labor lawAdivision of labor law center

Employers in Michigan will soon have an infusion of highly-skilled workers thanks to more than $5.8 million in worker training grants to 2 community colleges and a city development agency.

The Detroit Workforce Development Department will use a grant of $1,850,000 to train workers in the hospitality and retail industries.

A grant of $2 million goes to the St. Clair County Community College to train workers in transportation, distribution and logistics. The school is located in Port Huron, a small city on the US/Canada border that features the Blue Water Bridge.

An Auburn Hills community college is the third winner. Workers for the nanotechnology industry will train at Oakland Community College under a $1,960,497 grant. The school in southeast Michigan is best known for its participation in the Michigan No Worker Left Behind program of job training for the unemployed.

The President’s Community Based Job Training Grants Initiative awards grants to community colleges and training facilities to help workers compete for jobs in high-growth industries. The program was established in 2005 and awarded grants to 72 institutions. In 2006, the second round awarded 70 grants.

In 2008, according to a recent announcement by the U. S. Department of Labor , 69 community colleges across America were granted $125 million under this program.

These funds will assist workers in 36 states, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.

Secretary of Labor Elaine L. Chao said, “Community colleges are in a unique position to prepare local workers for careers in high-growth industries. The $125 million awarded today will expand enrollment in education and training programs and provide more workers with the skills they need to succeed.”

The focus of the Community-Based Job Training Grants is to provide community colleges with programs to train people in areas where industries need workers with a particular set of skills. For example, a grant for training in the energy industry may be awarded to a community college in New Mexico near a cluster of nuclear power plants that require more skilled workers.

As a result of factors such as globalization, technology, innovation and an aging workforce, many industries are in dire need of skilled employees. Industries across the county, including advanced manufacturing and construction are seeking skilled employees. Regional industries, too, are in need of qualified workers. For example, Crescent City, California’s hospitality industry needs skilled workers.

The Employee Retirement Income Security Act (ERISA) sets the rules on how employers manage their employee retirement and benefit plans. Companies who violate these rules are subject to fines and penalties, unless they utilize the VFCP.

Participating in VFCP can save employers in California thousands of dollars in taxes, fees and penalties. Now employers can learn more about this exciting program at a free seminar sponsored by the U.S. Department of Labor.

On Monday June 9, 2008 the US DOL will host a VFCP workshop for employers at the Courtyard Foothill Ranch Irvine Spectrum, on Portola Parkway. The event runs from 8:30 am to 10:30 am, with registration at 8:00 am.

The event is limited to 100 participants, on a first-come first-served basis, so register early using this online form. For more information, or to register by phone, call Wendy Morgan at (626) 229-1032.

The VFCP (Voluntary Fiduciary Correction Program) was established in 2002. In 2006, the VFCP was expanded and streamlined, and allows businesses to avoid prosecution for ERISA violations by voluntarily correcting those violations. Nearly twenty separate categories of transactions can be corrected under the VFCP, including:

• Participant Loans Failing to Comply with Plan Provisions for Amount, Duration, or Level Amortization

• Defaulted Participant Loans

• Purchase of Assets by Plans from Parties in Interest

• Sale of Assets by Plans to Parties in Interest

• Sale and Leaseback of Property to Sponsoring Employers

• Purchase of Assets from Non-Parties in Interest at More Than Fair Market Value

• Sale of Assets to Non-Parties in Interest at Less Than Fair Market Value

• Holding of an Illiquid Asset Previously Purchased by Plan

• Benefit Payments Based on Improper Valuation of Plan Assets

• Payment of Duplicate, Excessive, or Unnecessary Compensation

• Improper Payment of Expenses by Plan

• Payment of Dual Compensation to Plan Fiduciaries

The VFCP is not a pass, however, for employers to get out of accepting responsibility for their ERISA violations. The VFCP has certain criteria and procedures that must be followed. To exempt themselves from enforcement actions resulting from these violations, the companies must completely and accurately correct all violations. In addition, the employers must provide proof that the violations were all rectified.

Employers using the can be granted relief from excise taxes, and in some cases, relief from penalties by the IRS. The VFCP covers the employers, the sponsors of the employee benefit plan, the parties in interest and the officials. Failure to comply with the VFCP protocols and rules can result in sanctions against the employer, including civil penalties, as stated in ERISA Sections 502 (I) and 502 (i).

Here’s a great resource for HR professionals and employers struggling with the annual reporting demands for pension, healthcare and other benefit plans under federal regulations.

The U.S. Department of Labor will host a free May 8 webcast on federal benefit reporting requirements, including form 5500 reporting requirements.

The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) is sponsoring the event.

This second in a series of EBSA webcasts will help employers and plan administrators meet their obligations under ERISA to file timely and accurate financial reports on the operations of pension, health and other benefit plans.

According to sources at the EBSA, the webcast will address ways to avoid common filing errors, how to select the accountant best qualified to audit your plan, what to be aware of when reporting alternative investments, and rules on “blackout notices.”

In addition, the webcast will also provide important information to 403(b) plan sponsors to help them prepare for expanded filing requirements, and preparing for an audit of the plan. The Internal Revenue Service will participate in the event to discuss its late and stop-filer program.

The series is being offered as part of EBSA compliance assistance program entitled Getting It Right - Know Your Fiduciary Responsibilities, to help employers and plan administrators meet their fiduciary responsibilities and avoid potential civil penalties under the law.

The webcast is open to employers, HR professionals and benefit plan administrators.

Although the webcast is free, participation is limited and registration is required.

For more information, visit the EBSA online at www.dol.govebsa or call 202-693-8660.

The free webcast will take place on Thursday May 8 from noon to 2 pm Eastern Standard Time. Register live on the internet by clicking here, or click on “Plan Filing Update” under “Compliance Workshops” at www.dol.gov/ebsa/.

The Employee Retirement Income Security Act (ERISA) requires plan administrators — the people who run plans — to give plan participants in writing the most important facts they need to know about their retirement and health benefit plans including plan rules, financial information, and documents on the operation and management of the plan.

Some of these facts must be provided to participants regularly and automatically by the plan administrator. Others are available upon request, free-of-charge or for copying fees. The request should be made in writing.

One of the most important documents participants are entitled to receive automatically when becoming a participant of an ERISA-covered retirement or health benefit plan or a beneficiary receiving benefits under such a plan, is a summary of the plan, called the summary plan description or SPD. The plan administrator is legally obligated to provide to participants, free of charge, the SPD.

The summary plan description is an important document that tells participants what the plan provides and how it operates. It provides information on when an employee can begin to participate in the plan, how service and benefits are calculated, when benefits are vested, when and in what form benefits are paid, and how to file a claim for benefits. If a plan is changed, participants must be informed, either through a revised summary plan description, or in a separate document, called a summary of material modifications, which also must be given to participants free of charge.

Pennsylvania employers will receive a welcome infusion of highly trained workers due to two recent training grants totaling more than $3.7 million.

According to a recent announcement made by the U. S. Department of Labor, the President’s Community-Based Job Training Grants Initiative awarded $125 million to 69 community colleges across the United States, including two to Pennsylvania.

The competition was announced in August of 2007, and a total of 341 applications were received. The funds go to training facilities and community colleges to aid workers in competing for high-growth industry jobs.

“Preparing local residents for careers in growing hometown industries is critical to improving the quality of life of thousands of Americans,” said acting Assistant Secretary of Labor for Employment and Training Brent R. Orrell. “These programs will provide participants not only with the skills needed to gain employment, but the change to enter into careers that offer opportunities for advancement.”

The Delaware County Community College in Media received $1,999,826 to train workers in advanced manufacturing.

Lehigh Carbon Community College in Schnecksville received $1,711,334 to train workers for the transportation, distribution and logistics industry.

Both programs were identified by employers as able to produce workers with skills that are needed now and in the immediate future.

The focus of the Grants program is to boost the community college’s role in aiding American workers, and to assist these workers in gaining high-paying jobs with advancement.

To achieve this goal, the grants provide funding for community colleges in areas where industries need workers with a particular type of training. For example, several biotechnology labs in California are seeking trained employees. The Community Based Job Training Grant could be awarded to a community college near these labs, in order to train workers for those positions.

Due to advances in technology and innovation, to globalization and to a workforce that is aging, many industries are in dire need of skilled workers. Nationwide, these industries include biotechnology, logistics and advanced manufacturing.

On July 1, 2008 the West Virginia minimum wage will increase by 70 cents, from $6.55 per hour to $7.25 per hour. The state minimum wage applies to employers with 6 or more workers at one location.

West Virginia employers may pay workers under 20 a training wage of $5.15 per hour for the first 90 days of employment, only if certain conditions are met.

Employees in the state are entitled to overtime at 1.5 times the usual hourly rate after 40 hours, under both state and federal law.

West Virginia employers may take a 20% tip credit for employees who usually receive gratuities, so the new wage for tipped employees will be $5.80 per hour.

This increase was passed in 2006, as part of a 3-tiered increase to push the state minimum wage from $5.15 per hour to $7.25 per hour. That’s a change of $2.10 per hour in just over two years.

Under state law, West Virginia employers must provide meal breaks for most workers. Article 2 of the Safety and Welfare of Employees Act was passed in 1994. Statute 21-3-10a specifies meal breaks for almost all employees. The statute requires that employers will provide at least 20 minutes for a meal break during the course of a workday that is 6 hours long, or longer. “This provision shall be required in all situations where employees are not afforded necessary breaks and/or permitted to eat while working” under the law.

Under both federal and West Virginia law, meal breaks that are 20 minutes or longer may be unpaid, as long as the employee is completely relieved of all work duties. Employees may be required to remain on the employer’s premises during breaks.

Employees must be paid for breaks shorter than 15 minutes under both state and federal law. Title 42, Series 8 states under the West Virginia Minimum Wage and Maximum hour standards (42-5-2. Definitions, 2.6), states that “Rest periods of short duration, running from (5) to (20) minutes, must counted as hours worked.”

In addition, Title 42, Series 5 of the Wage Payment and Collection Act, states that …”when authorized by an employer, break periods and or rest periods which do not exceed (20) minutes duration must be counted as hours worked.”

The state sets stricter break standards for workers under the age of 16. Under Article 6 of the Child Labor Law 21-6-7, workers under 16 must receive a 30-minute uninterrupted meal break. Employees under 16 cannot be required to work more than 5 hours without a break, and the break may not be shorter than 30 minutes.

The West Virginia statutes include important provisions for nurses and other licensed health care workers, who provide direct patient care.

The nationwide nursing shortage has prompted several states, including Massachusetts, to limit the amount of overtime that a nurse may be required to work by her employer. West Virginia has a similar law.

In some cases, qualified nurses were leaving the field and seeking employment elsewhere because of the stresses of the profession. A major contributor to these stresses was the long hours and especially extensive mandatory overtime.

The West Virginia law limiting nurses overtime was created to safeguard the efficiency, health and general well-being of health care workers in hospitals, as well as the health and general well-being of the persons who use their services. To insure quality patient care and well-rested and alert nursing staffing, it was determined that hospitals should provide adequate and safe staffing without the use of mandatory overtime.

To insure that this happens, limitations were set on overtime required of nurses. Specific Code language can be found in the West Virginia statutes at 21-5F-3, Hospital nursing overtime limitations and requirements.

The Wage & Hour Division of the West Virginia Division of Labor enforces these and other state labor laws. The division investigates employee complaints of unpaid wages and benefits. During a single year, the Wage & Hour Division collected more than $1.7 million in unpaid wages and benefits for West Virginia workers.