EEO-1 Component 2 pay reporting began Monday: Click here for access to and more information on the reporting.

With Acosta out, DOL may aggressively push pro-business: U. S. Department of Labor Secretary Acosta resigned last week because of his involvement with the Epstein prosecution a decade ago.  Deputy Labor Secretary Patrick Pizzella, a Washington veteran, will be more willing to "hit the gas" once he assumes the acting secretary mantle, said Epstein Becker Green wage and hour group co-chair Paul DeCamp. Pizzella joined the DOL last year from the Federal Labor Relations Authority. Where Acosta had a tendency toward caution, Pizzella is seen as an unabashed champion of the Trump administration's deregulatory agenda.  Source: Law360 7/12/19

Employees want flexibility in payment of salary: The TLNT global Evolution of Pay study, which explores employee and employer perceptions and attitudes about traditional and emerging pay methods, found a demand for more flexibility among employees with regard to how and when they get paid. That makes sense, as alternative work arrangements and gig work are on the rise, and traditional weekly and bi-weekly payroll cycles are too rigid to meet the needs of the agile workforce. Furthermore, expectations around the payment experience and how currency changes hands have changed, in general, given the explosion of user-friendly digital payment tools in the market over the last decade — from PayPal to Square and Venmo.  Another study by ADP confirmed this want: 78% of employers surveyed agree that companies will need to customize payment options to remain competitive in the war for talent. Confirming that view, 62% of employees say pay options, such as the ability to choose pay frequency, would make a difference when considering a job offer. 29% of employees say the ability to have early access to earned wages would make a difference when considering an offer, while 26% say the ability to receive same day pay would make a difference.  Source: TLNT 7/3/19

Workers under 34 years old do not understand 401Ks: A survey of 1,000 workers under age 34—typically considered in the Millennial and Generation Z demographic groups—by Fisher Investments 401K Solutions revealed a significant knowledge gap when it comes to retirement savings. As part of the survey, Fisher asked participants to complete a “knowledge quiz,” which 69% of respondents failed. The failure rate was much higher among Gen Z and Millennial participants (84%), compared to Gen X (70%) and Baby Boomers (55%).  Other findings include: 75% of participants couldn’t identify what a mutual fund is; nearly half didn’t know how much they’d need in retirement savings; and 70% didn’t know when they can tap into 401K savings without paying fees. 43% of respondents reported being less than satisfied with the financial education offered by the provider, while nearly half said they don’t think their plan is competitive compared to others in the industry.  The opportunity for HR is clear . . . Source: HR Executive 7/8/19

Don’t judge applicants or employees on hairstyles:  California has become the first state in the nation to ban discrimination on the basis of applicants' and employees' hairstyles. On July 3, Gov. Gavin Newsom signed Senate Bill 188 into law, which broadens the definition of "race” in California's anti-discrimination law to include "traits historically associated with race, including, but not limited to, hair texture and protective hairstyles.” Employers should plan accordingly.  Source:  Business Management Daily 7/12/19

HSA limits for 2020 announced by IRS:  The IRS recently announced the limits that will apply in 2020 [Rev. Proc. 2019-25, 2019-22 I.R.B. 1261].   The maximum annual HSA contribution for an eligible individual with self-only coverage will be $3,550 in 2020, up from $3,500 for 2019. For family coverage, the maximum annual HSA contribution will be $7,100 for 2020, up from $7,000 for 2019.  The minimum deductibles for HDHPs in 2020 will be $1,400 for self-only coverage and $2,800 for family coverage, up from $1,350 and $2,700, respectively, for 2019.  For 2020, the maximum annual out-of-pocket amount for HDHP self-only coverage will be $6,900 (up from $6,750), and the maximum annual out-of-pocket amount for HDHP family coverage will be twice that, $13,800 (up from $13,500).  Individuals age 55 or older are allowed to make special “catch-up” contributions in addition to their regular HSA contributions. The annual maximum for catch-up contributions is set at $1,000.  An employee who is HSA-eligible on the first day of the last month of the taxable year (December 1 for most taxpayers) is allowed the full annual contribution (plus catch-up contributions, if 55 or older by year end), regardless of the number of months that the employee was actually eligible for an HSA during the year.  Source:  CCH 7/8/19

Michigan Supreme Court to hear paid sick case today:  The Michigan Supreme Court will hear oral arguments on the constitutionality of the Michigan Chamber-supported changes to the paid sick leave and minimum wage ballot proposals that were made at the end of the 2019 legislative session.  The court will hold oral arguments on the issue today, July 17, 2019 at 9:30 a.m.  The oral arguments will be broadcast online.   Among other items, the Court will consider:  1. Whether the Court should exercise its discretion to grant the Michigan Legislature’s request to issue an advisory opinion in this matter; 2. Whether Article 2, Section 9 of the Michigan Constitution of 1963 permits the Legislature to adopt an initiative petition into law and then subsequently amend that law during the same legislative session; and  3. Whether Public Act 368 of 2018 and Public Act 369 of 2018 (the minimum wage and paid sick leave laws) were enacted in compliance with Article 2, Section 9 of the Michigan Constitution of 1963.  It is important to note that the Court has not agreed to rule on the issue, only to hear oral arguments.  If the Court does not rule, the Attorney General could issue an AG opinion finding the law to be unconstitutional (thereby directing state agencies to enforce the original ballot proposal language – i.e., a $12 minimum wage by 2022 and a 72-hour mandate that would apply to employers with 50 or more employees and a 40/32 hour paid/unpaid mandate that would apply to employers with less than 10 employees).  This action would likely set off a new round of litigation.  ASE will monitor the situation.  Source   Michigan Chamber of Commerce 7/10/19