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March 1, 2019
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
- Maine Joins States that Ban Salary-History Inquiries April 22, 2019Maine recently became the latest state to ban employers from asking job candidates about their current or past earnings—joining seven other states that impose such bans.
- Putting Humanity into HR Compliance: Collapse the HR Triangle—Enable but Don’t Be an Enabler April 22, 2019How can HR professionals help managers have difficult conversations in a timely, constructive way? And how can HR do so without creating a communication triangle with the three points being HR, management and employees?
- Employers Tackle Social Factors Imperiling Workers’ Health April 22, 2019More employers are working on community health initiatives with their local business associations and municipal governments to address social factors linked with poor employee health.
- Do State Wage and Hour Laws Apply on the Outer Continental Shelf? April 22, 2019The U.S. Supreme Court recently heard oral arguments in a dispute about whether state or federal employment laws applied to an offshore drilling rig worker's wage and hour claims for time spent on a platform located more than three miles from the California coast.
- District Judge Says ERISA Doesn’t Pre-Empt CalSavers Retirement Plan April 22, 2019California can require employers to deduct pay from employees' paychecks for a state-sponsored retirement savings plan without running afoul of federal law, a federal judge in California ruled March 29.