HR Compliance Updates for 2017 The Executive's Roadmap to Best-in-Class HR Strategy
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1 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 is prohibited.
2 Agenda Trending HR Topics for 2017 Paid Sick Leave Marijuana Legalization OSHA Drug Testing Rule CA and NY Exemptions Background Checks Equal Pay Bathroom Bills Mandatory Retirement Accounts Form I-9 Changes San Francisco Paid Parental Leave Ordinance 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 2
3 Paid Sick Leave Effective January 1, 2017, Vermont became the 5 th state to enact a paid sick leave law Employers with 5 or more full time employees in the state must provide up to 24 hours of paid sick leave Employers with less than 5 employees in the state are required to comply with the law by January 1, 2018 Effective July 1, 2017, Arizona becomes the 6 th 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 less 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 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 3
4 Paid Sick Leave Minneapolis and Chicago local sick leave laws will become effective July 1, 2017 Minneapolis employers with 6 or more employees must provide up to 48 hours of paid sick leave Chicago employers are required to provide up to 40 hours of paid sick leave Employee is paid at their regular rate of pay when they use sick leave Employers can require employees to follow normal policy and procedures for notification of absence Employers can require documentation for absences of 3 or more consecutive days Five California cities passed paid sick leave laws that mirror/expand state law: Berkeley, Los Angeles, San Diego, San Francisco, and Santa Monica Effective dates: LA 7/1/16, SD 7/11/16, SF & SM 1/1/17, Berkeley 10/1/17 All mirror state law for accrual: I hour earned per 30 hours worked All mirror state law for start of use: 90 th day of employment All mirror state law allowing frontloading (amounts vary) 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 4
5 Paid Sick Leave All allow unused leave to carry over (caps vary) Each city has different accrual caps and caps on use per year; some vary caps depending on size of employer Some cities expand scope of use of PSL; e.g., designated individual, safe time purposes (domestic violence, sexual assault, stalking), step-siblings, equivalent of family relationship, etc. LA has anti-retaliation provision: adverse action within 90 days of exercise of leave presumed retaliatory LA allows reasonable documentation of PSL; San Diego allows it for leave of more than 3 consecutive working days Some require reinstatement of unpaid accrued hours upon rehire 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 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 5
6 Marijuana Legalization Currently, scores of states and Washington, D.C. have legalized marijuana for medical use, and 8 states and Washington D.C. have legalized recreational use of marijuana In 2016, 8 states legalized marijuana either by legislation or ballot initiative. (California, Massachusetts, Maine, Montana, Nevada, Arkansas, Florida, North Dakota,) -These states have not completed drafting legislation or rules, and do not have enactment dates at this time Marijuana use is still illegal under federal law 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 6
7 Marijuana Legalization Action Items: Train HR staff and managers on the law in their jurisdiction If you are a Drug Free Workplace, make sure your policy includes language prohibiting all drug use illegal under federal, state or local law If policy includes random drug testing or drug testing at the time of hire, notify employees or new hires that marijuana remains illegal under federal law, and they may be disciplined up to and including termination for testing positive for marijuana Medical marijuana is not protected under federal law, and employers do not have to accommodate employees using prescribed marijuana 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 7
8 OSHA Drug Testing OSHA Injury and Illness Reporting (29 C.F.R ) (Law intended to prevent under-reporting of injuries and illnesses) Prohibits blanket policy of drug testing employees who report or are involved in actions leading to an injury or illness Employers may drug test, but: Generally there must be a reasonable possibility that drug use was a contributing factor leading to injury or illness, and The drug test must be capable of measuring impairment at the time the injury or illness occurred (which tests for alcohol do but tests for other substances do not) So, employers can no longer do drug testing after every incident regardless of whether there is reasonable suspicion that drug use played a role, unless applicable state laws dictates such an approach And certain tests may be off-limits even when there is reasonable suspicion of impairment Action items: Ensure policy limits post-injury drug testing Train HR staff and managers on the change in post-injury drug testing law 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 8
9 California and New York Exemptions California and New York have state requirements that go beyond federal law in order for employees to be classified as exempt from minimum wage and overtime requirements California s salary threshold for 2017 is equivalent to $43,680 for employers with 26 or more employees & $41,600 for employers with 25 or fewer employees New York s salary threshold is based on geography NYC employers with 11 or more employees = $42,900 NYC employers with 10 or less employees = $40,950 Employers in Nassau, Suffolk, and Westchester = $39,000 Employers in the rest of the state = $37,830 Action Items: Review employee population for salaries that may fall below the thresholds Review exemption status of employees who are borderline to determine salary increase or reclassification 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/2017 9
10 Background Checks Connecticut Ban the Box Law Prohibits employers asking about prior arrests, criminal charges, or convictions during application process (unless required by another law or regulation) Employers may not consider erased convictions, or convictions that were pardoned or granted a certificate of rehabilitation. Does not apply to independent contractors Action Items: Ensure job postings do not contain prohibited language Ensure job applications do not contain prohibited questions Train all employees involved in the hiring process 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
