Alabama: FMLA Employers Must Provide Family Leave Under State Law

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All Employers with Alabama Employees covered by FMLA

EFFECTIVE

July 1, 2022

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Alabama recently adopted the Adoption Promotion Act, which requires unpaid leaves of absence for birth and adoptive parents. Employers covered by the federal Family and Medical Leave Act are required to comply with the Act. Eligible employees are entitled to 12 weeks of unpaid leave, which runs concurrently with FMLA leave. The Act permits leave for:

  • The birth and care of a child born to the employee during the first year after the child’s birth; or
  • The care of a child placed with the employee in connection with adoption within one year of the placement of the child.

If an employee has already used their allotted FMLA leave, employers are not obligated to provide additional leave under the Act. Intermittent leave is only permitted upon agreement between the employer and employee. Requests for additional family leave due to the adoption of an ill or disabled child must be considered on the same basis as comparable cases of complications in childbirth.

Employers who provide paid leave to employees for birth and care of a child must also provide the lesser of either equivalent paid leave or two weeks paid leave to employees for care of a child placed with the employee for adoption. However, employers are only required to provide paid leave to one of two different eligible employees if both would be using the benefits.

When leave is foreseeable, the employee must provide their employer with at least 30 days’ notice before leave begins. If leave is not foreseeable, notice must be given as soon as practicable. Employers cannot penalize employees for taking leave.

Action Items

  1. Review SB 31 here.
  2. Have leave policies and practices updated for compliance.
  3. Train appropriate personnel on requirements.
  4. 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. © 2022 ManagEase

California: Individual PAGA Arbitration Enforceable!

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All Employers with CA Employees

EFFECTIVE

June 15, 2022

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(888) 378-2456

In Viking River Cruises v. Moriana, the U.S. Supreme Court recently said that individual employee Private Attorney General Act (PAGA) claims are arbitrable when based on a valid arbitration agreement. This ruling specifically addressed the previously existing Iskanian rule put forth by the California Supreme Court, which said that individual PAGA claims could not be arbitrated according to agreement because they could not be separated from nonindividual (“representative”) PAGA claims. The U.S. Supreme Court said that the Iskanian rule conflicted with and was preempted by the Federal Arbitration Act (FAA).

 

There, an employee signed an arbitration agreement with class action waiver. The agreement specifically called for individual PAGA claims to be arbitrated. Under the FAA, arbitration agreements must be treated the same as any other contract. However, the Iskanian rule prohibited parties from mutually agreeing to arbitrate the individual portion of a PAGA claim. Because of this conflict between the FAA and Iskanian, the Supreme Court said the rule is preempted by the FAA. Ultimately, the Court said that employee PAGA claims can be divided (through arbitration agreements) into (1) individual PAGA claims resolved via arbitration and (2) nonindividual PAGA claims resolved in court.

 

Moreover, PAGA itself does not allow a representative claim to survive in court without the individual portion of the claim. The Court said that, because of this statutory limitation, the remaining representative portion of the PAGA court claim had to be dismissed. In short, the only piece of the PAGA claim that survived was the individual claim subject to the arbitration agreement. However, the Court left open the possibility that state legislators may revise PAGA to allow representative actions to stand on their own.

Action Items

  1. Have arbitration agreements updated consistent with the ruling.
  2. Review existing litigation with legal counsel for arbitration coverage.
  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. © 2022 ManagEase

California: Meal and Rest Premiums are New Avenue for Penalties

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All Employers with CA Employees

EFFECTIVE

May 23, 2022

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(888) 378-2456

In Naranjo v. Spectrum Security Services, Inc., the California Supreme Court stated that meal and rest premiums can be the basis for waiting time penalties and inaccurate wage statements. Meal and rest premiums are required to be paid when nonexempt employees do not take the statutorily required meal or rest periods. The Court stated that meal and rest premiums are wages, and therefore subject to derivative wage and hour claims.

 

There, an employee claimed the employer failed to provide the required meal and rest periods, subjecting the employer to pay meal and rest premiums. As part of his claim, the employee sought waiting time penalties for failure to pay the premiums and wage statement violations for failing to properly identify wages earned.

 

The Court reasoned that the premiums are intended to provide compensation for the missed meal or rest period as a legal remedy, and wages for the work the employee performed during the meal or rest period. Further, the Court confirmed prior precedent that wage statements must include wages earned, not just wages actually paid. Having identified the premiums as wages, the Court then linked payment deficiencies to remedies for failure to pay or properly document the earnings.

