California: Another Nail in the Coffin for Rounding Practices

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All Employers with Employees in CA

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July 24, 2023

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  • Where employers can and do track employees’ exact time worked, employers cannot use rounding policies, even if neutral, to determine employee pay.

Discussion

In Woodworth v. Loma Linda Univ. Med. Ctr., the California Court of Appeal stated that where an employer can and does track an employee’s exact time, the employee must be paid for their actual time and not based on a rounding policy. Notably, California requires employees to be paid for all actual time worked. Here, an employee claimed she was not properly paid for time worked because the employer rounded employees’ time to the nearest tenth of an hour. The employer claimed that the policy was neutral and there was no systemic advantage to the practice.

This case comes on the heels of the 2022 ruling in Camp v. Home Depot U.S.A. Inc. where the California Court of Appeal stated that if an employer can and does track employees’ time worked in minutes, neutral time rounding is not a defense for failing to pay employees for all time worked. In fact, the Woodworth employer’s computer-based timekeeping system captured the employees’ time to the minute and took the extra step of rounding the time punches. The employee’s evidence showed that she was not paid for 6.3 weighted hours under the rounding policy. Under the circumstances, the court said the employee had to be paid for all time worked.

With the ongoing list of cases disfavoring rounding time, employers must take great care to review their timekeeping practices and rounding policies. A stated consideration in favor of rounding from recent rulings is when employers are unable to track employees’ exact time worked. With today’s technology, that argument seems to be less likely it will be accepted as time goes on. In fact, the issue of rounding time is currently awaiting review by the California Supreme Court. It remains to be seen if rounding will survive at all.

Action Items

  1. Have timekeeping practices and rounding policies reviewed for compliance.
  2. Consult with legal counsel for historical wage and hour corrections.
  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. © 2023 ManagEase

Connecticut: Mandatory Staffing Plans, Committees, and Reporting Requirements for Hospitals

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Hospital Employers with Employees in CT

EFFECTIVE

October 1, 2023

  

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  • New Connecticut legislation mandates specific requirements for nurse staffing committees and staffing plans.
  • The Connecticut Department of Public Health will oversee hospital compliance and assess fines for violations.

Discussion

Governor Ned Lamont recently signed HB 6941 which creates new requirements for Connecticut hospitals with respect to nurse staffing plans, staffing committees, reporting requirements, civil penalties for non-conforming hospitals and the right of nurses to object to participating in certain hospital activities.  Effective October 1, 2023, the changes brought by the new law are summarized below. The legislation affects both unionized and non-unionized hospitals.

Creation of Hospital Staffing Committees for Nurse Staffing Plans

Under the new law, Connecticut hospitals are required to dedicate a staffing committee to develop annual nurse staffing plans. The committee must be comprised of at least 50% direct care registered nurses (RNs) employed by the hospital as well as non-direct care RNs and a “broad base” of representatives “across hospital services.” The committee’s membership selection will depend on whether the hospital is unionized or not; however, in both unionized and non-unionized hospitals, the staffing committee is required to have two co-chairpersons with direct patient care experience. One chair will be elected by the committee’s direct care RNs and the other chair will be elected by committee members who are not direct care RNs.

Employees who are selected to serve on the staffing committee must be compensated at their regular pay rate, including differentials, for their time spent serving on the committee. Under the legislation, hospitals are asked to treat time spent serving on the committee as part of an employee’s regularly scheduled work week to the extent possible, although this is not a direct mandate.

Responsibilities of the Hospital Staffing Committee

Each staffing committee will be tasked with evaluating research about patient outcomes, sharing procedures for communicating concerns about the staffing plan and staffing assignments, and reviewing all reports communicated to the committee about these concerns or any RN objection or refusal to participate in a particular staffing assignment.

The new law also sets forth procedures required for conducting committee business. Specifically, a majority of the committee must be present, and the committee must take minutes of each meeting. Additionally, upon request, the committee must make the minutes available to any hospital staff member or to the Connecticut State Department of Public Health (DPH).

Hospital Notice and Recordkeeping Requirements Pertaining to Staffing Committees

At the time of hire, and annually each year after, the hospital must inform nurses about the staffing committee. This notice should include the staffing committee’s purpose, the criteria and process for becoming a member, the hospital’s internal review process for the nurse staffing plan, and how input is obtained from direct care RNs and other members of patient care teams in developing the plan.

