Mid Year 2017 HR Compliance Trends

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Mid Year 2017 HR Compliance Trends The Executive's Roadmap to Best-in-Class HR Strategy August 3, 2017 2017 TriNet Group,

1 Mid Year 2017 HR Compliance Trends The Executive's Roadmap to Best-in-Class HR Strategy August 3, TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.

2 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. Presenters Kelly Pacatte, Sr. Employee Relations Consultant Mike Simon, Sr. Employee Relations Consultant Sam Neff, Sr. Human Resources Consultant

Agenda Trending HR Topics for Mid Year 2017: Paid Sick Leave Pregnancy Accommodations Paid Family Leave New York Scheduling Ordinances Pay Equity Laws Marijuana and

3 Agenda Trending HR Topics for Mid Year 2017: Paid Sick Leave Pregnancy Accommodations Paid Family Leave New York Scheduling Ordinances Pay Equity Laws Marijuana and the Workplace 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 3

4 Paid Sick Leave On July 1, 2017, new paid sick leave (PSL) laws became effective in one state, one county, and four cities. Arizona became the sixth state to enact a paid sick leave law. Employers with 15 or more employees must provide up to 40 hours of paid sick leave. Employers with fewer than 15 employees must provide up to 24 hours of paid sick leave. Paychecks must include employee s time used, time available, and pay received as sick leave. Unused accrued sick time must be carried over to the following year, subject to the 24- or 40-hour usage limit (depending on the employer's size) TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 4

5 Paid Sick Leave Chicago and Cook County, IL local sick leave laws will become effective July 1, 2017 Employers are required to provide up to 40 hours of paid sick leave. Accrued leave may be used beginning no later than on the 180th calendar day following the start of employment. The City has drafted, but not yet finalized, rules allowing employers to grant employees 40 hours in the initial year of employment and 60 hours at the beginning of each subsequent year. If an employer frontloads, then carryover from year to year is not required. Minneapolis and St. Paul, MN An employee may accrue up to 48 hours of safe and sick time per 12-month period. The employer may choose to set a higher limit. There is no cap on the amount of time that an employee can use under the ordinance. Employers can grant employees 48 hours in the initial year of employment and 80 hours at the beginning of each subsequent year. If an employer frontloads, then carryover from year to year is not required. Employers are required to display a poster in the workplace, as well as a notice in the employee handbook TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 5

6 Paid Sick Leave Los Angeles paid sick leave law: Now applies to employers with 25 or fewer employees. Employees may take up to 48 hours of paid sick leave per 12-month period. Mirrors state law for accrual: 1 hour earned per 30 hours worked. Mirrors state law for start of use: 90 th day of employment. Frontloading is allowed: must provide 48 PSL hours at start of 12-month period TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 6

7 Paid Sick Leave All allow earned but unused leave to carry over (caps vary). Each city has different accrual caps and caps on use per year; some accrual caps vary depending on size of employer and some have no usage caps. Some cities expand the scope of PSL use; e.g., designated individual, safe time purposes (domestic violence, sexual assault, stalking), step-siblings, equivalent of family relationship, etc. LA has an anti-retaliation provision: adverse action within 90 days of exercise of leave is presumed retaliatory. Most allow medical documentation for leave of more than 3 consecutive working days or if misuse is suspected/clear evidence of; LA allows reasonable documentation of PSL. Action Items: Review existing paid time off policies for compliance with minimum requirements. Implement paid sick leave policy if no current policy exists or if current policies are not compliant. Ensure systems can calculate and track sick leave accrual and usage TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 7

8 Pregnancy Accommodations Nevada s Pregnant Workers Fairness Act Effective October 1, 2017 (notice provisions effective June 2, 2017) This act applies to employers with 15 or more employees. Covered employers may not refuse to provide reasonable accommodations, take adverse employment action, or deny employment opportunity to employees or applicants for a condition related to pregnancy, childbirth, or related medical condition. Requires covered employers to engage in a good faith interactive process similar to ADA to determine reasonable accommodations. Employers may not require an employee or applicant to accept an accommodation that she did not request or choose, also cannot require employee to take leave if there is another reasonable accommodation that allows her to work. Notices should be provided to new employees, pregnant employees (within 10 days of notification of pregnancy), and posted in a conspicuous place TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 8

