Presenters. Quilting for Employers: 6/5/2018. Kelly Dougherty. Mallory Narang. Patching Together Employment Compliance Trends
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1 Quilting for Employers: Patching Together Employment Compliance Trends Kelly Dougherty, Compliance Counsel, Ceridian Mallory Narang, Compliance Counsel, Ceridian June 7, Ceridian Corporation. All rights reserved. Presenters Kelly Dougherty Compliance Counsel, Ceridian HCM, Inc. Mallory Narang Compliance Counsel, Ceridian HCM, Inc. Kelly is an attorney with years of employment law counseling and litigation experience. From arguing motions in the courtroom to drafting employment agreements, noncompetes, offer letters, severance agreements and employee handbooks, Kelly has seen both sides of the table on employment matters that come up in the workplace. In her role at Ceridian, Kelly enjoys tackling employmentrelated compliance issues in the HCM world and working to help develop cutting edge products. Mallory serves as Compliance Counsel for Ceridian, where she collaborates with agile development teams to integrate employment compliance requirements into the company s Dayforce human capital management software. She is passionate about compliance education and co-founded graduate certificate programs in Human Resources Compliance at Mitchell Hamline College of Law and Risk Leadership at the University of St. Thomas Opus College of Business. 1
2 3 Compliance Trends Impacting Employers: 1. Paid leave paid family leave and paid sick and safe time leave 2. Employee scheduling: requiring advance notice of schedules and premium pay for changes 3. Equal pay: equal pay mandates and reporting, pay transparency, and salary history bans Paid Sick Leave Many states/cities have or are proposing paid sick leave laws Typically, employees accrue time based on hours worked E.g., 23 state proposals in 2017 and more in
3 Paid Sick Leave Common elements of paid sick leave laws: Coverage of employers/employees Accrual of sick leave - typically begins near start of employment and structured as one hour for every 40 hours worked (or similar) Annual accrual and carryover limits (e.g., 40 hours) Lump sum/front loading often allowed Rate of pay (often specific) Reinstatement of sick leave hours Paid Sick Leave Spotlight: New Jersey New Jersey passed state-wide sick leave, effective 10/29/18 This law replaces all 13 existing city-level sick pay laws in New Jersey and bans cities from enacting their own sick pay laws Employees must accrue 1 hour of paid leave for every 30 hours worked Employers may cap accruals, use, carryover of leave at 40 hours per year 3
4 4
5 Paid Sick Leave In response, some states, such as Alabama, Idaho, Michigan, North Carolina, and Wisconsin, have passed laws banning local paid sick leave laws. Keep in mind, this doesn t mean employers cannot provide paid sick leave, just that it is not required by law. Paid Sick Leave Common Employer Considerations: Coordinate paid sick leave with other types of leave (e.g., FMLA) All-inclusive PTO policy or separate policy for sick time Consider state-specific supplements to core employee handbook 5
6 Paid Family Leave There are many existing unpaid family leave laws (e.g., FMLA, various state laws) Many states are creating/proposing mandatory paid family leave laws Most laws are structured through a state-insurance program or payroll tax Federal level some policy makers propose tapping parents future Social Security benefits to pay for leave when a new child is born Paid Family Leave State-administered wage replacement Funded by employee and/or employer contributions 3 state proposals in 2017, more in 2018 Currently in effect: California, New Jersey, New York, Rhode Island Upcoming: District of Columbia, Washington 6
7 New York Paid Family Leave Benefits Law Employees can use PFLBL benefits to care for a new child, close relative with a serious health condition or take time off in connection with a family member s active military service PFLBL benefits are funded by employee contributions The 2018 Employee contribution rate cannot to exceed 0.126% of the New York State Average Weekly Wage Currently $ and updated periodically. (Equates to max deduction of approx. $1.65/week). Employees were able to begin using PFLBL benefits starting on January 1, Paid Family Leave Spotlight: New York New York passed state-wide family leave, effective 1/1/18 Most private employers and employees in New York are covered Benefits will be phased in over 4 years Employees may take benefits in weekly or daily increments Funded by employee contributions to pay for insurance premiums Benefits can be used: To care for a new child To care for a close relative with a serious health condition To take time off for family member s active military service 7
8 Paid Family Leave States continue to propose new paid family leave laws Most recent activity: Connecticut Maine Vermont (vetoed) Wisconsin (did not pass) Paid Family and Sick Leave Employers should periodically: Review existing paid family and sick leave requirements that apply to them Keep up to date on new or proposed paid leave requirements Review their paid leave policies and procedures, revise if necessary 8
9 Employee Scheduling: Overview Goal: to provide low-wage employees with more predictable schedules and pay Topics covered include: Advance posting Schedule flexibility Call-in shift bans Offers of additional hours/shifts Minimum rest periods Premium pay for schedule changes Communications Employee Scheduling: Where is it happening? Seattle, WA SeaTac, WA New York, NY Berkeley, CA Emeryville, CA San Jose, CA San Francisco, CA 9
10 Employee Scheduling: Where could it happen next? Seattle, WA SeaTac, WA Berkeley, CA Emeryville, CA San Jose, CA San Francisco, CA Chicago, IL Philadelphia, PA New York, NY Washington, DC Austin, TX Employee Scheduling: How can you prepare? Pro-tips for meeting this compliance challenge: A matrix is your best friend Conduct regular policy reviews Train management Leverage technology Put it in writing Consider eliminating call-in shifts Sell as a business benefit, not a compliance requirement 10
11 Equal Pay Initiatives Goal: to ensure women and men are paid similar pay for similar work Legal solutions include: Statutory equal pay mandates Salary history bans Pay disclosure Analysis and reporting Equal Pay Initiatives by State Albany County, NY Westchester County, NY New York City, NY San Francisco, CA Chicago, IL Pittsburgh, PA Philadelphia, PA Washington, DC Equal pay mandate Salary history ban Puerto Rico Pay disclosure Analysis and reporting 11
12 Equal Pay: How do you prepare? Pro-tips for meeting this compliance challenge: Work with HR Again, a matrix is your best friend Don t ask for salary history on your job applications Conduct a pay audit Do your research Consider posting pay ranges on job postings Update policies and train hiring managers Questions? 12
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