The Obama Administration has undertaken several initiatives to amend current labor regulations and standards through executive order, formal rulemaking and interpretive guidance. Among the more high-profile actions, President Barack Obama issued an executive order that would effectively blacklist federal contractors that have violated labor-related laws in the previous three years; the NLRB is set to finalize a regulation to speed up the union election process; and the DOL is in the process of revising the overtime regulations in the Fair Labor Standards Act.
Manufacturers cited rising health insurance costs as their top challenge, so we asked about their expectations for costs increases and anticipated plan changes.
- On a scale from 1 to 10, how concerned are you about DOL’s plan to change overtime regulations later this year? (1 = not concerned at all; 10 = extremely concerned)
Average score = 6.7
Would changes in the overtime rules make you more or less likely to hire in the coming 12 months?
- More likely to hire in the coming 12 months – 1.8%
- It would not change my hiring plans in the coming 12 months – 50.0%
- Less likely to hire in the coming 12 months – 25.0%
- Uncertain – 23.2%
- On a scale from 1 to 10, how concerned are you about the President’s executive orders potentially de-barring businesses from federal contracts for even a minor violation of labor law? (1 = not concerned at all; 10 = extremely concerned)
Average score = 6.2
- Given the executive orders released over the past year, would you be more or less likely to bid on a federal contract in the coming 12 months?
- More likely to bid on federal contracts in the coming 12 months – 0.4%
- It would not change my plans to bid on federal contracts in the coming 12 months – 22.2%
- Less likely to bid on federal contracts in the coming 12 months – 24.9%
- I do not bid on federal contracts currently and have no plans to start – 45.3%
- Uncertain – 7.1%
- What do you consider to be the biggest obstacles to bidding on a federal contract? (Check all that apply.)
- Finding out about available contracts – 29.4%
- Process takes too long – 41.3%
- Rules and regulations – 75.6%
- There are no obstacles – 9.0%
- On a scale from 1 to 10, how concerned are you about OSHA’s proposed rule to publicly disclose raw injury and illness data for companies with more than 250 employees? (1 = not concerned at all; 10 = extremely concerned)
Average score = 6.6
Health Insurance Costs
- What are your expectations for health insurance cost increases for 2015?
- Increase of 15.0 percent or more – 17.3%
- Increase of 10.0 to 14.9 percent – 32.9%
- Increase of 5.0 to 9.9 percent – 35.1%
- Increase of up to 4.9 percent – 11.1%
- No change or a slight decrease – 2.2%
- Decrease of up to 4.9 percent – 0.4%
- Decrease of 5.0 percent or more – none
- Uncertain – 0.9%
Average expected increase in health insurance costs for 2015 = 9.6%
- Assuming you offer health insurance to your employees, do you expect to make any changes for the next plan year? Please check all that apply.
- Keep offering same plan – 36.7%
- Increase employee share of premiums – 54.4%
- Increase copays and deductibles – 55.8%
- Narrow provider networks – 6.6%
- Stop providing coverage – 1.8%