 

Notably, the Court reinforced its prior ruling in Murphy v. Kenneth Cole Productions, Inc., stating that meal and rest premiums are akin to overtime premiums. The portion of Murphy that excludes meal and rest premiums from the regular rate of pay seemingly remains intact. Employers should review this ruling with legal counsel for guidance on how it may impact their business.

Action Items

  1. Separately list meal and rest premiums on wage statements.
  2. Consider adding an acknowledgment that employees have received premium pay.
  3. Evaluate timekeeping and payroll practices to ensure meal and rest premiums are accounted for.
  4. 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. © 2022 ManagEase

California: Applicant Time Spent on Pre-Employment Drug Tests is Noncompensable

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All Employers with CA Employees

EFFECTIVE

June 13, 2022

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(888) 378-2456

In Johnson v. WinCo Foods LLC, the Ninth Circuit Court of Appeals stated that where an employer requires a pre-employment drug test as a conditional job offer before the individual becomes an employee, time spent traveling to and attending the drug test is noncompensable.

 

There, applicants would receive an offer of employment conditioned on a successful drug screen. The employer did not compensate applicants for time spent in connection with the drug test, but did pay for the cost of the drug test. Applicants claimed that they were under the control of the employer for purposes of getting a drug test, and they were employees having accepted a job offer.

 

The court distinguished drug testing in this context as a means for applicants to secure employment rather than connected to a duty an employee has in the context of employment. This meant that the drug test was not a “condition subsequent” (occurring after) employment, but a “condition precedent” (occurring before) employment. Thus, the employer’s control over the applicants’ activity was irrelevant as they were not yet employees.

Action Items

  1. Review offer letters to confirm drug testing as a precondition to employment, 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. © 2022 ManagEase

Colorado Issues First Paid Family and Medical Leave Insurance Regulations

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All Employers with CO Employees

EFFECTIVE

January 1, 2023

QUESTIONS?

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(888) 378-2456

Colorado issued long-awaited regulations regarding its Paid Family and Medical Leave Insurance Program (FAMLI). As a review, nearly all Colorado employers with at least one employee must comply with FAMLI on January 1, 2023. Employees can start receiving FAMLI benefits beginning in 2024. Employees will be able to use paid leave to:

  • Care for their own serious health condition;
  • Care for a family member’s serious health condition;
  • Care for a new child during the first year following birth, adoption, or placement;
  • Make arrangements for a family member’s military deployment; or
  • Address the employee’s or their family member’s status as a victim of domestic violence, stalking, sexual assault, or abuse.

Generally, employees may take up to 12 weeks of paid leave. If leave is needed because of complications in pregnancy or childbirth, employees may take an additional four weeks leave.

Beginning on January 1, 2023, employers must begin deducting premiums. The premium will be a 0.9% payroll tax, split 50/50 between the employer and the employee if the employer has 10 or more employees. Employers with fewer than 10 employees are not required to pay the employer share of the premium.  If desired, employers may pay more than their 0.45% requirement. Premiums must be taken from all wages but will be capped at the Social Security Wage base, which is updated annually.

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Colorado: Tighter Controls Coming on Restrictive Covenants

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All Employers with CO Employees

EFFECTIVE

August 9, 2022

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(888) 378-2456

Newly passed HB 22-1317 implements severe restrictions for noncompete and nonsolicitation agreements entered into, renewed, or renegotiated on or after August 9, 2022. Specifically, noncompete agreements are restricted to “highly compensated” workers (i.e., earning at least $101,250 annually) and for the purpose of protecting trade secrets. Even so, trade secrets may only be protected as is reasonably necessary to protect an employer’s legitimate business interest in protecting them. Moving forward, the previous exception for executive and management personnel and their professional staff will no longer exist.

 

Similarly, customer nonsolicitation agreements must also be no broader than reasonably necessary to protect an employer’s legitimate interest in trade secrets. These agreements are limited to workers who earn at least 60% of the “highly compensated” amount, both at the time the agreement is entered into and when the agreement is enforced. Notably, employee nonsolicitation agreements are not addressed in the bill.

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Delaware: Paid Family and Medical Leave Coming in 2026!

APPLIES TO

All Employers with 10+ DE Employees

EFFECTIVE

January 1, 2026

QUESTIONS?

