Bill Number, Title
and Sponsor
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Bill Summary
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Bill Status
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Bill Outlook
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Employment
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H.R. 2, the Fair Minimum Wage Act of 2007, sponsored by Representative George Miller (D-CA)
S. 2, the Fair Minimum Wage Act of 2007, sponsored by Senator Harry Reid (D-NV)
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The legislation amends the Fair Labor Standards Act to raise the hourly minimum wage by $2.10 in three steps within two years and two months of enactment.
The first wage increase boosted the Federal standard to $5.85 per hour on July 24, 2007. The second step will increase the minimum wage to $6.55 per hour one year after the first increase (July 24, 2008), and the third increase to $7.25 per hour two years after the first increase (July 24, 2009).
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H.R. 2 became P.L. 110-28 on May 25, 2007.
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H.R. 2 became law on May 25, 2007, as part of H.R. 2206, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007.
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H.R. 493, the Genetic Information Nondiscrimination Act of 2007, sponsored by Representative Louise Slaughter (D-NY)
S. 358, the Genetic Information Nondiscrimination Act of 2007, sponsored by Senator Olympia Snowe (R-ME)
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H.R. 493 would prohibit discrimination in health insurance and employment on the basis of an individual’s genetics.
To learn more about H.R. 493, read the May Insider.
S. 358 is similar to the House bill.
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H.R. 493 passed the House of Representatives on April 25, 2007, by a vote of 420-3.
The Senate Health, Education, Labor, and Pensions Committee reported out S. 358 on January 31, 2007.
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In all likelihood, the Genetic Information Nondiscrimination Act will ultimately become law in this Congress. The House has already passed the bill, and the Senate previously passed Senator Snowe’s version of the bill by a vote of 98 – 0 in 2005. In addition, the White House has continuously expressed support for legislation governing genetic discrimination.
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H.R. 800, the Employee Free Choice Act of 2007, sponsored by Representative George Miller (D-CA)
S. 1041, the Employee Free Choice Act of 2007, sponsored by Senator Edward Kennedy (D-MA)
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The bill would amend the National Labor Relations Act to change the way workers can choose to become part of a union by requiring the NLRB to certify a union that secures a majority of signatures through a signed authorization card process.
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H.R. 800 passed the House of Representatives by a 241-185 vote on March 1, 2007. The Senate failed to invoke cloture (60 votes needed) on the motion to proceed on H.R. 800 by a vote of 51 – 48 on June 26, 2007.
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As a separately considered measure, H.R. 800 is effectively dead for the 110th Congress. H.R. 800 failed because it came up nine votes short of the necessary 60 votes to invoke cloture and proceed with debate on the bill. Even if 60 votes were secured and the bill eventually passed the Senate, the White House has indicated the President will veto the legislation.
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H.R. 1540, the Civil Rights Tax Relief Act of 2007, sponsored by Representative John Lewis (D-GA)
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H.R. 1540 would make non-economic damage awards of back pay for job-related harassment or discrimination taxable at the rates effective during the years such pay was earned.
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H.R. 1540 was introduced in the House of Representatives on March 15, 2007, and has been referred to the Ways and Means Committee.
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While it is not a top-tier priority for the congressional leadership, H.R. 1540 is likely to gain bipartisan support. The bill currently has 28 cosponsors. Previous versions of the bill were introduced in the House and Senate in 2001 and 2003, but none moved out of committee.
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S. 910, the Healthy Families Act of 2007, sponsored by Senator Ted Kennedy (D-MA)
H.R. 1542, the Healthy Families Act, sponsored by Representative Rosa DeLauro (D-CT)
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The Healthy Families Act requires employers with 15 or more employees to provide seven days of paid sick leave to full-time (30 hours) workers.
H.R. 1542 is identical to the Senate bill.
To read more about SHRM’s position on Workplace Flexibility, click here.
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S. 910 has been referred to the Senate Health, Education, Labor, and Pensions (HELP) Committee.
H.R. 1542 has been referred to three House committees, including Education and Labor, Oversight and Government Reform, and Administration. On June 21, 2007, the House Workforce Protections Subcommittee held a hearing on Balancing Work and Family, at which Representative DeLauro testified in support of H.R. 1542
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Senator Kennedy, Chairman of the HELP Committee, has indicated S. 910 will be a priority for the committee. The bill currently has 23 cosponsors.
