September Updates

2022 EEO-1 Reporting Period Opens October 31, 2023

The Employment Opportunity Commission (EEOC) finally announced that the 2022 EEO-1 reporting period will open on October 31, 2023. The deadline for filing will be December 5, 2023. All employers with 100 or more U.S. employees and federal contractors with at least 50 U.S. employees are required to annually submit an EEO-1 report to the EEOC. Employers should look for updates on the 2022 EEO-1 data collection, including an updated Instruction Booklet and Data File Upload Specifications, on the EEOC’s website.

OFCCP to Review Use of AI in Employment

On August 24, 2023, the Office of Management and Budget approved a request from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) to revise the “Itemized Listing” that OFCCP uses to collect information from federal contractors that are selected for supply or service audits. Audited contractors must identify and provide information and documentation of policies, practices, or systems used to recruit, screen, and hire, including the use of artificial intelligence, algorithms, automated systems or other technology-based selection procedures. Employers should review this requirement with legal counsel should they be audited.

California: Late Arbitrator Payments Cannot be Cured by Arbitrator

California requires employers to pay all arbitration costs and fees within 30 days of the due date or risk waiving their right to enforce the arbitration agreement with their employee. On June 28, 2023, in Cvejic v. Skyview Capital, the California Second District Court of Appeal said that an arbitrator cannot cure a missed or late arbitration fee payment. There, an employer missed the deadline to pay the arbitrator’s fees. The arbitrator set a new deadline for which the employer made the required payment. The employee subsequently withdrew from the arbitration proceeding. The court ultimately said that there is no statutory authority for the arbitrator to permit an extension of the required payment. This ruling highlights the risk to employers who do not pay arbitration fees on time.

Edgewater, CO: Minimum Wage Ordinance

Edgewater, Colorado has enacted its own minimum wage ordinance, which is set to take effect on January 1, 2024. Edgewater’s ordinance applies to employers with one or more “covered” employees, which include individuals performing, or expected to perform, four or more hours of work for an employer in any given week in Edgewater. However, the ordinance does not address situations where an employer may not have a physical location within Edgewater but nevertheless sends employees to perform work within Edgewater. Beginning January 1, 2024, employers must pay employees a minimum wage of $15.02 per hour, which is set to be increased each subsequent year based on the ordinance’s pre-set minimum wages through 2028. The ordinance also lays out maximum tip credits and minimum cash wages for each year. Beginning in 2029, and each subsequent year, the minimum wage will be set by the city council based on increases in the Consumer Price Index for the Denver-Aurora-Lakewood Area. Alternatively, if the local minimum wage rate in Denver exceeds Edgewater’s CPI-adjusted rate, the new Edgewater minimum wage will match Denver’s.

Missouri: Mobile Devices Prohibited While Driving

Effective August 28, 2023, SB 398 prohibited commercial and noncommercial drivers in Missouri from operating a motor vehicle while using an electronic communication device. The law specifically prohibits: 1) physically holding or supporting an electronic communication device; 2) writing, sending, or reading any text-based communication which also includes social media interactions; 3) making a phone call, voice message, or one-way voice communication (except for when a hands-free feature is used); 4) engaging in electronic data retrieval or communication; 5) watching a video or movie; 6) manually entering in letters, numbers, or symbols into an application on the electronic communication device; and 7) recording, posting, sending, or broadcasting video (except for the sole purpose of continually monitoring operator behavior by recording or broadcasting video within or outside the vehicle). There are exceptions for certain individuals and circumstances including, but not limited to, law enforcement, reporting an emergency situation, or using an electronic communication device while the vehicle is lawfully stopped or parked. Penalties for violations include fines ranging from $50-$5,000 in addition to criminal charges or license suspension. Employers with employees driving for work purposes should review their driving policies and make updates as necessary.

New Hampshire: Minimum Wage Tip Credit Law is Amended

Effective September 26, 2023, SB 269 amends New Hampshire’s minimum wage tip credit to allow an employer to administer a tip pool without an employee requesting it, as long as the employer does not require or coerce employees into participating in the tip pool. The reference to “service charge” is also removed from the definition of what constitutes a tip, bringing New Hampshire’s tip credit in line with federal law.

Vermont: Payroll Contribution for Child Care Takes Effect

Effective July 1, 2024, H. 217 will require all Vermont employers with at least one employee subject to income tax withholding to pay the 0.44% Child Care Contribution on all covered wages paid to each employee. Up to 25% of the contribution may be withheld from the employees’ taxable wages. In doing so, an employer is required to remit any withheld employee share to the Vermont Department of Taxes as if the amount were withheld income tax.

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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