On June 28, 2018, Massachusetts Governor Charlie Baker executed legislation that makes sweeping changes to Massachusetts law. As part of this so-called “Grand Bargain” legislation (the “Act”), Massachusetts will incrementally raise the minimum wage from $11 to $15 an hour and eliminate the need for most retail employees to receive premium pay for work performed on Sundays and holidays. The new law also creates one of the most generous paid family and medical leave programs in the country. Massachusetts now joins California, New York and Washington, D.C. as the only states to have both a $15 minimum wage and mandatory paid family and medical leave.
SCOTUS Upholds Travel Restrictions
On June 26, 2018, the Supreme Court of the United States upheld the travel ban implemented by the Trump Administration in September 2017. This travel ban was the third permutation after two other travel bans failed to withstand lower court scrutiny. Unsurprisingly, the travel ban was upheld along the party lines of the Supreme Court Justices.
Revised Seattle Paid Sick & Safe Time Rules Give Employers Limited Time to Comply
Seattle, Washington’s Office of Labor Standards (OLS) revised its rules concerning the Paid Sick and Safe Time (PSST) Ordinance. The rules come about a year-and-a-half after the Ordinance was amended to better align with the state PSST law, which took effect January 1, 2018. Unsurprisingly, in many instances the revised rules incorporate state law standards. Although many revisions are merely linguistic changes that do not substantively alter existing rules, there are notable changes and deletions we will highlight, along with a new non-PSST rule that will affect leave management.
Supreme Court Holds Stock Options Are Not Taxable under the RRTA
On June 21, 2018, the Supreme Court held in Wisconsin Central Ltd. v. United States that railroad stock options are not taxable compensation under the Railroad Retirement Tax Act of 1937 (the “RRTA”). This ruling represents a significant win for railroad companies.
Mid-Year Michigan Legislative Update
The Michigan Legislature has been busy during the first six months of 2018, addressing several issues that will impact employers across the state. Perhaps most significantly, the Michigan Legislature may send the issue of mandatory paid sick time to voters on their November ballot following the submission of over 380,000 signatures in support of the measure. Also, after a contentious ballot initiative process that made its way to the state Supreme Court, the Michigan Legislature repealed the state’s prevailing wage law, ensuring that future public works projects will no longer need to comply with prevailing wage requirements. Finally, the Michigan Legislature amended the state’s Wage and Fringe Benefit Act to clarify compliance for employers that pay employees on a monthly basis. Additional details on these developments can be found below.
Association Health Plans: How Do You Solve a Problem Like a MEWA?
On June 19, 2018, the Department of Labor issued its highly anticipated final rule expanding the availability of association health plans (“AHPs”). The core purpose of an AHP is to allow small employers to band together and obtain coverage in the large group insurance market, which generally imposes fewer coverage requirements. For example, unlike the small group insurance market, policies issued in the large group insurance market are not required to cover “essential health benefits.”
Dear Littler: How Do Employers Use Big Data, And What Are The Risks?
Dear Littler: We are revamping our online job application. I asked our HR director if we should eliminate the question asking about an applicant’s hobbies. Not only does she think we should keep the question, but she says we need to gather more “big data” about our candidates. What the heck is “big data?” Are there any risks with relying on “extra” information about candidates?
The District of Columbia Eliminates the “Tip Credit”
On Tuesday, June 19, 2018, residents of the District Columbia voted to approve Initiative 77, which will incrementally phase out the “tip credit” that many employers use as an offset towards their minimum wage obligations to employees who also earn tips in connection with their work. Presently, the minimum wage in the District of Columbia is $12.50 per hour.1 However, establishments like restaurants, where tipping is common, only have to pay tipped employees $3.33 per hour2—provided that the employees’ direct wages and total tips add up to $12.50 an hour by the end of the week. If the food service worker does not earn enough in tips to reach the $12.50 per hour threshold, then the restaurant owner has to make up the difference. Initiative 77 ends this practice.
Investigations in the #MeToo Environment: The Importance of Planning Before A Harassment Complaint
Jennifer Youpa, a shareholder in Littler’s Dallas office, and Kevin O’Neill, Senior Director of Littler’s Learning Group, discuss the importance of harassment complaint investigations in the #MeToo climate. As Jennifer and Kevin explain, investigatory responses can no longer be “one size fits all,” especially with the possibility of the viral disclosure of allegations or incidents through social media. In this podcast, Jennifer and Kevin reveal strategies and trends they have seen as they conduct training for employers on sexual harassment and related issues. They address the need for employers to plan various investigatory protocols well ahead of any complaints and how organizations can assess whether an external investigator may be beneficial.
Enforcing Civility: The Board’s New Boeing Standard Influences a Range of Policies Promoting Positive Workplaces for Employers and Employees
In The Boeing Co., 365 NLRB No. 154 (2017), the Board approved the maintenance of rules promoting “harmonious interactions and relationships,” and requiring civility in the workplace, as categorically lawful. “To the extent the Board in past cases has held that it violates the Act to maintain rules requiring employees to foster ‘harmonious interactions and relationships’ or to maintain basic standards of civility in the workplace, those cases are hereby overruled.”
Puerto Rico Department of the Treasury Issues Guidance on the Federal Employee Retention Benefit for Certain Employers Affected by Hurricanes Irma and Maria
On September 29, 2018, the Disaster Tax Relief and Airport Extension Act of 2017, as amended (the “Act”), was adopted to, among other goals, provide tax relief to those affected by Hurricanes Irma and Maria. The Act includes an employee retention benefit (the “Benefit”) available to eligible employers.
California’s Pay History Ban: Common Questions; Practical Suggestions
In this podcast, Bruce Sarchet and Corinn Jackson, both with Littler’s Workplace Policy Institute, consider the compliance twists and turns of California’s salary history ban, which took effect on January 1, 2018. They look at if and how employers can consider salary history when making employment and salary decisions, even when that pay history has been voluntarily disclosed by applicants. Bruce and Corinn also discuss how the law impacts employers that do not maintain physical locations in the Golden State, and how employers may need to adjust their application and hiring protocols to comply with the new restrictions.
The Future Is Now: Workforce Opportunities And The Coming TIDE
The rise of artificial intelligence (AI) and robotics will generate unprecedented opportunities and challenges for employers and workers. The accelerating pace of automation will likely lead to productivity increases on a scale not seen since the Industrial Revolution, while displacing tens of millions of American workers from their current occupations. Too often, news reports dramatically focus on AI and robots as job killers. Unfortunately, the debate over whether jobs eliminated will outnumber jobs created ignores two related and no less important questions:
New Arizona Laws Address Data Breaches and Hiring Ex-Offenders
Arizona Governor Doug Ducey recently signed HB 2154 and HB 2311 into law, both taking effect on August 3, 2018. HB 2154 provides employers with additional guidance and updated notice procedures in the event of a data security system breach, and HB 2311 bolsters limited liability protections for employers when hiring employees or contracting with independent contractors previously convicted of criminal offenses.
Pennsylvania Department of Labor and Industry Proposes Amendments to the State’s White Collar Exemption Regulations
The Pennsylvania Department of Labor and Industry (DLI) responded to Governor Tom Wolf’s call to modernize Pennsylvania’s outdated overtime rules for “white collar” employees. On June 12, 2018, the DLI submitted to the Pennsylvania Independent Regulatory Review Commission (IRRC) a proposed rulemaking package that would update the Executive, Administrative and Professional (EAP) exemptions to the minimum wage and overtime requirements of the Pennsylvania Minimum Wage Act (PMWA).