Additionally, hospitals must maintain accurate records of the ratios of patients to direct care RNs and patients to assistive personnel providing patient care in each direct care unit for each shift. These records must be maintained for at least the three preceding years, and must include the number of: (1) patients in each unit on each shift, (2) direct care RNs assigned to each patient in each unit on each shift, and (3) assistive personnel providing patient care assigned to each patient in each unit on each shift. Upon request, these records must be made available to the DPH, hospital staff, patients, collective bargaining representatives, and/or the public.

Submission of Staffing Plans and Reporting Requirements to DPH

Hospitals must submit their proposed nurse staffing plans to DPH on a semi-annual basis, by January 1 and July 1. The proposed plan must include written certification that the plan is sufficient to provide adequate and appropriate patient health care services. Hospitals are also required to post the plans on each patient care unit in a location that is accessible and visible to staff, patients, and the public.

Beginning January 1, 2024, each proposed plan must include: (1) information about any objections to or refusals to comply with the nurse staffing plan by hospital staff that were communicated to the hospital staffing committee; (2) measurements of and evidence to support successful implementation of the nurse staffing plan; (3) retention, turnover and recruitment metrics for direct care RN staff; (4) each time since the last plan was submitted that the hospital was non-compliant with the plan, including nurse staffing ratios, a description of how and why the hospital was non-compliant, and the hospital’s plans to avoid future noncompliance; and (5) certification that the hospital and its hospital staffing committee are meeting the law’s requirements, with a description of how each requirement is being met.

Hospitals must report twice a year to DPH regarding their compliance with nurse staffing assignments as outlined in the nurse staffing plans. This reporting obligation begins October 1, 2024. If the DPH receives complaints of noncompliance, it will investigate and, if necessary, issue orders that require the hospital to implement corrective action plans and pay civil fines.

RN Objections to Participation

Under the new law, hospitals cannot require RNs to perform patient tasks that are beyond the scope of their license, training, or experience. If required to do so, RNs can object to such assignments, unless their objection/refusal occurs: (1) during an ongoing surgical procedure (RNs must wait until it is completed); (2) in critical care units, labor and delivery, or emergency departments (RNs must wait until they are relieved by another nurse); (3) public health or institutional emergencies; and (4) where the RN’s inaction or abandonment would jeopardize patient safety.

RNs who plan to object to refuse an assignment must immediately notify a supervisor to coordinate a suitable replacement. Within 12 hours of objecting, the objecting/refusing RN must submit a written report on a form developed by the hospital and approved by DPH.

Hospitals are prohibited from taking adverse action against an RN for objecting or refusing to perform patient tasks outside of their expertise/experience. However, a hospital, DHP, or the State Board of Examiners for Nursing may require a nurse to complete additional training or education consistent with the nurse’s job description.

Action Items

  1. Review the full committee selection and staffing plan requirements here.
  2. Develop the required RN objection and/or refusal of assignment form, with approval from DPH.
  3. Review and revise policies and procedures to be consistent with new staffing committee requirements, notice obligations, and recordkeeping requirements.
  4. Consult with legal counsel regarding existing labor-management procedures to ensure compliance with any applicable staffing plans developed under the new law.
  5. 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. © 2023 ManagEase

Connecticut: Roundup of 2023 Legislative Session

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As Indicated

  

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  • Connecticut employees have expanded reasons to use the State’s Paid Sick and Safe Leave Law.
  • Non-compete agreements for physicians, APRNs, and PAs have additional restrictions.
  • All employees, in addition to first responders, can receive workers’ compensation benefits for post-traumatic stress injuries.
  • The nondiscrimination statute adds age as a protected class and there is a refined definition of sexual orientation.

Discussion

The 2023 Connecticut Legislative Session included important expansions for employee. The most significant updates are:

Expansion of Paid Sick and Safe Leave. Effective October 1, 2023, Connecticut employees have additional reasons to use the State’s Paid Sick and Safe Leave Law. SB 2 expanded protections for service workers. Service workers can use sick leave for a mental health wellness day or a day where the individual addresses their emotional and psychological well-being rather than working a regularly scheduled shift. Also, service workers can take leave if they are a victim of family violence or sexual assault or if they are the parent or guardian of a child who is a victim to: 1) obtain medical care or psychological or other counseling for physical or psychological injury or disability; 2) obtain services from a victim services organization; 3) relocate due to family violence or sexual assault; or 4) participate in any civil or criminal proceedings related to or resulting from family violence or sexual assault. Employers should update their leave policies and train appropriate personnel as necessary.

