Happy Memorial Day

Happy Memorial Day! For many, this is a day to honor fallen soldiers and also a time to get ready for summer.

Have you done the following?

• Sunscreen?
• Summer reading list?
• Pay Equity Audit?
• Midyear handbook and diagnostic workplace audit?

If you answered “No” to any one of these questions, we can help!  Read on.

SUNSCREEN

It is outside our wheelhouse but we do like to be helpful.  See the latest list from Consumer Reports. http://www.consumerreports.org/sun-protection/get-the-best-sun-protection/

PAY EQUITY

In 2016 alone, California, New York, Nebraska, Maryland and Massachusetts passed aggressive equal pay legislation. If you are not in this group, the EEOC’s proposed expansion to the EEO-1 reports means more pay data will be required from federal contractors and employers with more than 100 employees.

Do I Need to Buy More Software?

Absolutely not.  By now you may have seen software solicitations touting the importance of statistical analysis to comply with pay equity. Beware.  Sizes matters: unless an employer has a significant number of employees performing the same role and a statistically significant amount are women, a statistical analysis will not produce reliable results. Most of our clients should perform a cohort analysis, which better compares the factors affecting pay.

Why Should I Use Your Pay Equity Audit?  

By partnering with an attorney, the process is protected by the attorney-client privilege. Any pay equity found will be kept strictly confidential.  Moreover, in Massachusetts you create a rolling affirmative defense by conducting an evaluation of pay practices if it is completed within three years prior to the commencement of a wage discrimination claim. We have developed an effective and painless Pay Equity Audit to achieve compliance and create an affirmative defense.

Why Now? 

The effective date of the MA Pay Equity Law is July 1, 2018.  Many of you are planning for 2018 in your budgets and hiring. Include Pay Equity in that list to be compliant and create the rolling affirmative defense against any future claims.

SUMMER READING

Software slamming aside, Bill Gates is a pretty smart guy.  His summer reading list looks terrific.  Check it out!  https://www.gatesnotes.com/About-Bill-Gates/Summer-Books-2017?WT.mc_id=05_22_2017_10_SummerBooks2017_BG-media_&WT.tsrc=BGmedia

 

MIDYEAR HANDBOOK AND DIAGNOSTIC AUDIT

Probably not high on your reading list but terribly important is your employee handbook.  When is the last time you read it? We recommend that you review and update your handbook on an annual basis. Now is a particularly good time given the many local and state law updates.  Marijuana, equal pay, paid family leave, sick leave—many changes have taken place that are probably not properly addressed in your handbook.

Why Worry about the Handbook?

A well-crafted handbook serves many valuable purposes:

• Define the culture of your business
• Set expectations
• Inform employees of compensation, benefits and rules
• Provide a clear avenue for dispute resolution, a critical road map for staff

Your Handbook are a valuable tool for you and an important resource for employees.

 

What is the Diagnostic Audit?

The Risk Management Diagnostic Audit is a tool we have developed to allow you to identify and respond to the compliance risks at your workplace. This audit targets your organization’s unique vulnerability and provides action items to put you on the path to compliance.  Please check out our website or call 508-548-4888 for the steps and timelines for this popular service. http://www.foleylawpractice.com/diagnostic-compliance-audit.html

Enjoy the long weekend!

Contact us at 508-548-4888 or info@foleylawpractice.com

 

 

 

NOT EVERY NEW RULE SLATED FOR DECEMBER 1, 2016 WAS HALTED: THE NEW OSHA ANTI-RETALIATION RULES ARE EFFECTIVE TODAY

THE BACKGROUND

Back in May, the Occupational Safety and Health Administration (OSHA) issued a final rule requiring certain employers to electronically submit data from their work-related injury records to OSHA. This new rule, which takes effect January 1, 2017 also included anti-retaliation provisions intended to prevent employers from discouraging employees from reporting workplace injuries and illnesses. Here is the OSHA announcement of the “Final Rule Issued to Improve Tracking of Workplace Injuries and Illnesses Addressing Employer’s Compliance Obligations.”

