Illinois: Paid Leave Coming in 2024!

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APPLIES TO

All Employers with IL Employees

EFFECTIVE

January 1, 2024

  

QUESTIONS?

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(888) 378-2456
Key Takeaways

  • Almost all Illinois employers will likely have to provide a minimum of 40 hours of paid leave per year for employees to use for any reason.
  • Violations of the law could lead to a civil penalty of $2,500 for each offense, actual damages, compensatory damages, attorneys’ fees and costs, civil penalties, and equitable relief.

Discussion

The Illinois Paid Leave for All Workers Act (PLFAW) will provide almost all Illinois employees with the ability to take paid leave for any reason. The bill has not yet been signed but the Governor has indicated he will do so.

Accrual and Frontloading. Employees can accrue a minimum of 40 hours of paid leave during a designated 12-month period. Leave accrues at the rate of one hour for every 40 hours worked. Employers can also choose to frontload the leave on the first day of employment or the first day of a designated twelve-month period.

Carryover. Unused accrued leave will carryover but there is no requirement to provide more than 40 hours of paid leave in a designated twelve-month period. If employers are frontloading leave, there is no requirement to carry over unused leave.

Eligibility and Use. Employees cannot use paid leave until they have completed 90 calendar days of employment or March 31, 2024, whichever is later. Employers are also permitted to set a reasonable minimum increment in which leave can be taken of no less than two hours per day.

Qualifying Reasons. Employees do not have to provide a reason for taking leave. Employers also are not allowed to require documentation or certification of the need to take leave.

Documentation and Notice. Employers can require up to 7 days’ notice of foreseeable leave if there is a written policy in place outlining the notice requirements. Leave that is not foreseeable only requires notice as soon as practicable. A notice to post and distribute to employees will be provided by the Illinois Department of Labor. Read more

Minnesota: MNOSHA Adopts OSHA COVID-19 Recording and Reporting Requirements

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APPLIES TO

All Employers with MN Employees

EFFECTIVE

November 21, 2022

  

QUESTIONS?

Contact HR On-Call

(888) 378-2456
Key Takeaways

  • Minnesota healthcare and healthcare support service employers must comply with the recordkeeping and reporting requirements of the OSHA ETS related to COVID-19 positive status, hospitalization, or fatalities.
  • Violations can result in penalties of up to $75,000 per occurrence depending on the severity.

Discussion

Although the Federal Occupational Safety and Health Administration’s (OSHA) Emergency Temporary Standard (ETS) protecting healthcare workers was withdrawn, Minnesota OSHA (MNOSHA) adopted the recordkeeping and reporting provisions which were not withdrawn in the ETS.

These standards require employers of healthcare workers or healthcare support service workers of 10 or more to establish and maintain a COVID-19 log to record each instance where an employee is COVID-19 positive regardless of whether the exposure is connected to work. Additionally, employers must report each work-related COVID-19 fatality within 8 hours of the employer learning about the fatality. Each work-related COVID-19 in-patient hospitalization must be reported within 24 hours of the employer learning about the hospitalization. This is also regardless of when the fatality or hospitalization occurred. Employers of healthcare workers and healthcare support service workers should review the current recordkeeping and reporting requirements and update them for compliance.

Action Items

  1. Review the recordkeeping and reporting standards here.
  2. Review and update current procedures
  3. Have appropriate personnel trained on updated 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

New Jersey: Major Changes Coming to Mini-WARN Act!

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APPLIES TO

As Indicated

EFFECTIVE

April 10, 2023

  

QUESTIONS?

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(888) 378-2456
Key Takeaways

  • More New Jersey employers will have to comply with the state Mini-WARN Act when planning mass layoffs.
  • Changes to the Act also include mandatory severance.
  • Violations of the Act could result in a requirement to pay additional severance and compensatory damages which can include lost wages, benefits, and other remuneration plus attorney’s fees and costs.

