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APPLIES TO
All Employers with LA, MS, and TX Employees
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EFFECTIVE
April 20, 2020 |
QUESTIONS?
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On April 20, 2020, in Hewitt v. Helix Energy Sols. Grp., Inc., the Fifth Circuit Court of Appeal stated that an employee who is paid a daily rate is not paid on a “salary basis.” The Fair Labor Standards Act (FLSA) states:
“An employee will be considered to be paid on a ‘salary basis’ within the meaning of this part if the employee regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of the employee’s compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed.”
The court stated that the term “predetermined amount” of pay means that an employee knows what they will be paid before the work is performed. There, an oil rig worker was paid on a biweekly basis a set amount for each day worked. Although the employee knew he would be paid biweekly, the exact amount of pay was not calculated until after the work was performed, because it was based on the number of days worked in the week. The FLSA requires exempt employees to receive the full salary for any week in which work is performed, without regard to the number of days or hours worked, which was not the case there.
Action Items
- Review employee overtime exemption status in connection with this ruling.
- Update payroll procedures for daily rate workers to include overtime calculations.
- Consult with legal counsel for historical corrections.
- 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
COVID-19: Extension of COBRA and ERISA Deadlines; New COBRA Model Notices
/in HR AlertsAPPLIES TO
All Employers with Employees
EFFECTIVE
May 4, 2020
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The Employee Benefits Security Administration, the Department of Labor, the Internal Revenue Service, and the Department of the Treasury (“the Agencies”) recently issued a joint notification of relief, extending COBRA and ERISA deadlines and election periods.
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Flexibility for OSHA Employer Obligations in the Wake of COVID-19
/in HR AlertsAPPLIES TO
All Employers with Employees
EFFECTIVE
April 16, 2020
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(888) 378-2456
Due to the unprecedented impact of COVID-19 on the global population, OSHA recently issued a memo directing its Compliance Safety and Health Officers (CSHO) to take a practice approach in determining if an employer has made good-faith efforts to comply with safety obligations, such as training, equipment inspections, auditing, and testing.
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5th Circuit: Daily Rate Pay is Not Exempt from Overtime Pay Rules
/in HR AlertsAPPLIES TO
All Employers with LA, MS, and TX Employees
EFFECTIVE
April 20, 2020
QUESTIONS?
Contact HR On-Call
(888) 378-2456
On April 20, 2020, in Hewitt v. Helix Energy Sols. Grp., Inc., the Fifth Circuit Court of Appeal stated that an employee who is paid a daily rate is not paid on a “salary basis.” The Fair Labor Standards Act (FLSA) states:
“An employee will be considered to be paid on a ‘salary basis’ within the meaning of this part if the employee regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of the employee’s compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed.”
The court stated that the term “predetermined amount” of pay means that an employee knows what they will be paid before the work is performed. There, an oil rig worker was paid on a biweekly basis a set amount for each day worked. Although the employee knew he would be paid biweekly, the exact amount of pay was not calculated until after the work was performed, because it was based on the number of days worked in the week. The FLSA requires exempt employees to receive the full salary for any week in which work is performed, without regard to the number of days or hours worked, which was not the case there.
Action Items
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
11th Circuit: Disability Accommodations Must be Equally Afforded for Pregnancy Disability
/in HR AlertsAPPLIES TO
All Employers with AL, FL, and GA Employees
EFFECTIVE
April 17, 2020
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In Durham v. Rural/Metro Corp., the Eleventh Circuit Court of Appeal stated that employees with a pregnancy disability must be given the same accommodations as other similarly situated employees with non-pregnancy disabilities. Specifically, the Pregnancy Discrimination Act (PDA) requires that pregnant women “be treated the same . . . as other persons not so affected but similar in their ability or inability to work[.]”
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IMPORTANT: California: NEW Presumption of Employer Liability Under Workers’ Compensation
/in HR AlertsAPPLIES TO
All Employers with CA Employees
EFFECTIVE
May 6, 2020
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(888) 378-2456
Gov. Newsom recently issued an Executive Order stating that employees are presumed to have contracted COVID-19 in the workplace for purposes of receiving workers’ compensation benefits if all of the following are met:
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California: Employer’s Unlimited Vacation Policy is Invalidated by Appeals Court
/in HR AlertsAPPLIES TO
All Employers with CA Employees
EFFECTIVE
April 1, 2020
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In McPherson v. EF Intercultural Foundation, Inc., the California Court of Appeal reviewed the enforceability of an “unlimited” vacation policy for purposes of paying out wages (including unused vacation) on termination. There, the employer had an informal, unwritten vacation policy in which area managers could take time off with pay, but they did not accrue vacation days. The court understood this to mean there was an implied cap on the amount of vacation that could be taken, consistent with the amount that was typically taken in practice (i.e., two to four weeks), rather than vacation actually being “unlimited” (e.g., employees could not reasonably expect to take six months of vacation in a year).
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Massachusetts: In-Person Identity Verification Procedures for Background Checks Modified
/in HR AlertsAPPLIES TO
All Employers with MA Employees
EFFECTIVE
April 9, 2020
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(888) 378-2456
The Massachusetts Dept. of Criminal Justice Information Services (DCJIS) recently issued emergency regulations modifying the process for verifying the identity of an individual for whom a background check will be run through DCJIS’s iCORI database (CORI). As part of the normal CORI process, individuals must provide written authorization to run their criminal history and requestors must verify the individual’s identity in person. Because employers must limit in-person interactions due to COVID-19 and associated public safety restrictions, requestors can verify an applicant’s identity via teleconference rather than the usual in-person process.
Additionally, if a requestor is unable to verify an individual’s identity in person, by notary, or by teleconference, then the requestor may petition DCJIS for approval to use an alternative means to verify identity. Upon termination of the current state of emergency, all CORI requests verified in this manner must be verified either in person or through submitting a notarized CORI Acknowledgement Form within seven business days. Employers should track all individuals verified pursuant to these emergency measures in order to later obtain timely identification verifications.
Action Items
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
New Jersey: Pending Expansive Amendment to WARN Act Delayed
/in HR AlertsAPPLIES TO
All Employers with NJ Employees
EFFECTIVE
As Indicated
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Like the City of Philadelphia, the state of New Jersey will offer some relief to employers impacted by COVID-19 with regard to reductions-in-force. Governor Phil Murphy signed into law S-2353, a bill that makes important changes to the Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN Act) due to the influence of COVID-19.
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New York: Permanent Statewide Paid Sick Leave to Follow Emergency Provisions
/in HR AlertsAPPLIES TO
All Employers with NY Employees
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September 30, 2020
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(888) 378-2456
In response to the global pandemic, the state of New York implemented emergency paid sick leave provisions. On April 3, 2020, Governor Andrew Cuomo signed into law the 2021 fiscal year budget, inclusive of a new bill that enacts a permanent statewide sick leave program, effective later this year.
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Pennsylvania: Standard for Classifying Independent Contractors Further Clarified
/in HR AlertsAPPLIES TO
All Employers with PA Employees
EFFECTIVE
April 22, 2020
QUESTIONS?
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(888) 378-2456
Generally speaking, Pennsylvania employers are required to pay unemployment taxes on compensation paid to individuals who provide services to the employer. In A Special Touch v. UC Tax Services, the Pennsylvania Supreme Court provided further clarification on how the state Unemployment Compensation Law will determine if an individual is an independent contractor and thereby exempt from the business’s unemployment tax obligations.
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