IMPORTANT! New Form I-9 Released

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January 31, 2020

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The U.S. Citizenship and Immigration Services (USCIS) recently issued an updated Form I-9 for employers to begin using as of January 31, 2020. The new version is labeled 10/21/2019, and expires on 10/31/2022. The prior version, labeled 07/17/17 N, can still be used through April 30, 2020 as employers transition to the new form. However, beginning May 1, 2020, employers may only use the new version.

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New Form W-4 Does Not Apply to All State Tax Withholding – Are You Using the Right Forms?

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January 1, 2020

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In December 2019, the IRS issued a new Form W-4 to reflect the elimination of withholding allowances because individuals can no longer claim personal or dependency exemptions. While this was intended to allow for more accurate federal tax withholding calculations, it raises the question of what employers should do with respect to state tax withholding requirements.

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Federal DOL Updates: Clarification on the “Joint Employer” Standard, Overtime Calculation in Multi-Week Bonus Periods, and Per-Project Pay for Exempt Salary Threshold

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As indicated

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The U.S. Department of Labor (DOL) published a final rule concerning the joint employer standard, as well as two Fair Labor Standards Act (FLSA) opinion letters providing guidance on specific wage and hour inquiries.  Below are key takeaways from each of these updates.

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The SECURE Act Changes Retirement Plan Rules

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All Employers with ERISA Retirement Plans

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January 1, 2020, unless otherwise indicated

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As part of the federal spending bill, the government enacted the Setting Every Community Up for Retirement Act of 2019, or the “SECURE Act.” It includes extensive changes to pension and retirement plan rules. Here are some of the key highlights.

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Second Circuit: Equal Pay Claims are Easier to Reach for Employees

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All Employers with CT, NY, and VT Employees

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December 6, 2019

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In Lenzi v. Systemax, Inc., the Second Circuit Court of Appeal addressed a gender discrimination claim under Title VII based on unequal pay. There, the court stated that a female employee, claiming she was paid less than the men who also held Vice President titles within the company, only needed to show that she was discriminated against based on her sex. She did not need to show that she was paid less than her male peers or that they held substantially equal positions to hers.

Essentially, the court distinguished the standards of proof required between unequal pay claims brought under Title VII of the Civil Rights Act of 1964 versus under the Equal Pay Act of 1963, making the bar for equal pay claims lower under Title VII. Employers should expect to see more Title VII claims for allegations of unequal pay based on sex discrimination.

Action Items

  1. Have a compensation audit conducted to review equal pay.
  2. Have applicable managers trained on setting pay rates.
  3. 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.

© 2020 ManagEase

California: AB 5 Updates for Independent Contractors

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All Businesses with CA Independent Contractors

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As Indicated

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On January 1, 2020, AB 5 went into effect. It essentially codified the ruling in Dynamex Operations West, Inc. v. Superior Court, which implemented an ABC test for determining whether a worker is an employee or an independent contractor. However, the bill also broadened the application of the ABC test and add a slew of exemptions for certain types of workers under certain circumstances.

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California: AB 51 Update – Mandatory Arbitration Agreements are Back In?

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All Employers with CA Employees

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January 31, 2020

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As of January 1, 2020, AB 51 prohibited employers from requiring job applicants and employees to enter into arbitration agreements. However, on December 30, 2019, a federal district court issued a temporary restraining order preventing the state from enforcing the bill while a request for preliminary injunction was reviewed. After extensive legal argument, on January 31, 2020, the court issued a preliminary injunction with respect to arbitration agreements covered by the Federal Arbitration Act (FAA), preventing the bill from going into effect while its legality is resolved in court. On February 10, 2020, the court issued its ruling supporting the preliminary injunction. Employers with arbitration agreements that are not covered by the FAA (e.g., agreements with interstate truckers) are still subject to the terms of AB 51.

The legal community appears to uniformly indicate that this development means that employers subject to the FAA can continue to use mandatory arbitration agreements until further development in the federal court case challenging the bill. However, employers are recommended to consult with legal counsel on the best course of action before determining next steps.

Action Items

  1. Review arbitration agreements with legal counsel in light of the recent development.
  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.

© 2020 ManagEase

California: FMCSA Preempts State Meal and Rest Requirements, But Don’t Jump on the Bandwagon Yet!

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Employers of CA Passenger-Carrying Commercial Motor Vehicle Drivers

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January 13, 2020

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The Federal Motor Carrier Safety Administration (FMCSA) recently granted a petition from the American Bus Association (ABA), stating that California’s meal and rest period rules are preempted by federal law, which governs passenger-carrying commercial motor vehicle drivers’ hours of service requirements. Specifically, in contrast with prior challenges, the FMCSA said that state meal and rest period requirements are laws on commercial motor vehicle safety, which is regulated by federal law. Moreover, the meal and rest period rules have no safety benefit, are incompatible with federal regulations, and cause an unreasonable burden on interstate commerce.

While this may seem like a done deal, employers must still be cautious of enforcement of meal and rest period requirements in California. It is unclear if California will challenge FMCSA’s ruling, or what its next steps will be. Employers are strongly urged to consult with legal counsel before taking any steps that would violate state wage and hour laws. Continue to look for updates on this topic.

Action Items

  1. Review the FMSCA opinion with legal counsel.
  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.

© 2020 ManagEase

Colorado: Wage and Hour Change is a Comin’!

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All Employers with CO Employees

EFFECTIVE

March 16, 2020

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(888) 378-2456

On January 22, 2020, the Colorado Department of Labor and Employment (CDLE) published a final rule for the Colorado Overtime and Minimum Pay Standards (COMPS) Order #36, with sweeping changes to the state’s wage and hour laws. Specifically, COMPS replaces the Colorado Minimum Wage Order in an attempt to provide clarity to the rules. Most significantly, COMPS will now apply to all industries.

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Connecticut: New Law Codifies “80/20” Rule for Compensating Tipped Employees

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All Employers with CT Employees in Hospitality and Service Industries

EFFECTIVE

April 1, 2020*

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(888) 378-2456

Hospitality employers who take tip credits when compensating employees will be relieved to hear that Connecticut’s legislation has made new strides to clarifying how tipped employees must be paid.  The recently-passed Public Act 19-1 requires the Connecticut Labor Commissioner to adopt regulations codifying the federal “80/20” rule.  The Act requires the Labor Commissioner to post a notice of intent to adopt these regulations by April 1, 2020, though the actual effective date of the rule is not yet clear.

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