H.R. 1542 currently has 57 cosponsors.
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S. 1136, the Survivors’ Empowerment and Economic Security Act, sponsored by Senator Patty Murray (D-WA)
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S. 1136 would require employers with 15 or more employees to provide 30 days of job-protected, unpaid leave to employees to address issues relating to domestic violence.
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S. 1136 has been referred to the Senate Finance Committee.
The Health, Education, Labor, and Pensions Subcommittee on Employment and Workplace Safety held a hearing on domestic violence in the workplace on April 17, 2007. SHRM testified at the hearing, highlighting several concerns with the practical implementation of the legislation. To read SHRM’s testimony, click here.
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The outlook for S. 1136 is unclear at this time, although in previous Congresses, this legislation has been offered as an amendment to federal spending bills in the Senate.
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S. 1681, the Family Leave Insurance Act of 2007, sponsored by Senator Christopher Dodd (D-CT)
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S. 1681 provides eight weeks of paid leave to employees for leaves permitted under the Family and Medical Leave Act. This would apply to employers with 50 or more workers. Employees, employers and the federal government would finance this benefit program.
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S. 1681 was introduced on June 21, 2007, and referred to the Senate Finance Committee.
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Because S. 1681 enjoys bipartisan support with Senator Ted Stevens (R-AK) as an original sponsor, it could gain additional support in the Senate.
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H.R. 2792, the Family and Medical Leave Inclusion Act, sponsored by Representative Carolyn Maloney (D-NY)
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H.R. 2792 would amend the Family and Medical Leave Act to permit leave to care for a same-sex spouse, domestic partner, parent-in-law, adult child, sibling, or grandparent who has a serious health condition.
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H.R. 2792 was introduced on June 20, 2007, and has been referred to three House committees, including the Education and Labor Committee.
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The outlook for H.R. 2792 is unclear at this time. However, should the Education and Labor Committee hold additional hearings on work/life balance, expansion of the Family and Medical Leave Act could be part of the debate.
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S. 1885, the Military Family Job Protection Act, sponsored by Senator Obama (D-IL)
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S. 1885 would provide up to 52 weeks of job protection for family members of military personnel who are caring for an injured service member.
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S. 1885 was introduced on July 26, 2007, and has been referred to the Senate Committee on Health, Education, Labor, and Pensions.
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This bill was adopted, by unanimous consent, as an amendment to the State Children’s Health Insurance Program (SCHIP) reauthorization legislation. The President recently vetoed the SCHIP bill, and a 2/3 vote in the House to override the veto seems unlikely.
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S. 1898, the Military Family and Medical Leave Act, sponsored by Senator Clinton (D-NY)
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S. 1898 would amend the Family and Medical Leave Act (FMLA) to expand family and medical leave for up to 26 weeks for spouses, sons, daughters, and parents of service members with combat-related injuries.
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S. 1898 was introduced on July 30, 2007, and has been referred to the Senate Committee on Health, Education, Labor and Pensions.
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S. 1898 is bipartisan legislation that was introduced in response to the President’s Commission on Care for America’s Returning Wounded Warriors, which has recommended expanding FMLA for up to 6 months for family members caring for injured service members. This legislation was adopted as an amendment to SCHIP, although the final bill was recently vetoed by the President. The 2/3 vote of the House to override the veto seems unlikely.
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H.R. 1338, the Paycheck Fairness Act, sponsored by Representative Rosa DeLauro (D-CT)
S. 766, the Paycheck Fairness Act, sponsored by Senator Hillary Clinton (D-NY)
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The bill would amend the Fair Labor Standards Act of 1938 to provide new remedies of victims of discrimination in the payment of wages on the basis of sex.
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Both H.R. 1338 and S. 766 were introduced on March 6, 2007. H.R. 1338 has been referred to the House Education and Labor Committee. S. 766 has been referred to the Senate Health, Education, Labor and Pensions Committee.
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The Paycheck Fairness Act has garnered support from a majority of congressional Democrats, as the House bill boasts 225 cosponsors and the Senate bill has 22 cosponsors. The House Workforce Protections Subcommittee held a hearing on H.R. 1338 on July 11, 2007.
