2014 Legislative Advocacy and Human Resources Practice Conference

Transcription

1 2014 Legislative Advocacy and Human Resources Practice Conference April 10 and 11, 2014 Day 1 Agenda April 10, 2014 Moderator: Tami Ireland, PHR, Lincoln Prairie Behavioral Health Center, Springfield 9:20 9:30 Welcome and opening announcements Tami Ireland, Lincoln Prairie Behavioral Health Center, Springfield 9:30-10:15 The playing field for federal HR public policy has largely shifted from a gridlocked Congress to emboldened executive agencies, as the Obama Administration has been very active at churning out rules and regulations that impact the workplace. Michael Layman will share the latest updates from Washington, DC on fiscal policy, health care, employment verification, labormanagement relations and more in this federal public policy presentation. Michael Layman, Littler Mendelson, Washington D C 10:30-11:15 Chamber Report on State Issues and discussing advocacy Jay Shattuck, Employment Law Council, Illinois Chamber of Commerce, Springfield 11:15-12:00 Changes in news consumption habits are reshaping the relationships among politicians, the people, and the press. Newspaper readership and revenue is in decline. Media organizations have responded by downsizing staff and curtailing ambition. Politicians and monied interests, meanwhile, have moved to fill the gaps, but rarely with the same standards of independence and objectivity. If democracy requires an informed citizenry, does it matter who's supplying the information? Brian Mackey, WUIS Statehouse bureau, Springfield 12:00-12:45 Lunch Provided 12:45-1:00 Info and direction for capital visit 1:30 -??? Legislative Advocacy at State Capital Travel to Capital for opportunity to speak with your elected official

2 2014 Legislative Advocacy and Human Resources Practice Conference April 10 and 11, 2014 Day 1 Handout Materials Moderator: Tami Ireland, PHR, Lincoln Prairie Behavioral Health Center, Springfield 9:20 9:30 Welcome and opening announcements Tami Ireland, Lincoln Prairie Behavioral Health Center, Springfield Michael Layman, Littler Mendelson, Washington D. C. The Playing Field For Federal HR Public Policy 9:30-10:15 The playing field for federal HR public policy has largely shifted from a gridlocked Congress to emboldened executive agencies, as the Obama Administration has been very active at churning out rules and regulations that impact the workplace. Michael Layman will share the latest updates from Washington, DC on fiscal policy, health care, employment verification, labormanagement relations and more in this federal public policy presentation. Michael Layman, Littler Mendelson, Washington D C Washington Insiders Briefing for HR professionals Springfield, IL Michael Layman, Littler s Workplace Policy Institute April 10,

3 Presented by: Michael Layman Senior Manager, Workplace Policy Institute Littler Mendelson, P.C. Washington, DC Littler s Workplace Policy Institute Web: Workplace Policy Update: 3 What WPI can do for your organization Deliver live presentations Present webcasts Produce PPT presentations for you Access to Littler attorney experts Littler GPS Littler s Legislative tracking Littler s Healthcare Reform Advisor Congressional and agency testimony Litigation support Amicus briefs Comment filings Legislative drafting and analysis Timely updates across all 50 states Newsletter articles for our clients/members publications White papers Studies Media outreach Meetings with policymakers Coalition leadership and counsel Workshops Briefings for stakeholders 4

4 Agenda Politics Fiscal Policy Labor-Management Relations Health Care Immigration Reform Employment Legislation 5 Politics in Congress 6 Politics Second-Term Jinx for President? Presidents tend to run into trouble during their second terms Second-term pitfalls among presidents: President G.W. Bush Clinton Reagan Nixon/Ford Kennedy/Johnson Pitfall Iraq War Lewinsky Scandal Iran Contra Scandal Watergate Scandal/Impeachment/Pardon Vietnam War Eisenhower Recessions in 1958 and 1960

5 Politics Second-Term Jinx for President? As a general rule, the president's party does poorly in midterm elections: Politics Divided 113 th Congress GOP-controlled U.S. House 233 Republicans 199 Democrats 3 Vacancies Dem-controlled U.S. Senate 53 Democrats 45 Republicans 2 Independents 9

