
Family: +$400
Hospital Council of Western Pennsylvania
Hospital Council of Western Pennsylvania is a strategic partner with western Pennsylvania health care providers and affiliated organizations, enabling them to realize their missions while maintaining their status as economically viable entities.
Visit http://www.hcwp.org
Call 1-800-704-8434
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