OSHA’s initial plan was to begin enforcing the new anti-retaliation provisions in August, but due to litigation, the deadline was pushed back to December 1, 2016.  On this past Monday, a Texas federal judge refused to block the anti-retaliation provisions, rejecting a request by numerous business groups for a national injunction while their legal challenge plays out. Covered employers (defined below under “Looking Down The Road”) must take immediate steps to comply with the new anti-retaliation provisions.

HOW TO COMPLY TODAY WITH THE NEW ANTI-RETALIATION PROVISIONS

• Employers must inform employees of their right to report work-related injuries and illnesses free from retaliation. This obligation may be met by posting the OSHA Job Safety and Health — It’s The Law worker rights poster from April 2015 or later (https://www.osha.gov/Publications/poster.html).
• An employer’s procedure for reporting work-related injuries and illnesses must be reasonable and must not deter or discourage employees from reporting.
• An employer may not retaliate against employees for reporting work-related injuries or illnesses

 EASY, RIGHT? NOT SO FAST

The final rule does not specifically prohibit employers from performing drug tests on employees or implementing safety incentive programs.  Instead, it prohibits employers from using drug-testing and safety incentive programs in a way that deters or discourages employees from reporting workplace incidents.

No More Post Incident Drug Testing: According to OSHA, a blanket policy that requires all employees to submit to drug testing following a workplace safety incident violates anti-retaliation protections. This anti-retaliation prohibition does not change or impact the Department of Transportation Commercial Driver License post-accident drug/alcohol testing requirement. The pertinent rule provides that “if an employer conducts drug testing to comply with the requirements of a state or federal law or regulation, the employer’s motive would not be retaliatory and this rule would not prohibit such testing.” OSHA has also indicated that post-incident drug testing is appropriate in circumstances where employee drug use is suspected to be the cause of the incident.

No Incentive Programs That Reward for Zero Reported Injuries: OSHA is concerned that if employees are sufficiently motivated, they will under-report incidents in order to reach the incentive. OSHA is also encouraging employers to implement incentive plans that reward employees to improve workplace safety without discouraging reporting.

WHAT DO WE DO NOW?

The new anti-retaliation provisions will allow OSHA to take a more proactive enforcement role, meaning that OSHA will not need to wait until a retaliation claim is filed to issue a citation against an employer if OSHA feels that the employer is discouraging appropriate reporting. This makes compliance particularly important.  Consider the following immediate steps:

1. Update your OSHA Poster, and if you have not already done so, adopt a reasonable reporting process. Your handbook is a great place to start.
2. Mandatory post-incident drug testing policies must be revised immediately. Adopt language that links testing to a reasonable suspicion that drug use caused the incident or illness.
3. Modify any incentive programs that may be construed to discourage employees from reporting workplace accidents or illnesses.

Here is the OSHA Fact Sheet addressing the “Final Rule to Improve Tracking of Workplace Injuries and Illnesses.”

LOOKING DOWN THE ROAD

• July 1, 2017: Organizations with 250 or more employees that are currently required to keep OSHA 300 Logs will be required to submit those records as well as Forms 300 and 301 electronically. Organizations with 20-249 employees that are classified in certain high-risk industries will also be required to electronically submit OSHA 300 Logs.

For your convenience and information, the links within this Alert contain related links to the list of “certain high-risk industries.”

WE CAN HELP

At Foley & Foley we have already helped many of our clients modify their handbooks and drug testing policies to comply with these new rules.  We welcome the opportunity to help your organization do the same.

