Second Circuit: Equal Pay Claims are Easier to Reach for Employees

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All Employers with CT, NY, and VT Employees

EFFECTIVE

December 6, 2019

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In Lenzi v. Systemax, Inc., the Second Circuit Court of Appeal addressed a gender discrimination claim under Title VII based on unequal pay. There, the court stated that a female employee, claiming she was paid less than the men who also held Vice President titles within the company, only needed to show that she was discriminated against based on her sex. She did not need to show that she was paid less than her male peers or that they held substantially equal positions to hers.

Essentially, the court distinguished the standards of proof required between unequal pay claims brought under Title VII of the Civil Rights Act of 1964 versus under the Equal Pay Act of 1963, making the bar for equal pay claims lower under Title VII. Employers should expect to see more Title VII claims for allegations of unequal pay based on sex discrimination.

Action Items

  1. Have a compensation audit conducted to review equal pay.
  2. Have applicable managers trained on setting pay rates.
  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: AB 5 Updates for Independent Contractors

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All Businesses with CA Independent Contractors

EFFECTIVE

As Indicated

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(888) 378-2456

On January 1, 2020, AB 5 went into effect. It essentially codified the ruling in Dynamex Operations West, Inc. v. Superior Court, which implemented an ABC test for determining whether a worker is an employee or an independent contractor. However, the bill also broadened the application of the ABC test and add a slew of exemptions for certain types of workers under certain circumstances.

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California: AB 51 Update – Mandatory Arbitration Agreements are Back In?

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All Employers with CA Employees

EFFECTIVE

January 31, 2020

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(888) 378-2456

As of January 1, 2020, AB 51 prohibited employers from requiring job applicants and employees to enter into arbitration agreements. However, on December 30, 2019, a federal district court issued a temporary restraining order preventing the state from enforcing the bill while a request for preliminary injunction was reviewed. After extensive legal argument, on January 31, 2020, the court issued a preliminary injunction with respect to arbitration agreements covered by the Federal Arbitration Act (FAA), preventing the bill from going into effect while its legality is resolved in court. On February 10, 2020, the court issued its ruling supporting the preliminary injunction. Employers with arbitration agreements that are not covered by the FAA (e.g., agreements with interstate truckers) are still subject to the terms of AB 51.

The legal community appears to uniformly indicate that this development means that employers subject to the FAA can continue to use mandatory arbitration agreements until further development in the federal court case challenging the bill. However, employers are recommended to consult with legal counsel on the best course of action before determining next steps.

Action Items

  1. Review arbitration agreements with legal counsel in light of the recent development.
  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: FMCSA Preempts State Meal and Rest Requirements, But Don’t Jump on the Bandwagon Yet!

APPLIES TO

Employers of CA Passenger-Carrying Commercial Motor Vehicle Drivers

EFFECTIVE

January 13, 2020

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(888) 378-2456

The Federal Motor Carrier Safety Administration (FMCSA) recently granted a petition from the American Bus Association (ABA), stating that California’s meal and rest period rules are preempted by federal law, which governs passenger-carrying commercial motor vehicle drivers’ hours of service requirements. Specifically, in contrast with prior challenges, the FMCSA said that state meal and rest period requirements are laws on commercial motor vehicle safety, which is regulated by federal law. Moreover, the meal and rest period rules have no safety benefit, are incompatible with federal regulations, and cause an unreasonable burden on interstate commerce.

While this may seem like a done deal, employers must still be cautious of enforcement of meal and rest period requirements in California. It is unclear if California will challenge FMCSA’s ruling, or what its next steps will be. Employers are strongly urged to consult with legal counsel before taking any steps that would violate state wage and hour laws. Continue to look for updates on this topic.

Action Items

  1. Review the FMSCA opinion 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.

© 2020 ManagEase

Colorado: Wage and Hour Change is a Comin’!

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All Employers with CO Employees

EFFECTIVE

March 16, 2020

QUESTIONS?

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(888) 378-2456

On January 22, 2020, the Colorado Department of Labor and Employment (CDLE) published a final rule for the Colorado Overtime and Minimum Pay Standards (COMPS) Order #36, with sweeping changes to the state’s wage and hour laws. Specifically, COMPS replaces the Colorado Minimum Wage Order in an attempt to provide clarity to the rules. Most significantly, COMPS will now apply to all industries.

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Connecticut: New Law Codifies “80/20” Rule for Compensating Tipped Employees

APPLIES TO

All Employers with CT Employees in Hospitality and Service Industries

EFFECTIVE

April 1, 2020*

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Hospitality employers who take tip credits when compensating employees will be relieved to hear that Connecticut’s legislation has made new strides to clarifying how tipped employees must be paid.  The recently-passed Public Act 19-1 requires the Connecticut Labor Commissioner to adopt regulations codifying the federal “80/20” rule.  The Act requires the Labor Commissioner to post a notice of intent to adopt these regulations by April 1, 2020, though the actual effective date of the rule is not yet clear.

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New Jersey: Final Regulations for Statewide Paid Sick Leave Now Available

APPLIES TO

All Employers with NJ Employees

EFFECTIVE

January 6, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The New Jersey Department of Labor and Workforce Development recently released a 53-page document providing final regulations and enforcement guidance on the statewide Earned Sick Leave Law (ESLL).  The final regulations do not make any substantive changes to the ESLL, but rather provide responses and clarification to concerns expressed during the public comment period of the proposed regulations.

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New York: Statewide Salary History Ban Goes into Effect

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All Employers with NY Employees

EFFECTIVE

January 6, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

New York kicks off 2020 with a statewide salary history ban.  Like other similar laws, the new regulation is intended to address wage differentials attributed to gender.  Public and private employers alike are prohibited from asking applicants about prior salary history information (including compensation and benefits), or from seeking such information from other sources, verbally or in writing.  Additionally, employers are prohibited from relying on salary history information as a factor in determining whether or not to interview a candidate, or what salary level to offer.

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Pennsylvania: Four Years Later, Paid Sick Leave Comes to Pittsburgh

APPLIES TO

All Employers with Pittsburgh, PA Employees

EFFECTIVE

March 15, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Pittsburgh Paid Sick Days Act was initially passed in August 2015, but met legal challenges that delayed its implementation until now.  The ordinance will finally go into effect on March 15, 2020.  The Mayor’s Office on Equity has published official guidelines on the Ordinance, detailing requirements for employers.  Below are key provisions of the ordinance.

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February Updates

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Varies

EFFECTIVE

Varies

QUESTIONS?

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(888) 378-2456

This Short List addresses the following topics:
  1. IRS Mileage Rates for 2020
  2. Fair Chance Act Now Applies to Federal Contractors and Agencies
  3. ACA “Cadillac Tax” Repealed
  4. California: Employer Fails to Provide Legal Business Name on Wage Statement
  5. Michigan: Paid Sick Leave and Minimum Wage Update
  6. New Jersey: Medical Marijuana is a Reimbursable Medical Expense
  7. New York: Tipped Workers in Some Industries Must Soon be Paid Full Minimum Wage
  8. New York: Companies Must Report Number of Women on Boards of Directors
  9. New York: Farm Laborers Fair Labor Practices Act on Temporary Hold

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