Executive Order # 13706 – Paid Sick Leave

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Presented by Al Corvigno

President Obama signed Executive Order 13706 on September 7, 2015.  It requires that certain federal contractors provide employees with up to seven days of paid sick leave per year.   The proposed effective date of the order is January 1, 2017.

Under this Executive Order, federal contractors are required to provide affected employees with at least one hour of paid sick leave for every 30 hours worked and employees must be permitted to to accrue no less than seven days of sick leave each year.

The Order directs the Secretary of Labor to issue regulations by the end of September in 2016.   Those regulations will define more clearly the terms used in the Order and provide guidance to contractors.

There are certainly many issues that will need to be resolved and more discussions regarding this Order prior to the release of any regulations.

Click here to read Executive Order 13706 in its entirety.

Volunteers Are Not Covered by Workers Compensation

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Many non-profit organizations depend on volunteers for various functions and capacities. In some cases volunteers may be involved in strenuous and physical activities that are crucial for operations. Physical injury to the volunteer is a real possibility. It is important for non-profit organizations to understand that injuries to volunteers are not protected by Workers Compensation.

Workers Compensation insurance is a requirement for businesses and is designed to cover an employee’s medical expenses and lost wages as a result of a work related injury. Volunteers are not considered employees under the Workers Compensation laws for most states.

Volunteer Participant Accident insurance was developed to provide some level of medical, disability or death benefits for volunteers. This coverage will respond to injuries sustained by a volunteer during the course of their work for the non-profit. A wide range of benefit levels and options are available. The insurance is an important consideration for providing a level of protection to the volunteers who make operations possible. Let us know if you would like additional information regarding the product.

At Cleary, we will evaluate your business exposures and work with you to develop a comprehensive plan to safeguard your business. Give us a call today at 617-723-0700

President Signs PACE ACT Changing Small Group Definition

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On Oct. 7, 2015, President Obama signed The Protecting Affordable Coverage for Employees (PACE) Act that amends the Affordable Care Act (ACA) definition of a “small employer” for the purpose of purchasing health insurance coverage.

Small Group Market Expansion
Most states have historically defined “small employers” as those with 50 or fewer employees for purposes of defining their small group health insurance market. Effective for 2016 plan years, the ACA expanded the definition of a “small employer” to include those that employed an average of between one and 100 employees. The PACE Act eliminates the ACA’s new definition and gives states the option of expanding their small group markets to include businesses with up to 100 employees.

Summary
Obviously employers with well over 100 employees are not affected by this act, and employers with under 50 employees would generally be considered part of the small group market regardless of these changes. Employers in the range of 50-100 employees will need to consult with their employee benefits advisors and health insurance carriers to determine how this may impact their benefits and rates going forward.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your business objectives, takes into account state and federal laws, and capitalizes on incentives and innovative solutions now being offered.