4 mistakes to avoid at the intersection of FMLA and PTO
Administration of the Family and Medical Leave Act (FMLA) can become extremely complex, especially when other leave entitlements are added. Read this blog post to learn about the four mistakes employers should avoid when it comes to FMLA and PTO.
By now, many employers can recite the basic requirements of the federal Family and Medical Leave Act (FMLA) in their sleep. The law provides eligible employees (those who have at least one year of service and 1,250 hours under their belt) with up to 12 weeks of unpaid, job-protected leave over a 12-month period for qualifying family-related or medical reasons. FMLA covers companies with 50 or more employees located within 75 miles of each other.
While the law itself is conceptually straightforward, administration can become incredibly complex — especially when you throw other types of leave entitlements into the mix such as workers' comp, disability leave, and paid time off (PTO).
HR Dive recently spoke with three employment law attorneys about the most common — and costly — leave administration errors employers make when it comes to the intersection of FMLA and paid leave.
Mistake #1: Not running leaves concurrently
"I would say that the biggest issue that we see is a lot of employers do not have policies that provide for the use of paid time off concurrently with the FMLA," said attorney Molly Batsch, an officer at the St. Louis office of Greensfelder, Hemker & Gale, P.C. "[Because] the FMLA regulations allow employers to require employees to use any paid time off concurrently with unpaid FMLA leave, we really encourage employers to put that specifically in their policies."
Attorney Jeff Nowak, a partner at the Chicago office of Franczek Radelet P.C., concurred via email: "A decent number of employers don't realize that they can run FMLA leave concurrently with paid leave benefits such as worker's compensation benefits — or they forget to run both at the same time."
Failing to run leaves concurrently, when permitted, can be costly for employers. A series of consecutive leaves strung together can mean longer absences and increased workplace disruption.
Mistake #2: Policy confusion
A similar mistake employers make is that they don't explicitly outline the concurrent rule to employees. Your FMLA policy should make clear that any paid time off will run concurrently with unpaid FMLA time, advised Batsch: "I think that employers have a few misconceptions about that.
"The first misconception would be that the employee gets to pick," she said. "If the employee doesn't want to run the two concurrently, then they can go ahead and take 12 weeks of unpaid FMLA and then they can take their five weeks of vacation after that, and that is not the case. It is permissible for an employer to require that time to run concurrently. So that's the first mistake I see."
Make sure your policy is abundantly obvious about that so employees don't get upset about that requirement when it's being administered.
Mistake #3: Missing an important caveat about FMLA and paid leave
There is an important exception to the general rule that employers may require an employee to use paid leave during unpaid FMLA leave, one that many employers miss, according to all three attorneys HR Dive spoke with.
"If an employee is on FMLA leave and simultaneously in receipt of a paid benefit, in any amount, FMLA leave is considered paid. When it's paid FMLA, an employer may not require that the employee substitute PTO — but it can permit that," said attorney David Mohl, a principal at the Atlanta office of Jackson Lewis PC.
For example, he said, if short-term disability provides 70% income replacement, an employer cannot require that the employee use PTO (or other paid leave) to make up the difference. If, however, there is a waiting period before that paid benefit kicks in — say, seven days — an employer may require the use of paid leave during that seven days.
Batsch noted that even if the employee is receiving paid time off via a third-party disability plan rather than an employer disability plan, "that's still a situation where you can't require an employee to run their paid time off concurrently with their FMLA time." This was clarified by the Seventh Circuit in a 2007 case (Repa v. Roadway Express, Inc., 477 F.3d 938).
Mistake #4: Forgetting to consider the patchwork of local laws
"The growing number of state and local laws heap a load of additional compliance concerns onto employers," said Nowak. "Not only are there additional considerations for accrual, carryover, and reasons for leave, but these new leave laws tend to provide job-protected leave in situations where the medical condition is not covered by the FMLA. As a result, employers cannot discipline an employee for an absence when he or she is utilizing leave covered by one of these leave laws."
