Judge Blocks White Collar Overtime Exemption Rule from Taking Effect Nationwide

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All Employers

EFFECTIVE

November 22, 2016

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Since the U.S. Department of Labor issued the finalized White Collar Overtime Exemption Rule (the “Rule”) in May this year, employers across the country have been preparing to comply with the Rule’s requirement for white collar employees to earn $47,476 annually in order to maintain exemption status rather than being paid overtime.  In an eleventh hour ruling, just days before its effective date of December 1st, a Texas federal judge ordered a preliminary injunction on the Rule, preventing the Rule from going into effect nationally on its slated December 1st start date.  The Rule was expected to result in millions of workers either (a) being re-classified as non-exempt, and therefore entitled to wage and hour protections, including overtime pay; or (b) receiving dramatic salary increases to keep workers classified as exempt.

Minimum Wage Update

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Varies; See Below

EFFECTIVE

Varies; See Below

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A number of states’ and localities’ minimum wage rates will increase in 2017. Below is a chart of upcoming wage increases.

OSHA Issues Final Rule on Handling ACA Retaliation and Whistleblower Complaints

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All Employers

EFFECTIVE

October 13, 2016

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On October 13, 2016, the Occupational Safety and Health Administration (“OSHA”) released final regulations regarding whistleblower complaints under the Affordable Care Act (“ACA”).  The Final Rule (“Rule”) is intended to protect employees who report alleged violations of the ACA, or who receive a premium tax credit or cost-sharing reduction for enrollment in a qualified health plan.  Overall, the rule is very similar to the interim rule implemented in 2013.  However, there are some changes that address procedures and timeframes for employee complaints, OSHA investigations, administrative review procedures, and more.

Federal Contractors Must Now Provide Paid Sick Leave

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All Employers with a Federal Contract

EFFECTIVE

January 1, 2017

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Executive Order 13706 (the “Order”) mandates that federal contractors provide paid sick leave to all employees who work on or in connection with certain federal contracts that result from solicitations issued on or after January 1, 2017.  This applies to contracts solicited on or after January 1, 2017, or to existing contracts before January 1, 2017 if they are renewed, extended, or modified on or after January 1, 2017.

Court Injunction Blocks Federal Contractors’ Fair Pay and Workplace Protections

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All Employers with a Federal Contract

EFFECTIVE

October 24, 2016

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The Fair Pay and Safe Workplaces Executive Order (the “Order”), originally slated to go into effect on October 25, 2016, has been blocked from implementation.  A Texas court granted a nationwide preliminary injunction, which immediately stops enforcement of the Order until the lawsuit presented by industry groups reaches its final resolution.  The Order contains three major components, two of which have been enjoined by the injunction:

Tenth Circuit: “Job-Protected” Leave Does Not Necessarily Protect Employees from Misconduct

APPLIES TO

All Employers with Colorado, Kansas, New Mexico, Oklahoma, Utah and Wyoming Employees

EFFECTIVE

August 26, 2016

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The Tenth Circuit recently stated that employers can implement disciplinary action against employees who are currently on job-protected leave when evidence of misconduct is discovered during the employee’s leave of absence.

California: New Workers’ Comp Law Expands Coverage Requirements

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All Employers with California Employees

EFFECTIVE

January 1, 2017

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(888) 378-2456

AB 2883 revises the definition of “employee” in workers’ compensation insurance policies, adding officers, directors, and working members of partnerships and limited liability companies.  Currently, such individuals are generally not required to be covered under a business’s workers’ compensation policy.   Under AB 2883, such workers will be generally required to be covered; a narrow exclusion permits certain individuals to opt out by signing and filing a waiver with the insurance carrier.

California: Choice of Law and Venue Prohibition in Employment-Related Contracts

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All Employers with California Employees

EFFECTIVE

January 1, 2017

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(888) 378-2456

A new California Labor Code provision limits employment contract provisions that dictate when another state’s law or location will be used to adjudicate employment disputes for employees who primarily live and work in California.  This law applies to contracts entered into, modified or extended on or after January 1, 2017, and to contracts that employees are required to assign as a condition of employment.

California: Employers Required to Offer State-Run Retirement Fund to Employees

APPLIES TO

All Private Employers with at least five California Employees

EFFECTIVE

Varies; see below

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SB 1234 will require all California private employers with at least five employees, who do not offer their own retirement plan, to enroll their workers into the state-run California Secure Choice Retirement Savings Program, which will operate like a 401(k).  The retirement fund will be overseen by a state board and administered by private companies that have not yet been selected.  Employees are expected to be able to enroll and start investing money in 2018.

San Francisco, California: Important Amendments to Paid Parental Leave Ordinance

APPLIES TO

All Employers with 50+ San Francisco, CA Employees

EFFECTIVE

January 1, 2017

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(888) 378-2456

Earlier this year, we reported on San Francisco’s bill requiring 6 weeks of fully paid parental leave.  The Paid Parental Leave Ordinance (“PPLO”) was recently amended to provide clarity on an employer’s obligations for supplementing compensation.