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 SHRM Home

HR Congressional Monitor

(Interested in state legislation? Click here.)

Bill Number, Title
and Sponsor

Bill Summary

Bill Status

Bill Outlook

       

Employment

     

H.R. 2, the Fair Minimum Wage Act of 2007, sponsored by Representative George Miller (D-CA)

S. 2, the Fair Minimum Wage Act of 2007, sponsored by Senator Harry Reid (D-NV)

The legislation amends the Fair Labor Standards Act to raise the hourly minimum wage by $2.10 in three steps within two years and two months of enactment.

The first wage increase boosted the Federal standard to $5.85 per hour on July 24, 2007. The second step will increase the minimum wage to $6.55 per hour one year after the first increase (July 24, 2008), and the third increase to $7.25 per hour two years after the first increase (July 24, 2009).

H.R. 2 became P.L. 110-28 on May 25, 2007.

H.R. 2 became law on May 25, 2007, as part of H.R. 2206, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007.

H.R. 493, the Genetic Information Nondiscrimination Act of 2007, sponsored by Representative Louise Slaughter (D-NY)

S. 358, the Genetic Information Nondiscrimination Act of 2007, sponsored by Senator Olympia Snowe (R-ME)

The Genetic Information Nondiscrimination Act (GINA) would prohibit discrimination in health insurance and employment on the basis of an individual’s disposition to certain genetic disorders.

To learn more about GINA, please see the May 2008 Insider.

President Bush signed H.R. 493 into law on May 21, 2008. Previously, H.R. 493 passed the Senate by a vote of 95 – 0 on April 24, 2008 and the House of Representatives by a vote of 414 – 1 on May 1, 2008.

H.R. 493 became Public Law on May 21, 2008.

H.R. 800, the Employee Free Choice Act of 2007, sponsored by Representative George Miller (D-CA)

S. 1041, the Employee Free Choice Act of 2007, sponsored by Senator Edward Kennedy (D-MA)

The bill would amend the National Labor Relations Act to change the way workers can choose to become part of a union by requiring the NLRB to certify a union that secures a majority of signatures through a signed authorization card process.

H.R. 800 passed the House of Representatives by a 241-185 vote on March 1, 2007. The Senate failed to invoke cloture (60 votes needed) on the motion to proceed on H.R. 800 by a vote of 51 – 48 on June 26, 2007.

As a separately considered measure, H.R. 800 is effectively dead for the 110th Congress. H.R. 800 failed because it came up nine votes short of the necessary 60 votes to invoke cloture and proceed with debate on the bill. Even if 60 votes were secured and the bill eventually passed the Senate, the White House has indicated the President will veto the legislation.

H.R. 980, the Public Safety Employer-Employee Cooperation Act of 2007, sponsored by Representative Dale Kildee (D-MI)

The legislation would provide collective bargaining rights for public safety officers.

On May 15, 2008, the Senate passed a motion to proceed to consideration of H.R. 980, and then withdrew the motion, effectively putting off consideration of the bill indefinitely. The bill previously passed the House 314 – 97 on July 17, 2007.

The outlook on H.R. 980 is remarkably unclear. While the White House issued a veto threat on the bill on May 13, 2008, both the House and Senate have approved the bill by votes sufficient to override a presidential veto. However, H.R. 980 will remain tabled in the Senate until a compromise can be reached on consideration of amendments to the bill.

H.R. 1540, the Civil Rights Tax Relief Act of 2007, sponsored by Representative John Lewis (D-GA)

H.R. 1540 would make non-economic damage awards of back pay for job-related harassment or discrimination taxable at the rates effective during the years such pay was earned.

H.R. 1540 was introduced in the House of Representatives on March 15, 2007, and has been referred to the Ways and Means Committee.

H.R. 1540 currently has 48 bipartisan cosponsors, but it is not a top-tier priority for the congressional leadership. Previous versions of the bill were introduced in the House and Senate in 2001 and 2003, but none moved out of committee.

S. 910, the Healthy Families Act of 2007, sponsored by Senator Ted Kennedy (D-MA)

H.R. 1542, the Healthy Families Act, sponsored by Representative Rosa DeLauro (D-CT)

The Healthy Families Act requires employers with 15 or more employees to provide seven days of paid sick leave to full-time (30 hours) workers.

H.R. 1542 is identical to the Senate bill.

To read more about SHRM’s position on Workplace Flexibility, click here.

S. 910 has been referred to the Senate Health, Education, Labor, and Pensions (HELP) Committee.

H.R. 1542 has been referred to three House committees, including Education and Labor, Oversight and Government Reform, and Administration. On June 21, 2007, the House Workforce Protections Subcommittee held a hearing on Balancing Work and Family, at which Representative DeLauro testified in support of H.R. 1542

Senator Kennedy, Chairman of the HELP Committee, has indicated S. 910 will be a priority for the committee. The bill currently has 24 cosponsors.

H.R. 1542 currently has 90 cosponsors.

S. 1136, the Survivors’ Empowerment and Economic Security Act, sponsored by Senator Patty Murray (D-WA)

S. 1136 would require employers with 15 or more employees to provide 30 days of job-protected, unpaid leave to employees to address issues relating to domestic violence.

S. 1136 has been referred to the Senate Finance Committee.

The Health, Education, Labor, and Pensions Subcommittee on Employment and Workplace Safety held a hearing on domestic violence in the workplace on April 17, 2007. SHRM testified at the hearing, highlighting several concerns with the practical implementation of the legislation. To read SHRM’s testimony, click here.

The outlook for S. 1136 is unclear at this time, although in previous Congresses, this legislation has been offered as an amendment to federal spending bills in the Senate.

S. 1681, the Family Leave Insurance Act of 2007, sponsored by Senator Christopher Dodd (D-CT)

S. 1681 provides eight weeks of paid leave to employees for leaves permitted under the Family and Medical Leave Act. This would apply to employers with 50 or more workers. Employees, employers and the federal government would finance this benefit program.

S. 1681 was introduced on June 21, 2007, and referred to the Senate Finance Committee.

Because S. 1681 enjoys bipartisan support with Senator Ted Stevens (R-AK) as an original sponsor, it could gain additional support in the Senate.

H.R. 2792, the Family and Medical Leave Inclusion Act, sponsored by Representative Carolyn Maloney (D-NY)

H.R. 2792 would amend the Family and Medical Leave Act to permit leave to care for a same-sex spouse, domestic partner, parent-in-law, adult child, sibling, or grandparent who has a serious health condition.

H.R. 2792 was introduced on June 20, 2007, and has been referred to three House committees, including the Education and Labor Committee.

The outlook for H.R. 2792 is unclear at this time. However, should the Education and Labor Committee hold additional hearings on work/life balance, expansion of the Family and Medical Leave Act could be part of the debate.

S. 1898, the Military Family and Medical Leave Act, sponsored by Senator Clinton (D-NY)

S. 1898 would amend the Family and Medical Leave Act (FMLA) to expand family and medical leave for up to 26 weeks for spouses, sons, daughters, and parents of service members with combat-related injuries.

S. 1898 was introduced on July 30, 2007, and has been referred to the Senate Committee on Health, Education, Labor and Pensions.

Legislation similar to S. 1898 was enacted into law as part of H.R. 4986, the National Defense Authorization Act. P.L. 110-181 allows up to 26 weeks of leave for a spouse, son, daughter, parent or next of kin to care for an injured servicemenber.

H.R 5873, the Family Leave Insurance Act of 2008, sponsored by Representative Pete Stark (D-CA)

H.R. 5873 provides up to 12 weeks of paid leave for birth, adoption or foster care placement of a child; to care for a child, parent, spouse, domestic partner, grandchild, grandparent or sibling with a serious health condition; for the employee’s own serious health condition; or because of any qualifying exigency arising from a family member’s call to active duty; or to care for an injured servicemember. Employers with two or more employees would be covered. Employees would be eligible for the paid leave after 625 hours of work in the preceding six months with his/her current employer.

H.R. 5873 has been referred to three House committees.

While action on H.R. 5873 is unlikely in the 110th Congress, paid FMLA leave bills are likely to garner additional support and attention in the next Congress.

H.R. 4301, the Working Families Flexibility Act, sponsored by Representative Carolyn Maloney (D-NY)

S. 2419, the Working Families Flexibility Act, sponsored by Senator Ted Kennedy (D-MA)

H.R 4301 authorizes an employee to request from an employer a change in the terms or conditions of the employee's employment if the request relates to: (1) the number of hours the employee is required to work; (2) the times when the employee is required to work; or (3) where the employee is required to work. Employers with 15 or more employees would be covered under H.R. 4301. Requires the employer within 14 days of receiving the request to respond to the employee with his/her decision. If the request is denied, the employer must provide the reasons for the denial. Denial may be based on cost, size of the employer, and the impact on the customer. Back pay and civil penalties would be available for violations.

Allows employee to request a meeting with the employer to appeal the decision and to have a representative of the employee present at the meeting

S. 2419 is identical to H.R. 4301.

H.R. 4301 was introduced on December 6, 2007, and has been referred to four House committees.

S. 2419 was introduced on December 6, 2007, and referred to the Health, Education, Labor and Pensions Committee.

It is unlikely this legislation will see action in the 110th Congress, but it could factor in the debate about flexible workplaces in future Congresses.

