HR Florida: Washington Outlook & HR Policy Update

HR Florida: Washington Outlook & HR Policyt Update

Presented by Bob Carragher Vice President, State Strategy & Engagement SHRM [email protected]

March 27, 2019

▪ The State of the Nation ▪ Make-up of the 116th Congress - What It Means ▪ SHRM’s Public Policy Priorities in 2019 ▪ State Legislative Trends ▪ SHRM A-Team Update

Government Back on Top as Nation’s Leading Problem

U.S. Senate Leaders U.S. House Leaders

Majority Leader Majority Whip Speaker Majority Leader Mitch McConnellGovernment (R- John Thune Back (R-SD) on Top as Nation’sNancy Pelosi Leading (D-CA) ProblemStenny Hoyer (D -MD) KY)

Conference Chair Minority Leader Majority Whip Minority Leader John Barrasso (R-WY) Chuck Schumer (D-NY) Jim Clyburn (D-SC) Kevin McCarthy (R-CA)

Source: Real Clear Politics, March 25, 2019

▪ Work Visas (H and J) ▪ Employer educational assistance ▪ E-Verify ▪ Untapped talent pools: older ▪ Scheduling and employer ▪ Trusted Employer flexibility requirements workers, individuals with program disabilities, formerly incarcerated ▪ Overtime ▪ DACA ▪ Sick leave mandates ▪ Apprenticeships and job training ▪ Social insurance program ▪ Health Care ▪ Employer paid leave requirement ▪ Paid leave from Social Security ▪ FMLA improvements ▪ Tax credits

SHRM 2019 ▪ Sexual Harassment Workplace Flexibility & Leave Workplace Equity ▪ Compensation Priorities equity

• Expands Section 127 of the Internal Revenue Code to include student loan repayment as a type of tax-free education assistance. • Bipartisan bill was introduced in the House by Representatives Scott Peters (D-CA), Rodney Davis (R-IL), Elise Stefanik (R-NY), Earl Blumenauer (D- OR), Tom Cole (R-OK), Stephanie Murphy (D-FL) and Jason Smith (R-MO). • SHRM is leading the coalition on this legislative effort.

© 2019 SHRM. All Rights Reserved 14 15 © 2019 SHRM. All Rights Reserved © 2019 SHRM. All Rights Reserved 16 SHRM Partnership with Jobs for America’s Graduates (JAG) SHRM-JAG partnership to address workforce development and invest in high school students to help them become college and career ready. The pilot goal is to develop engagement opportunities between SHRM members and students to prepare them for the workplace.

Pilot program in…

o 7 states: Alabama, Indiana, Iowa, Kentucky, Michigan, Missouri, and New Hampshire Gov. Chris Sununu with NHSHRM members o 7 SHRM State Councils / 17 SHRM Chapters participating o 32 JAG programs at 29 high schools o Reaching over 1,200 students

• Provide advice and recommendations to the interagency National Council for the American Worker on ways to encourage the private sector and educational institutions to combat the skills crisis by investing in and increasing education and training.

• Chaired by Secretary of Commerce, Wilbur Ross and Presidential Advisor, Ivanka Trump with 25 members who are a mix of industry associations, education representatives, union representatives, CEOs of US business, state governors, and representatives of HR.

• SHRM CEO Johnny C. Taylor, Jr. appointed to the Board.

• The Board will focus on all aspects of workforce development. SHRM will have a specific focus on improving hiring practices to focus on competencies and otherwise better align employer’s skill needs with qualified job seekers. © 2019 SHRM. All Rights Reserved 18 9 Years Ago Yesterday, President Obama signs the Affordable Care Act into Law

MA law – premiums collected July 2019 / benefits Jan. 2021

• Provides workers with 12 weeks of paid leave for same purposes as the FMLA

• Workers on leave would receive up to 66% of regular wages, up to $1,000/week

• Eligibility tied to SSDI eligibility, not FMLA firm-specific approach (i.e. 50 or more employees), but must also have income from employment during prior year, so part-time workers would be eligible

• Does not include job protection

• Financed through joint payroll contributions of 0.4 percent evenly split between employers and employees

• Does not preempt or supersede state law

• Plan was unveiled by Senator Mike Lee (R-UT) and Senator Joni Ernst (R-IA).

• This legislation is the Republican alternative to paid family leave.

• The bill would allow natural and adoptive parents to receive one, two, or three months of paid leave benefits in exchange for postponing activation of Social Security retirement benefits for two, four, or six months.

• Benefit would be calculated using existing Social Security Disability formula.

From a Congressional Research Service Report on “Paid Family Leave in the United States” – Updated September 12, 2018 by Sarah A. Donovan, Specialist in Labor Policy on benefit provide by Organization for Economic Co-Operation and Development (OECD)

• On March 7th new overtime rule released and had several of the recommendations SHRM advocated during the Obama Administration.

• Raises the salary threshold to $35,308 using ’04 methodology.

• Raises threshold to $147,414 for “highly compensated employees”.

• Does not implement automatic updates, or changes to duties test.

• Would allow nondiscretionary bonuses and incentive payments.

• Creates a first-come first-served employment green card system with elimination of the employment green card per country limit. • Reintroduced by Senators Mike Lee (R-UT) and Kamala Harris (D-CA) and House Judiciary Immigration Subcommittee Chairwoman Zoe Lofgren (D-CA) and Ranking Member Ken Buck (R-CO). • SHRM will send a letter of support for this bill.

• Repeals the I-9 paper-based system to create a fully electronic employment verification system. • Mandates all employers to use the E-Verify system. • Sponsored by Rep. Ken Calvert (R-CA). • SHRM has supported this bill previously, but has not sent a letter of support at this time, as it is unlikely to move or garner bipartisan support.

More Than 10% of U.S. Employers Use E-Verify

• Introduced by Senator Patty Murray (D-WA) and Rep. Rosa DeLauro (D-CT).

• The bill’s aim is to make it easier to penalize companies for disparity and to protect employees who disclose their pay.

• SHRM has opposed this bill previously because it would outlaw many legitimate practices that employers currently use to determine compensation and benefits, such as professional experience, shift differentials, years of experience, geographic location, etc.

• The full House of Representatives is scheduled to vote on H.R. 7 later today. Reminder: Equal Pay Day is April 2.

Sexual Harassment Prevention Policies

Source: SHRM Harassment-Free Workplace Series: A Focus on Sexual Harassment, January, 2018

▪ Ensures the voice of HR is heard by policy decision-makers via a “local network” 10,500+ Active A-Team Members ▪ Helps inform legislators of policy impacts upon employers and employees in her/his district

▪ SHRM members are constituents who develop credible and influential relationships with elected officials

© 2019 SHRM. All Rights Reserved Through advocacy.shrm.org: ▪ Immediately take action on alerts ▪ Easily connect to your Members of Congress ▪ Sign up for the SHRM A-Team ▪ Quickly submit lawmaker engagement feedback online ▪ Stay up-to-date on legislative and agency proposals impacting the workplace - and more!

Bob Carragher, Vice President, State Strategy & Engagement [email protected]

+1-703-535-6268 Direct