BHSHRM July Newsletter

President's Report

As July settles into the Black Hills, summer is in full swing. Between vacations, community events, and the busy pace of the season, it can feel like the weeks are flying by. While summer often looks a little different for every organization, one thing remains the same: HR professionals continue to adapt, problem-solve, and support their employees through whatever each day brings.

Reaching the halfway point of the year always encourages me to pause and reflect. It's easy to move from one project to the next without taking time to recognize everything that's already been accomplished. Whether you've spent the year recruiting, navigating employee relations, implementing new initiatives, or simply helping employees through life's challenges, your work makes a meaningful difference.

As HR professionals, we're often the people others rely on for guidance and support. We encourage employees to prioritize their well-being, take time to recharge, and continue learning, but we don't always extend that same grace to ourselves. A mid-year reset doesn't have to involve major changes. Sometimes it's simply taking a moment to celebrate your successes, revisit your goals, or make time for your own professional growth.

One of the things I value most about BH SHRM is the opportunity to connect with others who truly understand both the challenges and the rewards of working in HR. Thank you for being part of this community and for the work you do every day to make your organizations stronger.

As we look ahead to the second half of the year, I hope you'll continue to stay connected with BH SHRM through our upcoming programs, networking opportunities, and conversations with fellow members. Thank you for everything you do to support your organizations and the people they serve. Wishing you a safe, enjoyable, and refreshing rest of your summer.

Ara Baumstarck
President, Black Hills SHRM

Welcome New Members

Amanda Spitzer | Payroll & Benefits Specialist at the City of Box Elder

Chapter Meeting

Mark you calendars for upcoming meetings:

July 7, 14, 21, 28	workshop sessions	Crucial Conversations: Mastering Dialog	Speaker: Tony Pannone
August 4	workshop sessions	Crucial Conversations: Mastering Dialog	Speaker: Tony Pannone
September 22	11:30 am- 1:00 pm	Compensation Panel	Speaker: Jason Byars

Legislative Update

Guidance for Employers on Trump Accounts and ERISA Implications – source SHRM

The U.S. Department of Labor recently issued guidance clarifying that employer contributions to Trump Accounts will generally not be subject to Title I of ERISA, provided employers maintain a limited role and meet certain conditions. This guidance was released shortly before the accounts officially launched on July 4 and is intended to give employers greater clarity as they consider whether to offer Trump Account contribution programs.

Trump Accounts, also known as Section 530A accounts, are tax-advantaged accounts created to encourage early wealth building for eligible children born in the U.S. between 2025 and 2028. The accounts include a $1,000 pilot contribution from the U.S. Treasury, and families or others may contribute up to $5,000 per year in after-tax dollars until the year before the child turns 18. Employers may contribute up to $2,500 per year to an employee’s or dependent’s Trump Account, which counts toward the annual contribution limit. The DOL clarified that accounts established for employees’ dependents generally do not qualify as employee pension benefit plans under ERISA because the retirement benefit belongs to the child, not the employee.

DOJ Opinion Calls Disparate Impact Theory Unconstitutional – source SHRM

The U.S. Department of Justice (DOJ) has issued a legal opinion challenging an established doctrine in employment discrimination law, arguing that the federal government’s longstanding approach to disparate impact liability under Title VII of the Civil Rights Act of 1964 may exceed both statutory and constitutional limits.

The June 9 opinion from the DOJ’s Office of Legal Counsel (OLC) does not change Title VII itself, nor does it eliminate disparate impact as a private right of action. Plaintiffs may still bring such claims, and courts remain bound by existing U.S. Supreme Court precedent and federal statutes.

According to the opinion, businesses can use hiring practices that are generally related to job performance—such as aptitude tests, knowledge-based tests, criminal-background checks, and SAT scores—without fear of violating Title VII simply because such practices may result in different outcomes for different demographic groups. To justify using such tools, employers only need to show that the practice is reasonable, useful, or helps serve a valid business purpose.

