The Essential – August 2024 Edition

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August 2024 // Volume 13 // Issue 3

SUMMER UPDATE

Hello Clients and Friends,

Welcome to the Summer Edition of the Essential!

Summer is in full swing with hot temperatures everywhere. Speaking of hot temperatures…employers in California will need to pay attention to instituting a new indoor heat illness prevention plan that is now in effect. Other California updates include PAGA reform, Ban the Box in LA County, and a new Time of Hire notice. We also include posts on items of national interest including politics in the workplace.  This is sure to be an issue as we near the November presidential election.

Our next issue will be in November 2024.

Enjoy and be well,

Sonya L. Kemp – Founder and President

California Time of Hire Notice Update

The Department of Industrial Relations updated the Time of Hire Notice, which outlines an employee’s workers’ compensation rights. Don’t forget to update this notice in your California onboarding packets!

Click here to download the English Version.
Click here to download the Spanish Version.

Changes to the new Time of Hire Notice:

  • Added Return-to-Work Supplemental Program (RTWSP) information on page 2
  • Information about Permanent Disability under Other Benefits was moved to the section What Are the Benefits on page 2
  • Updated the agency information under Additional Rights on Page 6
  • Added contact and address information for the Division of Workers’ Compensation on page 6

Employers must complete the following areas of the Time of Hire Notice before providing it to new hires:

  1. Workers’ Compensation Insurance Company Information on page 3
  2. Workers’ Compensation Medical Provider Information on page 4
  3. Nearest I&A Unit Information on page 5

Tips:

  • Create a template that includes the information numbered above and then have it handy to provide to all new hires with all the other onboarding packets.
  • You may wish to draw attention to the section where employees can designate their own physician and/or chiropractor as many employees don’t see that section.The employee will need to have their physician sign off on the form.

California Indoor Heat Illness Prevention Regulation

Cal-OSHA Standards Board approved the Indoor Heat Illness Prevention (IHIP) regulation to take effect immediately.

The new requirements apply to all indoor work areas where the temperature is 82° Fahrenheit or higher when employees are present, with very few exceptions. Additional requirements apply if the temperature or heat index reaches 87° or higher, or if employees are wearing clothing that restricts heat removal, or are working in a “high radiant heat area” with temperatures at or above 82°.

Documentation that establishes, implements, and maintains the IHIP must be written and can be included in an employer’s Injury and Illness Prevention Plan. In addition, training must be provided to all employees before employees with a “reasonable expectation of exposure” begins work.  Supervisory employees must receive training on additional topics.  To learn more, please see this comprehensive summary from Littler.

California PAGA Reform

As business owners and leaders in California we often wonder if there is any relief from the myriad of employment laws and regulations with which we must comply.Until recently, one of the most insidious ones, The Private Attorneys General Act, also known as PAGA, topped the list of feared legal actions levied against employers.

While PAGA was recently reformed (a summary of the changes can be found later in this article), bringing some measure of relief to employers, the reformed Act still packs quite a punch.

Private Attorney General Act (PAGA) Defined:

In short, PAGA provides a mechanism for current or former employees (herein “aggrieved complainants”) to file lawsuits seeking civil penalties on behalf of themselves, other employees, and the State of California, for Labor Code violations.

The scope of these suits often includes, but is not limited to, violations related to  health and safety regulations, missed or short meal and rest periods, unpaid overtime and/or wage statements errors.

Pre-Reform PAGA:

Previously, PAGA allowed aggrieved complainants to not only seek damages for violations they personally suffered, but also allowed them to sue for violations suffered by others, even when the violation excluded them personally.  This meant an aggrieved complainant, who received an incorrect wage statement (single violation) could bring forward a PAGA lawsuit for this matter on their behalf as well on the behalf of all other employees who suffered this violation. Further, the employee could also include other labor code violations suffered by their peer complainants covered by PAGA that they had not personally suffered.  In short, under PAGA, an aggrieved claimant can behave like a public agency bringing a lawsuit forward on behalf of themselves, their current or past employee peers, and the State. This provision to allow the inclusion of additional claimants is likely why PAGA lawsuits have often been compared to class action lawsuits.

There was also no prior firm statute of limitations for PAGA lawsuits. Courts have ruled that violations, and therefore penalty consideration, continues beyond an aggrieved claimant’s employment if the company continued to commit the violation(s) in question. This element substantially expands final settlement amounts.

Additional pre-reform PAGA elements included: Stacking of penalties for violations for the same payroll error (such as failure to pay wages timely during employment, and upon separation), exorbitant penalties for wage statement violations, and finally, a one-size-fits-all approach with all employers being treated the same, regardless of size.

The Governor signed a bill overhauling PAGA on July 1. The new law became effective immediately and affects all cases filed after June 19, 2024.

