News from Ollis/Akers/Arney Human Resources Consulting

FTC Proposes Rule to Ban

Noncompete Agreements

On Jan. 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that would ban noncompete clauses in employment agreements. In making its historic announcement, the agency stated that noncompete agreements harm competition; suppress wages for workers, including those not subjected to noncompete clauses; reduce labor mobility; and hamper innovation. According to the FTC, if the proposed rule becomes final, it could increase employee wages by approximately $300 billion per year and expand career opportunities for 30 million American workers.

What Will the Proposed Rule Address?

The agency’s proposed rule is based on a preliminary finding that noncompete clauses constitute unfair competition and, therefore, violate Section 5 of the Federal Trade Commission Act.

Find out more HERE

Prescription Drug Reporting - Grace Period

On Dec. 23, 2022, the Departments of Labor, Health and Human Services released an FAQ stating that, for the 2020 and 2021 data submissions due by Dec. 27, 2022, they will not take enforcement action with respect to any plan or issuer that uses a

good faith, reasonable interpretation

of the regulations and the RxDC reporting instructions in making its submission.

The Departments are also providing a

submission grace period through Jan. 31, 2023, and will not consider a plan or issuer to be out of compliance with these requirements provided that a good faith submission of 2020 and 2021 data ismade on or before that date.

Read Article HERE

EEO-1 Reporting Checklist

The EEO-1 Report is a federally mandated survey that collects workforce demographic data categorized by race, ethnicity, sex and job category. Title VII of the Civil Rights Act (Title VII) requires employers with 100 or more employees and certain federal contractors to report this data to the Equal Employment Opportunity Commission (EEOC) every year.

The data collected by the EEO-1 Report is used by the federal government for a variety of purposes. Although information from individual reports is kept confidential, aggregated data is made available to the public.

This checklist outlines key steps for complying with the EEO-1 reporting requirement.

Get the Checklist HERE

Husch Blackwell Legal Alert HERE

New Federal Protections for Pregnant & Nursing Employees Coming in 2023

The Pregnant Workers Fairness Act (PWFA) gives workers with conditions arising from pregnancy or childbirth the right to reasonable accommodations in the workplace. The Act provides for broader protections than are available to pregnant employees under the Americans with Disabilities Act (ADA)—it requires an employer to provide reasonable accommodation for a known physical or mental condition related to, affected by, or arising out of pregnancy, childbirth or related medical conditions regardless of whether the condition meets the definition of disability under the ADA. It also provides for broader protection than the Pregnancy Discrimination Act.

The PWFA applies to employers with 15 or more employees and to “qualified employees,” meaning an employee or job applicant who can perform the essential functions of the position with or without reasonable accommodation.

Job Openings Fall Slightly - Employee Quits Trend Up

The U.S. Bureau of Labor Statistics (BLS) recently released its November Job Openings and Labor Turnover Summary. This month’s report revealed the number of job openings, 10.5 million, changed little from the previous month as the Federal Reserve continued its efforts to combat inflation. However, November’s job openings were higher than economists expected.

The number of job openings is viewed as an indication of the strength of the labor market and the broader economy. The Fed closely monitors this number since it provides a measure of the tightness of the labor market. A tight labor market means employees have greater leverage to seek higher wages.

“We do see a very, very strong labor market, one where we haven’t seen much softening, where job growth is very high, where wages are very high, vacancies are quite elevated, and, really, there’s an imbalance in the labor market between supply and demand.”

- Federal Reserve Chair Jerome H. Powell

Read News Brief HERE

Congress Extends Pre-deductible Telehealth Coverage

The Consolidated Appropriations Act, 2023 (CAA), which was signed into law on Dec. 29, 2022, extends the ability of high deductible health plans (HDHPs) to provide benefits for telehealth or other remote care services before plan deductibles have been met without jeopardizing health savings account (HSA) eligibility. This extension applies for plan years beginning after Dec. 31, 2022, and before Jan. 1, 2025.

To be eligible for HSA contributions, individuals cannot be covered under a health plan that provides benefits, except preventive care benefits, before the minimum HDHP deductible is satisfied for the year. As a general rule, telehealth programs that provide free or reduced-cost medical benefits before the HDHP deductible is satisfied are disqualifying coverage for purposes of HSA eligibility.

However, effective Jan. 1, 2020, the CARES Act allowed HDHPs to provide benefits for telehealth or other remote care services before plan deductibles were met. This relief applied for plan years beginning before Jan. 1, 2022. A spending bill extended this relief to telehealth services provided in months beginning after March 31, 2022, and before Jan. 1, 2023.

Read More Here

IRS Announces 2023

Standard Mileage Rates

On Dec. 29, 2022, the IRS announced the 2023 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The 2023 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 65.5 cents per mile driven for business use, up three cents from the midyear rate for the second half of 2022;

• 22 cents per mile driven for medical purposes or for moving purposes for qualified active duty members of the Armed Forces, unchanged from the midyear rate for the second half of 2022; and

• 14 cents per mile driven in service of charitable organizations. The rate is set by statute and remains unchanged from 2022.

Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

Update Can Be Found HERE

Today’s remote and hybrid workplaces rely on virtual communication and collaboration. While these arrangements remove much day-to-day interaction, fortunately, technology can enhance relationships and enable meaningful conversations. As employers navigate and compete in the “Great Reshuffle,” intelligent and flexible technology can help rehumanize work.

For example, a software could measure and improve workplace culture, help uncover ways to improve employee work-life balance, or detect and decrease burnout that can lead to employee turnover.

More familiar applications of technology in the workplace include workflow automation software and communication channels. Technology could help dispersed employees build relationships, solve common problems or support decision-making.

Employers interested in introducing workplace technology to their employees can start with steps found in the article HERE .