Employment Training, Practices and Procedures

Our colleague 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: “Federal Court Concludes That 7-Eleven Franchisees Are Not Employees of 7-Eleven.

Following is an excerpt:

In November 2017, four convenience store franchisees brought suit in federal court against 7-Eleven, Inc., alleging that they and all other franchisees were employees of 7-Eleven. The case was filed in the United States District Court for the Central District of California, entitled Haitayan, et al. v. 7-Eleven, Inc., case no. CV 17-7454-JFW (JPRx).

In alleging that they were 7-Eleven’s employees, the franchisees brought claims for violation of the federal Fair Labor Standards Act (“FLSA”) and the California Labor Code, alleging overtime and expense reimbursement violations. The trial court granted judgment in 7-Eleven’s favor, concluding that 7-Eleven was not the four franchisees’ employer under California law or federal law. …

Read the full post here.

Featured on Employment Law This Week:  The Ninth Circuit held that certain auto service advisors were not exempt because their position is not specifically listed in the FLSA auto dealership exemption.

The 9th relied on the principle that such exemptions should be interpreted narrowly. In a 5-4 decision last week, the Supreme Court found no “textual indication” in the FLSA for narrow construction. Applying a “fair interpretation” standard instead, the Court ruled that the exemption applies to service advisors because of the nature of the work.

Watch the segment below and read our recent post.

Featured as our top story on Employment Law This Week: Me too At Work – Sexual misconduct in the C-Suite leads to shareholder lawsuits.

Last month on Employment Law This Week, you heard that sexual misconduct allegations would start impacting shareholder value and reputation. Well, now we’ve got a case study in Wynn Resorts. After the Wall Street Journal uncovered multiple sexual misconduct allegations against Casino mogul Steve Wynn, the company’s stock fell nearly 20%. Wynn resigned a week later, but the company’s troubles were far from over. The company’s  stock has lost $3 billion in value. The first shareholder lawsuit was filed the day Wynn resigned, and to date three suits by shareholders claim that Wynn and the Board breached their fiduciary duties to the company and its shareholders. Bill Milani, from Epstein Becker Green, has more.

Watch the segment below and read our recent post.

Senator Marco Rubio (R-FL) and first daughter Ivanka Trump have teamed up to develop a paid parental leave program in the United States.  While the plan is in its infancy, Senator Rubio reportedly envisions a plan similar to a proposal from the Independent Women’s Forum, calling for a parental leave program funded by new parents’ future Social Security benefits.  Under that proposal, parents could receive up to 12 weeks of benefits to take paid leave at any time in the first year of their new child’s life in exchange for what the Independent Women’s Forum hopes would be six weeks of Social Security benefits in the future.

The Rubio-Ivanka proposal is not without criticism.  Some conservative commentators say the plan would unfairly burden Social Security’s limited resources.  Further, because the Rubio-Ivanka plan would be available regardless of the size of a new parent’s employer, the leave would not be protected under the FMLA if the parent’s employer does not have 50 or more employees within a 75 mile radius.  Liberal critics believe that the proposal will negatively affect women, who generally receive less Social Security benefits than men for reasons of gender-related pay inequity.

While paid family leave is a concept with bipartisan support, proponents disagree about how to fund such a program.  The president’s recent budget plan, which calls for six weeks of family leave paid for by unemployment insurance, appears to be at odds with the Ivanka-Rubio idea.   The Democrat-sponsored Family and Medical Insurance Leave Act (the FAMILY Act) would provide up to 12 weeks of income through a payroll tax on employers and employees.  Employers should continue to monitor discussions and developments in this rapidly changing area.

Retail employers with international operations and who have executives who engage in cross-border travel may particularly wish to read and take note of Daniel Levy’s post, “It’s a Brave New World: Protecting Trade Secrets When Traveling Abroad with Electronic Devices.”

Following is an excerpt:

Consider the following scenario: your organization holds an annual meeting with all Research & Development employees for the purpose of having an open discussion between thought leaders and R&D regarding product-development capabilities. This year’s meeting is scheduled outside the United States and next year’s will be within the U.S. with all non-U.S. R&D employees traveling into the U.S. to attend. For each meeting, your employees may be subject to a search of their electronic devices, including any laptop that may contain your company’s trade secrets. Pursuant to a new directive issued in January 2018 by the U.S. Custom and Border Protection (“CBP”), the electronic devices of all individuals, including U.S. citizens and U.S. residents, may be subject to search upon entry into (or leaving) the U.S. by the CBP. …

Read the full post here.

On December 20, 2017, New Jersey Gov. Chris Christie signed a bi-partisan bill that effectively makes asking about expunged criminal records off-limits during the initial employment application process.

The law, an amendment to the New Jersey Opportunity to Compete Act (“OTCA”), generally referred to as the “Ban the Box” law, applies to employers with 15 or more employees over 20 calendar weeks who do business, employ persons, or take applications for employment within New Jersey. The OTCA generally prohibits employers from making any oral or written inquiry about an applicant’s criminal background during the initial employment application process.

The amendment, which became effective with signing, goes farther. Now, covered employers are barred from seeking information about the current and expunged criminal records of applicants during the early stages of the employment application process. In addition to barring employers from making oral or written inquiries, the amendment also bars employers from doing online searches for an applicant’s criminal record or expunged criminal record.

In New Jersey, individuals who have been convicted of a prior criminal offense up to and including certain felony offenses may apply to the New Jersey Superior Court to have their record expunged. An individual who was convicted for an indictable offense may present an expungement application after 6 years from the date of his or her most recent conviction, payment of fine, satisfactory completion of probation or parole, or release from incarceration. For disorderly persons offenses and petty disorderly persons offenses an individual may present the expungement application after the expiration of a period of 5 years from the date of his or her most recent conviction, payment of fine, satisfactory completion of probation or release from incarceration. The waiting period to expunge juvenile record is decreased from 5 to 3 years.

Employers may ask about criminal records and any expungements after the initial employment application process. Currently, NJ law does not prohibit employers from refusing to hire an individual because of his or her criminal history. However, under the amendment, employers may not refuse to hire an applicant because of a criminal record that has been expunged or erased through executive pardon, unless the refusal is consistent with other applicable laws, rules and regulations.

As 2017 comes to a close, recent headlines have underscored the importance of compliance and training. In this Take 5, we review major workforce management issues in 2017, and their impact, and offer critical actions that employers should consider to minimize exposure:

  1. Addressing Workplace Sexual Harassment in the Wake of #MeToo
  2. A Busy 2017 Sets the Stage for Further Wage-Hour Developments
  3. Your “Top Ten” Cybersecurity Vulnerabilities
  4. 2017: The Year of the Comprehensive Paid Leave Laws
  5. Efforts Continue to Strengthen Equal Pay Laws in 2017

Read the full Take 5 online or download the PDF.

Employers in New York City are required to provide their employees with reasonable accommodations related to childbirth and pregnancy. The New York City Commission on Human Rights has published a new factsheet and notice. The notice should be provided to all employees upon hire, and posted in the workplace to provide employees with notice of their rights under the NYC Human Rights Law.

The notice and factsheet outline employers’ responsibilities with respect to pregnant employees, and recommend that employers work with employees to implement accommodations that recognize employee contributions to the workplace and help keep them in the workplace for as long as possible. The notice and factsheet also provide employees with examples of reasonable accommodations, such as breaks to rest or use the bathroom while at work, and time and space to express breast milk at work.

In December 2016 Philadelphia’s City Council passed a Wage Equity Ordinance (“Ordinance”) prohibiting employers from asking applicants for their salary history or to retaliate against a prospective employee for failing to answer such a question.  The law, which was to become effective May 23, 2017, has been stayed pending resolution of legal challenge by the Chamber of Commerce for Greater Philadelphia, alleging that the law violates employers’ First Amendment rights.

Nevertheless, on October 24, 2017, the Philadelphia Commission on Human Relations adopted a regulation  (“Regulation”) implementing the Ordinance. The Regulation seeks to clarify what employers may and may not ask and to further define which employers and applicants are covered by the Ordinance.

Covered Employers and Applicants

The Regulation specifies that the Ordinance the term “Employer” applies only to persons who are interviewing applicants with the intention of filling a position located within the City.

Prohibited Inquiries

Under the Regulation, an employer “shall not include a question on paper or electronic applications asking Prospective Employees to provide their salary history at any previous position.” The Regulation also prohibits employers from asking current employees seeking a new position (located in Philadelphia) about the employee’s wage history from any previous employer.

Permissible Inquiries

Employers may inquire into the applicant’s salary expectations, skill level, and experience relative to the position sought. In addition, employers may use voluntary salary history disclosures an applicant makes “knowingly and willingly” during an interview, provided it is not in response to a question from an employer.

Action Items

Although the Ordinance is currently on hold, employers with positions or offices in Philadelphia may nevertheless wish to prepare for the possibility that the law will become effective by:

  • Identifying jobs that are based in Philadelphia. This will be especially important for positions where an employee may work in more than one location.
  • Preparing a Philadelphia-specific employment application that removes any request for salary history.  The ordinance does not expressly state that it is sufficient to have an instruction on the employment application that directs Philadelphia applicants not to answer salary history questions.

On October 23, 2017, New York Governor Andrew Cuomo signed legislation that amends the Clean Indoor Air Act to ban the use of electronic cigarettes (“e-cigarettes”) everywhere that smoking traditional tobacco products is prohibited.  With this amendment, the Clean Indoor Air Act will prohibit both smoking and vaping in certain indoor areas, including places of employment, as well as certain outdoor areas accessible to the public. This legislation will become effective on November 22, 2017.  Prior to this date,  any required posters and signs will need to be updated to include reference to “No Vaping” or “Vaping” along with the “No Smoking” or “Smoking” signs, or international “No Smoking” symbol.