Obama Stimulus Package Includes New Human Resources Requirements

From BLR Business and Legal Reports, February 17, 2009:

"On Tuesday, February 17, President Barack Obama signed an economic stimulus package that includes a COBRA subsidy for laid-off workers and other HR-related provisions.
Both chambers of Congress approved the American Recovery and Reinvestment Act late last week. The final version of the legislation includes a COBRA subsidy for laid-off workers. The subsidy will be 65 percent of the COBRA premium for a period of 9 months--employers (or health plans if they administer COBRA benefits) will receive a credit against payroll taxes to offset the subsidy. The premium subsidy will cover workers who were affected by involuntary terminations occurring between September 1, 2008, and January 1, 2010.
There is an income threshold as an additional condition on an individual's entitlement to the premium subsidy during any taxable year. Taxpayers with gross income that exceeds $145,000 will have to repay the entire amount of the premium subsidy. For taxpayers with gross income between $125,000 and $145,000, the amount of the premium subsidy that must be repaid is reduced proportionately.
The legislation requires that information on the COBRA subsidy be included in COBRA notices. Under the legislation, the Department of Labor will create a model notice within 30 days of enactment.
The legislation also includes other HR-related provisions. For example, it increases weekly unemployment benefits by $25. The legislation also provides an extension of the temporary emergency unemployment compensation program (which provides up to 33 weeks of extended benefits) through December 2009. Under the program, no benefits will be payable for any week beginning after May 31, 2010. The legislation also provides unemployment compensation to workers who leave an employer for "compelling family reasons," such as domestic violence, illness or disability of an immediate family member, and the need to accompany a spouse to a place from where it is impractical to commute and due to a change in location of the spouse's employment. The Department of Labor will define immediate family member."

The Relationship Between Staffing Firms and Staffing Buyers in Today's Economy

This post comes from a blog by Jon Osborne. It confirms why staffing buyers and staffing firms establish long term business relationships.

"At last, staffing buyers have staffing firms at their mercy. The economy is in shambles. Staffing firms are cutting internal staff and offices. Many such firms, mom & pop outfits especially, will go under in 2009. Competition for the now shrinking pie of staffing business is fierce. This is the best opportunity in years for staffing buyers to finally stick it to their staffing suppliers.
That thought is no doubt occurring to at least a few people. We all want to save money, especially in these times. Anyway, all's fair in love, war and staffing—right?
It would be fair, even practical and desirable, if this were a marketplace of innumerable ever-changing entities, like the stock market or commodities exchange. But staffing is about ongoing relationships—a long series of repeated transactions between people—and in a relationship you want to last, you need to preserve your partner.
A sizeable portion of the staffing community will be challenged for survival this year. Buyers may want to think, not just about doing business with their preferred suppliers, but about keeping those suppliers in business—not just out of soft and fuzzy feelings but because preferred suppliers are preferred, and also because the more suppliers there are, the more competitive and responsive the marketplace.
Buyers say they want staffing suppliers to be true business partners—not just vendors. This is the year—the greatest opportunity in a long time—to reach out and establish that partnership, not just with continued business deals, but by letting your suppliers know what is or isn't coming down the pipeline, so they can adjust internal resources as needed.
Take a genuine interest in the survival of your staffing suppliers in this troubled time, and you will win real personal loyalty, and establish a true partnership—an intangible asset that will pay tangible dividends."