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April 22, 2019 Update
SHRM Legislative Update Jackson Lewis PC- 2019 - April 16 2019
March 1, 2019 Update
Full information here: SHRM Legislative Update March 1, 2019
· Salary Threshold – Multiple sources indicate the Department of Labor will raise the salary threshold for workers automatically entitled to overtime to $35,000 a year. The new rule would significantly expand the number of workers eligible for overtime pay. Sources also indicate the DOL plans to announce that it is considering ways to periodically increase the salary threshold based on inflation and other factors. It is anticipated the proposed rule will lay out ideas for periodic updates, but will not propose a specific one. Regulators would like to see the rule finalized before the 2020 election so it will be harder to undo if a Democratic wins the White House. The rule will likely face court battles from both Democrats who support the Obama era proposed salary threshold ($47,000) and small business employers who believe the proposed number is too high. We will keep you updated on developments.
· Pay Bias Legislation – The House Labor Committee on February 26th approved legislation designed to close the gender pay gap, clearing a path for a full chamber vote. The Committee on Education and Labor voted in favor of the Pay Check Fairness Act (H.R.7,S.270) along party lines. This bill would require employers to prove that gender based pay disparities are based on bona fide related factors such as education, training or experience that is consistent with business necessity. The burden would be placed on the employer to prove satisfaction of this standard and many Republicans fear that the bill could significantly restrict employers and potentially increase employment related litigation regarding questions of pay validity. If passed by the House, the bill would face strong opposition in the GOP controlled Senate.
· Discrimination/Retaliation Standard – The “Protecting Older Workers Against Discrimination Act” was reintroduced into Congress earlier this month. This legislation would require a uniform standard for all federal discrimination and retaliation claims (including age discrimination) using a “motivating factor” threshold and not a “but for” standard in ultimately determining whether discrimination or retaliation occurred. Previously versions of this legislation have failed to gain traction throughout the year and have not been passed.
· Arbitration - On February 28th, Democratic lawmakers unveiled the Forced Arbitration and Justice Repeal Act which would bar mandatory arbitration agreements not only in employment disputes, but also for consumer anti-trust and civil rights claims. Additionally, it would block agreements that stop individual workers and businesses from joining or filing class actions. It is estimated by some studies that over 60,000,000 employees in the non-union private sector were covered by mandatory arbitration agreements in 2017.
US news
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- Contact Tracing for Employers June 2, 2020After learning that one or more employees have been diagnosed with COVID-19, companies should act quickly to identify and notify any co-workers who might have been exposed during the infectious period. Employers should be careful to maintain confidentiality and also avoid alarming the entire workforce, legal and HR experts said.
- Pension Plan Participants Can’t Sue Funded Plan for ERISA Violations June 1, 2020Pension plan participants didn’t have the right to sue the plan’s fiduciaries for allegedly mismanaging funds because they continued to receive their full monthly payments, the Supreme Court found in a ruling that limits the ability of pensioners to bring such suits.
- South Africa’s Employers Adjust to Phased Reopening June 1, 2020South Africa, which has seen its economy crater since a lockdown was imposed March 27 to slow the spread of coronavirus, began its phased reopening May 1.
- Outrage, Despair over Floyd's Death Disrupts Employers Across US June 1, 2020Protests and marches were held around the U.S. and in other countries to protest police brutality and racism in the treatment of George Floyd by police, who died May 25 while in police custody. Some protests turned into mob scenes as people vandalized and looted businesses.