6 Politics Secession?? On Tuesday, Nov. 5, voters in 6 of 11 conservative counties in Colorado voted in straw poll to break away from state In Sept., boards in two California counties, Siskiyou and Modoc, voted in favor of secession from state Illinois legislators have proposed secession from Chicago States of America?? 13

7 Fiscal Policy 14 Government shutdown, fiscal cliff, sequestration, etc. How did we get here? $17 trillion national debt $1 trillion+ annual federal budget deficit Bipartisan Budget Control Act of 2011 signed into law in August 2011 Raised debt limit Cut federal spending by $1 trillion over 10 years Created the Joint Select Committee on Deficit Reduction, the Super Committee Failure of Super Committee in Nov triggered $1.2 trillion sequester over next 9 years in discretionary and mandatory spending effective Jan $85 billion sequestration began on March 1, Labor-Management Relations 16

8 Politics Jobs report On Friday, April 4, the U.S. Department of Labor announced: Employers added jobs in March Unemployment rate is now 17 Politics Jobs report However, the labor participation rate of 62.8 percent is lowest since March 1978: 18 Unionization in decline Union membership rate 11.3 percent Down by 1.9 million workers since 2000 Union share of electorate down 30% since 2000 Only 7 million out of 14.4 million union members are private-sector workers 19

9 National Labor Relations Board Mark Gaston Pearce (D) Kent Hirozawa (D) Nancy Schiffer (D) Harry Johnson, III (R) Philip Miscimarra (R) General Counsel: Richard Griffin 20 National Labor Relations Board NLRB rule altering Representation Election Procedures ( Quick election rule or Ambush election rule ) STATUS: After a federal district court invalidated NLRB s quick election rule in May 2012, the NLRB re-proposed the rule in February Public hearings are April 10 and 11. NLRB rule requiring employers to post 11x17 notices STATUS: NLRB's Notice Posting Rule effectively void. The DC Circuit vacated rule in its entirety in NAM v. NLRB in May The Board's final recourse was Supreme Court review, but the Board failed to file its request for review by Jan. 2, National Labor Relations Board NLRB Specialty Healthcare decision STATUS: NLRB is regularly applying the Specialty "overwhelming community of interest test. On Aug. 15, 2013, Sixth Circuit upheld Specialty decision. Federal court challenge to NLRB recess appointments STATUS: In Jan. 2013, D.C. Circuit ruled in Noel Canning that appointments were unconstitutional. Supreme Court heard oral arguments this term. 22

10 National Labor Relations Board Northwestern University v. College Athletes Players Association Northwestern University football players receiving scholarships are employees within the meaning of federal labor law and may unionize, NLRB regional director said in March 26 decision 23 Department of Labor Sharon Block David Weil WHD Secretary Thomas Perez Michael Hayes OLMS 24 Department of Labor Office of Labor-Mgmt Standards Persuader Rule Currently under the Labor-Management Reporting & Disclosure Act of 1959, employers and outside labor relations consultants must file disclosure reports regarding persuading employees Employer report LM-10 Labor consultant reports LM-20 and LM-21 25

11 Persuader rule: Department of Labor Would effectively eliminate the advice exemption DOL regulatory agenda scheduled publication of Final Rule in Nov. 2013, then March 2014, then. 26 Health Care Reform 27 Health care Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act (PPACA) in June 2012 Obama Administration delayed PPACA s employer mandate in July 2013 Open enrollment began October 1, 2013 March 31, 2014 deadline was extended 28

12 Health care What changes to PPACA have already happened? In 2011, Congress unanimously repealed the requirement that businesses must report to the IRS on Form 1099 all transactions of $600 or more In 2011, Administration cancelled CLASS Act, the long-term-care insurance program that would have been available to anyone In 2013, Administration delayed employer mandate 29 Health care What other changes to PPACA may be ahead? Individual mandate (H.R.2667, Authority for Mandate Delay Act would delay until 2015 the requirement that individuals maintain minimal essential health care coverage) $2500 FSA cap (S. 24, Small Business Health Relief Act would repeal the limitation to $2,500 of annual salary reduction contributions by an employee to a health flexible spending account) Definition of full-time worker (H.R. 2988/S. 1188, Forty Hours is Full Time Act would define a "fulltime employee" as an employee who is employed on average at least 40 hours per week) 30 Health care in wake of DOMA decision Supreme Court deemed unconstitutional DOMA's definition of marriage for the purpose of federal benefits in its June 2013 decision in U.S. v. Windsor IRS rule became effective in Sept 2013 same-sex couples legally married in states that recognize their marriage will be treated as married for federal tax purposes Dept of Labor fact sheet employees in same-sex relationships are eligible to take time off work to care for an ailing spouse under FMLA 31

