Payroll and Tax Updates

February 2015

New Bill to Repeal ACA 30-Hour Rule

On January 8, the House of Representatives passed the Save American Workers Bill of 2015 (HR 30), which alters the calculation of full time employees under the Affordable Care Act for purposes of determining employer penalties. Under current ACA legislation, full time employee status is granted to workers who work at least 30 hours per week. This bill would change the definition of full time employees to those who work at least 40 hours per week, thereby reducing the number of employers subject to the employer mandate.

The bill must still be passed by the Senate, and President Obama has vowed to veto the bill should it come to his desk.

BDB will continue to monitor the situation and keep you updated on any developments.

Labor Department Appeals Decision to Vacate Home-Care Rule

An appeal filed Jan. 22 by the Labor Department in federal court challenges recent court rulings that vacated critical elements of the home-care final rule that was to take effect Jan. 1. The federal appeals court ordered the appeal to proceed on an expedited schedule with briefing to be completed by early April.

On Jan.14, U.S. District Court Judge Richard Leon vacated the rule’s revised definition of companionship services and exclusion of third-party employers, such as home-care agencies, from the Fair Labor Standards Act’s direct-care worker exemption from minimum wage and overtime pay requirements.

The status of the final rule, which was to extend FLSA minimum-wage and overtime coverage to certain home-care workers, remains uncertain pending resolution of the appeal.

The lawsuit challenging the final rule was brought by National Association for Home Care and Hospice, the Home Care Association of America and the International Franchise Association.

BDB will continue to monitor the situation and keep you updated.

Illinois to Require Employers to Enroll Employees in Roth IRA

On January 4, 2015 the State of Illinois enacted the Illinois Secure Choice Savings Program, S.B. 2758, requiring Illinois employers with 25 or more employees to automatically enroll their employees in Roth IRA retirement savings accounts. Employers with fewer than 25 employees may volunteer to participate in the program.

The new law goes into effect January 1, 2017 and applies to employers in both the profit and non-profit businesses that have been operating for two years or more and do not currently offer qualified retirement plans such as a 401(k) or 403(b). Employers must automatically enroll their employees in the plan and deduct 3% of Illinois wages as Roth IRA contributions. Employees may choose to opt out of the plan or change their contribution amount. Employers are not required to make contributions but must manage the payroll deductions and deposit employee contributions in the program’s trust fund which will be managed by the state.

For more information please click here.

Illinois Governor Rescinds Minimum Wage Increase

Governor Bruce Rauner of Illinois has stopped former Democratic Governor Pat Quinn’s attempt to raise state minimum wage for state contractors.

With Executive Order 2015–11, Governor Rauner rescinds Quinn’s order to increase the minimum wage for state contract workers from 8.25 per hour to $10.00 per hour.

For a copy of the Executive Order 2015–11 please click here.

For a complete listing of all Federal and state minimum wage laws please click here.


Sexual Harassment Prevention Training for Supervisors Webinar

02/19/2015 1:00PM — 3:00PM EST

HR On-Demand users have access to a complimentary, quarterly Sexual Harassment Prevention Training webinar for Supervisors.

This interactive webinar covers the core topic of sexual harassment prevention and includes information on additional protected category areas, such as race, disability, and sexual orientation.

Developed specifically for supervisors, it meets all state and federal training requirements, including rigorous sexual harassment training standards in California (AB 1825), Connecticut, and Maine.

Sign up for the webinar directly from your HR Support Center home page, or by clicking here.

ACA Compliance Tools Webinar

Our ACA Webinar is still available online to learn more about Employer Obamacare Obligations that began on January 1, 2015 and how to use BDB’s ACA Compliance reports. To listen to the webinar click here.