labor lawAdivision of labor law center

Several features of the $780 billion stimulus plan passed this week will affect how Human Resources professionals perform their jobs in 2009 and beyond.

The goal of the law signed by President Barack Obama on February 17, 2009 is to save or create more than 3 million jobs. The bill, H.R. 1, was developed jointly by the House and Senate.

 

During negotiation, members of the House and Senate removed all mention of the federal government’s E-Verify system. The initial bill passed in the House would have required that any business receiving funds from the federal government under the stimulus bill use that system to verify that all employees are legally authorized to work in the U.S., using that system.

 

E-Verify is still required by many states and local governments, and is free to all private employers in the country. All federal contractors will be required to implement E-Verify later this year.

 

In addition, the stimulus bill requires that any employer receiving aid hire U.S. workers who have been laid off before recruiting and hiring workers from other countries on H-1B visas. This measure is expected to have the biggest impact on IT employees. Employers are still permitted to hire workers on H-1B visas, but most show good cause why they cannot fill the positions with workers from the U.S. In addition, the employer must show that they are paying workers on H-1B visas the same salary as their U.S. counterparts.

 

One of the most controversial HR components set limits on companies that accepted funds under the Bush Administration TARP or Troubled Asset Relief Program. The final version of the bill includes a sliding scale that would place limits on compensation for 5 to 20 of a company’s highest-paid executives. More executives would be affected at companies that accept larger amounts of funding from TARP.

 

The bill also includes funding for extended unemployment benefits for workers and continued health care coverage for the unemployed. Currently the usual 26-weeks of unemployment has been extended by 7 weeks so workers can collect unemployment for a total of 33 weeks. That extension, which as scheduled to end on March 31, 2009 has now been extended to December 31, 2009. In addition, workers will not have to pay federal taxes on the first $2,400 of unemployment benefits.

 

Some qualified workers will have COBRA health care premiums subsidized 65% for up to 12 months. The plan also includes funds for improved health care technology. Workers who have lost their jobs due to companies moving factories to other countries, will be eligible for training and other benefits under TAA or Trade Adjustment Assistance.

 

 

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