In an effort to help keep you informed (and reduce possible fines!), we’ve begun a new series on workplace compliance. We’ll be posting these ‘roundups’ with the latest policy updates that could impact your company. The new rulings and updates are coming fast and furious so stayed tuned!
Most recently, there’ve been many policy changes to sick leave and minimum wages in the United States, on the city, state, and federal levels. These updates are affecting millions of employees across the country.
Federal Policy Updates
In May, the DOL (Department of Labor) issued the final order set under the FLSA (Fair Labor Standards Act) to take effect December 1, 2016. This is the first time since 2004 that the FLSA has had a revision, and the wage threshold has nearly doubled as a result. The fundamental change will address who is authorized for overtime pay and who should see a salary increase based on the duties test.
OSHA (Occupational Safety & Health Administration) has issued a final rule to improve the tracking of injury and illness at the workplace. The revisions clarify how incidents are to be reported and submitted, as well as provisions to encourage employees to report incidents without the fear of retaliation. Employers must inform employees of their right to report work-related injuries and illnesses free from retaliation. This obligation may be met by posting the OSHA Job Safety and Health — It’s The Law worker rights poster from April 2015 or later.
The DOL has made revisions to federal labor law posting requirements. By August 1, 2016, posters must reflect the updates being made to the OSHA notice and reporting requirements, Federal Minimum Wage, and Employee Polygraph Protection Act.
The Equal Employment Opportunity Commission (EEOC) released an update to penalties that are associated with failures to post articles under The Civil Rights Act, ADA and GINA (Genetic Information Nondiscrimination Act). Starting July 5, 2016, fines for not complying with Equal Employment Law will increase to $525 from the current rate of $210. Fines are incurred for all locations that you operate.
State Policy Updates
California
The city of Emeryville has a new minimum wage increase that takes effect July 1, 2016. The change requires a minimum wage of $12.00 an hour for employers with 55 or fewer employees. If you have 56 or more employees, you will be required to comply with $14.82 an hour.
Emeryville also introduced paid sick leave and hospitality service charges. The change must be displayed within your workplace on a poster that is easily seen by all employees by July 1st.
Beginning July 1, 2016, Los Angeles county introduced a new minimum wage compliance. Based on the size of your business, the requirement calls for either $10.00 per hour or $10.50 per hour. Increases are slated to increase every year on July 1st, until 2021 when minimum wage will reach $15.00 per hour.
Employees in San Francisco will receive a 6.3% increase with a new minimum wage compliance, also beginning July 1, 2016. The first of the increases raises minimum wage from $12.25 to $13.00 an hour, and continues to increase until $15.00 an hour is reached in 2018.
An increase in minimum wage is also coming to the city of San Diego. The first increase, which does not have a defined time, will be set at $10.50 an hour. San Diego passed and introduced earned sick leave. Employees who work a minimum of two hours a year, within the boundaries of the city, will accrue one hour for every 30 hours worked, capped at 40 hours. Earned time begins to accrue on the first day of employment and is eligible for use after the 90th calendar day.
On July 1, 2016, Sunnyvale announced they will also have an increase in minimum wage to $11.00 per hour. This is the first of the increases that lead to $15.00 per hour by 2018.
The city of Los Angeles has added an amendment to the recently released minimum wage increase that notice posters must also include information on the city’s paid sick leave. The city had previously not decided whether this would be required on workplace posters, but has now revised the ruling to update current posters.
California’s Governor has updated the workplace smoking rules to include independent contractors and volunteers. The update no longer provides an exemption to warehouse workers and break rooms. Lastly, the law expansion now covers additional guidelines to include parking lots, lobbies, lounges, waiting areas, elevators, stairwells, and restrooms.
Connecticut
Connecticut has introduced the ‘Ban the Box’ initiative, under the Fair Chance Employment Law, taking effect January 1, 2017. The bill places limits on businesses from conducting pre-employment criminal screenings (arrests, criminal charges, or convictions) on candidates.
Georgia
If you have 3 or more workers (part- or full-time) be advised that there have been updates made to the state of Georgia’s Workers Compensation law.
