2009 Legislative Overview

With the 111th Congress in session and inauguration of President-Elect Obama just days away, what can we expect in the coming months out of Washington?

Election Day 2008 resulted in significant gains for the Democratic Party, capturing the White House and increasing its hold on both the U.S. Senate and the House of Representatives. With that in mind, what legislative agenda are we likely to see in the coming days relating to dealings with employees. Below is a brief summary of three areas where we are likely to see action.

1. Health Care Reform - Agreement on how and when to tackle national health care reform remains elusive. With the recent government bailouts and talk of a new stimulus package to be enacted in the first 100 days of the new administration, funding to address system-wide health care reform seem limited. This and other factors seem to point to comprehensive reform legislation being postponed until the latter part of new administration's first term. In the mean time, look for action on consensus legislation such as health information technology and improved quality of care.
2. Workplace Flexibility - Since its inception, the Family Medical Leave Act (FMLA)has been subject to contradictory court decisions and Department of Labor opinion letters. In recent congresses, various expansions to FMLA have been proposed, including requiring FMLA to be paid leave. Given many Democrats strong support of FMLA, it is highly likely that we will see one or more proposals enacted into law. There is also a strong possibility for some type of legislation requiring employers with 15 or more full time employees to provide seven days of paid sick leave annually. President-Elect Obama endorsed the idea of paid sick leave during his acceptance speech for the Democratic nomination. Look for early action on this in the 111th congress.
3. Labor and Employment - The National Labor Relations Act of 1935 has been targeted for changes by labor organization and the allies in Congress since 2006. One Major proposal is the Employee Free Choice Act. (EFCA)This act would change the procedure by which employees choose whether or not to join a union. Specifically, the bill would mandate that a "card check" process be used in collective bargaining. It would compel an employer to recognize and bargain with a union if 50 percent plus-one of employees in the bargaining unit sign authorization cards in the support of that union. It would do away with the historical principal of a private vote being required in a unionization effort. Further, the EFCA would also only allow 120 days for an employer and union to negotiate a first contract before a government appointed arbitrator would assign a two year binding contract, binding on both parties. President-elect Obama has already committed himself to the EFCA legislation, so this bears keeping a close eye on in the coming months.

The moral of the story is that all employers should keep their ear tuned to what is happening in Congress over the next few months. The changes being proposed have the ability to change the way business relates to employees in ways we have not seen in many, many years.

For a compliance review of your employee policies and procedures, please give us a call.