Employment Training, Practices and Procedures

Our colleague Kevin Sullivan at Epstein Becker Green has a post on the Wage and Hour Defense Blog that will be of interest to our readers in the retail industry: “California Court of Appeal Concludes That Certain Types of On-Call Scheduling Triggers Requirement to Pay Wages.”

On February 4, 2019, a divided panel of the California Court of Appeal issued their majority and dissenting opinion in Ward v. Tilly’s, Inc. It appears to be a precedent-setting decision in California, holding that an employee scheduled for an on-call shift may be entitled to certain wages for that shift despite never physically reporting to work.

Each of California’s Industrial Welfare Commission (“IWC”) wage orders requires employers to pay employees “reporting time pay” for each workday “an employee is required to report for work and does report, but is not put to work or is furnished less than half said employee’s usual or scheduled day’s work.” …

Read the full post here.

Building on progressive legislation passed last year, Governor Andrew Cuomo announced a sweeping proposal to strengthen protections against harassment in the workplace. The four part sexual assault and harassment safety reforms initiative, titled “TIME’S UP New York Safety Agenda,” is contained in the Governor’s 2019 Executive Budget, which was released on January 22, 2019. The safety reforms seek to prevent sexual harassment and assault from occurring while simultaneously enabling survivors to seek justice.

Currently, in order to prevail on a claim of sexual harassment/hostile work environment under the New York State Human Rights Law (“NYSHRL”), a plaintiff must show that the “workplace is permeated with ‘discriminatory intimidation, ridicule, and insult,’. . . that is ‘sufficiently severe or pervasive to alter the conditions of the victim’s employment and create an abusive working environment.’”[1]  Governor Cuomo has proposed to amend the NYSHRL to lower the “severe or pervasive” standard, although his proposal did not articulate the new standard that would take its place. Additionally, the proposal would amend existing legislation to require that all Non-Disclosure Agreements include specific language advising employees of their ability to file a complaint with a state or local agency, and to testify or participate in a government investigation.  New York employers would also be required to conspicuously post a sexual harassment educational poster designed and distributed by the State Division of Human Rights. Cuomo further proposes eliminating the statute of limitations on rape claims.

The TIME’S UP New York Safety Agenda arose out of recommendations made by TIME’S UP, led by a coalition of women in New York, including actresses, activists, attorneys and business executives.

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[1] Father Belle Community Ctr., Inc. v. New York State Div. of Human Rights, 221 A.D.2d 44 (4th Dep’t 1996), leave to appeal denied, 89 N.Y.2d 809 (1997).

Our colleagues at Epstein Becker Green have a post on the Hospitality Labor and Employment Law blog that will be of interest to our readers in the retail industry: “Mayor de Blasio Proposes Mandatory Paid Personal Time Law.”

On January 9, 2019, Mayor Bill de Blasio announced his plan to make New York City the first city in the country to mandate that private sector employers provide paid personal time (“PPT”) for their employees. Under the proposal, employers with five or more employees would be required to grant their employees 10 days of PPT to use for any purpose, including vacation, religious observance, bereavement, or simply to spend time with their families. It is unclear whether the proposed legislation would apply to only full-time workers, or whether, similar to the Earned Safe and Sick Time Act (“ESSTA”), it would include many part-time employees as well. The Mayor said he would work with the New York City Council to develop the legislation, and several Council members have already voiced their support for the proposal. …

Read the full post here.

Our colleagues  at Epstein Becker Green have a post on the Hospitality Employment and Labor blog that will be of interest to many of our readers in the retail industry: “New Massachusetts Department of Family and Medical Leave Launches Website, Issues First Round of Guidance.”

Following is an excerpt:

The brand-new Massachusetts Department of Family and Medical Leave (“DFML”) has launched its webpage and issued the first set of guidance for both employers and employees. The DFML was created to help facilitate the implementation of Massachusetts’ new Paid Family and Medical Leave programs (“PFML”). The deadline for employers to start making contributions toward the PFML programs is July 1, 2019, and employees may begin receiving benefits beginning on January 1, 2021.

The DFML’s first set of guidance provides comprehensive FAQ documents, one for employers and one for employees. …

Read the full post here.

On January 1, 2019, the length of paid leave and amount of weekly benefits under the New York Paid Family Leave Act (“NY PFL”) are scheduled to increase, the first of three yearly increases. The NY PFL, which took effect earlier this year, allows employees to collect up to a maximum of eight weeks of benefits within a 52-consecutive week period. In 2018, employees are eligible to earn 50% of their average weekly salary, up to a cap set at 50% of the state average weekly wage. Currently, the NY PFL benefits has been calculated based on the 2016 New York State average weekly wage, which is $1,305.92 per week. Thus, the maximum benefit amount in 2018 is $652.96 per week.

Beginning on or after January 1, 2019, leaves of absence taken under the NY PFL will increase to a maximum of 10 weeks of benefits within a 52-consecutive week period. The benefit amount will also increase to 55% of an employee’s average weekly salary, up to a cap set at 55% of the state average weekly wage. In 2019, the NY PFL benefits will be calculated based on the 2017 New York State average weekly wage, which is $1,357.11. The new maximum weekly benefit in 2019 will be $746.41 per week.

An employee’s payroll contribution toward NY PFL is also scheduled to increase beginning on January 1, 2019. The deduction amount will increase to 0.153% of an employee’s weekly salary, at an annual contribution amount less than the cap of $107.97. This is an increase from the 2018 deduction amounts, which were 0.126% of an employee’s weekly salary, with an annual contribution cap of $85.56.

As a reminder, beginning on January 1, 2020, the maximum length of leave will stay at 10 weeks, but the benefits will be calculated based on 60% of an employee’s average weekly wage, up to a cap set at 60% of the state average weekly wage. On January 1, 2021, the last of the annual increases will be set. Then, the maximum length of leave will increase to 12 weeks in a 52-consecutive week period and benefits will be payable based on 67% of an employee’s average weekly wage, up to a cap set at 67% of the state average weekly wage.

The expiration date for the U.S. Department of Labor’s (“DOL”) model Family and Medical Leave Act (“FMLA”) notice and medical certification forms has once again been extended. The new expiration date is now August 31, 2018. Expiration dates are located at the top right corner of the model FMLA forms.

The DOL’s model FMLA notices and certification forms were originally due to expire on May 31, 2018, then again on June 30, 2018, and the DOL has again pushed the expiration date, now to the end of August, from the July 31, 2018 expiration date. Once approved by the Federal Office of Management and Budget, the new FMLA forms will be valid through 2021.

As previously posted, we will continue to monitor the DOL’s website and post any further developments on an extension of the current forms or issuance of new forms.

This post was written with assistance from Alison Gabay, a 2018 Summer Associate at Epstein Becker Green.

A legislative bargain requires give-and-take from all stakeholders. On June 28, 2018, Massachusetts Governor Baker signed House Bill 4640, “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday” (the “Act”). This “grand bargain” gradually raises the minimum wage, provides for paid family and medical leave, makes permanent the Commonwealth’s annual tax holiday, and phases out Sunday and holiday premium pay requirements. While Massachusetts employers must now adjust to an increased minimum wage and new paid family medical leave program, retailers with eight or more employees may see those costs mitigated by the gradual elimination of Sunday and holiday premium pay mandates.

Currently, Massachusetts retailers must provide premium pay of 1.5 times the regular hourly rate to non-exempt employees who work on Sundays or certain holidays designated by state law. The holidays covered by the premium pay laws are New Year’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, and Veterans Day. The premium pay requirements do not apply to employees who are exempt from overtime pay mandates under Massachusetts law, specifically executive, administrative, and professional employees who earn more than $200 per week.

The Act will reduce, and ultimately remove, Massachusetts’ Blue Law premium pay requirement in accordance with the following schedule:

Effective Date Premium Pay Rate
January 1, 2019 One and four-tenths (1.4)
January 1, 2020 One and three-tenths (1.3)
January 1, 2021 One and two-tenths (1.2)
January 1, 2022 One and one-tenth (1.1)
January 1, 2023 No premium pay

Though covered employers will no longer be required to offer premium pay for Sunday and holiday work, the other provisions in the Blue Law remain unchanged. As such, retail employers may not require employees to work on Sundays or holidays, nor may employers discriminate or take adverse action against employees who refuse to work such shifts.

The phase out of premium pay is intended to provide relief for retailers; however, it also appears to create a subtle complication that may raise costs for Massachusetts retailers over the next four years. Under federal and state law, employers must pay non-exempt employees one-and-one-half premium pay for all hours worked over 40 in a week. Premium pay for work on Sundays and holidays may be creditable toward overtime compensation, but only if it is at least one-and-a-half times that employee’s “regular rate” of pay for the given workweek.

The “grand bargain” legislation thus reduces premium pay below this one-and-one-half-times threshold, such that it is no longer excluded from the overtime pay calculation, and therefore, the Massachusetts premium pay can no longer be used to satisfy the federal and state overtime pay requirements. As such, if an employee works more than 40 hours in the workweek, and some of those hours fall on a Sunday or qualified holiday, Massachusetts retailers may be required to provide the employee with both (1) the Sunday or holiday premium, and (2) overtime (above and beyond the premium pay already provided). To further complicate matters, the premium pay received for time worked on the Sunday or holiday will need to be incorporated into the employee’s regular rate of pay, which will affect the calculation of the employee’s overtime rate of pay. Note also that employees’ entitlement to decline Sunday/holiday work (and not be retaliated against) stays in effect as part of the grand bargain. It remains to be seen whether this fact, when considered along with the elimination of premium pay, will impact the number of employees willing to work on Sundays/holidays.

While state lawmakers may choose to revise the statute as it pertains to this complication, overall, the elimination of premium pay should still come as a welcome relief to many Massachusetts retailers, especially those directly competing with stores across the border in New Hampshire. Given that the first reduction in pay is set to take effect in a matter of months, covered employers should notify their employees about the reduction, ensure overtime calculations comply with federal and state laws, and confirm payroll systems are updated to reflect these changes.

This post was written with assistance from Eric I. Emanuelson, Jr., a 2018 Summer Associate at Epstein Becker Green.

The U.S. Department of Labor’s (“DOL”) model Family and Medical Leave Act (“FMLA”) notices and medical certification forms expire on July 31, 2018. However, the new model forms have not yet been released. The current FMLA forms were originally due to expire on May 31, 2018, but the expiration date was first extended to June 30, 2018 and then to July 31, 2018.

Every three years, the DOL must obtain approval for continued use of its forms from the Federal Office of Management and Budget (“OMB”). Once the OMB approves the new model FMLA forms, they will be valid through 2021. Employers can continue to use the current forms, but they should be aware of the upcoming expiration date and check the DOL’s website periodically for the updated forms. Expiration dates are located at the top right corner of the model FMLA forms.

We will continue to monitor the DOL’s website and post any further developments on an extension of the current forms or issuance of new ones.

This post was written with assistance from Alison Gabay, a 2018 Summer Associate at Epstein Becker Green.

Yesterday, the New York Attorney General (“NYAG”) announced a settlement with national retailer Aldo Group Inc. (“Aldo”) for violation of New York City’s ban the box law, which, among other things, prohibits employers from inquiring into a prospective employee’s criminal history on an initial employment application. The NYAG’s investigation revealed that (i) Aldo’s employment applications impermissibly inquired into the applicant’s criminal history and (ii) Aldo lacked consistent policies and procedures for evaluating the criminal records of applicants and employees, leading store-level managerial employees to believe they had wide latitude in how they could consider the criminal records of applicants and that they could bar applicants with a felony conviction from employment.

Under the settlement terms, Aldo will pay a $120,000 fine to New York State, modify their employment applications to bring them into compliance with New York’s ban the box law, create new policies and training to ensure that its stores individually assess applicants’ criminal histories at the appropriate point in the application process, and report the company’s remediation to the NYAG.

This is the first ban the box settlement reached by the NYAG in 2018, but the fifth such settlement overall. In 2017, the NYAG settled with Marshalls and Big Lots, as reported here.

This settlement should serve as another wake-up call to businesses operating in New York to bring their pre-hiring practices into compliance with New York’s ban the box law. The NYAG’s enforcement efforts are likely to continue and the costs of noncompliance are steep.

Our colleague  at Epstein Becker Green has a post on the Hospitality Labor and Employment Law blog that will be of interest to our readers in the retail industry: “Massachusetts Attorney General Enforces State Ban the Box Law for First Time, Fining Three Businesses and Issuing Warnings to 17 Others.”

Massachusetts is one of many states which have adopted legislation, commonly known as a “ban the box” law, prohibiting public and private employers from requesting criminal record information in a prospective employee’s “initial written employment application” and limiting the type and scope of questions an employer may ask a candidate following receipt of an “initial written employment application.” Massachusetts Attorney General Maura Healey announced that her office has settled with four businesses and issued warning letters to 17 others for violations of Massachusetts’s ban the box law, marking the first enforcement efforts by the Massachusetts Attorney General’s Office. …

Read the full post here.