2017 is in the books and 2018 is now upon us. A dramatic close to 2017 on Capitol Hill ushered in sweeping changes to the tax code that will begin to impact both employers and employees in a number of ways – some more immediately – from employers losing deductions for sexual harassment settlement payouts, to penalties for high nonprofit executive compensation, to tax deferral on exercise of stock options for public company executives, to employee benefit plans. Wage and leave-related issues are also likely to dominate in 2018, as more states (and employers on their own initiative) increase wage thresholds and broaden employee paid and unpaid leave entitlements (even for some smaller employers). Salary history bans, such as those already enacted in New York City, Massachusetts, and California, will continue to get traction in 2018 as more states and municipalities jump on that bandwagon. We also expect to continue to witness a significant shift in the NLRB’s enforcement policy and decision-making; the NLRB’s new General Counsel has already announced a number of changes that are sure to make employers sigh with relief. Also in 2018, employers could continue to face rising uncertainty with respect to health plans in the wake of the tax bill’s repeal of the individual mandate that was central to keeping health plans affordable under the Affordable Care Act. Finally, so that we can help keep you accountable to the five New Year’s resolutions we made for you over the holidays (that we know you were eager to adopt as your own), we have collected them for you here: (1) review and refresh your non-harassment policies and training; (2) update your leave policies; (3) make sure your job applications comply with new state ban-the-box laws and salary history inquiry bans; (4) assess the strength and enforceability of your post-employment covenants under changing state law; and (5) make sure your employee benefit plans are compliant.
Last year New York State made significant changes to its wage orders resulting in increases to the State’s minimum wage, white collar overtime exemption salary thresholds, tip, meal and lodging credits, and uniform allowances. The latest changes go into effect on December 31, 2017. We quickly summarize the minimum wage and overtime salary threshold changes below, but urge you to visit our prior post here for more in-depth coverage, including best practices for compliance.
Employers often struggle over compliance with state wage deduction laws, and these potential violations carry with them considerable penalties. In Massachusetts, for example, employers face triple damages for violations of wage and hour laws. This post uses hypothetical examples to demonstrate how narrow the range of permissible activity is under California, Massachusetts, New York, and Washington D.C. laws even when a deduction to an employee’s salary appears as a common sense one or otherwise fair to both parties involved. Employers with employees located in these and other states should consult with legal counsel before making any deductions from employee wages, even if the employee authorizes such a deduction.
So, for example, can employers deduct from employee wages for the cost of uniforms? Personal expenses on corporate credit cards? Broken printers? Let’s explore…
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.
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.
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.
As all HR professionals and employment lawyers know (even those currently living under rocks), the Department of Labor’s final overtime rule is scheduled to go into effect on December 1, 2016 – less than two weeks from now. The DOL published the rule back on May 18, 2016 providing employers with nearly 200 days to come into compliance. Many have planned accordingly and are ready to go; others are finally focusing on this issue as the deadline nears. At the same time, questions continue to arise over the rule’s fate. In this post, we discuss the current state of play along with some compliance tips for employers.
As the workplace becomes increasingly digitized, both employers and employees can benefit from the conveniences technology provides. Chief among those is the convenience of electronic access to funds, which allows people to bank, pay bills, and transfer money from a computer or mobile device rather than being constrained by the limitations of brick and mortar financial institutions.
In this vein, many employers have taken advantage of new technology that makes life easier for businesses and their employees. In the realm of wages, electronic payment methods such as payroll debit cards and direct deposit would seem to make life easier. However, beginning on March 7, 2017, New York employers who use these methods to pay wages must pay even closer attention when doing so. That’s because last month the New York State Department of Labor issued Regulations imposing various additional written notice and consent requirements on employers who use methods other than cash or check to pay employees. We summarize those requirements below.
California and New York have each passed laws that will gradually raise their state’s minimum wage rate to $15 per hour. This is a stunning development coming just four years after a small group of New York fast food workers initiated the call for the increase. The new laws will impact millions of Americans and put pressure on other jurisdictions and business to make similar increases in other parts of the country. We briefly break down the new laws below.
Is the pick-off strategy to moot class actions still alive in the Southern District of New York? Possibly.