NewsBrief – November 2024
In This Issue:
- Washington L&I Announces 2025 Minimum Wage Rate
- It’s Time! Attend our Oregon and Washington Annual Compliance Updates
- NEW Workplace Trends Survey: Your Input Matters!
- 2025 Changes to Medicare Part D: What Employers Need to Know
- Overview of Cascade’s Online Compensation Platform: Payscale Peer
- Hot Compliance Question
- Member Benefit Spotlight: HR Policies – On Demand
Compliance Corner: ADA Guide
Each month, we highlight one of the many resources exclusively available to you as a member of Cascade.
This month, we are featuring our ADA Guide. The Americans with Disabilities Act and state disability laws require that an employer offer reasonable accommodations to help disabled employees satisfactorily perform their job as long as the accommodation is reasonable. This guide helps Oregon and Washington employers navigate employer obligations such as who is covered under these laws, how to identify and respond to ADA requests throughout the entire employment process, what is considered a reasonable accommodation, and more!
Washington L&I Announces 2025 Minimum Wage Rate
Cascade Compliance Team
compliance@cascadeemployers.com
On September 30, 2024, Washington’s Labor and Industries (L&I) announced the state’s minimum wage will increase on January 1, 2025, to $16.66 per hour. This marks a 2.35 percent increase over the 2024 minimum wage rate at $16.28 per hour.
Washington law allows cities to enact their own higher minimum wage rates. Specifically, Bellingham, Burien, Unincorporated King County, Seattle, SeaTac, Tukwila, and Renton have city-specific minimum wages. The exact rates can be found here on WA L&I’s website.
In conjunction with the minimum wage announcement, WA L&I used the 2025 minimum wage rates to update the salary thresholds for exempt employees. As a reminder, Washington state sets specific salary thresholds that an employee must make to qualify for the “white collar” exemption from overtime. Along with meeting a salary threshold that is higher than the federal standard, employees must still meet the FLSA “duties” test for executive, administrative, professional workers, or computer employees.
Effective January 1, 2025, for small employers with up to 50 employees, the salary threshold is $1,332.80/week ($69,305.60 a year). For large employers with 51 or more employees, the salary threshold is $1,499.40/week ($77,968.80 a year). The updated salary threshold schedule through 2028 can be found here on WA’s L&I website.
Washington employers should be prepared for January 1st by analyzing positions that will be impacted by both the minimum wage increases and the salary threshold increases.
It’s Time! Attend our Oregon and Washington Annual Compliance Updates
Cascade Compliance Team
compliance@cascadeemployers.com
Our most popular sessions of the year are here to help you navigate the complexities of compliance with confidence. Cascade’s 2025 Compliance Updates cover essential new laws, rules, and regulations that took effect in 2024, and what’s on the horizon for 2025.
What You'll Learn:
- Key Changes in 2024: A review of the latest employment laws, rules, and regulations.
- 2025 Outlook: Anticipate future trends and prepare your organization accordingly.
- Practical Strategies: Learn how to implement compliance measures effectively.
- Essential Tools: Receive a valuable compliance checklist and other resources.
Don’t miss out—register for the Oregon sessions on December 3rd or December 10th and/or the Washington session on December 11th and stay ahead in 2025!
NEW Workplace Trends Survey: Your Input Matters!
McKenna Arnold, Survey and Research Manager
surveys@cascadeemployers.com
Do you have questions about current workplace trends and what might be coming down the pipeline? Cascade’s new Workplace Trends Survey launches on November 5th and is designed to gather insights on a variety of workplace topics and trends impacting organizations now or in the future. In just 10 questions we cover a lot, from insurance benefits to employee conflict and so much more.
Your responses will help us to better understand the evolving needs and expectations of workers and organizations in our region, and to identify emerging trends that are impacting the workplace. In turn, Cascade will take this information to ensure we are giving you what you need to address these issues.
Why participate?
- Learn about emerging trends: All participants will receive a FREE copy of the survey report, which will provide valuable insights into the latest workplace trends in Oregon and Washington.
- Share your perspective: Provide your organization’s thoughts and trends so we can see if there are other organizations facing the same issues and impacts. Your response is valuable to us.
