Another California first, protecting off-duty marijuana use: Beginning on January 1, 2024, California employers will be prohibited from discharging employees or refusing to hire individuals based on their off-duty use of marijuana. The law excludes certain groups of employees. For example, the law does not protect employees in the building and construction trades. The law does not apply to "applicants or employees hired for positions that require a federal government background investigation or security clearance in accordance with regulations issued by the United States Department of Defense, or other federal agencies." The law "does not preempt state or federal laws requiring applicants or employees to be tested for controlled substances, including laws and regulations requiring applicants or employees to be tested, or the manner in which they are tested, as a condition of employment, receiving federal funding or federal licensing-related benefits, or entering into a federal contract." Source: Ogletree, Deakins, Nash, Smoak & Stewart 9/21/22
Virtual reality for training employees: In October 2021, Bank of America introduced virtual reality training across its 4,300 financial centers, staffed by roughly 50,000 employees. The program initially prioritized trainings on client and colleague interactions, but proved to be so successful that the organization has since invested in building additional virtual scenarios as elaborate and challenging as bank robberies. "The safety of your employees is based on decisions managers make in split seconds, in some cases," says John Jordan, head of Bank of America's The Academy, which oversees all onboarding and skill development at the company. "We've found VR to be quite the business case, a way to provide better training and better client and employee experiences." Not all of Bank of America's VR trainings are as terrifying as a robbery — though they are as effective, Jordan says. In other situations, it could assist manufacturers getting new hires acclimated to their machines or cells or the line. Source: EBN 9/21/22
Can OSHA regulate virtual reality in the workplace? When it comes to virtual reality (VR), OSHA may likely regulate getting too carried away and, e.g., crashing through television set hazard under the "general-duty clause," a broad provision of law. Where VR sets are used, employers need to make sure that employees are secure in their space and can't hurt themselves or others. How about other common complaints, like eye strain, headaches, dizziness, or nausea? These kinds of complaints may not meet that threshold, especially if they're not recurring or require medical treatment. However, if the complaints continue, if they result in lost work time, or if they are indicators for more serious health problems caused or exacerbated by too much VR time, then OSHA might be able to step in under the general-duty clause. Finally, OSHA recordkeeping requirements might apply to VR injuries and illnesses. Every employer must report workplace deaths and certain extremely serious injuries and illnesses. This includes injuries and illnesses that happen while working from home. Source: Holland & Knight LLP 9/20/22
Controlling rising healthcare costs a priority for employers: Two out of three U.S. employers (67%) plan to prioritize controlling rising healthcare benefit costs over the next three years according to a new survey by broking and solutions company WTW. The survey found U.S. employers project their healthcare costs will jump 6.0% next year compared with an average 5.0% increase they are experiencing this year. Most employers see little relief in sight, as seven in 10 (71%) expect moderate to significant increases over the next three years. Additionally, over half of respondents (54%) expect their costs will be over budget this year. On top of managing costs, 42% cite managing employee affordability as a top priority. To address a higher-cost environment, 52% will implement programs or switch to vendors that will reduce total costs; one in four (24%) will shift costs to employees through higher premium contributions. Four in 10 employers (41%) reported using a defined contribution strategy with a fixed dollar amount provided to all employees that differs by employee tier. Another 11% are planning or considering doing so in the next two years. Further, the number of employers that examine employee health payroll contributions as a percent of total compensation or income as the basis for benefit design decisions is expected to more than double from 13% this year to 32% in the next two years. Source: WTW 9/15/22
Inflation is changing employee choices in open enrollment: A new survey of some 900 employees from The Hartford, an employee benefits and absence management provider, found that 40% of U.S. workers reported inflation will make them scale back on the employee benefits they choose during open enrollment. Additionally, 48% of U.S. workers said inflation is making it difficult for them to pay for their benefits. Meanwhile, other research from health and investment firm Voya reveals that nearly three-quarters of Americans (74%) agree that inflation has made them more stressed about their personal financial situation—up from 66% in March. And the vast majority say it’s causing them to look more carefully at their benefits selections. Employees may cut back on voluntary or supplemental benefits. Others might choose cheaper healthcare options for themselves and their families. Employees already have been scaling back on their retirement contributions throughout the year, according to some reports. This is an opportunity for employers to stand out and provide assistance to retain and attract employees. Source: HR Executive 9/28/22
10th Circuit split on executive authority for federal contractor minimum wage: A Tenth Circuit panel seemed divided last week on whether the President overstepped his authority when he mandated that federal contractors' hourly minimum wage be raised to $15, as the appellate court is mulling two outdoor groups' challenge to the wage hike. The case is Bradford et al. v. U.S. Department of Labor et al., No 22-1023, in the U.S. Court of Appeals for the Tenth Circuit. The President mandated the wage increase in an April 2021 executive order. The DOL finalized a rule in November implementing the executive order, which took effect January 30. The Supreme Court’s last case of the 2022 term, the EPA case, appears to be a crux for the decision in this case. The justices ruled in the EPA case that under the major questions doctrine, the government must point to clear authorization from Congress to regulate and that "a vague statutory grant is not close to the sort of clear authorization required by our precedents." The question now before the court is whether the Procurement Act has granted this authority. No matter how the ruling goes, it will be appealed to the U.S. Supreme Court. Source: Law360 9/28/22