Healthcare Professional Non-Compete Agreements Restricted Further. Effective October 1, 2023, physicians’, advanced practice registered nurses’ (APRNs), and physician assistants’ (PAs) non-compete agreements have restrictions. SB 9 further restricted physician non-compete agreements and extended those protections to APRNs and PAs. Now, physician non-competes that are entered into, amended, extended or renewed after the law’s effective date will not be enforceable if: 1) the physician does not agree to proposed material changes to compensation terms prior to or at the time of extension or renewal; and 2) the agreement expires and is not renewed by the employer or the relationship is terminated by the employer without cause. The new requirements do not apply to group practices that are majority owned by physicians and have less than 35 physicians. Now APRNs and PAs have the same statutory protections for non-competes as of the effective date. Employers should consult with their legal counsel to make sure their restrictive covenants comply with the new requirements.

State Health Insurance Offered to Striking Employees. Effective October 1, 2023, Public Act. No. 23-172 will create a special enrollment period for employees whose health care coverage is terminated by an employer because of a strike, lockout, or other labor dispute. It will allow employees engaged in labor disputes to enroll in health insurance through Access Health CT, the state’s health insurance exchange. Previously, employees who lost employer-sponsored health insurance for participating in labor disputes could not enroll in state health insurance programs.  The amendment now permits the exchange to offer such employees an enrollment period not otherwise provided by federal regulations under the Affordable Care Act (ACA).

PTSD Workers’ Compensation Benefits. Effective January 1, 2024, Substitute Bill 913 will expand workers’ compensation coverage to employees with post-traumatic stress injuries. The definition of “employee” will include all employees and not just first responders. The qualifying events for such benefits includes: 1) viewing a deceased minor; 2) witnessing the death of a person or an incident involving the death of a person; 3) witnessing an injury to a person who subsequently dies before or upon admission at a hospital as a result of the injury; 4) having physical contact with and treating an injured person who subsequently dies before or upon admission at a hospital as a result of the injury; 5) carrying an injured person who subsequently dies before or upon admission at a hospital as a result of the injury; and 6) witnessing a traumatic physical injury that results in the loss of a vital body part or a vital body function that results in permanent disfigurement of the victim.

Update of Non-Discrimination Statute. Effective July 1, 2023, HB 6638 adds age as a protected characteristic under the non-discrimination statute rather than prohibiting age discrimination in a separate section. Sexual orientation also has a revised definition as “a person’s identity in relation to the gender or genders to which they are romantically, emotionally, or sexually attracted, inclusive of any identity that a persona may have previously expressed or is perceived by another person to hold.”

Action Items

  1. Update leave policies for expanded requirements under PSL.
  2. Review and revise restrictive covenants for physicians, APRNs, and PAs with legal counsel.
  3. Review and update health and safety procedures to reduce the risk of a PTSD qualifying event.
  4. Review and update discrimination and harassment policies, if needed.
  5. Train appropriate personnel on the requirements.
  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. © 2023 ManagEase

Delaware: Guidance Issued for State PFML Program

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Employers with 10+ Employees in DE

EFFECTIVE

As indicated

  

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  • Delaware Department of Labor Division of Paid Leave has published the first set of interpretive rules in anticipation of the state’s upcoming family and medical leave program.
  • The rules provide guidance on determining employer and employee coverage, the duration and amount of benefits available, and employee notice obligations.
  • The rules also provide a detailed explanation of how employers can apply for: (1) a private plan in lieu of the state program; or (2) an exemption from coverage based on a pre-existing comparable private paid time off benefit plan.

Discussion

In 2022, Delaware enacted the Healthy Delaware Families Act (HDFA), creating a paid family and medical leave requirement for Delaware employers. As enacted, the obligation to provide paid benefits under the program does not begin until January 1, 2026, with employer and employee contributions beginning on January 1, 2025.

On July 11, 2023, and in anticipation of the HDFA’s effective date, the Delaware Department of Labor Division of Paid Leave (Division) published the first set of rules regarding the PFML program, which are summarized below.

Covered Employers and Employees

The HDFA applies to employers with 10 or more employees in Delaware. Employers with 10 to 24 employees in Delaware, however, are only required to comply with law’s Parental Leave requirements. Employers with 25 or more employees in Delaware are subject to all PFML requirements. As outlined in the rules, employers should determine whether they meet either the 10-employee or 25-employee coverage threshold by counting the number of employees over the preceding 12-month period

“Covered employees” include individuals who (1) work primarily at a worksite in Delaware (i.e., spend at least 60% of their working hours physically in Delaware) and (2) meet or are reasonably expected to meet the employee eligibility requirement of 12-months of service and 1,250 hours of service within the previous 12-month period. “Reclassified” employees must be counted but employees who are covered by a waiver of coverage are not. The rules define under what circumstances an employer may “reclassify” employees, as well as what is required to establish a waiver of coverage.