9 Pregnancy Accommodations Washington State If a pregnant employee works for an employer with 15 employees or more, she has the right to the following accommodations: Providing frequent, longer, or flexible restroom breaks; Modifying a no food or drink policy; Providing seating or allowing the employee to sit more frequently; and Limiting lifting to 17 pounds or less. In addition, a pregnant employee may have rights to other workplace accommodation(s), as long as there is no significant difficulty or expense to the employer. These are: Job restructuring, including modifying a work schedule, job reassignment, changing a work station, or providing equipment; Providing a temporary transfer to a less strenuous or hazardous position; Scheduling flexibility for prenatal visits; Providing any further accommodations the employee may need TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/2017 9

10 Pregnancy Accommodations Vermont s Pregnant Workers Fairness Act Effective January 1, 2018 Amends the Vermont Fair Employment Practices Act to prohibit an employer from failing or refusing to reasonably accommodate an employee s pregnancy related condition. Employees with pregnancy related condition have the same rights and are subject to the same standards regarding reasonable accommodation as qualified individuals with disabilities TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

11 Pregnancy Accommodations States requiring accommodation California Colorado Connecticut Delaware DC Hawaii Illinois Louisiana Maryland Minnesota Nebraska Nevada (10/1/2017) New Jersey New York North Dakota Rhode Island Utah Vermont (2018) Washington West Virginia 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

12 New York Paid Family Leave New York s law gives eligible employees the right, starting January 1, 2018, to take a leave of absence, with wage replacement benefits, job protection and health insurance continuation rights. Purpose: Parental leave taken to bond with a new child during the first 12 months after the birth or placement of the child, Caregiver leave taken to care for a spouse, domestic partner, child, parent, parent-in-law, grandparent or grandchild with a serious health condition, as defined by the FMLA, and Active duty deployment leave if eligible for time off under the FMLA for the purpose of assisting with family obligations when a family member is called into active military service or is on active duty. Paid Family Leave cannot be used for one s own disability or qualifying military event. Benefits gradually increase each year, starting at eight weeks leave and increasing to 12 weeks in Coverage will be included under the disability policy all employers must carry and will be funded through employee payroll deductions. Most employees will be eligible but waivers must be provided to those who are not. Funded through employee payroll deductions TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

13 New York Paid Family Leave Action Items: Review existing paid time off policies for compliance with minimum requirements. Provide written notice to employees. Stay tuned for additional communications as final regulations were just adopted and additional further guidance is provided (such as what it means for an employee to be restored to a comparable position upon return from PFL as compared to the same or equivalent position reinstatement standard under the FMLA) TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

14 District of Columbia Paid Leave Amendment Act The District of Columbia has enacted the Universal Paid Leave Amendment Act of The Act provides covered employees with: 8 weeks of paid parental leave (birth, adoption or foster care), 6 weeks of paid family leave (the diagnosis or occurrence of a serious health condition of a family member of an eligible employee), and 2 weeks of paid personal medical leave (the eligible employee s own diagnosis or occurrence of a serious health condition). Effective date January 1, Employer Contributions to fund beginning July 1, In order to qualify for family or medical leave, the employee must demonstrate the existence of a serious health condition, which includes a physical or mental illness, injury, or impairment that requires inpatient care in a hospital, hospice, or residential health care facility, or continuing treatment or supervision at home by a health care provider or other competent individual TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

15 District of Columbia Paid Leave Amendment Act Action Items: Review and revise, if necessary, leave policies, handbooks, forms, and procedures to conform to the law s requirements. Train HR and supervisory/managerial staff responsible for reviewing leave requests concerning the law s requirements TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

