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Copyright © 2017 ADP, LLC. Proprietary and Confidential. 1
Post-Election: What are the Impacts?
Ellen Feeney VP, Legal Counsel
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 2
Disclaimer
This presentation is not:
• Legal advice
• The final word on today’s topics
• A political opinion
Before taking any actions on the information contained
in this presentation, employers should review this
material with internal and/or external counsel.
Before Taking Any Actions
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 3
Agenda
• ACA Repeal & Replace
• Reconciliation
• Administrative Actions
• Regular Order Bills
• The American Health Care
Act (AHCA)
• Changes to tax credits,
health savings accounts,
and ACA taxes
• Paid Sick Leave Movement
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 4
ACA Repeal and Replace
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 5
Health Care Reform
What is changing? What must employers do to comply?
2010 Affordable Care Act
Plan Design Reforms
Individual Mandate
Employer Mandate
Employer Reporting
Premium Tax Credits
Change in
Party
2017 Repeal and Repair?
Plan Design Reforms
Individual Mandate
Employer Mandate
Employer Reporting
Health Savings Accounts
Tax Credits
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 6
ACA Repeal & Replace Strategy
• Republicans have said they
will need to take several
steps to fully repeal and
replace the ACA (“three
buckets”)
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 7
Repeal & Replace – Reconciliation
• “Bucket One”
– Reconciliation
• Mirrors ACA’s passage
• Only can address revenue
items through reconciliation
– Not a true “repeal”
– Address as much
“replacement” as possible
through reconciliation
– Timing:
• Now
• GOP leadership hopes to
complete by early April
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 8
Repeal Using Reconciliation
BUDGET PASSAGE
The budget legislation directs
four committees,two in each
chamber, to recommend how
repeal shouldproceed.
COMMITTEES WRITE BILLS
Once the committees have
made their recommendations,
the budget committee in each
chamber will draft a repealbill.
MERGING THEBILLS
After undergoing the debate and amendment proceess, the two
bills will first receive an up-or-down vote in their respective
chambers. Because reconciliation only requires a simple majority in
each chamber, Republicans can afford 23 defections in the House
and two defections in the Senate. Once both bills pass, they will be
merged and passed again.
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 9
Repeal & Replace – Administrative Action
• “Bucket Two”
– Administrative/regulatory
actions
• Executive Order
• HHS/IRS/DOL regulations
– Administration will attempt to take
steps to stabilize insurance market
through this process
– Timing:
• As key confirmations in place:
– Tom Price (HHS)
– Steven Mnuchin (Treasury)
– Seema Verma (CMS)
– Alexander Acosta (DOL)
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 10
Repeal & Replace – Regular Order
• “Bucket Three”
– Regular Order
• Requires 60 votes in
Senate
• Bi-partisan cooperation
necessary
– Only way to address non-
revenue provisions in ACA
– Consensus shifting toward
piecemeal replace rather
than one comprehensive
replacement bill
– Timing:
• Later this year?
• Never?
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 11
American Health Care Act (AHCA)
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 12
AHCA Ways & Means Provisions:
Replace Subsidies, Repeal Most Taxes
• Employer and individual mandate penalties would be repealed
• ACA subsidies to be replaced with refundable tax credits
beginning in 2020
• Health savings accounts (HSAs) would be expanded beginning
in 2018
• Most of ACA’s taxes and fees would be repealed beginning in
2018
– 40 percent “Cadillac” tax on high-cost plans delayed until 2025, from 2020
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 13
ACA Subsidies Based
on Income, Costs
AHCA Fixed Credit
Amount Based on Age
ACA subsidies are based on the
federal poverty level (FPL):
One taxpayer can claim credits for
themselves and four family members,
with a $14,000 limit
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 14
AHCA Health Care Savings Accounts
Refundable
Tax
Credit
§ In addition to depositing their own
savings, individuals can opt to
have any leftover funds from
their age-based tax credit sent
to the HSA.
§ The plan also makes a host of other
changes to health savings
accounts to improve their use,
including expanding the size of
allowed contributions and a reduction
of the penalty for non-health-related
withdrawals.
§ The bill would also allow individuals
to pay for over-the-counter
medication with their HSA funds.
