2008 Hr Summit

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HR Legislative update to HR professionals in the Burger King System

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  • Prohibit an employer from establishing a quota system or giving preferential treatment to an individual on the basis of sexual orientation. Exempt religious organizations and educational institutions supported or managed by a religious organization which has as its primary purpose the spreading of a particular religion. Legislation specifically states that the bill's protection does not extend to the area of benefits offered to a covered employee's partner and, therefore, does not require an employer to offer domestic partner benefits to employees. Allows for compensatory and punitive damages under the Civil Rights Act of 1964.
  • Time limit for filing a charge cannot be extended upon the receipt of each successive paycheck (the “Paycheck Rule”). Current law requires employees to bring claims within 180 days (if the employee’s home state has no equal employment agency) or 300 days (if the employee’s home state has an equal employment agency) of alleged action. Amends Title VII of the 1964 Civil Rights Act, the ADA, ADEA, and the Rehabilitation Act. Legislation would effectively get rid of the statute of limitations on discrimination claims. The bill would also re-start the time clock when a retiree receives an annuity check from an employer, and would thus keep employers liable to a discrimination claim potentially decades after an alleged act of misconduct. Also expands current law by allowing, not just an “aggrieved person,” but other individuals who were “affected” by an act of pay discrimination, to file claims
  • Eliminates the following from List A documents: Certificate of U.S. Citizenship (Form N-560/N-561) Certificate of Naturalization (Form N-550/N-570) Alien Registration Receipt Card (I-151) Unexpired Reentry Permit (Form I-327) Unexpired Refugee Travel Document (Form I-571) Revised “List A” document which establish Both Identity and Employment Eligibility include: U.S. passport Permanent Resident Card/Alien Registration Receipt Card (Form I-551) Unexpired foreign passport with a temporary I-551 stamp Unexpired Employment Authorization Document that contains a photograph (Form I-766, I-688, I-688A, or I-688B). Unexpired foreign passport with an unexpired “Arrival-Departure Record,” Form I-94 Employers must use the form for any new hires by December 26, 2007.
  • Require the MHP provisions to apply to each benefit package offered by an employer. Define financial requirements as deductibles, coinsurance, co-payments, and other limits paid by the plan participant. Treatment limits include limitations on the frequency of treatment, number of days of coverage, or other limits on the scope of treatment under the plan. Prohibit a health care plan from imposing treatment or financial requirements on mental health benefits if it does not maintain similar limits on medical and surgical benefits. Require the MHP provisions to apply to each benefit package offered by an employer. Define financial requirements as deductibles, coinsurance, co-payments, and other limits paid by the plan participant. Treatment limits include limitations on the frequency of treatment, number of days of coverage, or other limits on the scope of treatment under the plan. Allows the federal law to preempt state laws if state law provides protections that are greater than the MHPA protections. Provides and exemption from the MHPA requirements if a plans costs rise more than 2 percent in the first year and more than 1 percent in each subsequent year.
  • I would also like to recognize those who assist us in getting our jobs done. Next Slide: Purpose Statement.
  • I would also like to recognize those who assist us in getting our jobs done. Next Slide: Purpose Statement.
  • I would also like to recognize those who assist us in getting our jobs done. Next Slide: Purpose Statement.
  • I would also like to recognize those who assist us in getting our jobs done. Next Slide: Purpose Statement.
  • I would also like to recognize those who assist us in getting our jobs done. Next Slide: Purpose Statement.
  • I would also like to recognize those who assist us in getting our jobs done. Next Slide: Purpose Statement.
  • 2008 Hr Summit

    1. 1. HR Public Policy:Government Relations
    2. 2. Overview <ul><li>HR Legislation: 110th Congress </li></ul><ul><li>NFA/BKC GRC </li></ul><ul><li>Consequences For The Future </li></ul><ul><li>Cost Impact on our Business </li></ul><ul><li>HR Proposition:Methodology </li></ul>
    3. 3. Political Forecast in Washington
    4. 4. Labor and Employment Legislation <ul><ul><li>Allows current FMLA-eligible relatives and next of kin caring for recovering service members up to 26 weeks of leave in any 12-month period. </li></ul></ul><ul><ul><li>Leave may be used on an hour-by-hour basis or in the smallest increment that the employer’s payroll system tracks. </li></ul></ul><ul><li>National Defense Authorization Act of 2008 (H.R.1585) </li></ul><ul><li>Expand FMLA qualified events to include </li></ul><ul><li>employees caring for an injured service member as </li></ul><ul><li>well as for family members called to active duty </li></ul>
    5. 5. Labor and Employment Legislation <ul><li>Provides up to 12 weeks of leave to due to a </li></ul><ul><li>spouse, son, daughter, or parent being called to </li></ul><ul><li>active duty. </li></ul><ul><li>Called to active duty includes individuals: </li></ul><ul><ul><ul><li>Serving in support of a contingency </li></ul></ul></ul><ul><ul><ul><li>operation; or </li></ul></ul></ul><ul><ul><ul><li>Notified of an impending call or order </li></ul></ul></ul><ul><ul><ul><li>to active duty in support of a </li></ul></ul></ul><ul><ul><ul><li>contingency operation. </li></ul></ul></ul><ul><li>Leave may begin as soon as individual receives </li></ul><ul><li>call-up notice. </li></ul>
    6. 6. Labor and Employment Legislation <ul><li>Bill divided into two sections: one focusing on health care plans and the other on the employment process. </li></ul>Genetic Information Nondiscrimination Act of 2007 (S.358 and H.R.493)
    7. 7. Labor and Employment Legislation <ul><li>Prohibit insured and self-insured health care plans </li></ul><ul><li>from denying coverage or adjusting contribution or </li></ul><ul><li>premium rates based on an individual or family </li></ul><ul><li>member's genetic information. </li></ul><ul><li>Prevent plans from requiring participants to take </li></ul><ul><li>genetic tests for coverage or from maintaining </li></ul><ul><li>enrollment restrictions based on need for services. </li></ul><ul><li>Allow a health professional to suggest genetic </li></ul><ul><li>tests or advise on genetic services through a </li></ul><ul><li>wellness program. </li></ul>
    8. 8. Labor and Employment Legislation <ul><li>Plan administrators could be personally liable for </li></ul><ul><li>decisions and assessed penalties of $100 per day, </li></ul><ul><li>plans up to $500,000 for unintentional violations. </li></ul><ul><li>Disclosure of protected genetic information would </li></ul><ul><li>be governed by the medical privacy requirements </li></ul><ul><li>of HIPAA. Violations of the privacy provisions </li></ul><ul><li>could result in civil and criminal penalties. </li></ul><ul><li>Allow state laws that are more stringent in the </li></ul><ul><li>requirements, standards, or implementations then </li></ul><ul><li>contained in the bill to supersede the federal act. </li></ul>
    9. 9. Labor and Employment Legislation <ul><li>Senate bill defines family member as: </li></ul><ul><ul><li>spouse of the individual; </li></ul></ul><ul><ul><li>a dependent child of the individual, including a child who is born to or placed for adoption with the individual; or </li></ul></ul><ul><ul><li>all other individuals related by blood to the individual, spouse or child. </li></ul></ul><ul><li>House bill limits the definition to (4) generations. </li></ul>
    10. 10. Labor and Employment Legislation <ul><li>Prohibit an employer from discriminating against an individual in all terms, privileges, or conditions of employment. </li></ul><ul><li>Forbids employers from requesting, requiring, or purchasing genetic information of an employee of family member except: </li></ul><ul><ul><li>1. where the employer inadvertently requests or requires family medical history information, </li></ul></ul><ul><ul><li>2. for genetic services offered by the employer (including wellness programs), </li></ul></ul>
