Mid Year Trending HR Topics for 2016
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1 Mid Year Trending HR Topics for 2016 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited. This proprietary communication has been prepared for educational and information purposes only. The content does not provide legal advice or legal opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, an attorney-client relationship between TriNet and you. TriNet is not an insurance company, but rather is the single-employer sponsor of all of its health benefit plans. Nothing contained herein constitutes an offer to sell, buy, or procure insurance.
2 Agenda Mid Year Trending HR Topics for 2016: Paid Sick Leave Fair Labor Standards Act Ban the Box Discrimination Paid Family Leave Mandatory Retirement Savings 2 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
3 Paid Sick Leave Several Municipalities have enacted paid sick leave ordinances impacting employees and employers within their geographic boundaries, this includes: Los Angeles, CA (effective 7/1/16 & 7/1/17 for small employers) San Diego, CA (effective 7/11/16) Santa Monica, CA (effective 1/1/17) Minneapolis, MN (effective 7/1/17) Chicago, IL (effective 7/1/17) Spokane, WA (effective 1/1/17) Montgomery County, MD (effective 10/1/16) New York City issued updated enforcement guidelines San Francisco made updates to its ordinance to better align with state law Vermont will become the 5 th state with a statewide sick leave law on 1/1/17. 3 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
4 FLSA Current State Current Requirements Meet one of the exemption tests based on job duties > Executives, administrators, professionals, computer employees, outside sales > Based on job duty and not on job title > Further Classification Assistance Department of Labor FLSA Advisor Seek legal advice > These are federal requirements and states may have stricter standards Exempt employees must be paid a salary of at least $455 per week ($23,660 per year) > Executives, administrators, professionals, computer employees > Computer employees can either be paid a salary or $27.63 per hour > Outside Sales do not need to meet the $455 per week threshold 4 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
5 Fair Labor Standards Act (FLSA) Final Changes Raise the minimum threshold from $455 per week ($23,660 per year) to the 40th percentile of earnings for full-time salaried workers or a projected $913 per week ($47,476 a year). Automatic increase to the 40 th percentile every three years. Will be based on 40 th percentile of the weekly earnings of full-time salaried workers in the lowest wage census region (South) Changes to Highly Compensated Employees (HCE s) include setting the HCE annual compensation level equal to $134,004 per year (90 th percentile). Currently, in order to qualify for this exemption an employee must be at a threshold of $100,000 in annual compensation. Effective December 1, 2016 Duties test is unchanged 5 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
6 Fair Labor Standards Act (FLSA) Changes Traditional Rule Minimum salary did not include bonuses or commissions Salary must meet minimum threshold of $455 per week Final Rule Up to 10% of minimum salary level may be paid through nondiscretionary bonuses, incentive pay or commissions Payout must be paid quarterly and evaluated quarterly Allows one pay period after the quarter to make up any shortfall 6 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
7 Ban the Box Austin, Texas Effective April 4, 2016 Portland, Oregon Effective July 1, 2016 Connecticut Effective January 1, 2017 Vermont Effective January 1, The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
8 Discrimination California Amendments to the California Fair Employment and Housing Act (FEHA) took effect on April 1, Massachusetts Effective October 1, 2016, prohibits discrimination against transgender individuals in public accommodations. Colorado Effective August 10, 2016, the Colorado Pregnant Workers Fairness Act may require an employer to provide reasonable accommodations to pregnant individuals if doing so would not cause an undue hardship. Equal Employment Opportunity Commission (EEOC) Proposed guidance on National Origin Discrimination addresses areas such as harassment, language issues, and workplace policies. 8 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
9 New Family Leave Laws Paid Family Leave: San Francisco, California Effective January 1, 2017 for employers with 35 + employees Effective January 1, 2018 for employers with 20 + employees California Temporary Disability and Paid Family Leave Amendments Effective January 1, 2018 Paid Family Leave Benefits: New York Effective January 1, 2018 Effective The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
10 Mandatory Retirement Savings Illinois Effective June, 2015 and requires state to implement the program no later than June 1, Oregon Effective June, 2015 and requires state to implement the program no later than June 16, Maryland Effective July 1, 2016, creates a state-run retirement plan, the Maryland Small Business Retirement Savings Program, for workers not already covered by a retirement plan. Connecticut Effective May 27, 2016, creates the Connecticut Retirement Security Program for workers who do not have access to an employer-sponsored qualified retirement plan. 10 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
11 Strategic Planning Step One Awareness Step Two Review Policies Step Three Ask Critical Questions Step Four Tracking Deadlines 11 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
12 Summary Ensure time off policies comply with applicable state and local sick leave laws. Prepare for federal overtime changes by reviewing salary information for each employee. Ensure all hiring managers understand Ban the Box implications. Review EEO and anti harassment policies to ensure coverage for all protected classes. Prepare for the upcoming Paid Family Leave requirements. Understand mandatory retirement savings. 12 The Executive's Roadmap to Best-in-Class HR Strategy 2015 TriNet Group, Inc. All rights reserved.
13 Q&A TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.
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