By John Scorza, CCH Washington Staff Writer

As members of the 107th Congress of the United States take their oaths and prepare to "do the nation's business"--as they like to say--let's take a look back at the previous Congress, which seemed like it adjourned only days ago.

The 106th Congress may be remembered more for what it did not accomplish than for what it did. Several major issues were on the table when the new Congress convened in January 1999. But upon adjourning in December 2000, it had passed only a handful of narrow labor, employment and small business laws.

Several of the major items--including a minimum wage increase, pension and Social Security reform, patients' bill of rights, and small business tax cuts--are likely to be on the agenda again in 2001. But despite recent talk of bipartisanship, the new Congress could find itself even more deeply divided than last year.

Republicans in the 107th Congress will hold a 221-212 advantage in the House, with two independents. The Senate will be split evenly at 50-50, with Vice President-elect Dick Cheney casting the deciding vote in case of a tie. With such a slim majority, Republicans may find it difficult to enact any significant employment-related legislation over the next two years. Like the 106th Congress, the accomplishments of the next Congress could be scant.

Scant Record in 1999-2000

The Republican-controlled 106th Congress did not increase the minimum wage. The House in 2000 approved a proposal to increase the minimum wage from $5.15 to $6.15 over two years. But it was part of a Republican-backed small business tax cut bill opposed by the Clinton administration. Following a veto threat, Republican leaders in the Senate failed to get the necessary support for the measure and chose not to bring it to the floor for a vote.

Besides targeted tax cuts for small businesses, the ill-fated tax bill also contained significant pension reforms, along with a phased-in tax deduction for health insurance bought by self-employed workers. The tax bill would have allowed increased contributions to retirement plans and greater portability of funds between plans. It would have required increased disclosures from companies changing plans or reducing benefits. A 1999 tax-relief bill vetoed by President Clinton contained several similar pension provisions.

The 106th Congress failed to pass a bill granting new rights to workers with employer-sponsored health insurance. Congress considered legislation that would have increased patients' ability to sue their health plans and changed the way claims are appealed. Both the House and Senate passed bills on patients' rights, but the Senate bill was far more narrow in scope. Lawmakers representing the House and Senate could not reach a compromise on the competing measures.

Despite much debate, Congress failed to pass a bill to extend the life of the Social Security system. Dozens of measures competed for attention, including proposals to let workers invest a portion of their Social Security taxes in the stock markets. But as the 2000 elections neared, each side shied away from making significant changes to the system--the so-called "third rail" of American politics.

Congress failed to block the Occupational Safety and Health Administration's controversial ergonomics regulations, which are set to take effect next year. The ergonomics rule will require American businesses to educate their workers and adjust work areas in an effort to reduce on-the-job injuries. OSHA issued the final the rule in November 2000--before Congress could finalize a bill to block it.

Narrowly Tailored Legislation

In what may be its most significant employment-related accomplishment, Congress passed a law to raise the cap on the number of visas issued to foreign-born skilled workers. The high-tech industry lobbied hard for an increase in the fiscal 2000 cap of 115,000, which was reached in March. Under the new law, the cap on H-1B visas will be 195,000 in each of the next three years.

A related law passed by Congress raises the fees businesses pay to apply for H-1B visas from $500 to $1,000. Congress also enacted a law authorizing a four-year H-1C program to admit 500 foreign nurses per year to work in understaffed U.S. hospitals.

On the small business front, Congress corrected a measure from a previous tax bill that was damaging the sales of these companies. An installment sales provision in a 1999 law required the seller of an accrual-basis small business to pay taxes on the entire selling price, even if the seller hadn't actually received the money because it would be paid off in installments over a long period of time. Small business valuations had dropped about 20 percent on average, until Congress unanimously passed the correction bill before adjourning.

Also during that end-of-session rush, Congress passed bills extending the medical savings account pilot program for two more years and establishing a community renewal program that would provide for 40 urban and rural renewal communities within which taxpayers would be eligible for a capital gains tax exclusion on the sale of businesses or sales of business assets, along with other tax incentives. In addition, the proposal designates nine new empowerment zones and provides a $1,500 tax credit on the first $10,000 in business earnings.

Congress approved a measure designed to encourage companies to include hourly workers in their stock option programs. Under the law, an employee's profits from stock options need not be included in the calculation of the employee's overtime pay.

Another law enacted by the 106th Congress will require employers to grant leaves of absence to employees in the military reserves in order to serve as honor guards for funerals for veterans.

The 106th Congress also enacted a measure requiring the use of safer needles in the health care industry to protect workers from diseases contracted through accidental needle sticks.

Related items:

Congress Passes Budget with Small Business Provisions, Adjourns for Year

Ergonomics, Other Major Issues Remain Unresolved in Congress

Congress Adjourns without Agreement; Lame Duck Session Will Finish Work After Election

House Approves Tax Bill Despite Veto Warning

IRS's New Accounting Rules Don't Add Up