Puerto Rico - INSIDER highlights
The June 2001 edition of Watson Wyatt's "Insider" is now online.
There are two articles this month which may be of interest to Puerto Rico employers.
(1) The article entitled "Court Ruling Threatens Employer - Sponsored Retiree Medical Benefits" will be of concern to companies which sponsor post-retirement medical plans. Essentially, a district court in the Third Circuit has concluded that a post-retirement medical plan which reduces benefits after age 65 violates the Age Discrimination in Employment Act (ADEA). Thus, in essence, plans which reduce benefits at age 65 because of Medicare would be considered to discriminate by age under the ADEA. While this court's decision only applies in the Third Circuit (which doesn't cover Puerto Rico, but does cover the U.S. Virgin Islands), other Circuits may begin to make similar determinations in which case post-retirement medical plans would need to be re-designed.
Read the full story.
(2) The article entitled "FMLA Concerns Prompt New Legislation" discusses some of the difficulties employers are facing in attempting to comply with the Department of Labor's implementing regulations for the Family and Medical Leave Act. The article also describes proposed legislation designed to address these concerns.
Read the full story.
Please let us know if you have questions or comments.
Sincerely,
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