11 Background Checks Vermont Ban the Box Law Prohibits employers from asking about prior convictions during application process, except: if required by law or regulation if the conviction creates a disqualification Requires employers to allow applicants an opportunity to explain the conviction and any rehabilitation Action items: Ensure job postings do not contain prohibited language Ensure job applications do not contain prohibited questions Train all employees involved in the hiring process 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
12 Background Checks Trend Many states and municipalities are currently working to create Ban the Box laws The federal government is working on a Ban the Box law for federal contractors TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
13 Equal Pay California Fair Pay Act (Labor Code ) Prohibits different pay for substantially similar work based on gender, race, or ethnicity, except where based on: Seniority system Merit system System based on measurable quantity or quality of production Bona fide factor other than gender, race, or ethnicity that is job related and meets a business necessity Action items Audit pay to ensure no appearance of disparity Ensure compensation policies and practice comply with the law Train all employees involved in compensation process 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
14 Equal Pay Massachusetts Prohibits gender disparity in pay for comparable jobs, except; Bona fide seniority system where pregnancy-related or protected family or medical leave does not reduce seniority Bona fide merit system Bona fide system measuring pay by quantity or quality of production Geographic location in which job performed Education, training, or experience reasonably related to the job and consistent with business necessity Prohibits employers from preventing employees discussing wages or disclosing wage information 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
15 Equal Pay Massachusetts (continued) Prohibits employers from screening applicants based on wages Prohibits requesting applicant s salary history Prohibits obtaining salary history from an applicant s current or previous employer, unless an offer has been made and the applicant consents Action items Audit employee compensation to ensure no disparities Ensure all policies comply with the law Ensure job applications and interviews do not ask for salary info Train all employees involved in compensation and hiring processes 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
16 Bathroom Bills There are 8 states considering legislation that would restrict access to facilities based on a person s sex or gender at birth Currently North Carolina is the only state to enact such a law Legislation under consideration in Alabama, Missouri, and Washington could potentially affect private employers California has enacted the first All Gender facilities law Requires any business with a single-occupant toilet facility to identify such facility as all-gender Businesses will have to post a restroom sign that complies with CA regulations to identify the facility Action Items Review current facilities and policies and make changes as necessary TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
17 Mandatory Retirement Accounts California and other states have joined the growing list of states that are requiring employers to provide qualifying retirement savings accounts for their employees or automatically deduct wages into state-sponsored retirement accounts Action Items Review existing employer-sponsored retirement plans to determine if they are qualified as an alternative plan under the applicable law If no qualified retirement plan is currently offered, contact TriNet to establish a retirement plan 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
18 Form I-9 Changes New version of the form I-9 was announced on 11/14/2016 Employers must use only the new version of the form beginning on January 22, 2017 it s already been made part of TriNet s process Can be completed on the computer (smart form), on paper, or a combination of both Improvements have been made to the form to assist with compliance include: Embedded instructions for completing each field Validations on certain fields to ensure information is entered correctly Drop-down lists and calendars Buttons that will allow users to access the instructions electronically, print the form, and clear the form to start over Requirement that the worker provide only other last names used, rather than all other names used Action Items: Train managers on the new form and requirements for having the form completed. Review recordkeeping and retention practices 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
19 San Francisco Paid Parental Leave Ordinance San Francisco's Paid Parental Leave ordinance requires employers to provide supplemental compensation to employees receiving California state Paid Family Benefits for the purpose of leave to bond with a new child, such that the employee will receive full wage replacement during bonding leave. The amount of supplemental compensation an employer would pay is the difference between the employee s current normal gross weekly wage and state benefits received. Employer coverage will take place in phases: > January 1, 2017: employers with 50 or more employees > July 1, 2017: employers with 35 or more employees > January 1, 2018: employers with 20 or more employees 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
20 San Francisco Paid Parental Leave Ordinance Eligible employees include full-time, part-time, and temporary employees that have worked for a minimum of 180 days for the employer, and that work at least 8 hours per week. At least 40% of the employee's total weekly hours must occur within the city of San Francisco. The employee must also be deemed eligible to receive California PFL benefits to bond with a new child. To receive supplemental compensation, an employee must provide the employer either with a copy of the Notice of Computation of California Paid Family Leave Benefits or other legally authorized statement, or authorize the state to disclose the weekly benefit amount to the employer TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
21 San Francisco Paid Parental Leave Ordinance If an employer has a policy providing at least 6 consecutive weeks of fully-paid parental leave in any 12-month period for new child bonding, regardless of whether it includes California state benefits, the employer is not required to provide supplemental compensation. THIS IS THE FIRST LAW OF ITS KIND (IN THAT IT REQUIRES DIRECT PAYMENTS FROM EMPLOYERS) AND IS NOT TO BE CONFUSED WITH STATE PFL BENEFITS IN CALIFORNIA AND OTHER STATES TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
22 Thank you 2017 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. 1/25/
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