Greetings GMA SHRM Members –

We had our first Board meeting of the 2018-2019 year and we had some great discussions, including ideas from the National SHRM Conference and our student membership, among other topics. If you are a student, please note that we have made a change with the minimum required credits to receive this discount. Our goal is to connect with student members and provide them with opportunities for education and networking through our chapter. For more information, visit our student membership section on our website.
 
I know August is a busy month for everyone with vacations, getting ready for school, etc. so I am very excited to say we have almost 100 members signed up for our August Professional Development Summit on August 14th. The topics being covered are Evidence-Based Human Resource Management & Understanding Advanced Issues in FMLA Administration. As a member, you also have the opportunity to join other members at our next Meet, Greet & Eat over lunch on August 30th at The Egg & I.
 
Like summer, I have decided to keep this month’s message short and sweet. I hope to see you at one of our end of summer events!


Take Care,

Tammy Wacek, SHRM-CP, PHR
President
GMA SHRM

Expect Increases in ACA Thresholds, Penalties and Limits in 201

Submitted by: Abigail Darwin, GMA SHRM Government Affairs Committee Member and Employee Benefits Attorney at Quarles & Brady LLC

On May 21, 2018, the IRS issued Revenue Procedure 2018-34, which set forth the 2019 Affordable Care Act ("ACA") shared-responsibility affordability percentage.  Pursuant to the Revenue Procedure, in 2019, employer-sponsored health insurance coverage will be considered "affordable" if the lowest-cost self-only coverage option available to employees does not exceed 9.86% of an employee's household income, which is an increase from the 2018 affordability threshold of 9.56%.  The affordability threshold represents the highest percentage of household income that an employee can be required to pay for monthly premiums for employer-sponsored health insurance that meets the ACA's minimum essential coverage ("MEC") requirements. 
 

In 2019, the penalties will also be higher for applicable large employers ("ALEs") who either do not offer MEC to all eligible full-time employees or who offer coverage that is not "affordable," within the meaning of the ACA.  These penalties are sometimes referred to as the "play or pay" penalties.  Actuaries estimate that the Internal Revenue Code ("Code") Section 4980H(a) penalty for not offering MEC to all eligible employees will increase from an annualized $2,320 in 2018 to $2,500 in 2019, and the Section 4980H(b) penalty for not offering "affordable" coverage will increase from an annualized $3,480 in 2018 to $3,750 in 2019. 
 
Both the Section 4980H(a) and 4980H(b) penalties are triggered if an employee applies for health insurance coverage on an ACA Exchange and qualifies for a premium tax credit/subsidy.  In the case of the Section 4980H(a) penalty, the full penalty amount an employer may face is the penalty amount ($2,320 in 2018) times the total number of full-time employees (minus 30), even including the full-time employees who did not apply for Exchange coverage or qualify for the premium tax credit/subsidy.  In the case of the Section 4980H(b) penalty, the full penalty amount is calculated by taking the penalty amount ($3,480 in 2018) times the number of full-time employees receiving a premium tax credit/subsidy.  Because the penalties can be fairly substantial, it is important that ALEs offer "affordable" MEC to all their eligible full-time employees.
 
In 2019, the annual ACA limit on cost-sharing for non-grandfathered group health insurance plans will increase from $7,350 (2018) to $7,900 for self-only coverage, and will increase from $14,700 (2018) to $15,800 for family coverage.  These limits takes into account an employee's spending under the plan's deductible, as well as co-payments and co-insurance payments, but it does not include plan premiums. 
 
Note, however, that the minimum value threshold for ACA-compliant plans is expected to remain at 60% in 2019.  This means that in 2019, as in prior years, employer-sponsored group health insurance plans must pay for at least 60% of benefits covered under the plan.

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2018 SHRM Annual Conference Public Policy Review

Submitted by: Jeff Palkowski, Director of Government Affairs GMA SHRM and SHRM Advocacy Captain (Wisconsin 1st CD)

One of the first sessions that I added to my 2018 SHRM Annual Conference schedule was “Tsunami or Wave: The Washington Outlook for HR Public Policy” that was being presented by SHRM Vice President for Government Affairs, Michael P. Aitken. Luckily, I didn’t have to wait long after arriving in Chicago, as this was the very first session that I attended at the conference.
 