Of course, those laws only make the interactions with FMLA management more complex.
"Paid parental leave policies interact with FMLA and gender discrimination laws," said Mohl. "PPL policies are, of course, a type of paid leave; some operate as a disability benefit."
Paid leave will likely continue to expand in scope in the coming months as more states and cities consider mandating it. Currently, 10 states and about 30 localities guarantee some type of paid sick leave. A number of federal policies have also been proposed, but no movement has been seen at that level yet.
SOURCE: Carsen, J. (27 November 2018) "4 mistakes to avoid at the intersection of FMLA and PTO" (Web Blog Post). Retrieved from https://www.hrdive.com/news/4-mistakes-to-avoid-at-the-intersection-of-fmla-and-pto/542962/
More pay? Nah. Employees prefer benefits
A new report by the Institute of CPAs revealed that workers would choose a job that offers benefits over a job that offers 30 percent more salary but does not offer benefits. Read this blog post to learn more.
Workers across the country say you can't put a price on great benefits, according to a new survey.
By a four-to-one margin (80% to 20%), workers would choose a job with benefits over an identical job that offered 30% more salary with no benefits, according to the American Institute of CPAs, which released the results of its 2018 Employee Benefit Report, a poll this spring of 2,026 U.S. adults (1,115 of whom are employed) about their views on workplace benefits.
“A robust benefits package is often a large chunk of total compensation, but it’s the employees' job to make sure they’re taking advantage of it to improve their financial positions and quality of life,” said Greg Anton, chairman of the AICPA’s National CPA Financial Literacy Commission. “Beyond the dollar value of having good benefits, employees gain peace of mind knowing that if they can take a vacation without losing a week’s pay or if they need to see a doctor, they won’t be responsible for the entire cost.”
Employed adults estimated that their benefits represented 40% of their total compensation package, according to the study. The Bureau of Labor Statistics, though, states that benefits average 31.7% of a compensation package. Still, workers in the report see benefits as a vital part of their professional lives.
“Despite overestimating the value of their benefits as part of their total compensation, it is concerning that Americans are not taking full advantage of them,” Anton said. “Imagine how employees would react if they were not 100% confident they could get to all the money in their paycheck. Leaving benefits underutilized should be treated the same way. Americans need to take time to truly understand their benefits and make sure they’re not leaving any money on the table.”
Other notable findings from the report include:
- 63% of employed adults believe that being their own boss is worth more than job security with an employer, while 18% added that they will likely start or continue their own businesses next year.
- Millennials were the most likely generation to believe that being their own boss is worth more than job security. They were also the most likely generation to start their own businesses.
- 88% of employed adults are confident they understood all the benefits available to them when they were initially hired at their current job. However, only 28% are "very confident" they are currently maximizing all of their benefits.
- When asked which workplace benefits would help them best reach their financial goals, 56% of adults said a 401(k) match or health insurance, with 33% citing paid time off and 31% citing a pension.
- Baby boomers favor health insurance and having a 401(k) match more than younger generations, while 54% of baby boomers also prioritized a pension, versus only 16% of millennials.
- Millennials put the highest priority on work-life balance benefits, such as paid time off, flexible work hours, and remote work.
For the full report, visit the AICPA’s 360 Degrees of Financial Literacy site here.
SOURCE: McCabe, S. (3 December 2018) "More pay? Nah. Employees prefer benefits" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/workers-prefer-benefits-over-more-pay?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
New resource offers guidance on digital tools for diabetes management
The market for digital diabetes management tools is continuing to mature. Read this blog post for the Northeast Business Group on Health’s updated guide on diabetes management tools.
The Northeast Business Group on Health has updated its “Digital Tools and Solutions for Diabetes: An Employer’s Guide,” to include both enhanced and new solutions—and promising future innovations—to help employers help their workers better manage their diabetes, lower costs and ultimately save more lives.
