2018 Form W-4 Has Been Issued!

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All Employers

EFFECTIVE

February 28, 2018

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On February 28, 2018, the IRS issued the 2018 Form W-4, which includes the updated tax table information. Although employees are not required to complete a new Form W-4 each year, it is considered a best practice. This year is particularly significant given the updated tax tables issued as a result of the December 2017 tax overhaul. Even if employees completed a Form W-4 in 2018 using the 2017 form, employers should consider making the 2018 form available in the event employees need to make changes consistent with the new tax legislation.

Action Items

  1. Provide the new form (or Spanish version) to current employees to update their withholding exemptions for 2018 in light of the recent tax legislation.
  2. Include the 2018 Form W-4 in new hire onboarding documents.

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.

© 2018 ManagEase

Keeping Up with the NLRB – The Browning-Ferris Joint-Employer Standard is Back on Top

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All Employers

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February 26, 2018

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Keeping up with the National Labor Relations Board (“NLRB”) can be a challenge. A mere two months after its December 2017 ruling in Hy-Brand Industrial Contractors, Ltd., which determined a joint-employer relationship by looking at an employer’s actual control over employees, the NLRB vacated the Hy-Brand decision, causing the joint-employer standard to revert back to the August 2015 Browning-Ferris decision, which follows an indirect and reserved control standard for determining joint-employer status.

The reversal is the result of a technicality – a conflict of interest of one of the board members involved in the Hy-Brand decision. Prior to becoming an NLRB board member, William Emanuel worked for a private law firm that represented one of the companies involved in the Browning-Ferris case. When this relationship came to light, the NLRB issued an order vacating its Hy-Brand decision, stating that the board member should have been disqualified from participating in the ruling. For now, the Browning-Ferris standard is back on top. However, in light of the NLRB’s Memorandum 18-02, employers can likely expect to see continued changes on this and other topics. Stay tuned.

Action Items

  1. Review potential joint-employer relationships with legal counsel to minimize exposure.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

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.

© 2018 ManagEase

SCOTUS Limits the Definition of “Whistleblower” Under the Dodd-Frank Act

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February 21, 2018

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Recently, the U.S. Supreme Court unanimously stated that a “whistleblower” under the Dodd-Frank Act is someone who reports suspected securities law violations to the Securities and Exchange Commission (“SEC”). The Dodd-Frank Act is a federal law intended to prevent abusive financial service practices, and protects whistleblowers from retaliation for reporting violations.

In Digital Realty Trust, Inc. v. Somers, an employee internally reported possible securities violations, and was fired shortly thereafter. The employee claimed he was retaliated against for whistleblowing. However, because he did not report the alleged violations to the SEC, the Supreme Court stated that he was not entitled to protected whistleblower status under Dodd-Frank.

While this case may seem appealing to employers, companies must still take care to avoid retaliation against employees. Specifically, other federal or state protections may protect internal whistleblower complaints. Additionally, this decision may cause employees to report misconduct to the SEC in order to access the Dodd-Frank Act whistleblower protections, rather than first reporting the issue internally within the company. Ultimately, it is best practice for employers to take all complaints seriously and treat employees fairly.

Action Items

  1. Review internal reporting procedures and retaliation policies for potential exposure.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

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.

© 2018 ManagEase

Second Circuit: Sexual Orientation Discrimination is Prohibited Under Title VII

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All Employers with CT, NY, and VT Employees

EFFECTIVE

February 26, 2018

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The Second Circuit Court of Appeals joins the Seventh Circuit in stating that Title VII of the Civil Rights Act of 1964 prohibits sexual orientation discrimination. Historically, the circuit courts have not included sexual orientation as a protected status under sex discrimination, which is prohibited by Title VII, but the Second Circuit acknowledged that the social and legal landscape surrounding LGBT rights have evolved.

Fourth Circuit: FLSA Lodging Credit Still Applies to Hours-Worked Agreements

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All Employers of MD, NC, SC, VA, and WV Employees

EFFECTIVE

January 25, 2018

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The FLSA requires employees to be paid for all hours worked, and permits employers and employees to agree on the number of hours worked when the employee lives on the employer’s premises, provided that the FLSA’s wage and hour requirements are followed (e.g., minimum wage, overtime paid, etc.). In Balbed v. Eden Park Guest House, LLC, the Fourth Circuit Court of Appeal stated that even when an employer and employee enter into a reasonable agreement of hours worked, the FLSA’s requirements for calculating the lodging credit are still enforceable.

Seventh Circuit: Defines Application of the Ministerial Exception in Discrimination Claims

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All Employers with IL, IN, WI Employees

EFFECTIVE

February 13, 2018

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In Miriam Grussgott v. Milwaukee Jewish Day School, Inc., the Seventh Circuit Court of Appeal used a “totality of circumstances” approach to determine that a Hebrew teacher’s position was ministerial in nature, rendering her ineligible to pursue an employment discrimination claim under the Americans with Disability Act.

In 2012, the U.S. Supreme Court used four factors to determine whether an employee’s role is ministerial: (1) formal job position title, (2) substance of the position based on the title, (3) the employee’s use of the title, and (4) the religious functions the employee performed for the religious institution. Here, the Seventh Circuit Court of Appeal used these factors to analyze the employee’s claim, and indicated that the factors must be reviewed under the totality of the circumstances. Specifically, although the employee’s job title of “Hebrew teacher” was not ministerial nor did she hold herself out as a religious leader, when looking at the totality of the circumstances, the court stated that the facts supporting the substance of the job title and her actual job functions outweighed those considerations.

The Seventh Circuit’s decision emphasizes the need to clearly communicate an employee’s job title, duties, and the organization’s expectations.

Action Items

  1. Have job descriptions reviewed for consistency with ministerial duties, if applicable.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

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.

© 2018 ManagEase

California: New Advisory Notice and FAQ for Immigration Enforcement Actions

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All Employers with CA Employees

EFFECTIVE

January 1, 2018

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(888) 378-2456

On February 13, 2018, the California Attorney General and Labor Commissioner issued documents intended to assist California employers in complying with AB 450.  Already in effect as of January 1, 2018, the Immigrant Worker Protection Act requires California employers to limit federal immigration enforcement access to non-public areas in the worksite, among other things.

California: State Supreme Court Sets Formula to Calculate Overtime on Flat, Non-Production Bonuses

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All Employers with CA Employees

EFFECTIVE

March 5, 2018

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(888) 378-2456

In Alvarado v. Dart Container Corp., the California Supreme Court stated that when calculating the per-hour value of a flat, non-production bonus for purposes of overtime, the total compensation must be divided by the number of non-overtime hours the employee actually worked during the pay period.

Maine: Employer Drug Testing Limited by Recreational Marijuana Law

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All Employers of ME Employees

EFFECTIVE

February 1, 2018

QUESTIONS?

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(888) 378-2456

Maine citizens voted to legalize recreational marijuana use in 2016. While recreational use of marijuana is permitted, the law allows employers to prohibit the consumption, possession, trade, display, transportation, sale, or growing of marijuana in the workplace, and employers could still maintain substance abuse policies at work.  However, the drug testing provision related to recreational marijuana use, effective February 1, 2018, significantly limits an employer’s ability to perform drug tests.

Kansas City, MO: New Ban-the-Box Ordinance

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All Employers of 6+ Kansas City Employees

EFFECTIVE

June 9, 2018

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As of June 9, 2018, employers of Kansas City employees will be prohibited from inquiring into or using criminal record information when making employment decisions.  This ordinance amends the Kansas City Human Relations Act, and follows in the footsteps of a similar ordinance passed in 2014, eliminating such criminal history inquiries when considering applicants for government positions.