Recent Federal Legislation

New Law Eases Roth Account Conversions

(09/30/10) The Small Business Jobs Act of 2010 provides the opportunity to convert pre-tax retirement plan contributions to a Roth Account within that plan. Prior to this change, the only way to convert pre-tax retirement plan money to a Roth Account was to roll it over to a Roth IRA.

As with any Roth conversion, the amount converted is taxable, but increases in the account value are not taxed when withdrawn later. Roth Accounts are subject to additional Internal Revenue Code requirements. If the Roth conversion occurs in 2010, a special rule permits a delay in the payment of the tax with half of the amount taxable in 2011 and the other half in 2012.

OSHA Issues Memorandum Announcing "Administrative Enhancements" to OSHA's Penalty Policies to Dramatically Increase Employers' Fines

(10/07/2010) On September 29, 2010, the Occupational Safety and Health Administration (OSHA) took the next step in its 22-month effort to increase penalties and more vigorously enforce the OSH Act. OSHA head Dr. David Michaels sent to all of OSHA's Regional Administrators and the State Plan Administrators a memorandum outlining the deployment of the new Administrative Penalty. Effective October 1, 2010, all OSHA Area offices are directed to utilize the new penalty policy and the associated calculation system.

Facebook Firing: The Labor Board Weighs In

(11/11/2010) The National Labor Relations Board's General Counsel has issued a complaint against a Connecticut ambulance service alleging that one of its union-represented emergency medical technicians was unlawfully fired after criticizing her supervisor on Facebook. The complaint also alleges, among other things, that the company's blogging and Internet policy "interferes with, restrains, and coerces" employees in the exercise of their rights under the National Labor Relations Act. An administrative law judge is scheduled to hear the complaint in January.

Guidance Issued Regarding Grandfathered Status Of Group Health Plans

(11/22/2010) On November 17, 2010, the Internal Revenue Service, Department of Labor and Department of Health and Human Services jointly issued an amendment to the interim final regulations regarding a health plan's status as a "grandfathered health plan" under the recent healthcare reform legislation.

Previously, one of the ways an employer group health plan could lose its grandfathered status was if the employer changed insurance companies. The amendment to the regulations allows all group health plans to switch insurance companies and still maintain their grandfathered status, so long as the structure of the coverage does not violate the other requirements for maintaining grandfathered status.

Supreme Court Rejects Six Employment Cases, Still Has Full Docket on Tap

(12/20/2010) Earlier this week, the U.S. Supreme Court declined to review six labor and employment law cases which had been presented. The Court showed no favoritism, denying petitions for certiorari on cases coming out of U.S. Courts of Appeal for the Second, Third, Fifth, Eighth, Ninth, and Federal Circuits and covering substantive and procedural issues, including age claims, disability claims, retaliation, and due process, among others.