U.S. Supreme Court Allows EEOC Medicare Coordination Ruling to Stand
In AARP v. EEOC, the United States Supreme Court has decided not to review the decision by the Third Circuit Court of Appeals as requested by the AARP. This affirms the EEOC’s ability to exempt from the age discrimination statutes the coordination of retiree health benefits with Medicare. The ruling allows employers to design retiree health benefit plans that coordinate with Medicare’s benefits. This final rule gives employers the ability to change, reduce or end retiree health benefit plans when a participant becomes eligible for Medicare whether or not the participant actually enrolls in Medicare.
Littler, A National Employment and Labor Law Firm – March 2008 [Back to Top]
Few Companies Teach Employees Effective E-Mail Tips
A recent study conducted by the Institute for Corporate Productivity, a company focused on improving worker productivity, and HR.com showed that almost 90% of the 510 organizations surveyed use e-mail and electronic newsletters as their vehicle of choice to deliver internal communication. However, only 24% of interviewees stated that their organization trained them how to properly use e-mail. Experts state that by training staff members how to properly use e-mail and electronic communication, employees can become more productive.
SHRM.com – May 8, 2008
Workplace Wellness Programs on the Rise in 2008
The most common wellness programs aim directly at preventing chronic conditions, and the number of employers implementing wellness programs overall has increased significantly from 2007, according to a recent survey. The 2008 Benefits and Talent Survey polled more than 1,100 U.S.-based businesses. Released by Aon Consulting, an insurance broker firm, the survey revealed that two-thirds of businesses surveyed have a benefits program promoting health and productivity. According to the Centers of Disease Control and Prevention (CDC), 75% of all medical expenses are attributed to preventable disease. The CDC also stated that the cost of health care in the U.S. will reach $2.8 trillion by 2011, which is twice the cost of healthcare in 2001. Businesses have started implementing wellness programs to combat the rising cost of healthcare. And, according to John Zern, director of Aon Consulting, employers who invest in providing tools and resources to improve the health of employees can increase productivity in addition to improving overall company health.
SHRM.com – May 2, 2008 [Back to Top]
DHS Announces More Changes to E-Verify Program
The U.S. Department of Homeland Security (DHS) has updated E-Verify, the electronic employment eligibility verification system. Recent updates should improve the system’s accuracy, according to DHS. The E-Verify system now includes naturalization data, which helps employers confirm citizenship status instantly; and real-time arrival data from the Integrated Border Inspection System, which includes enforcement and historical information on travelers. Currently, more than 64,000 employers participate in the E-Verify program, according to immigration officials.
American Staffing Association – May 12, 2008 [Back to Top]
Government Expects Gas Prices to Increase
Gas prices will increase to $3.73 a gallon in June, according to Energy Department predictions. They expect the national average for regular-grade gasoline to reach $3.52 a gallon for 2008, 71 cents above 2007’s average price. However, the Energy Department anticipates oil consumption to decline by nearly 190,000 barrels per day in 2008 due to economic slowdown and high gas prices.
The Associated Press – May 6, 2008
Service Index Rose in April
According to the Institute for Supply Management (ISM), the service sector index rose to 52 in April, up from 49.6 in March. This indicates growth for the sector. The service industry accounts for nearly 90% of the nation’s economy. This rise in the index indicates that the housing slump and credit crisis may be softening, according to experts. In addition, the service sector employment index rose by 3.9 points to reach 50.8 in April, ISM said.
Bloomberg.com – May 5, 2008
Consumer Confidence Falls
The consumer confidence index fell to 62.3 in April, down 3.6 points from March’s number, the Conference Board reported. The monthly survey, based on 5,000 U.S. households, also showed a sharp decline in the present situation index, which fell to 80.7 in April, down from 90.6 in March. The present situation index measures consumers’ opinions on the current economic conditions. Lynn Franco, director of the Conference Board’s Consumer Research Center, reported that this decline in the conference index was linked to the decline in the present situation index.
The Conference Board – April 29, 2008 [Back to Top]
April 2008
The unemployment rate fell to 5.0% in April, down from 5.1% in March. However, the construction, manufacturing and retail sectors continued to see job losses. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 61,000
• Manufacturing: - 46,000
• Retail Trade: - 27,000
• Professional & Business Services: + 39,000
• Educational & Health Services: + 52,000
• Leisure & Hospitality: + 18,000
• Government: + 9,000
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Economic Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2008.