My interest in this session, which was a unique session in many ways from every other session offered over the three-day human resources conference, was twofold. First, besides my passion for human resources, I have been very active and involved in public policy, the legislative process, and politics for many years and second, as a SHRM Advocacy Captain for Wisconsin’s 1^st Congressional District and Director for Government Affairs for my chapter (Greater Madison Area SHRM), the information that Mike would be presenting would be of interest to both the SHRM HR Advocates in my home district and to my chapter Government Affairs Committee when I returned home.
 
I’ve heard Mike Aitken several times in the past, and he never fails to disappoint. He has the pulse on all of the happenings in Washington, DC that has or may have a direct impact upon our human resources profession.  During the 90-minute mega session, Mike would cover a large number of topics, but would do so in an easy to understand approach for all in attendance.
While it would be impossible to encapsulate the full presentation in a readable blog post, here are five issue takeaways that were discussed during this session:
 
Government Remains a Top Problem for the U.S.
 
Likely to no one’s surprise, recent Gallup polls indicate that “dissatisfaction with government” remains a top concern for U.S. citizens. Although trending up slightly, President Donald Trump’s approval ratings remain in the mid 40% range while approval ratings for the U.S. Congress are much lower, in the teens. While the midterm elections remain about four months away, this sentiment of dissatisfaction will surely impact voters as they head to the polls in November. Of note, since 1862, the President’s Party has lost seats in the House in 36 of the last 39 midterm elections. A change in House and/or Senate majorities would certainly impact federal legislation in the upcoming Congress as well as the direction of many public policies.
 
Talent Development Remains an Important Priority for the U.S. Workforce
 
As human resources professionals, we are all keenly aware of the issue and challenges surrounding talent development, acquisition and retention. With national unemployment rates at record lows and with an emerging technologically based workplace, developing and maintaining talent pipelines will be at the forefront in most organizational strategic plans. The White House has been focused on several areas to address talent development which include: apprenticeships, credential-based hiring, and the hiring of the formerly incarcerated, individuals with disabilities and veterans. SHRM has been recognized by the Trump Administration with the appointment of SHRM President and CEO, Johnny C. Taylor, Jr. to the President’s Board of Advisors on Historically Black Colleges and Universities. In this role, Taylor hopes to create a stronger connection between these higher education institutions and employers. In Congress, SHRM has been in support of legislation to assist with the expansion of employer-provided education assistance benefits to help employers attract and retain employees. Two SHRM supported bills to watch this legislative session are: “Employer Participation in Student Loan Assistance Act-H.R. 795” and “Expansion of Section 127 Limit-S. 2007/H.R. 4135”.
 
#MeToo and the Workplace
 
The worldwide #MeToo movement has reinforced the need for all organizations to review their organizational culture and policies to ensure that their workplaces are free from sexual harassment. A January 2018 SHRM survey reported that 36% of all HR professionals had at least one employee make a report of sexual harassment at their organization within the previous 12 months. Of those HR professionals surveyed, 36% reported an increase in sexual harassment allegations. In this same survey, 94% of HR professionals reported that their organization has a documented sexual harassment policy. 22% of non-manager employees surveyed were not sure if their organization has a sexual harassment policy. SHRM has taken a proactive lead in addressing this important issue by:
 

• Providing a dedicated web page and educational programs.
• Educating members of Congress on the issue.
• Testifying before the California legislature (SHRM CEO and 3 SHRM members testified) at a hearing titled: “Best Practices for Culture Change on Sexual Harassment.”
• Delivering training to state legislators through the National Conference of State Legislatures (NCSL)

 
Paid Leave Mandates Gain Momentum
 
In 2018, more states and municipalities have approved measures to create mandatory paid leave policies for employers within their respective jurisdictions. As each new policy addition contains a variety of conditions, requirements, and benefits; it is becoming more challenging for HR professionals to manage, particularly for those organizations with multiple work locations. SHRM helped to develop the “Workflex in the 21^st Century Act of 2017 – H.R.4219” which is legislation that would expand paid leave and workplace flexibility options for all employees. If passed into law, employers would have the voluntary option to participate by offering a minimum threshold of paid leave and a flexible work option which would then satisfy any state and local paid leave laws and federal contractor requirements. There are only a few months left in the current session of Congress, but SHRM remains hopeful that congressional action will still take place this fall.
 
