In wake of recent legislation aimed at increasing employee rights and safeguards, the Pennsylvania legislature has promulgated new wage and hour regulations restricting employers and providing greater protections for employees. The new wage and hour regulations are effective on August 5, 2022. The new regulations impact two categories of employees: (1) tipped employees; and (2) salaried employees with a fluctuating workweek schedule.
Category: Counseling & Compliance Training
Update: Michigan Court Stays Decision to Reinstitute Higher Minimum Wage and More Generous Paid Sick Time Laws
Recently, we issued an alert explaining that, on July 19, 2022, the Michigan Court of Claims ruled that the “adopt-and-amend” strategy the Michigan Legislature used in 2019 to enact more business-friendly minimum wage and paid sick time laws was unconstitutional. The court also reinstituted the prior versions of these laws which meant Michigan employers were immediately subject to the more generous Earned Sick Time Act and the higher $12 per hour minimum wage for most employees.
However, on July 29, 2022, the same court issued a stay of its ruling through February 19, 2023 to allow employers and the relevant state agencies time to comply with and enforce the original, reinstituted laws. Accordingly, as of the writing of this alert, employers have until February 19, 2023 to comply with the Earned Sick Time Act (which requires more paid sick time than the now-stricken Michigan Paid Medical Leave Act) and provide at least a $12 per hour minimum wage for non-tipped employees, unless an appellate court or the Michigan Legislature acts before February 19.
IDOL’s Proposed Rules for the Illinois Equal Pay Registration Certificate Provide Additional Insight for Covered Employers
In June 2021, the Illinois Equal Pay Act (IEPA) was amended to add a requirement for certain Illinois businesses to obtain an equal pay registration certificate (EPRC). The Illinois Department of Labor (IDOL) issued its long awaited proposed rules regarding the EPRC requirements on May 20, 2022. The proposed rules are subject to a 45-day comment period, which has now passed, followed by an internal review, and a public hearing on August 9, which may result in additional changes before they become final.
However, some Illinois employers have already received notice of a deadline to file their Application for Certification before the rules are finalized. Therefore, a careful review of the proposed rules is helpful as we anticipate issuance of the final rules. While the proposed rules largely mirror statutory requirements (the basics which were laid out in prior posts here and here), IDOL has clarified or provided additional information on a number of topics.
Restrictions on Hiring Personnel with Criminal Histories in the Insurance Industry
Over the last several years, federal and state governments have pushed employers to reemploy offenders, such as through tax incentives and subsidized training. Despite the public interest in such initiatives and programs, the insurance industry should take caution and consider specific, ongoing statutory obligations regulating or barring employment of individuals with certain criminal records.
OFCCP Issues Important Update About Contractor Portal Certification Process
On July 28, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued important clarifications about the certification process through its Federal Contractor Portal (Portal). As previously reported, the Portal is new this year and required federal contractors and subcontractors (contractors) to certify the status of their annual affirmative action plan (AAP) for each establishment before June 30, 2022. In its bulletin update communicated to subscribers by email, the OFCCP stated that — although the portal remains currently open — it has not extended the June 30 deadline and that contractors that have not yet registered and certified their AAP compliance should do so as soon as possible. But it also explained that the agency will consider those contractors that requested assistance from the OFCCP on or before June 30, 2022 — but have not yet completed registration or certification because of a pending request for assistance — to have met the June 30 deadline.
Continue reading “OFCCP Issues Important Update About Contractor Portal Certification Process”
Michigan Court Reinstitutes Higher Minimum Wage and More Generous Paid Sick Time Laws, Effective Immediately
On July 19, 2022, the Michigan Court of Claims ruled that the “adopt-and-amend” strategy the Michigan Legislature used in 2019 to enact minimum wage and paid sick time laws was unconstitutional. Those laws were regarded as more favorable to businesses, but they amended and substantially differed from the voter-initiated laws the Legislature adopted earlier in the same legislative session. For example, the amended laws reduced the increase of the minimum wage from $12 to $10.10 per hour, lowered the required amount of paid sick time from 72 to 40 hours, exempted employers with fewer than 50 employees, and exempted certain employees, such as executive, administrative, professional and outside sales employees. Part-time employees who worked an average of fewer than 25 hours per week were also exempted from the paid sick leave law. The laws are known as the Earned Sick Time Act (ESTA), which the Legislature amended and renamed the Michigan Paid Medical Leave Act (MPMLA), and the Improved Workforce Opportunity Wage Act (IWOWA), which was amended under the same name.
According to the court, the Michigan Legislature has only three options in response to a proposed law initiated by voters: (a) adopt the initiative as presented, (b) reject the petition, or (c) propose an alternative law. The Michigan constitution does not permit the tactic used by the Legislature to amend the voter-initiated laws which, in the court’s review, “effectively thwarted the intent of the People.” As a result, the laws that have governed Michigan employers since 2019 have been “voided,” and the original voter-initiated laws are effective immediately.