“Employers are well aware of the costs associated with diabetes in their employee and dependent populations—they continue to indicate this is a top concern and are increasingly aware of the links between diabetes and other chronic and debilitating health conditions, including cardiovascular disease,” says Candice Sherman, CEO of NEBGH.
The market for digital diabetes prevention and management solutions continues to mature since the group published its first guide in 2016, Sherman says. The updated guide provides a detailed checklist of the features and functionalities of the digital tools available now to manage diabetes, as well as information on several unique and innovative digital diabetes solutions that are being targeted to employers but were not part of NEBGH’s research, including Proteus Discover, BlueLoop and do-it-yourself programs.
“Proteus Discover is comprised of ingestible sensors, a small wearable sensor patch, an application on a mobile device and a provider portal,” the guide cites the provider. “Once activated, Proteus Discover unlocks never-before-seen insight into patient health patterns and medication treatment effectiveness, leading to more informed healthcare decisions for everyone involved.”
“BlueLoop is the one and only tool that allows kids and their caregivers to log and share diabetes information—both online and with the app—in real time, via instant e-mail and text message, giving peace of mind to parents,more class time for students and fewer phone calls and paper logs for school nurses,” the provider tells NEBGH. “Online, parents can share real-time BG logs with their clinicians, who can see logs (in the format they prefer), current dosages and reports, all in one place.”
The guide also hints at promising future innovations:
“Technology is constantly evolving: by connecting sensors, wearables and apps, it is increasingly possible to pool and leverage data in innovative ways to provide timely interventions so that people with diabetes can be truly independent and effectively self-manage their care,” the authors write.
The guide lists a hypothetical scenario: A person with diabetes enters a restaurant where a GPS sensor identifies the location, reviews the menu and proposes the best choices based on caloric and carbohydrate content. The technology also proposes and delivers a rapidly acting insulin bolus dose based on the person’s exercise level that day and prior experiences when eating similar meals.
Also included are key questions for employers considering implementing digital diabetes tools or solutions, including:
- What does the company want to achieve with a digital tool?
- How much is the company willing to pay?
- How will success be measured?
- How will digital solutions and tools be marketed to employees and their families?
- What privacy issues need to be addressed when tools or solutions are implemented?
“Digital health tools hold the promise of improved health outcomes and reduced health care expenses through improved engagement, better collaboration and sustained behavior change,” says Mark Cunningham-Hill, NEBGH’s medical director. “However, digital diabetes solutions are not a panacea. Employers will need to address several obstacles such as the difficulty of recruitment and enrollment, lack of sustained employee engagement and the cost of deployment of digital solutions. This can be accomplished through careful planning and learning from other employers that have successfully implemented these tools.”
SOURCE: Kuehner-Hebert, K. (4 December 2018) "New resource offers guidance on digital tools for diabetes management" (Web Blog Post). Retrieved from https://www.benefitspro.com/2018/12/04/new-resource-digital-tools-for-diabetes-management/
Association Health Plans Meet the 2018 Form M-1
The Employee Benefits Security Administration (EBSA) recently released the 2018 version of the Form M-1. Read this blog post for more information about the new Form M-1.
The Employee Benefits Security Administration (EBSA) is continuing to do what it can to help bring the new class of association health plans (AHPs) to life.
EBSA, an arm of the U.S. Department of Labor, unveiled the 2018 version of the Form M-1 Monday.
Administrators of multiple employer welfare arrangements (MEWAs) that provide medical benefits use Form M-1 to report on the MEWAs’ operations to the DOL.
The administration of President Donald Trump completed work on major new AHP regulations in June. The administration is hoping small employers will use the new AHPs to shield themselves from some state and federal mandates and to get a chance to benefit from being part of a large coverage buyer.
Any AHPs out there, including any AHPs formed under the new regulations, will need to file the 2018 Form M-1 with the Labor Department, EBSA said Monday.