Federal Immigration Reform
 
Immigration has dominated the national news of late, and many of these issues have a direct impact on employers and the country’s workforce. The Trump Administration has stepped up their review and audit of employment-based visas, mandatory E-Verify remains a possibility within any comprehensive immigration reform plan, and the Immigration and Customs and Enforcement Agency (ICE) plans a dramatic increase in employer I-9 audits throughout the remainder of this year. Add to this the inability of Congress to resolve the issue of the Deferred Action for Childhood Arrivals (DACA) recipients, and immigration will likely to continue to impact organizations, workers, and midterm voters for the remainder of 2018.
 
These are just of a few of the many public policy issues that have and will impact the work of HR professionals in our workplaces. While these may not seem to be your “typical HR issues” and are not areas that we often encounter on a daily basis, it is helpful to know that the SHRM Government Affairs Team has a team of experts that monitor, interpret and communicate public policy information to the HR community as developments arise. SHRM also remains active in the development of legislation and advocates for what they consider to be common sense, workplace policies.
 
If you want to keep informed on public policy issues that impact the HR profession and your workplace, I encourage you to visit the SHRM Policy Action Center at www.advocacy.shrm.org where you will find more detailed information about these key issues as well as many other current public policy issues. From this site, you can also download SHRM’s 2018 Guide to Public Policy Issues. In addition, those that are interested can also sign up as a SHRM “HR Advocate” to receive regular updates and if you wish, participate directly in the policymaking process through direct communication with your elected officials.
 
In closing, I want to thank Mike Aitken and his entire SHRM Government Affairs team for a great presentation at the 2018 SHRM Annual Conference, as well as the work that they perform on a daily basis to keep us informed to help us move our profession forward together.

Professional Development

Creative Website Suggestion

GMA SHRM welcomes the following members who joined our chapter in June 2018!

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Movin' Up

Have you started with a new company? Has your organization recently promoted you to a new position? Or do you want to recognize a new person or promotion within your department? If so, we want to hear about it. Send us an e-mail, and we’ll publish your good news in the next HR InTouch!  
 

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In Transition

If you are a member who is in between jobs, or who is currently employed but seeking new positions or career paths, write us a brief description of your skill set, areas of expertise, what you’re looking for, etc. Send us an e-mail. We’ll publish your information in the next HR InTouch.

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HR InTouch Guidelines

Article Writing:

Do you have an interest in writing for the HR InTouch? We have an interest in learning more about your area of expertise!

Why should you volunteer? Top three reasons: 1) to share your knowledge and experiences to educate others; 2) to become more connected in the HR and Dane County communities; and 3) to contribute towards the advancement of GMA SHRM and the HR profession.

The first step is for you to choose a submission option: you can pre-submit an article to GMA SHRM at any time for us to use in any of the upcoming newsletters, you can sign up to write for a particular month, or we can put you on a list of people to contact in future months whenever we need articles.

Article length:

Because the HR InTouch is now in an online format, the size is flexible. The article should be engaging and hold readers’ attention. Include the core information in your article, and we will advise if it is too lengthy.

Solicitation:

GMA SHRM is conscious not to allow solicitation through the articles, in an effort to protect the interests of our partners and members. The nature of the article should be educational (i.e., what are the business advantages of having a product like yours) or informational. Otherwise, if you truly are interested in advertising through the HR InTouch, you can work with our Marketing Committee. As a rule of thumb for article writing, if the submission relates to a for-profit event, or specifically markets your company (vs. your industry), it is an advertisement, and should be purchased. If it is a not-for-profit event that your company is hosting, or an announcement (i.e., a SHRM member recently joined your company), it is an acceptable addition to the HR InTouch content. If you have any questions related to the appropriateness of your submission, please contact us.

If you have questions, or to submit an article, contact GMA SHRM at chapteradmin@gmashrm.org .