It’s our favorite time of year over at Employment Matters – March Madness! Let’s quickly recap where we’ve been.
Today we offer our last installment in our 2016 Year in Review segment, which will cover the key labor & employment law developments from 2016 in California. Prior installments for the DC Metro Area, New York and Massachusetts are available here. In addition, please join us in NYC on April 6, 2017 for Mintz Levin’s Third Annual Employment Law Summit as we address some of the key labor & employment issues impacting employers in 2017. Register here.
In 2016 employers in California had to adjust to compensation and benefits related changes such as a new state minimum wage, a new method of calculating compensation for “piece-rate employees,” and expanded “kin care” benefits. The California Fair Pay Act, aimed at addressing gender wage discrimination also went into effect, modifying existing laws in a few key ways. The legislature also amended California’s Private Attorneys General Act to grant employers a few new ways to “cure” violations.
In 2017 employers should ensure they are complying with “all gender” bathroom requirements and that when making hiring decisions they do not rely on “juvenile offense history.” Employers should also be aware that there is a trend for cities and/or counties to further limit the kinds of information employers may consider in making hiring decisions. Also on the horizon is the probability that the legislature will revisit a new unpaid parental leave law that would impact smaller businesses.
Today we continue with our Year in Review segment, which looks at the key labor & employment law developments from 2016 in New York, the DC Metro Area, Massachusetts, and California, while offering our thoughts on 2017. Last week we covered New York and the DC Metro Area. Now we turn to Massachusetts. In addition, please join us in NYC on April 6, 2017 for Mintz Levin’s Third Annual Employment Law Summit as we address some of the key labor & employment issues impacting employers in 2017. Register here.
2016 Massachusetts Employment Law Year in Review
From case law interpreting one of, if not, the most employee-friendly independent contractor statute in the country to Beacon Hill’s efforts to pass non-competition agreement reform, Massachusetts is certainly no stranger to key developments in the labor and employment arena. This blog post highlights the 2016 case law and legislative efforts about which every Massachusetts employer should be aware, and provides insight over what to watch for as we move our way along through 2017 and beyond.
Over the next two weeks we will release our Year in Review segment, which will look at the key labor & employment law developments from 2016 in New York, the DC Metro Area, Massachusetts, and California while offering our thoughts about 2017. Today we kick off this segment with New York. In addition, please join us in NYC on April 6, 2017 for Mintz Levin’s Third Annual Employment Law Summit as we address some of the key labor & employment issues impacting employers in 2017. Register here.
2016 brought big changes for New York State and City employers, including expansive new discrimination protections and substantial increases in the minimum wage and exempt salary thresholds. While New York employers who successfully navigated 2016’s rush of legislative, regulatory and judicial obstacles might feel they’ve earned the right to shift their focus back from compliance issues to running their businesses, they should not lose sight of the additional challenges expected in 2017.
The Fourth Circuit recently ruled that a general contractor was the joint employer of employees of its subcontractor for purposes of the Fair Labor Standards Act. Salinas v. Commercial Interiors, Inc. has broad implications for the wage and overtime responsibilities of employers located within the Fourth Circuit, which has jurisdiction over appeals from federal courts located in Maryland, Virginia, North Carolina, South Carolina, and West Virginia.
On February 16, 2017, the New York State Industrial Board of Appeals invalidated and revoked the NYS Department of Labor regulations we wrote about previously (and updated here) governing payment of wages by direct deposit or payroll debit card. The regulations were scheduled to take effect on March 7, 2017.
This morning Punxsutawney Phil told us that we are facing six more weeks of winter. Great. We thought it served as a good opportunity to remind employers of the importance of establishing inclement weather policies that are compliant with wage and hour laws for both exempt and non-exempt employees. Here is a quick, yet helpful, Q&A for your reading pleasure:
Written by Brendan Lowd
Just before Thanksgiving, a Texas federal court judge issued an injunction blocking the closely-watched new federal overtime rule from taking effect as scheduled on December 1, 2016. As expected, the DOL is not going quietly into the night and the parties have engaged in a flurry of court filings as the fight, at least in part, concerning whether the new rule is lawful shifts to the United States Court of Appeals for the Fifth Circuit.
Since a Texas federal judge blocked the U.S. Department of Labor’s overtime rule from taking effect in November, human resource managers, payroll professionals and employment attorneys (including over here at Employment Matters) have been abuzz about the fact that, at least for now, employers do not need to make sweeping changes to their compensation practices to comply with the rule. What has been less discussed, however, is the impact on New York employers of the New York State Department of Labor’s amendments to New York’s Wage Orders, which become effective on Saturday, December 31, 2016, and which will, among other things, significantly increase the State’s minimum wage rate as well as its the minimum salary thresholds for individuals classified as exempt executives and administrative employees.
The NYSDOL had proposed these changes several months ago and the comment period ended back on December 3rd. But the final rule was issued just yesterday, unchanged from its proposed form. With the clock ticking, New York employers must and should pay immediate attention to these changes and should act quickly to fulfill their ongoing notice and posting obligations while adjusting compensation levels accordingly. We summarize the Wage Order amendments below.
Employers across the country woke up this morning to news that a Texas District Court judge has blocked the DOL’s overtime rule from taking effect on December 1, 2016. This represents a stunning turn of events for employers. They will now be able to continue to treat as exempt from overtime “white collar” workers who are paid a salary of at least the current minimum level of $23,660 per year without raising their salary to the proposed new minimum of at least $47,476, as the new rule had required. But, anticipating the new rule taking effect on December 1, many employers had already re-classified employees as non-exempt or raised their salaries to maintain the exemption or communicated the anticipated changes to their workforce. And even those employers who have waited until the last minute to ready themselves for compliance have been left scratching their heads as to next steps, now that the rule will not, at least for now, take effect. This post explores the court’s decision and employer’s potential responses to it.