Once an employer meets either the 10-employee or 25-employee coverage threshold, the employer will remain subject to the program for at least 12 consecutive months. After the 12-month period, and with a covered employee count below either the 10 or 25-employee coverage threshold, the employer will no longer be obligated to comply with the applicable provisions of the HDFA. However, employers with 10 to 24 employees may voluntarily “opt in” to allow its employees to access PFML benefits for family caregiver leave, medical leave, or qualified exigency leave through the program. Employers must provide notice to employees who gain or lose coverage under the HDFA due to the change in their employer’s headcount.

Reasons for Use and Duration of Benefits

The rules categorize the PMFL benefits into four different areas of coverage:

  • Parental Leave – leave authorized for time off within the first year after birth, adoption, or placement through foster care of a child.
  • Family Caregiving Leave – Leave authorized for time off in the event of a serious health condition (illness or accident) of a child, spouse, or parent.
  • Medical Leave – Leave authorized for time off in the event of the employee’s serious health condition.
  • Qualified Exigencies – Leave authorized for time off for qualified issues that arise in connection with a military deployment.

Employees are eligible to receive up to 6 weeks of PFML in a 24-month period to be used for Family Caregiving Leave, Medical Leave, or Qualified Exigencies. The 24-month period is the 24-month period that begins on the first day of the requested leave.

Employees are eligible for up to 12 weeks of PFML in an application year to be used for Parental Leave. The “application year” is the employer’s designated 12-month period for leave under the federal Family Medical Leave Act (FMLA). If employees are combining Parental Leave with another line of coverage, employees are eligible for a maximum of 12 weeks of PFML in an application year.

The rules provide that employers with 10 to 24 employees may temporarily reduce the Parental Leave maximum benefit duration from 12 weeks to a minimum of 6 weeks for claims submitted prior to January 1, 2031. To qualify for this option, employers must notify the Division of their intention to do so by January 1, 2024, and they must notify their employees of this decision in writing no later than December 1, 2024.

Additionally, employees who are on Family Caregiving Leave for a family member who dies must notify the Division of the date of the family member’s death within 72 hours of the person’s passing. The Division may then continue to pay PFML benefits until seven days after the death of the family member or the previously approved end date for the leave.

The rules indicate that the Division will approve PFML benefits for leave taken on an intermittent or reduced schedule basis, but only when it is medically necessary and supported by documentation. PFML benefits are payable in increments as small as one workday, so if an employee is approved for and takes intermittent FMLA in smaller increments (i.e., 2 hours), the employee will not be eligible for PFML benefits during that absence. The rules do not address the possibility of taking Parental Leave intermittently.

Payroll Contributions and Amount of Benefits

Payroll contributions will begin on the later of either January 1, 2025, or the first day of the payroll period after the employer meets or exceeds the 10 or 25-employee coverage threshold. Payroll contributions will be submitted to the Division on a quarterly basis.

Employers must contribute 50% of the total contribution, but they may elect to contribute more. If an employer decides to contribute more than 50%, the employer must file a change with the Delaware DOL and provide notice to all affected employees by December 15 of the year prior to the January 1 effective date the following year.

Employee Notice Obligations

Under the rules, employees generally should provide employers with at least 30 days’ advance notice of a need for leave under the HDFA. If 30 days’ notice is not practicable, because of a lack of knowledge, a change in circumstances, or a medical emergency, notice must be given as soon as practicable, considering all the facts and circumstances of each individual case.

If the need for leave was clearly foreseeable to the employee at least 30 days in advance of the leave but the employee fails to give timely advance notice with no reasonable excuse, the employer may delay coverage until 30 days after the employee provides notice.

Private Plans

As with most other PFML programs across the country, employers may opt to use a private PFML plan rather than the state’s PFML program. The private plan must provide the same or greater rights, protections, and benefits to employees as they would receive under the state program. Employers may require employees to contribute to the private plan, but not more than what employees would have contributed under the state plan. Employers may also opt for a hybrid approach which may include combining a private plan for certain lines of coverage with the state PFML program for the remaining lines of coverage.

The application for submitting a proposed private plan for substitution will be opened on September 1, 2024. Applications to substitute a private plan for calendar year 2025 must be submitted by December 1, 2024.

Exemptions from Coverage for Pre-Existing Policies

Under the rules, employers that offered private paid time off benefit plans that were in place before May 10, 2022, may be exempt from compliance with the HDFA until December 31, 2029 if their plan is deemed “comparable” to the state’s public plan and they were made available to all employees. To qualify for this exemption, employees may not be required to contribute more to the employer’s “grandfathered” plan than what they would be required to continue under the state PFML program. Additionally, the grandfathered plan’s benefit percentages, maximum benefits, and benefit duration must be within 10% of the state PFML components.

Any grandfathered plan cannot be altered unless the change improves the benefit offered to employees and is approved by the Division. The deadline for submitting grandfathering applications is January 1, 2024. The application will be made available on October 1, 2023.

Action Items

  1. Review the Delaware Department of Labor website for more information on the PFML program.
  2. Revise policies and train appropriate personnel on paid time off procedures.
  3. Consult with counsel regarding any potential “grandfathered” exemptions or substitution of private plans.
  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. © 2023 ManagEase

Georgia: Non-Solicitation Agreements Must Include Geographic Limitation

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All Employers with GA Employees

EFFECTIVE

June 12, 2023

  

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  • Non-solicitation provisions must contain a geographic limitation to be enforceable in Georgia.

Discussion

In North American Senior Benefits, LLC v. Wimmer, the Georgia Court of Appeals clarified that an employee non-solicitation agreement must contain an express geographic limitation to be enforceable. Here, an insurance marketing company sued two former independent agents for violating their agent contracts. The contracts prohibited the agents from soliciting any employee, agent, or independent contractors of the company for two years after the termination of their contract. The plaintiff company alleged the former agents were poaching its employees and sued for breach of the agent contracts.

The Georgia Restrictive Covenants Act (Act) requires restrictive covenants to be reasonable in time, geographic area, and scope of prohibited activities. Although trial courts in Georgia interpret this language to apply to non-solicitation agreements, this is the first time the issue has been addressed at the appellate level. The court agreed with the trial court that the agent contracts did not contain a geographic limitation to the non-solicitation provision and therefore was not enforceable. The court also refused to “blue pencil” the provision since doing so would materially alter the restriction rather than narrowing it or removing impermissible language. The ruling is being appealed but, for now, employers should consider including a geographic limitation to help enforcement  of non-solicitation provisions in the interim.

Action Items

  1. Review and revise non-solicitation provisions 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. © 2023 ManagEase

Hawaii: New Pay Transparency Requirements for Hawaii Employers

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As Indicated

EFFECTIVE

January 1, 2024

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  • Effective January 1, 2024, employers in Hawaii are required to disclose an hourly rate or salary range that reasonably reflects the actual expected compensation for the job for each job listing.
  • Hawaii’s equal pay law is expanded to prohibit pay discrimination on the basis of any protected characteristic under Hawaii law.
  • Under Hawaii’s revised equal pay law, employees must receive equal pay if they are performing “substantially similar” work.

Discussion

On July 3, 2023, Hawaii Governor Josh Green signed SB 1057, requiring pay transparency in Hawaii job postings. Under the law, and effective January 1, 2024, Hawaii employers with 50 or more employees will be required to disclose an hourly rate or salary range that reasonably reflects the actual expected compensation for the role in each job listing.  Notably, the law does not define “hourly rate” or “salary range,” and it does not require employers to disclose pay information in job listings for positions that are internal transfers or promotions within the company.

The law explicitly excludes job listings for positions with employers that have fewer than fifty employees and public employee positions for which salary, benefits or other compensation are determined pursuant to collective bargaining.  Additionally, the law does not specify whether the 50-employee threshold refers to employees within Hawaii or to a company’s total employee count. Employers will want to monitor interpretations in this regard, prior to and following the law’s effective date.

Aside from pay transparency, SB 1057 also amends Hawaii’s equal pay law in two significant ways. First, the equal pay law will now prohibit pay discrimination based on any protected category under Hawaii law, not just sex. This includes pay discrimination based on race, sex (including gender identity or expression), sexual orientation, age, religion, color, ancestry, disability, marital status, arrest and court record, reproductive health decision, or domestic or sexual violence victim status.

Second, SB 1057 adopts a different standard for comparing employees for purposes of analyzing differentials in employee pay. Hawaii’s previous equal pay law tracked the federal Equal Pay Act, applying the “equal work” standard, which requires employee to establish that they were paid less than another employee for “equal work on jobs the performance of which requires equal skill, effort, and responsibility, and that are performed under similar working conditions.” The amendment broadens the protections to allow comparison of employees who are performing “substantially similar work” rather than “equal work.” Both amendments to the equal pay law are effective January 1, 2024.

Action Items

  1. Have an audit conducted of employee job descriptions and compensation rates to confirm compliance with the new requirements.
  2. Update job postings to comply with pay transparency requirements.
  3. Train appropriate personnel on job posting and equal pay 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. © 2023 ManagEase

Louisiana: New Employee Leave for Genetic Testing and Cancer Screening

APPLIES TO

Employers with 20+ Employees in LA

EFFECTIVE

August 1, 2023

  

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  • Effective August 1, 2023, employers with 20 or more employees are required to provide a day’s leave of absence from work to employees who require medically necessary genetic testing and cancer screenings.

Discussion

Effective August 1, 2023, employers with 20 or more employees are required to provide a day’s leave of absence from work to employees who require medically necessary genetic testing and cancer screenings. Enacted under SB 200, the new law also prohibits employers from discriminating or retaliating against employees who take such leave.

To be eligible for leave under the new law, the employee’s testing must be “reasonably necessary to diagnose, correct, cure, alleviate, or prevent the worsening of a condition or conditions that endanger life, cause suffering or pain, or have resulted or will result in a handicap, physical deformity, or malfunction, and those for which no equally effective and less costly course of treatment is available or suitable for the recipient.” Services that are investigational, cosmetic, or experimental and not approved by the Federal Drug Administration are not considered medically necessary.

Employees requesting leave under the law should give at least 15 days’ notice to their employer prior to taking leave, and should make reasonable efforts to schedule the leave in a manner that does not cause an undue disruption to the employer’s operations. Employees may be required by their employer to provide documentation confirming the performance of the genetic testing and/or cancer screening. However, employees are not required to disclose the results of the test or screening and employers should not ask for such results. Leave under the new law is unpaid, however, employees may elect to substitute any accrued paid time off that the employer provides.

Action Items

  1. Review and revise leave and discrimination policies.
  2. Train appropriate personnel on new leave 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. © 2023 ManagEase

Maine: New Paid Family and Medical Leave Requirement for Maine Employers

APPLIES TO

All Employers with Employees in ME

EFFECTIVE

May 1, 2026

  

QUESTIONS?

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Quick Look

  • Beginning May 1, 2026, Maine’s new paid family and medical leave law will provide employees with up to 12 weeks of paid family and medical leave benefits over a one-year period.
  • PFML benefits are financed through premium contributions from both employers and employees, which will begin on January 1, 2025.
  • Maine’s PFML law will cover virtually all Maine employees, including public employees (except federal government employees), as well as self-employed Mainers and tribal government employees.
  • Employers can expect more detailed guidance and regulations to be published by the Maine Department of Labor prior to the Act coming into effect.

Discussion

Beginning May 1, 2026, Maine’s new paid family and medical leave law will provide employees with up to 12 weeks of paid family and medical leave benefits over a one-year period. Employers can likely expect additional guidance to be issued by Maine’s Department of Labor prior to the effective date of the PFML program, however, employers should begin preparations for implementing the program now. Highlights of the new law are summarized below.

PFML Program Financing. The program’s benefits will be financed through a mandatory “premium” based on employee wages of up to 1%, which will be split evenly between employee and employer. Maine employers with fewer than 15 employees will not be subject to the payment of the employer’s portion of the premium, however, they will still be required to collect and pay the employee portion. Although the overall PFML program will not start until May 1, 2026, Maine employers and employees will begin paying the benefit premiums on January 1, 2025.

Employee Eligibility. Defined broadly, a “covered individual” under the new law includes all Maine employees who earn at least six times the state average weekly wage subject to premiums during the prior year. Exceptions exist for tribal employees, the self-employed, and employees subject to collective bargaining agreements.

Employee Notice Requirement and Reinstatement. In order to take leave under the Maine PFML law, employees must provide reasonable notice to the employer of their intention to take leave and the leave must be scheduled in such a way to avoid imposing an undue hardship on the employer (with certain exceptions for unforeseen emergencies). Employees taking PFML that have been employed for longer than 120 days must be returned to the same or equivalent position upon their return from leave.

Employee Benefit Entitlement. The program will pay covered employees “the portion of the covered individual’s average weekly wage that is equal to or less than 50% of the state average weekly wage” at a rate of 90%. Additionally, the program will pay covered employees “[t]he portion of the covered individual’s average weekly wage that is more than 50% of the state average weekly wage” at a rate of 66% up to the maximum weekly benefit of 100% of the average weekly wage. Leave under the program will run concurrently with leave under the federal Family and Medical Leave Act.

Covered Reasons for Leave. Paid leave is provided for the same list of reasons outlined under Maine’s unpaid Family and Medical Leave law. This includes: (1) to bond with the covered individual’s child during the first 12 months after the child’s birth or the placement of the child for adoption or foster care; (2) to care for a family member with a serious health condition, including persons of significant personal bond regardless of biological or legal relationship; (3) to attend to a qualifying exigency; (4) to care for a family member who is a covered service member; (5) to take safe leave; (6) for a serious health condition of the covered employee; (7) for donation of an organ by the employee; or (8) for the death of a close family member if the family member dies or incurs a serious health condition while on active service duty.

Employer Notice Requirements. The Maine DOL is in the process of developing a required poster outlining employee rights under the PFML law. Once the poster is issued and the PFML law goes into effect, Maine employers will be required to display the poster in a conspicuous place in the workplace. Maine employers are similarly required to notify new employees in writing of their rights under the PFML law within the first 30 days of employment.

Effect on Employer Private Plans. Like the separate Maine Earned Paid Leave program, Maine employers will be permitted to substitute their own private plans in place of participation in the state PFML program. Such private plans must provide the same or greater rights, protections, and benefits to employees as they would receive under the state program. If electing to do so, Maine employers are required to seek approval from the Maine DOL in order to substitute their own private plans.

Action Items

  1. Review the full Maine PFML program requirements here.
  2. Monitor Maine’s DOL website for additional information and guidance on the PFML program.
  3. Review current paid leave policies and procedures, and consult with legal counsel regarding implementation of PFML program and compliance with updated obligations.
  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. © 2023 ManagEase

Maine: Recent Legislative Updates

APPLIES TO

As Indicated

EFFECTIVE

October 25, 2023

  

QUESTIONS?

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Quick Look

  • Maine enacts law to raise the damages cap for violations of the state’s anti-discrimination law.
  • Maine expands the state’s Equal Pay Law to include race as a protected category.
  • Maine Workers’ Compensation Act is amended to permit certain individual
  • Non-tipped restaurant employees in Maine are permitted to participate in tip-pooling.
  • Maine bans noncompete agreements for veterinarians.
  • Maine employers cannot take adverse action against an employee who declines to attend or to participate in an employer-sponsored meeting if the purpose of the meeting is to communicate the opinion of the employer about religious or political matters.

Discussion

In addition to the passage of its PFML law, and as part of its 131st legislative session, Maine has passed several other laws that either create new rights for employees or substantially amend existing laws that affect employee rights. As part of the First Special Session, the following laws are set to take effect on October 25, 2023, unless otherwise indicated, so employers should work to revise their policies and practices as soon as practicable.

Increases to the Maine Human Rights Act Damage Caps. L.D. 1423 will increase the limits on potential compensatory and punitive damages awards for violations of Maine’s Human Rights Act (MHRA). The new legislation follows recent case law in Maine and the First Circuit that allows “stacking” of state and federal statutory damages, meaning plaintiffs may be able to recover damages under both federal and state law for the same offense. The increases to the maximum limits on compensatory and punitive damages under the MHRA are as follows:

  • 15-100 Employees: $100,000, raised from $50,000 (potentially $150,000 if combined with the federal cap)
  • 101-200 Employees: $300,000, raised from $100,000 (potentially $400,000 if combined with the federal cap)
  • 201-500 Employees: $500,000, raised from $300,000 (potentially $700,000 if combined with the federal cap)
  • More than 501 Employees: $1 million, raised from $500,000 (potentially $1.3 million if combined with the federal cap)

Right to Sue Letters Under the Maine Human Rights Act. L.D. 1001 will allow the Maine Human Rights Commission (MHRC) to issue a right-to-sue letter without request from the complainant. The MHRC may now issue a right-to-sue letter on or after the 181st day following the filing of a complaint with the Commission. The amended law further provides that plaintiffs may not be awarded attorneys’ fees, civil penal damages, or compensatory and punitive damages under the MHRA, unless they establish that they received a right-to-sue letter from the MHRC before filing the civil action.

Maine Equal Pay Law. L.D. 1703 expands the Maine Equal Pay Law to prohibit discrimination in pay on the basis of race, in addition to the law’s previous prohibition of sex-based pay discrimination. The amended legislation prohibits employers from discriminating “between employees in the same establishment on the basis of race” by paying an employee less than what the employer pays to any other employee in the state “of another race for comparable work on jobs that have comparable requirements relating to skill, effort[,] and responsibility.”

