: Jobs Bill : Washington D.C. Employment Law Update

Senate Votes Against Advancing Jobs Bill

Posted on October 12, 2011 by Ilyse Schuman

As expected, proponents of the American Jobs Act (S. 1660) failed to garner the 60 Senate votes needed to proceed with further consideration of the jobs legislation. Democratic senators Ben Nelson (D-NE) and Jon Tester (D-MT) joined 46 Republican senators in voting against further consideration of the measure Tuesday evening. Fifty Democratic senators voted in favor of proceeding, ten votes shy of the number needed to prevent a filibuster.

Among other provisions affecting employers, the American Jobs Act would prohibit unemployment discrimination; temporarily ease payroll taxes for employers; provide incentives for hiring veterans and long-term unemployed workers; encourage employers to develop temporary work sharing positions in lieu of layoffs; extend emergency unemployment compensation; extend 100 percent business expensing of investments in certain business assets through 2012; mandate that all laborers and mechanics employed by contractors and subcontractors on projects funded directly by the bill be paid the prevailing wage rate; provide additional funding for transportation infrastructure projects; and require that all projects funded by the bill use American-produced iron, steel, and manufactured goods. The bill would be financed by a $5.6 surtax on millionaires, a change from the initial bill aimed at increasing Democratic support.

Even if this bill had been allowed to progress in the Senate, it would have faced tough opposition in the Republican-controlled House of Representatives. The Obama Administration has stated that it would be amenable to splitting the measure into smaller bills that would have a greater likelihood of passage. At this point, it is uncertain which provisions of the bill, if any, would receive support as standalone legislation.

Tags: American Jobs Act, Discrimination in the Workplace, Employee Benefits, Employment Taxes, Jobs Bill, S. 1660

Tax Extender Bill Fails Yet Again

Posted on June 25, 2010 by Ilyse Schuman

The Senate on Thursday failed to advance the American Jobs and Closing Tax Loopholes Act (H.R. 4213) (pdf), the “tax extender” bill that would have provided for additional months of emergency unemployment benefits and continued various tax relief programs, among other things. The 57-41 vote fell three votes short of limiting debate and scheduling final floor action on the measure. The latest version of the bill offered by Sen. Max Baucus (D-MT) was introduced on Wednesday in an effort to trim costs and gain enough support to pass it. Previous Senate-passed tax extender legislation would have extended the COBRA premium subsidy and various unemployment programs through the end of the year. In May, the House approved this legislation once COBRA premium subsidy extensions were dropped. Earlier this month, the Senate introduced a substitute version of the bill that lacked certain defined contribution pension plan fee disclosure provisions. After it became evident that he did not have enough votes to limit debate on the bill, Baucus introduced a scaled back version that ultimately – like the latest edited version – failed to gain sufficient approval. At this point, Senate passage of the bill in any form appears unlikely.

Photo credit: MBPHOTO, INC.

Tags: Employee Benefits, Employment Taxes, H.R. 4213, Jobs Bill, Tax Extender

Obama Signs HIRE Act into Law

Posted on March 18, 2010 by Ilyse Schuman

President Obama at his desk On Thursday, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act (H.R. 2847), the scaled-down jobs bill that provides employers with various tax breaks for hiring and retaining previously unemployed workers. The Senate approved this measure on Wednesday by an overwhelming 68-29 margin. In addition to exempting employers from paying 2010 Social Security taxes on wages up to $106,800 on each new employee who has been out of work for at least 60 days, the HIRE Act provides employers with a $1,000 income tax credit for every new employee retained for at least a year, and allows small businesses to deduct up to $250,000 for certain capital expenditures in the year purchased.

For more information on this new law, see Littler's ASAP: HIRE Act Signed Into Law — What it Means to Employers by GJ Stillson MacDonnell.

Tags: Employer Tax Credit, Employment Taxes, H.R. 2847, HIRE Act, Jobs Bill

Senate Passes HIRE Act

Posted on March 17, 2010 by Ilyse Schuman

Stamp of approval On Wednesday, the Senate overwhelmingly approved by a 68-29 vote the Hiring Incentives to Restore Employment (HIRE) Act (H.R. 2847), the nearly $18 billion jobs bill that will provide employers with financial incentives for hiring unemployed workers. Specifically, an employer would be exempt from paying its share of 2010 Social Security taxes on any new hire who has been without full-time employment for at least 60 days. The maximum tax break an employer could gain per employee under this provision would be $6,621, or 6.2 percent of total wages paid in 2010 up to the $106,800 FICA wage cap. Employers would also be eligible to receive a $1,000 income tax credit for every new employee retained for 52 weeks. Earlier this week, the Senate voted 61-30 to limit debate on this measure.

The HIRE Act was introduced as an amendment (S. Amt. 3310) to H.R. 2847, a more expansive jobs bill the House approved in December. The Senate had passed the smaller jobs bill last month, but needed to once again clear the measure because the House made minor amendments to the bill.

In addition to the hiring provisions, the HIRE Act extends a tax break included in the American Recovery and Reinvestment Act (“ARRA” or “Stimulus Bill”) that permits small businesses to deduct up to $250,000 of the cost of qualifying capital investments in the year purchased, instead of requiring businesses to depreciate such equipment over time. The Act also includes a one-year reauthorization of highway funding and other public transportation and infrastructure programs.

President Obama is expected to sign this bill into law.

Photo credit: MBPHOTO, INC.

Tags: Employment Taxes, H.R. 2847, HIRE Act, Hiring Incentives to Restore Employment, Jobs Bill

Senate Votes to Advance HIRE Act

Posted on March 16, 2010 by Ilyse Schuman

U.S. Senate in session On Monday, the Senate voted 61-30 to limit debate on the Hiring Incentives to Restore Employment (HIRE) Act, the $15 billion jobs bill the House of Representatives approved on March 4. The HIRE Act was introduced as an amendment (S. Amt. 3310) to H.R. 2847, the more expansive jobs bill the House had already passed in December. The Senate initially cleared this scaled-down jobs bill on February 24, but because the House made minor revisions to the bill, the Senate once again needs to vote on the final jobs package.

This legislation, among other things, includes an employment creation section proposed by Senators Chuck Schumer (D-NY) and Orrin Hatch (R-UT). These provisions exempt any employer that hires a worker who has been without full-time work for at least 60 days from paying the employer’s share of Social Security taxes on that worker for 2010, up to a maximum value of $6,621, or 6.2 percent of wages paid in 2010 up to the FICA wage cap of $106,800. Therefore, the longer the previously unemployed worker is kept on the employer’s payroll, the greater the tax benefit. In addition, the Act provides a $1,000 income tax credit for every new employee retained for 52 weeks.

The bill would also extend a tax break included in the American Recovery and Reinvestment Act (“ARRA” or “Stimulus Bill”) that permits small businesses to deduct up to $250,000 of the cost of qualifying capital investments in the year purchased. In addition, the bill contains a one-year reauthorization of highway funding and other public transportation programs.

The Senate is expected to vote on this bill Tuesday or Wednesday.

Tags: Employment Taxes, HIRE Act, Jobs Bill

House Advances Jobs Bill

Posted on March 4, 2010 by Ilyse Schuman

Magnifying glass over word "Jobs" On Thursday, the House of Representatives voted 217 to 201 in favor of the Hiring Incentives to Restore Employment (HIRE) Act, the $15 billion jobs bill introduced by Sen. Majority Leader Harry Reid (D-NV) as an amendment (S. Amt. 3310) (pdf) to H.R. 2847, the more expansive jobs bill the House previously passed in December. The Senate cleared this scaled-down jobs bill last Wednesday by a 70-28 margin. Because the House intends to change the effective date of a tax provision in order to offset its cost, the Senate will once again need to approve the amended bill before it can be signed by the President.

The HIRE Act, among other things, exempts any employer that hires a worker who has been without full-time work for at least 60 days from paying the employer’s share of Social Security taxes on that worker for 2010, up to a maximum value of $6,621, or 6.2 percent of wages paid in 2010 up to the FICA wage cap of $106,800. As a result, the longer the previously unemployed worker is kept on the employer’s payroll, the greater the tax benefit. In addition, the Act provides a $1,000 income tax credit for every new employee retained for 52 weeks.

The bill also extends a provision in the American Recovery and Reinvestment Act (“ARRA” or “Stimulus Bill”) that permits small businesses to deduct up to $250,000 of the cost of qualifying capital investments in the year purchased, instead of expensing the property over time.

The measure contains other provisions, such as those extending certain National Highway Traffic Safety Administration, Federal Motor Carrier Safety Administration, and other public transportation programs.

The measure does not extend the 65 percent premium COBRA subsidy or the enhanced unemployment insurance benefits. Instead, the Senate is currently considering separate legislation – the $150 billion American Workers, State and Business Relief Act of 2010 (pdf) – that would extend the COBRA subsidy and unemployment insurance benefits through December 31, 2010, among other benefits. This bill was introduced as an amendment (S. Amt. 3336) in the nature of a substitute to the Tax Extender Act (H.R. 4213). A temporary extension of these measures was recently granted through the Temporary Extension Act of 2010, which was signed into law on Tuesday.

Photo credit: amphotora

Tags: Employment Taxes, HIRE Act, Hiring Incentives to Restore Employment Act, Jobs Bill

Senate Votes to Advance Jobs Bill

Posted on February 23, 2010 by Ilyse Schuman

U.S. Capitol Building On Monday, the Senate voted 62-30 on a cloture motion to advance the scaled-back jobs bill introduced by Sen. Majority Leader Harry Reid (D-NV). Reid’s bill, the Hiring Incentives to Restore Employment (HIRE) Act, has been introduced as an amendment (S. Amt. 3310) in the nature of a substitute to H.R. 2847, known as the Jobs for Main Street Act, which cleared the House of Representatives in December. In a move that surprised even some Senate Democrats, Reid decided that the Senate would consider smaller, separate jobs bills instead of the $85 billion bipartisan bill (pdf) unveiled by Sens. Max Baucus (D-MT) and Charles Grassley (R-IA) on February 11. This decision was allegedly instigated after Senate Democrats complained to Reid that too many concessions had been made in order to garner Republican support of the bill. Reid has stated that introducing smaller bills will force the Senate to focus on job creation.

The Reid Amendment includes the provision in the Baucus-Grassley bill that would exempt any employer that hires a worker who has been without full-time work for at least 60 days from paying the employer’s share of Social Security taxes on that worker for 2010. The measure would also extend a tax credit for employers for capital investments. The bill does not include the three-month COBRA and unemployment extensions contained in the Baucus-Grassley bill. Instead, these provisions – which will likely include longer extensions – will be part of a separate bill that is expected to be introduced later this week. The COBRA and unemployment extensions are set to expire on February 28, 2010.

Tags: Cloture Vote, Employment Taxes, Jobs Bill

Draft Senate Jobs Bill Contains Employer Hiring Incentives, COBRA and Unemployment Extensions, Pension Funding Relief

Posted on February 10, 2010 by Ilyse Schuman

A draft of the 362-page Senate jobs bill (pdf) has been circulating among members of Congress this week. Although still a work in progress, the draft bill includes provisions providing for, among other things, unemployment benefits and COBRA health insurance premium extensions, tax incentives to promote hiring, spending programs on transportation initiatives, pension funding relief, and a tax proposal designed to raise revenue from foreign-held assets and trusts.

Specifically, the bill would extend the COBRA premium subsidy eligibility period until May 31, 2010, and create special rules in the event individuals lose coverage due to a reduction in hours, among other COBRA-related changes. The recently-expanded unemployment benefits, including increased payouts and longer duration of benefits, would be extended through May 31, 2010.

With respect to job promotion, the bill would provide employers with a $1,000 per employee tax credit for each new hire retained for at least a year. The bill also incorporates the job stimulation proposal introduced by Senators Chuck Schumer (D-NY) and Orrin Hatch (R-UT). Their bill, the Hire Now Tax Cut Act of 2010 (S. 2983), would exempt any employer that hires a worker who has been without full-time work for at least 60 days from paying the employer’s share of Social Security taxes on that worker for 2010.

Senate Majority Leader Harry Reid (D-NV) had originally planned to introduce the jobs bill late last week in order to expedite a vote before the Presidents’ Day recess. The massive snowstorms that have hit the Washington, DC area since Friday have necessarily derailed those plans.

In December, the House of Representatives approved its version of a jobs bill, the Jobs for Main Street Act of 2010. Like the draft Senate bill, the Jobs for Main Street Act contains COBRA subsidy and unemployment insurance extensions.

Photo credit: amphotora

Tags: COBRA, Employee Benefits, Employment Taxes, Jobs Bill

Washington D.C. Employment Law Update : Washington D.C. Employment Lawyer & Attorney : Littler Mendelson Law Firm : Virginia, Tyson's Corner

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Littler - Governmental Affairs Team

Labor & Employment Law Developments in our Nation’s Capital