HRFocusHUMAN CAPITAL PRACTICE

April 2012 — Issue 58 www.willis.com

WELLNESS

MEASURING YOUR WORKSITEWELLNESS PROGRAM WITHOUTINVESTING MORE TIME AND MONEY

What is the ROI of your worksite wellness program? Do you know ifit is 3 to 1, 4 to 1, or better? What we do know is health care costscontinue to rise every year. According to a 2011 study published byKaiser and the Health Research & Educational Trust, employeescontribute nearly 30% of their health care costs. This is up 131%from a decade ago. (Kaiser/HRET Survey 9 of Employee-SponsoredHealth Benefits, 1999-2009. Bureau of Labor Statistics, ConsumerPrice Index, US City Average of Annual Inflation (April to April),1999-2009). Overall premiums paid have also increased 113% since2001. Employers are increasingly recognizing the crucial role theycan play in improving the health and wellbeing of their employees, soit’s no surprise that year after year more and more companies areintegrating wellness programs into their benefits design.

Worksite wellness programs can affect many facets of anorganization. They can boost productivity and morale, reduceabsenteeism, and in many cases, reduce medical costs. But manycompanies want to know, “Is our wellness program successful?”According to the 2010 Willis Health and Productivity Survey, 38% ofthe survey respondents indicated they did not have the sufficientdata to calculate ROI. The second most common barrier, cited by32% of the respondents, was not enough staffing or time to dedicateto this. As the trend of adding more worksite wellness programscontinues to gain momentum, organizations are looking for simplerways to determine the success of their programs.

So how does an organization even begin what seems to be a dauntingtask of measuring a program’s success? They should reflect on whythe program was established in the first place. Were wellnessprograms offered to decrease medical spending or increaseproductivity? Were they added as a retention tool or a perceivedbenefit? Understanding why they were included can be the first stepin knowing what should be measured to determine success.

As seen in the Willis survey, not enough staffing is available toconduct a comprehensive analysis, but the need to providesuccessful metrics is still valid.

WELLNESSMeasuring Your Worksite WellnessProgram Without Investing More Time and Money 1

HR CORNERTips for HR Pros: Working With the C-suite 3

LEGAL & COMPLIANCECompromise on Contraceptive Coverage Requirement Announced 5

Agencies Seek Additional Comments on Automatic Enrollment, Employer SharedResponsibility and Waiting PeriodProvisions 7

Washington State Allows Same-SexMarriage 8

IRS Addresses HSA Eligibility 9

Michigan Releases FAQs on HealthInsurance Assessment 9

California Wage Theft Protection Act 10

WEBCASTS 11

KEY CONTACTS 13

Easy, low-cost ways to measure and evaluate your worksite wellness program include:

n DETERMINE THE BASELINE FOR KEY METRICS. You have to know where you started in order toknow how far you’ve come.

n SET SPECIFIC, MEASURABLE, REALISTIC GOALS TO TRACK OVER TIME. Companies do this inother departments to determine success; it should be the same for wellness.

n TRACK PARTICIPATION IN ALL WELLNESS EVENTS. No matter what the program is, if you haveparticipation, count and track it; this helps determine popularity of the program.

n PROVIDE PRE- AND POST-SURVEYS FOR WELLNESS PROGRAMS. This will allow you to knowwhat your employees thought of the program and if you should continue offering it.

n INCLUDE WELLNESS PARTICIPATION QUESTIONS ON EXIT INTERVIEWS. Did this employeevalue the wellness program, were they engaged?

n INCLUDE TESTIMONIALS FROM EMPLOYEES. One of the most powerful tools that is completelyfree: having an employee excited to share how the company’s wellness program changed their life is agreat way to showcase success.

For the more comprehensive program you should also include:

n HEATH RISK ASSESSMENT DATA: Compare self-reported year-over-year risks of the organizationand the improvements that have been made.

n BIOMETRIC DATA: The changes in blood pressure, cholesterol, BMI and weight are a great way todetermine if the wellness programs in place are affecting the organization.

n UTILIZATION DATA: Health care claims and pharmacy utilization data also provide useful data onpopulation trends. Insurance carriers can help with the tracking of your claims and reporting of theiroutcomes.

