U.S. Supreme Court to Resolve Split on Validity of Class Action Waivers in Arbitration Agreements

APPLIES TO

All Employers

EFFECTIVE

Expected Summer 2017

QUESTIONS?

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Last year, we reported on the Ninth and Seventh Circuit cases stating that class action waivers in arbitration agreements are invalid under the National Labor Relations Act (“NLRA”).  The Second, Fifth and Eighth Circuits have taken the opposite stance, concluding that employment agreements that require claims to be arbitrated individually are fully enforceable.

Due to this split in opinion, the U.S. Supreme Court has finally decided to review the issue at hand.  The Supreme Court will be reviewing three decisions: the Fifth Circuit’s ruling in favor of enforcing class action waivers, and the Ninth and Seventh Circuit’s rulings against.  A decision is anticipated sometime in the Summer of this year.

Employers should stay tuned, as the outcome of the Supreme Court’s review could affect workplace employment agreements.  ManagEase will continue to report on this developing area as updates occur.


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

Cures Act Restores Stand-Alone HRA Plans for Small Employers

APPLIES TO

All Employers of fewer than 50 Full-Time Employees

EFFECTIVE

Effective for Plan Years 2017

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On December 13, 2016, President Obama signed the 21st Century Cures Act (the “Act”), which allows qualified small employers of fewer than 50 full-time employees to offer a stand-alone Health Reimbursement Arrangement (“HRA”) option to employees.  This stand-alone HRA option is available for plan years beginning in 2017 for employers that are not Applicable Large Employers (“ALE”) under the Affordable Care Act (“ACA”).

DOL Increases Civil Money Penalties for 2017

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All Employers

EFFECTIVE

January 13, 2017

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(888) 378-2456

The U.S. Department of Labor (“DOL”) has published final regulations regarding increases for civil money penalties arising from violations of certain employment regulations, such as ERISA, OSHA, FLSA and FMLA.  These penalties are adjusted annually based on the Consumer Price Index to account for inflation.

Ninth Circuit: Car Dealership Service Advisors Not Exempt from FLSA

APPLIES TO

All Employers with AK, AZ, CA, GU, HI,
ID, MT, NV, OR, WA Employees

EFFECTIVE

January 9, 2017

QUESTIONS?

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(888) 378-2456

We previously reported on Navarro v. Encino Motorcars, LLC, wherein a group of service advisors at an auto dealership alleged that they did not receive owed overtime compensation. At that time, the Ninth Circuit decided to defer to the U.S. Department of Labor’s interpretation of the Fair Labor Standards Act (“FLSA”); the U.S. Supreme Court reversed this decision and remanded the case to the Ninth Circuit to determine how the FLSA statutes apply to auto dealership service advisors.

Ninth Circuit: Disclosures for Background Checks Cannot Contain a Liability Waiver

APPLIES TO

All Employers with AK, AZ, CA, GU, HI,
ID, MT, NV, OR, WA Employees

EFFECTIVE

January 20, 2017

QUESTIONS?

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(888) 378-2456

On January 20, 2017, in Syed v. M-I, LLC, the Ninth Circuit Court of Appeals stated that the disclosure required by the Fair Credit Reporting Act (“FRCA”) cannot also contain a liability waiver for conducting the background check in the same document.  Rather, only the disclosure notice and background authorization can be contained within the same document.  Having other language in the disclosure notice violates background check rules under the FRCA.

California: Guidance on Rounding Timekeeping Entries

APPLIES TO

All Employers with CA Employees

EFFECTIVE

December 9, 2016

QUESTIONS?

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The California Court of Appeals recently confirmed that employees may round timecard entries to the nearest tenth of an hour.  In Silva v. See’s Candy Shop, Inc., a former employee brought a class action lawsuit challenging some of See’s timekeeping practices: rounding time card entries up or down to the nearest tenth (six minutes) of an hour, and a grace period in which employees could punch in or out up to 10 minutes before or after their scheduled shift, respectively.  Employees were not to perform work during this grace period and were not paid for time spent punched in during the grace period.  Rather, employees were intended to use such grace period time for personal activities.

D.C.: Council Passes New Fair Credit Law, Aims to Strengthen Fair Chance Hiring

APPLIES TO

Most Employers with D.C. Employees

EFFECTIVE

Expected early spring 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Washington D.C. Council recently passed the Fair Credit in Employment Amendment Act (the “Act”), a bill that prohibits employers from inquiring into applicant, intern and employee credit information.  Employers cannot require disclosure of credit information as a condition of employment, and are further prohibited from using such credit information, even after making a conditional offer of employment.

Kentucky Enacts Laws Impacting Employee Unions and Wages

APPLIES TO

All Employers with KY Employees

EFFECTIVE

January 9, 2017

QUESTIONS?

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(888) 378-2456

In early January, Kentucky passed a number of bills that impact employee unions.  The bills contained an emergency clause, meaning they became immediately effective once signed by Governor Matt Bevin on January 9, 2017.

Minneapolis, MN: Sick Leave Law Blocked in Some Areas

APPLIES TO

All Employers with Minneapolis, MN Employees

EFFECTIVE

January 19, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Last year, the City of Minneapolis approved the Sick and Safe Time Ordinance (the “Ordinance”), which requires employers to provide at least 48 hours of paid sick and safe time to covered employees working in Minneapolis each year.  Originally scheduled to go into effect on July 1, 2017, the Minnesota Chamber of Commerce, among other business entities, sued to block the Ordinance.  As a result, a Minnesota district court recently issued a temporary injunction that limits the Ordinance from going into full effect for certain employers.

New York: Exempt Salary Threshold Increased

APPLIES TO

All Employers with NY Employees

EFFECTIVE

December 31, 2016

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Effective December 31, 2016, the New York State Department of Labor (“NYSDOL”) has adopted proposed amendments to the New York minimum wage orders that will increase the salary threshold for executive and administrative employees.  Prior to the amendments, the executive/administrative salary exemption threshold was $675 per week ($35,100 annually).

The new exemption thresholds are scaled to employer size, and will gradually increase each year, per the table below: