Benefits May 21, 2010

EEOC Sues Orkin over Hiring Practices

May 21, 2010 (PLANSPONSOR.com) – The U.S. Equal Employment Opportunity Commission (EEOC) has filed a federal court lawsuit accusing pest control company Orkin of discriminating against older workers in hiring.
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An EEOC news release said Orkin is also accused of favoring Church  of Jesus Christ of Latter-Day Saints (LDS) (Mormon) applicants – particularly  returned missionaries.

According to the EEOC’s suit, Orkin discriminated during the hiring process against Thomas Kokezas, as well as a class of individuals based on their age, over 40, or religion, non-Mormon.   The EEOC  suit  alleges that Orkin advertised on Craig’s List for a recruiter “to assist in hiring LDS missionaries for seasonal  employ­ment” and stating that the summer position was great for “RMs,” which stands for “returned missionaries,” who tend to be in their 20s.

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The agency said such advertising is illegal because it shows a preference for a particular religion, and also a preference for younger workers. In  addition, the EEOC alleges that the discrimination apparent from the advertisements became a reality when Orkin filled the summer jobs with applicants in their 20s, most of whom were LDS/Mormon.

The EEOC lawsuit arose out of a complaint filed by Kokezas, who responded to the Orkin ad on Craig’s List. The EEOC alleges that Orkin’s agent asked Kokezas his age, then cut the interview short after learning Kokezas was 51.

In a subsequent call, Orkin’s agent admitted that he asked all applicants their age. Kokezas complained to Orkin’s corporate office about the discrimination, and was referred to other managers, but was never hired or even allowed to fill out an application, which the EEOC alleges is retaliation for his complaint.

Administration May 21, 2010

House Bill Carries Pension Funding Relief

May 21, 2010 (PLANSPONSOR.com) – A bill expected to be considered by the U.S. House of Representatives on May 25 includes long-awaited pension funding relief measures, according to a trade group.
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James A. Klein, president of the American Benefits Council (ABC) said the American Jobs and Closing Tax Loopholes Act (H.R. 4213) includes provisions allowing single-employer and multiemployer pension plans an extended amortization of losses suffered in the recent market decline.

“The unprecedented ‘perfect storm’ of depressed financial markets, low interest rates and new pension funding rules has artificially inflated companies’ defined benefit pension obligations,” Klein said, in a statement. “Millions of dollars, normally earmarked for job creation and capital investment, are now being diverted into already healthy pension funds. This relief will help companies invest in jobs and infrastructure.”

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According to Klein, the bill also imposes new disclosure requirements on defined contribution plans.

“We appreciate the efforts of Representatives George Miller (D-California) and Richard Neal (D-Massachusetts), who worked with us to ensure the transparency and security of workplace savings plans,” Klein said. “We remain concerned, however, that the effective date for adoption of these new rules is unworkable given the need for extensive regulatory guidance, as these new rules will require substantial changes to existing systems and procedures. We intend to work with the U.S. Department of Labor to obtain a ‘good faith’ standard for compliance with the new rules.”

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