WSHRMA - Legislative Update

Legislative Update

September 2010

Like the last days of summer, the August Primaries came and went quickly. For a quick review on the results for our regions click here. Now the spotlight will shift to November’s election. The candidates
will be busy campaigning and preparing for debates and meetings. Don’t stand on the sidelines, get involved and be ready to share your HR voice on the issues that matter to you and the organizations
you represent. We have the power to make a difference by sharing our knowledge.

There are a couple Federal issues that we should keep on our radar as congress will resume after Labor Day.

Employer Provided Educational Assistance
This issue deals with Section 127 of the US tax code and it actually impacts a large number of employers and employees alike. Basically it allows employers to provide their employees with up to $5250 a year in tax free educational assistance. If congress does not act it is set to expire on Dec 31, 2010. The good news is that a few members of congress have taken action and have introduced the Employment Educational Assistance Act of 2010 (H.R.5600), this would make Section 127 permanent. This would mean that going forward employees would never have to report employer provided tuition reimbursement as personal income. This provision is an important tool for recruitment and retention for many employers. To advocate for this provision please contact your local congressional member to ask for their support.

Wall Street Reform Act
When Congress and the Obama Administration reached agreement on the Dodd-Frank Wall Street Reform and Consumer Protection Act, they agreed on a measure that encompasses more than just
changing the way Wall Street does business. It also includes additional provisions:

Whistleblower Protections - Strengthens the protection provisions within the Sarbanes-Oxley Act.

Diversity in the Workplace - Provides for the creation of a new diversity "czar" for each of the major federal financial regulatory agencies, and directs each agency to create an Office of
Minority and Women Inclusion. That office is authorized to take action if it concludes that an employer is not making a good-faith effort to comply with the diversity provisions of the new law.

Executive Compensation and Corporate Governance - This deal with issues such as recovery of wrongly awarded compensation, executive compensation disclosures, and other matters related to operational transparency.

To review a summary of the key provisions of the new law distributed by the Senate Banking Committee, click here.