Discussion

AB A4768 creates significant changes to New Jersey’s Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN). The changes were put on hold due to the COVID-19 pandemic and the declared state of emergency. However, New Jersey legislators removed the link between the state of emergency and the pause on the amendments thereby accelerating the effective date of the changes. NJ WARN applies to employers with 100 or more employees located anywhere in the United States as long as the employer has operated in New Jersey for more than three years. There are five important changes employers planning mass reductions in force should note:

Notice. Employers with 100 or more employees will be required to provide 90 days’ advance notice to affected employees prior to the discharge of the first employee. Currently, notice must be provided 60 days in advance.

Mandatory Severance. Employers will be required to provide discharged employees with severance pay equal to one week of pay for each full year of employment. Currently, severance is only paid as a penalty for failure to provide advance notice of mass layoff, termination of operations, or transfer of operations. A waiver to severance pay will not be effective without approval by the commissioner or a court of common jurisdiction. This would have significant impacts to severance agreements that also seek a release of claims. Note that there is a pending legal challenge to the severance requirement.

Lowered Threshold for Mass Layoff Definition. A covered mass layoff will trigger NJ WARN if, during any 30-day period, it impacts at least 50 employees at or reporting to an establishment even if less than 33% of the employees are impacted. Currently, the threshold is 500 employees at the establishment or 50 employees representing at least 33% of the total workforce of the establishment.

Part-Time Employees. Part-time employees will soon be counted in both the 100-employee threshold for covered employers and 50-employee threshold for termination of operations or a mass layoff. Part-time employees will also receive advanced notice and severance pay.

Definition of Establishment. An establishment can be a single location or a group of locations, including facilities located in the state. Employers will need to aggregate all of their locations in New Jersey to determine if the 50-employee threshold is met.

Action Items

  1. Review the AB A4768
  2. Have appropriate personnel trained on new requirements.
  3. Review reductions in force with legal counsel for compliance.
  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

Oregon: Non-Integral Security Screenings are not Compensable Time

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APPLIES TO

All Employers with OR Employees

EFFECTIVE

December 15, 2022

  

QUESTIONS?

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(888) 378-2456
Key Takeaways

  •  Time spent in employer-required security screenings is not compensable if it is not an integral or indispensable part of the employees’ principal activities.
  •  Employers who cannot meet the above exception should compensate employees for time spent waiting for and in security screenings to avoid wage and hour violations which can include substantial penalties as well as compensatory damages.

Discussion

In Buero v. Amazon.com Services, Inc., the Oregon Supreme Court stated that time spent waiting for and undergoing mandatory security screenings on employer premises is not compensable if the screenings are not integral and indispensable parts of an employee’s principal activities or are not a matter of contract, custom, or practice by the employer. Here, a warehouse employee claimed a violation of wage laws due to the time spent undergoing mandatory security screenings. Amazon screened employees at the end of a shift when workers exit the secured area of the warehouse. There were nine screening lanes with five express lanes. To expedite screenings, employees could also choose to store personal items in lockers outside the secure area.

The Court intended its ruling to be consistent with federal law which also requires compensable screenings to be either: 1) an integral and indispensable part of an employee’s principal activities; or 2) compensable as a matter of contract, custom, or practice. The Court also concluded that if the Oregon legislature intended a broad scope for compensable time, it would have done so. Oregon employers should review their preparatory and concluding activities to ensure they are not integral or indispensable to the employees’ principal activities in order to rely on this ruling.

Action Items

  1. Review security screening procedures.
  2. Update policies or handbooks to define compensable time.
  3. Have appropriate personnel trained on updated 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

Pennsylvania: Expanded Definition of Race, Sex, and Religious Creed

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APPLIES TO

All Employers with PA Employees

EFFECTIVE

Pending

  

QUESTIONS?

Contact HR On-Call

(888) 378-2456
Key Takeaways

  • Pennsylvania prohibitions on discrimination are expanded to include hairstyles, hair texture, sexual orientation, and all aspects of religious observation.
  •  Violations can result in civil penalties, criminal charges, and civil liability including compensatory and punitive damages.

