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The Year of the Employee

Although this was written several years ago, the trend towards new laws that protect employee rights has continued to snowball. Add a low unemployment rate and a shrinking labor pool to the mix and employees are really in a positon to call the shots.

A clear pattern is emerging – and perhaps you already see it. New legislation, greater enforcement, high profile court cases and shifting policies and attitudes about new technology has led us to dub this “The Year of the Employee” in terms of winning new rights, garnering enhanced benefits and filing more lawsuits against employers.

Many years ago, unions were necessary to protect the safety of their membership. As those workplace safety issues mitigated, and union membership steadily declined, State, City and County governments have stepped into the role of “workplace protector” and have really turned up the heat on businesses.

These new laws and new policy shifts have done more to propel employee rights in the last few year than in the last five or even ten years!

Legislation Contributing to Year of the Employee

The Affordabe Care Act (ACA) iwas the single biggest example. Companies with 50 or more FTE's were required to provide health insurance to their employees. It is unclear, as of July 2017, whether Congress will be able to repeal the ACA in part or its entirety. Until then, companies must continue to operate under current law.

In addition to healthcare, many states have or plan to enact sick leave, maternity and parental leave, as well as pregnancy accommodations. It is very likely that businesses of all sizes will need to be sensitive to accommodations and treatment of workers. 

Massachusetts has been extremely active in the legal area, leading the charge with a slew of worker protections, including a minimum wage hike, sick leave (impacting businesses of all sizes), domestic violence leave, and parental leave expansion, among other pending legislation. 

Wage Enforcement Contributing to Year of the Employee 

Add to this list some high profile wage and hour violations as a result of forcing employees to work off the clock, failure to pay overtime, inappropriate tip sharing and other issues (see case about a Korean restaurant in NY).

We also expect that new rules for Overtime, although currently on hiatus, will change in some fashion with the new administraiton. The Department of Labor (DOL) will provide new guidance on the Fair Labor Standard Act’s exemption rules, determining which employees can be paid on a salary basis without overtime, later in 2017.

Massachusetts’ Attorney General, Maura Healey, is no shrinking violet and many in the business community suspect she will continue to focus on wage and hour violations and the earned sick time law, with a vengeance for enforcement. Watch for developments regarding a Paid family Leave law, which will tax Massachusetts employers for paid leavea and be administered by the state. See AIM blog 

Employers should recognize that filing complaints is now easier than ever with websites. Class action cases are quickly becoming the norm and employment related lawsuits increased over 400% since the 90’s. Source

Social Media Liberties also Contributing to Year of the Employee

court case (NLRB ruling) protected an employee for posting vulgar and obscene comments on Facebook against a supervisor and his family! Case  It is becoming increasingly difficult to determine what is a fire-able offense, and what must be accepted as protected speech. These type of cases seem to appear every week, and employers are increasingly constrained from taking action against this "free speech".

Gone are the days when you can require an employee to provide you with their social media passwords.  Language forbidding negative talk about the company, employees or supervisors in your employee handbook is facing an uphill battle.

Medical Marijuana and Marijuana Use Laws Putting Companies in a Bind

Many companies perform random drug tests for their operations. In states where stores and possession is legal, this posed a grey area for THC testing. Watch for court action on wrongful termination from drug tests and approved medical use.

Sexual Discrimination Complaints Gaining Steam and Media Attention

Experts say the outcomes of three gender-bias lawsuits filed in Silicon Valley could affect HR organizations across the country. In California, Sexual-discrimination complaints have soared 61% from 2011 to 2014; The court cases have mainly focused on big name companies, while smaller case have gone to mediation, but some new laws may come out of these cases. See Sexual Discrimination Cases

Religious Discrimination and Accommodation in the Year of the Employee

Companies needs to be very sensitive to religious wear (i.e. head scarves) during the interviewing process and in managing their workforces. Retailer Abercrombie & Fitch is in the middle of a Supreme Court case on this very topic.

Employee Scheduling Laws May Develop in the Year of the Employee

Think the government won’t interfere with scheduling employees? Wrong. The practice of “Clopening”, where employees are scheduled to Close the business and then return early to open the business (having little rest in between) is gaining legislation steam as an unfair labor practice. New York and Seattle are leading the way on this front. 

Another related government initiative is looking into last-minute scheduling. Many retailers and other similar establishments have instituted “on-call” scheduling for much of their staff. Various government entities are investigating these practices and new legislation could be on its way. One rumor floating around is that employers could be forced to issue employee schedules 21 days in advance!

New York’s Attorney General is currently scrutinizing 13 large retailers for their staffing practices. Story

Watch for guidance and potentially a new round of laws to set minimum employee “rest periods”. Read more

Collectively, this is really shaping into “the Year of the Employee.”

What Can Businesses do to Better Protect Themselves in the Year of the Employee?

Your risk as a business for lawsuits, fines and penalties has never been greater! But there are ways for you to plan ahead, and start reviewing areas that are hotspots within your organization to reduce your risk.

5 Things you can do to protect your business:

1. Understand and Meet Your Obligations Under ACA

Begin looking at your plans and work with your brokers to ensure that your plans are affordable and do not put you into the “cadillac tax” category.

Ensure that you have an adequate means to record and calculate work hours for employees. Manual calculations will make it much harder. Consider implementing a Time & Attendance solution.

2. Revise/Revamp Job Descriptions

The Job Description has been a central point in many legal cases lately, and MassPay has been recommending that businesses take a closer look at each job description in order to avoid potential trouble. Hot spots that cause legal issues include vagueness and discriminatory requirements that serve to exclude a specific group or class of workers. Read more

3. Identify Potential Wage/Hour Violations and Train Your Managers

The Economic Policy Institute estimates that employees lose $50 billion annually to wage theft (big number that invites enforcement). Some of the most common and visible violations include:

  • Paying below minimum wage
  • Diverting Tip Money
  • Refusing to pay Overtime
  • Not getting tips on credit cards
  • Improper records of work hours
  • Working off the clock
  • Not posting information on worker rights

In this day and age, technology can be both a great tool as well as a huge liability for businesses. Allowing non-exempt employees to access email or other work-related content via smart phones and tablets can create catastrophic wage and hour violations for an employer.

4. Update Your Employee Handbook

Vague policies, as well as missing policies, such as an inclement weather policy or a BYOD (Bring Your Own Device) policy, can lead to confusion, misinterpretation and risk of legal action if corporate policy is not clearly documented and updated to keep up with changing workforce issues. Should a company be faced with a wrongful termination or other employment lawsuit, a court will typically refer to the employee handbook and related policies as an initial step in the case.

5.  Automate Your HR & Payroll Processes

Using HR technology like iSolved HCM will streamline your internal process, help you document work hours and absences, maintain I-9 and other employee signed documents and keep you in compliance with ACA, minimum wage and other laws.

In today’s increasingly regulated business climate, avoiding these hotspots and staying on top of new laws has become a full-time job. Let MassPay help you manage your workforce amidst “The Year of the Employee”.

Need help with HR/Payroll issues, getting in compliance, and training/coaching your managers? Turn to our HR Services to become a better employer.