Updates: Federal Law Alerts From July 2015

From: Federal Law Alerts

Updates: Federal Law Alerts From July 2015

Wage and Hour Division Releases Guidance on Worker Misclassification

On July 15, 2015, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued Administrator’s Interpretation (AI) No. 2015-1, entitled “The Application of the Fair Labor Standards Act’s ‘Suffer or Permit’ Standard in the Identification of Employees Who Are Misclassified as Independent Contractors.” The AI sets forth the Department of Labor’s test for determining whether a worker is properly classified as an independent contractor under the Fair Labor Standards Act (FLSA) and other federal statutes like the Family and Medical Leave Act (FMLA) that adopt the FLSA’s definition of “employee.” 

Read WHD Administrative Interpretation No. 2015-1

Agencies Release Final Rule on ACA Coverage of Preventive Services Without Cost Sharing

On July 14, 2015, the Departments of the Treasury, Labor, and Health and Human Services issued a Final Rule regarding coverage of certain preventive services without cost sharing under the Affordable Care Act. The rule finalizes provisions from an interim final rule related to coverage of preventive services; an interim final rule related to the process an eligible organization uses to provide notice of its religious objection to the coverage of contraceptive services; and a proposed rule expanding the set of entities eligible for an accommodation with respect to coverage of contraceptive services. Among the limited changes, the Final Rule allows eligible organizations to notify the Department of Health and Human Services (HHS) in writing of their religious objection to providing contraception coverage, as an alternative to filling out a Department of Labor (DOL) form to provide to their issuer or third-party administrator. HHS and the DOL would then notify insurers and third party administrators of the organization’s objection so that enrollees in plans of such organizations receive separate payments for contraceptive services.

The Final Rule goes into effect in 60 days.

Read the Final Rule