7th Circuit: Ministerial Exception Does Not Bar Hostile Work Environment Claims

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All Employers in IL, IN, WI with Ministerial Employees

EFFECTIVE

August 31, 2020

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In Demkovich v. St. Andrew the Apostle Parish, Calumet City, the Seventh Circuit Court of Appeal stated that the ministerial exception does not bar hostile work environment claims under federal employment discrimination laws. Religious organizations may claim exemption from anti-discrimination laws in employment relationships with employees who have ministerial duties that meet the ministerial exception. The Seventh Circuit stated that this exception may not extend to situations beyond hiring and firing decisions.

There, a church music director was gay and had diabetes and related medical conditions. The employee was ultimately terminated because he entered into a gay marriage. However, he alleged that while he was employed, his supervisor created a hostile work environment by regularly humiliating and belittling him based on his sexual orientation and disability statuses. The Seventh Circuit said that the employee’s hostile work environment claim could proceed under Title VII of the Civil Rights Act of 1964.

Specifically, the court stated that (1) the First Amendment does not bar all hostile environment claims by ministerial employees; (2) the risk of procedural entanglement in such cases is modest because religious organizations have no generalized claim to immunity from litigation or regulation; and (3) in hostile environment cases brought by ministerial employees, there is some risk of substantive entanglement, but that risk does not appear so severe that all such claims must be dismissed. As a result, employers in the Seventh Circuit should review their policies and practices to ensure compliance with anti-discrimination laws.

Action Items

  1. Have policies and practices to ensure compliance with anti-discrimination laws.
  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.

© 2020 ManagEase

California: Supplemental COVID-19 Sick Leave Bridges FFCRA Gap

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EFFECTIVE

As Indicated

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Governor Newsom signed into law AB 1867, which implements supplemental COVID-19 paid sick leave for certain employees who are not covered by the Families First Coronavirus Response Act (FFCRA), and for food sector workers, as follows.

  1. Eligibility: Private employers with 500 or more employees; healthcare providers and emergency responders exempt from the federal FFCRA regardless of size; and food sector workers (including delivery drivers) regardless of size. In order to be eligible, employees must leave their residence to perform work for their employer.
  2. Leave Amount: Employees are only entitled to the total amount of supplemental paid sick leave below, regardless of any change in employer.
    1. Full-time employees: 80 hours of supplemental paid sick leave; except that firefighters who are scheduled to work more than 80 hours in the two weeks preceding leave shall receive the equivalent amount in supplemental paid sick leave.
    2. Part-time employees: paid sick leave equal to (1) the total number of hours the employee is normally scheduled to work in a two-week period; (2) if variable schedule, 14 times the average number of hours the employee worked each day in the six months preceding the date the covered worker takes supplemental paid sick leave, or 14 times the average number of hours worked over the entire period if the employee has worked fewer than six months for the employer; or (3) if variable hour and working for the employer over a period of 14 days or fewer, the total number of hours the employee has worked for the employer.
  3. Usage: Paid sick leave may be used for an employee who is:
    1. Subject to federal, state, or local quarantine/isolation order related to COVID-19;
    2. Advised by a healthcare provider to self-quarantine/isolate due to concerned related to COVID-19; or
    3. Prohibited from working by the employer due to health concerns related to the potential transmission of COVID-19
  4. Rate: Supplemental paid sick leave must be paid a rate equal to the highest of the following, and subject to a maximum cap of $511/day or $5,110 in aggregate:
    1. The employee’s regular rate of pay for the last pay period;
    2. The state minimum wage; or
    3. The local minimum wage.
  5. Notice Requirements:
    1. Model notice: Employers of non-food sector workers must conspicuously display a model notice provided by the Labor Commissioner, or distribute the model notice electronically.
    2. Pay stubs: Employers must print the amount of available supplemental paid sick leave on wage statements starting the first pay period after September 9, 2020.

Employers who already provide supplemental paid sick leave pursuant to federal, state, or local laws may have such leave counted towards satisfying their leave obligation under AB 1867, so long as time off and pay rate complies with the requirements of AB 1867. However, the amount of supplemental paid sick leave is required in addition to paid sick leave already required by the state of California; except to the extent that employees received supplemental paid sick leave under Executive Order N-51-20.

Additionally, if large employers and employers of healthcare workers already provided supplemental paid leave between March 4, 2020 and September 19, 2020 for qualifying leave reasons, but did not pay the employee using at least the minimum pay rate required for supplemental paid sick leave, the employer may retroactively provide the employee with supplemental pay at the required pay rate, and those hours may count towards the total number of hours required for supplemental paid sick leave.

Supplemental paid sick leave for large employers and employers of healthcare workers is effective as of September 19, 2020. Supplemental paid sick leave for food sector workers is retroactive to April 16, 2020 when Executive Order N-51-20 was implemented. Supplemental paid sick leave expires for all applicable workers on December 31, 2020, or upon expiration of any federal extension of FFCRA, whichever comes later.

Action Items

  1. Read the text of the bill here.
  2. Review payroll systems to track and incorporate available supplemental leave balances on pay stub.
  3. Distribute notice of the supplemental paid sick leave to employees.
  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.

© 2020 ManagEase

California: CFRA Expands to Most Employers in 2021

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All Employers with 5+ CA Employees

EFFECTIVE

January 1, 2021

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The California Family Rights Act (CFRA) provides family and medical leave to employers that largely mirrors the federal Family and Medical Leave Act (FMLA), with a few differences. SB 1383 will make some significant changes in 2021, including the following.

  • CFRA will be expanded to employers with 5 or more employees.
  • The requirement that a number of employees work within 75 miles of the worksite to qualify is eliminated.
  • CFRA includes leave because of a qualifying exigency related to the covered active duty or call to covered active duty of an employee’s spouse, domestic partner, child, or parent in the U.S. Armed Forces.
  • It expands leave to care for others, including siblings, grandparents, grandchildren, domestic partners, children of domestic partners, and adult children (regardless of dependency).
  • It eliminates the limitation of 12 weeks total of baby bonding leave for both parents at the same employer. Each parent will be able to each receive 12 weeks of leave.
  • It eliminates the exception to reinstate salaried employees following leave if they are among the highest paid 10 percent of employees.

Additionally, employers with 50 or more employees may have to provide 12 weeks of leave under FMLA and another 12 weeks of leave under CFRA because of the expanded definition of “family member” where leave is available under CFRA, but not FMLA.

Finally, because CFRA will expand to employers with 5 or more employees, including leave following the birth, adoption, or placement of a child, the New Parent Leave Act will expire at the end of 2020.

Action Items

  1. Review SB 1383 here.
  2. Have leave policies and leave administration forms updated.
  3. Have managers trained on the new leave 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.

© 2020 ManagEase

California: New COVID-19 Laws Expands Workers’ Comp Coverage, Rapid Notice Requirements

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All Employers with CA Employees

EFFECTIVE

As Indicated

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On September 17, 2020, Governor Newsom signed AB 685 and SB 1159 into law.  Both pieces of legislation are COVID-19 related.  AB 685 imposes new rapid reporting requirements for COVID-19 cases in the workplace, and SB 1159 expands availability of workers’ compensation coverage for COVID illnesses for certain employees.

AB 685: COVID-19 Reporting. Effective from January 1, 2021 to December 31, 2022, AB 685 requires any employer who receives notice of even potential exposure to COVID to take the following steps within one business day of receipt of the notice:

  1. Provide written notice to all employees and employers of subcontracted employees, who were on premises at the same worksite as the individual with COVID-19 exposure, within the infectious period. The written notice should indicate that the individuals may have been exposed to COVID and must be delivered in the manner normally used to communicate employment-related information, such as hand delivery, e-mail, or text message.
  2. Provide written notice to the exclusive representative, if any, of the employees, containing the same information required to be reported in the Cal-OSHA Form 300 injury and illness log, regardless of whether or not the employer is ordinarily required to maintain the 300 log.
  3. Provide all employees and their exclusive representative any information related to COVID-19 benefits to which the employees may be entitled under federal, state, or local laws. This may include workers’ compensation, COVID-related leave, sick leave, state or federal mandated leave, and anti-retaliation/discrimination protections.
  4. Notify all employees, employers of subcontracted employees, and their exclusive representative on disinfection/safety plan(s) the employer will implement, per the Center for Disease Control’s guidelines.

The above reporting requirements do not apply to employees who conduct COVID testing/screening, or provide direct care or treatment to individuals who have tested positive, are seeking confirmation, or are in quarantine or isolation related to COVID, as part of their job duties.

If the number of reported cases meet the definition of a COVID-19 outbreak per the State Department of Public Health, employers have additional reporting obligations to their local public health agency, which must be completed within 48 hours.

