Compliance August 25, 2005

IRS and US Treasury Issue Proposed Regulations for HSAs

August 25, 2005 (PLANSPONSOR.com) - The IRS and US Treasury have issued proposed regulations regarding comparability rules for employer contributions to employees' Health Savings Accounts (HSAs).
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While other tax-favored benefits provided by employers are subject to rules of non-discrimination between highly compensated employees and non highly compensated employees, HSAs are subject to rules stating employer pre-tax contributions to employee HSA accounts must be comparable.

The Department of Treasury said in a press release that regulations state that all employer contributions to employee HSAs must be the same amount or same percentage of the High Deductible Health Plan (HDHP) deductible for employees within the same category (single or family) of health plan coverage.

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The proposed regulations also address issues such as what to do if an employee has not established an HSA at the time an employer funds employee HSAs, and steps that can be taken if contributions are determined to not be comparable.

The regulations provide an exception to comparability rules for employer HSA contributions made through cafeteria plans.

The proposed regulations are  here .

Benefits August 24, 2005

NLRB Upholds Employer's Ban On Employee Socializing

August 24, 2005 (PLANSPONSOR.com) - The National Labor Relations Board (NLRB) has ruled with a company which has a policy directing employees not to "…fraternize on or off duty, date, or become overly friendly with the client's employees or with co-employees."
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The Desert Sun reports that Daniel Higgins, a security guard for Guardsmark LLC, was subjected to a shift change after a supervisor at a San Francisco hotel claimed “he was leaving his post unattended and becoming too friendly with some of the other employees.” The ruling has created controversy similar to the one early this year surrounding Weyco’s policy banning employees from smoking during work or private time (See Lawyers Smolder over MI Firm’s No-Smoking Policy ).

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Locals interviewed by The Desert Sun mostly complained that not allowing socializing between coworkers would affect the friendliness and teamwork attitude at the workplace. Antonio Ruiz, a lawyer for Service Employees International Union, Local 24/7, feels the rule is another “Big Brother” step in the workplace.

But also at issue, Ruiz says, is the union’s position that this policy goes against workers right to organize.

In a BLR.com report, Guardsmark says the policy is necessary for business since “A security officer who is overly familiar with a fellow security officer or a client’s employee may overlook signals that, if detected, could be instrumental in preventing workplace violence.”

The ruling is under appeal in a US District Court in Washington D.C.

The NLRB ruling can be found here .

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