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IL, CA, MI, DC, NY and Federal Labor Law Updates

IL, CA, MI, DC, NY and Federal Labor Law Updates

Schiff Hardin’s Labor and Employment Group presents our annual legislative replace, summarizing laws slated to take impact in 2019 underneath federal regulation and in Illinois, California, New York, Michigan, and District of Columbia.

Federal

Government Order 13658 Minimal Wage Improve: The hourly wages of staff working underneath federal contracts coated underneath Government Order (EO) 13658 will obtain one other increase by the Secretary of Labor, who adjusts the speed yearly for inflation. Beginning January 1, 2019, the minimal wage for workers engaged on or with coated contracts is elevated to $10.60/hour, and the minimal money wage for tipped staff performing work on or with coated contracts usually have to be $7.40/hour. The up to date poster setting forth the brand new charges is out there right here.

Spiritual and Ethical Exemptions for Contraceptive Protection: Present regulation mandates that employers should present contraceptive providers to staff by way of their insurance coverage. Efficient January 14, 2019, sure employers will probably be exempt from the mandate and won’t be required to offer such protection if the employer objects on the idea of a sincerely held spiritual or ethical perception. The ethical exemption doesn’t apply to publically traded firm employers and neither the spiritual nor the ethical exemption applies to authorities employers. See 45 C.F.R. § 147.132 (spiritual exemption); 45 C.F.R. § 147.133 (ethical exemption). On December 13, 2018, the Ninth Circuit affirmed a preliminary injunction that forestalls the brand new guidelines from going into impact in California, Delaware, Virginia, Maryland, and New York.

Removing of Incentive Packages from EEOC Wellness Guidelines: Efficient January 1, 2019, the motivation parts of the EEOC’s wellness guidelines underneath the People with Disabilities Act (ADA) and Genetic Info Nondiscrimination Act (GINA) have been eliminated. The eradicated guidelines had permitted employers to supply staff as much as 30% off insurance coverage premiums if the worker participated in an employer-sponsored wellness program. On December 20, 2018, the EEOC revealed guidelines eradicating these incentive provisions, pursuant to a choice from the U.S. District Courtroom for the District of Columbia holding that the incentives might render the wellness program involuntary and in battle with the ADA and GINA. The ADA and GINA permit staff to reveal protected well being or genetic info, as long as the disclosure is voluntary.

OSHA Last Rule for Crane Operators: The Occupational Security and Well being Administration (OSHA) issued a last rule relating to certification and coaching necessities for crane operators. The last rule turned efficient on December 9, 2018, and the analysis and documentation necessities have to be accomplished by February 7, 2019.

Illinois

Equal Pay Act Modification: Efficient January 1, 2019, the Illinois Equal Pay Act (IEPA) prohibits employers from paying black staff at a fee lower than the speed paid to non-black staff for a similar or considerably comparable work on a job that requires equal talent, effort, and duty and is carried out underneath the identical circumstances. As with equal pay claims on the idea of intercourse, the IEPA accommodates an exception for funds made beneath a seniority system, benefit system, a system measuring earnings by amount or high quality, or a differential based mostly on any issue aside from race.

Expense Reimbursement: Underneath an modification to the Illinois Wage Cost and Assortment Act (IWPCA), employers should reimburse staff for all crucial bills or losses incurred by the worker associated to their job if the bills have been approved or required. To be reimbursable, an worker request have to be submitted no later than 30 calendar days after the worker incurs the expense, however an employer’s coverage might present for an extended submission interval. Employers might not require staff to submit a receipt to obtain the reimbursement; a signed, written assertion submitted by the worker have to be accepted as enough proof. The regulation turned efficient January 1, 2019. Employers which have BYOD insurance policies, or permit or require staff to work remotely, could also be impacted by this modification, and ought to contemplate, with the help of counsel, whether or not device-related bills must be reimbursed. Reimbursement shouldn’t be required the place staff don’t comply with firm reimbursement tips, so a rigorously drafted expense reimbursement coverage might restrict employer publicity.