The success of a worksite wellness program takes time and measuring this success may seem difficult, but aworksite wellness program is an investment in your company’s #1 asset, the employee. Wellness programsdemonstrate to employees that their health is important and that their employers care about this aspect oftheir lives.

To learn more about how to measure the success of your worksite wellness program and for additionalresources, contact your local Willis service team.

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HR CORNER

TIPS FOR HR PROS: WORKING WITH THE C-SUITE

HR managers want to “get invited to the table,” says attorney Jonathan Segal, a featuredspeaker at SHRM’s Employment Law and Legislative Conference, which happened a fewweeks ago in Washington, DC, “but asking isn’t the way to get the invitation.”

Segal, a partner with Duane Morris law firm in Philadelphia, shared his tips for working with the C-Suite.

1. STOP ASKING TO BE AT THE TABLE Asking only reinforces the perception of your subordinate role. Instead, demonstratewhy you should be at the table. Give feedback before the meeting: Here’s what theissues are, here’s what you should consider. Maybe the CEO will say, “We need you inthe room.”

2. AVOID THESE Overuse of terms like these won’t help your cause, Segal says.

n Proactive n Value added n Synergy n Outside the box

Maybe if we synergistically create value added in a proactive way, we’ll be thinkingoutside the box, Segal quips.

3. LEARN THE BUSINESS OF YOUR BUSINESS If you are not aware of the basic elements of your business, you won’t be perceivedas serious. Find out about:

n Finances n Products or services n Short-term and long-term goals n Competitive concerns

4. LEARN BASIC BUSINESS TERMS AND CONCEPTS USED BY C-SUITE In a similar vein, learn about business terms and concepts.

n Accounting n Business matrices n Other business tools/terms

5. LINK HR GOALS TO CORPORATE GOALS One client proudly showed Segal the new HR Dashboard – it had great informationbut it wasn’t linked to the corporate goals. That’s what makes the CEO view HR as anexpense, Segal says. Be sure you’re focused where the C-Suite is:

n What talent will the business need?n Where will you find the talent?n How will you grow it?

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6. RE-RECRUIT TOP NOTCH TALENT No matter how bad the economy, top talent can always move, Segal says. And when a key person leaves, HR often is blamed (and blindsided). You have to be proactive to retain key people. What can you do?

n Recognition and appreciation n Non-competes, etc. n Payments contingent on current employment

7. RECALIBRATE YOUR TIME Many HR managers spend about 85% of time on the “favorite” 15% – the troublemakers. You can’t totally reversethat, but you can move along the continuum to focus more time on the good employees you want to retain.

8. SAY NO TO GOMOS You need to learn how to say nicely: get out of my office. HR cannot be friend to the friendless – it is not in jobdescription.

9. BE CAREFUL OF BEING SEEN AS EMPLOYEE ADVOCATE (OR A MANAGEMENT TOOL) You are a member of management, says Segal, but you often play a mediator’s role. The key is to explain concernsabout treatment of employees in terms of impact on the organization. For example, this will affect retention,encourage unionization.

10. NEVER SAY: “BUT THE POLICY PROVIDES” This reduces your role to reader (not a high paying job), Segal says. Begin with the policy, but don’t end with it. Beespecially careful of policies that lock in management (e.g., we will post all vacant jobs, we always offerprogressive discipline, we always complete an investigation in 10 days)

11. BE CAREFUL OF CONSISTENTLY FOCUSING ON CONSISTENCY Executives often want to act outside of policy or in an inconsistent way. Sometimes that’s OK. You can consider(and document) legitimate, non-discriminatory factors for actions. For example, length of service or mitigatingcircumstances. That means you don’t have to treat a six-month employee the same way you treat a 20-yearemployee. And you might excuse an employee guilty of a normally terminable offense if she just found out abouther son’s cancer hours before.

12. DON’T INUNDATE C-SUITE WITH MINUTIA The boss’s goal is to make the problem to away. Figure out what your boss needs to know and what he or she doesnot want or need to know. Too much information is as bad as no information.

13. PROVIDE UPDATES TO THE SENIOR TEAMMake sure you keep C-suite up to date on new developments including pending legislation that may hurt (or help)the organization, and at the federal, state and local levels.

14. ACCEPT AND CLARIFY YOUR ROLE Clarify when you are advisor and when you are the decision maker. Don’t intuit—ask, says Segal. Failure torecognize when you are “only” an advisor may lead to serious problems.

15. REVITALIZE YOURSELF Make sure others know what you have done – you can have humility but still sell your competence and youraccomplishments, says Segal.

Finally, he says, make sure you have passions outside of work. (His is animal rescue. If you’re not busy thisweekend, go and adopt a dog, he suggests.)

This article is provided BLR.

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LEGAL & COMPLIANCE

COMPROMISE ON CONTRACEPTIVE COVERAGEREQUIREMENT ANNOUNCED

A requirement under the Patient Protection and Affordable Care Act (PPACA) thatwould force religiously affiliated employers to provide employees with contraceptivecoverage without any cost-sharing has faced strong objections from various sources.On January 20, 2012, the Secretary of the Department of Health and Human Services(HHS), Kathleen Sebelius, announced that nonprofit employers who, based on religiousbeliefs, do not currently providecontraceptive coverage, would be givenan additional year, until August 1, 2013,to comply with PPACA’s requirementsto provide such coverage. SecretarySebelius’ announcement of thetemporary enforcement safe harbor,however, failed to appease the rule’sopponents.

On February 10, 2012, PresidentObama announced a compromise tothe rule. Non-profit organizations,such as hospitals, schools and charities,affiliated with religious institutionsthat do not provide contraceptivecoverage due to their beliefs will not berequired to include it in the coverageoffered to employees. Instead, healthinsurers providing the policies to suchemployers must offer the employeesthe coverage, at no additional cost,through separate insurance policy riders. Organizations that qualify as “religiousemployers,” as explained below, are still exempt from the requirement (this change inthe rule is directed at those organizations that may be affiliated with religiousorganizations but do not meet the religious employer definition).

In final regulations issued February 10, 2012, the federal agencies charged withimplementing PPACA (the Departments of Labor (DOL), Health and Human Services(HHS) and Treasury) stated that before the temporary enforcement safe harborannounced by Secretary Sebelius ends, they will work to develop alternative ways ofproviding contraceptive coverage without cost-sharing with respect to non-exempted,non-profit religious organizations with religious objections to such coverage.Specifically, the agencies plan to initiate regulations to require insurers “to offerinsurance without contraception coverage to such an employer (or plan sponsor) andsimultaneously to offer contraceptive coverage directly to the employer’s planparticipants (and beneficiaries) who desire it, with no cost-sharing.”

The agencies also stated that they intend to develop policies to achieve the same goalsfor self-insured group health plans sponsored by non-exempted, non-profit religiousorganizations with religious objections to contraceptive coverage. The final regulationscan be found here.

On February 10, 2012, President Obama announced acompromise to the rule. Non-profit organizations, such ashospitals, schools and charities, affiliated with religiousinstitutions that do not provide contraceptive coverage due totheir beliefs will not be required to include it in the coverageoffered to employees. Instead, health insurers providing thepolicies to such employers must offer the employees thecoverage, at no additional cost, through separate insurancepolicy riders. Organizations that qualify as “religiousemployers,” as explained below, are still exempt from therequirement (this change in the rule is directed at thoseorganizations that may be affiliated with religious organizationsbut do not meet the religious employer definition).

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TEMPORARY ENFORCEMENTSAFE HARBORThe one-year enforcement safe harborannounced by Secretary Sebelius will be ineffect until the first plan year that begins on orafter August 1, 2013. Under the enforcementsafe harbor, employers, group health plansand group health insurance issuers will not besubject to any enforcement action by theagencies for failing to cover recommendedcontraceptive services without cost-sharing innon-exempted, non-grandfathered grouphealth plans. The safe harbor is available toplans meeting all of the following criteria:

n The entity is organized and operates as anon-profit.

n From February 10, 2012 onward,contraceptive coverage has not beenprovided at any point by the group healthplan established or maintained by theorganization, consistent with anyapplicable state law, because of thereligious beliefs of the organization.

n The group health plan providesparticipants a notice (explained in moredetail below) which states thatcontraceptive coverage will not beprovided under the plan for the first planyear beginning on or after August 1, 2012.

n The organization self-certifies that itsatisfies the criteria above and documentsits self-certification in accordance withthe procedures discussed below.