- In the event an individual endures a catastrophic injury in the workplace, the payment has increased to $575 from $550 weekly.
- Non-catastrophic events are now capped at $383 weekly, from the previous $367 rate. Still capped with no more than 400 weeks pay.
- Workplace fatalities and widow payments have increased from $550 weekly to $575. The lifetime maximum has also received a capped increase to $230,000 from $220,000.
- Posters now include a phone number to the Board of Workers Compensation: (404) 656-0849
Illinois
Chicago announced that beginning July 1, 2017, employees who work a minimum of 80 hours in any given 120 day period will earn paid sick time. The law introduces one hour for every 40 hours worked. Time starts accruing for the employee on the first calendar day after beginning employment. After 180 days of employment, the time accrued can be used for the care of a family member. Time is capped at 40 hours. Employers who are not subject to comply with FMLA, must allow up to 20 hours to be carried over. Employers who are compliant with FMLA practices, must allow up to 40 hours to be carried over.
Minnesota
Beginning July 1, 2017, employees in Minneapolis will start to accrue one hour of “sick and safe” time for every 30 hours worked. Employees can accrue up to 48 hours per calendar year and any unused time can be carried over to the following year. To be eligible, an individual must be employed at the business for a minimum of 90 calendar days.
The state of Minnesota also announced it will increase minimum wage requirements, effective August 1, 2016. Unlike several other states that have made increases recently, Minnesota’s wages will be based on an employer’s gross dollar value. Business with annual gross dollar sales volume of $500,000 or more will be required to pay at a minimum of $9.50 an hour. If your business does less than $500,000 in annual gross dollar volume of sales, minimum wage is $7.75 per hour. Each year, beginning January 1, 2018, the minimum wage rate will increase, based on cost of living, with a cap of 2.5% of the previous rate.
Oregon
Beginning July 1, 2016, employers in Oregon have a new minimum wage requirement to comply with. Increases are tiered and based on location.
Pennsylvania
The City of Philadelphia’sWage Theft Law took effect July 1, 2016. The law was introduced to stop abuse by employers who are intentionally underpaying or withholding payments to workers. Weekly penalties apply for violation.
Virginia
The state Department of Labor and Industry (VOSH), has made changes on how you report accidents in your workplace. The division of Job Safety and Health Protection, for employers and workers rights and responsibilities, were updated under the Virginia Workplace Safety Regulations.
West Virginia
The HRC (Human Rights Commission) updated the Human Rights Act and Fair Housing Act to protect those with disabilities who require assistance from service animals from discrimination.
The HRC has also updated the Pregnant Workers Fairness Act. The updates include:
- Pregnant employees are allowed to request modified duties during pregnancy.
- Pregnant employees are authorized for additional bathroom breaks.
- Pregnant employees are granted assistance with manual labor tasks.
- Provide nursing mothers time to express breast milk during assigned working hours.
- Prohibits employers from making hiring decisions based on current pregnancies or the possibility of them in the future.
Wisconsin
If employees are considering donating bone marrow or being an organ donor, effective July 1, 2016, the state of Wisconsin introduced the Wisconsin Bone Marrow and Organ Donation Leave Act. Similar to FMLA, the law impacts employers with 50 or more employees. Employees are allowed to take up to 6 weeks of unpaid leave each year. To be eligible, an individual must have worked 52 consecutive weeks and a minimum of 1,000 hours with the same employer.
Historical Fun Facts!
In May of 1971, Congress passed the Uniform Monday Holiday Act. After much resistance, it was determined that Memorial Day would be one of four holidays moved to create a three day weekend.
In June of 1963, President John F. Kennedy signed the Equal Pay Act amending the Fair Labor Standards Act (FLSA). The priority of the act was to first recognize wage gaps between genders and move forward with demolishing the disparity.
Since 1941, July 4th has been recognized as a Federal Holiday. The historic document was drafted by Thomas Jefferson after the 13 colonies declared their independence from Great Britain in 1776. The delegates voted upon the topic on July 2nd, and two days later, July 4th, it was adopted. Hope it was the happiest 240th Birthday for you United States of America!