Maine Workers’ Compensation Act. L.D. 53, enacted without the Governor’s signature, amends Maine’s workers’ compensation law to provide that an employee, supervisor, or officer or director of an employer may be individually liable for sexual harassment, sexual assault or an intentional tort related to sexual harassment or sexual assault.  The law also provides that workers’ compensation remains the exclusive remedy for intentional torts with respect to an employer itself, including intentional torts related to sexual harassment or assault like intentional infliction of emotional distress or invasion of privacy. However, now individuals may also be liable for such torts.

Tip Pooling for Restaurant Workers. L.D. 903 will allow non-tipped restaurant employees, including non-service employees such as dishwashers and cooks, to participate in tip-pooling, as long as all participating employees are being paid the minimum hourly wage and employers are not using the Federal Insurance Contributions Act tip credit.

Noncompete Ban for Maine Veterinarians. L.D. 688 will prohibit employers from requiring or permitting licensed veterinarian employees from entering into noncompete agreements, unless the veterinarian employee has an ownership interest in the business. The law will apply retroactively, prohibiting courts from enforcing such noncompete agreements entered into prior to the effective date of the legislation.

Limits on Mandatory Employer-Sponsored Meetings. L.D. 1756 prohibits an employer from taking any adverse employment action against an employee because the employee declines to attend or to participate in an employer-sponsored meeting or declines to receive or listen to a communication from the employer if the employer’s purpose is to communicate the opinion of the employer about religious or political matters. The law defines “political matters” as “matters relating to elections for political office, political parties, proposals to change legislation, proposals to change rules or regulations, proposals to change public policy and the decision to join or support any political party or political, civic, community, fraternal or labor organization.” Additionally, the law defines “religious matters” as “matters relating to religious belief, affiliation and practice and the decision to join or support any religious organization or association.” The law contains limited exemptions for religious employers.

Action Items

  1. Update policies and train appropriate personnel on equal pay requirements.
  2. Review and revise wage and hour policies pertaining to tipped and non-tipped workers, if applicable.
  3. Review noncompete agreements with legal counsel to ensure compliance.
  4. Review policies and procedures pertaining to employer-sponsored events to ensure compliance with updated restrictions.
  5. 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. © 2023 ManagEase

New York, NY: New Guidance for AI Regulations

APPLIES TO

All Employers with NYC Employees

EFFECTIVE

June 29, 2023

  

QUESTIONS?

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(888) 378-2456

Quick Look

  • New York City employers using automated employment decision tools (AEDTs) in hiring and promotion decisions must adhere to specific requirements and limitations.
  • The New York City Department of Consumer and Worker Protection released a set of FAQs explaining how the law applies.

Discussion

The New York City Department of Consumer and Worker Protection (DCWP) released a set of FAQs clarifying NYC Local Law 144. The law regulates the use of automated employment decision tools (AEDTs) in hiring and promotion decisions. The law went into effect on January 1, 2023 with enforcement beginning on July 5, 2023. During the draft, review, and revision process of the regulations implementing the law, the DCWP held a series of roundtables to address the concerns and questions about the law. The FAQs are a direct result of the roundtables. The FAQs’ key clarifications are:

Definition of “In the City.” The law applies to those who use AEDTs “in the city.” Employers are covered if: 1) the job location is an office in NYC, even if part-time; 2) the job is fully remote, but the location associated with the job is an office in NYC; or 3) the location of the employment agency using the AEDT is NYC or, if outside NYC, the first or second points on this list are true. For employers, this means the job must be tied to an NYC location. However, for employment agencies, it appears that the law would apply to all jobs if the employment agency is located in NYC.

Resume Banks or Inviting Applications. Using an AEDT to scan a resume bank, conduct outreach to potential candidates, or inviting applications does not trigger applicability of the law. The requirements only apply when assessing particular candidates for a specific position for hire or promotion.

Bias Audits. Bias audit results do not require any specific actions be taken by the employer subsequent to the results. Further, a bias audit does not need to be specific to a job or class but can span multiple types of positions.

Selective Improvement of Bias Audit Result. There was some concern that employers might exclude data from certain time periods or geographies to improve the results of a bias audit. The FAQs make clear that if a data set is limited in any way, then the audit must provide an explanation as to why it was limited.

Action Items

  1. Review the FAQs.
  2. Determine whether AEDTs are used in the hiring or promotion process.
  3. Train appropriate personnel on the 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. © 2023 ManagEase