SLF LABOR AND EMPLOYMENT ALERT February 2009

Stimulus Bill Expands COBRA Benefits

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“ARRA”) (H.R. 1). While ARRA is multi-faceted, and affects employers in many different ways, one key component is the expansion of COBRA continuation coverage benefits for displaced workers. Key components of ARRA relative to COBRA are as follows:

(1) The Federal Government will pay 65% of the COBRA premium for employees laid off from September 1, 2008 through December 31, 2009. This subsidy is available for up to 9 months. Instead of paying 102% of the premium, involuntarily terminated employees will now only be responsible for 35% of the premium.

(2) The subsidy is not available to employees with an adjusted gross income of between $125,000 and $145,000 (for individuals) or $250,000 to $290,000 (for couples), and to those employees who are fired for gross misconduct.

(3) Employers will pay for the subsidy through reduced payroll taxes remitted to the Federal Government.

(4) Employees who were voluntarily terminated after September 1, 2008 who previously declined COBRA benefits must be given the opportunity to do so again.

(5) Employers must send notices to affected employees, which must describe the new premium arrangement, the duration of the arrangement, and, if the employer normally permits COBRA qualified beneficiaries to participate in alternative coverage, an explanation of the employee’s option in this regard. The additional election period notices must be sent within 60 days of ARRA’s effective date, or by April 18, 2009. ARRA also directs the U.S. Department of Labor to promulgate model notices within 30 days of its passage.

Additional information may be found on the Department of Labor’s website: www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=40550&Bill Text=617&HouseChamber=H&SessionId=61&.

Proposed Constitutional Amendment Would Set Minimum Teacher Salaries

HB 617, a joint resolution of the Florida Legislature, proposes to amend the Florida Constitution to set minimum salaries for new and experienced full-time public school teachers. If the amendment is proposed to the electorate and passed, the new minimum salaries for teachers would have to meet the national average for teacher salaries beginning in 2012. Link: www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=40550&Bill Text=617&HouseChamber=H&SessionId=61&.

Fired Worker Sues Under Florida’s “Take Your Gun to Work” Law

A fired worker has filed suit under Florida’s concealed weapons law. The lawsuit has been filed in Broward County Circuit Court and alleges that the employee, Steven Collazo, was fired illegally for having a weapon in his car at work. For more on the lawsuit, see: http://www.miamiherald.com/news/
florida/story/877258.html.

Federal Court Finds that FLSA Applies to Illegal Aliens

The U.S. District Court for the Southern District of Florida recently found that the overtime provisions of the Fair Labor Standards Act apply to illegal alien workers. In Galdames v. N&D Investment Corp., the court noted that it found it “hard to fathom that, because the two Plaintiffs are illegal aliens, they are not entitled to the protections afforded by the FLSA.” The court granted the employees’ motion for summary judgment and scheduled future proceedings to determine the amount of overtime they are due.

Florida Department of Financial Services Proposes Overhaul of Rules
on Self-Insured Workers’ Compensation Programs

The Florida Department of Financial Services has proposed rules that would overhaul self-insured workers’ compensation programs. The stated purpose of the new rule package is: (1) the promotion of clarity and efficiencies to the process by which self-insured employers comply with the duties and obligations set forth in Chapter 440, Florida Statutes; (2) the clarification of the scope of self-insurance authorization, the required filings, record maintenance and audit processes for self-insurers, the self-insurance process for both governmental entities and members and former members of the Florida Self-Insurers Guaranty Association, Inc., and the application process for and regulations regarding servicing entities; and (3) the adoption of forms for utilization with the new rules (69L-5.231).

The proposed rules also impact employers who have implemented a drug-free workplace program. Proposed Rule 69L-5.220 requires that certain certifications regarding the program be filed using a new form. The current version of the proposed rules may be viewed at: http://www.fldfs.com/WC/pdf/notice69L-5.pdf. Employers who secure workers’ compensation through a self-insurance program are encouraged to monitor the proposed rules package as it makes its way through the rulemaking process.

Todd Engelhardt Joins Sniffen Law Firm

Sniffen Law Firm is pleased to announce that Todd D. Engelhardt has joined the Firm. Todd will practice in the areas of Labor and Employment Law, Commercial Litigation and Commercial Transactions, Civil Rights Litigation, professional license defense and appellate practice. He also has experience in Trademarks and Copyrights, Probate and Banking and Finance issues. Todd received his B.S. in Political Science and his J.D. from Florida State University, graduating magna cum laude. While in law school he was a member of the Moot Court team, and was selected as a member of the Order of the Coif and The Order of Barristers. He also interned at The Florida Bar’s Center for Professionalism.

Prior to law school, he worked in the banking industry for ten years, specializing in operations and accounting involving electronic commerce, and served on local fraud and forgery task forces in Tallahassee and Jacksonville. Mr. Engelhardt may be reached at tengelhardt@sniffenlaw.com.

Past Issues of SLF Labor and Employment Alert Posted on Website

You may view past issues of the SLF Labor and Employment Alert on the “Publications” page.

211 East Call Street
Tallahassee, FL 32301
850.205.1996
850.205.3004 FAX