Reformed PAGA:

As a result, the newly reformed PAGA, includes some much-needed good news for employers including:

  • Aggrieved complainants can only represent other aggrieved complainants for violations they personally suffered
  • A one-year statute of limitations has been set
  • PAGA penalties may be completely avoided in cases of a good faith dispute
  • PAGA violations may no longer be “stacked” (no multiple penalties for the same violation)
  • Limited subsequent penalties versus the previous allowance of both initial and subsequent penalties
  • Caps on wage statement penalties
  • A wage statement specific current penalty. This becomes effective 10/1/2024
  • Caps on penalties when employers take “all reasonable steps” to comply with the law
  • Employers who “cure” violations and make employees “whole” may avoid litigation on certain claims
  • Specific rules regarding process to “cure” violations based on employer size. A process for small employers with under 100 employees becomes effective 10/1/2024. A process for large employers with more than 100 employees is effective immediately
Business Leader Takeaway:
  • While reforming PAGA was a positive step, the now moot point of having it on the state-wide ballot to possibly be fully overturned, is now lost.
  • To minimize and possibly avoid PAGA lawsuits, partner with your Human Resources team or an external partner to conduct a review / audit of your internal practices and their compliance with labor law. Completing this process will demonstrate your effort to comply. Also, where issues are identified, follow the PAGA guidelines to remedy identified items.

For more detailed information on PAGA, visit The Labor & Workforce Development Agency (LWDA) at www.labor.ca.gov

Interested in a review / audit of your internal HR practices and compliance with labor law? Our team can help. Contact us at [email protected] to schedule a call to learn more.

Los Angeles County Enacts
“Ban the Box”

Effective September 3, 2024, the Los Angeles County Fair Chance Ordinance will protect job applicants and employees with a criminal history who are applying for a promotion with current employers in the unincorporated areas of Los Angeles County. This ordinance applies to employers located or doing business in the unincorporated areas of LA County with five or more employees worldwide, including owners, managers, supervisors, and independent contractors.Under the ordinance, conducting a criminal background check or inquiring about an applicant’s or employee’s criminal history will be optional unless legally required, and can only occur after a conditional job offer is made. Employers who wish to review criminal history information after a job offer is made must provide specific details about what will be reviewed and why. They cannot ask about criminal history during the waiting period for a review, or post-job offer, and certain types of criminal history, such as arrests not leading to convictions, are completely off-limits.

Similar to other “ban the box” laws, employers must individually assess all relevant facts before making hiring or employment decisions that could negatively impact an applicant or employee. Additional requirements include providing notice, preventing retaliation, and maintaining records. Employers must also post Ban the Box notices in the workplace and online in English and any other languages spoken by at least 10% of their workforce.

Updated Wage Transparency Laws Across the Country

Wage transparency laws continue to expand to various states, keeping in mind that the definition of “wage transparency” may mean different things.  In some states, the laws may prohibit asking job candidates about current salaries, and in others, it may require salaries to be posted in job ads.  And in yet others, it may include both of these things or requirements such as providing salary ranges to employees.

Washington DC enacted wage transparency laws which took effect June 30, 2024. Maryland has added new regulations as of October 1, 2024.

Both Minnesota and Illinois have new laws taking effect January 1, 2025, and Vermont’s law will take effect July 1, 2025.

In addition, some wage transparency laws may only apply to local jurisdictions rather than statewide.  Ohio and New Jersey have local jurisdiction wage transparency laws.

To view details, see the data courtesy of Payscale

Update to the FTC’s Noncompete Agreements Rule

Earlier this year, the Federal Trade Commission (FTC) issued a contentious “Final Rule” that prohibits most noncompete agreements nationwide. The FTC justified this action by stating that such agreements constitute an “unfair method of competition” in violation of Section 5 of the FTC Act.The Final Rule implements a comprehensive ban on new noncompete agreements with all workers, including senior executives. It allows existing noncompete agreements with senior executives to remain valid but renders existing noncompete agreements with other workers unenforceable after the effective date.

In addition, the FTC’s Final Rule would override any state laws that allow conduct prohibited by the Final Rule. The rule was scheduled to take effect on September 4, 2024.

However, almost immediately, opponents challenged the FTC’s Final Rule in court, seeking an order to vacate the measure. One such case involving plaintiffs in Texas along with the U.S. Chamber of Commerce went to the U.S. District Court for the Northern District of Texas. The district court promised a ruling on the preliminary injunction by July 3, 2024.

On July 3, 2024, the trial court issued its ruling, granting the plaintiffs’ motion for a preliminary injunction with the intent to decide on the ultimate merits of the case by August 30, 2024. The court granted the preliminary injunction on the grounds that the FTC “lacks substantive rulemaking authority regarding unfair methods of competition under Section 6(g)” of the FTC Act.

The ruling applies only to the enforcement of the FTC Final Rule for certain named plaintiffs within the Texas district noted above including the U.S. Chamber of Commerce. This decision delays the FTC’s ban on noncompete agreements until August 30, 2024.

Politics in the Workplace

As the 2024 election approaches, protests and political discussions are becoming more common in the workplace.