13 Immigration Reform 32 Immigration reform States that require all or some employers to enroll in E-Verify: 33 Immigration reform Gang of Eight in Senate If enacted, any legislation will likely: 1) mandate employment verification 2) provide path to citizenship 3) create new visa category 34

14 Immigration reform Gang of Eight Member of the Gang of 8, which unveiled Supports non-deportation of illegal immigrants bipartisan immigration reform legislation in the brought to the U.S. as children Senate Sponsor of the DREAM Act Sponsor of Immigration Innovation Act of 2013 Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the Marco Rubio Dick Durbin Senate (R-Fla.) (D-Ill.) Member of the Gang of 8, which unveiled Supports creation of pathway to earned bipartisan immigration reform legislation in the citizenship Senate Member of the Gang of 8, which unveiled Has voted to oppose the DREAM Act bipartisan immigration reform legislation in the Senate John McCain Chuck Schumer (R-Ariz.) (D-N.Y.) Member of the Gang of 8, which unveiled Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the bipartisan immigration reform legislation in the Senate Senate Supports creation of temporary worker program Supports measures to help foreigners studying science, engineering, technology or math work Jeff Flake Michael Bennet in the U.S. (R-Ariz.) (D-Colo.) Member of the Gang of 8, which unveiled Member of the Gang of 8, which unveiled bipartisan immigration reform legislation in the bipartisan immigration reform legislation in the Senate Senate Has voted to oppose the DREAM Act Co-sponsor of the DREAM Act Lindsey Graham Bob Menendez (R-S.C.) (D-N.J.) 35 Border Security, Economic Opportunity and Immigration Modernization Act (S. 744) STATUS: Senate passed bill on June 27, 2013 Senate bill s new system is Form I-9 plus mandatory E- Verify Would require all employers to use E-Verify within 5 years Photo matching: As part of the E-Verify system, every non-citizen will be required to show biometric work authorization card or biometric green card 36

15 House immigration bills H.R. 1772, the "Legal Workforce Act Requires all U.S. employers to enroll in E-Verify H.R. 2131, the STEM Visas Act Provides 55,000 green cards per year to employee for foreign graduates of U.S. universities Increases H-1B visa cap to 155,000 H.R. 1417, the Border Security Results Act Requires Dept. of Homeland Security to develop a comprehensive strategy to secure all U.S. borders 37 Federal Public Policy Update Employment Legislation 38 Employment Non-Discrimination Act (ENDA, S. 815/H.R. 1755) Introduced by Sen. Jeff Merkley (D-OR), Rep. Jared Polis (D-CO) ENDA would prohibit employment discrimination on the basis of sexual orientation or gender identity Bill passed with Portman amendment related to religious organization exemption, preventing government retaliation against such employers STATUS: U.S. Senate passed ENDA in a vote on Thursday, Nov. 7. Unlikely to pass House. 39

16 Fair Minimum Wage Act (S. 460/H.R. 1010) Introduced by Sen. Tom Harkin (D-IA) and Rep. George Miller (D-CA) Bill would amend the FLSA to raise the hourly minimum wage in the following increments: $8.20 an hour 90 days after enactment, $9.15 an hour 12 months after enactment and $10.10 an hour 24 months after enactment Indexed annually to inflation based on the Consumer Price Index 36 months after enactment STATUS: U.S. Senate expected to consider S. 460 before the end of Working Families Flexibility Act (H.R. 1406) Comp time bill introduced by Rep. Martha Roby (R-AL) Legislation would allow private-sector employers option of offering hourly employees the choice of compensatory time off or pay for overtime hours worked Employee must have worked 1,000 hours in last 12 months Would allow employees to accrue up to 160 hours of comp time per year and to cash out unused comp time STATUS: U.S. House passed H.R on May 8, Unlikely to pass Senate. 41 THANK YOU! Michael Layman, Littler s Workplace Policy Institute MLayman@Littler.com

17 Jay Shattuck, Employment Law Council, Illinois Chamber of Commerce, Springfield Chamber Report on State Issues 10:30-11:15 Chamber Report on State Issues and discussing advocacy Jay Shattuck, Employment Law Council, Illinois Chamber of Commerce, Springfield llinois employers cannot afford another minimum wage increase The Illinois employers as represented by the organizations below, and their members in Illinois, have not wavered and are speaking with one voice: Illinois employers cannot afford another minimum wage increase. Illinois already has a minimum wage higher than all of our neighboring states and we are tied for the sixth highest minimum wage in the country. If Illinois were to pass a $10 minimum wage, that amount would almost double the rate since only This is far too drastic. While the national unemployment rate continues to drop, Illinois is easily the highest in the Midwest and fourth highest in the country. Another minimum wage increase will only make hiring entry-level workers more difficult, and keep people who need these jobs, especially young people out of work. The number of teens with a job in Illinois has fallen consistently over the last ten years leaving only about a quarter currently employed. Younger workers in urban areas fare even worse; less than one in ten African American teens in Chicago are employed. Chicago s Hispanic and Caucasian teens also face difficulty finding work, but they are statistically more than twice as likely as the city s African American teens to be receiving the experience of a paycheck. The result is a significant number of young people are not gaining the basic and valuable work experience to propel them up the economic ladder in the future. The National Restaurant Association notes that nine out of ten salaried restaurant workers, including owners and managers, started as hourly workers. Inexperienced employees have the ability to garner the necessary skills to advance and earn higher wages. Another minimum wage increase will deny them those skills and their start on the economic ladder. A broad coalition of Illinois employers and their associations are unified in opposition to an increase in the minimum wage:illinois Retail Merchants Association National Federation of Independent Business Chicagoland Chamber of Commerce Illinois Chamber of Commerce Illinois Association of Convenience Stores Illinois Petroleum Marketers Association Hospitality Business Association of Chicago

18 Illinois Beverage Association Illinois Manufacturers Association Illinois Farm Bureau Illinois Food Retailers Association Illinois Hotel & Lodging Association Illinois Licensed Beverage Association Illinois Lumber & Material Dealers Association IL State Council of Society for HR Management Midwest Equipment Dealers Association Midwest Hardware Association Six Flags Great America Technology Manufacturing Aligned Automotive Parts & Service Association of Illinois # # # Oppose Forcing Small Businesses to Set Up Retirement Accounts (SB 2758, HB 4595) SB 2758 (Sen. Biss) and HB 4595 (Rep. Currie) would mandate that employers set up an automatic Individual Retirement Account for their employees, a system to be administered by the Illinois Dept. of Revenue and a newly created Board led by the Illinois Treasurer. The legislation targets small businesses with 10 or more employees and forces them to not only set up the accounts but also automatically deduct at least 3% from their employees paychecks. An employee would have to actively pursue opting out if they did not want to participate. Business OPPOSES these bills for the following reasons: It is a mandate on employers, not an option. Small businesses currently have a variety of private sector options they may choose to participate in for retirement purposes. We strongly believe this decision should not be made by government but by the employer. Small employers will potentially face additional costs for the payroll deductions if they use a payroll service, or face additional administrative costs if they do payroll themselves. Many workers may not want, nor can afford, the 3% automatically taken from their paychecks. If they become unhappy either with the deduction or the plan itself, the employer will bear the brunt of their unhappiness causing added friction in the workplace.

19 We have a robust private sector marketplace for retirement products. This bill could potentially take a significant chunk of small and medium-sized employers out of the private sector market and into a government-run program. This new paperwork requirement comes at a time when business owners are being deluged with new rules and regulations particularly with Obamacare and the SMART Act. Business owners are buried in state and federal paperwork, and this will add to that burden. The money from participants would not be held in or managed by a depository institution or a trained financial professional, it instead would be deposited into a new government holding account to be invested potentially by state officials. The consumer losses suffered under the 529 College savings plans (not to mention the state s massively underfunded pensions) are reason enough to oppose implementing yet another government-run investment program. OPPONENTS: Automotive Parts & Service Assn. of IL Chicagoland Chamber of Commerce Community Bankers Assoc. of Illinois Illinois Bankers Association Illinois Chamber of Commerce Illinois Life Insurance Council Illinois Manufacturers Association Illinois Retail Merchants Association IL State Council of Society for HR Management Independent Insurance Agents of Illinois Mid-West Truckers Association Natl. Assoc. of Insurance & Financial Advisors National Federation of Independent Business Southwestern Illinois Employers Association State Farm Technology & Manufacturing Association

