Hr Summit 03 26 09

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Legislative update for HR professionals in the Burger King System

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Hr Summit 03 26 09

  1. 1. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION
  2. 2. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>Environment </li></ul><ul><li>Worst economic crisis since the Great Depression: </li></ul><ul><ul><li>Current unemployment rate is 9%, highest in 12 years. It could rise to 10% in 2009. </li></ul></ul><ul><ul><li>Over 30 million have lost jobs since December 2007. </li></ul></ul><ul><ul><li>Federal deficit in 2008 was $455 billion and is predicted to be over $1 trillion in 2009. </li></ul></ul>Environment
  3. 3. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>Environment </li></ul><ul><li>U.S. is involved in two wars. </li></ul><ul><ul><li>President Obama has promised to bring troops home from Iraq in 16 months ... </li></ul></ul><ul><ul><li>… but will need to commit new resources to Afghanistan. </li></ul></ul>Environment
  4. 4. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>2008 Elections </li></ul><ul><li>High dissatisfaction with the status quo; desire for change. </li></ul><ul><li>More than 89% of voters who wanted “change” voted for Obama. </li></ul><ul><li>“ Change” mattered more than “experience.” </li></ul><ul><li>63% of voters said the economy was the top issue, followed by the Iraq War (10%) and health care (9%). </li></ul><ul><li>High expectations for an active Administration and Congress. </li></ul>2008 Elections
  5. 5. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>The Obama Administration </li></ul><ul><li>First weeks of presidency marked by high energy, high expectations, high degree of action and lots of decisions. </li></ul><ul><li>Will have “honeymoon” with the Congress which is typically 6 to 8 months but ... </li></ul><ul><li>Areas of initial focus: </li></ul><ul><ul><li>Getting Cabinet-level and senior executive branch confirmed. Most require Senate confirmation. </li></ul></ul><ul><ul><li>Stimulus package--$800-900 billion </li></ul></ul><ul><ul><li>Fiscal Year 2009 Appropriations </li></ul></ul><ul><ul><li>Financial bailout efforts </li></ul></ul><ul><ul><li>Wars in Iraq and Afghanistan </li></ul></ul>White House
  6. 6. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>The Obama Administration </li></ul><ul><li>Trying not to repeat mistakes of previous administrations: </li></ul><ul><ul><li>Focus only on priorities </li></ul></ul><ul><ul><li>Control the message </li></ul></ul><ul><ul><li>Change “climate” in Washington </li></ul></ul><ul><ul><li>Centrist agenda may not be the same as some of the more liberal Congressional leaders </li></ul></ul>White House
  7. 7. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>Congress </li></ul><ul><li>First time since 1993 that Democrats control the White House, the Senate, and the House of Representatives. </li></ul><ul><li>Democrats have almost the same majority margins in Congress as they did at the beginning of President Clinton’s first term (1993 – 1994). </li></ul><ul><li>In that Congress, the Senate had 56 Democrats and 44 Republicans. The House had 258 Democrats, 176 Republicans and 1 Independent. </li></ul><ul><li>In the current Congress, the Senate has 56 Democrats, 41 Republicans and 2 Independents. The House has 257 Democrats and 178 Republicans. </li></ul>U.S. Congress
  8. 8. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>We believe </li></ul><ul><li>“ Change” doesn’t necessarily mean that Washington will change the way it operates. </li></ul><ul><li>President Obama will govern from the middle, as he indicated he would during the campaign. </li></ul><ul><li>He is proving to be a pragmatic, data-driven leader. </li></ul><ul><li>This could be the most active Congress for HR public policy issues in 35 years. </li></ul><ul><li>Economic Stimulus Package will be debated well into February 2009. </li></ul><ul><li>Comprehensive Health Care Reform may not be debated until 2010. </li></ul>Prediction
  9. 9. <ul><li>Key Federal HR Issues </li></ul><ul><li>Equal Pay Protections / New Anti-Discrimination laws </li></ul><ul><li>Labor-Management Relations </li></ul><ul><li>Workplace Flexibility / Leave Benefits </li></ul><ul><li>Employment Verification in Immigration </li></ul><ul><li>Health Care Reforms </li></ul><ul><li>Tax Credits for Employer-Provided Education </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Key HR Issues
  10. 10. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>The Lilly Ledbetter Fair Pay Act </li></ul><ul><li>First law signed by President Obama, after swift passage by Congress in late January 2009. </li></ul><ul><li>Bill passed the Senate by a vote of 61 - 36; the House by a vote of 250 - 177. </li></ul><ul><li>Overturns 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>Civil Rights Issues
  11. 11. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>The new law amends Title VII of the 1964 Civil Rights Act, the ADA, ADEA, and the Rehabilitation Act. </li></ul><ul><li>It does away with the statute of limitations on pay discrimination claims. </li></ul><ul><li>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). </li></ul>Civil Rights Issues The Lilly Ledbetter Fair Pay Act
  12. 12. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>The new law will also re-start the time clock when a retiree receives a paycheck from an employer, and thus, keeps employers liable to a discrimination claim long after an alleged act of misconduct. </li></ul><ul><li>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. </li></ul>Civil Rights Issues The Lilly Ledbetter Fair Pay Act
