How to Plan for Benefits in 2021 and COVID-19
Aug 27, 2020

Studies show that it is important for employers to consider updating their employees’ benefits programs to better suit their employee’s needs. This includes changing the design of employee benefits and the need to assess and modify their benefits packages for 2021.


We will clue you in on the most popular changes being made for the 2021 enrollment season.


Possible Increase in Cost and Plan Design

We are expecting plans to increase in cost as we head into 2021. Over the past several years, premiums have been on the rise of approximately 6% on average. Though quite a few health care providers are waiving fees related to COVID-19, those costs will likely trickle down over time. With many patients putting off elective surgeries and procedures during the pandemic, they may decide to move forward with care in 2021, which would increase claims and costs.


As an employer, you may see the need to consider plan design changes for the upcoming 2021 enrollment period. Some options to consider include cost-sharing or new plan options, like you have probably thought about in previous years. However, the pandemic has added some new challenges many of us have not faced before, so we have compiled here some new options to consider implementing for your employees:


Telehealth

Communicating electronically with a doctor or medical professional by phone or video chat is an option we now have. This platform has increased in popularity over the past few years, and the pandemic has demonstrated just how valuable telehealth benefits can be. Many insurers are currently covering telehealth in their plans, and most likely we will see more following this trend.


According to a FAIR Health survey, there has been a giant increase of 4,347% nationally in telehealth since March 2019 until March 2020. As the pandemic advanced, hospitals and providers encouraged the use of telehealth for non-life-threatening care, rather than making the trip in and increasing the risk of exposure.


Since telehealth is on the rise, your business may want to consider your current health benefit plans and think about adding or enhancing this benefit.


Mental Health Benefits

Ginger, a mental health provider, found through a survey that almost 7 in 10 employees labeled the pandemic as the most stressful time in their careers. Many are experiencing hard financial times, balancing new responsibilities as a caregiver to their kids and elders, and trying to maintain their physical health. During this challenging time, it is understandable that your employees may be under a significant amount of stress. This can lead to more health risks, absenteeism, and increased health care costs.


Employers may want to consider offering or improving an employee assistance program (EAP) and increasing mental health resources for 2021.In addition to EAP’s, employers may want to add telemental health services and provide access to mental health professionals or apps. SimcoHR has a Sim“Co-Pilot” app that can provide this confidential service for your employees as well as other beneficial features.


Flexible Benefits

Employers are feeling the pressure to provide flexible workplace benefits. Flextime, increased PTO and allowing employees to telecommute are now favorable options for employees. Since the pandemic, the need for these benefits have skyrocketed. Creating balance between work and caregiving responsibilities can be tough and lead to lower productivity, poor mental health, and heightened stress for employees. With a potential second wave of COVID-19, parents are trying to decide how they will school their kids while trying to work. Those with aging parents are also juggling their responsibilities. Some employees may be high-risk for contracting COVID-19 and may not be comfortable returning to the office every day.


Because of all of this, employees are seeking more flexible benefits such as:

  • Working remotely—This may not be possible in every situation, but those employees who are working from home because of the pandemic, and are just as productive as being in the office, may come to expect this benefit to continue in the upcoming year.
  • Flexible hours-Offering flexibility may help employees balance work and home responsibilities and prove to them that their health is a top priority.
  • These are a few ideas of how your business can offer better benefits for your employees in 2021 that employees view as incredibly valuable.


Virtual Open Enrollment

Open Enrollment is usually done in the office and during a specific time. Due to the pandemic, you may want to make plans to hold open enrollment virtually. Instead of in-person meetings with your employees, you may want to offer video messages and instructions. Personal text and email reminders about the open enrollment period, may provide a more personal touch. Enrollment and plan benefit information for your employees is available through an app that SimcoHR can provide.


For more information or help with the 2021 open enrollment period, contact SimcoHR.

Sign up for our newsletter.

DOL Issues Guidance on AI-related Wage and Hour Risks

11 May, 2024
On April 29, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) published Field Assistance Bulletin (FAB) No. 2024-1 on the use of artificial intelligence (AI) in the workplace. The FAB follows a statement released by the White House announcing key AI-related actions following President Joe Biden’s executive order issued on Oct. 30, 2023, on establishing standards for AI safety and security. Guidance on AI-related Wage and Hour Risks Employers are increasingly using AI tools to generate timecards, set schedules, monitor performance, track employee hours and process payroll. As such, the FAB highlights certain compliance risks under the Fair Labor Standards Act (FLSA) for employers using these tools. These risks include: Tracking employee work time; Monitoring employee break and waiting time; Using location-based monitoring for individuals performing work at multiple geographic locations; Calculating employees’ regular rate of pay and overtime compensation; and Violating the FLSA’s antiretaliation provisions To aid employers in addressing these compliance risks, the WHD identifies recommended practices, including exercising proper human oversight, to help ensure that AI systems and tools do not violate the FLSA. Additional AI-related Guidance In addition to addressing FLSA compliance risks, the FAB also examines certain AI-related risks that may arise under other laws, including the Family and Medical Leave Act (FMLA), the Providing Urgent Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act (EPPA). For example, using AI tools to administer FMLA leave can create potential risks for violating the law’s certification requirements when determining whether an employee’s leave is FMLA-qualifying. Employer Action Items While FABs are not necessarily legally binding, they offer insight into how the DOL interprets laws it enforces and how agency officers will analyze workplace conditions and circumstances to enforce compliance.  Using AI systems for scheduling, timekeeping and calculating rates of pay and overtime may increase an employer’s risk under the FLSA. Therefore, employers should ensure that their AI systems and tools comply with all federal laws and regulations by examining potential legal and business risks associated with AI, implementing AI usage policies and establishing internal best practices.