Employers wishing to take advantage of theadditional year must certify that they qualifyfor the delayed implementation. According toavailable guidance, the certification must besigned by a representative authorized to makethe certification on behalf of the organization.In addition, the certification must becompleted and made available for examinationby the first day of the plan year to which thetemporary enforcement safe harbor applies.The specifications for the certification can befound here. A copy of the certification is alsoavailable on Willis Essentials.

Employers that do not offer contraceptiveservices coverage must provide to employees a

notice that states that contraceptive services are available atsites, such as community health centers, public clinics, andhospitals with income-based support. The notice must beincluded in any application materials distributed in connectionwith enrollment (or re-enrollment) in coverage that is effectivebeginning the first day of the first plan year that is on or afterAugust 1, 2012. For example, for a calendar year plan with anopen enrollment period beginning November 1, the notice mustbe in any application materials provided to participants on orafter November 1, 2012. The notice must be provided by thegroup health plan. However, the plan may ask another entity,such as a health insurance issuer or third-party administrator,to accept responsibility for providing the notice on its behalf. Acopy of the notice can be found here. A copy of the notice is alsoavailable on Willis Essentials.

BACKGROUNDPPACA included a requirement that non-grandfatheredemployer-sponsored health plans cover certain preventivehealth care services and do so without any cost-sharingrequirements for such services. The requirement becameeffective at the start of the first plan year beginning on or afterSeptember 23, 2010 (January 1, 2011 for calendar-year plans).

On August 1, 2011, the Health Resources and ServicesAdministration (HRSA), an agency of HHS, released anexpanded list of preventive coverages that must be offered towomen covered under group health plans and individual healthplans. The expanded list includes many items, but specificallymakes provision for contraceptive methods and counseling. Thenew list of preventive services applies to plan years beginning onor after August 1, 2012 (January 1, 2013 for calendar-year plans).

Additionally, an interim final rule was released along with thenew women’s prevention guidelines. The interim rule amendsthe July 2010 interim final rule, making provision for a religiousaccommodation where an employer meets the standard of a“religious employer” that objects to providing insurancecoverage for contraceptive services. Specifically, group healthplans sponsored by certain religious employers, and grouphealth insurance coverage in connection with such plans, areexempt from the requirement to cover contraceptive services.This religious exemption does not apply to insurance policies inthe individual health insurance market.

The amendment to the interim final rule gives only a very broaddefinition of religious employer – one that meets the followingcriteria:

n Has the inculcation of religious values as its purposen Primarily employs persons who share its religious tenetsn Primarily serves persons who share its religious tenetsn Is a non-profit organization under Internal Revenue Code

Sections 6033(a)(1) and 6033(a)(3)(A)(i) or (iii)

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For more information on the preventive care requirements, please see Willis Human Capital Practice Alerts, Vol. 3, No.15, “More Health Care Reform Regulations: Interim Final Rules on Preventive Care” and August 2011,“Expanded Women’s Preventive Services: Required Health Plan Coverage.” The National Legal & ResearchGroup will continue to monitor developments involving this issue and provide information on them as needed.

AGENCIES SEEK ADDITIONAL COMMENTS ON AUTOMATICENROLLMENT, EMPLOYER SHARED RESPONSIBILITY ANDWAITING PERIOD PROVISIONS

The federal agencies with responsibility for the automatic enrollment, employer shared responsibility (also known asthe “pay or play mandate”) and waiting period provisions of the health care reform law have issued a set of FAQsregarding their ongoing efforts to develop implementing regulations. (The Department of Labor’s (DOL) version of thisrelease is available at http://www.dol.gov/ebsa/healthreform/.) The FAQs provide information on the regulatoryprocess and identify various approaches the agencies are considering for future proposed regulations or otherguidance. The agencies also request comments on these provisions and the regulatory approaches identified in theFAQs. As was the case with the agencies’ previous releases on these provisions (see our “Healthcare Reform Update:Week of May 9, 2011”), these FAQs are not official guidance.

