Home > Workmens Compensation > Employers Prepare for Rules and Regulations in a Second Obama Term

Employers Prepare for Rules and Regulations in a Second Obama Term

By Shannon Green Corporate Counsel  November 8, 2012

Note: this article edited by Compliance USA. Go to Corporate Counsel for full version.
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DOL and IRS are auditing companies issuing 1099s and referring suspects to State WC agencies.


 In the wake of Tuesday’s election victory for Obama, management-side employment firms are focusing on the realities of “four more years.” John Meyers, partner in the Atlanta office of Barnes & Thornburg, says employer uncertainty over how to comply with the so-called “Obamacare” law, as well as how much it might cost, led to a pre-election chill in hiring. 

Michael Lotito, a partner in the San Francisco office of Littler Mendelson, says that how the law is actually going to work—as well as the increased costs and penalties associated with it—are certainly on the minds of employers. 

 “I think that the employer community is waiting for the regulatory avalanche, which will come soon,” Lotito says, “as to how issues such as part-time status and minimum coverage and the like are going to be interpreted by the administration.”

But health care legislation isn’t the only thing employers are concerned about. 

“The regulatory rubric and court appointments are where our clients have felt a lot of pain,” says Meyers, “and they’re going to see a lot more pain.” In light of big union contributions to the president’s re-election, Meyers predicts the administration will act favorably toward those donors during the next term. “They are looking for their payback,” he says.

Employers need to be aware that agencies probably are going to become more aggressive in enforcement, says Lotito. Despite the lack of legislation likely to come out of the still-divided Congress, Lotito says to look for the greatest action to take place at the regulatory level. 

Both Lotito and Meyers expect a flurry of activity by the U.S. Department of Labor, the National Labor Relations Board, and the Equal Employment Opportunity Commission, as well as stepped-up enforcement from the Occupational Safety and Health Administration and the Office of Federal Contract Compliance Programs.

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