The Impact of the Economic Collapse on U.S. Employee Benefits

Medical_symbol2 One of the less followed stories during the economic collapse is its potential impact on the employee benefits of employees in the United States.  Not only will workers lose a substantial part of their pensions because of the falling price of securities in their 401(k) accounts, but there might even be a bigger problem discussed in this article from Columbus Business First:

As a national debate over the future of the nation’s health-care system swirls, a new report from a liberal think tank indicates fewer working-age Americans, including Ohioans, are being covered under employer-sponsored health plans.

A briefing paper from the Washington, D.C.-based Economic Policy Institute, titled The Erosion of Employer-Sponsored Health Insurance, shows employer coverage for workers and their families dropped for the seventh consecutive year. About 63 percent of Americans, or 164.5 million, under age 65 were covered in 2007, about 3 million workers fewer than in 2000, during which about 68 percent were covered.

Employer-sponsored insurance coverage for working-age Ohioans fell at a similar rate over the decade. Last year, 6.8 million Ohioans, or nearly 69 percent, were covered by their employers, down more than 400,000 from 7.2 million, or 74 percent, six years earlier.

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To Shave or Not to Shave: That is the Question in This Workplace RFRA Case

Beard In the last two weeks or so, my employment discrimination law class has been studying disparate impact litigation.  One of the more challenging cases that we study is the Fitzpatrick case from the 11th Circuit concerning the no-beard policy of a fire department.

The policy is supported by the need to have a good seal between a firefighter’s respirator and his face.  The policy was claimed to have a disparate impact on black firefighters with a skin condition making in difficult for them to shave.  The 11th Circuit, in 1993, found that although there might be a disparate impact, the fire department was able to show that the practice was consistent with business necessity because of safety concerns the fire department had regarding use of these respirators by firefighters even with so-called shadow beards.

Fast-forward fifteen years and now comes a similar case in the D.C. Circuit concerning the no-beard policy of the fire department. Instead of race discrimination, this suit alleges that a clean-shaven face for safety personnel violates some employees’ religious freedoms under the Religious Freedom Restoration Act of 1993 (RFRA).  As such, the Title VII framework does not apply and instead the court must balance the exercise of religious liberties with competing government interests. This type of balancing test reminds me much more of a public employee case involving free speech rights.

In any event, the BLT blog has the details:

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Priorities for the Next President: Labor and Employment Law

In responding to the question, “What should be the highest priorities of the next President in the areas of law that you teach,” the answers in labor and employment law are many and clear.

The next President should first focus on the following three areas in the labor and employment law context: labor rights, workplace anti-discrimination and civil rights, and employee benefit rights.

Labor Rights: The percentage of American workers covered by union contracts is now below 8%, as opposed to 16% as recently as 1985. Without unions to fight for them, workers fall behind in wages, benefits, and standard of living.  Additionally, companies like Wal-Mart are calling meetings to tell employees not to vote for the Democrats in this year’s election.  Unionized workers earn more and are more likely to have pensions and health insurance than non-unionized workers.  Workers should have the freedom to choose whether to join a union without harassment or intimidation.  The next President should therefore sign the Employee Free Choice Act, a bipartisan effort to assure that workers can exercise their right to organize and secure initial agreements with their employers.  The next President should also act to restore collective bargaining rights to nurses and other workers excluded as “supervisors,” and to ban employers’ practices of permanently replacing striking workers. The next President should sign into law the Public Safety Employer-Employee Cooperation Act to assure public safety workers who put their lives on the line every day their right to bargain collectively.  Finally, the next President should work to appoint members of the National Labor Relations Board who will work to protect employee choice by outlawing employer captive audience meetings during election campaigns.

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