APPLIES TO As Indicated

EFFECTIVE As Indicated

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look The Minnesota Legislature passed a large omnibus bill that contains several new and amended laws that significantly impact employers. Employers with 30 or more employees must comply with pay transparency requirements by January 1, 2025. Independent contractor misclassification is subject to increased penalties. Benefits must be maintained during pregnancy and parental leave and additional protections were added for prenatal care medical appointments. Service providers are prohibited from entering into a contract prohibiting their customers from soliciting or hiring the service provider’s employees. Usage of an alternative minimum wage will be restricted to those under 20 years old and only for the first 90 days of employment. The full amount of all tips received through an electronic payment must be paid to the employee. The Minnesota Human Rights Act is amended to expand definitions, increase penalties, and extend the time to file a claim. The Drug and Alcohol Testing in the Workplace Act allows oral fluid testing.

Discussion

During Minnesota’s most recent legislative session, the state passed several new and amended laws as part of an omnibus bill that will impact Minnesota employers. Key aspects of the bill are summarized below.

 

New Pay Transparency Requirements. Effective January 1, 2025, employers with 30 or more total employees in Minnesota will be subject to the state’s new pay transparency requirements.  Covered employers will be required to include in all job postings a starting salary range, or if no range, a fixed pay rate.  The range must include a minimum and a maximum amount based on the employer’s good-faith estimate of the opportunity for each position, and cannot be open-ended.  Additionally, any posting must include a “description of all the benefits and other compensation, including but not limited to any health or retirement benefits” associated with the position.

 

The term “job posting” is defined broadly in the new law to include “any solicitation intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party, and includes any postings made electronically or via printed hard copy, that includes [sic] qualifications for desired applicants.”

 

New Requirements for Independent Contractors. Effective July 1, 2024, significant changes go into effect to Minnesota’s independent contractor laws. All employers, as well as owners, will be subject to increased monetary penalties for the misclassification of employees as independent contractors. Specifically, employers may face up to $10,000 per individual violation for the improper classification of employees. Additional penalties may be imposed if employers fail to report workers as employees to a state agency. Under the new law, individual owners and officers may be held personally responsible for intentional or continued violations.

 

In addition, and effective March 1, 2025, the Minnesota legislature has updated the factor test for determining employee or independent contractor status for the construction industry. While all industries except construction will continue to use the five-factor test to determine classification, a new 14-factor test has replaced the preexisting 9-factor test in the construction industry. The new test focuses on the time at which the services were provided for purposes of determining appropriate classification. All of the factors must be met in order to confirm independent contractor classification.

 

Under the new test an individual is an independent contractor only if they:

1. Were established and maintained separately from the person to whom they are providing services;
2. Own, rent, or lease equipment, tools, vehicles, materials, supplies, etc. that are used in performing their service;
3. Provides or performs services to multiple persons or to the general public;
4. Is in compliance with specific business registration requirements;
5. Is in good standing;
6. Has a state unemployment insurance account;
7. Has workers’ compensation insurance;
8. Holds a current business license;
9. Is operating under a contract, subject to specific compliance requirements;
10. Submits invoices and receives payments;
11. Maintains control over the means of providing or performing the specific services;
12. Incurs and maintains expenses and costs;
13. Is responsible for the completion of specific services as stated in the applicable contract; and
14. May realize additional profit or suffer loss.

 

Pregnancy and Parental Leave Enhancements. Effective August 1, 2024, the Minnesota legislature has revised the Pregnancy and Parental Leave law to require the 12 weeks of parental leave guaranteed by state law “not be reduced by any period of paid or unpaid leave taken for prenatal care medical appointments.” This means an individual may use more than 12 weeks of protected leave in connection with pregnancy-related medical appointments prior to birth and for care of a child following birth.

 

Additionally, Minnesota will now require employers to continue providing insurance benefits for employees on leave, and their dependents, as if the employees were not on leave.

 

New Non-Compete Restrictions. Effective July 1, 2024, a new law prohibits service providers from entering into a contract prohibiting their customers from soliciting or hiring the service provider’s employees, independent contractors, or any other person who performs work for the service provider. Subject to very limited exceptions, “service providers” is defined broadly to include any businesses or groups of persons that are contracted to provide services to a customer. The new law applies to any contractual provision that restricts, restrains, or in any way prohibits the customers from directly or indirectly soliciting or hiring those individuals. Such provisions are deemed void and unenforceable and service providers are required to notify employees of any provision that violates this ban.

 

Elimination of Alternative Minimum Wage. Effective January 1, 2025, a lower minimum wage may be paid only to those under 20, and only for the first 90 days of their employment.

 

Payment of Electronic Tips. Effective August 1, 2024, the full amount of all tips received through an electronic payment, such as the use of a credit card or app, must be credited to the employee in the pay period in which it was received and paid to the employee no later than the next scheduled pay period.

 

Amendments to Minnesota Human Rights Act. Several amendments to the Minnesota Human Rights Act (MHRA) were passed that impact employee rights and potential damages.

 

• Expanded Definitions – Similar to the ADA, the definition of “disability” in the MHRA is expanded to include any person who has an impairment that is episodic or in remission and would materially limit a major life activity when active. The definition of “familial status” is also broadened to include caretakers. Under this new definition, it is unlawful to discriminate against persons “residing with and caring for one or more individuals who lack the ability to meet essential requirements for physical health, safety, or self-care because the individual or individuals are unable to receive and evaluate information or make or communicate decisions.”
• Increased Potential Damages – A new section has been added to the MHRA concerning civil penalties and amending the damages available for successful claims. Compensatory damages now explicitly include mental anguish and suffering, and (along with back pay and front pay) are subject to a multiplier up to three times “the actual damages sustained.” The amendments also remove the cap on punitive damages and require that in cases decided by a jury, the jury will determine the amount of alldamages to be awarded, including compensatory, treble, and punitive damages.
• Extended Time to File Claims – Previously, individuals alleging a claim under the MHRA had 45 days to commence litigation following receipt of notice of dismissal from the Minnesota Department of Human Rights (MDHR). Under the amended law, individuals will now have 90 days.
• MDHR Determination Timeline – Under the amended law, the MDHR must make a determination on a charge of discrimination within one year of filing.

