Page 2 - The Edge - Winter 2017

Did your team set

NEW YEAR’S RESOLUTIONS?

While New Year’s resolutions often range from losing weight to spending less money, they
often also include setting professional goals. For those of us who work in and around employee
benefits, setting resolutions starts with us reviewing things that have happened (or not
happened) in 2016 to determine what resolutions we may need to make, what benefit plan
updates we should consider, and to evaluate our processes and practices as we look ahead for
this new year. Our focus here will be non-Affordable Care Act (ACA) related employee benefits
compliance. Yes, believe it or not, things continue to happen outside the realm of ACA!

New White Collar Exemption Rules Veteran HSA Eligibility
The federal Fair Labor Standards Act (FLSA) requires IRS guidance previously disqualified veterans from
that most covered employees be paid at least the making health savings account (HSA) contributions
federal minimum wage for all hours worked and in any month if the individual received Veteran
overtime pay at time and one-half the regular Affairs (VA) medical benefits at any time during
rate of pay for all hours worked over 40 hours the previous three months. By 2017, individuals
in a workweek. However, Section 13(a)(1) of the will receive VA medical benefits and remain HSA
FLSA provides an exemption from both minimum eligible — provided they are receiving benefits at
wage and overtime pay for bona fide executive, the VA for preventative services or services related
administrative, professional, and outside sales to the employee’s “service-connected disability.”
employees. Section 13(a)(1) and section 13(a)(17) Accordingly, employers may have to modify not
also exempt certain computer employees. These only their plan designs to accommodate this
exemptions are generally referred to collectively as change, but also modify open enrollment and
the “white collar” exemptions. On May 23, 2016, employee communication surrounding their HSA
the U.S. Department of Labor published a final eligibility.
rule updating the regulations regarding the white
collar exemptions. The final rule went into effect EEOC Proposed ADA and GINA Rules
on December 1, 2016. Last year the Equal Employment Opportunity
Commission (EEOC) issued proposed guidance on
Important: On November 22, 2016, a federal district the application of the American with Disabilities
court in Texas granted a preliminary injunction Act (ADA) to employer wellness programs. Then
that temporarily blocks the U.S. Department of the EEOC issued more proposed guidance relating
Labor (DOL) from implementing and enforcing its to employer wellness programs, this time under
recent final rule. Employers should note that this the Genetic Information Nondiscrimination Act
is only a temporary injunction, not a permanent (GINA). Although both sets of guidance are still
one. The injunction applies nationwide and simply in the proposition stage, employers that have or
prevents the regulations from going into effect on are thinking about implementing a wellness plan
December 1. There will be a decision issued at a should be aware of the impact these proposed
later date on the actual merits of the case. rules have and be ready to adjust their plans as
necessary.
Same-Sex Marriage
On June 26, 2015 the Supreme Court ruled the Researchers have long agreed that the best way
constitution guarantees the right to marry, striking to stick with your resolutions through the new year
down all state bans on same-sex marriage. is to plan ahead, set realistic goals and write your
Though not an employee benefits ruling directly, goals down. Remember a goal not in writing is
this decision impacts employee benefits in simply a wish. Best of luck as you start the new year
eligibility, taxation and domestic partner benefits and remember we are here to help you achieve
considerations. Employers should understand what your health and benefit resolutions!
impact this ruling has on their employee benefits
programs and payroll practices, and determine
if changes are warranted. For example, does it
make sense to continue to offer domestic partner
benefits now that same-sex couples may marry?
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