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H.R. 1644, the Re-Empowerment of Skilled and Professional Construction Tradesworkers (RESPECT) Act, sponsored by Representative Robert Andrews (D-NJ)
S. 969, the Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers (RESPECT) Act, sponsored by Senator Christopher Dodd (D-CT)
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The bill would amend the National Labor Relations Act (NLRA) to redefine the term “supervisor”. The bill would take out the phrases “assign” and “responsibility to direct” from the duties associated with a supervisor under the NLRA, and dictate that an employee cannot be classified as a supervisor unless the employee engages in managerial duties “for a majority of the individual's worktime.” The “RESPECT Act,” is a legislative response to the National Labor Relations Board’s October 2006 ruling in Oakwood Healthcare Inc., the lead case of three NLRB rulings that have since been referred to as the “Kentucky River” cases because in NLRB v. Kentucky River Community Care (2001), the U.S. Supreme Court directed the NLRB to create a new standard for determining who can be categorized as a “supervisor” under the NLRA.
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The House Education and Labor Committee reported H.R. 1644 by a vote of 26 – 20 on September 19, 2007. Previously, the House Education and Labor Subcommittee on Health, Employment, Labor and Pensions considered H.R. 1644 at a May 8, 2007 hearing, at which SHRM testified. Both H.R. 1644 and S. 969 were introduced in the House and Senate, respectively, on March 22, 2007.
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Passage of the RESPECT Act, by one or both houses of Congress, is possible but would likely result in a veto by the White House. The House bill currently features 149 cosponsors, and the Senate bill has 25 cosponsors.
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S. 2044, Independent Contractor Proper Classification Act of 2007, sponsored by Senator Obama (D-IL)
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The bill would no longer allow employers to use industry practice as a reasonable basis for not treating a worker as an employee, and would prohibit employers from receiving employment tax relief for any worker who the IRS has determined should have been classified as an employee. In addition, the bill allows a worker to petition the IRS for a determination of his or her status. For more information, see the October Insider.
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The bill was introduced on September 12, 2007 and referred to the Senate Finance Committee.
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SHRM testified at one of two hearings that House committees held on the issue of intentional worker misclassification. This is the first piece of legislation on the matter and it is unclear whether its focus will satisfy the members of Congress who have been exploring the issue.
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H.R. 3685, the Employment Non-Discrimination Act of 2007 (ENDA), sponsored by Representative Barney Frank (D-MA)
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The bill would prohibit employment discrimination on the basis of sexual orientation.
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H.R. 3685 was introduced on September 27, 2007, and has been referred to four House committees.
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The House Education and Labor Committee had scheduled a markup session on H.R. 3685 on October 2, 2007. However, the markup was postponed until further notice.
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H.R. 3686, a bill to prohibit employment discrimination based on gender identity, sponsored by Representative Barney Frank (D-MA)
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The bill would prohibit employment discrimination based on gender identity.
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H.R. 3686 was introduced on September 27, 2007, and has been referred to four House committees.
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H.R. 3686 was introduced on September 27, 2007, and has been referred to four House committees.
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H.R. 2831, the Ledbetter Fair Pay Act of 2007, sponsored by Representative George Miller (D-CA)
S. 1843, the Fair Pay Restoration Act of 2007, sponsored by Senator Edward Kennedy (D-MA)
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Both bills would clarify that a discriminatory compensation decision occurs each time compensation is paid, not when a supervisor establishes the compensation rate. The legislation would effectively nullify the U.S. Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co., and allow “affected” persons to file discrimination charges on behalf of an aggrieved person.
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H.R. 2831 was passed by the House of Representatives by a vote of 225-199 on July 31, 2007. The bill was reported by the House Education and Labor Committee by a vote of 25 – 20 on June 27, 2007. The Senate bill was introduced on July 20.
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The House-passed H.R. 2831 will likely be considered by the Senate before the end of 2007. The Senate bill was introduced with 18 original cosponsors. In July, the White House issued a veto threat on the legislation.
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H.R. 3195, the ADA Restoration Act of 2007, sponsored by Representative Steny Hoyer (D-MD)
S. 1881, the Americans with Disabilities Act Restoration Act of 2007, sponsored by Senator Tom Harkin (D-IA)
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The bill would amend the Americans with Disabilities Act of 1990 to change the definition of “disability” from “a physical or mental impairment that substantially limits one or more major life activities” to “a physical or mental impairment.” The bill would also redefine the terms “mental impairment” and “physical impairment.”
