Welcome to the Employment Law section of our webpage. Employment law issues are complex, often subject to state and local law (not ordinarily covered on CLIC pages) as well as federal law. This front page will reflect our most current information on employment law affecting educational institutions.
Executive Order Establishing New Minimum Wage for Federal Contractors, Feb. 12, 2014. Raises the minimum wage for employees working on federal goverment contracts to $10.10 per house beginning 1-1-15 and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor (Secretary).
Shared Responsiblity for Employers Regarding Health Coverage, Final Rule, 79 Fed. Reg. 8544, Feb. 12, 2014.
The regulations take effect on January 1, 2015, but are only partially applicable in 2015. They clarify the definition of "full-time employee" and provide safe harbors intended to make it easier for employers to determine whether the coverage they offer is affordable to employees. See the Treasury Department Fact Sheet for a short summary.
A Littler publication dated 2-24-14 by Ilyse Schuman notes the following of interest to IHEs:
Student employees: Hours of service do not include work performed by students in positions subsidized through the federal work study program or a substantially similar state or local program. However, hours of service for student interns who receive or are entitled to compensation from the employer would be included in the calculation to determine full-time employee status.
Adjunct faculty: The final regulations provide that, until further guidance is issued, employers of adjunct faculty are to use a method of crediting hours of service for those employees that is reasonable in the circumstances and consistent with the employer responsibility provisions. However, consistent with the request for a "bright line" approach suggested in a number of the comments, the final regulations expressly allow crediting an adjunct faculty member with 2 ¼ hours of service per week for each hour of teaching or classroom time as a reasonable method.
Delayed Implementation: For each calendar month during 2015 and any calendar months during the 2015 plan year that fall in 2016, employers with 100 or more full-time employees (including full-time equivalent employees) will not be subject to a penalty for failing to provide minimum essential coverage under Section 4980H(a) if the employer offers coverage to at least 70% (instead of 95%) of its full-time employees (and their dependents). Beginning in 2016, such an employer must offer coverage to at least 95% of its full-time employees (and their dependents) to avoid paying the penalty under Section 4980H(a).
See also the Gallagher Benefit Services Feb. 2014 article titled The Administration Again Delays the Employer Shared Responsiblity Mandate:
• Volunteers: Hours contributed by bona fide volunteers for a government or tax-exempt entity, such as volunteer firefighters and emergency responders, will not cause them to be considered full-time employees.
• Educational employees: Teachers and other educational employees will not be treated as part-time for the year simply because their school is closed or operating on a limited schedule during the summer.
• Seasonal employees: Those in positions for which the customary annual employment is six months or less generally will not be considered full-time employees.
• Student work-study programs: Service performed by students under federal or state-sponsored work-study programs will not be counted in determining whether they are full-time employees.
• Adjunct faculty: The final regulations provide as a general rule that, until further guidance is issued, employers of adjunct faculty are to use a method of crediting hours of service for those employees that is reasonable in the circumstances and consistent with the employer responsibility provisions. However, to accommodate the need for predictability and ease of administration and consistent with the request for a “bright line” approach suggested in a number of the comments, the final regulations expressly allow crediting an adjunct faculty member with 2 ¼ hours of service per week for each hour of teaching or classroom time as a reasonable method for this purpose.