The Iowa Supreme Court recently weighed in on two cases involving Iowa’s drug testing law, clarifying employer obligations and testing processes.

HB 707 implements new fair chance rules for job applicants with a criminal history. First, employers cannot inquire into an applicant’s arrest history that did not result in a conviction. Second, when considering criminal records, employers must conduct an individual assessment of whether an applicant’s criminal history record has a “direct and adverse relationship” with the specific duties of the job that may justify denying the applicant the position. The individual assessment must include consideration of (1) the nature and gravity of the offense or conduct; (2) the time that has elapsed since the offense, conduct, or conviction; and (3) the nature of the job sought. Finally, employers must provide applicants with a copy of the background check report upon written request.

Because this is not a ban-the-box rule, employers can still make preemployment criminal history inquiries; however, they must now follow new rules once a background screen has been conducted. Employers must still comply with the federal Fair Credit Reporting Act requirements for conducting background checks.

Action Items

Minnesota employers are required to provide workers with certain pregnancy-related accommodations, including lactation breaks. As part of the Omnibus Jobs and Economic Growth Finance and Policy Bill, a new amendment expands on the existing protections in place.

More specifically, employers will be prohibited from reducing a lactating employee’s compensation for time spent expressing milk. Employers may request lactation breaks be scheduled concurrently with an employee’s normally schedule meal or rest periods but cannot dock the employee’s pay if the lactation break is taken outside those time frames. However, the employer’s obligation to accommodate lactation breaks is limited to the 12 months following the birth of an employee’s child.

Per the amendment, Minnesota’s regulations on nursing mothers, lactating employees, and pregnancy accommodations apply to all employers with at least 15 employees. The amendment removes any minimum service hours an employee must work per week in order to qualify for accommodations or protections under the statute.

Action Items

On July 8, 2021, New Jersey enhanced employment protections through a series of new laws aimed to prosecute misclassification of employees as independent contractors.

• A-5890/S3920 allows the labor commissioner to immediately seek a court injunction against alleged misclassification practices, rather than through traditional administrative law proceedings. It also allows the commissioner to issue stop-work orders across all worksites, not just where a violation occurred.
• A-5891/S3921 creates the Office of Strategic Enforcement and Compliance within the Department of Labor and Workforce Development (DOLWD) to enforce state wage, benefit, and tax laws.
• A-5892/S3922 expands insurance fraud under the New Jersey Insurance Fraud Prevention Act (NJIFPA) to include insurance premium evasion that occurs when misclassifying employees. Penalties are $5,000 for the first violation, $10,000 for the second violation, and $15,000 for each subsequent violation.

The newly designated powers of the commissioner allow for more swift and far-reaching prosecution of violators. Employers should take care with independent contractor designations to avoid potential work shutdowns and penalties.

Action Items

Oregon’s 2021 legislative session closed in June, passing a number of bills impacting several areas of employment practices. Key highlights include:

HB 2935: Anti-Discrimination Based on Hair. Effective January 1, 2022, Oregon’s CROWN Act expands anti-discrimination laws to cover physical characteristics historically associated with race, including specified hair styles and textures.