Nurturing Your Mind: Embracing Mental Health Awareness Month

30 Apr, 2024
As we step into May, we're reminded of the importance of mental health and well-being. May marks Mental Health Awareness Month, offering us an opportunity to renew our commitment to nurturing our minds and fostering supportive environments, both in and out of the workplace. In this blog post, we'll explore practical strategies for enhancing mental health, including small tips that can refresh you mentally during the workday. Embracing Self-Care Amid life's hustle and bustle, it's crucial to carve out time for self-care. Whether it's practicing mindfulness, engaging in hobbies, or simply taking a moment to breathe deeply, prioritizing self-care nurtures mental resilience and fosters a sense of inner peace. Cultivating Work-Life Balance In today's fast-paced world, achieving a healthy work-life balance is essential for mental well-being. Set boundaries between work and personal life, establish a routine that includes breaks and leisure activities, and strive to unplug from technology during downtime. Remember, balance is key to sustaining productivity and happiness. Fostering a Supportive Workplace Culture Employers play a pivotal role in promoting mental health in the workplace. Encourage open dialogue about mental health, offer resources such as counseling services or mental health days, and prioritize flexibility to accommodate employees' well-being needs. By fostering a supportive culture, organizations cultivate environments where employees feel valued, understood, and empowered to prioritize their mental health. Supporting Loved Ones If someone you care about is struggling with mental health challenges, your support can make a significant difference. Listen without judgment, offer empathy and reassurance, and encourage them to seek professional help if needed. Remember, your presence and understanding can provide comfort and strength during difficult times. Practicing Gratitude Gratitude is a powerful tool for enhancing mental well-being. Take time each day to reflect on moments of gratitude, whether it's appreciating the beauty of nature, expressing gratitude for supportive relationships, or acknowledging personal achievements. Cultivating a mindset of gratitude fosters resilience and enhances overall happiness. Small Tips to Refresh Your Mind During the Workday  Take short breaks: Step away from your desk for a few minutes to stretch, walk around, or simply gaze out the window. These brief pauses can rejuvenate your mind and boost productivity. Practice deep breathing: Incorporate deep breathing exercises into your day to reduce stress and promote relaxation. Close your eyes, inhale deeply through your nose, hold for a few seconds, and exhale slowly through your mouth. Connect with nature: Spend time outdoors during your lunch break or coffee breaks. Even a brief stroll in a nearby park or green space can invigorate your senses and clear your mind. Listen to music: Create a playlist of soothing music or uplifting tunes to listen to during work breaks. Music has the power to uplift your mood, reduce anxiety, and enhance focus. Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain mental alertness. Dehydration can impair cognitive function, so keep a water bottle handy and sip regularly. Practice mindfulness: Take a few moments to practice mindfulness or meditation exercises. Focus on your breath, observe your thoughts without judgment, and cultivate a sense of presence and calm. Declutter your workspace: A clutter-free workspace can promote mental clarity and productivity. Take a few minutes to tidy up your desk, organize files, and create a calming environment conducive to focus. Engage in positive self-talk: Replace negative self-talk with affirming and encouraging statements. Remind yourself of your strengths, accomplishments, and capabilities, and cultivate a mindset of self-compassion and resilience. Connect with colleagues: Build supportive relationships with coworkers by engaging in meaningful conversations, sharing experiences, and offering mutual support. A sense of camaraderie and connection can foster a positive work environment and bolster mental well-being. As Mental Health Awareness Month unfolds, let's commit to nurturing our minds and supporting those around us. By embracing self-care, fostering work-life balance, promoting workplace well-being, and offering compassionate support to loved ones, we contribute to a culture of mental health awareness and resilience. Remember, you are not alone. Reach out for support if you need it, and let's journey toward better mental health together.

DOL Announces Final Overtime Rule Increasing Salary Levels for White-collar Employees

30 Apr, 2024
On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024. Increased Salary Level The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption. To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. Starting July 1, 2024, the DOL’s final rule increases the standard salary level from: $684 to $844 per week ($35,568 to $43,888 per year); and $107,432 to $132,964 per year for highly compensated employees. On Jan. 1, 2025, the standard salary level will then increase from: $844 to $1,128 per week ($43,888 to $58,656 per year); and $132,964 to $151,164 per year for highly compensated employees. Automatic Updates The DOL’s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels. Impact on Employers The first salary level increase in July is expected to impact nearly 1 million workers, while the second increase in January is expected to affect approximately 3 million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule’s requirements. Legal challenges to the rule are anticipated, which may delay the final rule’s implementation.

Have a question? Get in touch.

Share by: