1. Government Affairs Update
Neil Reichenberg
IPMA-HR EXECUTIVE DIRECTOR

2. Overview Last year’s session of Congress was one of the
least productive ever with only 65 laws enacted
Congress remains very unpopular with an approval rating according to Gallup of 13% in January – an improvement from its all time low of 9% in November
While the approval rating has improved, it is below the historical average of 33%

3. Overview
This is an election year – entire House of Representatives and 1/3 of the Senate is at stake
The House of Representatives is only scheduled to be in session 97 days prior to election day & 113 days through the end of the year
Given the partisanship, it will be difficult for the Congress to enact many laws

4. Budget Issues
There was a 16 day partial shutdown of the government last year
It was estimated that the shutdown took at least $24 billion out of the US economy with federal employees missing 6.6 million days of work
President has signed a $1.1 trillion package funding the government through September 30th
Next big budget issue is the extension of the debt ceiling
The Congress suspended the debt ceiling though February 7th
Treasury Secretary estimates debt ceiling needs to be extended by the end of February

5. Economy
In December, 74,000 jobs were added and the unemployment rate declined to 6.7%
In 2013, state and local government employment remained flat, with state and local governments increasing by 0.2%
Federal government employment declined by 71,000, which was a 2.5% decrease
US gross domestic product grew in the third quarter by 4.1% - fastest growth rate in almost 2 years

6. Legislation

7. Emergency Unemployment Compensation
Emergency unemployment compensation program ended on December 28th
Attempts to pass an extension is stalled in the Senate
Report issued in December by the Department of Labor and the Council of Economic Advisors stated that 1.3 million individuals would lose their benefits at the end of 2013 and an additional 3.6 million will lose access to unemployment benefits beyond 26 weeks by the end of 2014
Failing to extend the program would result in reduced consumer spending & the loss of 240,000 jobs this year

8. Minimum Wage
Legislation has been introduced that would increase the federal minimum wage to $10.10 per hour by 2015
Current minimum wage is $7.25 per hour
Polls show widespread support for increasing the minimum wage

9. Paid Family & Medical Leave
Bills would provide paid family and medical leave that would be funded by employee and employer contributions of 0.2% of wages creating a self-funding program that the sponsors say would not add to the federal budget
Benefits levels would equal 66% of an individual’s monthly wages up to a capped monthly amount that would be indexed for inflation
Leave would be available to all employees regardless of the size of their employers
Some states are already providing paid family leave

10. Mass Transit Tax Benefit
On January 1st, the mass transit tax benefit dropped from $245 per month to $130 per month
As part of the American Taxpayer Relief Act, the parity between the mass transit and parking benefits was restored for 2013
The parking benefit includes an annual cost-of-living adjustment that resulted in an increase to $250/month in 2014
Legislation to increase the mass transit benefit has been introduced but has not yet been approved

11. Healthcare Reform
People signing up for health insurance through the exchanges tend to be older, which could cause premiums to rise in the future
55% of those who signed up in the first 3 months are age 45 – 64
Only 24% are 18 – 34 11

12. Healthcare Reform
IPMA-HR supports the “Forty Hours is Full-Time Act of 2013”
The bill would increase the threshold for ACA coverage to 40 hours per week or 174 hours per month
Employers have been cutting their employees’ hours to less than 30 hours per week to avoid having to provide health insurance

13. Healthcare for Volunteer Firefighters
On January 10th, Treasury Department issued a notice advising that when it releases final regulations it will not require volunteer hours of bona fide volunteer firefighters & emergency medical personnel to be counted when determining full-time employees
IPMA-HR expressed support for the Treasury Department’s decision
According to the National Volunteer Fire Council there are more than 750,000 volunteer firefighters & an estimated additional ,000 volunteer emergency medical personnel

14. Credit Check of Job Applicants
Legislation has been introduced in the Senate that would prohibit employers from requiring job applicants to disclose their credit history
Employers would be prohibited from denying a person a job based on poor credit history
There is an exemption for jobs requiring national security clearance
The sponsors believe that poor credit history does not reflect the ability to perform a job

