What are the top HR-policy issues currently up for debate in Washington? Michael Aiken, director of governmental affairs for the Society for Human Resource Management (SHRM) and speaker at SHRM's Employment Law & Legislative conference, says that the top HR policy issues include illegal immigration, accommodation of religious beliefs, and a variety of areas concerning benefits.

Proposals targeting illegal immigration

There are a number of proposals currently in Congress to address the issue of illegal immigration, says Aiken. The most dramatic, he says, is the proposal for an electronic verification system for employment eligibility determinations. Based on the government's pilot project for verification, the system would require employers to "run" prospective employees' information through the verification system within three days of hire.

The government managed system would generate a report on the employee's work eligibility, also within three days. Aiken says the pilot project for this system experienced a 15 percent error rate--unacceptable for use on a wide scale. Other proposals for targeting illegal immigration currently before Congress include:

• Proposals to change the I-9 verification and documentation process
• Increases in penalties for hiring unauthorized workers
• Allowances for more H1-B visa

 Religious Freedom Protection

The Workplace Religious Freedom Act (S. 677 and H.R. 1445), proposed in 2005, would amend the Civil Rights Act with regard to religious accommodation in employment. The proposed law would require accommodation of religious beliefs and practices of an employee or prospective employee if the individual can perform the essential functions of the positions. "Essential functions" are related to the position, but may not include functions related to clothing, taking time off, or other functions that have a "temporary impact" on the employee's ability to perform the job. Like the Americans with Disabilities Act, the Workplace Religious Freedom Act would only require accommodation that would not pose an undue hardship on the employer.

The act is highly controversial and presents multiple conflicts with other HR obligations such as OSHA compliance, disparate impact, and verification of religious belief and legitimacy of leave, says Aiken. For these reasons, Aiken says that he does not believe that the Workplace Religious Freedom Act is likely to make much progress in Congress in 2006.

Benefit Issues

There are an impressive number of bills currently before Congress designed to address benefits issues such as pension plan funding rules, defined contribution plans, required contributions, plan contribution limits, investment advice restrictions and maximum exclusion limits. As these Bills succeed or fail, BLR will report on the effect on HR and the way that HR practitioners must respond to remain in compliance.

A new law, signed by President Bush on February 8, 2006, which has several provisions affecting defined-benefit plans. The Deficit Reduction Act of 2005 (P.L. 109-362):

• Increases the flat rate per-participant premium for single-employer defined benefit plans from $19 to $30
• Increases the premium for multi-employer defined benefit plans from $2.60 to $8.00

Under the new law, both premiums will automatically increase each year, based on a cost of living adjustment. The new law also creates a per-participant, per year charge of $1,250 for terminating plans for up to three years following the plan termination. Provisions of the new law became effective January 1, 2006.