BACKGROUNDThe health care reform law included three provisions that the agencies have identified as requiring careful regulatorycoordination:

n Employers having more than 200 full-time employees must automatically enroll new full-time employees in one ofthe employer’s health benefits plans (subject to any waiting period authorized by law) and must continue theenrollment of current employees.

n Employers having 50 or more full-time employees may be subject to a penalty if they fail to offer full-timeemployees “minimum essential coverage” or if they offer their full-time employees minimum essential coverage,but the coverage is deemed unaffordable (i.e., the employee’s share of the premium exceeds 9.5% of householdincome), or the coverage does not provide minimum value (the plan does not cover at least 60% of the total allowed costs).

n Group health plans may not apply any waiting period that exceeds 90 days.

Last May, IRS Notice 2011-36 described potential approaches to the employer shared responsibility provision thatcould be incorporated into future proposed regulations and noted the need for careful coordination with the automaticenrollment and waiting period provisions.

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NEW RELEASES PROVIDE ADDITIONAL DETAILSToday’s releases from the agencies provide additional details on the issues that might becovered in future proposed regulations and explain the agencies’ current thinking on thoseissues. For example, the FAQs explain how newly hired employees would be treated when

determining whether an employer would beresponsible for a pay or play penalty under theemployer shared responsibility provision. They alsoexplain that the agencies intend to retain thedefinition of waiting period included in the HIPAAportability rules, so that the maximum 90-daywaiting period would begin only when an employeebecame employed in an eligible classification. Theitem in the releases that may be of greatest interestto employers is a statement that automaticenrollment guidance will not be ready to take effectby 2014. This is significant because the agencieshave stated previously that, until regulationsimplementing the automatic enrollmentrequirement are issued and become applicable,

employers are not required to comply with the automatic enrollment requirement.

The National Legal & Research Group will continue to monitor developments and provideinformation on them as needed.

WASHINGTON STATE ALLOWS SAME-SEXMARRIAGE

On February 13, 2012, the governor of Washington State, Christine Gregoire (D), signed theMarriage Equality Act (SB 6239). This law, effective June 7, 2012, legalizes same-sexmarriage in Washington. The law’s opponents have promised to gather enough signatures(120,577) to force a voter referendum on the law. If that happens, the law will not becomeeffective until approved by voters on the November ballot.

In addition to legalizing same-sex marriage, the law will recognize valid same-sex marriagesfrom other states. Domestic partnerships validly performed in other states will also berecognized as marriages. To retain that status, however, the couple would have to marrywithin one year after becoming permanent residents of Washington, unless at least one ofthe partners was at least 62 years of age. The Marriage Equality Act will generally eliminatefor most couples the option of registering as domestic partners. The law provides that anyregistered domestic partnership, in which the parties are the same sex and neither party is62 years of age or older, that has not been dissolved or converted into a marriage by theparties by June 30, 2014, will be automatically merged into a marriage and be deemed amarriage as of June 30, 2014. The ability to register a domestic partnership, however, willremain available to couples where at least one person in the couple is at least 62 years of age.

Washington State already provides registered domestic partners all of the same rights andbenefits that the state offers to married couples. Therefore, the new law should have littleimpact on employers. Insured plans are already required to offer coverage to registereddomestic partners and will now be required to provide coverage to same-sex spouses. Self-insured plans that are governed by ERISA will not be affected by the state law. Regardless ofwhat Washington law says, it will generally be trumped by federal law. Therefore, same-sexspouses are typically treated as non-spouses for all federal laws – that includes COBRA,federal tax, FMLA, etc. However, same-sex spouses will be eligible for those benefits andrights conferred by Washington state law.

Today’s releases from the agencies provide additionaldetails on the issues that might be covered in futureproposed regulations and explain the agencies’current thinking on those issues. For example, theFAQs explain how newly hired employees would betreated when determining whether an employer wouldbe responsible for a pay or play penalty under theemployer shared responsibility provision.

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For a discussion on how same-sex marriageaffects employers and employer-sponsoredbenefits, please see HR Focus, August 2011,Issue # 50, “New York Enacts Same-SexMarriage Law.” A copy of the bill can befound here.