20 Advocacy 101 Key Issues Under the State House Dome Shattuck & Associates Consulting, Inc. Objective Help ILSHRM members inform and influence legislators and other key players in Springfield. How and what to focus on when communicating to your legislator Overview of key issues Shattuck & Associates Consulting, Inc. Politics ought to be the part-time profession of every citizen. President Dwight Eisenhower Definition of politics Poli: Greek for many Tic: blood sucking insect It s a bloodsport! Shattuck & Associates Consulting, Inc.

21 Shattuck & Associates Consulting, Inc. Those who are too smart to engage in politics are punished by being governed by those who are dumber Plato Active & Engaged Members Relationships identified, members informed and calls to action responded to Get to know those who influence decisions First, know who your legislators are Second, how do they fit into the scheme of Springfield/HR Issues Member of the House and Senate Labor Committee? Member of the House and Senate Judiciary Committee? General Assembly Leader? Third, get informed and get engaged Okay, you've convinced me Now go out there and bring pressure on me. - President Franklin D. Roosevelt speaking to a constituent group How to Approach the Process Working with Members of the General Assembly OK: Make a call or send an to discuss the impact of an issue on your company Better: Hold a meeting in the District with your legislator(s) to discuss issues that are helping or harming your company s success Best: Invite legislator(s) to meet with you at your facility and show them the economic value & positive impact your company brings to the area Shattuck & Associates Consulting, Inc. Do s Do know who represents you. You can obtain this information from the Illinois State Board of Elections - Keep phone numbers and addresses handy. ( Do identify yourself by name and organization when talking with an elected official Do state a clear and concise message. Avoid broad statements and focus on what action you are asking for vote yes on SB 2624 Do explain why the issue. is important to your company. If possible, link the issue to an experience or a situation. (For example, how an employee abused a company benefit.) Do be aware of previous actions the official has taken on the issue. Do get to know your elected officials. Make an effort to appear at town meetings and other events, and be sure they hear you ask at least one question on a key issue for your company. Shattuck & Associates Consulting, Inc.

22 Do s Continued Do provide background about your company and its makeup. To give your cause additional clout, mention how many employees there are in the district and how your company is engaged in the community. Do get to know and develop a working relationship with key people Legislators listen to opinion leaders, so work with them whenever possible. Do join forces with other companies that may have the same position as you Do get involved in legislative campaigns. Volunteer to work, place a campaign sign in your yard, hand out leaflets, or otherwise help get someone elected. Do learn how to work with your local press by developing a relationship with reporters and editors. Do respond to action alerts. Alerts are usually sent when legislation is close to passage or in a precarious position, so your action can make a tremendous difference. Do provide feedback to your organization. This helps the organization determine the effectiveness of the strategy and assist your lobbyist in their effectiveness. Shattuck & Associates Consulting, Inc. Don t Don't threaten or antagonize a legislator even if he or she deserves it. If an elected official opposes your viewpoint, but respects you and bears you no animosity, you may find common ground in the future on another issue. But if you make an enemy, that person may take extra steps to oppose you and your organization and your issues. Don't make enemies. Today's lawmaker can be tomorrow's governor. Don't refer to legislation alone. Describe the issue and why it is important to your company. Don't fail to listen to elected official's comments and questions. If he/she asks how the funding will impact the budget or other programs, you'll know where his/her concern is focused. Be prepared with ways to address those issues. Shattuck & Associates Consulting, Inc. Don t continued Don't overwhelm a legislator with too much information or paperwork. They don't have time for it. Provide them with highlights and be ready to supply any other needed information. Don't be inflexible. Sometimes we have to compromise. Don't forget to thank a legislator who was helpful. Whenever possible, let others in your organization know how helpful the legislator has been. Don't use terms or abbreviations that may be unfamiliar to an official without explaining their meaning. Don't ever lie to or mislead a legislator Trust is essential. If you don t have an answer, tell them you will get back to them with one. Shattuck & Associates Consulting, Inc.