 

I feel the Earth move, under my feet

New Overtime Rules are Delayed – Will Not Go in to Effect on December 1 To the shock and relief of employers across the country, a federal judge in Texas has issued a nationwide injunction blocking the Department of Labor’s new overtime rule set to go into effect on December 1. In a 20-page decision, U.S. District Judge Amos L. Mazzant ruled that the 21 states and more than 50 business groups that sued to block the rule stood a significant chance of success and will suffer serious financial harm if the new overtime rules go into effect as scheduled on 12/1. He further held that the DOL overstepped its authority by raising the salary cap for the white collar exemptions from $455 a week to $921 a week or $47,892 a year, a point where the minimum salary supplanted the duties test, which was not the intent of Congress when it created the statutory exemption. What Happens Now? For employers that planned to reclassify previously exempt employees on December 1, solely because employees do not meet the new salary threshold, reclassification can be delayed until further notice. The injunction halts enforcement of the rule unless or until the government can win a countermanding order from the conservative Fifth Circuit court of appeals, where there is a reasonable chance no such order will be forthcoming. In other words, the new overtime rule will now face a full trial on its merits. As we have stated repeatedly over the last 9 months, the white collar exemption to the FLSA is a three part test, including not just a two part salary test, but a duties test as well. The proposed amendment to the FLSA prompted many employers to revisit the duties tests and to reassess old job descriptions for compliance. We remain confident this was time well spent. This ruling has no impact on the existing duties test, and Judge Mazzant’s order solidifies the importance of the duties test. The Department of Labor will continue audits, and employees will continue to file wage and hour claims. Because this injunction has no impact on the duties tests for the executive, administrative, professional, computer and outside sales exemptions, any job descriptions modified to better comply with those duties tests should still be rolled out at your earliest opportunity. Remember: if these positions were reclassified because they failed the duties test – they were incorrectly classified to begin with. To avoid fines and fees, it is important to proceed with those changes. The issue of communicating this change will now be more complex. However, the fact remains that this area of law remains a highly litigated one, and as evidenced by the court’s decision, it can change on a dime. Ultimately, this is why we advised all of our clients to examine job descriptions, and revise exempt classifications, and it remains a strong argument for reclassifying your employees now. Until the court rules one way or the other, or Congress takes a definitive action to update the rules, the new overtime rule will not take effect; but it has not gone away. Please contact our office with questions and concerns about this new development, we are here to help.

© 2016 FOLEY & FOLEY, PC, ALL RIGHTS RESERVED

 

The EEOC Jumps on the Employee Classification Bandwagon

 

The Equal Employment Opportunity Commission (EEOC) has issued updates to its Strategic Enforcement Plan for 2017-2021 .   At first glance it looks a lot like the current plan.  Then, like many government statements, there is a hidden line that gives a clue to where the EEOC is going:

The Commission adds a new priority to address issues related to complex employment relationships and structures in the 21^st century workplace, focusing specifically on temporary workers, staffing agencies, independent contractor relationships, and the on-demand economy.

The US government is playing catch up to the gig economy—Uber, Lyft, etc.  Yet this priority has noteworthy implications for all employers.  Misclassification of employees is a complicated and expensive issue. The EEOC is joining the chorus of the  Department of Labor (DOL) Misclassification Initiative.

 

If you have not reviewed your employee classification to comply with the December 1, 2016 DOL deadline on the “White Collar” Overtime mandate  you might reconsider an audit or position classification service. The message from the Feds is clear: misclassify employees at your peril (and you thought I was going to write: we just keep coming up with new regs to make it harder to do business!).

 

We can help. Call 508.548.4888 or email  Mike@foleylawpractice.com

DOL OT Rule Going Away? Don’t count your chickens… .

In a new development, 21 states and many business groups are requesting that the Texas court enjoin implementation of the new DOL overtime exemption rules.  As far as their chance of success, at least in the near term, it is not good.

Reports are that both cases have been assigned to Judge Amos Mazzant, who was nominated by President Barack Obama in 2014. It has been suggested that this assignment may not bode well for the plaintiffs.  Theoretically, prospects may improve if the lower court decision is taken up on appeal to the Fifth Circuit.

The states are claiming that the DOL overstepped by raising the salary level for what should be exempt duties–regardless of salary. Moreover, the plaintiffs allege that the automatic indexing that raises the threshold salary over three years is an overreach of authority and should include provisions for economic conditions or the effect on resources.