IRS ADDRESSES HSAELIGIBILITY

Recently released Internal Revenue Service(IRS) Notice 2012-14 provides guidance onwhether an individual who is eligible toreceive medical services at an Indian HealthService (IHS) facility is eligible to make taxpreferred contributions to a Health SavingsAccount (HSA).

BACKGROUNDIn order to establish and make tax-deductiblecontributions to an HSA, an individual mustbe an “eligible individual.” A person is aneligible individual, with respect to any month,if the person is:

n Covered by a plan that qualifies as a highdeductible health plan (HDHP)

n Not covered at the same time by anyother plan which is not an HDHP, butwhich covers the same benefits as theHDHP

n Not claimed as a dependent on anotherperson’s tax return (a spouse is notconsidered to be a tax dependent undereither Code Section 151 or Code Section152, even though a taxpayer may claim anexemption for the spouse)

n Not enrolled (not just eligible, butactually enrolled) in Medicare Part A or B(eligible employees age 65 or over maycontribute to an HSA, including thecatch-up contribution, as long as they arenot enrolled in Medicare)

This definition means that having certainother coverage may prevent an individualfrom being eligible to make or receive HSAcontributions on a tax-preferred basis. It alsoraises the question as to whether medicalservices received from an IHS facility

constitute being covered by another health plan (that is not anHDHP).

The IHS, an agency within the Department of Health and HumanServices, is responsible for providing federal health services toAmerican Indians and Alaska Natives. An IHS facility is a hospital,medical or dental clinic, or pharmacy established and operated bythe IHS.

ANALYSISIRS Notice 2012-14 provides that an individual who is eligible toreceive medical services at an IHS facility, but who has not actuallyreceived such services during the previous three months, is deemedto be an eligible individual for HSA purposes. In other words, anindividual who has received medical services at an HIS facility at anytime during the previous three months will not be an eligibleindividual. Individuals who have received medical services at an IHSfacility would have to wait an additional three months (withoutreceiving medical services at an IHS facility) to be eligible tocontribute to an HSA on a tax-preferred basis. The receipt ofpermitted coverage, such as dental and vision care, or the receipt ofpreventive care, such as well-baby visits, immunizations, weight-lossand tobacco cessation programs, from an IHS facility does not affectan individual’s HSA eligibility.

This analysis is similar to what applies to individuals who receivemedical benefits provided by the Department of Veterans Affairs(VA). IRS Notice 2004-50 addressed whether an individual who iseligible for medical benefits through the VA may also be eligible tocontribute to an HSA. That guidance provided that such anindividual is eligible to contribute to an HSA for a given month, solong as he or she has not actually received VA medical benefits duringthe preceding three months.

The guidance is limited to a select group of individuals and will notbe an issue for most employees. Employers will want to review anycommunication materials they provide to employees regarding HSAeligibility to ensure this information is included. IRS Notice 2012-14can be found here.

MICHIGAN RELEASES FAQS ONHEALTH INSURANCE ASSESSMENT

In September 2011, Michigan enacted legislation that imposes a 1%assessment on all paid claims under fully insured and self-fundedemployer-sponsored group health plans. The Health InsuranceClaims Assessment (HICA) Act is effective for dates of service on orafter January 1, 2012. The assessment is equal to 1% of total paidclaims, up to a cap of $10,000 per individual.

This new law has generated a number of questions. To address them,the Michigan Department of Treasury has created FAQs. The FAQscan be accessed here.

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BACKGROUNDMichigan previously imposed a 6% use tax on Medicaid HMOs and plans providingMedicaid mental health services. The use tax financed the state’s share of Medicaid. Thefederal government, however, indicated it would not allow Michigan to continue to use thisfinancing approach. The recently enacted legislation replaces the 6% use tax with a 1%assessment on all “paid claims” under fully insured and self-funded employer-sponsoredgroup health plans. The term “paid claims” means reimbursements by the plan for medical,prescription drug and dental claims with dates of service on or after January 1, 2012 withrespect to residents of Michigan receiving services in Michigan. For purposes of theassessment, it does not matter where the employer is headquartered. Reimbursementsunder health flexible spending accounts (FSA), health savings accounts (HSA) and healthreimbursement arrangements (HRA) are not subject to the assessment.

The assessment is to be paid by insurers and third-party administrators (TPAs) on aquarterly basis. The insurers and TPAs are permitted to pass the 1% assessment cost back toemployers (and will likely do so). The new law will sunset on January 1, 2014 unless thelegislature takes additional action to extend it.

CALIFORNIA WAGE THEFT PROTECTION ACT

Effective January 1, 2012, California employers must comply with California’s new WageTheft Protection Act. This new California law requires employers to provide certainemployees with a written notice containing the following wage-related and employerinformation as provided in Labor Code section 2810.5.

n The employee’s rate or rates of pay and the basis for that pay – whether paid by the hour,shift, day, week, salary, piece, commission, or otherwise, including any rates forovertime, as applicable

n Allowances, if any, claimed as part of the minimum wage, including meal or lodgingallowances

n The regular payday designated by the employer in accordance with the requirements ofthis code

n The name of the employer, including any “doing business as” names used by theemployer

n The physical address of the employer’s main office or principal place of business, and amailing address, if different

n The telephone number of the employer

n The name, address and telephone number of the employer’s workers’ compensationinsurance carrier

n Any other information the Labor Commissioner deems material and necessary

Employers must notify employees within seven days of any changes to the informationlisted above. The notice must be provided in the language the employer normally uses tocommunicate employment-related information. A template of the notice has beendeveloped in English for use by employers and will be available in other languages, as well.Use of this template is voluntary, but any notice developed by employers must contain allthe information requested on the template. The template can be found here.

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Private employers must provide notice to newly hired employees who are not exempt from the overtime provisions ofthe Fair Labor Standards Act or the California equivalent. Notice need not be provided to employees exempt from theovertime provisions of federal and state law or to non-exempt employees who are both covered by a collectivebargaining agreement and earn at least 30% more than the California minimum wage per hour.

As for penalties for non-compliance, the California law adds or increases existing civil and criminal penalties, in someinstances allowing liquidated damages and attorneys’ fees, and extends the applicable statute of limitation to threeyears.

There has been some guidance provided for employers by the Department of Industrial Relations (DIR). The notice canbe provided with other forms at the time of hire, but it must be on its own, separate form. DIR cautions that employeesshould not have to piece together the information from several different documents or pages in a handbook.

Furthermore, the notice requirement cannot be waived by employees, and employers should keep a record that thenotice was provided to employees. If the notice is provided electronically, the employee must be able to acknowledgereceipt of and print the notice. The template provided by DIR includes a written acknowledgment to be signed by theemployee. If the employee refuses to sign the acknowledgment, the employer should still provide the notice, but notethe employee’s refusal on its copy of the notice.

2012 finds a new notice requirement under the Wage Theft Protection law in California. As this law was effective as ofJanuary 1, 2012, employers should immediately review their processes and procedures to ensure compliance.

WEBCASTS

WILLIS HUMAN CAPITAL PRACTICEANNUAL LEGISLATIVE & REGULATORY UPDATE TELECONFERENCEFOR EMPLOYERS SPONSORING GROUP HEALTH PLANS

Tuesday, April 17, 2012 2:00 PM (Eastern)

Presented byElizabeth Vollmar, Vice President and Principal Employee Benefits AttorneyNational Legal & Research Group

Willis presents our annual webcast on legislative and regulatory developments.

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2012 promises to be another challenging year for employers that sponsor group health plans,with implementation of health care reform requirements continuing. In this teleconference,Willis’ National Legal & Research Group (NLRG) will review the items that most employerswill be implementing during 2012, including:

n Preparing and distributing 4-page uniform summaries of benefits and coverage (SBCs)n Women’s preventive care benefits (including the scope of the contraceptive exception)n Restrictions on use of medical loss ratio (MLR) rebatesn $2500 limit on employees’ pre-tax health FSA contributionsn W-2 reporting of health coveragen $1 per capita fee

The program will also review a timeline of health care reform provisions becoming effectiveafter 2012 and some of the recent developments relating to those provisions. The program isslated for one hour with additional time reserved at the end for Q&A.  