Insurance
Premiums
Health
Savings
Accounts
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 15
AHCA Energy & Commerce Provisions:
Change Coverage Rules, Provide New Grants
• Some health insurance coverage rules would be changed
– “Continuous coverage” requirement replaces the individual mandate
– Insurance plan metal tier system would be repealed
– Older people could be charged five times as much as younger
people, increased from three times
• “Patient and State Stability Fund” would be created
• Federal funding for Planned Parenthood would be prohibited
for one year from the bill’s enactment date
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 16
AHCA “Continuous Coverage” Requirement
How the “continuous coverage” requirement would work
If coverage is continuously maintained through
calendar year ... ... the individual can
re-enroll or enroll
in a new plan at the
standard price for
nextyear.Individuals can freely enroll in
insurance plans for 60 days
following a qualifying life event,
such as:
§ Loss of existing insurance
coverage
§ Marriage or divorce
§ Adoption or birth of a child
§ Major change in place of
residence or employment
+30%
PENALTY
If there is a gap in coverage
during the calendar year lasting
at least 63 continuous days ...
... insurers are allowed
to impose a 30 percent
increase in premiums for
one year.
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 17
Actuarial Requirements Repealed
Essential Benefits Remain
§ The bill repeals the ACA’s actuarial
requirements — which required insurers to
classify their plans as “bronze,” “silver,” or
“gold” depending on the share of health
costs covered by the plan.
§ Without these requirements in place,
insurers are free to offer cheaper plans
with higher out-of-pocket costs, similar to
the “catastrophic coverage” plans only
available to younger individuals under the
ACA.
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 18
New Fund to Incentivize States to
Improve Costs, Coverage
The AHCA appropriates $15 billion annually for the creation of a “Patient and State Stability
Fund” that would be awarded to state programs for any of the purposes below.
Provide financial
assistance to
high-risk individuals
Stabilize premiums
in the individual
insurance market
Reduce
coverage
costs
Promote insurer participation
for high-risk individuals in
the individual market
Promote access to
preventive services
Provide payments
to providers for
certain services
Reduce out-of-pocket
costs for insurance
enrollees
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 19
Other Provisions and Differences From
Earlier Drafts
The AHCA repeals many of the
taxes that funded the ACA, but
does not include a new
funding mechanism that was
included in prior drafts — a cap
on the tax exemption for
employer-sponsored
insurance beyond the
90th percentile of current
premiums, which would have
operated similarly to the ACA’s
Cadillac tax.
ACA TAXES REPEALED:
Tanning tax
Prescription drug tax
Health insurance tax
Net investment incometax
Taxes on employer-based premiums
Over-the-counter medication tax
Medical device excise tax
Medicare tax on unearned income
Additional hospital insurance tax on
high earners
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 20
What Remains?
• Prohibition on lifetime and
annual dollar limits
• Adult child coverage
mandate
• Limit on out-of-pocket
maximums
• Insured plan income
nondiscrimination standard
(to the extent the IRS lifts its
enforcement moratorium,
which seems unlikely before
2020 at the earliest)
• Required coverage for
routine costs for clinical trials
• ACA reporting standards
• Preventive service
mandate
• Ban on pre-existing
condition exclusions
• Provider nondiscrimination
requirements
• Section 1557
nondiscrimination
standards
• Ban on rescissions
• Excise tax on high-cost
plans a/k/a Cadillac tax
(eligible for repeal through
reconciliation, but retained
in the AHCA)
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 21
AHCA Proposed Reporting Standard
• Current ACA reporting to continue through 2019
– Reporting obligations (and penalties) would continue in
absence of relief until new tax credit is effective
• Effective 2020 and beyond, “simplified” reporting
of an offer of coverage on the Form W-2
• Question remains: How do you do this “simply”?
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 22
Best PracticesWhat Does This Mean?
You will continue to hear news about the future of the ACA
and about its repeal
Stay focused on meeting key compliance milestones
Continue to closely monitor legislative and regulatory
developments
Status
Quo
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 23
Best PracticesOutlook / Issues
Some parts of ACA may stay but what survives and what does not is
not clear; employers should comply with existing law
New rules could emerge to determine the value of all health benefits
New systems to report the value of health benefits for each
employee
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 24
Paid Sick Leave Movement
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 25
Paid Leave Benefits Are Growing
New paid leave laws being introduced
More large companies extending paid leave policies
Maternity/Paternity
Adoption
Fertility treatments
More paid leave will attract the “sandwich generations”
and dual-income families
Facebook:
Up to 20 days’ bereavement for immediate family, 10 days’ for
extended family
3 paid family sick days for short-term illness such as a child with flu
Up to 6 weeks’ paid family sick days to care for a family member per
year
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 26
How Confident Are You That Your Workforce
Completely Understands Your Benefits?
Source: ADP/HR.com webcast, Employment & Benefits Trends and the New Administration,
February 15, 2017, Polling Question Results
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 27
State Paid Sick Leave Laws Paid Sick and
Family Leave
Challenges
Laws vary significantly
by jurisdiction:
How is paid leave accrued?
Which workers are covered?
How can such leave be used?
How much notice is required?
Are there notice posting or
disclosure requirements?
Is there a maximum amount?
Does it roll over to subsequent
years?
When can it be used?
CACACA
OROROR
VTVTVT
MAMAMA
CTCTCT
WA
AZ
(eff. 1/1/18)
(eff 7/1/17)
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 28
Paid Sick Leave – Federal, States, and Local
• San Francisco, California (eff. 02/2007, amended eff. 01/2017)
• Seattle, Washington (eff. 09/2012, amended eff. 01/2016)
• Long Beach, California hotel workers, hotels with 100 or more rooms (eff. 11/2012)
• Portland, Oregon (eff. 01/2014)
• New York City (eff. 04/2014)
• Newark, New Jersey (eff. 05/2014)
• Connecticut (amended eff. 01/2015)
• Irvington, New Jersey (eff. 01/2015)
• Passaic, New Jersey (eff. 01/2015)
• East Orange, New Jersey (eff. 01/2015)
• Paterson, New Jersey (eff. 01/2015)
• Trenton, New Jersey (eff. 03/2015)
• Montclair, New Jersey (eff. 03/2015)
• Oakland, California (eff. 03/2015)
• Philadelphia, Pennsylvania (eff. 05/2015)
• Bloomfield, New Jersey (eff. 06/2015)
• California (eff. 01/2015)
• Massachusetts (eff. 07/2015)
• Emeryville, California (eff. 07/2015)
• Eugene, Oregon (eff. 07/2015 – preempted by state law 01/2016)
• Oregon (eff. 01/2016)
• City of New Orleans city contractors and grant recipients (eff. 01/2016)
• Santa Monica, California (02/25/2016)
• Elizabeth, New Jersey (eff. 03/2016)
• Pittsburgh, Pennsylvania (eff. 03/2016; on hold pending legal appeal)
• Los Angeles, California (eff. 07/01/2016)
• San Diego, California (eff. 07/11/2016, amended eff. 09/2016)
• Plainfield, New Jersey (eff. 09/2016)
• Montgomery County, Maryland (eff. 10/2016)
• Federal Contractors (eff. 01/2017)
• Spokane, Washington (eff. 01/2017)
• Morristown, New Jersey (eff. 01/2017)
• Vermont (eff. 01/2017 most employers)
• Arizona (eff. 07/2017)
• Minneapolis, Minnesota (eff. 7/1/2017)
• St. Paul, Minnesota (eff. 07/2017)
• Chicago, Illinois (eff. 07/2017)
• Cook County, Illinois (eff. 07/2017)
• Berkeley, California (eff. 10/2017)
• Washington State (eff. 01/2018)
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 29
Paid Sick Leave – Federal Contractors
> Minimum of 7 Days for employees of Federal Contractors
> Earn at least one hour for every 30 hours worked
> Must be provided upon oral/written request of employee
made 7 days in advance or soon as practicable
> Employer may only require certification from health care
provider for employee absences of 3 or more consecutive workdays
