Kahn, Dees, Donovan & Kahn, LLP

Newsletter Archives 2010

The KDDK Advantage - June/July 2010

FLSA Now Requires Break Time for Nursing Mothers
By Carrie Mount Roelle

The Patient Protection and Affordable Care Act, better known as the federal Health Care Reform law, amended the Fair Labor Standards Act (FLSA) to require employers to provide nursing mothers time to express breast milk. Section 4207 of the law provides that for a period of up to one year following a child’s birth, employers must give nursing mothers “reasonable break time” each time she needs to express milk. The law also requires employers to provide nursing mothers a location to express milk, other than a bathroom, that is shielded from view and free from intrusion.

Although the law specifies that an employer is not required to compensate an employee for these breaks, it does not give any guidance regarding the definition of “reasonable break time” or set a limit to the number of breaks an employee can take each day. Until the Department of Labor issues regulations offering guidance in this area, employers may want to interpret this provision conservatively.

An employee who qualifies as exempt under Section 213 of the FLSA, the executive, administrative, professional, outside sales, or computer professional exemptions, are seemingly not entitled to breaks under the amendments as the portion of the law amended by Health Care Reform concerns non-exempt employees. But, there is nothing to indicate the place to express milk only applies to non-exempt employees. The law also provides a safe harbor for employers with less than 50 employees, but only if complying with the requirements “would impose an undue hardship by causing the employer significant difficulty or expense when considered in relation to the size, financial resources, nature or structure of the employer’s business.” Whether this exemption applies can be difficult to determine. The language does, however, closely track the undue hardship exception to the reasonable accommodation requirement under the Americans with Disabilities Act. Case law and regulations specific to that exemption may provide some guidance until the Department of Labor issues regulations in this area.

Indiana and Illinois, along with several other states, already have statutes regarding an employer’s obligation to provide breaks for nursing mothers. The new federal law will not preempt a state law providing greater protections to nursing mothers. The new law took effect on March 23, 2010.

Recess Appointments Fill Vacant NLRB Seats
By Carrie Mount Roelle

Three of the five seats on the National Labor Relations Board (NLRB) have been vacant since January, 2008. Since that time, the two members of the NLRB, consisting of one Republican and one Democrat, have continued to issue decisions, but only on matters to which they could agree.

On March 27, 2010, President Obama filled two of the three Board vacancies with the recess appointments of Democratic nominations Craig Becker and Mark Pearce. The move allowed the White House to bypass the Senate Confirmation process, which promised to be extremely contentious, especially concerning the nomination of Becker. But, notably absent from the President’s appointments was Republican nominee Brian E. Hayes, which had been pending along with the nominations of Becker and Pearce.

Republicans and pro-business groups opposed both Pearce and Becker because of their anticipated pro-labor viewpoints. Prior to joining the NLRB, Becker was an associate general counsel to both the Service Employees International Union (SEIU) and AFL-CIO, where he outwardly supported the Employee Free Choice Act, or more commonly known, card check legislation. Prior to his appointment to the NLRB, Pearce was a partner at a New York law firm primarily representing unions and their members.

Due to the vacancies and leadership change in the White House, the NLRB has failed to issue any controversial decisions or reverse any Bush-era NLRB decisions. Now, with a 3-to-1 “pro-labor” majority, and with no particular timetable for action on Hayes’ nomination, expect the NLRB to make several employee-friendly rule changes and decisions, including reversal of the pro-employer decisions made during the Bush years. The good news is that the recess appointments will only last until Congress adjourns at the end of 2011, not the usual four year term for NLRB members. Buckle up and stay tuned!

Updated HIPAA Rules Affect Business Associates
By Ted Barron

The Department of Health & Human Services (HHS) recently updated the Health Insurance Portability & Accountability Act of 1996 (HIPAA). These changes are contained in the Health Information Technology for Economic and Clinical Health (HITECH) Act, which took effect on February 17, 2010, and affect all “business associates.” HHS began enforcing the rules on February 22.

Under HIPAA, a “business associate” is a person or entity that performs functions or provides services that involve the use or disclosure of patients’ individually identifiable personal health information (PHI) on behalf of a covered entity (which may include employers who offer self insured health plans to their employees). Business associates may include entities providing billing services claims processing, practice management, benefit management, utilization review, or quality assurance reviews. Other entities that are less obvious but could be also be deemed business associates include attorneys, accountants, consultants, paper destruction and recycling companies, medical coders or transcriptionists, software & information systems vendors and temporary workers. Under the updated rules, businesses are now directly subject to HIPAA’s requirements to keep PHI private and secure from breach. Failure to comply may subject businesses to civil and criminal penalties.

If you are a covered provider, you should have sent out revised Business Associate Agreements to all of your business associates by now. If you are a business associate to a covered provider, you likely have received, or will receive shortly, a revised agreement. You should pay particular attention to the Business Associate Agreement requirements for establishing policies and procedures that should include establishing safeguards and employee training to protect PHI and to reduce the risks of a security breach. The agreement should also contain the requirement for a business associate to provide prompt notice to a covered entity in the event a security breach is discovered, and may also include broad indemnification provisions requiring the business associate to pay for all costs associated with any such breach.

If you have any questions concerning the HITECH Act rules or Business Associate Agreements, please contact us.

The articles in The KDDK Advantage are considered legal information and should not be taken as legal advice.


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