Louisiana Society for Human Resource Management
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1 Louisiana Society for Human Resource Management 2017 Regular Session Bills of Interest The following are summaries of bills pending before the Louisiana Legislature during the 2017 Regular Session, and their status as of April 17, If you have any questions, please do not hesitate to contact me, Michael Weiner, Louisiana SHRM s Legislative Director, at mweiner@mfweiner.com or Copies of the bills and more information can be found at HB 112: Requires that any contractor bidding on or entering into a contract with a public entity to comply with the Louisiana Equal Pay for Women Act Proposed law requires any contractor who submits a bid or enters into a contract with any public entity to comply with the Louisiana Equal Pay for Women Act. Proposed law requires that the contractor provide an affidavit that Contractor s pay practices comply with the Equal Pay for Women Act Subcontractors shall comply with the Equal Pay for Women Act Contractor shall create and preserve records showing compliance Violations subject Contractor to termination of contract and those set forth in the Equal Pay for Women Act. HB 222: Prohibits employer retaliation against an employee who discusses wage information Proposed law prohibits an employer from requiring pay secrecy from its employees. Proposed law prohibits an employer from retaliating against an employee for discussion of wage information with other employees. Proposed law clarifies that proposed law does not require any employee to disclose wages, disclose proprietary information or wage information to a competitor, or otherwise restrict a right to which an employee is entitled by federal law. HB 282: Extend pay equity to other persons employed in Louisiana Present law provides that women working as public employees shall be entitled to the same compensation as men employed as public employees. Proposed law extends present law to provide that pay equality shall apply to both men and women. Proposed law adds as employers those who employ fifteen or more employees within the state. Page 1 of 5
2 HB 384: Provides for pay equality for persons employed in Louisiana_. Proposed law repeals current Equal Pay for Women Act. Proposed law defines employers to include any department, etc. of the state and any other entity that employes fifty or more employees in the state. Proposed law prohibits paying wages to an employee at a rate less than another employee of a different sex for the same or equal work. Proposed law allows payment differentials because of Seniority system Quantity of production A differential based on a bona fide factor other than sex and consistent with a business necessity, including but not limited to education, training or experience. Prohibits interference with and retaliation against any employee exercising or attempting to exercise any right provided by the Act. Prohibits discrimination and retaliation against employees for inquiring about or disclosing wage information. Proposed law provides that agreement to work for less by employee is not a defense. Proposed law provides for sixty-day notice before filing a charge with the LA. Commission on Human Rights. Proposed law authorizes successful employee to recover unpaid wages (not to exceed 36 months), interest, and reasonable attorney s fees and court costs. Proposed law authorizes court to award damages, attorney fees, and court costs for frivolous suits. Proposed law provides for a one-year prescriptive period. Proposed law requires employers to keep certain wage records. HB 463: Clarifies that a professional employer organization (PEO) sponsoring a health benefit plan shall be considered the employer of its employees and the employees of its clients participating in the plan. PENDING IN HOUSE INSURANCE Present law provides for regulation of professional employer organizations (PEOs) by the Department of Insurance. Proposed law clarifies that a fully-insured welfare benefit plan offered to the covered employees of a single (PEO) shall be treated as a single employer welfare plan. Proposed law further clarifies that a PEO that sponsors a health benefit plan shall be considered the employer of its covered employees and all covered employees of its clients participating in the plan. Proposed law requires a PEO offering a health benefit plan which is not fully insured by an authorized insurer to utilize a third party administrator licensed to do business in Louisiana, and hold all plan assets in an ERISA-compliant trust. Present law defines "covered employee". Proposed law expands the definition of "covered employee" to include individuals who have received written notice of co-employment with the PEO pursuant to a professional employer agreement between the PEO and the client. Present law defines "co-employment relationship". Page 2 of 5
3 Proposed law clarifies that the relationship must be an ongoing relationship, not a temporary one, and governed by professional employer agreement between the PEO and the client that sets forth the rights, duties, and obligations of each employer. Present law requires the PEO to provide a client with an invoice detailing services provided and federal and state unemployment taxes owed and paid on behalf of covered employees. Proposed law removes this requirement. Proposed law provides that covered employees shall be deemed employees of the client for purposes of determination of tax credits and other economic incentives, even if the PEO is the W-2 reporting employer. Proposed law clarifies that a client company's status or certification as a small, minorityowned, disadvantaged, or woman-owned business enterprise is not affected by entering into an agreement with a PEO. HB 507: Provides with respect to payment of wages upon separation of employment Present law requires an employer to pay an employee the amount of wages owed after a separation of employment. Present law provides that if the employer fails to pay the wages owed, it is liable for 90 days wages or for full wages from the date the employee demand for payment is made, whichever is the lesser amount. Proposed law retains present law and specifies that the 90 days wages owed are working days. Present law requires an employer to pay the amount of wages not in dispute. Proposed law retains present law and provides that an employer may assert a good-faith defense to the payment of penalty wages. Proposed law provides that a good-faith defense is not available to an employer who fails to timely pay any undisputed wages. Proposed law provides that proving a good-faith defense does not relieve the employer of his liability to the employee for attorney fees and costs for a meritorious claim. Proposed law provides that if the court finds that there is a joint employment relationship, each employer is liable for any wages, penalties, damages, interest, attorney fees, and costs owed. SB 2: Provides that the Louisiana Equal Pay Act be applicable to men and private employers and requires government contractors to verify equal pay practices Present law provides that women working as employees of the state of Louisiana shall be entitled to the same compensation as men employed by the state of Louisiana. Proposed law retains present law but extends present law to cover men as well as women. Proposed law retains present law but extends present law to cover local government employees and private sector employees. Present law defines "employee" as a woman who works 40 or more hours a week. Proposed law changes the definition of "employee" to mean any person who performs work for compensation. Page 3 of 5
4 Present law allows exceptions for pay differences in instances in which pay is made under a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a difference based on a factor other than sex so long as the system is job related or furthers a legitimate business purpose. Proposed law retains present law but allows for an exception in differences in pay if the difference is based on a factor other than sex and is consistent with a business necessity. Proposed law removes the provision in present law authorizing an exception if no alternative employment practice would serve the same legitimate business purpose without producing such pay difference. Proposed law disallows discrimination based on sex regardless of whether the discrimination is intentional or unintentional. Proposed law provides that an employee's agreement to work at a rate of compensation that is less than the rate to which such employee is entitled may not be used as a defense by the employer in any action against him brought pursuant to proposed law unless such employee negotiated the lesser compensation for specific accommodations. SB 141: Reauthorizes the Incumbent Worker Training Program Present law provides for a special fund within the Employment Security Administration Fund (i.e. the fund in which employers deposit their unemployment insurance taxes). Present law provides that moneys from the special fund are to be used only for the purpose of upgrading employee job skills through training. Present law provides that the Incumbent Worker Training Program reauthorization shall be expressly renewed by the legislature prior to July 1, 2018, in order for amounts to be charged and credited to the Incumbent Worker Training Account in the following calendar year for use in funding the program. Proposed law extends the authorization of the Incumbent Worker Training Program from July 1, 2018, to July 1, SB 153: Establishes a state minimum wage Proposed law establishes a state minimum wage and sets it at $8.00 per hour beginning Jan. 1, Proposed law provides that the state minimum wage shall be $8.50 per hour beginning on Jan. 1, Proposed law requires that if the federal minimum wage is raised, the state minimum wage shall also be raised to that level. Proposed law provides that, in addition to any other remedy provided by law, an employee will have the right to file a civil lawsuit for damages against the employer for a violation of the provisions of proposed law. Proposed law provides that an employer who violates the provisions of proposed law by paying an employee less than the state minimum wage will be liable to the affected employee in the amount of the difference between the amount that the employee was paid and the amount the employer was statutorily obligated to pay, plus reasonable attorney fees and court costs associated with the civil action. Page 4 of 5
5 Proposed law provides that a lawsuit filed by the employee to recover wages for a violation of proposed law must be commenced within three years from the date that an employee becomes aware that the employer is in violation of proposed law. Proposed law provides a civil fine or penalty of not less than $100 and not more than $500 per employee, per day, for each violation for failure to pay minimum wage. Proposed law provides that, in determining the amount of the civil fine, or penalty, the executive director will consider the appropriateness of the amount of the civil fine by considering the size of the business and the gravity of the violation. Proposed law provides for the following exceptions to proposed law: The provisions of proposed law shall not apply to any of the following students: Student employees of the state. Student employees of state colleges and universities. Student employees of a private employer. The provisions of proposed law shall not apply to the employees who are also exempted from the standard federal minimum wage laws (federal Fair Labor Standards Act) as follows: Tipped employees, such as restaurant workers. Agriculture employees. SB 155: Adds sexual orientation and gender identity or expression in employment discrimination statute. Also adds age to certain provisions. Proposed law adds definitions of "sexual orientation" and "gender identity or expression" for purposes of the Louisiana Employment Discrimination Law. Proposed law defines "sexual orientation" as an individual's actual or perceived heterosexuality, homosexuality, or bisexuality. Proposed law defines "gender identity or expression" as a gender-related identity, appearance, expression, or behavior of a person, regardless of the person's assigned sex at birth. Proposed law provides that it shall not be interpreted to infringe on the freedom of expression, association, or the free exercise of religion protected by the First Amendment of the United States Constition and Article I, Section 8 of the Constitution of Louisiana. Proposed law provides that the provisions on sexual orientation and gender identity shall not apply to a corporation, association, educational institution or institution of learning or society that is exempt from the religious discrimination provision of Title VII. Page 5 of 5
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