> Paid sick leave must carry over from one year to next
> Employer may not set a limit of paid sick time accrual
of less than 56 hours
> Order does not require payment of unused time upon
termination – but may be reinstated upon rehire
Executive
Order
effective
January 1, 2017
Copyright © 2017 ADP, LLC. Proprietary and Confidential. 30
Best PracticesOutlook
Understand the leave laws that apply to your business
Create written policies addressing leave entitlements and
the interplay with related laws
Monitor President Trump’s proposal that guarantees six
weeks of paid maternity leave by amending unemployment
insurance (UI) laws
Monitor the status of paid family leave legislation

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Post-Election: What are the Impacts? Ellen Feeney, Vice President, Legal Counsel

  • 1. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 1 Post-Election: What are the Impacts? Ellen Feeney VP, Legal Counsel
  • 2. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 2 Disclaimer This presentation is not: • Legal advice • The final word on today’s topics • A political opinion Before taking any actions on the information contained in this presentation, employers should review this material with internal and/or external counsel. Before Taking Any Actions
  • 3. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 3 Agenda • ACA Repeal & Replace • Reconciliation • Administrative Actions • Regular Order Bills • The American Health Care Act (AHCA) • Changes to tax credits, health savings accounts, and ACA taxes • Paid Sick Leave Movement
  • 4. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 4 ACA Repeal and Replace
  • 5. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 5 Health Care Reform What is changing? What must employers do to comply? 2010 Affordable Care Act Plan Design Reforms Individual Mandate Employer Mandate Employer Reporting Premium Tax Credits Change in Party 2017 Repeal and Repair? Plan Design Reforms Individual Mandate Employer Mandate Employer Reporting Health Savings Accounts Tax Credits
  • 6. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 6 ACA Repeal & Replace Strategy • Republicans have said they will need to take several steps to fully repeal and replace the ACA (“three buckets”)
  • 7. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 7 Repeal & Replace – Reconciliation • “Bucket One” – Reconciliation • Mirrors ACA’s passage • Only can address revenue items through reconciliation – Not a true “repeal” – Address as much “replacement” as possible through reconciliation – Timing: • Now • GOP leadership hopes to complete by early April
  • 8. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 8 Repeal Using Reconciliation BUDGET PASSAGE The budget legislation directs four committees,two in each chamber, to recommend how repeal shouldproceed. COMMITTEES WRITE BILLS Once the committees have made their recommendations, the budget committee in each chamber will draft a repealbill. MERGING THEBILLS After undergoing the debate and amendment proceess, the two bills will first receive an up-or-down vote in their respective chambers. Because reconciliation only requires a simple majority in each chamber, Republicans can afford 23 defections in the House and two defections in the Senate. Once both bills pass, they will be merged and passed again.
  • 9. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 9 Repeal & Replace – Administrative Action • “Bucket Two” – Administrative/regulatory actions • Executive Order • HHS/IRS/DOL regulations – Administration will attempt to take steps to stabilize insurance market through this process – Timing: • As key confirmations in place: – Tom Price (HHS) – Steven Mnuchin (Treasury) – Seema Verma (CMS) – Alexander Acosta (DOL)
  • 10. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 10 Repeal & Replace – Regular Order • “Bucket Three” – Regular Order • Requires 60 votes in Senate • Bi-partisan cooperation necessary – Only way to address non- revenue provisions in ACA – Consensus shifting toward piecemeal replace rather than one comprehensive replacement bill – Timing: • Later this year? • Never?
