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Posted on September 9, 2009June 27, 2018

New York City-Area Chambers of Commerce Unite Against Sick-Days Bill

New York City’s chambers of commerce have joined forces to fight a bill—supported by an overwhelming majority of City Council members—that would compel employers to provide their workers with up to nine paid sick days per year.


The groups have formed the 5 Boro Chamber Alliance to oppose the measure, which they contend could force companies to rethink hiring plans or lay off workers.


“It’s as if the City Council doesn’t understand that we are trying to survive the worst economic downturn in 80 years,” said Tom Scarangello, of SCARAN, a family-owned heating and air-conditioning company based in Staten Island, in a statement released by the alliance.


The group plans to make its case in meetings with Councilwoman Gail Brewer, D-Manhattan, the bill’s primary sponsor; Council Speaker Christine Quinn, who has yet to take a position; representatives of Mayor Michael Bloomberg, who has indicated a willingness to support paid sick days for large firms but has stopped short of embracing the mandate for small ones; and the 37 council members who have signed on to the legislation.


Under the proposal, companies with 10 or more employees would have to provide nine paid sick days per year, while those with fewer than 10 workers would need to give five days. Violators would be hit with $1,000 fines.


The bill’s opponents have their work cut out for them, as the council members who are behind it provide a wide enough margin to withstand a mayoral veto.


A coalition of community, labor and public health groups has argued paid sick days could help contain the spread of the H1N1 virus by encouraging workers to stay home if they, or their children, are sick. The group held a press conference at Department of Education headquarters Tuesday, September 8, to draw attention to public school parents who cannot afford to take off when illness hits.


A survey by the Community Service Society shows that 1 million New Yorkers, including 39 percent of public-school parents and two-thirds of low-wage workers, do not receive paid sick days.


The bill’s backers contend paid sick day mandates in San Francisco and Washington, D.C., have not adversely affected small businesses, which benefit from increased productivity and a level playing field.


Their push is being backed by Korean and Hispanic business groups.



Filed by Daniel Massey of Crain’s New York Business, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com


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Posted on September 8, 2009August 31, 2018

California Clarifies Rulings on Workers’ Compensation Rating Disabilities


The California Workers’ Compensation Appeals Board has clarified previous rulings in closely followed cases that address rebuttal of a schedule for rating permanent disability claims.


The board ruled earlier in Wanda Ogilvie v. City and County of San Francisco and in the consolidated cases of Mario Almarz v. Environmental Recovery Services and Joyce Guzman v. Malpitas Unified School District that a schedule adopted in 2005 for rating permanent disabilities can be rebutted with certain evidence.


In a clarification of those earlier rulings, the board said Thursday, September 3, that doctors must stay within “the four corners” of the American Medical Association’s Guides to the Evaluation of Permanent Impairment when attempting to justify a disability determination other than that stated on the rating schedule.



Filed by Roberto Ceniceros of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 4, 2009August 31, 2018

Pilots Sue to Drop PBGC as US Airways Pension Plan Trustee


The U.S. Airline Pilots Association is suing the Pension Benefit Guaranty Corp. to remove it as trustee of the US Airways pilots’ pension plan and appoint a temporary trustee, according to a news release from the union.


The Charlotte, North Carolina-based association claimed the PBGC breached its fiduciary duty by failing to investigate the company management of the plan, as required under Employee Retirement Income Security Act, when it took over the plan on March 31, 2003.


US Airways Group Inc. terminated the plan while in Chapter 11 bankruptcy proceedings. At that time, the plan had $1.2 billion in assets to cover $3.7 billion in liabilities. The PBGC took responsibility for $726 million of the shortfall.


The lawsuit was filed in U.S. District Court in Washington.


“The PBGC has not fulfilled its obligation as trustee of our pilots’ retirement fund,” USAPA president Mike Cleary said in the news release. “Our own investigation has uncovered a number of questionable circumstances surrounding activities and investments of our retirement fund prior to its termination. Our request to the PBGC for a thorough investigation has fallen on deaf ears, so we are asking the court to appoint a trustee who will do its due diligence in this matter and investigate the management, or perhaps the mismanagement, of our pilots’ retirement fund.”


A PBGC spokesman declined comment on the lawsuit.




Filed by Timothy Inklebarger of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 4, 2009August 31, 2018

New York City Business Groups Ill Over Paid Sick Days


Opposition is slowly building among groups worried that a New York City Council bill requiring companies to provide employees with as many as nine paid sick days per year would place a burden on small businesses.


Earlier this week, the Manhattan and Staten Island chambers of commerce sent an online survey to members to find out where they stand on the proposal, which would compel businesses with 10 or more employees to provide nine paid sick days, and those with fewer than 10 workers to give five. Fines would be levied at a rate of $1,000 per violation.