An AHP, or other MEWA, can use Form M-1 both to register a new plan and to file the annual report for an in-force plan.
The 2018 annual report for an AHP or other MEWA in operation now will be due March 1, 2019.
If agents, brokers, benefit plan administrators or other financial professionals are trying to start AHPs, they are supposed to use Form M-1 to register the AHPs at least 30 days before engaging in any AHP activity.
“Such activities include, but are not limited to, marketing, soliciting, providing, or offering to provide medical care benefits to employers or employees who may participate in the AHP,” EBSA officials said in the form release announcement.
Resources
Links to AHP information, including information about the 2018 Form M-1, are available here.
SOURCE: Bell, A. (4 December 2018) "Association Health Plans Meet the 2018 Form M-1" (Web Blog Post). Retrieved from https://www.thinkadvisor.com/2018/12/04/association-health-plans-meet-the-2018-form-m-1/
4 trends in employee wellness programs for 2019
Employee wellness programs will be impacted by intelligent personalization, social recognition, virtual wellness and smarter analytics, according to a white paper by MediKeeper. Read on to learn more.
Employee wellness programs will likely be transformed in the coming year by intelligent personalization, social recognition, virtual wellness and smarter analytics, according to MediKeeper’s white paper, “Four Emerging Employee Wellness Trends for 2019.”
“Embracing change and knowing what organizations need to keep driving wellness offerings forward in the next few years will help them lay the groundwork for building stronger employee wellness programs and increasing employee engagement,” says MediKeeper’s CEO David Ashworth. “With health care costs on the rise, companies that pay attention to these key trends will have the greatest success investing in their employees’ overall well-being.”
Intelligent Personalization
Intelligent personalization allows companies to make more informed decisions based on understanding risks and their causes and identifying what is driving present and future cost, according to the white paper.
“Every person is different, so it only makes sense that everyone’s wellness portal experience should also be different — this includes personalization, targeted messages and offerings.,” the authors write. “Adding business intelligence/data mining capabilities delivers the ability to take data captured within the portal, manipulate it, segment it and merge with other sets of data to perform complex associations all within each population groups’ administration portal will be the key to truly managing the population’s health.”
Social Recognition
In the coming year, workplace wellness programs will also implement a multitude of ways to include social recognition that fosters a team-oriented atmosphere intended to encourage people to perform to the best of their abilities, according to the white paper.
“Through social recognition, which can include posting, sharing, commenting and other virtual interactions, employees can help motivate each other to reach their goals,” the authors write. “These interactions foster both a competitive and team-oriented atmosphere that encourages people to perform to the best of their abilities.”
In addition to support from coworkers, managers can also promote their employees’ achievements by offering praise in an online public forum or even further boost morale by handing out incentive points that can be redeemed for tangible rewards.
Virtual Wellness Programming
In 2019, the importance of offering virtual wellness programming will grow as more employees work remotely or set flexible hours, according to the white paper.
“Since employees may work variable hours or work in several locations around the world, it simply doesn’t make sense to solely rely on lunchtime health seminars that may not be accessible to much of the workforce,” the authors write. “Instead of providing physical classes, consider hosting virtual programs that can be viewed at any time or any place. By making your wellness program available online, you’re able to reach a broader audience and make more of an impact within the entire working population.”
Smarter Analytics
Smarter analytics will also be at the forefront in 2019, according to the white paper.
“Now you can generate reports targeted specifically to the information that you are seeking, as well as layering various reports including biometrics, incentives, health risk assessments and challenges, to see what is working and what is not,” the authors write. “You can use these results to inform and better customize the intelligent personalization side of your wellness program. You’ll also be able to send messages from the reports, making them actionable instead of just informative.”
As employers continue to evaluate the effectiveness of their wellness programs, they should keep these four emerging trends in mind in order to ensure that their business is providing all the tools necessary to keep their employees both happy and healthy, according to the white paper.