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California: Independent Contractor Evolution Continues

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All Employers with CA Employees

EFFECTIVE

September 4, 2020

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AB 2257 amends and reconfigures AB 5 to expand exceptions to the definition of “independent contractor,” which uses the ABC rule set forth in Dynamex, and reverts instead to the Borello test for those exceptions. Some of the expanded exceptions include the following:

  • Business-to-business relationships must meet a 12-factor test to then use the Borello test to determine independent contractor status. Additionally, the relationships must include sole proprietors or formed business entities, otherwise the ABC test must be followed.
  • Referral agency exception was expanded to include things like consulting, youth sports coaching, wedding planning, caddying, and interpreting services, consulting.
  • Professional services exception was expanded to include certain videographers and photo editors, specialized performers who teach “master classes,” and real estate appraisers. Additionally, some of the definitions for excepted professions were revised.
  • Miscellaneous services were identified as being subject to the Borello test, under qualifying circumstances, such as recording artists, musicians, performance artists, freelance writers and photographers, photojournalists, photo editors, videographers, and other content contributors, landscape architects, certain field services for the insurance and financial services industries, manufactured housing sales, single-engagement events, international and cultural exchange services, and competition judging.

Otherwise, the Dynamex test remains in effect. Notably, California Proposition 22 provides further exceptions to AB 5 for rideshare and delivery drivers, if passed by voters in November. Continue to look for updates on this topic.

Action Items

  1. Review AB 2257 here.
  2. Have independent contractor relationships reviewed by legal counsel.
  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.

© 2020 ManagEase

California: Additional List of Recently Enacted, New Laws

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As Indicated

EFFECTIVE

As Indicated

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AB 979 | January 1, 2021 – Publicly traded companies whose principal executive offices are located in California must have at least one director from an “underrepresented community” on their corporate board by the end of 2021, which number increases by the end of 2022 depending on board size. Note that there is already litigation pending on the legality of this bill.

AB 1281 | January 1, 2021 – The extends California Consumer Protection Act (CCPA) exemption for employee, job applicant, and independent contractor data for one year (i.e., until January 1, 2022).

AB 1512 | September 30, 2020 – Registered private security officers employed by registered private patrol operators, covered by a collective bargaining agreement that states they be paid at least $1 more per hour than the state minimum wage, can be required to remain on the premises during rest periods and to remain on call, and carry and monitor a communication device, during rest periods. The employee must be permitted to restart their rest period as soon as practicable if their rest period is interrupted.

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San Diego, CA: Emergency Worker Rehire and Retention Ordinances Passed

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As Indicated

EFFECTIVE

September 9, 2020

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The San Diego City Council passed emergency ordinances implementing rehire and retention requirements for certain employers in the commercial property, hotel, and event center industries.  The employer eligibility requirements vary depending on the industry, but the ordinances generally require the business to provide specific protections to laid-off employees, including the first right to available positions, notice of layoffs, and record retention requirements.

Rehire Ordinance

Covered employers.  The new protections apply to the following employers:

  • Event Center employers with a premises of 50,000 square feet or 5,000 seats used for public performances;
  • Hotels employers with a hotel of at least 100 guest rooms located in the city of San Diego; and
  • Commercial property employers with premises located in San Diego employing 10+ janitorial, maintenance, or security service employees.

Covered employees.  The protections afforded by the ordinance apply to “laid-off employees,” defined as individuals who:

  • Perform at least 2 hours of work within the city of San Diego in a particular week;
  • Have at least six months of service with the employer (or three months or more in the 12 months preceding March 4, 2020);
  • Were separated from service or failed to be scheduled for customary seasonal work on or after March 4, 2020 and before the termination of the statewide Declaration of Emergency;
  • Were terminated due to government shutdown order, lack of business, reduction-in-force, or other economic and non-disciplinary reason; and
  • Are not managers, supervisors, or confidential employees.

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San Francisco, CA: Emergency Protections for Workers Who Test Positive for COVID-19

APPLIES TO

All Employers with San Francisco, CA Workers and Applicants

EFFECTIVE

September 11, 2020

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An emergency ordinance implemented September 11, 2020 now offers temporary protections to workers and job applicants who test positive for COVID-19, as well as those who are currently or have previously isolated due to COVID-19 symptoms or exposure.  These protections apply to workers or applicants within the geographic boundaries of San Francisco, inclusive of independent contractors who have performed at least 16 hours of work for the employer.

Under the emergency ordinance, employers are prohibited from taking adverse action (e.g., discharging or threatening to discharge, suspending, disciplining, reducing benefits, etc.) against workers who are absent, unable to work, or request time off from work due to a COVID-19 diagnosis, exposure, or past or present quarantine, regardless of whether or not the worker is eligible to take paid or unpaid leave under any employer, state, or federal benefit program.

