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With the Affordable Care Act, midterm elections, and other scheduled labor law changes, there are several new major pieces of legislation heading our way in 2015. Below is a summary of some of the key 2015 labor law updates and trends to keep in mind as we approach the end of the year:
1. The Employer Mandate – The Employer Mandate is the provision in the Affordable Care Act that requires all employers with 50 or more full time equivalent employees to offer a certain level of health insurance coverage at an affordable rate to all full time employees or face a penalty. An Employer Mandate penalty is triggered if the company fails to comply with the requirements and at least one full‐time employee of a covered employer receives a premium tax credit for purchasing individual coverage on one of the new State Insurance Exchanges, also called the Health Insurance Marketplace. Large employers (those with 100 or more full‐time equivalent employees) who do not comply with the Employer Mandate may begin incurring Employer Mandate penalties in each month of the 2015 tax year.
Midsized employers (those with 50‐99 full time equivalent employees) enjoy an additional year of reprieve as long as the organization did not reduce its worker’s hours/workforce to get below the 99 employee threshold without a bona fide reason or materially reduce its health care plan (the one that was in existence as of 2/9/14), though they will be required to comply with reporting requirements in 2015. For midsized organizations that do not comply with the provisions of the law, Employer Mandate penalties may begin being incurred each month of the 2016 tax year.
2. Minimum Wage Increase – New York’s minimum wage will increase to $8.75 per hour on December 31st, 2014. For tipped employees, the minimum cash wage (CW) and maximum tip credit (TC) will vary depending on the industry. For service employees, the CW will remain $5.65 per hour, and the TC will increase from $2.35 to $3.10 per hour. For resort hotel service employees, the CW will remain $4.90 per hour, and the TC will increase from $3.10 to $3.85 per hour. For food service workers, the CW will remain $5.00 per hour, and the TC will increase from $3.00 to $3.75 per hour. With a few exceptions, almost every person who works in New York State is covered by the Minimum Wage Law and Regulations and must be paid accordingly.
3. New Flexible Spending Account, Health Savings Account, and 401(k) Account Limits – In 2015, the maximum amounts for certain health and welfare benefit plans will be increasing as listed below:
- Medical Flexible Spending Accounts (FSA) – Beginning in 2015, the maximum amount an employee may contribute to a Medical FSA will increase to $2,550, up $50 from the 2014 limit.
- Health Savings Accounts (HSA) – Beginning in 2015, the HSA contribution limit for a single individual will increase to $3350, up $50 from 2014. The HSA family limit will increase to $6650, up $100 from 2014. The HSA catch-up contribution for participants age 55 or older will remain the same at $1000.
- 401(k) & 403(b) Account Contributions – Beginning in 2015, employees will be able to contribute up to $18,000 to their 401(k) or 403(b) plans, up $500 from 2014.
So the time is now to begin planning for these statutory changes heading our way in 2015. Should you have questions or concerns regarding any of this new legislation, we recommend directing them to your Human Resources Professional, or contact GTM at (518) 373-4111.