“Remember that just because you’ve seen success in the past, you can’t just sit back and relax now,” the authors write. “Continual advances in wellness technology mean that you need to stay on top of the trends and adjust frequently in order to remain relevant in an increasingly competitive workplace environment.”
SOURCE: Kuehner-Hebert, K. (28 November 2018) "4 trends in employee wellness programs for 2019" (Web Blog Post). Retrieved from https://www.benefitspro.com/2018/11/28/4-trends-in-employee-wellness-programs-for-2019/
Peer Support Strengthens Mental Health Offerings
Are you considering providing workplace peer-support programs to your employees? Peer-support programs serve as an outreach for employees who are struggling with mental and emotional health problems. Read on to learn more.
In workplace peer-support programs, employees are encouraged to talk to their co-workers before personal issues cascade out of control.
In peer support, employees who have experienced mental and emotional health challenges and learned to manage them help co-workers who are facing similar issues. It isn't meant to replace professional therapy but instead serves as an outreach to those who are struggling. Peers let their co-workers know they're not alone in dealing with mental and emotional health problems and encourage them to take advantage of counseling through an employee assistance program (EAP). Peers also provide ongoing support as employees work to resolve addiction, depression and other issues.
That's good for employees and good for the company, said Mike Weiner, EAP director for global consultancy EY, where peer counseling has proved successful. "It means people are more comfortable getting the care they perhaps had been uncomfortable reaching out for previously."
Two years ago, when the company introduced the peer-support program, it hoped for "a boost in people calling the employee assistance program to get support, and that's exactly what has happened," Weiner said.
EY is not alone. Other companies are creating peer-support systems for their workers.
"We have increased our EAP utilization and have decreased our sick leave, both short and long-term, related to mental health cases," said Lyne Wilson, assistant vice president for talent management at Nav Canada, a not-for-profit corporation that runs Canada's civil air navigation system. "There are employees who are at work today who [otherwise] would have gone out on sick leave, and we were able to prevent that."
Another Source of Support
Stéphane Grenier had served in the Canadian army for 29 years and was dealing with post-traumatic stress disorder and depression when a colleague's offer to talk opened the floodgates of inspiration. Grenier is the founder of Ottawa, Ontario-based consultancy Mental Health Innovations (MHI) and a past member of the Mental Health Commission of Canada.
Peer support at the worksite can help with issues that are no less debilitating just because they're common. "When you are getting a divorce, you are struggling emotionally. That is a mental health challenge," Grenier said.
As helpful as peer support can be, however, it should be considered part of an overall mental health benefits package that includes clinical expertise, he pointed out.
In the past two decades, large employers in the United States and Canada have "availed themselves of good employee assistance programs," Grenier said. Peer support "fast-tracks employees into the hands of care providers when they need it to ensure they get the best support available."
The problem is, he added, "people do not recover in their clinicians' office." In addition to health care and counseling with a professional therapist, "the third leg is to actually support people through the recovery process."
Nav Canada, an MHI client, launched a peer-support program called Light the Way in 2012. EY began its program, originally called r u ok?, in 2016. Other organizations contemplating peer support might look to these employers and their programs for best practices.
A Wider Scope
About a year ago, EY expanded its peer-support program beyond addiction and clinically designated mental illness (such as depression and anxiety) to cover emotional challenges, and it rebranded the program as We Care, Weiner said.
"We saw the rebranding as an opportunity to broaden the scope, and so we talk about issues like sleep, relationships and challenges that come up in the workplace," Weiner said the effort led to a 45 percent increase in calls to the EAP.
"That's a good thing," he said. "It doesn't mean there are more issues; it means people are more comfortable getting care."
Employers can customize the peer-support approach to fit their culture. In Nav Canada's case, trained employees who have gone through similar challenges provide support either in person or through a variety of communication technologies, Wilson said. The Nav Canada intranet includes contact and biographical information on each of the company's peer supporters.
