BUDGET DEAL INCREASES OSHA PENALTIES AND REPEALS AUTOMATIC ENROLLMENT

Two little known aspects of the so-called "budget deal" of the Bipartisan Budget Act of 2015, significantly affect employment.  One provision amends the Federal Civil Penalties Inflation Adjustment Act of 1990 to require all agencies with civil monetary penalties covered by the statute to adjust those penalties to represent the change in the consumer price index (CPI), and annually thereaftaer.  The initial "catch-up" adjustment could be as much as the inflation rate from 1990 through 2015.  If OSHA were to choose the greatest catch-up increase allowed, about 82%, the maximum $70,000 fine for repeat and willful violations would grow to $125,438, and the $7,000 maximum fine for serious violations would rise to $12,744.  Increasing the maximum fines in line with the CPI for the catch-up requires OSHA to publish an interim final rule by July 1, 2016, allowing the adjustment to take effect by August 1, 2016.

The second important employment-related provision of the budget deal repeals the automatic enrollment requirement of ObamaCare Section 1511, which requires employers with more than 200 employees to automatically enroll new full-time persons into a qualifying health plan offered by the employer and to automatically continue enrollment of current employees.  Under the now repealed ObamaCare provision, automatic enrollment would become the "default" mechanism for newly-hired employees who take no action regarding healthcare enrollment, whereas under current law newly-hired employees must affirmatively elect to sign up for coverage.  The effect of automatic sign ups would have been expected to increase significantly the number of employees covered by an employer's healthcare plan.