Our view is that we all stay the course, and continue compliance efforts. With the compliance date of December 1 so close, it would be risky to leave the fate your workplace with the courts. In the meantime we will closely monitor this case and if the courts stop implementation, that will be a wonderful surprise.

EMPLOYMENT LAW ALERT: Less than 3 months to comply with overtime rules

Why all the hype The long-awaited and much-debated “White Collar” regulations issued on May 18, 2016, become effective December 1, 2016 – your compliance deadline. The DOL has already set up field offices in every state and is conducting random audits. The fines associated with these audits are high. In addition to unpaid overtime, misclassification of employees can result in liquidated damages, equitable relief, and reimbursement of attorneys’ fees. The risk is not limited to the FLSA. Each state has its own unique employment laws. Some of these laws are consistent with the FLSA, others are not. State agencies and Attorney Generals’ Offices also conduct audits and initiate lawsuits, compounding the risk to employers. The new overtime regulations have given every employer the perfect opportunity to not only reclassify positions impacted by the new salary levels, but to correct positions that were improperly classified as exempt from the start. This is a unique and limited opportunity. Do I need a lawyer? In the event of a lawsuit, internal audits of exempt/non-exempt classifications can be used as evidence of a willful violation of the FLSA, which lengthens the statute of limitations from two to three years. The strongest protection is the careful use of the attorney-client privilege to protect the audit itself. Engaging human resources staff or consultants or even in-house counsel to conduct the audit will not allow the company to avail itself of the attorney-client privilege. By retaining outside counsel to perform this service, all findings are protected by Attorney-Client privilege. This is an exceptional chance to obtain an indemnified legal opinion that all the jobs in your workplace are accurately classified as exempt or non-exempt, under both state and federal law. We Get It! That is why we developed our 2016 Positions Classification Service and charge a fixed/flat fee for that service. Getting started is very easy. We provide your team the forms, checklists and worksheets that will carefully guide you through the classification process. We will review the forms, checklists and documents that you provide us to insure exempt positions comply with state and federal law. You can relax knowing that you have well-written job descriptions and that each employee is correctly classified and being compensated under the pertinent state and federal laws. Introducing Our Service: 2016 Positions Classification Service Overview 2016 Position Classification Process Flow Chart 2016 ADA Element Checklist 2016 Essential Functions Determination Form Introducing Our New Lawyer Speaking of help, we are very proud and excited to introduce Attorney Julie Fletcher to our practice. Prior to joining Foley & Foley, Julie worked in the areas of immigration and employment law for several years at national law firms in Boston. Check out her bio. Closing Thoughts The United States Department of Labor has been on a roll, impacting wages, job classifications, the FMLA and Affirmative Action Compliance for Federal Contractors, just to name a few of their recent initiatives. Please let us know how we can help your team better manage employment law compliance and HR-related risk. CONTACT US 508-548-4888 or mike@foleylawpractice.com We can help.

© 2016 FOLEY & FOLEY, PC, ALL RIGHTS RESERVED

Pay Equity in Massachusetts – What Employers Need to Know Before the New Law Takes Effect July 1, 2018

 

Here’s What We Know:

• It is no secret that there is still a workplace wage gap between the genders.

• Prior to the passage of certain laws a little over five decades ago, female employees working full-time were earning on average only about sixty percent (60%) of the amount earned by their male counterparts.

• Progress has been made in closing the pay gap.

• According to the Economic Policy Institute, women are taking home 83 cents for every dollar earned by men.

• According to the Federal Department of Labor, pay equity for younger workers is near parity.

• Today, in Massachusetts, employees who believe that they are underpaid on the basis of their gender currently have recourse to four statutes when seeking relief:
  • The Federal Equal Pay Act (“FEPA”);
  • Title VII of the Civil Right Act of 1964 (“Title VII”);
  • The Massachusetts Equal Pay Act (“MEPA”); and
  • Chapter 151B of the General Laws of Massachusetts (“151B”).