  • 11. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 11 American Health Care Act (AHCA)
  • 12. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 12 AHCA Ways & Means Provisions: Replace Subsidies, Repeal Most Taxes • Employer and individual mandate penalties would be repealed • ACA subsidies to be replaced with refundable tax credits beginning in 2020 • Health savings accounts (HSAs) would be expanded beginning in 2018 • Most of ACA’s taxes and fees would be repealed beginning in 2018 – 40 percent “Cadillac” tax on high-cost plans delayed until 2025, from 2020
  • 13. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 13 ACA Subsidies Based on Income, Costs AHCA Fixed Credit Amount Based on Age ACA subsidies are based on the federal poverty level (FPL): One taxpayer can claim credits for themselves and four family members, with a $14,000 limit
  • 14. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 14 AHCA Health Care Savings Accounts Refundable Tax Credit § In addition to depositing their own savings, individuals can opt to have any leftover funds from their age-based tax credit sent to the HSA. § The plan also makes a host of other changes to health savings accounts to improve their use, including expanding the size of allowed contributions and a reduction of the penalty for non-health-related withdrawals. § The bill would also allow individuals to pay for over-the-counter medication with their HSA funds. Insurance Premiums Health Savings Accounts
  • 15. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 15 AHCA Energy & Commerce Provisions: Change Coverage Rules, Provide New Grants • Some health insurance coverage rules would be changed – “Continuous coverage” requirement replaces the individual mandate – Insurance plan metal tier system would be repealed – Older people could be charged five times as much as younger people, increased from three times • “Patient and State Stability Fund” would be created • Federal funding for Planned Parenthood would be prohibited for one year from the bill’s enactment date
  • 16. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 16 AHCA “Continuous Coverage” Requirement How the “continuous coverage” requirement would work If coverage is continuously maintained through calendar year ... ... the individual can re-enroll or enroll in a new plan at the standard price for nextyear.Individuals can freely enroll in insurance plans for 60 days following a qualifying life event, such as: § Loss of existing insurance coverage § Marriage or divorce § Adoption or birth of a child § Major change in place of residence or employment +30% PENALTY If there is a gap in coverage during the calendar year lasting at least 63 continuous days ... ... insurers are allowed to impose a 30 percent increase in premiums for one year.
  • 17. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 17 Actuarial Requirements Repealed Essential Benefits Remain § The bill repeals the ACA’s actuarial requirements — which required insurers to classify their plans as “bronze,” “silver,” or “gold” depending on the share of health costs covered by the plan. § Without these requirements in place, insurers are free to offer cheaper plans with higher out-of-pocket costs, similar to the “catastrophic coverage” plans only available to younger individuals under the ACA.
  • 18. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 18 New Fund to Incentivize States to Improve Costs, Coverage The AHCA appropriates $15 billion annually for the creation of a “Patient and State Stability Fund” that would be awarded to state programs for any of the purposes below. Provide financial assistance to high-risk individuals Stabilize premiums in the individual insurance market Reduce coverage costs Promote insurer participation for high-risk individuals in the individual market Promote access to preventive services Provide payments to providers for certain services Reduce out-of-pocket costs for insurance enrollees
  • 19. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 19 Other Provisions and Differences From Earlier Drafts The AHCA repeals many of the taxes that funded the ACA, but does not include a new funding mechanism that was included in prior drafts — a cap on the tax exemption for employer-sponsored insurance beyond the 90th percentile of current premiums, which would have operated similarly to the ACA’s Cadillac tax. ACA TAXES REPEALED: Tanning tax Prescription drug tax Health insurance tax Net investment incometax Taxes on employer-based premiums Over-the-counter medication tax Medical device excise tax Medicare tax on unearned income Additional hospital insurance tax on high earners
  • 20. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 20 What Remains? • Prohibition on lifetime and annual dollar limits • Adult child coverage mandate • Limit on out-of-pocket maximums • Insured plan income nondiscrimination standard (to the extent the IRS lifts its enforcement moratorium, which seems unlikely before 2020 at the earliest) • Required coverage for routine costs for clinical trials • ACA reporting standards • Preventive service mandate • Ban on pre-existing condition exclusions • Provider nondiscrimination requirements • Section 1557 nondiscrimination standards • Ban on rescissions • Excise tax on high-cost plans a/k/a Cadillac tax (eligible for repeal through reconciliation, but retained in the AHCA)
  • 21. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 21 AHCA Proposed Reporting Standard • Current ACA reporting to continue through 2019 – Reporting obligations (and penalties) would continue in absence of relief until new tax credit is effective • Effective 2020 and beyond, “simplified” reporting of an offer of coverage on the Form W-2 • Question remains: How do you do this “simply”?
