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Friday, February 15, 2013

Editor's Note: Top Labor and Employment Issues in 2013, Part One

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Every year at BBNA we put together a Labor Outlook that offers a preview of the most important labor and employment issues for the year ahead. The Outlook features articles about each of the major agencies that deal with labor and employment issues, Congress, and the Supreme Court, and includes interviews from top administration officials and practitioners.

After completing the Outlook I put together a list of the top ten issues labor and employment practitioners should watch for in 2013. I presented the list at an event held last month in conjunction with Bloomberg Law that featured a panel discussion about our top issue for the year.

Today, let's take a look at the first five issues to keep an eye on this year, and next week I'll reveal the remaining five hot issues in labor and employment law.

 

10. New leadership at the Labor Department.  

Hilda Solis recently resigned from the labor department, and the absence of a secretary could slow initiatives at the department until that slot is filled.  Currently, Deputy Labor Secretary Seth Harris is acting labor secretary, but a permanent replacement has not yet been nominated.

In addition, the department has a variety of other vacant posts, including both the Wage and Hour Division and Job Corps that both have no administrator or deputy administrator.

   

9. DOL's Wage and Hour Division to issue final rule applying Fair Labor Standards Act to companionship services.  

According to DOL's regulatory agenda, WHD is set to issue a final rule in April applying FLSA overtime and minimum wage provisions to all in-home care workers employed by third parties such as staffing agencies.

The proposed rule was controversial, with more than 26,000 public comments submitted to DOL about it. So this is one to watch for in 2013.

 

8. Federal workers continue to be beleaguered by fiscal concerns.  

Last year federal workers faced calls for federal pay freezes and changes to federal benefits, and in 2013 those calls have been renewed.

Federal agencies face the possibility of reduced budgets due to sequestration if a deal to avert automatic spending cuts is not reached by March 1. In addition, the federal government is currently funded by a six-month continuing resolution that expires March 27, so budget issues continue to loom for these workers.

As we've reported on this blog, there is a bill (H.R. 273) currently making its way through Congress that would freeze federal pay for the remainder of calendar year 2013. The bill would overturn a December 2012 executive order from President Obama that in the absence of congressional action would give federal employees a 0.5 percent across-the-board pay hike effective March 27, the expiration date for the continuing resolution currently funding the federal government.

In addition Rep. Howard "Buck" McKeon (R-Calif.) and Sen. Kelly Ayotte (R-N.H.) introduced legislation in the House (H.R. 593) and the Senate (S. 263) to offset the potential impact of sequestration, particularly on the Defense Department, by cutting the federal workforce by 10 percent through attrition.

 

7. Equal Employment Opportunity Commission to implement strategic plans.  

Despite facing potential budget constraints this year, EEOC is set to implement its strategic plan and strategic enforcement plan, both approved last year.

The SEP establishes six priority areas for enforcement, including: eliminating barriers in recruitment and hiring; protecting immigrant, migrant, and other vulnerable workers; addressing emerging and developing employment discrimination issues; enforcing equal pay laws; preserving access to the legal system; and preventing harassment through systemic enforcement and outreach.

EEOC Feb. 12 began soliciting public input regarding a quality control plan the agency is developing as part of the strategic plan.

The agency is scheduled to hold a public meeting next week to review progress on the strategic plan.

 

6. No radical bargaining changes in anticipation of Affordable Care Act; biggest negotiations expected in trucking, retail food.  

In the area of collective bargaining, 2013 is shaping up to be more of the same. Labor contract negotiations are continuing with the same constrictions and employers and unions have faced in recent years as the economy improves steadily but extremely slowly.

While high-profile provisions of the Affordable Care Act, such as near-universal mandatory health insurance, take effect in 2014 during the window of contracts negotiated in 2013, negotiating parties are not expected to restructure their health care packages because much remains unknown about the law's implementation.

The biggest negotiations in 2013 are expected in the trucking and retail food industries.

The International Brotherhood of Teamsters and United Parcel Service began negotiations in September 2012 on a contract that would cover 250,000 workers.

Meanwhile, United Food and Commercial Workers estimates it will renegotiate 634 grocery contracts in 2013 covering about 301,000 workers.

 

Check out the BBNA Labor and Employment blog next week for the top five issues in labor and employment law this year.

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