    11. 11. Labor and Employment Legislation <ul><ul><li>3) for purposes of FMLA, </li></ul></ul><ul><ul><li>4. where the employer purchases documents that are commercially and publicly available, and </li></ul></ul><ul><ul><li>5. for genetic monitoring of biological effects of toxic substances in the workplace. </li></ul></ul><ul><li>Allows for compensatory and punitive damages under the Civil Rights Act of 1964. </li></ul>
    12. 12. Labor and Employment Legislation <ul><li>The Employment Non-Discrimination Act of 1997 (H.R.3685) </li></ul><ul><li>Legislation would prohibit discrimination on the basis of sexual orientation. </li></ul><ul><li>Prohibit discrimination on the basis of an individual's actual or perceived sexual orientation or the sexual orientation of persons with whom the individual associates. </li></ul><ul><li>Prohibits an employer from limiting, segregating,or classifying or discriminating in all areas of the employment relationship including: application process, hiring, advancement, firing, compensation, job training, and other terms, conditions, or privileges of appointment </li></ul>
    13. 13. Labor and Employment Legislation <ul><li>The Lilly Ledbetter Fair Pay Act </li></ul><ul><li>Fair Pay Restoration Act (S.1843 & H.R. 2831) </li></ul><ul><li>Effort to overturn U.S. Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co . </li></ul><ul><li>Court held that issuing paychecks cannot be challenged as a discriminatory act. Claim must be based on compensation rates decision. </li></ul>
    14. 14. Labor and Employment Legislation <ul><li>Announced in the Federal Register on November 26, by USCIS. </li></ul><ul><li>Follow-up to the 1997 interim final rule revising the Form I-9 Form, reflecting changes made by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996. </li></ul><ul><li>Curtails the list of acceptable documents as well as provides information on electronically signing and retaining I-9 Forms. </li></ul>U.S. Citizenship and Immigration Services Employment Eligibility Verification Form I-9
    15. 15. Health Care Issues <ul><li>Mental Health Parity Act (S.558) </li></ul><ul><li>Legislation extends and amends the Mental Health </li></ul><ul><li>Parity Act of 1996 (MPHA). </li></ul><ul><li>MHPA requires a health care plan that includes </li></ul><ul><li>mental health coverage to not treat these provisions </li></ul><ul><li>different than medical and surgical coverage in </li></ul><ul><li>regard to annual or lifetime dollar limits for treatment. </li></ul><ul><li>Prohibit a health care plan from imposing treatment or financial requirements on mental health benefit if it does not maintain similar limits on medical and surgical benefits. </li></ul>
    16. 16. GRC/BKC Legislative Update <ul><li>Restaurant Building Depreciation </li></ul><ul><li>Reduces Depreciable Life of Building from </li></ul><ul><li>39.5 Years to 15 Years </li></ul><ul><li>Makes permanent the qualified restaurant property depreciation rules. </li></ul><ul><li>Direct competitors, gas stations & convenience stores are already on the 15-year depreciation schedule. </li></ul><ul><li>This bill would give similar industries an equal opportunity to build and improve on their properties. </li></ul>
    17. 17. GRC/BKC Legislative Update <ul><li>Example of Benefit of Depreciation Reform </li></ul><ul><li>Assumptions: </li></ul><ul><li>Cost of Building - $900,000 </li></ul><ul><li>Financing – 80%, 15 Years, 8%, Pmt $6,880 </li></ul><ul><li>Depreciation Calculations: </li></ul><ul><li>Annual Deduction – 15 Year Life $60,000 </li></ul><ul><li>Annual Deduction – 39.5 Year Life $22,785 </li></ul><ul><li>Annual Tax Savings: </li></ul><ul><li>Additional Depreciation $37,215 </li></ul><ul><li>Tax Savings @35% $13,025 </li></ul>
    18. 18. GRC/BKC Legislative Update <ul><li>Immigration Reform </li></ul><ul><li>GRC/BKC support comprehensive immigration reform, but these regulations should’nt place the burden of enforcement on employers, regardless of good faith efforts, and subject them to possible discrimination suits. </li></ul><ul><li>We also support an enhanced employment verification system that is accurate, timely, uses the latest technologies, and shares responsibility between the employer, the employee and the Federal government. </li></ul>
