HRM 402

Question 1

Family & Medical Leave Act (FMLA)

Answer 1

Applies to employers with 50 employees within 75 miles.

Eligible employees (12 months tenure, min 1,250 hours worked in prior year, located in eligible facility) may take up to 12 weeks of unpaid leave each year for family and medical reasons.
Health benefits continue as usual
Other benefits (e.g., seniority) don’t need to continue accruing as long as they wouldn’t continue for other types of unpaid leave

Question 2

FMLA continued

Answer 2

Employees are allowed to take unpaid FMLA leave when:
A new child is born to the employee.
A new child is placed with the employee for adoption or foster care.
The employee is needed to care for a seriously ill spouse, child, or parent (but not a parent-in-law).
The employee has a serious health condition.
The family member of a person on active military duty for any “qualifying exigency.”

Job restoration upon return
Must be to original job OR an “equivalent” job

Question 3

FMLA – What is an “equivalent” job?

Answer 3

Same wages and benefits, similar overtime opportunities, all unconditional pay increases (e.g., COLA)
Similar job duties
Location can differ, but can’t be a “significant increase” in commuting time or distance
Schedule: Similar hour amounts, day shift -> day shift
Same retirement and pension plan criteria (not an interruption in service)

Question 4

Health Insurance Portability and Accountability Act (HIPAA)

Answer 4

(Amendment to ERISA)
(Much of this law was amended/replaced by the PPACA)

Security of Protected Health Information (PHI – information about health status, provision of health care, or health care payments that can be linked to an individual)
Example: FMLA information obtained from a doctor (requires waiver)

Question 5

Affordable Care Act

Answer 5

Companies not required to provide health insurance
Companies with 50+ full-time equivalents (FTEs) must offer insurance or face a possible penalty of ≈$3,000 per employee
FTE = Total hours worked / 2,080

Question 6

Affordable Care Act continued

Answer 6

Company-offered plans must meet specific criteria
Must cover at least 60% of expected benefit costs
Premium cannot exceed 9.5% of employee household income
Eliminates pre-existing condition regulations
Premiums can vary based on
Geography (zip code), Age, Family Size, and Tobacco Use (up to 50% increase)
Dependent children coverage extended to age 26

Question 7

ERISA, 1974

Answer 7

Employee Retirement Income Security Act
- Ensures that employees receive their promised pension.
- Employers with pensions must comply with the following requirements:

• Eligibility requirements (hours worked, age 21)
• Vesting requirements-Defined Contribution (100% in year 3 or 20% each year from years 2-6 and Defined Benefit: 100% in year 5 or 20% each year from years 3-7)

-Portability practices (not required)
-Funding requirements (liabilities must be 100% funded)
-Fiduciary responsibilities (prudent management)
-Reporting and disclosure requirements

Question 8

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Answer 8

COBRA protects people who leave a job from losing their benefit coverage
Requires employers of 20 or more employees to extend health insurance benefits to
terminated employees
employees with reduced hours
family members of terminated and reduced-hours employees.