Similarly, employers may not count absences or inability to work for COVID-19 related reasons in any disciplinary or other adverse employment actions.  On the other hand, an employer may not allow a worker who has experienced symptoms of or been confirmed to have a COVID-19 infection to return to work unless the worker is consistent with the Local Health Officer’s return-to-work guidance.

For applicants, employers are prohibited from rescinding an employment or contract offer based on COVID-19 related reasons. If an applicant cannot start work because of COVID-19 related reasons, the employer is expected to reasonably accommodate the applicant by scheduling a later start date.

This temporary ordinance expired 61 days after enactment, unless reenacted by the San Francisco Board of Supervisors.

Action Items

  1. Read the text of the emergency ordinance here.
  2. Train supervisor staff and hiring managers on the expanded protections for COVID-19 related absences.
  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.

© 2020 ManagEase

Michigan: State Supreme Court Puts COVID-19 Protections in Flux

APPLIES TO

All Employers with MI Employees

EFFECTIVE

October 2, 2020

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On October 2, 2020, the Michigan Supreme Court stated that the Emergency Powers of the Governor Act of 1945 (EPGA) was an unconstitutional delegation of power to the governor, and the Emergency Management Act (EMA) did not grant the governor the power to issue or renew any executive orders related to the COVID-19 pandemic after 28 days without legislative approval. Governor Whitmer has been relying upon the EPGA or EMA to issue over 100 emergency executive orders to manage the impact of COVID-19 on the state. This ruling essentially nullifies those executive orders. There is also a dispute over when the Court’s ruling will go into effect. At the very latest, it will be in effect by October 30, 2020.

In the meantime, state and local agencies are working to fill the gap that is left by the state supreme court’s ruling. For example, the Michigan Department of Health and Human Services (DHHS) issued an emergency order prohibiting certain gatherings based on size (excluding the workplace) and mandating masks in most circumstances (including in the workplace). The order expires October 30, 2020. Counties and localities are also issuing their own emergency orders requiring masks, social distancing, and other protective measures, such as Oakland County, Washtenaw County, and Ingham County.

Additionally, the Michigan Occupational Safety and Health Administration (MIOSHA) adopted an Interim Enforcement Plan providing penalties for an employer’s failure to keep employees safe, such as failure to maintain social distancing or require face coverings. Many of the requirements contained in Governor Whitmer’s executive orders are mirrored in MIOSHA’s guidance.

Employers should continue to monitor the situation closely as changes arise. Keep in mind that whatever requirements remain or are put in place are the minimum requirements for employers to follow; and employers may implement more rigorous standards for keeping employees safe.

Action Items

  1. Review state and local guidance for keeping workers safe in the workplace.
  2. Update safety protocols as applicable.
  3. Have employees trained on required protocols.
  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.

© 2020 ManagEase

New York, NY: Required Paid Sick Leave Amended to Align with State Requirements

APPLIES TO

All Employers with NY, NY Employees

EFFECTIVE

September 30, 2020

QUESTIONS?

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New York City recently updated its Earned Safe and Sick Time Act (ESSTA) to align with the New York State Sick Leave Law (NYSSLL), as well as incorporate additional changes. Key updates include:

  • Eligibility: ESSTA now applies to employer of four or fewer employees that had a net income of one million dollars or more during the previous tax year.
  • Pay: Employees must be paid their regular rate of pay at the time sick leave is taken, without allowing for any tip credit or tip allowance.
  • Amount of Sick Leave: Employers with 99 employees or less must provide 40 hours of sick leave per year; employers with 100 employees or more must provide 56 hours of sick leave per year.
  • Usage: Employees are permitted to use their full allocation of sick leave in the year, and carry over sick leave balances to the next year up to their allocation amount. Employees may use sick leave as it is accrued; there is no waiting period. Employees may use sick leave for domestic violence-related issues.
  • Expense Reimbursement: If an employer requires documentation from an employee to support their absence for more than three consecutive workdays, the employer must reimburse the employee for charges from the employee’s healthcare provider to provide the required documentation.
  • Protections: Employees are protected from retaliation for using sick leave.
  • Required Notice: Employee notice of rights must be posted in the workplace, given to employees upon hire, and given to existing employees within 30 days of the law’s change.
  • Wage Statements: Sick leave accrued, used, and total balance must be listed on the employee’s pay stub or other written document each pay period.

Additionally, domestic workers now receive the same benefits as other workers. There are also additional penalties and enforcement actions against employers who fail to comply.

Action Items

  1. Review the amended law here.
  2. Have sick leave policies updated.
  3. Implement notice requirements and update wage statements.
  4. Have supervisors trained on new requirements.
  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.

© 2020 ManagEase