This is a reminder that, effective December 31, 2013, the minimum wage in New York will increase to $8.00 per hour. On December 31, 2014, it will increase to $8.75 per hour; on December 31, 2015, it will increase to $9.00 per hour, or the federal rate if greater than the state rate.
Bill Prohibiting Pre-Employment Credit Checks Introduced in Senate
Sen. Elizabeth Warren (D-MA) has introduced a bill that would prohibit employers from asking prospective employees about their credit histories or obtaining such information through a consumer or credit report. In addition, the Equal Employment for All Act (S. 1837) would amend the Fair Credit Reporting Act (FCRA) to prevent employers from discriminating against employees on the basis of their credit worthiness. The bill would make an exception for jobs that require a national security clearance or where credit information is otherwise required by law. Notably, the bill does not include exceptions for positions in the financial services or banking industries.
New York City Paid Sick Time Law Receives Economic Green Light
The New York City Council passed the Earned Sick Time Act (“the Act”) on May 8, 2013. The Act requires that New York City businesses provide all employees with protected sick leave for their own or a family member’s illness, but its effective date was contingent on the performance of New York City’s economy. City Council member Gale Brewer, the sponsor of the Act, has announced that, based on economic indicators, the Act will go into effect on April 1, 2014.
U.S. Supreme Court Holds that ERISA Plan Can Enforce Contractual Limitations Provision to Bar Benefit Claim Lawsuit
The U.S. Supreme Court in Heimeshoff v. Hartford Life & Accident Insurance Co. et al. resolved a split among the circuits when it held that a contractual limitations clause in an ERISA-governed long-term disability benefits plan is enforceable even where it causes the limitations period on a claim for benefits to commence before the participant’s cause of action accrues. In this case, the plan-based limitations period in which to file a disability claim lawsuit under ERISA Section 502(a)(1)(B) started to run when “proof of loss” was due under the plan, even though the participant’s cause of action did not accrue, and a lawsuit could not be filed, until the plan’s internal claim review process had been exhausted. Citing ERISA’s important policy of enforcing plan terms as written, the Court held that the clause was enforceable.
EEOC Releases its Performance and Accountability Report for FY 2013
After being delayed a month due to a 16-day government shutdown, the Equal Employment Opportunity Commission has released its much-anticipated Performance and Accountability Report (PAR) for Fiscal Year 2013. The PAR summarizes the agency’s assessment of its program and financial performance for the fiscal year, including the number of private sector charges received, federal lawsuits filed, and monetary awards recovered. A more detailed breakdown of the EEOC’s charge statistics will be released in the beginning of 2014.
Pennsylvania Supreme Court Changes Labor Market Survey Rules
The Pennsylvania Supreme Court recently issued a decision that may significantly change the ability of an employer to modify or suspend Pennsylvania Workers’ Compensation benefits based on a Labor Market Survey. In Phoenixville Hospital v. WCAB (Shoap), the court ruled that evidence that a claimant applied for, but was ultimately not hired for, positions identified in the Labor Market Survey is allowable to show the positions are “not available” under Section 306 (b)(2) of the Pennsylvania Workers Compensation Act (the Act). Thus, the claimant’s application for the jobs and the availability of the positions is now an issue that must be addressed.
‘Tis the Season – For Potential Employer Liability
The holiday season is upon us – a time when many companies (and/or managers) may be organizing holiday parties, decorating offices, throwing off-site parties or holding secret gift exchanges among coworkers. Many employers, however, do not realize the risks involved with celebrating the holidays and its festivities, including the potential for inadvertently involving religion or culture-specific activities and discussions in company-sponsored events.
Conquering the FMLA Medical Certification Process: A Recap of our Webinar
Thanks to those who attended my webinar last week with Matt Morris on “Conquering the FMLA Medical Certification Process: Best Practices for Employers.” If you missed the program, you can access the webinar and materials here.
Federal Court Potentially Loosens Rules for Arbitrating Wage Claims in Massachusetts
In a recent decision, Judge Young of the U.S. District Court for the District of Massachusetts held that an arbitration agreement does not need to specifically reference the Massachusetts Payment of Wages Law in order for claims under that statute to be subject to arbitration. Specifically, the district court held that any such requirement would be preempted by the Federal Arbitration Act (FAA).
Senate Panel Considers Wage and Hour Nominee
While the federal government closed on Tuesday due to inclement weather, the Senate Committee on Health, Education, Labor and Pensions (HELP) forged ahead with its hearing to consider the nomination of David Weil to be the next DOL Wage and Hour Division (WHD) Administrator. This position – which has been vacant for several years – is an important one. The WHD will be the sub-agency charged with enforcing the recently-issued “companionship” rule extending Fair Labor Standards Act (FLSA) protections to home healthcare workers, as well as the DOL’s many worker misclassification initiatives.
NLRB Dismisses Appeal, Opening Door to Re-Issued Election Rule
On Monday, the NLRB voluntarily dismissed its appeal in Chamber Of Commerce v. NLRB, the case in which the U.S. District Court for the District of Columbia found the Board’s expedited representation election rule invalid because the Board lacked a quorum when it issued the rule in December 2011. In this case, the district court determined that because only two of the three sitting Board members actually cast a vote to adopt the rule – Member Brian Hayes had voted against an earlier version of the rule but declined to participate in the final vote – the agency did not have the authority to act under the U.S. Supreme Court decision New Process Steel.
Recent Class Action Lawsuits Shine The Spotlight On The Camouflaged Privacy Law: GINA
As named by Congress, the “Genetic Information Non-Discrimination Act of 2008” (GINA) appears to be just one more employment law adding to the ever-expanding list of characteristics that cannot lawfully form the basis for an employment decision. However, the law’s name camouflages its true nature. GINA, in reality, is a privacy statue that strictly regulates employers’ collection, use, safeguarding, and disclosure of “genetic information.” Moreover, two recently filed class action lawsuits demonstrate that many employers may be unwittingly violating GINA even if they conduct no genetic tests.
Colorado Announces 2014 Minimum Wage Rates
The Colorado Department of Labor and Employment announced that it has adopted Minimum Wage Order 30, which will govern minimum wages in 2014. Effective January 1, 2014, the state’s minimum wage will increase from $7.78 to $8.00 per hour. For tipped employees, the minimum cash wage will increase from $4.76 to $4.98 per hour, whereas the maximum tip credit an employer may apply towards meeting its minimum wage obligation will remain $3.02 per hour.
HHS Delays Online Enrollment in Federal SHOP Exchange by One Year
The Department of Health and Human Services (HHS) recently announced that it will delay online enrollment in the federal Small Business Health Options Program (SHOP) Exchange for one year, until the open enrollment period for 2015, which begins November 2014. Administration officials stated that the decision was necessary as they prioritized fixes to the individual health exchange. The delay will apply to the nearly three-dozen states that declined to establish a SHOP Exchange and are relying on the federally established Exchange.
California Law Extends Workplace Discrimination Prohibition to Stalking Victims and Imposes New Reasonable Accommodation Requirement
California Governor Jerry Brown recently signed into law Senate Bill No. 400 (SB 400), which expands the state’s current employment discrimination protections to victims of stalking. Effective January 1, 2014, SB 400 amends California Labor Code sections 230 and 230.1 to extend the prohibitions against discharging, discriminating against, or retaliating against employees who are known or suspected victims of domestic violence or sexual assault, to employees who are victims of stalking. SB 400 also adds a provision to Labor Code section 230 that requires employers to provide reasonable accommodations to victims of domestic violence, sexual assault, and stalking.