Political discussions often lead to heated arguments, affecting productivity, morale, and relationships. Various labor and employment law issues can arise, including anti-discrimination laws, the National Labor Relations Act, state meeting bans, and voting leave laws. Employers must understand and manage employees’ rights regarding political speech and activities, and proactively prevent potential issues.

The First Amendment applies only to government actions, so private employers are not limited by it in regulating employees’ communications. There is no federal constitutional right for employees to express political opinions in a private workplace.

Legal protection for political activities in the workplace is limited. Private employers can generally refuse to hire or fire “at-will” employees based on their political views, as “political discrimination” is often not illegal under federal law. However, some state and local jurisdictions offer greater protections, so be sure to review your local and state laws.

So what can employers do?

Employers generally have the right to engage in political activity within the workplace. They can communicate their support or opposition to legislation or regulations and inform employees about the potential impacts on the company and its stakeholders. However, it is a federal crime to interfere with an individual’s voting rights or to coerce them into voting a certain way. It is also illegal to bribe someone in exchange for their vote. Many states have laws against employers intimidating or coercing employees about voting and prohibit employers from recording employees’ political activities without meeting specific conditions.

What federal protections do employees have?

The National Labor Relations Act (NLRA) protects non-supervisory employees, both unionized and non-unionized, who engage in concerted activities for mutual aid or protection. The U.S. Supreme Court has interpreted this to mean that employees can organize to improve their situation outside the employer-employee relationship. The NLRA limits employers’ rights to restrict non-supervisory employees’ discussions about wages, hours, and other employment conditions. If a protest or rally is considered protected concerted activity, employers cannot take adverse action against participating employees. These protections apply when the political speech or conduct is concerted, closely related to employment, and involves employment terms and conditions under the employer’s control.

Political discussions related to employment issues, such as discrimination or minimum wage, may trigger NLRA rights. Restricting these discussions during non-work time or in non-work areas could violate the NLRA. The National Labor Relations Board (NLRB) has expanded the concept of “protected concerted activity” to include advocacy for non-employees, such as those employed by another employer. NLRB General Counsel Jennifer Abruzzo aims to include social justice and certain political statements, like writing supportive phrases on company uniforms, as protected activities. Former NLRB Acting General Counsel Peter Ohr emphasized vigorous enforcement of protections for employee participation in social justice activities.

Political discussions in the workplace can also trigger equal employment opportunity (EEO) laws. Although no federal law explicitly prohibits discrimination based on political affiliation, such conversations can lead to claims of discrimination, harassment, or retaliation under federal, state, or local laws if they involve race, color, sex, sexual orientation, gender identity, national origin, religion, age, or disability. Employers’ actions in response to political discussions might be perceived as evidence of illegal discrimination. While political speech itself is not covered by Title VII, differential treatment based on a protected characteristic may violate the law.

How should employers manage politics in the workplace?

Any workplace policy on politics must consider activities and communications protected by the NLRA and relevant state and local laws. Employers should develop clear policies that address legitimate business interests and minimize ambiguity about what political activities or expressions are permitted. To reduce the risk of discrimination, harassment, or bullying claims, employers may advise supervisors to avoid political discussions with subordinates. Since supervisors are not protected by the NLRA, these guidelines are especially important. Additionally, any policy must comply with applicable state laws. Implementing a social media policy is also advisable.

As noted above, employers must recognize that state and local jurisdictions often offer greater protections for employees than federal laws. For instance, some states extend First Amendment-type protections to private employees. Additionally, employers should be aware of the distinctions between federal and state EEO laws.

This article summarizes information on politics in the workplace from Littler Law Firm.  To read more about employer and employee protections, as well as other best practices, please see the article here courtesy of Littler.

Things to Remember

Reminder: DOL Increase in Salary Threshold
On July 1, the U.S. Department of Labor’s final rule increasing the standard salary threshold for overtime exemption went into effect.  EBHR can help you with determining your exempt / non-exempt classifications, wage and hour issues, and more.

Reminder:  California Workplace Violence Prevention Plan
This plan went into effect July 1 and contains comprehensive documentation and training requirements.  We provide the resources for the plan and training in our last newsletter here.

Questions?  Contact Us!

We invite you to reach out to us for support on matters such as reviewing your employee handbook, crafting policies, employee relations issues, benefits management, scheduling and training employees on Harassment Prevention Training, or any other HR matters.  Please feel to reach out to us at [email protected] for support.

Key Dates

  • Monday, August 26: Women’s Equality Day
  • Monday, September 2: Labor Day
  • Sunday, September 8: Grandparents Day
  • Sunday, September 22: First day of Autumn/Fall
  • Wednesday, October 2: Rosh Hashanah (begins at sundown)
  • Friday, October 11: Yom Kippur (begins at sundown)
  • Monday, October 14: Columbus Day | Indigenous Peoples’ Day
  • Wednesday, October 16:  Boss’ Day
  • Thursday, October 31: Halloween

This publication is intended to provide general information only and is not intended as a source of legal advice.  You should not assume that any information included applies to your specific situation.  Accordingly, you should not use this information as a substitute for legal advice from a licensed attorney.

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