On the Edge of Compliance - April 2019
The IRS is Allowing Employers to Recover HSA Contributions
Previously, the IRS allowed employers to recover HSA contributions in very limited situations, such as when the contribution exceeded the applicable annual limit. The new guidance will also allow employers to recover HSA contributions when there is clear documentary evidence showing there was an administrative or process error.
HHS is Extending the Transition Policy for Non-ACA Health Plans
The Department of Health and Human Services' existing transition policy for non-ACA compliant plans has been extended for an additional year. If the state allows it, issuers can now renew noncompliant coverage through 2020. Any plans that are renewed under this extended transition policy must comply with the specified requirements by Jan. 1, 2021. Learn more here!
Clarification on Employer Obligation to Designate FMLA Leave
An eligible employee’s absence for an FMLA-qualifying reason must be designated as FMLA leave. An employer may not delay this designation, even if an employee does not request FMLA leave because he or she is using paid leave for the absence. The absence must count against the employee’s annual FMLA leave entitlement. Continue reading here!
A Federal Court has Struck Down Association Health Plan Rules
On March 28, a federal judge ruled that parts of the Trump administration’s 2018 final rule on association health plans (AHPs) were invalid. The court directed the Department of Labor to reconsider how the remaining provisions of the final rule are affected. Employers and business owners without employees that have joined an AHP, or are considering doing so, should review how their plans may be affected by the court’s ruling.
The DOL is Issuing a New Proposal on Overtime Exemptions
The Department of Labor issued a proposed rule that would change the salary thresholds for the “white collar” overtime exemptions under the Fair Labor Standards Act (FLSA). Under the proposal, the minimum salary level for executive, administrative and professional employees would increase from $455 to $679 per week ($35,308 per year). These changes will not take effect until after a final rule is issued and employers are not required to comply with the proposal at this time.
Filed Under: Benefits Briefs