SHRM manager addresses HR issues following election

DeWITT  —  The Nov. 6 presidential election didn’t lift the cloud of ambiguity hovering around human resources, says a manager from the Society for Human Resource Management (SHRM) who was in Central New York a few days after the polls closed.

Michael Layman, manager of labor and employment policy at SHRM, visited the Syracuse area Nov. 9 to speak to the organization’s Central New York Chapter. He gave a presentation at the Double Tree by Hilton Hotel at 6301 State Route 298 in DeWitt to about 30 Central New York SHRM members.

“We probably have more uncertainty now than six weeks ago, six months ago,” Layman says. “Because it’s very short-term uncertainty.”

The looming federal fiscal cliff — an increase in tax rates coupled with automatic spending cuts, especially defense cuts, known as sequestration — is the cause of the short-term uncertainty, according to Layman. Pressure is mounting on the U.S. Congress to pass legislation that will prevent the cliff before it arrives with the New Year, he adds.

It doesn’t help that this is a lame-duck session of Congress, a session that includes members who were voted out of office or opted not to run for re-election, Layman says. Therefore, he thinks the issue could linger into 2013, causing headaches for human-resources departments.

“The most likely scenario in the lame-duck session is that the two parties agree to punt most of the issues into the New Year by three to six months and let the new Congress handle it,” he says. “So that will be complex for employers and benefit administrators to deal with a short-term tax extension, if Congress is to change tax rates in the middle of next year through larger tax reform.”

Federal contractors are also in an awkward position, according to Layman. If sequestration does go through, many could lose a large chunk of revenue, which could necessitate laying off employees, he says. But Department of Labor guidance told firms they don’t have to issue notices to employees that could be affected by such layoffs to comply with Worker Adjustment and Retraining Notification (WARN) Act requirements that necessitate notification 60 days before mass layoffs or plant closings.

 Some companies still issued conditional notices, Layman says. Others, such as Lockheed Martin (NYSE: LMT), which employs about 2,300 people in Salina and another 2,900 people in Owego, have publicly stated that they will not issue sequestration-related WARN notices.

“If the employers didn’t comply with the WARN Act, will they be liable for back pay and missed wages?” Layman says. “I certainly have no answer for that, but that’s one big issue that HR professionals and employers are encouraged to seek counsel on.”

Layman extended his discussion beyond the fiscal cliff’s ramifications. He discussed an executive order President Barack Obama issued giving some undocumented workers under the age of 30 who came to the United States before they were 16 years old a two-year deferral from deportation. That order is likely to stand with the president’s re-election, he says.

But it could cause unresolved issues for human-resources departments.

“There’s a lot of questions about what’s that going to mean for an employer when an undocumented employee comes and applies for a job,” Layman says. “This is another issue where folks are going to want to seek legal counsel based upon their circumstances.”

Other issues Layman discussed included Internal Revenue Code Section 127 benefits — employers’ ability to give their workers up to $5,250 in tax-free educational assistance per year. Those benefits, which are a major retention tool, are set to expire at the end of the year, he says.

And, the election seemed to solidify the federal health-care reform law, Layman continues, adding that human-resources departments should still watch out for Congressional action that would modify it.

The Central New York SHRM has about 550 members, according to its chapter president, Pamela Gavenda. It brought Layman to the area to give its members a heads-up on issues they may face over the next 12 months.

“We thought this would be useful after the elections so we could get a preview of what’s going on over the next year,” Gavenda says.

DeWITT  —  The Nov. 6 presidential election didn’t lift the cloud of ambiguity hovering around human resources, says a manager from the Society for Human Resource Management (SHRM) who was in Central New York a few days after the polls closed.

Michael Layman, manager of labor and employment policy at SHRM, visited the Syracuse area Nov. 9 to speak to the organization’s Central New York Chapter. He gave a presentation at the Double Tree by Hilton Hotel at 6301 State Route 298 in DeWitt to about 30 Central New York SHRM members.

“We probably have more uncertainty now than six weeks ago, six months ago,” Layman says. “Because it’s very short-term uncertainty.”

The looming federal fiscal cliff — an increase in tax rates coupled with automatic spending cuts, especially defense cuts, known as sequestration — is the cause of the short-term uncertainty, according to Layman. Pressure is mounting on the U.S. Congress to pass legislation that will prevent the cliff before it arrives with the New Year, he adds.

It doesn’t help that this is a lame-duck session of Congress, a session that includes members who were voted out of office or opted not to run for re-election, Layman says. Therefore, he thinks the issue could linger into 2013, causing headaches for human-resources departments.

“The most likely scenario in the lame-duck session is that the two parties agree to punt most of the issues into the New Year by three to six months and let the new Congress handle it,” he says. “So that will be complex for employers and benefit administrators to deal with a short-term tax extension, if Congress is to change tax rates in the middle of next year through larger tax reform.”

Federal contractors are also in an awkward position, according to Layman. If sequestration does go through, many could lose a large chunk of revenue, which could necessitate laying off employees, he says. But Department of Labor guidance told firms they don’t have to issue notices to employees that could be affected by such layoffs to comply with Worker Adjustment and Retraining Notification (WARN) Act requirements that necessitate notification 60 days before mass layoffs or plant closings.

 Some companies still issued conditional notices, Layman says. Others, such as Lockheed Martin (NYSE: LMT), which employs about 2,300 people in Salina and another 2,900 people in Owego, have publicly stated that they will not issue sequestration-related WARN notices.

“If the employers didn’t comply with the WARN Act, will they be liable for back pay and missed wages?” Layman says. “I certainly have no answer for that, but that’s one big issue that HR professionals and employers are encouraged to seek counsel on.”

Layman extended his discussion beyond the fiscal cliff’s ramifications. He discussed an executive order President Barack Obama issued giving some undocumented workers under the age of 30 who came to the United States before they were 16 years old a two-year deferral from deportation. That order is likely to stand with the president’s re-election, he says.

But it could cause unresolved issues for human-resources departments.

“There’s a lot of questions about what’s that going to mean for an employer when an undocumented employee comes and applies for a job,” Layman says. “This is another issue where folks are going to want to seek legal counsel based upon their circumstances.”

Other issues Layman discussed included Internal Revenue Code Section 127 benefits — employers’ ability to give their workers up to $5,250 in tax-free educational assistance per year. Those benefits, which are a major retention tool, are set to expire at the end of the year, he says.

And, the election seemed to solidify the federal health-care reform law, Layman continues, adding that human-resources departments should still watch out for Congressional action that would modify it.

The Central New York SHRM has about 550 members, according to its chapter president, Pamela Gavenda. It brought Layman to the area to give its members a heads-up on issues they may face over the next 12 months.

“We thought this would be useful after the elections so we could get a preview of what’s going on over the next year,” Gavenda says.