The opinion also states that people bringing a disparate-impact claim must meet two requirements. They must show that the specific hiring practice directly caused the unequal outcomes they are challenging. And they must identify another approach that would be equally effective for employers but would result in fewer unequal outcomes. This means plaintiffs must prove that the employer’s method specifically caused the unequal outcomes—and offer a workable, fairer alternative. https://www.justice.gov/opa/pr/justice-department-concludes-eeoc-disparate-impact-guidelines-violate-constitution

House Passes Bill to Speed Up First Union Contracts – source SHRM

The U.S. House of Representatives has passed the Faster Labor Contracts Act, a bill that would create a more defined timeline for first-contract negotiations between newly formed unions and employers. The legislation is intended to address delays that can occur after employees vote to unionize but before a first collective bargaining agreement is reached.

· Bargaining would need to begin within 10 days after union certification.

· If no agreement is reached within 90 days, either side could request federal mediation.

· If mediation fails after 30 additional days, the dispute would move to binding arbitration.

· A first contract imposed through arbitration would remain in effect for two years.

Supporters of the bill argue that it would help newly unionized workers secure the wages, benefits, and workplace protections they voted to pursue through union representation. They contend that prolonged first-contract negotiations can weaken support for a new union and reduce employees’ bargaining power. Opponents, including some business groups, argue that binding arbitration could give government-appointed arbitrators too much authority over private labor agreements and could result in contract terms that neither workers nor employers proposed or approved. The bill’s passage in the House is a significant step, but its future in the Senate remains uncertain. The broader debate centers on how to balance timely first-contract negotiations with the traditional role of voluntary bargaining between employers and unions.

Rounding (in Timekeeping) May Face More Scrutiny as Technology Improves – source SHRM

In FLSA 2026-8, the DOL was asked if certain pre-shift activities by hospital employees were compensable work and, if so, whether the hospital’s practice of rounding employees’ clock-in time to their scheduled shift start time was permissible.

The DOL declined to conclude the time was or wasn’t de minimis, given the large number of employees involved. “Employers, including the hospital at issue here, should nonetheless be particularly careful about how and to what extent they apply the de minimis doctrine,” the DOL said. “Particularly given the technological advances that have made it possible for employers to track employees’ work time with increasing precision, employers should expect exacting scrutiny of de minimis claims where employees perform off-the-clock work with any degree of regularity.”

The opinion letter emphasized that “timekeeping practices that used to be commonplace, such as rounding, will face increasing scrutiny as technological advances enable increasingly precise time tracking,” said Robert Pritchard, an attorney with Littler in Pittsburgh.

The DOL’s regulations provide that employers may practice time rounding, but only under specific conditions. Employers may round employee time to the nearest fraction of an hour, such as the nearest five or six minutes, or quarter hour.

“This practice, however, is only acceptable if it ‘will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked,’ ” the opinion letter added, quoting the regulations. “This means a rounding practice must both be neutral on its face and average out over time so it does not consistently favor the employer.”

Patient-Centered Outcome Research Institute (PCORI) Fee (self-funded plans only) - source Wellmark

PCORI is an independent, nonprofit organization that funds evidence-based research to help patients, health care providers and clinicians make better health care decisions. A fee on health insurance issuers and sponsors of self-funded employer plans will go toward the Comparative Effectiveness Research Trust Fund, which was established under the ACA to help fund PCORI’s efforts.

This fee is paid and reported on IRS Form 720 (Quarterly Federal Excise Tax Return) by July 31, annually. Self-funded employer plans will need to complete Form 720 and submit fees directly to the IRS. Insurance companies are required to pay the fee for fully insured products.

Dollar amount is per policy and plan years ending dates per the IRS website.

Certification Preparation Classes COMING SOON!

Great news!! We have enough participants to hold our certification study group this fall! So, if you’ve been on the fence, now is the time to say “I’m in!” The group meets weekly for 12 weeks beginning the Wednesday after Labor Day (from 5:30 – 7:30) to review the SHRM Learning System materials and help you prepare for your certification exam. The cost for the SHRM Learning System materials would be $615 per participant which is a significant discount compared to purchasing on your own through SHRM ($1,055 - $1,180 regular price).

Please e-mail Tye Kuyper ([email protected]) for more information or to request to be added to the roster! Deadline to join the session is August 1^st.

The study group is a great way to learn the material and also provides an excellent networking opportunity.