Discussion

The Pennsylvania Human Relations Commission approved amendments to the Pennsylvania Human Relations Act (PHRA) and the Pennsylvania Fair Educational Opportunities Act to expand the definitions of race, gender, and religious creed. The regulations will include protective hairstyles and hair texture associated with race in the definition of race. In addition, the definition of sex includes sexual orientation.

Under the PHRA, prohibited discriminatory practices due to sex will include pregnancy, childbirth, and related medical conditions; breastfeeding, sex assigned at birth; gender identity or gender expression; affectional or sexual orientation, including heterosexuality, homosexuality, bisexuality, and asexuality; and differences of sex development, variations of sex characteristics, or other intersex characteristics. Religious creed will include all aspects of religious observation and practice in addition to belief.

Once the final rule is published in the Pennsylvania Bulletin, the new regulations will go into effect within 60 days of the publication date.

Action Items

  1. Review and update discrimination and harassment policies as well as trainings.
  2. Have appropriate personnel trained on expanded definitions.
  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

February Updates

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APPLIES TO

Varies

EFFECTIVE

Varies

QUESTIONS?

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(888) 378-2456

DOL and IRS Tackle Worker Misclassification

The Department of Labor (DOL) and Internal Revenue Service (IRS) published a Memorandum of Understanding for Employment Tax Referrals establishing a system to share information to assist in the identification of emerging and ongoing employment tax compliance issues related to misclassification of employees and independent contractors. The IRS intends to target business that lack a good-faith basis for worker misclassification which will result in substantial penalties. Employers should review their independent contractor processes and address any misclassification issues to mitigate any tax penalties.

Proposed USCIS Fee Increase

A dramatic increase has been proposed by the U.S. Citizenship and Immigration Services (USCIS) for fees for nonimmigrant visas and the permanent residency process. The proposed fee schedule is due to the fact that USCIS is self-funded and it also funds humanitarian programs. USCIS is accepting comments on the fee changes until March 3. A final regulation is expected this summer.

California: FAST Recovery Act Temporarily On Hold

On December 30, 2022, a temporary restraining order blocked AB 257 or the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act). The Act required the establishment of a Fast Food Council which would set minimum standards for wages, working hours, and working conditions related to health, safety, and welfare of fast food workers at restaurants with at least thirty establishments nationwide. The temporary restraining order is due to a legal challenge attempting to put provisions of AB 257 on the 2024 ballot. Employers should continue to monitor updates on the legal challenge.

Read more

Speak Out Act Restricts Employer Nondisclosure Agreements

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APPLIES TO

 All Employers

EFFECTIVE

TBD

  

QUESTIONS?

Contact HR On-Call

(888) 378-2456

On November 16, 2022, Congress passed the Speak Out Act prohibiting employers from forcing victims of sexual harassment and assault to maintain confidentiality in response to alleged abuse. Effective against any claim filed once the President signs the bill, which is expected any day, employers will no longer be able to enforce any nondisclosure agreement or non-disparagement agreement entered into prior to any sexual harassment and assault dispute. The Act’s preamble indicates Congress’s intent for the bill to apply to current and former employees, applicants, and independent contractors.

 

Employers may still enter into confidentiality agreements with claimants upon settlement of assault or harassment claims. However, the bill specifically allows states to implement more restrictive requirements on post-dispute agreements, like those already existing in California and other states. Employers may also still protect trade secrets and proprietary information through nondisclosure agreements. In light of these imminent changes, employers should immediately review their nondisclosure and nondisparagement agreements with legal counsel.

 

Action Items

  1. Review the bill here.
  2. Review nondisclosure and nondisparagement agreements with legal counsel.
  3. Review sexual harassment prevention programs to ensure ongoing compliance.
  4. Subscribers can call our HR Hotline at (833) 268-5531 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

OSHA Severe Violator Enforcement Program Expanded

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APPLIES TO

All Employers Subject to OSHA

EFFECTIVE

September 15, 2022

  

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Occupational Safety and Health Administration’s (OSHA) “Severe Violator Enforcement Program” (SVEP) addresses managing employers who are considered to be “severe violators” of safety rules, in part, by including them on a public list and subjecting them to increased inspection and scrutiny. OSHA has expanded the criteria that can land an employer in the SVEP to include receiving at least two repeat, willful, or failure-to-abate violations for any “high-gravity” serious violations. Violations issued under any standard can now cause an employer to be included on the SVEP list.