New York’s other borough chambers are expected to send out similar surveys after Labor Day.


The surveys are a precursor to an organized opposition campaign by the city’s chambers. A meeting is set for next week in which the groups are expected to come up with a plan of attack against the bill.


“I’ve gotten some responses back to our survey and almost everybody opposes the bill,” said Staten Island Chamber of Commerce president Linda Baran. “They feel it’s just another thing they have to contend with at a time the business climate in the city is getting worse and worse.”


And, although most of its members provide paid sick days and wouldn’t be affected by the legislation, the Partnership for New York City has expressed concern over the measure. A spokesman said the proposal would add to the costs of small businesses at a time when they are already stretched to the limit.


Mayor Michael Bloomberg has indicated a willingness to support paid sick days for large firms, but has stopped short of embracing the mandate for small ones.


Supporters of the bill point to successes with paid sick days in San Francisco and Washington, D.C., and argue it will level the playing field among businesses, helping them in the long run.


“Paid sick days are often smart business,” says a spokesman for the Working Families Party. “Studies show that when workers come to work sick, they can slow productivity, infect their co-workers, and are even more likely to cause workplace accidents.”


Some 35 council members have already signed on to the legislation, which has been spearheaded by Councilwoman Gale Brewer, D-Manhattan, giving it enough support to withstand a veto should the mayor determine the measure to be too onerous for small businesses.




Filed by Daniel Massey of Crain’s New York Business, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 4, 2009August 31, 2018

Census Bureau to Release Updated Uninsured Numbers


The U.S. Census Bureau on Thursday, September 10, will release a report showing how many people in the United States lacked health insurance coverage in 2008.


The report is expected to attract a high level of interest as it coincides with the drive in Congress to pass sweeping health care reform legislation to move the nation closer to universal coverage.


The measures would try to do that by providing federal health insurance premium subsidies for the low-income uninsured, among other provisions. The drive to pass health care reform legislation could be bolstered if the Census Bureau report shows a sharp increase in the number of uninsured.


In 2007, both the percentage and number of people lacking health insurance declined. The percentage without health insurance was 15.3 percent in 2007, down from 15.8 percent in 2006; the number of uninsured was 45.7 million, down from 47 million the prior year.




Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 3, 2009August 31, 2018

Bailed-Out Insurance Giant AIG to Hand Out Retention Bonuses Disguised as Loans to 6,000 Reps, Advisors


On the heels of new American International Group Inc. chief executive Robert Benmosche’s backpedaling from incendiary comments he made about New York Attorney General Andrew Cuomo, the AIG Advisor Group—the battered insurer’s retail securities business—is preparing to hand out retention bonuses to its 6,000 reps and investment advisors.


Dubbed “business-building loans,” the retention bonuses will equal between 5 and 10 percent of brokers’ previous year’s fees or commissions, known as a broker’s “trailing 12” in the industry.


According to sources inside and outside AIG, the percentage a broker receives depends on his or her annual production, with brokers producing less than $300,000 in fees and commissions likely getting nothing.


The common wisdom in the retail securities business is that such bonuses are necessary to keep advisors in their seats, particularly after one broker-dealer is sold.


The three broker-dealers that make up the AIG Advisor Group—Royal Alliance Associates Inc., FSC Securities Corp. and SagePoint Financial Inc.—had been on the block since October as part of AIG’s widespread sale of assets to raise capital to pay back part of the federal government’s $85 billion bailout.


After months of sometimes agonizing waiting for brokers, Benmosche scrapped plans for the sale soon after taking over as CEO of AIG last month.


In some of his first meetings with AIG employees in August, he also revealed his feelings about Cuomo, who subpoenaed AIG in March during a political and media uproar over $165 million in retention bonuses.


According to Bloomberg, Benmosche told AIG employees in Houston on August 11 that Cuomo was “unbelievably wrong” about the bonuses.


“He doesn’t deserve to be in government, and he surely shouldn’t be the attorney general of the state of New York,” Benmosche said.


AIG said Monday, August 31, that Benmosche “regrets his comments regarding Mr. Cuomo.”


The reps and advisors with the broker-dealers of the AIG Advisor Group, however, have one clear difference from the employees Cuomo targeted as part of his bonus inquiry, industry observers noted. The advisors are independent contractors, not employees, and take great pride in that status, which allows them to move with reasonable ease to other broker-dealers.


When asked to give specific details of the retention bonus package to AIG Advisor Group reps, that unit’s CEO, Larry Roth, did not respond directly.


Instead, he wrote in an e-mail: “All of our broker-dealers remain highly committed to their financial advisors and will continue to provide them with the support they need to grow their practices. We help advisers succeed by investing in them in many ways, including practice-management programs, back-office support and technology.”