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Both bills were introduced on July 26, 2007
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Both bills were introduced with bipartisan support, but the complexity of the ADA will make passage unlikely of any amendments to the Act as significant as H.R. 3195 and S. 1881.
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Health Care
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H.R. 298, the Flexible Spending Accounts Growth and Opportunities Act of 2007, sponsored by Representative Carolyn McCarthy (D-NY)
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H.R. 298 would allow up to $1,000 in unused funds in a health Flexible Spending Account to carry over to the following year.
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H.R. 298 has been referred to the House Ways and Means Committee.
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There has been strong bipartisan support for FSA rollover legislation in past congresses, but the estimated cost of the proposal has prevented it from becoming law. H.R. 298 is likely to suffer the same fate.
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H.R. 506, the Health Partnership Through Creative Federalism Act, sponsored by Representative Tammy Baldwin (D-WI)
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H.R. 506 authorizes grants for states to provide health care coverage to the uninsured. Specifically, the bill establishes a State Health Innovation Commission, which would make recommendations to Congress in terms of which proposals should receive a federal grant. Congress would then determine whether or not to fund the initiative.
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This legislation has been jointly referred to the House Energy and Commerce and Rules Committee.
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H.R. 506 has bipartisan support in the House with 74 cosponsors.
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S. 334, the Healthy Americans Act, sponsored by Senator Ron Wyden (D-OR)
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The Healthy Americans Act provides for comprehensive health care reform by requiring all individuals to purchase health insurance. Federal subsidies would be given to low-income Americans to buy health insurance. The bill also includes an employer mandate, requiring employers to make “Employer Shared Responsibility (ESR) Payments,” which would be based on the number of full time employees.
To learn more about the Healthy Americans Act, read the February Insider.
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S. 334 has been referred to the Senate Finance Committee.
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Given the complexity of this bill, and the fact that there is no clear consensus on the best approach for reforming the health care system, it is unlikely S. 334 would be enacted during the 110th Congress. However, the Senate may consider specific provisions of the bill and certain elements of the bill could also be part of the larger health care debate leading up to the 2008 presidential election.
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S. 558, the Mental Health Parity Act of 2007, sponsored by Senator Pete Domenici (R-NM)
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S. 558 requires employers who offer mental health coverage to provide parity between mental health and physical health coverage. Under the bill, if a group health plan with 50 or more employees included mental health benefits, the financial requirements (deductibles, co-payments, coinsurance) and treatment limitations (frequency of treatment, number of visits, days of coverage) must not be any more restrictive than the financial requirements and treatment limitations for medical and surgical benefits.
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The U.S. Senate passed S. 558 by unanimous consent on September 18, 2007.
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With Senate passage of S. 558, action now turns to the House of Representatives and H.R. 1424, a vastly different mental health parity bill.
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H.R. 1424, the Paul Wellstone Mental Health and Addiction Equity Act of 2007, sponsored by Representative Patrick Kennedy (D-RI)
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The bill expands the Mental Health Parity Act of 1996 by requiring group health plans that offer benefits for mental health and addiction to do so on the same terms as care for other diseases. H.R. 1424 is more expansive than the Senate bill. To learn more about the differences between the two bills, see the August
Insider.
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H.R. 1424 has been referred to three House committees. The Education and Labor Committee approved H.R. 1424 on July 18, 2007, by a vote of 33-9. The Ways and Means Committee favorably reported H.R. 1424 on September 26, 2007, by a vote of 27-13. The Energy and Commerce Committee will consider the bill on October 17, 2007.
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Although H.R. 1424 has 272 bipartisan cosponsors, it does not enjoy the support of all stakeholder groups, including employers and insurers. Sponsors of the legislation have received commitments from House Leadership that the bill will be brought up for a vote by the full House before the end of the congressional session.
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S. 1693, the Wired for Health Care Quality Act, sponsored by Senator Ted Kennedy (D-MA)
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S. 1693 provides for the development of an interoperable health information network to allow health care information to be securely transmitted and stored.
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The Senate Health, Education, Labor and Pensions Committee favorably reported S. 1693 on June 27, 2007. The bill is now waiting action by the full Senate.
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Given the bipartisan sponsorship of this legislation, including Senators Clinton (D-NY), Kennedy (D-MA), Enzi (WY), and Hatch (R-UT), S. 1693 is one health care bill that has a strong chance of being enacted in the 110th Congress.
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Immigration
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S. 1639,
Comprehensive Immigration Reform
H.R. 1645, the Security Through Regularized Immigration and a Vibrant Economy (STRIVE) Act of 2007, sponsored by Representative Luis Gutierrez (D-IL)
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The bill is a comprehensive immigration reform proposal which would make significant changes to the Immigration Nationality Act. These changes include enhancing border security, creating a low-skilled guest worker program, developing a merit-based program for high-skilled immigrants as well as taking steps to create electronic employment verification system.
H.R. 1645 is similar to S.1639
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By passing the regular committee process, S.1639 was introduced in early June and immediately considered on the Senate floor. The bill was pulled from consideration as the U. S. Senate was unable to obtain cloture on the legislation on June 28.
Introduced on March 22, H.R. 1645 has been referred to two House committees including Judiciary and Homeland Security.
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While outlook for bipartisan comprehensive immigration reform looked fairly strong at the beginning of the 110th congressional term, prospects now look bleak. However, interest in passing “rifle” shot immigration measures for border security and high immigration remain a possibility.
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Tax and Benefits
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H.R. 1257, the Shareholder Vote on Executive Compensation Act, sponsored by Representative Barney Frank (D-MA)
S. 1181, the Shareholder Vote on Executive Compensation Act, sponsored by Senator Barack Obama (D-IL)
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The bill amends the Securities Exchange Act to require public companies to include in their annual proxies, a non-binding, advisory shareholder vote to approve executive compensation. The bill also provides for a separate advisory vote if the company gives a new, undisclosed 'golden parachute' during negotiations to buy or sell a company.
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H.R. 1257 passed the House of Representatives on April 20, 2007, by a vote of 269-134.
S. 1181 was introduced in the Senate on April 20 and referred to the Committee on Banking, Housing, and Urban Affairs.
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Many members of Congress may be convinced to support the measure due to its non-binding nature. Others oppose the bill because they would like to see recent Securities and Exchange Commission rules on executive pay implemented before considering a legislative fix. The bill will likely have a very difficult time passing the Senate due to the tighter balance of power between the parties. See the May Insider for more details.
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S. 1038, the Workforce Health Improvement Program (WHIP) Act, sponsored by Senator John Cornyn (R-TX)
H.R. 1748, the Workforce Health Improvement Program (WHIP) Act, sponsored by Representative Zach Wamp (R-TN)
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S. 1038 would enable an employer to deduct the cost of subsidizing or providing off-site fitness center benefits for their employees, and would exclude this wellness benefit from being considered taxable income for employees.
H.R. 1748 is similar to S. 1038.
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S. 1038 has been referred to the Senate Finance Committee.
H.R. 1748 has been referred to the House Committee on Ways and Means.
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The WHIP Act has bipartisan support in the both the House and Senate, although it is unclear whether the legislation will advance in the 110th Congress.
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H.R. 853, the Wellness and Prevention Act, sponsored by Representative Joe Knollenberg (R-MI)
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Under the bill, employers would receive up to a $200 tax credit per employee that joins the wellness program. Employees would also receive a $200 tax credit for participating in the wellness program and meeting certain requirements.
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H.R. 853 has been jointly referred to the House Committees on Energy and Commerce and Ways and Means.
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While the legislation enjoys bipartisan support, it is unclear whether it will advance in the 110th Congress.
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S. 1141, the Automatic IRA Act of 2007, sponsored by Senator Jeff Bingaman (D-NM)
H.R. 2167, the Automatic IRA Act of 2007, sponsored by Representative Richard Neal (D-MA)
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The bill amends the Internal Revenue Code to require that employers with more than 10 employees and that have been in business more than two years provide each employee, not covered by qualified retirement plan, the option to save for retirement through automatic payroll deposit IRAs in exchange for a tax credit of up to $250.
For more information on S. 1141, read the May Insider.
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S. 1141 was introduced on April 18, 2007, and has been referred to the Senate Finance Committee.
H.R. 1267 was introduced on May 3, 2007 and referred to both the House Ways & Means and House Education & Labor committees.
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The legislation was introduced with bipartisan sponsors in both houses. Although a popular idea to increase retirement savings, it is not clear whether the issue has enough momentum to move forward given Congress’ other legislative priorities.
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S. 239, Notification of Risk to Personal Data Act of 2007, sponsored by Senator Dianne Feinstein (D-CA)
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The bill requires any entity engaged in interstate commerce to notify any person whose electronic, sensitive, personally identifiable information, has been, or is reasonably believed to have been breached. Notification must be made to each individual believed to be affected with additional notification to law enforcement and credit reporting agencies under certain circumstances. Entities violating the notification requirement are subject to Federal and State civil enforcement actions.
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On May 3, the Senate Judiciary Committee amended S. 239 and reported it favorably. It was added to the Senate calendar on May 31.
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Several bills requiring workplaces to notify individuals of data breaches have been introduced in the Senate. It is unclear which bill will move through the legislative process but Senator Feinstein, as a senior member of the Senate Judiciary committee, is likely to promote this bill’s provisions as a stand-alone bill or as part of another piece of legislation.
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S. 1178, the Identity Theft Prevention Act, sponsored by Senator Daniel Inouye (D-HI)
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The bill requires that entities that maintain, use, sell or dispose of personal information, in any form, electronic or otherwise, develop a security plan to protect the information and that they notify affected individuals if a breach occurs that creates a reasonable risk of identity theft.
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The Senate Commerce Committee approved the legislation on April 25, 2007.
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The bill is competing with several other Senate bills addressing data security and notification of individuals following a breach. Senator Inouye, as Chairman of the Commerce Committee carries weight on the issue, but several committees have a jurisdictional interest in data security including the Judiciary Committee, chaired by Senator Leahy (D-VT) who introduced his own bill, S. 495. It is not clear which bill will serve as the platform for discussion of this issue on the Senate floor.
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S. 495, the Personal Data Privacy and Security Act of 2007, sponsored by Senator Patrick Leahy (D-VT)
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The bill requires all entities in interstate commerce to ensure the privacy of electronic or digital data and provide individual notice to affected individuals.
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The bill was introduced on February 6, 2007 and was reported out of Judiciary committee and placed on the Senate calendar May 23, 2007.
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The bill is competing with several other Senate bills addressing data security and notification of individuals following a breach. Senator Leahy, as Chairman of the Judiciary Committee carries weight on the issue, but several committees have a jurisdictional interest in data security including the Commerce Committee, chaired Senator Inouye (D-HI) who introduced his own bill, S. 1178. It is not clear which bill will serve as the platform for discussion of this issue on the Senate floor.
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H.R. 1820, the Tax Equity for Health Plan Beneficiaries Act of 2007, sponsored by Representative Jim McDermott (D-WA)
S. 1556, the Tax Equity for Domestic Partner and Health Plan Beneficiaries Act, sponsored by Senator Gordon Smith (R-OR) and Senator Joseph Lieberman (I-CT)
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H.R. 1820 would amend the Internal Revenue Code to extend the exclusion from gross income for employer-provided health care coverage to certain eligible beneficiaries, including domestic partners, and their dependent children.
S. 1556 is the Senate companion bill.
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H.R. 1820 was introduced on March 29, 2007, and has been referred to the Ways and Means Committee.
S. 1556 was introduced June 6, and referred to the Senate Finance Committee
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The sponsor of the bill is a senior member of the Ways and Means Committee, which could help the bill’s chances of advancing.
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S. 1288, Women’s Retirement Security Act of 2007, sponsored by Senator Gordon Smith (R-OR)
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The bill requires employers to allow long-term, part-time employees to make elective deferrals to their 401(k) plan, expands the Saver’s credit, creates automatic payroll deductions into an IRA for employees not covered by a qualified retirement plan, and allows a portion of payments, from qualified annuities that last a lifetime, to be excluded from taxes.
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The bill was introduced May 3, 2007 and was referred to the Finance Committee.
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The bill addresses a popular public policy issue - narrowing the retirement gap between men and women. It is unclear, however, whether this issue is a high enough priority to garner attention this year.
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S. 1753, Healthy Workforce Act of 2007, sponsored by Senator Tom Harkin (D-IA)
H.R. 3717, the Healthy Workforce Act, sponsored by Representative Tom Udall (D-NM)
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The bill provides a tax credit to employers for costs of implementing wellness programs. The credit is based on 50% of costs paid by the employer in connection with a qualified wellness program but is not to exceed $200 per employee up to 200 employees and $100 per employee in excess of 200 employees.
H.R. 3717 is identical to the Senate bill.
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The bill was introduced in the Senate on July 9 and referred to Senate Finance Committee.
H.R. 3717 was introduced on October 2, 2007, and was referred to the House Ways and Means Committee.
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Congress remains interested in supporting initiatives to support health and healthy workplaces. This tax credit, however, will have to compete with other popular initiatives that cost money and the bill sponsor will need to find an offset in order to stay within Congress’ promise to not increase the deficit.
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S. 1725, Restoring Pension Promises to Workers Act, sponsored by Senator Tom Harkin (D-IA)
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The bill would require any employer offering a nonqualified deferred compensation plan to also sponsor one or more defined benefit pension plan. The defined benefit plan would have to meet certain minimum standards related to vesting, benefits and participation. If the employer fails to meet the requirements, all compensation deferred under the nonqualified plan would be immediately included in each covered employee’s gross income. The bill also amends ERISA to protect service credits for employees affected by mergers and acquisitions to maintain their eligibility for subsidized early retirement benefits and to establish an office of pension participant advocacy within the Department of Labor.
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The bill was introduced June 28 and referred to Senate Committee on Health, Education, Labor and Pension (HELP).
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Nonqualified deferred compensation has been an issue of high interest in Congress. In addition, Senator Harkin is a high-ranking member of the HELP committee with the ability to push this bill forward.
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H.R. 3158, 401(k) Fair Disclosure for Retirement Security Act of 2007, sponsored by Representative George Miller (D-CA)
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The bill requires plan administrators for all 401(k)-style retirement plans to disclose, in simple terms, all fees charged to plan participants on an annual basis. In addition, plan participants must be provided with more detailed information on investment strategies, risks and returns when they sign up for their organization’s 401(k). The bill also enhances DOL’s oversight of 401(k) plans and requires annual disclosure of all fees and conflicts of interest to employers who sponsor 401(k) plans.
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The bill was introduced in the House on July 26 and referred to the Committee on Education and Labor.
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As the use of defined benefit retirement plans diminishes, more scrutiny is being applied to defined contribution plans. Legislators have expressed increased concern about participant-directed retirement plans and have highlighted plan fees as a hidden cost. Representative Miller, bolstered by a recent Government Accountability Office (GAO) report calling for greater disclosure, has held hearings in the House Education and Labor focused on how much plan fees cost participants. As Chairman of the committee of jurisdiction, Chairman Miller has the power to push this legislation forward.
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H.R. 3765, the Defined Contribution Plan Fee Transparency Act of 2007, sponsored by Representative Neal (D-MA)
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The bill requires new disclosure on all tax-preferred, participant-directed defined contribution plans. It requires employers to provide employees (plan participants) with two separate disclosures regarding plan investments and fees, at enrollment and annually. Employers that fail to provide participant notices will face a tax of $100 per day per failure capped at $500,000. The bill also requires service providers to provide fee information to plan administrators in advance of a contract for plan services. Service providers who fail to provide the information will face a tax of $1,000 per day per failure with an annual cap of $1 million.
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The bill was introduced on October 4, 2007, and was referred to the House Committee on Ways and Means.
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Members of Congress are increasingly concerned that defined contribution plan participants have the information necessary to successfully save for their own retirement. Plan fees have been criticized as eroding a participant’s retirement funds without full knowledge of the participant. The Neal fee disclosure bill presents an alternative to H.R. 3158 introduced earlier this year by Representative Miller. The Miller bill contains more specific disclosure requirements and places other requirements on service providers and plan sponsors making the Neal bill an attractive alternative for some Members of Congress.
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H.R. 3418, Employee Educational Assistance Act of 2007, sponsored by Representative Sander Levin (D-MI)
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H.R. 3418 makes section 127 of the Internal Revenue Code permanent. Section 127 allows an employee to exclude up to $5,250 per year of employer-provided educational assistance from his or her gross taxable income. Section 127 is set to expire in 2010 if not extended or made permanent.
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The bill was introduced on August 8, 2007, and referred to the House Committee on Ways and Means.
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Section 127 is a popular employer-provided benefit that has bipartisan support among lawmakers (44 cosponsors) and widespread support among employers, higher education and labor groups. The bill may be added to a larger tax package later in the year, but sponsors will have to address the increased cost to the US Treasury that permanency would cause.
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