Congress Seeks a Final Deal on Tax Reform

Following passage of separate tax reform bills in the House of Representatives and Senate, House and Senate leaders have appointed members to negotiate a final agreement. Among the issues that must be resolved are individual tax brackets and rates, the fate of the alternative minimum tax (AMT), and tax rates for small businesses structured as pass-throughs.

Congressional Republicans are hoping to reach an agreement on a Conference Report the week of December 11 and vote on it the following week. Republicans have a narrow margin for error with the House passing the Tax Cuts and Jobs Act (H.R. 1) 227 to 205 on November 16, and the Senate passing its own version by a vote of 51 to 49 on December 2. President Trump has publicly stated he would like to sign a tax reform bill by Christmas.

Here is the list of the conference committee members that are negotiating a final agreement.

HOUSE REPUBLICANS: Rob Bishop (UT), Diane Black (TN), Kevin Brady (TX), Kristi Noem (SD), Devin Nunes (CA), Peter Roskam (IL), John Shimkus (IL), Greg Walden (OR), and Don Young (AK).

HOUSE DEMOCRATS: Kathy Castor (FL), Lloyd Doggett (TX), Raul Grijalva (AZ), Sander Levin (MI), and Richard Neal (MA).

SENATE REPUBLICANS: John Cornyn (TX), Mike Enzi (WY), Orrin Hatch (UT), Lisa Murkowski (AK), Rob Portman (OH), Tim Scott (SC), John Thune (SD), and Pat Toomey (PA).

SENATE DEMOCRATS: Maria Cantwell (WA), Tom Carper (DE), Bob Menendez (NJ), Patty Murray (WA), Bernie Sanders (VT), Debbie Stabenow (MI), and Ron Wyden (OR).

Below is a side-by-side comparison of key provisions in the House and Senate tax reform bills that must be reconciled.
 

Congress Agrees to Fund Government for Two Weeks

The House and Senate approved an agreement on December 7 to fund the government for two weeks and avoid a government shutdown. President Trump signed the agreement on Friday, December 8, as negotiations continue on funding the federal government for the balance of Fiscal Year (FY) 2018, which began on October 1. The new funding agreement expires on December 22.

Republicans and Democrats are still far apart on agreeing to overall spending levels and whether to include a provision helping young immigrants living in the U.S. illegally. Congressional Republicans have floated the idea of raising defense spending and keeping other government programs at current levels as a way of breaking the impasse.

OSHA Extends Electronic Reporting Deadline to December 15

The Occupational Health and Safety Administration (OSHA) has announced that it has extended the deadline to December 15, 2017, for employers to submit OSHA Form 300A electronically. The requirement applies to calendar year 2016 data.

OSHA requires employers with more than 10 employees to keep a record of serious work-related injuries and illnesses. Some low-risk industries are exempted from routinely keeping records, and minor injuries only requiring first aid does not need to be recorded. 

The Agency also requires records of such injuries be maintained at the worksite for at least five years. Each February through April, employers must post a summary of the injuries and illnesses recorded the previous year. Additionally, if requested, copies of the records must be provided to current and former employees, or their representatives.

NLRB to Shift Directions with New General Counsel

Peter Robb, the new General Counsel for the National Labor Relations Board (NLRB), on December 1 issued a memorandum to all Regional Directors instructing them to seek advice from the Washington, D.C., office on all cases that involve decisions made by the NLRB over “the last eight years that overruled precedent and involved one or more dissents.” This includes several high-profile cases on such issues as joint employer status and micro-unions. The memo also specifically rescinds several of the prior General Counsel’s memos.

House Subcommittee Examines Paid Leave and Flexible Work Policies

The House Subcommittee on Health, Employment, Labor and Pensions held a hearing on December 6 to examine the evolving topic of paid leave and flexible work policies. “This growing patchwork of mandates across multiple jurisdictions creates a real administrative and implementation burden, particularly on small businesses, while also increasing compliance costs for employers,” said Rep. Tim Walberg (R-MI) who chairs the subcommittee.

Witnesses laid out how cutting-edge paid leave benefits and flexible work options are driving changes in workplace culture. In addition, they stressed the importance of preserving employer flexibility so that benefits offered can be tailored to best fit the needs of their employees.

As employers continue to develop and deploy leave policies, there has been a significant increase in new and oftentimes conflicting state and local paid leave mandates. A growing patchwork of mandates across multiple jurisdictions can create administrative and implementation burdens, particularly for small businesses, while increasing compliance costs for employers.

In November, Rep. Mimi Walters (R-CA) introduced the Workflex in the 21^st Century Act (H.R. 4219). Workflex is defined as a combination of paid leave and flexible work options. Under the legislation, all employers who adopt a workflex place would be required to provide paid leave to all employees.