The issue of brokers receiving bonuses has recently drawn the strong interest of securities regulators.


On Monday, SEC Chairman Mary Schapiro warned broker-dealer CEOs that offering large upfront bonuses to potential recruits comes with the responsibility of closely monitoring reps and advisors’ sales practices.


“Certain forms of potential compensation may carry with them enhanced risks to customers,” Schapiro wrote in an open letter to CEOs that was posted on the SEC Web site.


“Some types of enhanced compensation practices may lead registered representatives to believe that they must sell securities at a sufficiently high level to justify special arrangements that they have been given.”



Filed by Bruce Kelly of InvestmentNews, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 3, 2009August 31, 2018

TOOL Privacy Laws and Regulations

Morrison & Foerster’s Privacy Library is a free online resource, providing links to privacy laws, regulations, reports, multilateral agreements and government authorities for more than 90 countries around the world, including the United States. The firm says that its library is the most comprehensive collection of privacy laws and regulations ever assembled, the result of years of research and experience working with clients around the world.

Posted on September 2, 2009June 27, 2018

Employer, Business Groups Push Private-Sector Health Care Reform Solutions


Twenty state chambers of commerce and employer groups have formed Employers for Quality Health Care, a new coalition advocating for private-sector solutions to the health care crisis.


Members include the chambers of commerce in Arkansas, Georgia, Michigan, Montana, New Jersey, North Dakota and other states; Associated Oregon Industries; the Iowa Association of Business and Industry; the Texas Association of Business; and Wisconsin Manufacturers and Commerce.


The coalition opposes an employer mandate and public insurance option as part of reform. In a letter to members of Congress and President Barack Obama, the group says it wants Medicare and Medicaid reform, tort reform, provider incentives for total outcomes, health savings accounts and small-business insurance pooling.


“We stand united in support of free-market reforms that promote choice and competition,” said George Israel, president of the Georgia Chamber of Commerce, in a written statement.



Filed by Rebecca Vesely of Modern Healthcare, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 2, 2009June 27, 2018

Citigroup 401(k) Participant Lawsuit Dismissed


A federal judge dismissed a class-action lawsuit filed on behalf of 150,000 participants in Citigroup’s two 401(k) plans, saying the company’s inclusion of company stock as an investment option did not violate its fiduciary duties under ERISA.


U.S. District Court Judge Sidney H. Stein on Monday, August 31, tossed out the lawsuit, filed on behalf of participants in Citigroup’s 401(k) Plan and the Citibuilder 401(k) Plan for Puerto Rico.


“Investment in Citigroup stock was presumptively prudent, and plaintiffs have failed to allege facts in support of a possible claim to overcome that assumption,” Stein wrote in his ruling.


Stein added that the two 401(k) plans “unequivocally required” that Citigroup stock be offered as an investment option, and thus “had no discretion and could not be acting as fiduciaries” with respect to the plans’ investment in company stock. According to the ruling, the inclusion of the company stock was mandated in the terms of the plans.


“This Court holds that neither the [Citigroup] Investment Committee nor any other plan fiduciary had a duty to override the plans’ mandate that Citigroup stock be offered as an investment option,” he wrote. “Not only does that holding accord with traditional principles of trust law, but it is consistent with ERISA’s language, structure, and purpose.”


He also ruled that plaintiffs failed to prove their claim that defendants breached their fiduciary duties by failing to provide “complete and accurate” information about the financial condition of Citigroup to plan participants.


“Defendants did not have an affirmative duty to disclose financial information about Citigroup because ERISA fiduciaries are not required to provide investment advice,” Stein wrote.



Filed by Jeff Nash of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on September 1, 2009June 27, 2018

Texas High Court Limits Time Bar for Workers’ Compensation Claims


A 60-day period in which workers’ compensation claim payers can challenge the compensability of an injury does not apply to disputes over the extent of an injury, the Texas Supreme Court has ruled.


The ruling Friday, August 28, in State Office of Risk Management v. Mary Lawton overturned an appellate court ruling in the case in which Lawton injured her left knee in 2005 while working for the Texas Department of Criminal Justice.


A dispute arose over whether the state office should pay for surgery after a “peer-review” doctor reported that a degenerative condition caused the need for surgery and not the workplace injury.


The state office contested the claim, but a workers’ comp hearing officer ruled the agency waived its right to contest it by waiting too long to dispute it.


The officer ruled that the state office could have discovered the extent of Lawton’s injury within a 60-day period established to streamline claims processing. A state appellate court agreed.


But the Texas Supreme Court ruled that the 60-day rule applies to compensability and not to disputes over the extent of an injury.


The case was remanded for proceedings consistent with the court’s opinion.



Filed by Roberto Ceniceros of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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