  13. 13. <ul><li>Other Key Issues </li></ul><ul><li>Paycheck Fairness Act : Amends the Fair Labor </li></ul><ul><li>Standards Act to provide new remedies for victims of </li></ul><ul><li>pay discrimination on the basis of sex. </li></ul><ul><li>Employment Non-Discrimination Act: Would prohibit </li></ul><ul><li>employment discrimination on the basis of sexual </li></ul><ul><li>orientation. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Civil Rights Issues Civil Rights Issues
  14. 14. <ul><li>Labor-Management Relation Issues </li></ul><ul><li>Unions have been losing members for many years, but that trend appears to be ending. </li></ul><ul><li>Pressure to address union setbacks in court decisions. </li></ul><ul><li>Union-friendly legislation will be major focus by organized labor. </li></ul><ul><li>Example: Major national advertising blitz to pass “The Employee Free Choice Act” (also known as “Card Check”). </li></ul><ul><li>Legislation has been introduced in Senate. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relation Issues Labor-Management Relation Issues
  15. 15. <ul><li>Employee Free Choice Act (“EFCA”): What is it? </li></ul><ul><li>Amends the National Labor Relations Act to change the procedures under which employees choose to join or not to join a union. </li></ul><ul><li>Require the NLRB to certify and an employer to recognize a union if the union obtained signed authorization cards (card checks) from more than 50% plus 1 of the relevant collective bargaining unit. </li></ul><ul><li>Once a union is designated as the representative, the </li></ul><ul><li>employer would be required to enter into a collective </li></ul><ul><li>bargaining agreement with the union. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relation Issues Labor-Management Relation Issues
  16. 16. <ul><li>EFCA: What is it? </li></ul><ul><li>Requires the union and employer to enter into binding </li></ul><ul><li>arbitration on the terms of an agreement if the union and </li></ul><ul><li>the employer were unable to reach a contract within 120 </li></ul><ul><li>days (90 days of negotiations and 30 days of mediation on a first contract). </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relation Issues Labor-Management Relation Issues
  17. 17. <ul><li>EFCA: What is it? </li></ul><ul><li>The contract would be binding on the employer and union for 2 years. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relation Issues Labor-Management Relation Issues
  18. 18. <ul><li>EFCA: What is it? </li></ul><ul><li>Union contracts mean a drastic increase in Wage & Benefits lines in your P&L (salary, healthcare) as well as a complete loss of control in the areas of hiring, promoting, moving, suspending and terminating your employees, to say nothing of costs of labor lawyers. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relation Issues Labor-Management Relation Issues
  19. 19. <ul><li>EFCA: The Politics </li></ul><ul><li>Vote is essentially along party lines </li></ul><ul><li>Democrats need 60 votes to shut down debate (“Cloture”) </li></ul><ul><li>Democrats are short because 4 Democrats are on the fence and 1 Republican, Specter, said “no” </li></ul><ul><li>Lots of union commercials; a few anti-EFCA commercials </li></ul><ul><li>Let’s see some commercials. </li></ul>Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  20. 20. EFCA: What Can I Do About It? Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  21. 21. <ul><li>Tell your Representatives in Congress and in the Senate </li></ul><ul><ul><li>Meet with them in your home town </li></ul></ul><ul><ul><li>Call them, e-mail them, fax them </li></ul></ul>Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  22. 22. <ul><li>It’s easy to do a letter, fax or e-mail </li></ul><ul><ul><li>Go to myprivateballot.com </li></ul></ul><ul><ul><li>Go to restaurantactionnetwork.org </li></ul></ul><ul><ul><li>Go to uschamber.com/wfi </li></ul></ul><ul><ul><li>Call Congress at 202-________ and Senate at 202-________ </li></ul></ul>Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  23. 23. <ul><li>The websites know who your representative is even if you don’t! </li></ul>Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  24. 24. <ul><li>EFCA: What Can I Do About It? </li></ul><ul><li>[Insert screen shot of the “capwiz” function that easily creates an anti-card check communication] </li></ul>Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  25. 25. <ul><li>EFCA: What Can I Do About It? </li></ul><ul><li>[Insert quote about democracy and how members respond to constituent calls and letters. Discuss how Western Conservatives killed Comprehensive Immigration Reform with e-mails and faxes] </li></ul>Labor-Management Relations Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Labor-Management Relations Issues
  26. 26. <ul><li>Workplace Flexibility/Leave Benefits </li></ul><ul><li>Key issue during the presidential campaigns. </li></ul><ul><li>New FMLA regulations went into effect in January 2009. </li></ul><ul><li>Lots of “pressure” to expand FMLA benefits and require employers to provide paid sick leave. </li></ul><ul><li>Michelle Obama is reportedly concerned about the issue of “work-life balance.” </li></ul><ul><li>New White House task force was recently created headed by Vice President Biden. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Workplace Flexibility/Leave Benefit Issues Workplace Flexibility/Leave Benefit Issues
  27. 27. Healthy Families Act <ul><li>Identified as a key priority for the Senate Health Education Labor and Pension Committee Chair Ted Kennedy (D-MA). </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Workplace Flexibility/Leave Benefit Issues Workplace Flexibility/Leave Benefit Issues
  28. 28. <ul><li>Provides up to 7 days of paid sick leave for full time employees working more than 30 hours per week year-round or 1,500 hours. </li></ul><ul><li>Allows part-time employees working more than 20 hours per week or 1,000 hours to receive a pro rata share of paid leave. </li></ul><ul><li>Employees may accrue up to 7 days of sick leave annually. </li></ul>Workplace Flexibility/Leave Benefit Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Workplace Flexibility/Leave Benefit Issues
  29. 29. <ul><li>Leave may be used on an hour-by-hour basis or in the </li></ul><ul><li>smallest increment that the employer’s payroll system </li></ul><ul><li>tracks. Sick leave may be used for: </li></ul><ul><ul><li>A physical or mental illness of the employee; </li></ul></ul><ul><ul><li>A doctor’s visit or medical visit or diagnosis for the employee; </li></ul></ul><ul><ul><li>Caring for a child, a parent, or a spouse or any other individual related by blood or affinity that is the equivalent of a family relationship. </li></ul></ul>Workplace Flexibility/Leave Benefit Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Workplace Flexibility/Leave Benefit Issues
  30. 30. <ul><li>Employee may request leave orally or in writing and must provide 7 days of advance notice of the leave if foreseeable or as soon practical after the employee is aware of the need for the leave. </li></ul><ul><li>Allows an employer to meet an “equivalency test” if the employer offers a similar leave that covers the requirements of the Act. </li></ul><ul><li>Prohibits employers from eliminating existing leave coverage in order to comply with the Act. </li></ul><ul><li>Provides for a civil right of action against an employer for violations of the paid leave requirement. </li></ul>Workplace Flexibility/Leave Benefit Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Workplace Flexibility/Leave Benefit Issues
  31. 31. <ul><li>Other Key Issues </li></ul><ul><li>Family Leave Insurance Act: Provides 8 weeks of paid leave to employees for the types of leave permitted under the Family and Medical Leave Act. </li></ul>Workplace Flexibility/Leave Benefit Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Workplace Flexibility/Leave Benefit Issues
  32. 32. <ul><li>Employment Verification </li></ul><ul><li>Failed in the last Congress because both Republicans and Democrats were divided on the immigration issue. </li></ul><ul><li>More states are moving forward with verification rules of their own. </li></ul><ul><li>Comprehensive immigration reform is not likely until 2011 - 2012. </li></ul>Employment Verification Issue HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Employment Verification Issues
  33. 33. Employment Verification Issues <ul><li>E-Verify Extension </li></ul><ul><li>Employment verification system known as E-Verify expires on March 6, 2009. </li></ul><ul><li>Provision included in the Economic Stimulus Package (“American Recovery and Investment Act”) to reauthorize E-Verify for 4 years. </li></ul><ul><li>A lawsuit was filed to prevent a new requirement that all federal contractors must use E-Verify. </li></ul><ul><li>Pending regulations requiring federal contractors to use E-Verify have been delayed until May 21, 2009 as a result of the lawsuit. </li></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Employment Verification Issues
  34. 34. <ul><li>Health Care Reform Issues </li></ul><ul><li>Number 2 or 3 issue for the public. </li></ul><ul><li>President Obama has said health care reform would be one of his priorities, but other major issues, such as the Economic Stimulus Package, may delay action. </li></ul>Health Care Reform Issues HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Health Care Reform Issues
  35. 35. HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION <ul><li>Health Care Reform Issues </li></ul><ul><li>President Obama’s preferred reform plan is modeled after Massachusetts Health Care Plan: </li></ul><ul><ul><li>Require all children to have health insurance </li></ul></ul><ul><ul><li>Require all employers to offer employee health benefits or contribute to the cost of a new public program. </li></ul></ul><ul><ul><li>Expand Medicaid and SCHIP </li></ul></ul><ul><ul><li>Create the National Health Insurance Exchange through which small businesses and individuals without coverage could enroll in a new public plan. </li></ul></ul>Health Care Reform Issues
  36. 36. Health Care Issues <ul><li>American Recovery and Investment Act – </li></ul><ul><li>House COBRA Provisions </li></ul><ul><ul><li>Subsidy – Provides a 65% premium subsidy for up to 12 months for individuals who are eligible for COBRA health coverage due to loss of employment beginning September 1, 2008. </li></ul></ul><ul><ul><li>Extension – Employees age 55 or older or who have 10 or more years of service with their employer would be eligible for unsubsidized COBRA coverage until they become Medicare eligible. </li></ul></ul>HR PUBLIC POLICY IN THE NEW CONGRESS AND ADMINISTRATION Health Care Issues
  37. 37. <ul><li>[insert overall “CALL TO ACTION TO GET INVOLVED”] </li></ul>

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