Compliance Stuff

The long-awaited health savings account (HSA) and high-deductible health plan (HDHP) figures for 2027 have been announced. Employers have been waiting, as the announcement usually comes in early May. The annual limit on HSA contributions for self-only coverage in 2027 will be $4,500, a 2.3% increase from the $4,400 limit in 2026, the IRS announced May 29 . F or family coverage, the HSA contribution limit will jump to $9,000 next year, up 2.9% from $8,750 in 2026. Meanwhile, for 2027, an HDHP must have a deductible of at least $1,750 for self-only coverage, up from $1,700 in 2026, or $3,500 for family coverage, up from $3,400 in 2026. Annual out-of-pocket expense maximums (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $8,700 for self-only coverage in 2027, up from $8,500 in 2026, or $17,400 for family coverage, up from $17,000 in 2026.  The IRS also announced that the excepted-benefit health reimbursement arrangement limit will be $2,250, up from $2,20...

Johnny C. Taylor Jr., SHRM-SCP, president and CEO of SHRM, testified March 25 before the U.S. Senate Special Committee on Aging in Washington, D.C. As the U.S. workforce ages and labor shortages persist, HR leaders are being called to reconsider long-standing assumptions about retirement, talent, and the value of experience. That message  took center stage  when Johnny C. Taylor Jr., SHRM-SCP, president and CEO of SHRM, testified March 25 before the U.S. Senate Special Committee on Aging in Washington, D.C., highlighting both the challenges and opportunities facing older workers. “America’s workforce is changing,” Taylor told lawmakers. “In 1994, about 12% of Americans age 65 and older were working. Today, it’s closer to 20%. And in the years ahead, the fastest-growing segment of our labor force will be individuals age 75 and older. This is not a temporary trend. It’s a structural shift — and it requires us to rethink how we approach work and retirement.” For HR leaders,...

The U.S. Department of Labor’s Wage and Hour Division has unveiled a proposed rule aimed at providing regulatory guidance if a worker should be classified as an employee or independent contractor under the Fair Labor Standards Act and other federal laws. The proposal would rescind the department’s 2024 independent contractor rule and reinstate an analytical framework more closely aligned with the 2021 standards and “long-standing legal principles used in federal courts across the country,” emphasizing an “economic reality” test. The proposed rule aims to help employers and workers navigate classification decisions more predictably, potentially reducing disputes and litigation over misclassification. Source(s): Zheliabovskii, R. (2024).  DOL Proposes Rule to Rescind 2024 Independent Contractor Standard . Shrm.org. https://www.shrm.org/topics-tools/employment-law-compliance/dol-proposes-rule-to-rescind-2024-independent-contractor-standar ‌  

The U.S. Equal Employment Opportunity Commission (EEOC) has released  updated educational materials on national origin discrimination , including a new technical assistance document titled “Discrimination Against American Workers Is Against the Law.”   Under Title VII of the Civil Rights Act of 1964, it is unlawful to discriminate against people based on race, color, sex, national origin, or religion — collectively known as protected characteristics.  Earlier this year, then-acting EEOC Chair Andrea Lucas  stated , “The EEOC is putting employers and other covered entities on notice: if you are part of the pipeline contributing to our immigration crisis or abusing our legal immigration system via illegal preferences against American workers, you must stop.” For HR professionals, the issuance of the technical assistance document is a continuation of Lucas’ earlier statements concerning how the agency is prioritizing the enforcement of national origin discrimination und...

President Donald Trump on Dec. 11  issued an executive order , challenging state laws regulating artificial intelligence. The order directs the attorney general to establish a task force within 30 days focused on litigation against state AI laws. It also empowers the secretary of Commerce to publish a review of “onerous” state AI laws within 90 days and restrict federal broadband funds to states whose AI laws are found to be objectionable. It directs the Federal Trade Commission to issue within 90 days a policy clarifying how the agency’s prohibition on unfair or deceptive practices applies to AI systems. The Federal Communications Commission must within 90 days initiate proceedings to consider creating a federal reporting and disclosure regime for AI models that would pre-empt conflicting state requirements. The White House Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology shall jointly prepare a legislative recommendation establishing...

As health care costs continue to rise, benefits professionals  play a critical role in helping employees manage their out-of-pocket medical expenses . One of the most effective tools at their disposal is a health flexible spending account (FSA), an employer-sponsored account that allows employees to set aside pre-tax dollars for qualified health care costs.  In a positive development,  the IRS has increased the annual FSA contribution limit to $3,400  for 2026, up from $3,300 in 2025 and $3,200 in 2024. This adjustment, tied to inflation through the Chained Consumer Price Index, reflects the reality that health care is becoming more expensive and underscores the need for ongoing benefits education.  For HR professionals, this change represents an opportunity to strengthen communication, improve enrollment outcomes, and reinforce the organization's commitment to employee financial wellness.  Understanding the FSA Advantage FSAs allow employees to contribute...

Congress’ recently passed budget and tax bill — the One Big Beautiful Bill Act — makes permanent a tax credit for employers who offer paid family and medical leave (PFML).   Congress first passed the temporary credit in 2017 as part of the Tax Cuts and Jobs Act. The credit, which was extended temporarily several times, allowed employers to claim a general business credit for offering PFML to eligible employees. The credit is worth 12.5% of the employee’s wages for a leave period and goes up by 0.25% for each percentage point of wages paid over 50%, up to 25%. The One Big Beautiful Bill Act, however,  expands the credit  in a couple of ways.   In addition to claiming a credit for wages paid, employers can now also get a tax credit for a portion of insurance premiums paid for an employee on PFML. It also now offers a credit for employers in states with mandated PFML laws. Previously, employers in those states were not eligible for the credit. Now, employers who provide...

Employees will be able to save an additional $100 annually in their health savings accounts (HSAs) next year. The annual limit on HSA contributions for self-only coverage in 2026 will be $4,400, a 2.3% increase from the $4,300 limit in 2025,  the IRS announced . For family coverage, the HSA contribution limit will jump to $8,750 in 2026, up 2.4% from $8,550 in 2025. The figures  met estimates from analysts . Although the jump is welcome news for employees, the past two years have seen smaller rises in contribution limits due to  stabilizing inflation .  Meanwhile, for 2026, a high-deductible health plan (HDHP) must have a deductible of at least $1,700 for self-only coverage, up from $1,650 in 2025, or $3,400 for family coverage, up from $3,300 in 2025, the IRS noted . Annual out-of-pocket expense maximums (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $8,500 for self-only coverage in 2026, up from $8,300 in 2025, or $17,000 for family c...

SHRM testified before the House Subcommittee on Workforce Protections on March 25 to call for modernization of the Fair Labor Standards Act of 1938 (FLSA) .  To reach the U.S. workforce’s full potential, SHRM believes in turning three essential keys — modernizing the FLSA, closing the workforce participation gap, and shaping the future of work — all of which will open doors that lead to innovation, economic growth, and a more dynamic, competitive workforce, testified Paige Boughan, M.S., SHRM-SCP, a senior vice president and director of human resources . She testified in her capacity as legislative director for the Maryland SHRM State Council. Clarity, consistency, and compliance are needed, Boughan noted in her oral testimony, including clarity of the definition of who is an employee versus an independent contractor and who is qualified for overtime. “The world has undergone significant changes since the FLSA was first passed and since Congress last made significant chan...

President Donald Trump’s executive orders (EOs) addressing diversity, equity, and inclusion (DEI) programs among federal contractors and private-sector employers do not supersede well-established workplace anti-discrimination law. However, experts have said that organizations should review their inclusion and diversity (I&D) practices and policies to withstand new federal scrutiny.    SHRM CHRO Jim Link, SHRM-SCP, was joined by Tara Singh Param, a partner at Holland & Knight in Philadelphia, and Patricia Timmons-Goodson, the dean and chief academic officer of North Carolina Central University School of Law in Durham, N.C., during a  Feb. 26 SHRM webinar  to help employers navigate compliance with Title VII of the Civil Rights Act of 1964 amid changing federal directives on I&D.   “The executive orders have introduced  substantial shifts to inclusion and diversity  within federal agencies and among federal contractors,” Link said....