"The description of their experience is written in their own words―whether they went through a marriage breakdown, child custody issues or whatever they dealt with," Wilson noted. "They struggled through that period of time, but they made it through and things are better for them."
Someone going through something similar can text or e-mail a supporter or, if they are in the same building, "just talk over coffee, and the peer supporter may just listen or may refer them to the EAP or a clinical professional, depending on the situation," Wilson explained.
At EY, employees companywide are trained to recognize when a colleague might be dealing with an emotional or mental health issue, and they are encouraged to act, such as by telling the colleague how the EAP can help, Weiner said.
He recognized that some might regard such action as "intrusive" and emphasized that peer supporters are instructed to be respectful.
Nav Canada convenes its 50 peer-support volunteers, divided into seven regions nationwide, at its Cornwall, Ontario, training center for a couple days every year to teach effective ways to reach out to colleagues and what is and isn't appropriate.
Worth the Cost
Annual costs for a company of 2,000 to contract with MHI to launch a peer-support program amounts to "a middle manager's salary," Grenier said.
Calculating whether a peer-support program is worth the cost is not an easy dollars-and-cents equation, however.
"I know [return on investment] comes up," Weiner said. "What's most important to me is that people are using the services. If people are getting help through the employee assistance program, that means they are getting help proactively before there is a very serious issue."
"You don't know what you're preventing," Wilson said. "It is an investment in creating a healthy [and] an engaged workforce."
"Anyone can implement this kind of program," Weiner added. "This is all on a voluntary basis; employees do this because they want to. The size of the program may be smaller at a smaller company, but anyone can do it."
SOURCE: Goth, G. (29 November 2018) "Peer Support Strengthens Mental Health Offerings" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/peer-support-strengthens-mental-health-offerings.aspx/
How to make on-demand fitness work for wellness
Does your business offer on-demand, virtual fitness to their employees? This new technology is making it easier for people to engage in physical activity. Continue reading to learn more.
The way we work out is changing. Technology makes it possible to watch movies, order meals, even rent bikes on our own terms, and people increasingly expect their fitness options to be just as easy. Enter on-demand, virtual fitness.
The demand for virtual fitness is booming. In the United States alone, the virtual fitness market is expected to reach $2.6 billion by 2022. Whether people are too intimidated to go to the gym, have difficulty finding time in their schedules to attend a class, or have difficulty finding classes that fit their needs — virtual fitness makes it easy for them to engage over time.
As a result, more employers are realizing the value of investing in employee health and the benefits of keeping employees physically active. Lack of physical activity contributes to numerous health risks, which can lead to increased healthcare costs and lost productivity. Physical activity has also been found to have a positive impact on mental health and well-being. For example, it’s been estimated that employees who are in poor health are twice as likely as their healthier coworkers to be disengaged from work.
On-demand, virtual fitness is an option that can be more affordable than establishing an on-site gym, and with 35% of employees working remotely, on-demand fitness allows employers to offer the workouts to more employees.
As would-be fitness fanatics increasingly turn to apps to help tone their abs, what should employers know to ensure success? Here are a few strategies.
1. Make it personal. It’s a simple concept: People will be more likely to exercise if they find a workout that appeals to them. The best on-demand options offer classes for a wide range of interests — from cycling to yoga to kickboxing, to mom-and-baby fitness or simple stretching.
2. Make it flexible. People come in all shapes, sizes, and fitness levels. Make sure classes work even if your employees aren’t super fit. Even better, look for something that offers users a natural progression from wherever they start to higher levels of fitness.
3. Make it accessible. The whole point of virtual fitness is that people can take part anytime and anywhere. Look for programming that makes classes available online from a desktop or laptop computer and on both Android and iOS-based smartphones or tablets. This allows employers to make fitness available during lunchtime in the break room, while also giving employees access to short exercises they can do during a break at their desks or even on the road.