Army Depart: Efficient January 1, 2019, the Illinois Service-Member Employment and Reemployment Rights Act (ISERRA) mixed and clarified authorized protections for service member staff underneath a number of present state legal guidelines and repealed the state’s Army Depart of Absence Act, the Public Worker Armed Providers Rights Act, the Municipal Staff Army Lively Obligation Act, and the Native Authorities Staff Advantages Continuation Act. ISERRA additionally incorporates the advantages and protections beneath the federal Uniformed Providers Employment and Reemployment Rights Act (USERRA) and expands the definition of army service. For personal sector employers, ISERRA additionally supplies a framework for assigning efficiency scores to staff on army depart. For the interval of army depart, staff have to be credited with a efficiency score that’s no decrease than the typical of the three years instantly previous the depart and no decrease than the newest efficiency score. The regulation requires coated employers to offer discover to coated service members and/or show a posting, out there right here and right here.

Prepare dinner County/Chicago Minimal Wage Improve: The minimal wage in Chicago will improve on July 1, 2019 to $13.00/hour, beneath Chicago’s Minimal Wage Ordinance enacted in 2014. The minimal wage in Prepare dinner County will improve on July 1, 2019 to $12.00/hour, underneath Prepare dinner County’s Minimal Wage Ordinance enacted in 2016. The minimal wage price for Illinois staff working outdoors of Prepare dinner County and/or Chicago will stay unchanged at $eight.25/hour.

New Metropolis of Chicago Enforcement Company: The Division of Shopper Affairs and Shopper Safety not handles worker complaints alleging violations of Chicago’s employment ordinances. Efficient January 1, 2019, the brand new Workplace of Labor Requirements (OLS) is liable for investigating and implementing Chapter 1-24 of the town’s employment ordinances, which incorporates its minimal wage and sick depart legal guidelines. The OLS won’t be liable for implementing legal guidelines underneath the Chicago Human Rights Ordinance, nor will the OLS alter the powers or duties of the Chicago Fee on Human Relations.

California

Minimal Wage: The state of California has carried out a minimal wage improve. Efficient January 1, 2019, the minimal wage for employers with 25 or fewer staff is $11.00/hour and the minimal wage for employers with greater than 25 staff is $12.00/hour.

As well as, many municipalities in California have elevated their minimal wages past the statewide minimums:

Metropolis

Minimal Wage

Efficient Date

Cupertino

$15.00/hour

Jan. 1, 2019

El Cerrito

$15.00/hour

Jan. 1, 2019

Los Altos

$15.00/hour

Jan. 1, 2019

Los Angeles (25 or fewer staff)

$13.25/hour

Jan. 1, 2019

Los Angeles (greater than 25 staff)

$14.25/hour

Jan. 1, 2019

Redwood

$13.50/hour

Jan. 1, 2019

Richmond

$15.00/hour

Jan. 1, 2019

San Diego

$12.00/hour

Jan. 1, 2019

San Jose

$15.00/hour

Jan. 1, 2019

Sunnyvale

$15.65/hour

Jan. 1, 2019

San Mateo (citywide)

$15.00/hour

Jan. 1, 2019

San Mateo (501(c)(three) nonprofits)

$13.50/hour

Jan. 1, 2019

Santa Clara

$15.00/hour

Jan. 1, 2019

Malibu (25 or fewer staff)

$13.25/hour

Jul. 1, 2019

Malibu (greater than 25 staff)

$14.25/hour

Jul. 1, 2019

Milpitas

$15.00/hour

Jul. 1, 2019

Mountain View

$15.65/hour

Jan. 1, 2019

Pasadena (25 or fewer staff)

$13.25/hour

Jul. 1, 2019

Pasadena (greater than 25 staff)

$14.25/hour

Jul. 1, 2019

San Francisco

$15.00/hour + Value of dwelling adjustment

Jul. 1, 2019

San Leandro

$14.00/hour

Jul. 1, 2019

Santa Monica (25 or fewer staff)

$13.25/hour

Jul. 1, 2019

Santa Monica (greater than 25 staff)

$14.25/hour

Jul. 1, 2019

 

Applicant Legal Historical past: Efficient January 1, 2019, SB 1412 limits employers’ capacity to acquire candidates’ legal conviction historical past or use such info in making hiring selections to 4 situations: 1) if, in the course of the course of his or her employment, the worker can be required to own or use a gun; 2) if the applicant with a specific conviction is prohibited, by regulation, from holding the place utilized for, even when the conviction is sealed, statutorily eradicated, judicially dismissed after probation, or expunged; three) if the employer is prohibited by regulation from hiring an applicant with a selected conviction, even when the conviction is sealed, statutorily eradicated, judicially dismissed after probation, or expunged; or four) if the employer is remitted by regulation to acquire from the applicant details about a selected conviction, even when the conviction is sealed, statutorily eradicated, judicially dismissed after probation, or expunged.

Applicant and Worker Wage Historical past: AB 2282, efficient January 1, 2019, clarifies present regulation that restricts employers from inquiring into the wage historical past of job candidates. Underneath present regulation, enacted in 2017 as AB 168, employers can’t inquire about an applicant’s wage historical past or advantages, or depend on wage historical past in figuring out whether or not to supply employment and what wage to supply. AB 168 additionally requires employers to offer a place’s pay scale to an applicant upon affordable request. AB 2282 defines sure phrases, together with “pay scale” (now outlined to imply wage or hourly wage vary); “reasonable request” (now outlined to imply a request made after an applicant has accomplished an preliminary interview with the employer); and “applicant” (now outlined to imply a person who’s in search of employment with the employer and is just not presently employed with that employer in any capability or place). AB 2282 additional clarifies that employers might ask candidates about their wage expectations with out violating the regulation’s prohibition. Lastly, AB 2282 clarifies that an employer could make compensation selections for a present worker based mostly on that worker’s present wage, as long as any ensuing wage differential is justified by a number of of the AB 168 elements: 1) a seniority system; 2) a system measuring earnings by high quality or amount of manufacturing; three) a bona fide issue aside from these prohibited together with schooling, coaching, or expertise, that’s job associated; or four) a benefit system.

Employment References: Underneath present California regulation, sure communications are privileged and subsequently can’t be used as a foundation for a defamation or libel declare by a former worker. For instance, present regulation authorizes an employer to reply whether or not or not the employer would rehire an worker. Efficient January 1, 2019, AB 2770 provides to these privileged communications info relating to sexual harassment grievance(s) relating to the previous worker, if the grievance was made with out malice and based mostly on credible proof.  The privilege additionally covers communications between the employer and individuals relating to such a grievance of sexual harassment. AB 2770 additionally authorizes an employer to reply, with out malice, whether or not the employer would rehire the previous worker and whether or not or not a choice to not rehire is predicated on the employer’s willpower that the previous worker engaged in sexual harassment. On this context, “malice” means statements made with full disregard for the reality, or statements made out of spite, ailing will, or hatred in the direction of the alleged harasser.

Gender Equality on Boards of Administrators: SB 826 requires that each one publicly held firms with principal government workplaces within the state of California have a selected variety of ladies on their boards of administrators. By December 31, 2019, all publicly held firms should have no less than one lady on their board of administrators; by December 31, 2021, all publicly held firms with a five-member board should have at the very least two ladies administrators, and publicly held firms with six or extra board members should have no less than three ladies administrators. An organization’s first violation may end up in a effective as much as $100,00zero, and subsequent violations may end up in fines of as much as $300,00zero per violation.

Sexual Harassment Coaching: Efficient January 1, 2019, SB 1343 requires all employers with 5 or extra staff to offer a minimal of two hours of sexual harassment coaching to all supervisory staff, and a minimal of 1 hour of sexual harassment coaching to all nonsupervisory staff, by January 1, 2020. Employers should present this coaching as soon as each two years thereafter.

California Truthful Employment and Housing Act Modification: Efficient January 1, 2019, SB 1300 amends the FEHA to offer that: 1) employers might (however aren’t required to) present worker bystander intervention coaching that features steerage on find out how to allow bystanders to acknowledge probably problematic behaviors within the office and encourage bystanders to take motion once they observe such behaviors; 2) employers are liable for every type of illegal harassment (not simply sexual harassment) by nonemployees (comparable to candidates, volunteers, interns, contract staff, and so forth.); and three) a defendant that prevails in a FEHA lawsuit is probably not awarded its lawyer’s charges and prices until the courtroom finds the lawsuit was frivolous, unreasonable, or groundless when introduced, or that the plaintiff continued to litigate after it clearly turned so. SB 1300 additionally restricts an employer’s capability to require FEHA waivers from staff.

Phrases of Employment Contracts and Settlement Agreements: A number of legal guidelines going into impact on January 1, 2019 impose new restrictions on the phrases of employment-related agreements, together with employment contracts and settlement agreements.

– SB 3109 prohibits and voids any contract or settlement provision that waives a celebration’s proper to testify in a authorized continuing regarding sexual harassment or felony conduct on the a part of the opposite celebration or the opposite celebration’s staff or brokers.

– SB 820 voids any provision in a settlement settlement to settle a lawsuit or administrative grievance that forestalls a celebration from disclosing “factual information” about sexual harassment or associated retaliatory conduct. SB 820 applies to settlements of claims made in an administrative or civil motion for sexual harassment beneath California Civil Code part 51.9, employment-related harassment or discrimination based mostly on intercourse, failure to stop such discrimination or harassment, or an act of retaliation for reporting such harassment or discrimination. SB 820 creates an exception for a provision that shields the id of the claimant and all information that would result in the invention of his or her id, if the supply is included inside the settlement settlement on the request of the claimant. It additionally supplies an exception for a confidentiality provision that precludes the disclosure of the settlement quantity.

– SB 1300 makes it an illegal employment follow for employers to require staff to agree, as a situation of employment, to launch FEHA claims or chorus from disclosing details about “unlawful acts in the workplace.” This prohibition doesn’t prolong to an settlement that may be a negotiated decision of a lawsuit, an company grievance, or an inner grievance introduced by an worker. In such instances, the employer continues to be capable of get an enforceable launch and require confidentiality regarding allegedly illegal acts. SB 1300 amends the FEHA (see above).

Releases of Claims: SB 1431, efficient January 1, 2019, amends the settlement settlement language of California Civil Code Part 1542 such that the next disclosure is now required to acquire a waiver or launch of an worker’s advantages beneath part 1542: “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” California regulation additionally requires that a settlement settlement embrace further content material, aside from the phrases of the discharge itself, to point that the events meant to launch unknown claims.

Anti-Harassment Supplies for Expertise Businesses: AB 2338 requires expertise businesses to distribute anti-sexual harassment supplies to its grownup artists and present supplies on consuming issues and vitamin to its grownup mannequin artists. Expertise businesses should maintain data for 3 years confirming they offered artists with the required instructional supplies. The regulation is efficient January 1, 2019.

Worker Entry to Payroll Data: Efficient January 1, 2019, SB 1252 amends Part 226 of the California Labor Code by clarifying that staff have the suitable to “inspect or receive a copy of” their payroll data as an alternative of getting the suitable to “inspect or copy” their payroll data.

Cal-OSHA Coaching for Marijuana Sellers: Efficient January 1, 2019, AB 2799 requires employers submitting preliminary or renewal purposes to promote marijuana to incorporate a press release that inside one yr from the appliance, the employer does or could have one supervisor and one worker who has accomplished the Cal-OSHA 30-hour basic business outreach course. The regulation applies to employers with multiple worker.

Lactation Lodging: AB 1976 modifications present lactation location necessities. Efficient January 1, 2019, employers are required to offer nursing staff with an area that’s used just for lactation functions whereas the worker expresses milk. The situation can’t be a toilet. If an employer can present that the brand new necessities would trigger an undue hardship, then the prior necessities shall apply, requiring an employer to offer a room or location for expressing milk that isn’t a rest room stall.

Parental Depart for Faculty Districts: Efficient January 1, 2019, AB 2012 standardizes paid parental depart for college districts and group school districts,  and grants staff 50% of their salaries after the worker has exhausted their paid sick depart for the rest of the worker’s parental depart interval.

Paid Household Depart/Household Momentary Incapacity: SB 1123 extends the state’s household momentary incapacity insurance coverage program to offer day off for workers (and the worker’s home companion, partner, mum or dad, or baby) within the armed forces who participates in a qualifying emergency associated to an lively obligation name. The regulation is efficient January 1, 2021.

