A new administration changes the business environment, and action may be required to protect your business and employees. As many of the former administration’s health care initiatives are being rolled back or halted, employers are in an uncertain place in regard to compliance regulations and reform laws. This infused complication comes in addition to the already complicated day-to-day tasks of an organization. Here are 5 key challenges to be aware of this year:
1. Repealing of the ACA: President Trump is taking initiative in unraveling the Affordable Care Act (ACA). He recently issued an executive order that directs federal agencies to waive, delay, or grant exemptions from ACA requirements that may impose a financial burden. Experts agree that the best way for employers to prepare for these changes is to increase their knowledge of employee health care in order to make employees more educated consumers. Focusing on employee education is the best way to combat the changing business environment.
2. Employee Retention and Engagement: With millennials projected to make up the largest amount of the workforce by 2020, employers need to rethink their company culture. This generation is characterized by a small attention span, and 44 percent of millennials say they would quit their jobs within two years if given the chance. A company culture that is fun, diverse, and engaging is ever increasing in importance. Now is the time to consider new retention and engagement initiatives.
3. Paid Family and Medical Leave: According to the Department of Labor (DOL), over 88 percent of private sector employees do not have paid leave options. However states like California, New Jersey and Rhode Island all have paid leave laws in place, and other states are moving toward this trend. It is important to be aware of your states changing legislation, and how soon this could affect your business.
4. EEO-1 Form Update: The Equal Employment Opportunity Commission (EEOC) has formally adopted modifications to the Employer Information Report (EEO-1), effective March 31, 2018. Beginning at this time, employers will need to report their total number of workers, their gender and race, their pay grade and job classification. The EEOC says this will help it more effectively investigate discrimination claims and pay disparities. In order to prepare for this new requirement, employers should begin compiling this information in 2017.
5. I-9 Updates: The latest version of the I-9 form is now effective, as of Jan. 22, 2017. This means that employers must use the new version for all new employees or face steep penalties. However, employers are not required to fill out a new form for existing employees. The main changes include marking “N/A” in fields that would previously be left blank, a "Citizenship/Immigration Status" field, and dedicated areas for notes.
With all these potential changes in 2017, it is harder than ever to stay on top of all your HR needs. Moulton & Hardin offers a OneSource Platform to streamline time keeping, payroll, benefits, paperless onboarding and more into one simple dashboard. See if your business is a good fit here.