H.R. 6025, the Family-Friendly Workplace Act, sponsored by Representative Cathy McMorris Rodgers (R-WA)

H.R. 6025 would amend the Fair Labor Standards Act to allow private sector employees to elect paid time off as compensation for working overtime hours. Compensatory time would accrue at one-and-one-half times the regular rate of pay for each hour worked over 40 in a seven-day period.

H.R. 6025 was introduced on May 13, 2008, and referred to the House Education and Labor Committee.

Although similar “comp time” legislation has advanced in past Congresses, action on H.R. 6025 is highly unlikely in the 110th Congress.

H.R. 1338, the Paycheck Fairness Act, sponsored by Representative Rosa DeLauro (D-CT)

S. 766, the Paycheck Fairness Act, sponsored by Senator Hillary Clinton (D-NY)

The bill would amend the Fair Labor Standards Act of 1938 to provide new remedies of victims of discrimination in the payment of wages on the basis of sex.

Both H.R. 1338 and S. 766 were introduced on March 6, 2007. H.R. 1338 has been referred to the House Education and Labor Committee. S. 766 has been referred to the Senate Health, Education, Labor and Pensions Committee.

The Paycheck Fairness Act has garnered support from a majority of congressional Democrats, as the House bill boasts 225 cosponsors and the Senate bill has 22 cosponsors. The House Workforce Protections Subcommittee held a hearing on H.R. 1338 on July 11, 2007.

H.R. 1644, the Re-Empowerment of Skilled and Professional Construction Tradesworkers (RESPECT) Act, sponsored by Representative Robert Andrews (D-NJ)

S. 969, the Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers (RESPECT) Act, sponsored by Senator Christopher Dodd (D-CT)

The bill would amend the National Labor Relations Act (NLRA) to redefine the term “supervisor”. The bill would take out the phrases “assign” and “responsibility to direct” from the duties associated with a supervisor under the NLRA, and dictate that an employee cannot be classified as a supervisor unless the employee engages in managerial duties “for a majority of the individual's worktime.” The “RESPECT Act,” is a legislative response to the National Labor Relations Board’s October 2006 ruling in Oakwood Healthcare Inc., the lead case of three NLRB rulings that have since been referred to as the “Kentucky River” cases because in NLRB v. Kentucky River Community Care (2001), the U.S. Supreme Court directed the NLRB to create a new standard for determining who can be categorized as a “supervisor” under the NLRA.

The House Education and Labor Committee reported H.R. 1644 by a vote of 26 – 20 on September 19, 2007. Previously, the House Education and Labor Subcommittee on Health, Employment, Labor and Pensions considered H.R. 1644 at a May 8, 2007 hearing, at which SHRM testified. Both H.R. 1644 and S. 969 were introduced in the House and Senate, respectively, on March 22, 2007.

There was good reason to believe the RESPECT Act might be among the House’s early priorities in 2008, but it has slipped. Passage by one or both houses of Congress this year is still possible, but it would likely result in a veto by the White House. The House bill currently features 161 cosponsors, and the Senate bill has 31 cosponsors.

S. 2044, Independent Contractor Proper Classification Act of 2007, sponsored by Senator Obama (D-IL)

The bill would no longer allow employers to use industry practice as a reasonable basis for not treating a worker as an employee, and would prohibit employers from receiving employment tax relief for any worker who the IRS has determined should have been classified as an employee. In addition, the bill allows a worker to petition the IRS for a determination of his or her status. For more information, see the October Insider.

The bill was introduced on September 12, 2007 and referred to the Senate Finance Committee.

SHRM testified at one of two hearings that House committees held on the issue of intentional worker misclassification. This is the first piece of legislation on the matter and it is unclear whether its focus will satisfy the members of Congress who have been exploring the issue.

H.R. 5804, the Taxpayer Responsibility, Accountability, and Consistency Act of 2008, sponsored by Representative Jim McDermott (D-WA)

H.R. 5804 would amend the Internal Revenue Code of 1986 to modify the rules relating to the tax treatment of individuals as independent contractors or employees.

The bill was introduced on April 15, 2008.

H.R. 5804, which addresses the classification of independent contractors for tax purposes, is supported by labor organizations and has 30 cosponsors. It is a bill to watch in 2009, though it likely will not garner much attention this year.

H.R. 3685, the Employment Non-Discrimination Act of 2007 (ENDA), sponsored by Representative Barney Frank (D-MA)

The bill would prohibit employment discrimination on the basis of sexual orientation.

H.R. 3685 was passed by the House by a vote of 235 – 184 on November 7, 2007. H.R. 3685 was reported by the Committee on Education and Labor on October 22, 2007 and was originally introduced on September 27, 2007.

Senate Health, Education, Labor and Pensions Chairman Edward Kennedy (D-MA) said he would bring up the House-passed bill in the Senate in 2008. In October 2007, the White House issued a veto statement on H.R. 3685 based on constitutional concerns.

H.R. 3686, a bill to prohibit employment discrimination based on gender identity, sponsored by Representative Barney Frank (D-MA)

The bill would prohibit employment discrimination based on gender identity.

H.R. 3686 was introduced on September 27, 2007, and has been referred to four House committees.

Due to the advancement of H.R. 3685, H.R. 3686 will not likely be considered as a standalone measure. But proponents of H.R. 3686 continue to press for the inclusion of gender identity provisions in an ultimate Employment Non-Discrimination Act. H.R. 3686 was introduced on September 27, 2007.

H.R. 2831, the Ledbetter Fair Pay Act of 2007, sponsored by Representative George Miller (D-CA)

S. 1843, the Fair Pay Restoration Act of 2007, sponsored by Senator Edward Kennedy (D-MA)

Both bills would clarify that a discriminatory compensation decision occurs each time compensation is paid, not when a supervisor establishes the compensation rate. The legislation would effectively nullify the U.S. Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co., and allow “affected” persons to file discrimination charges on behalf of an aggrieved person.

By a 56-42 vote, the Senate failed to reach the 60 votes necessary to invoke cloture and defeat a Republican-led filibuster on the House-passed H.R. 2831. Prior to the Senate vote, H.R. 2831 was passed by the House of Representatives by a vote of 225-199 on July 31, 2007. The bill was reported by the House Education and Labor Committee by a vote of 25 – 20 on June 27, 2007.

The legislation was affectively killed for 2008 when the Senate failed to invoke cloture. The White House issued a veto threat on the legislation in July 2007.

H.R. 3195, the ADA Restoration Act of 2007, sponsored by Representative Steny Hoyer (D-MD)

S. 1881, the Americans with Disabilities Act Restoration Act of 2007, sponsored by Senator Tom Harkin (D-IA)

The bill would amend the Americans with Disabilities Act of 1990 to change the definition of “disability” from “a physical or mental impairment that substantially limits one or more major life activities” to “a physical or mental impairment.” The bill would also redefine the terms “mental impairment” and “physical impairment.”

Both bills were introduced on July 26, 2007.

Both bills were introduced with significant bipartisan support. But without support from the business community, it will be very difficult to pass the ADA Restoration Act through Congress in the short term. The House Education and Labor Committee held a hearing on the legislation in January 2008.

H.R. 3010, Arbitration Fairness Act of 2007, sponsored by Representative Henry C. Johnson, Jr. (D-GA)

S. 1782, Arbitration Fairness Act of 2007, sponsored by Senator Russell Feingold (D-WI)

The bill would restrict pre-dispute agreements that require arbitration in consumer, employment, or franchise disputes.

Both bills were introduced on July 12, 2007. The Senate Subcommittee on the Constitution held a hearing on S. 1782 on December 12, 2007. The issue of arbitration was highlighted at a February 12, 2008 hearing of the House Education and Labor Health, Employment, Labor, and Pensions Subcommittee on workplace discrimination.

The House bill has 91 cosponsors, and the Senate bill has 6 cosponsors. But in this complex and polarizing area of employment policy, there is little chance of this legislation becoming law in 2008.

H.R. 3796, Early Warning and Health Care for Workers Affected by Globalization Act, sponsored by Representative George Miller (D-CA)

The bill would lengthen the advance written notice requirement under the Worker Adjustment and Retraining Notification (WARN) Act to 90 from 60 days in the event that an employer or government agency orders a plant closing or mass layoff. This requirement would be triggered when 50 or more full or part-time employees are affected.

The House passed the legislation as part of H.R. 3920, the Trade and Globalization Assistance Act of 2007 on October 31, 2007. Prior to House passage, the House Committee on Education and Labor reported H.R. 3796 on October 25, 2007.

Prospects in the Senate for H.R. 3796 are murky since the bill was attached to a larger trade measure. SHRM sent a letter to the House Education and Labor Committee expressing concerns that the bill would be an unwarranted expansion of the WARN Act and cause serious challenges for HR professionals in large and small organizations. Furthermore, the White House has issued a veto statement on the legislation.

H.R. 5129, the Civil Rights Act of 2008, sponsored by Representative John Lewis (D-GA)

S. 2554, the Civil Rights Act of 2008, introduced by Senator Edward Kennedy (D-MA)

The Civil Rights Act of 2008 is a wide-ranging bill that would, in the employment context, overturn or modify several U.S. Supreme Court decisions, give state employees the right to sue for damages for alleged age discrimination or overtime pay violations, curtail use of mandatory arbitration clauses in individual employment contracts, and eliminate the damages cap in cases under Title VII of the Civil Rights Act of 1964.

H.R. 5129 was introduced on January 23, 2008 and has 31 cosponsors. S. 2554 was introduced on January 24, 2008 and features 19 cosponsors.

Components of this legislation can be found in standalone legislative measures, such as the Arbitration Fairness Act of 2007 and the Paycheck Fairness Act. In 2009, depending on the makeup of Congress and the White House, the Civil Rights Act of 2008 may be taken up as a whole, or it s provisions may be separately considered.

Health Care

     

H.R. 298, the Flexible Spending Accounts Growth and Opportunities Act of 2007, sponsored by Representative Carolyn McCarthy (D-NY)

H.R. 298 would allow up to $1,000 in unused funds in a health Flexible Spending Account to carry over to the following year.

H.R. 298 has been referred to the House Ways and Means Committee.

There has been strong bipartisan support for FSA rollover legislation in past congresses, but the estimated cost of the proposal has prevented it from becoming law. H.R. 298 is likely to suffer the same fate.

H.R. 506, the Health Partnership Through Creative Federalism Act, sponsored by Representative Tammy Baldwin (D-WI)

H.R. 506 authorizes grants for states to provide health care coverage to the uninsured. Specifically, the bill establishes a State Health Innovation Commission, which would make recommendations to Congress in terms of which proposals should receive a federal grant. Congress would then determine whether or not to fund the initiative.

This legislation has been jointly referred to the House Energy and Commerce and Rules Committee.

H.R. 506 has bipartisan support in the House with 78 cosponsors.

S. 334, the Healthy Americans Act, sponsored by Senator Ron Wyden (D-OR)

The Healthy Americans Act provides for comprehensive health care reform by requiring all individuals to purchase health insurance. Federal subsidies would be given to low-income Americans to buy health insurance. The bill also includes an employer mandate, requiring employers to make “Employer Shared Responsibility (ESR) Payments,” which would be based on the number of full time employees.

To learn more about the Healthy Americans Act, read the February Insider.

S. 334 has been referred to the Senate Finance Committee.

Given the complexity of this bill, and the fact that there is no clear consensus on the best approach for reforming the health care system, it is unlikely S. 334 would be enacted during the 110th Congress. However, the Senate may consider specific provisions of the bill and certain elements of the bill could also be part of the larger health care debate leading up to the 2008 presidential election.

S. 558, the Mental Health Parity Act of 2007, sponsored by Senator Pete Domenici (R-NM)

S. 558 requires employers who offer mental health coverage to provide parity between mental health and physical health coverage.  Under the bill, if a group health plan with 50 or more employees included mental health benefits, the financial requirements (deductibles, co-payments, coinsurance) and treatment limitations (frequency of treatment, number of visits, days of coverage) must not be any more restrictive than the financial requirements and treatment limitations for medical and surgical benefits.

The U.S. Senate passed S. 558 by unanimous consent on September 18, 2007.

With passage of mental health parity legislation in both the House and Senate, sponsors of the bills are now working to resolve differences between the two bills.

H.R. 1424, the Paul Wellstone Mental Health and Addiction Equity Act of 2007, sponsored by Representative Patrick Kennedy (D-RI)

The bill expands the Mental Health Parity Act of 1996 by requiring group health plans that offer benefits for mental health and addiction to do so on the same terms as care for other diseases. H.R. 1424 is more expansive than the Senate bill. To learn more about the differences between the two bills, see the August

Insider.

H.R. 1424 passed the House of Representatives on March 5, 2008, by a vote of 268-148.

With passage of mental health parity legislation in both the House and Senate, sponsors of the bills are now working to resolve differences between the two bills.

S. 1693, the Wired for Health Care Quality Act, sponsored by Senator Ted Kennedy (D-MA)

S. 1693 provides for the development of an interoperable health information network to allow health care information to be securely transmitted and stored.

The Senate Health, Education, Labor and Pensions Committee favorably reported S. 1693 on June 27, 2007. The bill is now waiting action by the full Senate.

Given the bipartisan sponsorship of this legislation, including Senators Clinton (D-NY), Kennedy (D-MA), Enzi (WY), and Hatch (R-UT), S. 1693 is one health care bill that has a strong chance of being enacted in the 110th Congress.

Immigration

     

S. 1639,

Comprehensive Immigration Reform

H.R. 1645, the Security Through Regularized Immigration and a Vibrant Economy (STRIVE) Act of 2007, sponsored by Representative Luis Gutierrez (D-IL)

The bill is a comprehensive immigration reform proposal which would make significant changes to the Immigration Nationality Act. These changes include enhancing border security, creating a low-skilled guest worker program, developing a merit-based program for high-skilled immigrants as well as taking steps to create electronic employment verification system.

H.R. 1645 is similar to S.1639

By passing the regular committee process, S.1639 was introduced in early June and immediately considered on the Senate floor. The bill was pulled from consideration as the U. S. Senate was unable to obtain cloture on the legislation on June 28.

Introduced on March 22, H.R. 1645 has been referred to two House committees including Judiciary and Homeland Security.

While outlook for bipartisan comprehensive immigration reform looked fairly strong at the beginning of the 110th congressional term, prospects now look bleak. However, interest in passing “rifle” shot immigration measures for border security and high immigration remain a possibility.

H.R. 4088, the Secure America Through Verification and Enforcement Act of 2007, sponsored by Representative Heath Shuler (D-NC)

S. 2368, the Secure America Through Verification and Enforcement Act of 2007, sponsored by Senator Mark Pryor (D-AR)

This legislation, known as the SAVE Act, is a far-reaching national immigration reform bill. Most important to HR professionals, it would require all domestic employers to use the Department of Homeland Security’s E-Verify electronic verification system to account for the legal status of both newly hired employees and current employees within four years.

H.R. 4088 was introduced on November 6, 2007.

S. 2368 was introduced on November 15, 2007.

Despite the polarization of immigration-related politics, the House bill features 152 bipartisan cosponsors and the Senate bill has another 9 cosponsors. The SAVE Act is also the subject of a discharge petition that 188 House members have signed. But such support is not surprising – in many ways, the SAVE Act is similar to the Border Protection, Antiterrorism, and Illegal Immigration Control Act of 2005, the immigration reform measure passed by the House in December 2005.

H.R. 5515, the New Employee Verification Act of 2008, sponsored by Representative Sam Johnson (R-TX)

The New Employee Verification Act (NEVA) would amend the Immigration and Nationality Act to require employers to verify employee identification and employment eligibility through a paperless Electronic Employment Verification System (EEVS). EEVS would replace the current paper-based, I-9 work status verification process. In addition, the legislation would create an alternate, voluntary Secure Electronic Employment Verification System (SEEVS) to verify employees’ identity.

H.R. 5515 was introduced on introduced February 28, 2008.

The bill has 32 bipartisan cosponsors. NEVA was the subject of a House Ways and Means Subcommittee on Social Security hearing on Employment Eligibility Verification Systems on May 6, 2008, at which Sue Meisinger, SHRM President and Chief Executive Officer, testified at the hearing. Click here to access Sue’s testimony.

Tax and Benefits

     

H.R. 1257, the Shareholder Vote on Executive Compensation Act, sponsored by Representative Barney Frank (D-MA)

S. 1181, the Shareholder Vote on Executive Compensation Act, sponsored by Senator Barack Obama (D-IL)

The bill amends the Securities Exchange Act to require public companies to include in their annual proxies, a non-binding, advisory shareholder vote to approve executive compensation. The bill also provides for a separate advisory vote if the company gives a new, undisclosed 'golden parachute' during negotiations to buy or sell a company.

H.R. 1257 passed the House of Representatives on April 20, 2007, by a vote of 269-134.

S. 1181 was introduced in the Senate on April 20 and referred to the Committee on Banking, Housing, and Urban Affairs.

Many members of Congress may be convinced to support the measure due to its non-binding nature. Others oppose the bill because they would like to see recent Securities and Exchange Commission rules on executive pay implemented before considering a legislative fix. The bill will likely have a very difficult time passing the Senate due to the tighter balance of power between the parties. See the May Insider for more details.

S. 1038, the Workforce Health Improvement Program (WHIP) Act, sponsored by Senator John Cornyn (R-TX)

H.R. 1748, the Workforce Health Improvement Program (WHIP) Act, sponsored by Representative Zach Wamp (R-TN)

S. 1038 would enable an employer to deduct the cost of subsidizing or providing off-site fitness center benefits for their employees, and would exclude this wellness benefit from being considered taxable income for employees.

H.R. 1748 is similar to S. 1038.

S. 1038 has been referred to the Senate Finance Committee.

H.R. 1748 has been referred to the House Committee on Ways and Means.

The WHIP Act has bipartisan support in the both the House and Senate, although it is unclear whether the legislation will advance in the 110th Congress.

H.R. 853, the Wellness and Prevention Act, sponsored by Representative Joe Knollenberg (R-MI)

Under the bill, employers would receive up to a $200 tax credit per employee that joins the wellness program. Employees would also receive a $200 tax credit for participating in the wellness program and meeting certain requirements.

H.R. 853 has been jointly referred to the House Committees on Energy and Commerce and Ways and Means.

While the legislation enjoys bipartisan support, it is unclear whether it will advance in the 110th Congress.

S. 1141, the Automatic IRA Act of 2007, sponsored by Senator Jeff Bingaman (D-NM)

H.R. 2167, the Automatic IRA Act of 2007, sponsored by Representative Richard Neal (D-MA)

The bill amends the Internal Revenue Code to require that employers with more than 10 employees and that have been in business more than two years provide each employee, not covered by qualified retirement plan, the option to save for retirement through automatic payroll deposit IRAs in exchange for a tax credit of up to $250.

