The Obama Administration’s Regulation of Labor & Employment Law in America
By Clyde H. Jacob III, Director, Labor & Employment Law Section
Coats Rose – New Orleans
The inauguration of the Obama Administration brought with it a wave of change in employment law, with many new regulations and amended policies on the docket since January. Employers, employees and labor unions need to be aware of these new and proposed laws, and they need to understand the impact that the proposed and approved legislation could mean.
The 110th Congress, which ended in 2008, saw the introduction of more federal employment laws than at any time in our nation’s history. Some new laws and regulations were enacted in 2008 and in early 2009; however, many of the proposed laws were not. The new 111th Congress is expected to reintroduce many of the proposed laws that did not pass, now that a sympathetic Congress and Administration is in place. It is expected that many of these new laws, which will create more obligations and responsibilities for employers, will pass.
In this report, and in subsequent reports, we will begin a brief explanation of some of the most impactful and critical new laws and regulations that were enacted or proposed by the 110th and continued with the 111th Congress.
The American Recovery and Reinvestment Act (ARRA) of 2009
Signed into law by President Obama on February 17, 2009, this wide-ranging, comprehensive law included employment law provisions, beginning with funds allocation to the Department of Labor and changes to the Davis-Bacon Act. The Department of Labor’s increased budget dollars were meant to enforce worker protection laws, such as OSHA and the Fair Labor Standards Act. The Davis-Bacon Act, which provides for the payment of prevailing or union wages on construction projects in a particular area, was extended broadly to all stimulus project sites.
The ARRA also expands the privacy and security measures required under the Health Insurance Portability and Accountability Act (HIPAA). Whistleblower protection has been extended to state and local government workers, as well as private contractors, to expose corruption in stimulus spending.
Additionally, changes made regarding unemployment compensation allowed for a provision to increase amounts paid by $25.00 per week, once a state enters into an agreement with the Labor Secretary and ending on January 1, 2010. Other provisions that impact employment included modifying COBRA, the 1985 law that provides for extended healthcare benefits to separated employees, and significant limitations on executive compensation. Also included were provisions for increased commuter benefits and tax credits for hiring unemployed veterans and disconnected youth.
Over the next four years employers, employees and labor unions need to be prepared for what the change in administrations and party majority mean for their work lives. It is the responsibility of each entity to know and abide by the changing labor and employment laws as they come down from the Hill.