• The National Labor Relations Act governs most private sector employers in the Commonwealth and throughout the country. That law makes it abundantly clear that employees have the right to engage in protected concerted activity. That means that no employer is allowed to retaliate against, discipline or terminate an employee who discusses how much money they make or how much money someone else makes.

• Here is the bottom line: For decades, it has been illegal in the United States for an employer to discriminate against women, including discrimination against women in terms of compensation.

 

What Will Change When The New Law Goes Into Effect On 7/1/18:

• The current Massachusetts Equal Pay Act (“MEPA”) requires employers to provide “equal pay” for “equal work.” The new law prohibits differences in pay for “comparable work,” which is defined as solely meaning “work that is substantially similar in that it requires substantially similar skill, effort and responsibility and is performed under similar working conditions.”
•  Unfortunately, we will have another vague term that creates an ambiguous standard that will expand employers’ obligations to insure equal pay within it workplace.
• The current practice of assessing pay equity within job titles and job descriptions must now expand across different jobs to meet the “comparable work” standard.
•  Wage Disclosure Restriction – The law will prohibit employers from requiring an applicant’s compensation history prior to making a job offer that includes pay/compensation. However, applicants can voluntarily disclose wage history and job applications should note that providing pay history information is voluntary. Make no mistake – the new law does not govern or in any way restrict conversations within the recruitment process related to portable business. Such as: how many clients do you currently work with? How many of those clients are likely to follow you? How much revenue do you expect those clients to generate if they follow you and you land here? Tell us about how you create and maintain your contact network, including the number and types of contacts you have within our industry?
• We also know that conversations in the workplace about pay are protected.

 

How Can Employers Avoid Liability:

• Wage differentials between employees of opposite genders must be based upon one of the following factors:
  • Seniority – Provided that time spent on leave due to a pregnancy-related condition and protected parental, family and medical leave should not reduce seniority.
  • Merit system;
  • Quality or Quantity of Production – A system which measures earnings by quantity or quality of production, sales, or revenue;
  • Geographic location in which a job is performed;
  • Education, training or experience to the extent such factors are reasonably related to the particular job in question; and
  • Travel, if travel is a regular and necessary condition of the particular job.

 

• Create a rolling affirmative defense by conducting a self-evaluation of pay practices that is “reasonable in detail and scope in light of the size of the employer” and make “reasonable progress” toward eliminating pay differentials uncovered by the evaluation. This evaluation creates an affirmative defense if it is completed within the three years prior to the commencement of a wage discrimination claim.

 

• Our Pay Equity Audit will create a rolling affirmative defense for your company.

 

Take Full Advantage Of The Next 23 Months To Achieve Compliance:

• Benjamin Franklin was right: an ounce of prevention is really worth a pound of cure and nevermore than in wage issues.
• Take advantage of our Pay Equity Audit to achieve compliance and create a rolling affirmative defense.
• Revise pertinent policies, your company’s employment application, training and hiring practices to reduce exposure.

 

We can help!

The EEOC reaches out to young workers about religious discrimination.

Religious discrimination remains an issue in the American workplace. In fiscal year 2015, EEOC received 3,502 charges alleging discrimination on the basis of religion, with the top issues alleged being discharge, harassment, terms and conditions of employment, and reasonable accommodation.

The EEOC has issued a one page fact sheet “designed to help young workers better understand their rights and responsibilities under the federal employment anti-discrimination laws prohibiting religious discrimination.”

If you have young workers in your employ, check out the EEOC Fact sheet.

Questions? We can help. 508-548-4888 or info@foleylawpractice.com

 

 

 

 

 

Let Freedom Ring–Happy July 4th

May the sun in his course visit no land more free, more happy, more lovely, than this our own country! ~Daniel Webster We have exciting news at Foley & Foley, PC –Attorney Mikaela McDermott will join our team July 12, 2016. She brings years of experience in public and private sector employment and labor law. She will make our strong team even stronger. The Massachusetts legislature has been busy. Two bills that will impact employers are still in the works and may land on the Governor’s desk soon: Noncompete reform The Massachusetts House passed a comprehensive noncompete reform bill on June 29, 2016. Because the Senate passed a fairly similar measure last year, the bill is expected to be approved by the Senate before the session closes on July 31, 2016. Whether Governor Baker will sign the bill is unknown at this time. The major changes: By far the most significant change would introduce what is referred to as a “Garden Leave” clause requirement. Under the current version of the law, employers would have a choice of paying either 50% of the employee’s salary for the length of the non-compete or “other mutually-agreed upon consideration… .” Noncompete period is limited to 12 months in duration unless the employee has breached a fiduciary duty or taken property, in which case 24 months is allowed; Noncompetes are not allowed for several categories of workers: Employees terminated for cause or laid off; Non-exempt (OT eligible) employees; Ages 18 or younger; and Undergraduate or graduate interns. Noncompete must include a right to consult with counsel before signing, and must be provided to the employee by a formal offer or 10 business days before the start date, whichever is earlier. Any noncompete entered during employment must be supported by additional consideration beyond continued employment. A court may not strike out unlawful provisions of a noncompete in violation of this law–the entire agreement will be invalid, which is not the practice now. Should this bill become law many current noncompetes in Massachusetts will need to be rewritten. Pay Equity The Senate Bill Proposal – 2119 “An Act to Establish Pay Equity” is gaining momentum. Attorney Mike Foley recently presented on this topic at a Government Affairs Committee of the New Bedford Chamber of Commerce – more about his presentation Here is the bottom line: For decades, it has been illegal in the United States for an employer to discriminate against women, including discrimination against women in terms of compensation. In Massachusetts, employees who believe that they are underpaid on the basis of their gender currently have recourse to four statutes when seeking relief: The Federal Equal Pay Act (FEPA); Title VII of the Civil Rights Act of 1964 (Title VII); The Massachusetts Equal Pay Act (MEPA); and Chapter 151B of the General Laws of Massachusetts (151B). Depending upon your perspective, here are the highlights or low lights regarding the pending pay equity law: Significantly changes the definition of “comparable work” under MEPA. That critical phrase under the proposed law “shall solely mean work that is substantially similar that it requires substantially similar skill, effort and responsibility and is performed under similar working conditions.. .” The key question is how will this impact merit pay, commission pay and any pay system that is not seniority driven. It would become unlawful for an employer to seek the salary history of any prospective employee. Employers could not prevent employees from disclosing their wages, benefits or other compensation or inquiring about or discussing the wages of any other employee. There is more to this far ranging bill and we will, of course, keep you informed. As always, please contact us with any concerns or questions. We can help.

© 2016 FOLEY & FOLEY, PC, ALL RIGHTS RESERVED

Help is on the way! Implementing the new DOL mandates.

As you know, the final version of the Department of Labor’s (DOL) updated overtime rules have been issued.  In a nutshell, these overtime rules will raise the salary threshold for “white collar” workers from $455 per week to $913 per week starting December 1, 2016.

Our clients and the groups we have presented to have expressed a great deal of anxiety about these new overtime rules.  Many are totally overwhelmed.  Who will be impacted?  How do we handle this? What does compliance even look like?

In response to these concerns, we created a Position Classification Service to help our clients and the groups in which we are involved.  We recognize the incredible vulnerability employers are feeling, and we want to help.  We believe this service provides two vital benefits:

• Clear, step by step checklists that allow your business to create legally compliant employment classifications and job descriptions.  The resource documents we provide and the classification process will train your employees so that they are better able to create accurate job descriptions and employee classifications going forward.

• Legal counsel at a flat fee.  We will review your job descriptions and job classifications, edit them, and provide you with clear guidance regarding compliance with these new laws.  Because this review is conducted by outside counsel, it is protected by attorney client privilege.  In other words, if we discover a mistake, that knowledge is protected.

Position Classification Process

 

Please let us know how we can help.