How to participate:
The survey is open November 5th-19th, so don’t delay. Please click here to participate. The survey is quick and easy (less than 10 minutes). All participants will receive a free copy of the survey report upon publication in early December.
2025 Changes to Medicare Part D: What Employers Need to Know
By Patrick Sullivan, Benefits Consultant at CSNW Benefits
patrick@csnwinc.com
Starting January 1, 2025, the most impactful change to Medicare Part D will be the reduction of the annual out-of-pocket (OOP) maximum from $8,000 in 2024 to just $2,000. This adjustment is most relevant for groups with HSAs and high deductible health plans (HDHPs), which traditionally feature higher out-of-pocket costs. As a result, many of these plans may no longer be considered "creditable" under Medicare Part D standards.
What does this mean for employers? If a plan is deemed non-creditable, Medicare-eligible employees and their dependents could face penalties if they do not enroll in a Medicare Part D plan during their initial Medicare eligibility period. While employers are not required to offer creditable coverage to employees, they are required to communicate the plan's creditable coverage status to their employees.
What is Creditable Coverage?
Under Medicare Part D, "creditable coverage" is defined as prescription drug coverage that has an actuarial value that equals or exceeds that of the standard Medicare Part D plan. If an employer’s plan falls short of this benchmark, it is classified as non-creditable.
Employers are required to notify Medicare-eligible participants annually about whether their coverage is creditable. This disclosure is crucial, as it informs employees whether they can delay enrolling in Medicare Part D without facing penalties.
How to Determine Creditability?
There are two primary methods for determining whether a plan is creditable:
- Simplified Determination (Safe Harbor): This method allows employers to qualify for creditable coverage status if the plan meets specific criteria, such as providing coverage for both brand-name and generic prescriptions, offering reasonable access to retail providers, and paying at least 60% of participants’ prescription drug expenses.
- Actuarial Equivalence: If a plan does not qualify under the simplified determination method, an actuarial analysis is required. This analysis compares the expected prescription drug claims under the employer's plan to the standard Medicare Part D plan.
What Should Employers Do Next?
Employers should take several steps to prepare for these upcoming changes:
- Review Current Plans: Assess whether your current prescription drug plans will remain creditable under the new 2025 standards. If not, consider plan modifications or additional coverage options.
- Communicate with Employees: Ensure that Medicare-eligible employees are informed about the creditability of their coverage. This is particularly important for those who may need to enroll in a Medicare Part D plan to avoid penalties.
- Stay Compliant: Adhere to the reporting requirements, including annual disclosures to Centers for Medicare and Medicaid Services and notifications to Medicare-eligible participants. Non-compliance could result in employee relations issues or legal complications.
Unsure if Your Group Health Plans or Benefits Are in Compliance?
Get a complimentary compliance audit from Cascade’s benefits partner, CSNW Benefits. Contact Patrick Sullivan: patrick@csnwinc.com.
Overview of Cascade’s Online Compensation Platform: Payscale Peer
McKenna Arnold, Survey and Research Manager
surveys@cascadeemployers.com
Cascade is excited to continue its second year with our online compensation platform, Payscale Peer! This innovative platform offers our members enhanced compensation reporting options, including real-time data reports, online dashboarding, competitor comparisons, and regional and national data sets.
What is Payscale Peer?
Payscale Peer is an on-demand employer-reported market data source that allows organizations to enter their pay data and compare it to others using a variety of filters and scopes. With data submitted for over 5,000 benchmark positions from over 3,000 organizations across industries, departments, and levels, Payscale Peer provides a comprehensive and up-to-date view of compensation trends.
Key Benefits of Payscale Peer for Cascade Members:
- Real-time Data: Access the most recent compensation data available, ensuring you stay competitive in the ever-changing job market.
- Online Dashboarding: Easily visualize and analyze compensation data to make informed decisions.
- Competitor Comparisons: Benchmark your compensation against industry peers and competitors.
- National Data Sets: Gain insights into compensation trends across the country.
- Customizable Filters: Tailor your analysis to specific industries, regions, organization sizes, employee tenure, and more.
How to Get Started:
- Register to participate here!
