HIRE Act provides tax incentives for hiring the unemployed
The Hiring Incentives to Restore Employment Act (“Hire Act”) is a recently enacted federal law which provides certain tax benefits to those employers who hire the unemployed. It may be of interest to those engaged in temporary staffing, as well as to clients of placement firms.
The first tax credit applies to employers who hire the unemployed at some point between February 3, 2010 and January 1, 2011. The credit is for an amount equal to the employer’s portion of the social security tax.
The employee must complete and file with you an IRS form (W-11) in which he or she states, under penalties of perjury, that the employee has worked less than 40 hours in the most recent 60 day period. The employee cannot be hired to replace another employee who was terminated without cause, and cannot be related to anyone owning at least a 50% interest in the employer.
If the employer keeps the employee on the payroll for 52 consecutive weeks, and the employee earns in the second 26 weeks of the period, at least 80% of the earnings for the first 26 weeks, then the employer becomes eligible for a $1,000 tax credit in 2011.
Olsten to Pay $75,000 to Settle Disability Discrimination Suit
The Equal Employment Opportunity Commission has announced that Olsten Staffing Services has agreed to settle an Americans With Disabilities Act lawsuit filed against it by the EEOC, for $75,000.
The suit stemmed from Olsten’s refusal to refer a deaf job applicant as a production worker. The EEOC found that Olsten had falsely attributed the decision that deafness would disqualify the applicant to its client. In fact, the client stated that many of its production line employees wore ear protection that prevented them from hearing while on the line, because the noise was so loud.
The EEOC Regional Attorney noted that “This case is a reminder that employment agencies, no less than any other employer, have important obligations under the ADA. Decisions made by agencies concerning whether to refer a job applicant must be based on qualifications, period – not on the basis of a disability.”
Administaff to Pay $115,000 to Settle Religious Harassment Claims
The EEOC has also announced that Professional Employer Organization Administaff, Inc. has agreed to pay $115,000 to settle a claim that two Jewish brothers who worked at one of its clients were harassed based upon their religion. Allegedly, the brothers suffered anti-Semitic slurs such as “dirty Jew,” from managers. One of the brothers said his vehicle was defaced with a swastika symbol, and he was thrown into a trash bin.
Administaff denied liability, and stated that it investigated the matter as soon as it heard of it, and terminated the relationship with its client. Administaff said it settled the case for “far less” than what it would have cost to litigate it.
Those with questions or comments please contact NAPS.