The Washington Report

March 23, 2022

Note to Subscribers

While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Executive/Legislative

President Expected to Release 2023 Fiscal Budget Request to Congress on March 28
President Biden is scheduled to release his 2023 fiscal budget request to Congress on March 28, 2022. Passage of the complete budget is unlikely, as proposals are typically intended as a framework for legislative discussion.

House Approves CROWN Act; Prohibits Discrimination Based Upon Hair Texture or Style
On March 18, 2022, the House approved the Creating a Respectful and Open World for Natural Hair Act of 2021 (CROWN Act – H.R. 2116) with a 235–189 vote. The bill prohibits discrimination based on a person's hair texture or hairstyle if that style or texture is commonly associated with a particular race or national origin. Specifically, the bill prohibits this type of discrimination against those participating in federally assisted programs, housing programs, public accommodations, and employment. The bill moves to the Senate for consideration, where passage is uncertain.

The full text of H.R. 2116 is available here.

House Passes FAIR Act; Bans Mandatory Arbitration Agreements
On March 17, 2022, the House passed with a 222–209 vote the Forced Arbitration Injustice Repeal Act of 2022 (FAIR Act – H.R. 963). The bill prohibits a pre-dispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust, or civil rights dispute. The bill moves to the Senate where passage is uncertain.

The full text of H.R. 963 is available here.

President Signs CAA 2022 Into Law; Includes Telehealth and Health Savings Account Relief
On March 15, 2022, President Biden signed into law the Consolidated Appropriations Act of 2022 (CAA 2022 - H.R. 2471 – P.L. 117-103). Among a number of provisions, the $1.5 trillion ombnibus spending package also addresses telehealth plans and health savings accounts.

For additional information, please refer to the Aon bulletin, CAA 2022 Temporarily Revives Telehealth Relief for HDHPs While Creating Coverage Gap for 2022, found in the Publications section of the newsletter.

The full text of the legislation is available here.

Health

IRS Publishes Notice on Methodology for Calculating Qualifying Payment Amount in 2022; No Surprises Act
On March 18, 2022, the Internal Revenue Service (IRS) published Notice 2022-11, which provides an indexing factor for the qualifying payment amount for items and services furnished in 2022 for purposes of Sections 9816 and 9817 of the Internal Revenue Code, as added by the No Surprises Act, in the case of a group health plan or group or individual health insurance issuer that does not have sufficient information as of January 31, 2019, to calculate the median of the contracted rates or for new items and services.

IRS Notice 2022-11 is available here.

Other HR/Employment

DOL Announces Proposed Rule Modifying Discrimination Procedures in Federal Contracting
On March 21, 2022, the Department of Labor (DOL) announced a proposed modification to a final rule that aims to create a “streamlined, efficient, and flexible process allowing the Department to use its resources strategically to remove barriers to equal employment opportunity.” The proposed rulemaking by the DOL’s Office of Federal Contract Compliance Programs (OFCCP) seeks to revise the final rule, Nondiscrimination Obligations of Federal Contractors and Subcontractors: Procedures to Resolve Potential Employment Discrimination, in effect since December 10, 2020.

The 2020 rule codified two formal notices, the Predetermination Notice and the Notice of Violation, that the OFCCP provides to federal contractors when it finds potential violations. According to the DOL, “Under the proposal, OFCCP would rescind the rigid evidentiary standards for providing employers with notice of discrimination concerns. It would also retain the required use of the Predetermination Notice and the Notice of Violation, with modified procedures that allow the agency to consider the facts and circumstances of each case.” Comments on the proposed rule are due by April 21, 2022.

The news release is available here.

The proposed rule is available here.

Aon Publications

CAA 2022 Temporarily Revives Telehealth Relief for HDHPs While Creating Coverage Gap for 2022
The Consolidated Appropriations Act 2022 (CAA 2022 - H.R. 2471) signed into law by President Biden on March 15, 2022, temporarily revives the provision allowing a high-deductible health plan (HDHP) to offer access to telehealth coverage and other remote care without adversely impacting an HDHP participant’s ability to make or receive contributions to a health savings account. This relief provision is effective on a prospective basis starting April 1, 2022, and ending December 31, 2022.

The Aon bulletin is available here.

Department of Labor Issues Guidance on Prohibited Retaliation Under the FMLA
The Department of Labor recently published Field Assistance Bulletin (FAB) 2022-2, which provides information about worker protections from interference and retaliation under the Fair Labor Standards Act and the Family and Medical Leave Act (FMLA). This Aon bulletin covers the FMLA guidance in FAB 2022-2.