- Fill out the provided Excel sheet with your organization’s compensation data.
- Access Peer:
- Cascade’s Small Business, Premium and Pro Members receive access for Free
- Essential Members receive access for $325-$425 (depending on FTEs)
- Non-Members can access for $1850-$3300
Want to learn more?
- Check out our resource website for more information
- Frequently Asked Questions
Contact Us:
If you have any questions or require further assistance, please contact us.
Hot Compliance Question
Cascade Compliance Team
compliance@cascadeemployers.com
Question: Is COVID-19 a qualifying reason under Paid Leave Oregon (PLO) and the Federal Family Medical Leave Act (FMLA)?
Answer: It depends. Employers who are covered by the federal Family and Medical Leave Act (FMLA) must provide job-protected leave and other benefits to an eligible employee who misses work due to a serious health condition of the employee’s own or a close family member. Paid Leave Oregon (PLO) also provides protected leave to an eligible employee who misses work due to their own serious health condition or an eligible family member.
Under both PLO and FMLA, an employee’s illness caused by coronavirus may or may not qualify as a serious health condition, depending on the circumstances.
Flu Is Not Typically a “Serious Health Condition”
The flu and common cold do not typically qualify as serious health conditions under the FMLA or PLO, unless complications arise. Likewise, an employee out sick with COVID-19 may not have a serious health condition under PLO and/or FMLA.
For FMLA, employers should not count the absence against an employee’s 12 weeks of FMLA leave. Doing so could violate the FMLA. Remember, however, absences that are not considered a serious health condition, may still qualify under Oregon Sick Leave.
COVID-19 with Complications May Be a Serious Health Condition
Under both PLO and FMLA, COVID-19 can amount to a serious health condition if complications arise from the illness, leading to, for example, hospitalization or incapacitation.
Where an employee or their eligible family member has complications arising from COVID-19 or the flu, PLO and/or FMLA eligible employees are provided certain job protections and reinstatement rights while the employee is out on leave.
For FMLA, the employer should also keep track of the leave and deduct it from the employee’s 12 weeks of allotted FMLA leave.
Requiring Fitness-for-Duty Certification to Return to Work
Employers may require an employee who has been out on FMLA leave due to COVID-19 to satisfy any of the following before returning to work:
- Provide a doctor’s note clearing the employee to return to the workplace.
- Submit to a medical examination.
- Remain symptom-free for a specific period of time before returning to work.
Employers should apply any policy or practice uniformly and treat employees in similar situations the same. For example, if an employer asks one employee who has been out sick to submit a doctor’s note, the employer should require the same of all employees who have been out sick with pandemic influenza before returning to work.
Member Benefit Spotlight: HR Policies – On Demand
By Sheryl Kelsh, Membership Development Manager
skelsh@cascadeemployers.com
A valuable benefit of membership with Cascade Employers Association is the extensive catalog of HR Policies, available exclusively in the Cascade HR Library section of our Members Only area. With over 150 fully-vetted sample HR policies created and reviewed by our experienced team of HR consultants, we provide our members with a wealth of ready-to-use resources.
From AI in the Workplace to Compliance with 2024 Regulations
In today’s rapidly changing work environment, staying compliant with new laws and implementing current policies is crucial. Whether you’re seeking a policy on the use of artificial intelligence (AI) in your workplace, need an updated 2024 Oregon Family Leave Act (OFLA) policy, or are preparing to implement the latest Paid Leave Oregon (PLO) regulations, our policy library is here to support you. These are just a few examples of the many customizable documents you can download and tailor to your specific organizational needs.
No Need to Start from Scratch
Why spend valuable time drafting policies from scratch when you can leverage our expertly curated tools? Your membership with Cascade provides a comprehensive, on-demand HR toolkit designed to save you time and ensure you meet regulatory requirements.
Ready When You Are
Simply log in to the Members Only area of our website and navigate to the Cascade HR Library. From there, you can search, download, and customize any policy to suit your organization. Whether you’re managing day-to-day HR issues or preparing for upcoming regulatory changes, we’ve got you covered.
Take full advantage of this exclusive benefit—and let Cascade’s resources help streamline your HR operations.