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US DOL Releases FY2014 Budget Request

By Martha J. Zackin

On April 10th, the Department of Labor released its fiscal year 2014 budget request.  As reported in a press release describing the budget request, the DOL has asked for $12.1 billion in discretionary funding to support “President Obama's plan to strengthen the economy and grow the middle class through continued investments in training and resources for job seekers.”  The request seeks significant resources devoted to putting veterans to work, and to creating employment opportunities for the long-term unemployed and low-income adults and youths. 

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New FMLA Forms Now Available

By Martha J. Zackin

February 6, 2013 was the 20th anniversary of the signing of the Family and Medical Leave Act.  In celebration, the United States Department of Labor released the results of a survey on the law’s use and impact.  According to the DOL, the survey shows that the “FMLA continues to make a positive impact on the lives of workers without imposing an undue burden upon employers,” and that both employers and employees find it “relatively easy to comply with the law.” The survey also concludes that “misuse of the FMLA is rare.” 

In addition to publishing the survey, the DOL issued a final rule implementing the law's protections to families of veterans and airline flight crews and making other clarifying changes.  Finally, the DOL published new forms for employers to use when seeking certification of serious health conditions or when designating eligibility, among other things.  As before, use of the forms is optional.

OFCCP Issues Enforcement Guidance on Contractors' Use of Arrest and Conviction Records

By Martha J. Zackin

On January 29, 2013, the Department of Labor’s Office of Federal Contract Compliance Programs issued a Directive. pertaining to federal contractors’ use of arrest and conviction records in making employment decisions.  This Directive is consistent with and incorporates guidance issued by the Equal Employment Opportunity Commission in April 2012.

 

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DOL Publishes New Employees' Guide to the FMLA

By Joel M. Nolan

Recently, the U.S. Department of Labor released a user-friendly Employees' Guide to the Family and Medical Leave Act.  The guide is targeted at employees, but may also serve as a helpful tool for employers looking for an efficient summary of the law. 

The guide does not provide new information or legal interpretations of the law; rather, it provides a plain-language overview of the FMLA's major provisions and contours, such as FMLA eligibility, FMLA rights and protections, the process for requesting leave (and associated notice provisions), FMLA certifications, and job reinstatement.  In addition, the guide highlights certain unique circumstances and incorporates some of the DOL's  interpretive guidance on particular issues.  For example, the guide discusses eligibility guidelines for airline flight attendants and flight crew employees, describes when employees may be eligible to take FMLA leave to care for certain children with whom the employee has no legal relationship (or to care for another as such a child), and emphasizes the importance of employer FMLA policies.  Further, the guide provides clear flowcharts regarding FMLA eligibility and certification and the process for taking FMLA leave, as well as information for employees on filing an FMLA complaint with the DOL's wage-and-hour division.

The DOL has also archived a webinar about the guide, which is available here: http://www.dol.gov/whd/fmla/employeeguide-webinar.htm

Retaliation: 2012 and Beyond

Retaliation claims are here to stay.  According to charge statistics recently released by the EEOC, retaliation claims rose to an all-time high of 37,344 in fiscal year 2011, and were included in 37.4% of all charges filed with the agency.  Recent developments lead us to conclude that this trend will continue, in 2012 and beyond.

In December 2011, the U.S. Department of Labor (“DOL”), Wage and Hour Division (“WHD”), released guidance pertaining to prohibitions against retaliation under the Fair Labor Standards Act (“FLSA”) and the Family and Medical Leave Act (“FMLA”).

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Reminder: Include GINA "Safe Harbor" Language in FMLA Forms

Employers with 50 or more employees in 20 or more workweeks in the current or preceding calendar year, including joint employers and successors to covered employers, must comply with the Family and Medical Leave Act (“FMLA”).   The FMLA requires covered employers to comply with various notification requirements, and allows employers to obtain medical certifications from employees requesting leave.  The Department of Labor (“DOL”) has authored various form notices and certifications, which employers may choose to use.

The DOL-drafted forms expire on January 31, 2012.  New forms, which have been submitted to the United States Office of Management and Budget, are not likely to be approved before the old forms expire.  Nevertheless, under the law, expired forms may continue to be used while new forms are awaiting approval.

But – and this is important – the soon-to-expire forms do not include the “safe harbor” language under the Genetic Information Nondiscrimination Act, which tells employees and their medical providers that they should not provide “genetic information” when responding to a request for certification. 

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Supreme Court to Determine Whether Pharmaceutical Sales Representatives Are Entitled to Overtime Pay

By Michael Arnold

The United States Supreme Court will determine whether pharmaceutical sales representatives qualify as exempt under the Fair Labor Standards Act’s outside salesperson exemption.  In doing so, the Supreme Court will resolve a split between the Second and Ninth Circuit Courts of Appeals (and numerous other district courts over this issue).  More specifically, as we wrote about here, last year the Second Circuit found that the FLSA does not exempt pharmaceutical sales representatives from its overtime obligations; recently, the Ninth Circuit reached the opposite conclusion. 

The Supreme Court’s decision will be important in two respects.  First, it would affect the 60,000-90,000 sales representatives believed to be employed industry-wide.  Second, and perhaps more importantly to employers generally, the Court will also rule on the level of deference a court must provide to a Department of Labor interpretation of its own FLSA regulation.

Adverse Action: More Expansively Construed Under SOX than under Title VII

In a case of first impression, the Department of Labor’s Administrative Review Board (ARB) finds that the meaning of the term “adverse action” under the whistleblower protection provisions of the Sarbanes-Oxley Act (SOX) is substantially broader than the meaning of the same term under Title VII, and found that the employer’s disclosure of the whistleblower’s identity in violation of the employer’s own confidentiality policy was an adverse action.  This employee-friendly decision reflects the DOL trend towards expanding employees’ workplace rights.

First, the background.

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Department of Labor Teams with IRS to Combat Misclassification

At a signing ceremony held this morning at the offices of the Department of Labor in Washington, D.C., the DOL and the IRS signed a memorandum of understanding that will likely result in increased DOL and IRS enforcement proceedings against employers accused of misclassifying employees as independent contractors.  Seven states also signed similar agreements, including Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah, and Washington.  Hawaii, Illinois, Montana, and New York are expected to follow shortly.

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OFCCP Restores Functional Affirmative Action Programs

On June 28 the OFCCP announced that it was restoring the functional AAP (FAAP) program, which it had suspended a few years ago. A copy of the OFCCP's Directive regarding FAAP's may be found here; the key points are as follows: 

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DOL Expands FMLA Reach to Cover LGBT and Non-nuclear Families

Written By Paula Lyons

In an Administrator’s Interpretation issued on June 22, 2010, The U.S. Department of Labor (DOL) has "clarified" the definition of “son or daughter” under the Family Medical Leave Act (FMLA) as it applies to an employee standing in loco parentis to a child. The result is to significantly expand the universe of caregivers entitled to FMLA leave. As DOL noted in its press release announcing the Administrator’s Interpretation: “the Labor Department's action today sends a clear message to workers and employers alike: All families, including LGBT families, are protected by the FMLA."

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DOL's "We Can Help" Campaign Bound to Generate Additional Enforcement Activity

Written by Martha Zackin

On April 1, 2010, the United States Department of Labor launched a new, nationwide marketing campaign, dubbed “We Can Help,” to let workers know how to contact the government with their work-related complaints. The marketing campaign, which is being conducted in several different languages, is intended to connect workers with the Department of Labor. In particular, the campaign seeks to reach employees in low-wage industries perceived as vulnerable to employer exploitation, such as construction, janitorial services, hotel and food services, and home health care.


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"High Road Contracting Policy" Could Change How Government Contractors Compensate Their Employees

Written by Martha Zackin

According to an article posted on the DC Crawler website, the “Obama administration is considering a proposal that would heavily favor government contractors that implement policies designed by organized labor.” 


Under current policy, government contracts are awarded based on an analysis of price, past performance, and the ability to meet the contract’s specific requirements.  The proposal, dubbed the “High Road Contracting Policy,” would give preference to labor-friendly contractors that provide its workers with wages and benefits over and above what is required under existing laws.  Specifically, a procurement preference would be given to employers that provide its workers with a “living” wage, to include, at a minimum, health insurance, employer-funded retirement plan, and paid sick days.  Contractors found to have violated labor laws would be restricted, and possibly barred, from being awarded federal contracts.


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NY DOL Mandates Use of its Form to Notify Employees of Terms and Conditions of Employment

Amendments to New York Labor Law §195 obligate New York employers to notify new employees, in writing and at the time of hire, about certain terms and conditions of employment. Amended §195 also requires employers to obtain from each new employee a written acknowledgment confirming that he or she received the specified information. New York's Department of Labor has now mandated use of its form of notice and acknowledgment. See our alert here for more information.

Labor Secretary Solis: DOL is Back in the Enforcement Business

From the time she was confirmed as Secretary of Labor, Hilda Solis has stressed that the Department of Labor (“DOL”) will reverse the trend set by the previous administration and focus on enforcing workplace laws and regulations. By the end of March 2009, less than two months after Solis was confirmed as Secretary, she announced that the DOL’s Wage and Hour Division (“WHD”) was in the process of hiring 150 new investigators to its field offices. In addition, she announced, the DOL would be hiring 100 investigators to ensure that contractors awarded funds under the American Recovery and Reinvestment Act would be in compliance with applicable workplace laws.

In May, Secretary Solis publicized her budget request for FY 2010, allocating $1.7 billion for worker protection programs, a 10 percent increase over the prior year’s budget. Under this budget, the DOL plans to hire an additional 670 investigators, including an additional 160 investigators for the Occupational Health and Safety Administration (“OSHA”) and 200 new WHD investigators. Reiterating this commitment in recent remarks made to the AFL-CIO Constitutional Convention, Secretary Solis promised that the DOL “is once again back in the enforcement business.” This pronouncement signals enforcement across virtually all of DOL’s divisions, including the Office of Federal Contract Compliance Programs, Office of Workers’ Compensation Programs, Office of Labor-Management Standards, Pension Benefit Guaranty Corporation, Employment Standards Administration, Women’s Bureau, OSHA, and WHD.

What does this mean? Businesses should expect more (and more comprehensive) audits, involving all aspects of the workplace. While it used to be a safe assumption for any business that the chances of it being hit with a DOL were remote, that is no longer a safe assumption. Many businesses will be identified for audit. Now is the time to “clean house,” taking reasonable steps to ensure compliance by conducting a self-audit, fixing any problems that are uncovered. Those steps will go a long way towards minimizing the disruption (and potential penalties) associated with increased enforcement.

Written by Martha
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