Equal Employment Obligations for Development/Constructing Trades: Efficient January 1, 2019, AB 2358 prohibits development and constructing trades’ apprenticeship packages from discriminating towards members or candidates on the idea of intercourse, faith, race, or nationwide origin, and requires the apprenticeship packages to have at the very least one particular person oversee equal alternative compliance, keep data demonstrating compliance, and embrace equal alternative pledges within the apprenticeship requirements and different publications. All present apprenticeship packages should comply inside 180 days after the regulation’s efficient date. New packages should comply on the time of registration or 180 days after the efficient date, whichever is later.

Anti-Human Trafficking Coaching for Lodge Employers: SB 970 requires motel and lodge employers (excluding bed-and-breakfast inns) to offer at the very least 20 minutes of interactive human trafficking coaching to staff who’re more likely to work together with intercourse trafficking victims. Coaching have to be offered by January 1, 2020 and as soon as each two years thereafter.

New York

Sexual Harassment: N.Y. Lab. Law 201-g, efficient October 9, 2018, requires employers to offer sexual harassment prevention coaching to their staff on an annual foundation. The primary sexual harassment prevention coaching have to be accomplished by October 9, 2019. The sexual harassment prevention coaching have to be interactive and should cowl particular subjects together with an evidence of sexual harassment in keeping with state-issued steerage, examples of conduct that may represent sexual harassment, and cures out there to victims of sexual harassment. Employers might use the mannequin sexual harassment prevention coaching program offered by the state or set up their very own sexual harassment coaching program. This new harassment coaching requirement accompanied a separate mandate underneath N.Y. Lab. Law 201-g that New York employers undertake a sexual harassment coverage that meets or exceeds the requirements of the state’s mannequin coverage.

Minimal Wage/Additional time: New York minimal wage will increase went into impact December 31, 2018 as follows:

Efficient date

Min. wage:

New York Metropolis

(11+ staff)

Min. wage:

New York Metropolis

(10 or fewer staff)

Min. wage:

the rest of downstate

(Nassau, Suffolk, and Westchester counties)

Min. wage:

the rest of state

(outdoors of NYC; Nassau, Suffolk, and Westchester counties)

Dec. 31, 2018

$15.00/hour

$13.50/hour

$12.00/hour

$11.10/hour

Dec. 31, 2019

 

$15.00/hour

$13.00/hour

$11.80/hour

Dec. 31, 2020

   

$14.00/hour

$12.50/hour

Dec. 31, 2021

   

$15.00/hour

 

Wage thresholds for the chief and administrative exemptions additionally elevated efficient December 31, 2018 as follows:

Efficient date

Weekly wage:

New York Metropolis

(11+ staff)

Weekly wage:

New York Metropolis

(10 or fewer staff)

Weekly wage:

the rest of downstate

(Nassau, Suffolk, and Westchester counties)

Weekly wage:

the rest of state

(outdoors of NYC; Nassau, Suffolk, and Westchester counties)

Dec. 31, 2018

$1,125

$1,zero12.50

$900

$832

Dec. 31, 2019

 

$1,125

$975

$885

Dec. 31, 2020

   

$1,zero50

$937.50

Dec. 31, 2021

   

$1,125

 

Paid Household Depart: Sure modifications to the New York Paid Household Depart profit go into impact in 2019. As of January 1, 2019, the variety of weeks eligible staff can take to bond with a brand new baby, look after a sick member of the family, or help family members when a member of the family is deployed will increase from eight to 10 weeks. The variety of weeks of paid depart for eligible staff will proceed to rise by way of 2021, at which era staff will have the ability to take as much as 12 weeks of paid, job-protected depart. Additionally efficient January 1, 2019, staff taking depart will obtain 55% of their common weekly wage, as much as a cap of$746.41 per week. The 2019 worker contribution fee is zero.153% of an worker’s gross wages every pay interval, with a most annual contribution of $107.97.

New York Metropolis Sexual Harassment Law: Efficient April 1, 2019, Native Law 96 requires New York Metropolis employers with 15 or extra staff to determine a complete and interactive sexual harassment coaching course for workers. The coaching have to be offered inside one yr after the efficient date of the regulation and yearly thereafter. New staff have to be educated inside 90 days after rent. The New York Metropolis Fee on Human Rights will create a pattern coaching that employers might use to coach staff. Employers even have the choice to determine their very own coaching program. The coaching should cowl quite a lot of subjects, together with bystander intervention, particulars on how one can report sexual harassment, and the duties supervisors and managers have in stopping sexual harassment and retaliation. Employers should hold data of trainings and embrace signed worker acknowledgements of receipt of coaching.