23 Key Issues Senate Minimum Wage Increase: SB 68, as amended Sponsor: Sen. Kimberly Lightford (D-Chicago)/14 democrat co-sponsors Status as of April1: Senate Second Reading Mandated Retirement Plan: SB 2758, as amended Sponsor: Sen. Daniel Biss (D-Evanston)/16 democrat co-sponsors Status as of April 1: Senate Second Reading Workers Compensation Safety: SB 3287 Sponsor: Sen. Kwame Raoul (D-Chicago) Status as of April 1: Senate Second Reading Shattuck & Associates Consulting, Inc. Key Issues House Pregnancy Discrimination HB 8, as amended Sponsor: Rep. Mary Flowers and 14 democrat co-sponsors Status as of April 1: House second reading FMLA for Grandparents HB 4272 Sponsor: Rep. Robin Gabel (D-Evanston)/15 democrat co-sponsors Status as of April 1: House second reading Ban the Box HB 5701, as amended Sponsor: Rep. Rita Mayfield (D-Waukegan)/4 democrat co-sponsors Status as of April 1: House second reading Shattuck & Associates Consulting, Inc. President Abraham Lincoln While the people retain their virtue, and vigilance, no administration, by any extreme of wickedness or folly, can very seriously injure the government, in the short space of four years. Shattuck & Associates Consulting, Inc.

24 Brian Mackey, WUIS Statehouse bureau, Springfield Changes in news consumption habits 11:15-12:00 Changes in news consumption habits are reshaping the relationships among politicians, the people, and the press. Newspaper readership and revenue is in decline. Media organizations have responded by downsizing staff and curtailing ambition. Politicians and monied interests, meanwhile, have moved to fill the gaps, but rarely with the same standards of independence and objectivity. If democracy requires an informed citizenry, does it matter who's supplying the information? Brian Mackey, WUIS Statehouse bureau, Springfield NOTES

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26 Speaker Bios Day 1 Michael Layman is Senior Manager with Littler s Workplace Policy Institute (WPI). WPI is an effective resource for the employer community to engage in legislative and regulatory developments that impact their workplaces and business strategies. In this role, Michael tracks public policy that affect the workplace and promotes Littler shareholders policy work in Washington. He will be a key contact for WPI with association executives and Capitol Hill staff. Prior to joining Littler, Mr. Layman worked at the Society for Human Resource Management (SHRM) as Manager of Employment and Labor Policy from January 2007 to August Michael promoted SHRM s views on employment, labor relations, and civil rights legislation with House and Senate offices and the Administration. He led multiple national coalitions on employment and labor policy, including serving as Chair of the National Coalition to Protect Family Leave, a coalition of companies and associations that supported public policy that promotes voluntary, employer-provided leave benefits. He has delivered speeches around the country on public policy issues, and has been interviewed by numerous national publications on human resource policy. From 2001 to 2007, Mr. Layman worked on Capitol Hill, where he served as Legislative Director for U.S. Representative Tim Murphy of Pennsylvania and Professional Staff Member of the House Government Reform Committee staff under committee chair, U.S. Representative Tom Davis of Virginia. Michael earned a Bachelor s degree from the University of Illinois, a Master of Public Administration and Policy from Virginia Tech and a Master of Business Administration from Georgetown University. Jay Shattuck Jay serves as Executive Director of the Council, an organization that he founded in The Council brings together employers to improve and protect Illinois employment law and regulations to create a political climate conducive to the creation and retention of jobs in Illinois. Jay has held high-profile, senior level lobbying positions with the Associated Employers of Illinois ( ), Central Illinois Public Service Co. ( ) and the Independent Insurance Agents of Illinois ( ). Shattuck is a graduate of the University of Illinois with a Bachelors Degree in Political Science and is a Certified Association Executive (CAE Brian Mackey, WUIS Statehouse bureau, Springfield - Brian Mackey covers state government and politics for WUIS-FM in Springfield and a dozen other NPR stations across Illinois. Before that, he was Arts & Entertainment editor at Springfield s State Journal-Register newspaper, and Springfield bureau chief for the Chicago Daily Law Bulletin.