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(888) 378-2456

Delaware became the latest state to pass a paid family and medical leave law, titled the Health Delaware Families Act (Act). The Act, signed into law on May 10, 2022, allows qualified employees to take up to 12 weeks of leave beginning in 2026.

 

Employers with at least 10 employees in Delaware must comply with the Act. The only exceptions are businesses that are closed for 30 or more consecutive days per year and the federal government. Employers with at least 10 but less than 25 employees are only required to provide parental leave. Employers with 25 or more employees must provide all the given reasons for leave under the Act.

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Illinois: Increased Protections for Sexual Violence Victims Serving in the Military

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All Employers with IL Employees

EFFECTIVE

May 19, 2022

QUESTIONS?

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(888) 378-2456

Illinois recently passed Senate Bill 57, the primary purpose of which is to extend the authority of military protection orders beyond military bases. The law allows military legal authorities to file military protection orders in Illinois courts and give those orders the same authority as civilian protection orders.

 

The law prohibits employers from discriminating against employees or potential employees because they attend, participate in, prepare for, or request leave to attend a proceeding subject to the Uniform Code of Military justice when the proceeding relates to an incident of domestic, sexual, gender, or criminal violence. Employees and potential employees are protected if they or their family or household member is the victim.

 

The law also extends the protections of the Victims’ Economic Security and Safety Act (VESSA) to victims of military sexual violence. Under VESSA, employees may take up to 12 weeks of unpaid leave in a 12-month period if they are victims of violence who are seeking medical help, legal assistance, counseling, safety planning, or other assistance.

Action Items

  1. Have harassment and leave policies updated for compliance.
  2. Have appropriate personnel trained on the requirements.
  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. © 2022 ManagEase

Illinois: One Day Rest in Seven Rules Amended

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All Employers with IL Employees

EFFECTIVE

January 1, 2023

QUESTIONS?

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(888) 378-2456

SB 3146 amends the Illinois One Day Rest in Seven Act provisions regarding days of rest and meal period requirements. Specifically, the one day of rest in seven rule will change to one day of rest in “every consecutive seven-day period.” Rather than having one day off in any given calendar week, the required day of rest must be provided on a rolling seven-day basis.

 

Additionally, the requirement of a second or third 20-minute meal period will occur every 4.5 hours following the first 7.5-hour period. Rather than working 15 hours to receive a second meal period as is currently required, next year the second meal period must be provided at 12 hours.

 

There is also a posting requirement, including provisions on how to provide notice to remote workers. Violators of the new rules will be subject to civil penalties and additional damages. Because of the new penalties, employers should consider requiring that meal breaks are taken or otherwise document when a worker voluntarily skipped a meal period that was offered.

Action Items

  1. Review SB 3146 here.
  2. Have meal and rest policies updated for compliance.
  3. Have appropriate personnel trained on scheduling and meal requirements.
  4. 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. © 2022 ManagEase

Chicago, IL: Anti-Sexual Harassment Protections Expanded

APPLIES TO

All Employers with Chicago, IL Employees

EFFECTIVE

July 1, 2022

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Chicago City Council recently amended the Chicago Human Rights Ordinance to expand sexual harassment protections. Specifically, the definition of sexual harassment now includes sexual misconduct “which means any behavior of a sexual nature which also involves coercion, abuse of authority, or misuse of an individual’s employment position.”

 

To further support enforcement, employers are now required to have a written policy against sexual harassment. The written policy must include a statement that sexual harassment is illegal in Chicago, the definition of sexual harassment, a requirement that all employees annually participate in sexual harassment prevention training and bystander training, examples of prohibited sexual harassment, information on how to report sexual harassment, and a statement that retaliation for reporting sexual harassment is illegal in Chicago. There is also a posting requirement.

 

All employers must provide annual sexual harassment prevention training for one hour to all employees, and two hours for supervisors and managers. There is an additional bystander training requirement. All training must be completed by June 30, 2023.

 

Employers must retain records of compliance for the longer of five years or the duration of any claim, action, or investigation under the ordinance. City penalties were also increased for all forms of discrimination to $5,000-$10,000 per violation.

 

Action Items

  1. Review the updated Ordinance
  2. Review the City’s website for more information.
  3. Implement a sexual harassment policy consistent with the new requirements.
  4. Provide sexual harassment and bystander training annually.
  5. Display the required posting.
  6. 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. © 2022 ManagEase