  • 22. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 22 Best PracticesWhat Does This Mean? You will continue to hear news about the future of the ACA and about its repeal Stay focused on meeting key compliance milestones Continue to closely monitor legislative and regulatory developments Status Quo
  • 23. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 23 Best PracticesOutlook / Issues Some parts of ACA may stay but what survives and what does not is not clear; employers should comply with existing law New rules could emerge to determine the value of all health benefits New systems to report the value of health benefits for each employee
  • 24. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 24 Paid Sick Leave Movement
  • 25. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 25 Paid Leave Benefits Are Growing New paid leave laws being introduced More large companies extending paid leave policies Maternity/Paternity Adoption Fertility treatments More paid leave will attract the “sandwich generations” and dual-income families Facebook: Up to 20 days’ bereavement for immediate family, 10 days’ for extended family 3 paid family sick days for short-term illness such as a child with flu Up to 6 weeks’ paid family sick days to care for a family member per year
  • 26. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 26 How Confident Are You That Your Workforce Completely Understands Your Benefits? Source: ADP/HR.com webcast, Employment & Benefits Trends and the New Administration, February 15, 2017, Polling Question Results
  • 27. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 27 State Paid Sick Leave Laws Paid Sick and Family Leave Challenges Laws vary significantly by jurisdiction: How is paid leave accrued? Which workers are covered? How can such leave be used? How much notice is required? Are there notice posting or disclosure requirements? Is there a maximum amount? Does it roll over to subsequent years? When can it be used? CACACA OROROR VTVTVT MAMAMA CTCTCT WA AZ (eff. 1/1/18) (eff 7/1/17)
  • 28. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 28 Paid Sick Leave – Federal, States, and Local • San Francisco, California (eff. 02/2007, amended eff. 01/2017) • Seattle, Washington (eff. 09/2012, amended eff. 01/2016) • Long Beach, California hotel workers, hotels with 100 or more rooms (eff. 11/2012) • Portland, Oregon (eff. 01/2014) • New York City (eff. 04/2014) • Newark, New Jersey (eff. 05/2014) • Connecticut (amended eff. 01/2015) • Irvington, New Jersey (eff. 01/2015) • Passaic, New Jersey (eff. 01/2015) • East Orange, New Jersey (eff. 01/2015) • Paterson, New Jersey (eff. 01/2015) • Trenton, New Jersey (eff. 03/2015) • Montclair, New Jersey (eff. 03/2015) • Oakland, California (eff. 03/2015) • Philadelphia, Pennsylvania (eff. 05/2015) • Bloomfield, New Jersey (eff. 06/2015) • California (eff. 01/2015) • Massachusetts (eff. 07/2015) • Emeryville, California (eff. 07/2015) • Eugene, Oregon (eff. 07/2015 – preempted by state law 01/2016) • Oregon (eff. 01/2016) • City of New Orleans city contractors and grant recipients (eff. 01/2016) • Santa Monica, California (02/25/2016) • Elizabeth, New Jersey (eff. 03/2016) • Pittsburgh, Pennsylvania (eff. 03/2016; on hold pending legal appeal) • Los Angeles, California (eff. 07/01/2016) • San Diego, California (eff. 07/11/2016, amended eff. 09/2016) • Plainfield, New Jersey (eff. 09/2016) • Montgomery County, Maryland (eff. 10/2016) • Federal Contractors (eff. 01/2017) • Spokane, Washington (eff. 01/2017) • Morristown, New Jersey (eff. 01/2017) • Vermont (eff. 01/2017 most employers) • Arizona (eff. 07/2017) • Minneapolis, Minnesota (eff. 7/1/2017) • St. Paul, Minnesota (eff. 07/2017) • Chicago, Illinois (eff. 07/2017) • Cook County, Illinois (eff. 07/2017) • Berkeley, California (eff. 10/2017) • Washington State (eff. 01/2018)
  • 29. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 29 Paid Sick Leave – Federal Contractors > Minimum of 7 Days for employees of Federal Contractors > Earn at least one hour for every 30 hours worked > Must be provided upon oral/written request of employee made 7 days in advance or soon as practicable > Employer may only require certification from health care provider for employee absences of 3 or more consecutive workdays > Paid sick leave must carry over from one year to next > Employer may not set a limit of paid sick time accrual of less than 56 hours > Order does not require payment of unused time upon termination – but may be reinstated upon rehire Executive Order effective January 1, 2017
  • 30. Copyright © 2017 ADP, LLC. Proprietary and Confidential. 30 Best PracticesOutlook Understand the leave laws that apply to your business Create written policies addressing leave entitlements and the interplay with related laws Monitor President Trump’s proposal that guarantees six weeks of paid maternity leave by amending unemployment insurance (UI) laws Monitor the status of paid family leave legislation