 

Employers on the SVEP list are inspected within one to two years to confirm resolution of violations and so OSHA can look for any similar violations. Depending on the extent of the compliance issues and the employer’s company structure, inspections may extend to other workplaces throughout the country.

 

Employers remain on the SVEP list for a minimum of three years, but may be removed after two years provided that employers agree to an enhanced settlement that includes use of a safety and health management system with seven elements from OSHA’s Recommended Practices for Safety and Health Programs.

 

Action Items

  1. Review OSHA’s announcement here.
  2. Review safety programs and procedures for compliance.
  3. Implement protocols in the event of an OSHA inspection.
  4. Subscribers can call our HR Hotline at (833) 268-5531 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

OFCCP Announces Changes to Functional Affirmative Action Plans

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APPLIES TO

Federal Contractors

EFFECTIVE

September 21, 2022

  

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Office of Federal Contract Compliance Programs (OFCCP) recently announced changes to functional Affirmative Action Plans (FAAP). The FAAP program allows federal contractors to create an affirmative action program based on business units, instead of having the program apply to the entire business. Key changes to Directive 2013-1 (Revision 3) are as follows:

  • Federal contractors with approved FAAPs must notify OFCCP within 60 calendar days of any changes to their primary corporate contact listed in the FAAP agreement.
  • Federal contractors with approved FAAPs must notify OFCCP when changes result in the creation or elimination of one or more functional business units.
  • OFCCP loosened its 60-day deadline to approve FAAP requests, now stating the agency will generally make decisions within 60 days but may require additional time to gather more information.
  • OFCCP also eliminated the requirement that it only use information the contractor provides to evaluate its FAAP request. OFCCP did not state the other ways they may use information provided.

Regulations specifically addressing modifications to functional business units involving remote work employees were not included in the new announcement, but may be forthcoming in future iterations of the directive.

 

Action Items

  1. Review the updated directive here.
  2. Have FAAP procedures updated as applicable.
  3. Subscribers can call our HR Hotline at (833) 268-5531 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

Clean Energy Employers Must Comply with Federal Prevailing Wage for New Tax Credits

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APPLIES TO

All Employers in Clean Energy Industry

EFFECTIVE

Pending

  

QUESTIONS?

Contact HR On-Call

(888) 378-2456

On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) of 2022. The IRA includes a 30% federal tax credit for those in private construction, alteration or repair of certain clan energy projects like solar, wind, geothermal, carbon sequestration, and electric vehicle charging stations. The tax credit can be taken by an owner/developer and their contractors and subcontractors. In order to take advantage of the tax credit, employers must comply with the federal prevailing wage provisions of the Davis-Bacon Act (Act).

 

The Act applies to contractors and subcontractors performing work on federally funded or assisted contracts and requires payment of wages set by the U.S. Department of Labor (DOL), depending on the worker’s classification. In addition to the prevailing wage, the IRA also requires employment of pre-set work hour percentages of apprentices participating in the DOL’s Registered Apprenticeship program or a state equivalent. Prior to the IRA, private sector construction had not been subject to the Act.

 

The U.S. Department of Treasury is in the process of issuing guidance, 60 days after which the IRA’s prevailing wage and apprenticeship requirements go into effect. Claiming tax credits without full compliance may lead to significant penalties. There is the ability to cure unintentional violations but only for a 60-day window of time after the Department of Treasury and IRS issue additional guidance. Employers unfamiliar with the Act’s requirements should review them carefully now before relying on qualifying for the tax credit.

 

Action Items

  1. Review the IRA and the Davis-Bacon Act
  2. Monitor U.S. Department of Treasury website for additional guidance.
  3. Train appropriate personnel on prevailing wage and apprenticeship requirements.
  4. Subscribers can call our HR Hotline at (833) 268-5531 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