4. Make it trackable. Virtual fitness programming can be integrated into your benefits portal to allow for tracking of wellness incentive points. This encourages employees to track their progress and to create a virtual community that encourages the success of all its members.
Today’s workforce is tech-savvy, and that dynamic is only going to become more prevalent. Using mobile devices or apps to give employees what they need to balance life and work will continue to be a smart move for employers.
SOURCE: Von Bank, J. (30 November 2018) "How to make on-demand fitness work for wellness" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/tips-to-make-on-demand-fitness-work-for-your-wellness-program?brief=00000152-146e-d1cc-a5fa-7cff8fee0000
Who let the dogs in? More companies are welcoming pets
More and more companies are welcoming pets. Seven percent of employers are now allowing employees to bring their pets to work. Read this blog post to learn more about setting up pet-friendly policies.
The list is growing of companies that now have bring your dog to work “paw-licies.” Is yours next?
Google, Zappos and Amazon are some big companies that are pet-friendly, but smaller businesses are going to the dogs too, adding to the now 7% of employers that permit pets.
‘Ruff’ day? Take your dog to work
For example, electronics maker Crutchfield Corp. has a dog-friendly office, which the company says reduces stress.
Walking a dog helps to keep its owner fit, says Adrienne Webster, HR VP, Carfax, another pet-friendly company. But she adds that her employees are responsible for making sure their pets are well behaved.
Many companies implement policies that stipulate dogs need to be healthy, clean and up-to-date on vaccinations.
Dog-friendly office? ‘Paws’ for a foolproof pet policy
If you’re not quite ready to let the dogs in on a full-time basis, you might “paws” to allow your folks’ four-legged friends to sit, stay and play for a day, and see how it works out.
“Policies around bringing pets to work should be clear,” says employment attorney Karen Michael. “To be successful, careful attention and respect for all employees must be considered.”
Since allowing pets into the workplace creates a whole list of concerns – “from unruly, jumpy, biting, irritating dogs, to those that relieve themselves inside to those that bark and disrupt the workplace,” she urges employers to put certain rules in place:
- Written pet policy that dictates a pet owner’s responsibilities, who’s responsible for animal bites, etc.
- Sign-up calendar (to prevent too many pets at the same time)
- Zero-tolerance policy for bad-behaving pets (barking, biting, etc.)
- Pet-free zone (for those with allergies or a fear of animals)
- Liability insurance (employers might ask workers to get as well)
- Employee discipline (for those who fail to clean up after their pets)
SOURCE: Mucha, R. (30 November 2018) Who let the dogs in? More companies are welcoming pets" (Web Blog Post). Retrieved from https://www.hrmorning.com/who-let-the-dogs-in-more-companies-are-welcoming-pets/
From HSA to 401(k) contribution limits, 11 numbers to know for 2019
Do you offer HSAs, FSAs or 401(k)s to your employees? There are many important numbers companies and employees need to know regarding HSAs, FSAs and 401(k)s. Read this blog post to learn more.
There are a slew of important figures companies and employees need to know regarding health savings accounts, 401(k)s and flexible spending accounts. While the IRS announced HSA changes in May, the agency only recently announced annual changes to FSAs and 401(k)s. From contribution limits to out-of-pocket amounts, here are the figures employers need to know — all of which take effect in January.
$19,000: 401(k) pre-tax contribution limits
$6,000: 401(k) catch-up contribution limit
$6,000: IRA contribution limits
$3,500: Annual HSA contribution limit for individuals
$7,000: HSA contribution limit for family coverage
$1,350: HDHP minimum deductible for individual
$2,700: HDHP minimum deductible for family
$6,750: HDHP maximum out-of-pocket amounts (individual)
$13,500: HDHP maximum out-of-pocket amounts (family)
$1,000: HSA catch-up contributions
$2,700: FSA contribution limit
SOURCE: Mayer, K. (6 December 2018) "From HSA to 401(k) contribution limits, 11 numbers to know for 2019" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/from-hsa-to-401-k-contribution-limits-11-numbers-to-know-for-2019
The benefits issue that costs employers big: Ineligible dependents on company plans
Frequently, roughly 10 percent of enrolled dependents are ineligible for the healthcare programs. Continue reading this blog post to learn more.
Are you paying insurance premiums for people who aren’t qualified to be on your company plan?
For some employers, too often the answer is “yes.”
In our experience, we find that nearly 10% of dependents enrolled in employee health and welfare plans are not eligible to be in the program. And for a company with a couple of hundred employees that spends around $2 million a year on benefits, ineligible dependents can become a significant financial issue.
When employers pay for ineligible dependents, costs increase for them and employees. Unfortunately, it’s an all-too-common issue that employers need a solid strategy to combat.
So how do ineligible dependents get enrolled in the first place? There are a couple of common ways that employers end up paying health insurance premiums for ineligible dependents. The most basic factor is a change in a person’s situation — children pass the age of 26, spouses get jobs, people get divorced, etc. — and the employee is unaware of the need to notify the plan sponsor. Most often, these situations arise because the employer doesn’t have a process in place.
But some situations are more nefarious: An employee mischaracterizes someone as a dependent. They may claim that a nephew is a son, or that they’re still married to an ex-spouse. In either of these situations, the employer loses.
Prevent ineligible dependents with best practices
Prevent paying for ineligible dependents by putting into place best practices that begin when a new employee joins the company.
During onboarding, investigate each potential plan member when the employee applies for insurance coverage. That means seeking documentation — such as marriage certificates and birth certificates — to verify that a person is, in fact, married, or that their kids are their kids and not someone else’s. Following these processes at the outset prevents the awkwardness of having to question employees about their various family relationships. Nobody wants to ask a colleague if the divorce is final yet.
To make it easy for employees to verify everyone’s eligibility, provide access to a portal where they can upload scans or images of relevant documents. This will also make it easier to track—and keep track of—onboarding documents and dependent audits when the time comes.
Once this best practice is established, it’s important to conduct periodic dependent eligibility audits, as required by ERISA. The employer can conduct an audit or hire an external auditor. This decision is usually driven by the size of the workforce.
The most logical time to conduct an audit is during benefit enrollment. Employees are already considering options for the next plan year, and they likely won’t be confused by the need to submit verifying documents. (During this exercise, it’s also a good idea to ask plan participants to verify beneficiaries on employer-provided life insurance.)
Some employers — again, depending on the size of the workforce — will conduct random sample audits of 20-25% of their employee population. Obviously, the larger the sample size, the better. Benefits administration platforms typically streamline this process.
What happens when employers identify an ineligible dependent?
Many employers offer workers an amnesty period during which an employee can come forward to say they have someone that should be taken off the plan. If the plan sponsor identifies an ineligible dependent, employees are typically offered a one-time pass. Then, they must sign an affidavit attesting that they can be terminated if it happens again.
If the employer has processed insurance claims for an ineligible dependent, they can declare fraud and seek back payment of claims payouts. Again, most in this situation prefer a more benevolent approach and will ask the employee to make monthly differential payments until the account is even. Conducting regular dependent eligibility audits as part of the benefits administration process needs to be handled with finesse for the good of organizational culture.
Some employers may shy away from conducting audits out of concern for creating awkward situations. But frankly, it’s the plan sponsor’s job to help them navigate the waters, educate them and keep them engaged in the process by becoming their best advocates. This will not only help enhance the efficiency and accuracy of employee benefit offerings, but it will result in a smoother ride for everyone involved.
Ensuring that a health and welfare benefits program follows eligibility best practices is the responsibility of the plan sponsor. But employees have a share in that responsibility, too.
SOURCE: O'Connor, P.(28 November 2018) "The benefits issue that costs employers big: Ineligible dependents on company plans" (Web Blog Post). Retrieved from: