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Listed below are some of the major federal laws affecting employees that employers are obligated to adhere to. Compliance with many of these laws is relatively simple if the correct procedure is followed. Please contact us if you have any questions on compliance. In many cases, we may direct you to a labor attorney because if your company does not comply, litigation or undue liability on the part of the employer may result.

An Overview

General Description Employers Subject to the Law Employees Protected by the Law Penalties for Non-Compliance Governing/ Enforcing Agency
ADA Americans with Disabilities Act Prohibits discrimination on the basis of disability. Title I covers employment, including job application procedures, hiring, advancement, discharge, compensation, job training, and all other aspects of employment. As of July 26, 1994, all employers with 15 or more employees, for at least 20 work weeks in the current or preceding calendar year. Those with a physical or mental impairment that substantially limits one or more major life activities, but who can perform the essential functions of the job. Compensatory and punitive damages for intentional discrimination subject to certain limitations, as well as attorney and expert fees. Equal Employment Opportunity Commission (EEOC). Employee may file suit in federal court if the EEOC does not.
ADEA Age Discrimination in Employment Act Prohibits employment discrimination on the basis of age. Employers engaged in industry affecting commerce with 20 or more employees for at least 20 workweeks in the current or preceding calendar year. All workers 40 years of age and older. Employers may be required to reinstate an employee and purge his or her employment record may also be liable for back pay, liquidated damages and legal fees. EEOC. Employee has up to three years in some cases to file suit after first filing claim with EEOC.
TITLE VII Civil Rights Act of 1964 Prohibits discrimination on the basis of race, color, religion, sex, or national origin. Employers engaged in interstate commerce who have 15 or more employees for at least 20 weeks in the current or preceding calendar year. Employees in the protected classes. Compensatory and punitive damages for intentional discrimination subject to certain limitations, as well as attorney and expert fees. EEOC. Employee may file suit in federal court if the EEOC does not.
Pregnancy Discrimination Act Prohibits discrimination on the basis of pregnancy. Employers engaged in interstate commerce who have 15 or more employees for at least 20 weeks in the current or preceding calendar year. Female employees and male employees if the discrimination affects receipt of fringe benefits by male employees' wives. Compensatory and punitive damages for intentional discrimination subject to certain limitations, as well as attorney and expert fees. EEOC. Employee may file suit in federal court if the EEOC does not.
COBRA Consolidated Omnibus Reconciliation Act Requires employers to give notice to and allow terminated employees and their dependents to elect, within a certain period of time, to continue health care coverage Applies to all employers offering group health plans except plans where an employer employed fewer than 20 employees on at least 50% of the working days, during the preceding calendar year, church plans and governmental plans. All employees who were covered under the employer's group health plan on the day before the qualifying event. Employer must pay excise tax of $100 a day per qualified beneficiary ($200 a day per family for the same qualifying event) to a maximum depending on the type of plans and the violation. Suits may result in monetary damages and an award of attorney fees. Department of Labor (DOL)
ERISA Employment Retirement Income Security Act Provides minimum consistent standards for employee benefits and retirement plans. Establishes reporting and disclosure requirements. All US employers with welfare benefit plans, except governmental and church plan, and plans maintained solely to comply with worker's compensation, unemployment compensation, or state disability laws. All employees eligible for the employer's welfare benefit plan or pension benefit plan. Penalties vary depending on which provisions of the Act are violated, but they include fines of up to $1,000 a day for failure to file Forms 5500 and 5500C, as well as criminal penalties for willful violations. DOL
FMLA Family MedicalLeave Act Requires employers to grant eligible employees up to 12 weeks of unpaid leave each year for the birth, adoption, or foster care of a child or the serious illness of the employee or a family member. Employers who have 50 or more employees for at least 20 work weeks in the current or preceding calendar year. Any employee who has worked at least 1,250 hours during the previous 12 months at a location where the employer had at least 50 employees within a 75 mile radius. Employees may sue for lost wages and benefits caused by a violation of the Act; for damages due to increased cost of care, as well as for reinstatement of employment and promotions. Attorney fees may also be awarded. DOL
Rehabilitation Act Prohibits employment discrimination based on physical or mental handicaps. Requires affirmative action. Federal contractors and subcontractors with contracts over $10,000 and employers who receive direct federal funding. Employees with a physical or mental impairment that substantially limits one or more major life activities. Withholding of progress payments to the contractor, cancellation of the contract, and debarment from future contracts. Office of Federal Contract Compliance Programs (OFCCP) may also seek court enforcement. EEOC, OFCCP in cooperation with contracting agencies
HIPAA Health Insurance Portability & Accountability Act Provides that a new employee or an employee who previously waived medical coverage due to prior coverage will have the right to transfer the prior carrier credit for pre-existing conditions. It also sets up Federal guidelines for pre-existing condition waiting periods. All plans effective on or after July 1, 1997. Also plans that renew on the plan anniversary after July 1, 1997 become HIPAA compliant on that date. All employees with Creditable Coverage from a prior carrier. Creditable Coverage will reduce or eliminate the Pre-existing condition clause waiting periods. Compliance and penalties are shared between the Employers and the Carrier. Penalties for non-compliance are up to $100 per day for each offense. DOL

*Not all of these laws affect all plans. For example, COBRA does not apply to life and disability plans.

This information provided as a service by: New England Medical Insurance Agency, LLC., it is not to be considered legal advice.

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