    19. 20. GRC/BKC Legislative Update <ul><li>Workplace Issues </li></ul><ul><li>Employee Free Choice Act (Card Check) </li></ul><ul><li>(#1 Issue for Labor Unions) </li></ul><ul><li>Lilly Ledbetter Fair Pay Act </li></ul><ul><li>Paid Sick Leave </li></ul><ul><li>Paid Family Medical Leave </li></ul><ul><li>Menu Labeling </li></ul>
    20. 21. GRC/BKC Legislative Update <ul><li>Menu Labeling </li></ul>
    21. 22. Legislative Update
    22. 23. Costs to Transition to “Menu Labeled” Board <ul><li>BKC estimates it will cost $1,000 per site to convert all boards to a “labeled” layout. </li></ul><ul><li>A 10-store franchisee would pay $10,000. </li></ul>
    23. 24. Sodium <ul><li>Increased regulation and labeling </li></ul><ul><li>BKC Sodium Task Force </li></ul>“ It’s the next trans fat.” Michael Jacobson, CSPI
    24. 25. MARKETING TO CHILDREN <ul><li>Greater focus on Capitol Hill on banning marketing of QSR food (along with soda, chips, candy) to children, so restaurant industry is seeking to self-regulate. </li></ul><ul><li>BKC joined 11 other companies in taking a pledge to focus more of our under 12 advertising on healthier options. </li></ul><ul><li>Key components of pledge. By December 2008, all under 12 advertising will be limited to Kid’s Meals that provide: </li></ul><ul><ul><li>No more than 560 calories per meal </li></ul></ul><ul><ul><li>Less than 30 percent calories from fat </li></ul></ul><ul><ul><li>No more than 10 percent of calories from added sugars </li></ul></ul><ul><li>Key leaders like Sen. Harkin (D-IA) and Rep. Markey (D-MA) gave us credit for taking this voluntary pledge. </li></ul>
    25. 26. Future Legislation <ul><li>Federal Issues </li></ul><ul><li>Minimum Wage </li></ul><ul><li>Universal Healthcare </li></ul><ul><li>Card Check </li></ul><ul><li>Employment Verification </li></ul><ul><li>Food Safety Act </li></ul><ul><li>State Issues : </li></ul><ul><li>Health Care </li></ul><ul><li>Menu Labeling </li></ul><ul><li>What Impact does this have on HR?????? </li></ul>
    26. 27. 2008 Elections <ul><li>U.S. Senate </li></ul><ul><li>-- Current: 51 Dems (+2 Independents); 49 GOP </li></ul><ul><li>-- 2008: 34 Senate Seats up: 22 GOP; 12 DEM </li></ul><ul><li>-- GOP Senators retiring in 6 states </li></ul><ul><li>U.S. House </li></ul><ul><li>-- Current: 233 Dems, 202 GOP </li></ul><ul><li>-- 2008: All 435 Seats up </li></ul><ul><li>-- Estimated 61 Seats are in “contested” Districts </li></ul><ul><li>The White House: TBD </li></ul><ul><li>Why Should We as HR Professionals Care????? </li></ul>
    27. 28. Line Item on “P & L” Statement SALES REVENUE $$$$$$$ -- Cost of Sales; Op. Expenses = INCOME from Operations $$$ -- Taxes (Income, Payroll, Real Estate) -- Federal Govt. Mandate -- State Govt. Mandate -- Local Govt. Mandate = NET PROFIT (Loss) $/ Red Ink?
    28. 29. Do the Math! Govt. Mandated Cost X 1 BK X 10 BKs (Min. Wage Increase) ($21,450) ($210,450) (Trans-fat Free Oils) ($4,000) ($40,000) (Pay Per Hour Health) ($140,000) ($1.4 mil) (Menu Board Labeling) ($1,000) ($10,000) (Pay for Health Inspections) ($300) ($3,000) (Form I-9/No-Match Errors) ($10,000) ($100,000) WOTC Tax Credit $2,400 $24,000 Estimated Total Costs ($150,000) ($1.5 mil)
    29. 30. HR Paradigm <ul><li>HR Capabilities-Grassroots Activities </li></ul><ul><li>ROI of HR-Financial Impact </li></ul><ul><li>Driving Business Success </li></ul><ul><ul><li>Get to know your legislators and key staff. </li></ul></ul><ul><ul><li>Visit offices in Capitol or districts. </li></ul></ul><ul><ul><li>Call or send letters/emails, submit testimony. </li></ul></ul><ul><li>Support campaigns of Pro-Business/Pro HR candidates. </li></ul><ul><li>Invite officials to visit your restaurants or speak at franchisee/employee meetings. </li></ul><ul><li>Support your Franchise Association/BKC PAC </li></ul>
    30. 31. Q&A <ul><li>Open Discussion </li></ul>
    31. 32. The End <ul><li>Thank you! </li></ul>

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