Participant AccessAdvance RSVP is required to participate in this call. Click here to register.

SOLVING COMPLIANCE PROBLEMS UNDER THE NEW FMLA REGULATIONS

Tuesday, May 15, 20122:00 PM (Eastern)

Presented byKimberly Harrell, MS, PHR, Sr. Human Resources Consultant, HR Partner

The recently issued Family and Medical Leave Act (FMLA) regulations are requiringemployers to rethink their FMLA policies, procedures and documentation.

The new regulations also provide interpretations to major FMLA developments, includingGINA’s safe harbor rules and the in loco parentis rule.

These new regulations have not lessened the confusion for employers, especially in areassuch as determining what is a qualifying serious health condition, complying withnotification and certification requirements, and providing intermittent leave.

Please join us for an informational overview of FMLA as it exists today, including recentcourt cases interpreting FMLA, as well as an updated look at what the future holds for FMLAlegislation and strategic enforcement.

Participant AccessAdvance RSVP is required to participate in this call. Click here to register.

These programs have been approved for 1 (General) recertification credit hourtoward PHR, SPHR and GPHR recertification through the HR CertificationInstitute. For more information about certification or recertification, pleasevisit the HR Certification Institute website at www.hrci.org. The use of this sealis not an endorsement by the HR Certification Institute of the quality of theprogram. It means that this program has met the HR Certification Institute’scriteria to be pre-approved for recertification credit.

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ATLANTIC

Baltimore, MD410 584 7528

Bethesda, MD301 581 4261

Knoxville, TN865 588 8101

Memphis, TN901 248 3103

Nashville, TN615 872 3716

Norfolk, VA757 628 2303

Reston, VA703 435 7078

Richmond, VA804 527 2343

Rockville, MD301 692 3025

SOUTHEAST

Atlanta, GA404 224 5000

Birmingham, AL205 871 3300

Charlotte, NC704 344 4856

Gainesville, FL352 378 2511

Greenville, SC704 344 4856

Jacksonville, FL904 355 4600

Marietta, GA770 425 6700

Miami, FL305 421 6208

Mobile, AL251 544 0212

Orlando, FL407 562 2493

Raleigh, NC704 344 4856

Savannah, GA912 239 9047

Tallahassee, FL850 385 3636

Tampa, FL813 490 6808813 289 7996

Vero Beach, FL772 469 2842

MIDWEST

Appleton, WI800 236 3311

Chicago, IL312 288 7700312 348 7700

Cleveland, OH216 861 9100

Columbus, OH614 326 4722

East Lansing, MI517 349 3226

U.S. HUMAN CAPITAL PRACTICE OFFICE LOCATIONS

Willis

KEY CONTACTS

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Grand Rapids, MI248 735 7249

Milwaukee, WI414 203 5248414 259 8837

Minneapolis, MN763 302 7131 763 302 7209

Moline, IL309 764 9666

Pittsburgh, PA412 645 8506

Schaumburg, IL847 517 3469

SOUTH CENTRAL

Amarillo, TX806 376 4761

Austin, TX512 651 1660

Dallas, TX972 715 2194972 715 6272

Denver, CO303 765 1564303 773 1373

Houston, TX713 625 1017713 625 1082

McAllen, TX956 682 9423

Mills, WY307 266 6568

New Orleans, LA504 581 6151

Oklahoma City, OK405 232 0651

Overland Park, KS913 339 0800

San Antonio, TX210 979 7470

Wichita, KS316 263 3211

WESTERN

Fresno, CA559 256 6212

Irvine, CA949 885 1200

Las Vegas, NV602 787 6235602 787 6078

Los Angeles, CA213 607 6300

Novato, CA415 493 5210

Phoenix, AZ602 787 6235602 787 6078

Portland, OR503 274 6224

Rancho/Irvine, CA562 435 2259

San Diego, CA858 678 2000858 678 2132

San Francisco, CA415 291 1567

San Jose, CA408 436 7000

Seattle, WA800 456 1415

The information contained in this publication isnot intended to represent legal or tax advice andhas been prepared solely for educational purposes. You may wish to consult your attorneyor tax adviser regarding issues raised in this publication.

Willis Willis North America • 4 /12 14