Legislative Updates

The IRS announced that the Patient-Centered Outcomes Research Institute (PCORI) Fee will be increasing from $3.00 to $3.22 per covered member for all plans with plan years that end on or after October 1, 2023 and before October 1, 2024.  

Self-Insured employers pay the fee directly to the IRS and report the number of covered members on Form 720 by July 31, 2024.  For fully insured employers, the fee is paid by the insurance provider.  

The IRS announced that health flexible spending account limits will increase by $150 for a total of $3,200 in 2024.  For employers who utilize the carry-over provisions, employees will be able to carry over an additional $30 for a total of $640 in 2024.

The IRS announced 2024 contributions rates will increase by $500 for an annual election of $23,000 for 401(k), 403(b), or 457 plans.  The age 50 catch-up contribution limit will remain the same at $7,500.    

On October 27, the NLRB published a notice of final rule titled, "Standard for Determining Joint Employer Status."  Under the new rule, an entity may be considered a joint employer of a group of employees if each entity has an employment relationship with the employees and they share one or more of the essential terms and conditions of employment.  Some examples would be wages and benefits, hours of work/schedules, duties performed, supervision, work rules and discipline, tenure and working conditions.  

The final rule rescinds the 2020 final rule from the prior board.  The new rule provides vast guidance to parties about their rights and responsibilities of joint-employer establishments.  

Read the final notice at: 2023-23573.pdf (federalregister.gov)

Earlier this month, the EEOC issued the proposed Updated Workplace Harassment Guidance to Protect Workers by a vote of 3 to 2.  The proposed guidance provides updated examples on a wide range of scenarios and case law on workplace harassment.  The EEOC welcomes public comment until November 1st when they plan to issue final guidance. 

EEOC Guidance: PROPOSED Enforcement Guidance on Harassment in the Workplace | U.S. Equal Employment Opportunity Commission (eeoc.gov) 

The US Equal Employment Opportunity Commission announced an updated deadline for employers to submit their EEO-1 reports which is December 5, 2023.  All private employers with at least 100 employees as well as federal contractors and first--tier subcontractors with at least 50 employees and $50,000 in contracts are required to submit the EEO-1 report on an annual basis.  State and local governments and public-school systems are not required to submit the EEO-1 report.  

The IRS announced that the 2024 affordability factor for group health plans will decrease to 8.39 percent which is down from 9.12 percent.  This is the lowest the affordability factor has been since the ACA was implemented.  

Read the IRS bulletin at: 26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (irs.gov)

On 8/30/23, the Department of Labor announced a proposed rule that would extend overtime protections to workers earning less than $1,059 per week or about $55,000 per year.  The DOL will take public comments for 60 days before considering and publishing a final rule.  

Read the press release at: Department of Labor announces proposal to restore, extend overtime protections for 3.6 million low-paid salaried workers | U.S. Department of Labor (dol.gov)

The IRS delayed part of the SECURE 2.0 law that was passed last December.  Employees and plan sponsors were originally scheduled to require earners making $145,000 or more to make catch-up contributions on a Roth basis instead of a Pre-tax basis effective 1/1/2024.  This has now been delayed until 2026 per IRS Notice 2023.62.    

On August 7th, the EEOC announced a proposed rule for implementing the Pregnant Workers Fairness Act which provides examples of possible reasonable accommodations.  The regulations will be published in the Federal Register on Friday at Federal Register :: Public Inspection: Regulations to Implement the Pregnant Workers Fairness Act.

Public comment will be open for 60 days.  The regulations seek input on if there should be additional examples or situations. 

Read the proposed regulations at: 2023-17041.pdf (federalregister.gov)