New York Metropolis Lactation Coverage and Lodging Necessities: Efficient March 18, 2019, an modification to the New York Metropolis Administrative Code requires employers to offer a shielded personal lactation room, aside from a restroom, for breastfeeding moms that features an electrical outlet, a chair, and a floor to put a breast pump. The lactation room and a fridge appropriate for breastmilk storage have to be in affordable proximity to the breastfeeding worker’s work space. Additionally efficient March 18, 2019, employers should set up a written lactation coverage and present the coverage to all staff upon rent. The coverage should embrace a press release that staff have a proper to request a lactation room, describe the method by which staff might request a lactation room, together with the process when multiple individual wants to make use of the room on the similar time. The coverage should additionally state that employers should present affordable break occasions for workers to precise breast milk, reply to worker requests for entry to a lactation room inside 5 days, and interact in a cooperative dialogue with the worker if the request for a lactation room poses an undue hardship on the employer.

Westchester County Paid Sick Depart: Efficient April 10, 2019, Westchester County’s new Earned Sick Depart Law (ESLL) requires employers to offer paid sick depart to staff who work in Westchester County for 80 or extra hours a yr at an accrual price of 1 hour for each 30 hours labored. Employers might cap worker accrual of paid depart to 40 hours per yr. Topic to specified exceptions, the ESLL applies to employers with 5 or extra staff and covers part-time and exempt staff.

Michigan

Minimal Wage: Underneath SB 1171, the minimal wage in Michigan elevated on January 1, 2019 to $9.45/hour for non-tipped staff (up from $9.25/hour) and to $three.59/hour for tipped staff (up from $three.52/hour).

Paid Sick Depart: Efficient April 1, 2019, SB 1175 requires employers to offer paid sick depart to staff who work in Michigan at an accrual price of 1 hour for each 35 hours labored, which can be capped at 40 hours per yr. The brand new regulation applies to employers with 50 or extra staff, and covers full-time staff, part-time staff who work a mean of 25 or extra hours per week, and seasonal staff who work at the very least 25 weeks in a calendar yr. FLSA-exempt staff, authorities staff, and staff coated by an present collective bargaining settlement are excluded from protection. There isn’t any personal proper of motion, however aggrieved staff might file an administrative grievance with the Michigan Division of Licensing and Regulatory Affairs inside six months of a suspected violation.

District of Columbia

Minimal Wage: Efficient July 1, 2019, B21-0712 will improve the minimal wage fee within the District of Columbia to $14.00/hour for non-tipped staff (up from $13.25/hour) and $four.45/hour for tipped staff (up from $three.89/hour).

Tipped Staff: D.C. Law 22-196 would require employers with tipped staff to determine, distribute, and submit in a conspicuous place, a written sexual harassment coverage that outlines how staff can report situations of sexual harassment to each administration and to the Workplace of Human Rights (“Office”). Employers will probably be required to yearly doc and report back to the Workplace the variety of sexual harassment situations reported to the employer “and the total number of reported harassers who were non-managerial employees, managerial employees, owners, or operators.” The coverage, posting, documentation, and reporting necessities should all be accomplished by July 1, 2019. By November 1, 2020, employers should start offering sexual harassment coaching to present staff and inside 90 days of rent for brand spanking new staff employed thereafter. Coaching for managerial and enterprise house owners have to be accomplished each two years.

Paid Depart: Starting July 1, 2019, the Common Paid Depart Modification Act will improve Washington D.C. employer’s payroll taxes by zero.62%. The elevated income shall be used to offer paid depart advantages to eligible staff. Starting on July 1, 2020, topic to sure restrictions, the regulation will present as much as eight weeks of paid parental depart to bond with a brand new baby, six weeks of paid household depart to look after an unwell member of the family with a critical well being situation, and two weeks of paid medical depart to look after one’s personal critical well being situation.