Eap Requirements for Employers

In theory, a single-vendor model is ideal for global EAPs in terms of extensive geographic coverage, easy communication, centralized account management, and standard data reporting. The question is whether international EAP providers can offer a program on a global scale that meets the complex requirements of international employers. Some HR professionals are skeptical of a single provider`s ability to handle complex contractual and legal issues across international borders and have deep knowledge of local providers, work cultures, and approaches to mental health care. HR professionals who are considering whether an EAP is right for their business can start by learning the basics – what EAPs offer, how employers sign contracts with EAPs, the essential requirements that each EAP should follow, and the ways in which employees access EAP services. Answer: There is no federal law prohibiting an employer from requiring an employee to benefit from an employee support program. However, when an employee is asked to use an EAP, it may involve the Americans with Disability Act. Therefore, employers should exercise caution when requiring an employee to use an EAP and should ensure that any requirement that an employee use an EAP is “work-related and consistent with the needs of the business.” While some large organizations offer EAP services in-house with their own in-house teams of consultants and employees, most employers outsource EAP services to experienced suppliers who can handle compliance and reporting issues, in addition to comprehensive consulting and referral services. EAPs are the most outsourced HR function, with 62% of employers reporting outsourcing their EAPs. Employers have a legitimate interest in employees being able to reach or approach their full potential. EAPs are valuable resources that can help employees manage issues that affect their ability to realize this potential. Marital and family problems, conflicts between employees and managers, depression, substance abuse, work-related stress, legal and financial problems, and child and elder care needs are just some of the issues that affect employee well-being. These distractions can affect productivity and drive up costs for businesses.

The health care system cannot always cope with these types of problems, especially those that are not related to health, such as: the need for financial advice or help for the elderly. EAPs are cost-effective tools to mitigate these risks. EAPs can help employers reduce absenteeism, employee claims, health care costs, accidents and grievances. In addition, they can solve safety issues, improve employee productivity and engagement, and reduce costs associated with staff turnover. According to shrm`s 2019 employee benefits research report, 79% of employers surveyed offered an EAP. For small employers, obtaining EAP services through an EAP consortium can be financially beneficial for small businesses. Pricing is based on the services available through the consortium, but the total number of employees covered by the consortium reduces the cost per employee. Employers have sometimes asked employees to submit to services that provide EAP benefits, and employers` mandatory EAP recommendations must be well understood before taking action. Mandatory dismissals can certainly be justified in situations where job performance is significantly impaired due to drug abuse, threats of violence or suicide. SHRM reports that recent case law has shown that formal EAP referrals have imposed legal burdens on employers under the Americans with Disabilities Act (ADA). The ADA prohibits employers from discriminating against a qualified person on the basis of a disability.

A person is a “qualified person with a disability” as long as he or she can perform the essential functions of the work with (or without) adequate accommodation. The ADA protects both people with disabilities and those who are treated as if they had a disability. In 2000, the EEOC noted in an armchair discussion letter that requiring an employee to use an EAP may violate the prohibition on treating an employee as if they had a disability. The EEOC noted that while “it is unlikely that a simple reference to an EAP alone” is sufficient to demonstrate that the employer treated the employee as disabled, “a reference to an EAP combined with other relevant evidence could lead to the conclusion that the employer considered the person to be a person with a [disability].” Letter, Christopher J. Kuczynski, Deputy Legal Counsel, ADA Policy Division, Equal Employment Opportunity Commission, (19 July 2000). An Employee Support Program (EAP) is a benefit that allows employees to get free counselling sessions to alleviate stress in their lives, whether it`s dealing with a difficult colleague or caring for their children at home. These sessions are managed by a third party, so employees who use the service remain anonymous while employers receive usage statistics. Smaller employers may have difficulty convincing employees that the EAP is confidential.

This is because the employer usually receives an EAP report that includes demographic data such as the number of employees who use services, the types of services they use (financial, legal, mental health), their status and the employment level of employees who use services (employees, Manager, Executive). You can promote employee trust in your EAP by emphasizing that all use is anonymous – not only by saying the word anonymous in a presentation, but also by explaining how the process works. When employees know step by step what to expect when they call the EAP, it`s harder to imagine an HR program that invades their privacy. And while there are no laws that prevent employers from imposing mandatory contact with an EAP after an incident, the voluntary participation of employees prevents them from feeling separated or viewing EAP participation as punishment. The Employee Assistance Trade Association (EASNA), the professional organization of EAPs, suggests that for every dollar employers spend on an EAP, the return on investment (ROI) is $3, making an EAP a smart investment for all businesses, large and small. The written EAP guidelines are useful for two things. First, it shows your employees what services are offered so that they can use the program. Second, it helps employers remain consistent in how they authorize and manage EAP benefits for their employees. Your EAP policy should not be confusing to employees, but simply written so that everyone can understand what the benefit is. We agree with the position of the Society for Human Resources Management (SHRM) on what the APS requires of all EAP programs.

Q: Are EA programs in the U.S. subject to Medicare`s secondary payer reporting requirements? Answer: Medicare`s secondary payer reporting rules are required under Section 111 of the Medicare Act, Medicaid and SCHIP Extension Act of 2007. Under these rules, insurers and third-party administrators, as well as plan administrators or trustees of self-insured and self-directed group health plans, are required to collect information from their plan sponsors and members who assist the Centers for Medicare and Medicaid Services (CMS) in identifying situations where the Medicare Group Health Plan is primary and communicating that information to CMS. on a quarterly basis. EAPs that fall within the definition of “group health plan” for the purposes of HIPAA, COBRA, or ERISA (see FAQ above) are also subject to Medicare`s secondary payer reporting requirements. In general, these requirements can be considered a compliance issue for which the plan sponsor (employer) is responsible. Most companies submit reports using the “Review Template” published by CMS. [NOTE: The above information is for general information purposes only. This is not legal advice and should not be construed as legal advice.] Question: Are the EA program records the same as the medical and mental health records or are they different? What are the laws for keeping EA records? Answer: Employee Assistance (EA) records are generally not the same as medical and mental health records.

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