 

Amendments to Drug and Alcohol Testing in the Workplace Act. Minnesota will now allow the use of “oral fluid testing” for drug, alcohol and cannabis testing. This change does not expand the list of substances that an employer is permitted to test for, instead, it expands an employer’s options for how to test. Anyone who receives a positive, inconclusive, or invalid result from an oral fluid test must be provided a laboratory test at the employer’s expense, if requested by the applicant or employee within 48 hours. If the applicant or employee fails the laboratory test, they are entitled to request a second retest at their own expense.

 

Action Items

1. Review and update job postings and descriptions for compliance with pay transparency requirements.
2. Review employee and independent contractor classifications.
3. Review any restrictive covenants with legal counsel to determine compliance.
4. Review wage rates for minor employees and other employees earning minimum wage.
5. Review and update leave policies, as applicable.
6. Review and update drug testing policies and procedures to account for new oral fluid testing allowance.

 

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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. © 2024 ManagEase

APPLIES TO Employers in NY with 10+ Retail Employees

EFFECTIVE Pending

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look The State Legislature passed AB A8947C, pending Governor Hochul’s signature, and would create significant workplace violence prevention requirements for retail employers.

Discussion

The State Legislature passed AB A8947C and is expected to be signed by the Governor. The bill would create significant workplace violence prevention requirements for retail employers. The law will go into effect 180 days after signature. The significant requirements of the bill are below:

 

Covered Employer. A covered employer is any person, entity, business, corporation, partnership, limited liability company, or an association employing at least 10 retail employees. The State of New York, a political subdivision, public authority, or other governmental agencies are excluded from coverage.

 

Retail Employee and Retail Store. A retail employee is an employee working at a retail store for an employer. A retail store is a store that sells consumer commodities at retail, and which is not primarily engaged in the sale of food for consumption on the premises.

 

Panic Button. Employers of 500 or more retail employees nationwide must provide panic buttons throughout the worksite. These can be physical or mobile phone-based. Physical panic buttons must immediately contact local 9-1-1 and provide the employee location information while dispatching law enforcement to the worksite. Mobile phone-based buttons can only be installed on employer-provided equipment and cannot track employee locations except when the panic button is triggered.

 

Workplace Violence Prevention Policy. The State Department of Labor will create a draft model plan, but employers must adopt the model plan or create their own equivalent plan. The plan must be in writing and provided to employees upon hire and annually. The primary requirements of the written plan are as follows:

• Outline a list of factors or situations that might place retail employees at risk of workplace violence (e.g., working late night, exchanging money with the public, etc.);
• List methods that may be used to prevent incidents of workplace violence (e.g., reporting systems);
• Include information about applicable federal and state statutory requirements regarding retail workers and remedies available to victims of violence in the workplace; and
• Statement of non-retaliation for those who complain of risk factors, or who testify or assist in any proceeding under the law.

 

Training. Upon hire and annually thereafter, employees must be provided a training that includes: 1) information on the requirements of the bill; 2) examples of protective measures retail employees can use; 3) de-escalation tactics; 4) active shooter drills; 5) emergency procedures; and 6) instructions on the use of security alarms, panic buttons, and other emergency devices.

 

Notice. All employees must be provided a notice, at the time of hire and annually at each training, of the employer’s workplace violence prevention policy and information provided during the training.

Action Items

1. Review and revise current workplace violence prevention policies and procedures, as required.
2. Assess worksite(s) for potential threats of workplace violence.
3. Determine options for panic buttons and placement.
4. Have appropriate personnel trained on the requirements.

 

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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. © 2024 ManagEase

APPLIES TO All Employers with 5+ VT Employees

EFFECTIVE July 1, 2025

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look 704 now adds Vermont to the list of states that require pay transparency disclosures for applicants and employees. The law applies to employers with five or more employees with any job that will be physically located in Vermont or a remote position that will predominantly perform work for an office or work location that is physically located in the state. It also applies to all jobs open to internal or external candidates, including positions for transfer or promotion.

Discussion

1. 704 now adds Vermont to the list of states that require pay transparency disclosures for applicants and employees. The law applies to employers with five or more employees with any job that will be physically located in Vermont or a remote position that will predominantly perform work for an office or work location that is physically located in the state. It also applies to all jobs open to internal or external candidates, including positions for transfer or promotion.

In each posting, covered employers must disclose the compensation or range of compensation which is the minimum and maximum annual salary or hourly wage for a job opening. The compensation must be what the employer in good faith expects to pay at the time the employer creates the job posting. Benefits and other compensation are not required to be disclosed. Job postings for tipped positions must disclose: (1) the job opening is paid on a tipped basis; and (2) the base wage or range of base wages.

 

Jobs paid on a commission basis are excluded from the law. Employers who refuse to interview, hire, promote, or employ an applicant or employee due to their exercise of rights under the law are in violation of the law. The Vermont Attorney General or state’s attorney are authorized to enforce the law which includes penalties like restitution of wages and other appropriate relief.

Action Items

1. Update job descriptions.
2. Conduct an equal pay audit.
3. Implement wage ranges for appropriate positions.
4. Update job posting procedures.
5. Have appropriate personnel trained on the requirements.

 

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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. © 2024 ManagEase