Quick Hits - August 7, 2019 - American Society of Employers - ASE Staff

Quick Hits - August 7, 2019

Senate confirms EEOC Commissioner and legal counsel:  In a voice vote on July 30, 2019 the Senate confirmed Virginia solo employment practitioner Sharon Fast Gustafson as general counsel of the Equal Employment Opportunity Commission. In addition, EEOC member Charlotte Burrows was confirmed for a new four-year term.  Gustafson was the original counsel in the Young V. UPS case that upheld that UPS discriminated against a pregnant woman while giving accommodations to men who similarly could not drive.  The EEOC will have a quorum to decide if the Component 2 reporting will continue in its current form.  Source:  Law 360 8/2/19

More employers allow PTO use from day one:  More than half of organizations allow immediate use of vacation time benefits, and nearly two-thirds let employees immediately take paid time off (PTO), according to a new survey by WorldatWork. In addition, one-fourth of employers let their workers redirect their unused PTO, such as by donating it to colleagues in need or contributing the cash value to their 401(k) plans.  More than a third (37%) of employees do not use all of their PTO each year. However, employers that establish plan guidelines help promote usage of PTO benefits. For example, in organizations with "use it or lose it" policies, only 19% of employees lose some PTO.   Paid military service time and paid time off to volunteer are on the rise (49% as compared to 39% in 2014, and 35% as compared to 22% in 2014, respectively).  Source:  CCH 7/29/19

Should auto-deduct lunch breaks be used? Auto-deduct policies are "fraught with issues and have been the subject of many class actions in California and elsewhere," said Kathryn T. McGuigan, partner-elect at Morgan, Lewis & Bockius. An employer's use of an automatic deduction policy can increase the likelihood of a class action lawsuit in certain circumstances, McGuigan said. Under those circumstances, courts look to how individual supervisors manage employees' meals. Auto-deduct policies are particularly problematic in certain industries, including healthcare and construction, where breaks are routinely interrupted, said attorney Molly Batsch, an officer at Greensfelder, Hemker & Gale.  "The rule from a wage and hour standpoint is that you have to have a lunch break for the benefit of the employee," Batsch told HR Dive in an interview. "If it becomes predominantly for the benefit of the employer, then it has to be compensated. Typically, we advise if there are any interruptions in the lunch break, the employee needs to be paid for the entire break."  Source:  HR Dive 7/29/19

ACA shared responsibility reduced in 2020: In Revenue Procedure 2019-29, the IRS announced that the premium tax credit affordability percentage for 2020 will be 9.78% of household income — a decrease from the 9.86% limit for 2019. This percentage also applies to the employer shared responsibility affordability safe harbors. Thus, for 2020, employer coverage will be deemed affordable for purposes of the employer shared responsibility assessment only if the required employee contribution for the lowest cost self-only option offered by the employer does not exceed 9.78% of the applicable safe harbor amount.   Source:  Buck 7/25/19

Chicago passes Fair Workweek Ordinance:  The Chicago City Council passed the Chicago Fair Workweek Ordinance, arguably the most expansive law of its kind. When the law takes effect in July 2020, it will require covered employers to publish employee schedules at least ten days in advance and impose premium pay requirements for schedule changes after that time. The law is noteworthy for numerous reasons, including the fact that it covers not just retailers, restaurants, and hotels, but also industries not typically targeted by fair workweek measures, such as healthcare, manufacturing, building services, and warehouse services. Employers operating in Chicago should act now to begin formulating a plan to ensure compliance and minimize impacts.  Source:  Seyfarth Shaw 7/25/19

Illinois passes salary history ban:  On July 31, Illinois Governor J.B. Pritzker signed into law a bill that bans employers from asking job applicants about their salary history. The new law, which takes effect 60 days after enactment, also ensures that employees can discuss their salary, benefits, or other compensation with colleagues, a practice that some employers prohibit or discourage.   Salary history and inquiry prohibitions. Specifically, H.B. 834 amends the Illinois Equal Pay Act to make it unlawful for employers, employment agencies, or their employees or agents to:  Screen job applicants based on their current or prior wages or salary histories—including benefits or other compensation—by requiring that the wage or salary history of an applicant satisfy minimum or maximum criteria; request or require a wage or salary history as a condition of being considered for employment, as a condition of being interviewed, as a condition of continuing to be considered for an offer of employment, or as a condition of an offer of employment or an offer of compensation; and request or require an applicant to disclose wage or salary history as a condition of employment;.  Employers also may not seek the wage or salary history, including benefits or other compensation, of a job applicant from any current or former employer.   This prohibition does not apply, however, where the applicant’s wage or salary history has been made public or the job applicant is a current employee applying for a position with the same current employer.  Source:  CCH 8/5/19

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