15. Employment Non-Discrimination Act
By a vote of 64-32, the Senate passed the Employment Non-Discrimination Act (ENDA) (S.815)
The bill would prohibit employment discrimination on the basis of sexual orientation or gender identity
Bill would apply to public and private employers with at least 15 employees
The bill would prohibit preferential treatment or quotas on the basis of sexual orientation or gender identity

16. Employment Non-Discrimination Act
The bill would establish an exemption for religious organizations and also would not apply to members of the armed forces
The EEOC and the Department of Justice would enforce the law
A state would not be immune under the 11th Amendment from a suit brought for violation of the act
The bill faces an uncertain future in the House of Representatives

17. Immigration Reform Passed the Senate 68-32
Stalled in the House of Representatives where they are considering a series of small bills
Overhaul of the immigration system including a pathway to citizenship for an estimated 11 million undocumented immigrants and enhanced border security requirements that would cost $46 billion
Bill would require all employers to use E-Verify within 4 years to determine the legal eligibility to work of every new hire

18. Healthy Families Act Healthy Families Act
Requires one hour of paid sick leave for every 30 hours worked regardless of part-time; temporary; seasonal status
Employers with equal or more generous policies would not have to change them
IPMA-HR has expressed concern with this legislation

19. Equal Pay
Paycheck Fairness Act allows for unlimited punitive and compensatory damages against state and local employers
Bill would make it easier to bring class action lawsuits
IPMA-HR expressed concern with the unlimited damages allowed in the law
Fair Pay Act would prohibit wage differentials for jobs dominated by one gender/race at a rate lower than that for equivalent jobs dominated by another gender/race

20. Protecting Older Workers Against Discrimination
Protecting Older Workers Against Discrimination Act
Would overturn two Supreme Court decisions that toughened the burdens of proof for employees bringing claims under the ADEA or advancing retaliation claims under Title VII of the Civil Rights Act
The Supreme Court opinions required employees to show that discrimination was the sole motivation for an adverse action 

21. Misclassification of Employees
Legislation designed to address the problem of employers misclassifying employees as independent contractors has been introduced in the Senate
Bill would require employers to notify employees of their classification along with information concerning their legal rights
Labor Department would establish a webpage summarizing the rights of employees & independent contractors under the FLSA
Improper classification of an individual as an independent contractor would double the amount of liquidated damages
This issue is one of the priorities of the Labor Department

22. Social Media
Growing number of states have enacted laws to prohibit employers from requiring or requesting that prospective and current employees disclose their user names and pass words to their personal social media accounts
Similar legislation introduced in the Congress
The National Labor Relations Board has issued guidance in this area that is available at

23. Pension Reform
Public Employee Pension Transparency Act introduced in the Senate and House
Requires public pensions to report liabilities in two ways (1) the current method and (2) using fair market value and private sector assumptions
Those that refuse will not be able to issue federally-tax exempt bonds

24. Regulatory Issues

25. EEO-4
IPMA-HR wrote to the EEOC seeking an update to the EEO-4 reporting form to capture more than one race/ethnicity
EEOC responded that they share the concerns but the process to change is not a quick one
The revised EEO-4 needs to be approved by the EEOC and the Office of Management & Budget
Since the survey is only collected every other year and they give at least one year notice before collecting data in a new format, the change is likely to take at least a few more years to implement

26. Criminal Background Checks
In July, 9 attorneys general wrote to EEOC calling guidance “overreach” and asking it be rescinded
The EEOC clarified that under the guidance it is not illegal for employers to conduct or use the results of criminal background checks.
The EEOC contends that the guidance is simply applying the text of Title VII when it states that federal law preempts contradictory state or local law
Texas Attorney General Greg Abbott filed a lawsuit challenging the criminal background guidelines as being in conflict with Texas laws that bar convicted felons from government employment

27. Questions?
Contact: Neil Reichenberg or call (703)