Feb 27

Democrats Oppose FMLA Changes

FMLA, Legislation No Comments »

Democrats on Congressional Hill are voicing opposition to the proposed changes to the FMLA implementing regulations recently announced by the U.S. Department of Labor.

Senators Chris Dodd (D-CT) and Edward Kennedy (D-MA) recently expressed their concern that the proposed changes would discourage employees from exercising their right to take family and medical leave. Senator Dodd, the Subcommittee chairman and sponsor of the original FMLA, identified proposals allowing employers to require employers to provide medical recertification every six months and allowing employers to contact the employee’s health care provider directly as areas of particular concern.

You can read more about the issue at The FMLA Blog.

Dec 31

FMLA Set to Expand

FMLA, Legislation No Comments »

President Bush will most likely soon sign into law the first extension of benefits under the FMLA since its 1993 enactment.

The story is in an article this week at Workforce.com:

The FMLA expansion would enable spouses, children, parents or next of kin to wounded military service personnel to take 26 weeks of unpaid leave to care for their loved one. That’s more than double the 12 weeks of time off for the birth or adoption of a child or the sickness of a close relative provided currently under the Family and Medical Leave Act.

Resistance from corporate America made passage of the extension provision difficult, adding a further frustration for families who already face sometimes horrific recovery journeys, according to an advocate for broader leave laws.

“This was significant and historic,” says Kate Kahan, director of work and family programs at the National Partnership for Women and Families. “On the other hand, it’s only an extra three months of leave. This is just a small step in the right direction.”

UPDATE: President Bush is planning a pocket veto of the bill for reasons unrelated to the FMLA provision. The consensus appears to be, however, that a bill with the FMLA expansion will be signed in the near future.

Jun 25

Congress Responds to Ledbetter Decision

Pay Issues, Legislation, Discrimination No Comments »

Legislation has been introduced in the U.S. House in response to the U.S. Supreme Court’s recent Ledbetter decision that said victims of pay discrimination lose their right to sue 180 days after the company’s initial pay decision is made, even if the employee does not learn of the discriminatory treatment for years.

Rep. George Miller is sponsoring the Lilly Ledbetter Fair Pay Act, which would expand the time in which a plaintiff has a legal right to sue for back pay.

The court last month ruled in a 5-4 decision that Ledbetter, according to existing statutes, had to have filed her claim within 180 days of the first evidence of discrimination — essentially the first paycheck in which she earned less than her male peers. Ledbetter didn’t learn of her pay differential until years later.

The bill proposed by Miller would give workers the right to file claims within 180 days of the issuance of any discriminatory paycheck.

May 09

The Civil Rights Tax Relief Act: Questions and Answers

Legislation, Tax No Comments »
I’ve received a few questions about the Civil Rights Tax Relief Act of 2007 (“CRTRA”), which is currently pending in Congress so I thought it appropriate to post some information about the bill, what it is designed to do and who supports it.

The CRTRA is meant to end certain types of taxation of damages received by those who have suffered unlawful discrimination or violations of employment rights. The bill was introduced in Congress by John Lewis (D-GA), who was joined by abipartisan group of original cosponsors, including Representative Deborah Pryce (R-OH) and Ways & Means Committee Members Sander Levin (D-MI), Jim Ramstad (R-MN), Xavier Becerra (D-CA), and Phil English (R-PA). The bill number is H.R. 1540.

No one disputes that when employees face employment discrimination and other violations of their employment and civil rights, it is best if they avoid litigation by coming to amicable agreements with their employers. But too often, cases like this are difficult to settle because the cost of settlements is so high. A significant reason for the high cost is the excessive and unfair tax treatment of settlements and awards in employment rights cases.

Today there are two major sources of excessive and unfair taxes in such cases:

  1. taxation of damages for noneconomic harm that employees suffer as a result of egregious, intentional harassment, retaliation, or similar workplace wrongs; and
  2. taxation of lump-sum settlements or awards that compensate for lost back pay over a period of years at the artificially high marginal tax rates of the year of receipt.

These taxes drive up the cost of settlement of workplace-related cases for America’s businesses, while at the same time reducing recoveries for victims of discrimination. They also create unfair and arbitrary distinctions among taxpayers. The CRTRA is designed to address these concerns. Here are some answers to some basic questions about the legislation:

What Does the Civil Rights Tax Relief Act Do?
The Civil Rights Tax Relief Act (CRTRA) solves these two problems by amending the tax code in the following two ways:

  • it eliminates noneconomic damages from gross income; and
  • it permits income averaging for back pay received in a lump sum.

How Will the CRTRA Help Employers?
The CRTRA will significantly reduce the costs of employment- and civil rights-related litigation for companies. More cases will be settled before trial, and it will be less expensive for employers to settle them.

How Will the CRTRA Help Employees?
The CRTRA will help employees who have to sue to vindicate their rights by requiring that they pay tax only on the economic component of their awards. It will reduce the taxes employees pay on monies awarded as back-pay in lump sums by requiring that they pay tax at fair marginal rates. And it will make it easier to settle cases because employers will not have to pay as much to resolve meritorious claims.

Who Supports The Legislation?
Groups ranging from the U.S. Chamber of Commerce and the Society for Human Resources Management to the Leadership Conference on Civil Rights, The National Employment Lawyers Association and AARP have endorsed the legislation.

You can read a copy of the bill here.

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