For more information on S. 1141, read the May 2007 Insider.

S. 1141 was introduced on April 18, 2007, and has been referred to the Senate Finance Committee.

H.R. 1267 was introduced on May 3, 2007 and referred to both the House Ways & Means and House Education & Labor committees.

The legislation was introduced with bipartisan sponsors in both houses. Although a popular idea to increase retirement savings, it is not clear whether the issue has enough momentum to move forward given Congress’ other legislative priorities.

H.R. 1820, the Tax Equity for Health Plan Beneficiaries Act of 2007, sponsored by Representative Jim McDermott (D-WA)

S. 1556, the Tax Equity for Domestic Partner and Health Plan Beneficiaries Act, sponsored by Senator Gordon Smith (R-OR) and Senator Joseph Lieberman (I-CT)

H.R. 1820 would amend the Internal Revenue Code to extend the exclusion from gross income for employer-provided health care coverage to certain eligible beneficiaries, including domestic partners, and their dependent children.

S. 1556 is the Senate companion bill.

H.R. 1820 was introduced on March 29, 2007, and has been referred to the Ways and Means Committee.

S. 1556 was introduced June 6, 2007 and referred to the Senate Finance Committee

The sponsor of the bill is a senior member of the Ways and Means Committee, which could help the bill’s chances of advancing.

S. 1288, Women’s Retirement Security Act of 2007, sponsored by Senator Gordon Smith (R-OR)

The bill requires employers to allow long-term, part-time employees to make elective deferrals to their 401(k) plan, expands the Saver’s credit, creates automatic payroll deductions into an IRA for employees not covered by a qualified retirement plan, and allows a portion of payments, from qualified annuities that last a lifetime, to be excluded from taxes.

The bill was introduced May 3, 2007 and was referred to the Finance Committee.

The bill addresses a popular public policy issue - narrowing the retirement gap between men and women. It is unclear, however, whether this issue is a high enough priority to garner attention this year.

S. 1753, Healthy Workforce Act of 2007, sponsored by Senator Tom Harkin (D-IA)

H.R. 3717, the Healthy Workforce Act, sponsored by Representative Tom Udall (D-NM)

The bill provides a tax credit to employers for costs of implementing wellness programs. The credit is based on 50% of costs paid by the employer in connection with a qualified wellness program but is not to exceed $200 per employee up to 200 employees and $100 per employee in excess of 200 employees.

H.R. 3717 is identical to the Senate bill.

The bill was introduced in the Senate on July 9 and referred to Senate Finance Committee.

H.R. 3717 was introduced on October 2, 2007, and was referred to the House Ways and Means Committee.

Congress remains interested in supporting initiatives to support health and healthy workplaces. This tax credit, however, will have to compete with other popular initiatives that cost money and the bill sponsor will need to find an offset in order to stay within Congress’ promise to not increase the deficit.

S. 1725, Restoring Pension Promises to Workers Act, sponsored by Senator Tom Harkin (D-IA)

The bill would require any employer offering a nonqualified deferred compensation plan to also sponsor one or more defined benefit pension plan. The defined benefit plan would have to meet certain minimum standards related to vesting, benefits and participation. If the employer fails to meet the requirements, all compensation deferred under the nonqualified plan would be immediately included in each covered employee’s gross income. The bill also amends ERISA to protect service credits for employees affected by mergers and acquisitions to maintain their eligibility for subsidized early retirement benefits and to establish an office of pension participant advocacy within the Department of Labor.

The bill was introduced June 28, 2007 and referred to Senate Committee on Health, Education, Labor and Pension (HELP).

Nonqualified deferred compensation has been an issue of high interest in Congress. In addition, Senator Harkin is a high-ranking member of the HELP committee with the ability to push this bill forward.

H.R. 3185, 401(k) Fair Disclosure for Retirement Security Act of 2007, sponsored by Representative George Miller (D-CA)

The bill requires plan administrators for all 401(k)-style retirement plans to disclose, in simple terms, all fees charged to plan participants on an annual basis. In addition, plan participants must be provided with more detailed information on investment strategies, risks and returns when they sign up for their organization’s 401(k). The bill also enhances DOL’s oversight of 401(k) plans and requires annual disclosure of all fees and conflicts of interest to employers who sponsor 401(k) plans.

The bill was introduced in the House on July 26 and referred to the Committee on Education and Labor.

As the use of defined benefit retirement plans diminishes, more scrutiny is being applied to defined contribution plans. Legislators have expressed increased concern about participant-directed retirement plans and have highlighted plan fees as a hidden cost. Representative Miller, bolstered by a recent Government Accountability Office (GAO) report calling for greater disclosure, has held hearings in the House Education and Labor focused on how much plan fees cost participants. As Chairman of the committee of jurisdiction, Chairman Miller has the power to push this legislation forward.

H.R. 3765, the Defined Contribution Plan Fee Transparency Act of 2007, sponsored by Representative Neal (D-MA)

The bill requires new disclosure on all tax-preferred, participant-directed defined contribution plans. It requires employers to provide employees (plan participants) with two separate disclosures regarding plan investments and fees, at enrollment and annually. Employers that fail to provide participant notices will face a tax of $100 per day per failure capped at $500,000. The bill also requires service providers to provide fee information to plan administrators in advance of a contract for plan services. Service providers who fail to provide the information will face a tax of $1,000 per day per failure with an annual cap of $1 million.

The bill was introduced on October 4, 2007, and was referred to the House Committee on Ways and Means.

Members of Congress are increasingly concerned that defined contribution plan participants have the information necessary to successfully save for their own retirement. Plan fees have been criticized as eroding a participant’s retirement funds without full knowledge of the participant. The Neal fee disclosure bill presents an alternative to H.R. 3158 introduced earlier this year by Representative Miller. The Miller bill contains more specific disclosure requirements and places other requirements on service providers and plan sponsors making the Neal bill an attractive alternative for some Members of Congress.

H.R. 3363, the Long-Term Care Affordability and Security Act, sponsored by Representative Earl Pomeroy (D-ND)

S. 2337, the Long-Term Care Affordability and Security Act, sponsored by Senator Charles Grassley (R-IA)

Both bills would allow long-term care insurance to be offered among employer-sponsored cafeteria plans as well as flexible spending arrangements.

H.R. 3363 was introduced on August 3, 2007, and referred to the House Ways and Means Committee.

S. 2337 was introduced on November 13, 2007, and referred to the Senate Finance Committee.

Both bills enjoy bipartisan support as well as sponsors who sit on the committees of jurisdiction over the legislation. While SHRM supports this legislation, enactment in the 110th Congress seems unlikely.

H.R. 3418, Employee Educational Assistance Act of 2007, sponsored by Representative Sander Levin (D-MI)

H.R. 3418 makes section 127 of the Internal Revenue Code permanent. Section 127 allows an employee to exclude up to $5,250 per year of employer-provided educational assistance from his or her gross taxable income. Section 127 is set to expire in 2010 if not extended or made permanent.

The bill was introduced on August 8, 2007, and referred to the House Committee on Ways and Means.

Section 127 is a popular employer-provided benefit that has bipartisan support among lawmakers (44 cosponsors) and widespread support among employers, higher education and labor groups. The bill may be added to a larger tax package later in the year, but sponsors will have to address the increased cost to the US Treasury that permanency would cause.

H.R. 1322, Emergency Retiree Health Benefits Protection Act of 2007, Sponsored By Representative John Tierney (D-MA)

H.R. 1322 amends the Employee Retirement Income Security Act of 1974 (ERISA) to prohibit group health plans from making post-retirement reductions in retiree benefits and would require employers to restore benefits reduced after retirement.

H.R. 1322 was introduced on March 5, 2007 and referred to the Committee on Education and Labor, and to the Committee on the Budget.

It is unlikely H.R. 1322 will see action as a stand alone measure in the 110th Congress, although the sponsor has indicated his interest in attaching this legislation to another health care bill, should one move in the remaining months of the 110th Congress.

H.R. 3361, Pension Protection Technical Corrections Act of 2008, Sponsored by Representative Charles B. Rangel (D-NY)

S. 1974, Pension Protection Technical Corrections Act of 2007, Senator Edward M. Kennedy (D-MA)

H.R. 3361 amends the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, as amended by the Pension Protection Act of 2006, to make changes regarding defined benefit pension plans, including to: (1) revise rules concerning amendments of a plan while a waiver of minimum funding standards is in effect; (2) amend provisions that allow the Secretary of Treasury to provide a transition rule for estimating an at-risk plan's funding target attainment percentage; (3) exclude from the definition of prohibited payment for purposes of limitations on accelerated benefit distributions a payment that may be immediately distributed without the consent of the participant; (4) extend exemption from fiduciary liability during a blackout period to otherwise qualified blackout periods of less than three days; and (5) revise deduction rules for employer contributions to one or more defined contribution plans.

S. 1974 is similar to H.R. 3361

H.R. 3361 was introduced August 3, 2007 and referred to the Committee on Ways and Means, and to the Committee on Education and Labor. Passed the House on March 12, 2008 and sent to the Senate.

Passed the Senate unanimously on December 19, 2007.

While H.R. 3361 and S. 1974 are similar, now that both chambers have passed their respective bills, a compromise bill must be negotiated.

 


 

 

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