16 New York City Scheduling Ordinances Effective on November 26, 2017, the New York City Council passed a bill affecting scheduling practices in the retail industry. Employers with 20 or more employees at one or more stores in NYC. Prohibits on-call scheduling. Requires an employer to post work schedules at least 72 hours prior to the start of a shift. Prohibits cancelling or changing schedules within 72 hours of the start of a shift. Requires that employees be provided with at least 20 hours of work during each 14 day period. Additional ordinances apply to fast-food employers in New York City that has 30 or more establishments nationally. Prohibits clopenings unless there is at least 11 hours in between shifts. Must offer current employees at all locations owned by owner additional hours before hiring new workers. Provide employees with their schedules 14 days in advance. Post schedules in a conspicuous area at the workplace and transmit them to each employee in hard copy. Upon employee request, employers are required to set up payroll deductions for voluntary contributions to certain authorized not-for-profit organizations, and remit them directly to those organizations TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

17 New York City Scheduling Ordinances Suggested actions: City retail and fast food employers should consider evaluating and analyzing prior years sales and scheduling data to determine long-term scheduling and staffing needs in preparation for the advance scheduling requirements of the new laws. Review and revise policies and procedures related to scheduling of employees. Post compliance poster (once available) in a conspicuous location which outlines the rights and protections created by the ordinance published by the Fair Workplace legislation and made available on the New York City website. Post and provide all other notices required by the ordinances. Train HR, payroll, and supervisory staff involved in reviewing schedules on the amended law s requirements. Retain records demonstrating compliance with the scheduling laws for at least three years TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

18 Pay Equity Laws Current state of pay equity Federal law State specific Most current laws prohibit employers from retaliating against employees for discussing and disclosing wages to co-workers. Certain pay variations are allowed. Some new and proposed legislation now prevents employers from asking for wage history from prospective employees. Employers should shift focus from previous salary to: Requirements of the position. Applicant s experience. Value of the position TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

19 Pay Equity Laws Puerto Rico Equal Pay Act effective March 8, Oregon Equal Pay Act of 2017 effective October 9, 2017 (salary history ban) and January 1, 2019 (equal compensation and posting requirements). NYC effective August 5, Massachusetts Equal Pay Act effective July 1, San Francisco Parity in Pay Ordinance effective July 1, Philadelphia, PA Wage Equality Ordinance on hold. Proposed bills or amendments TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

20 Pay Equity Laws Recommended next steps: Complete a self-evaluation of pay practices Employers should understand what drives pay division within their workforce and where disparities are. Review recruitment process and employment application Remove any reference to salary history on your employment application. TriNet s application is compliant with this standard. Ensure external and internal recruiters as well as all those who conduct interviews are trained on what they can and can t ask in an interview TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

21 Marijuana Laws Currently, 29 states plus Washington D.C. and Puerto Rico have passed laws legalizing marijuana for medical purposes, and seven states and Washington D.C. have passed laws legalizing marijuana for recreational purposes. Almost every other state is debating legislation to legalize marijuana in some form. Marijuana remains illegal under federal law. Massachusetts Supreme Court recently held that an employee has a valid claim to sue an employer who terminated her for medical marijuana use. The Court overturned a lower court decision dismissing the claim TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

22 Marijuana Laws Maine: Legalization effective date delayed until at least February 1, Arkansas and Iowa: Both passed laws clarifying that legal use of marijuana is NOT protected from employer discipline or termination. New Jersey: Two bills currently debated in the Legislature that could provide protection to employees legally using medically prescribed marijuana TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

23 Marijuana Laws Action Items: Train human resources, as well as supervisory and managerial employees, on the new requirements. Consider, in consultation with counsel, drafting and implementing drug testing, drug-free workplace, and/or zero-tolerance drug policies if such policies do not already exist. If a drug-free workplace policy is already in place, ensure it prohibits illegal drug use, especially at the workplace and during work hours. Make sure any drug-related workplace policy defines illegal drugs to include all drugs illegal under federal, state or local law. Make clear in any drug-free workplace policy and/or prescription drug policy that because marijuana is still illegal under federal law, it is considered an illegal drug under such policies TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 8/3/

HR Compliance Updates for 2017 The Executive's Roadmap to Best-in-Class HR Strategy

HR Compliance Updates for 2017 The Executive's Roadmap to Best-in-Class HR Strategy 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission