- Posts by Kevin Kleine
AssociateKevin invests time in getting to know his clients, their businesses and their operations. He firmly believes that developing a relationship with clients is as important as knowing the legal issues they face. Having studied business ...
A roundup of employment law changes impacting employers in jurisdictions across the nation.
On Nov. 15, 2024, a federal judge in Texas invalidated the United States Department of Labor’s rule that raised the minimum salary levels under the Fair Labor Standards Act “white collar” exemptions. As a result, the minimum salary levels that were in place prior to July 1, 2024, now apply again effective immediately.
On September 22, 2024, Governor Newsom signed Assembly Bill 3234 (A.B. 3234) into law, which requires employers who voluntarily conduct a “social compliance audit” of their business operations and practices to post a clear and conspicuous link on their website to a report detailing the findings of the employer’s compliance with child labor laws. This law goes into effect on January 1, 2025.
Pay transparency laws are regulations that require employers to disclose salary information. Illinois’s pay transparency law (HB 3129), as well as similar laws in states including Minnesota and Vermont, take effect on January 1, 2025.
In this brief state law update, we'll cover new and updated posters required by state and local law for employers operating in those locations. Locate your state below to determine if any of the following updated employment posters and notices apply to you. Links to posters provided.
On August 23, 2024, in the case of Restaurant Law Center, et. al. v. U.S. Department of Labor, et. al., the U.S. Court of Appeals for the Fifth Circuit invalidated the U.S. Department of Labor’s (DOL) 2021 Tip Credit Rule (”Rule”) that required employers to pay tipped workers the general minimum wage rate for their time spent performing work that is not part of a tipped occupation, including downtime.
Several changes impacting employers in jurisdictions across the nation are summarized in our latest blog post.
Illinois recently passed a number of laws that will significantly impact Illinois employers and require employer policies and employee handbooks to be updated and revised. Read about them in our latest blog post.
On August 2, 2024, Governor Pritzker signed Senate Bill 2979 (“SB 2979”) into law, making significant changes to the Illinois Biometric Information Privacy Act (“BIPA”). By way of background, BIPA requires private employers to obtain a written release from employees before collecting their biometric identifiers and biometric information. The potential ramifications for failing to comply with BIPA were extensive for employers: either $1,000.00 for negligent violations of the Act, $5,000.00 for intentional or reckless violations of the Act, or the amount of the actual damages, whichever is greater.
Illinois continues to change the landscape for employers, allowing employees more leeway when it comes to the Illinois Human Rights Act (IHRA) and Illinois Personnel Records Review Act (IPRRA).
On July 25, 2024, California’s Supreme Court issued a highly anticipated ruling that allows app-based rideshare and delivery companies to classify drivers as independent contractors instead of employees, if certain conditions are satisfied.
In the case of Castellanos v. State of California, California’s Supreme Court upheld Proposition 22 (“Prop 22”) as constitutional, holding that Prop 22 does not unlawfully impede on or restrict the state legislature’s ability to enact workers’ compensation laws or otherwise conflict with the state’s constitution.
Earlier today, the Supreme Court issued a highly anticipated ruling that will strip federal administrative agencies of a significant amount of power. In brief, the Supreme Court’s Loper Bright Enters. v. Raimondo decision eliminates the longstanding “Chevron deference” rule which required courts to defer to an administrative agency’s interpretation of otherwise ambiguous statutes, provided that the interpretation is “reasonable.”
Several States and major U.S. Cities, including California, New York City and Seattle, have passed laws aimed at classifying “gig workers” as employees as opposed to independent contractors in recent years. Challenges to these laws are spreading, but finding no sympathy with courts thus far.
In our latest blog we’re providing the most recent updates to employment posters by state. Check out the links to determine which notices apply to you.
On January 1, 2024, we saw the Illinois minimum wage increase from $13.00 to $14.00. The City of Chicago and Cook County are also increasing their minimum wages on July 1, 2024.
The latest round of labor and employment law updates includes several changes impacting employers in jurisdictions across the nation. Here are the summaries of these changes.
On May 6, 2024, California’s Supreme Court, in a rare and surprising “employer friendly” decision, held that an employer can avoid penalties under California’s wage statement law, Cal. Lab. Code § 226, if it reasonably and in good faith believed it was providing a complete and accurate wage statement in compliance with the requirements of Cal. Lab. Code § 226(a).
On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) issued new Enforcement Guidance on Harassment in the Workplace, which goes into effect immediately. For the past five years, over one-third of the charges of employment discrimination received by the EEOC included an allegation of unlawful harassment based on race, sex, disability, or another statutorily protected characteristic. Employers need to be aware of the EEOC’s new enforcement guidance because it expands the scope of conduct that constitutes unlawful “harassment” in the workplace which violates Title VII of the Civil Rights Act of 1964 (Title VII).
Captive audience meetings are on-the-clock meetings (employee attendance is often mandatory) where employers express an opinion on "religious or political matters” – including whether or not employees should join or support any labor organization.
On April 23, 2024, the United States Department of Labor (DOL) announced its final rule, amending the minimum salary levels necessary for employees to be considered exempt from the overtime requirements under the Fair Labor Standards Act (FLSA) “White Collar” (executive, administrative, and professional) exemptions. The final rule is set to take effect on July 1, 2024.
- Higher Salary Threshold for OT Exempt Employees… The annualized salary level for anyone classified as exempt from OT pursuant to the FLSA’s white-collar exemptions (executive, administrative, professional) must be no less than $43,888 ($844/week) by July 1, 2024 and must then be no less than $58,656 ($1,128/week) by January 1, 2025. Automatic escalators are now built into establishing minimum salary thresholds to meet the OT exemption for white-collar salary exempt workers.
In August 2023, the US Department of Labor (DOL) announced a proposed rule that became final last week, giving employees the ability to designate essentially any third-party as their “authorized representative” during OSHA workplace safety inspections --- even union reps and community organizers. This rule goes into effect on May 31, 2024.
As legalization of cannabis has spread, profits have grown in the 25 states that allow for the retail sale of cannabis for recreational use, and labor unions have found great opportunity for getting a lift from the cannabis industry -- no pun intended. Eight of those 25 states have passed legislation that encourage or even require cannabis industry employers to enter into labor peace agreements (LPA), often referred to as “neutrality agreements,” with labor unions, as a condition of obtaining or renewing a cultivation or dispensary license.
The Illinois’ Genetic Information Privacy Act (“GIPA”) has been Illinois law for over twenty years. Yet, only in the last year or two has there been an explosion of lawsuits being filed against companies in various industries, all alleging violations of the statute.
CAL/OSHA recently issued guidance on its Workplace Violence Prevention mandates that were created and implemented on September 30, 2023 when Governor Newsom signed Senate Bill 553 (SB 553) into law and which go into effect on July 1, 2024.
On Friday, February 9, 2024, Illinois’ General Assembly introduced legislation to eliminate the tip credit in Illinois by January 1, 2025. If passed, ALL Illinois employers will be required to pay ALL their employees at least the applicable minimum wage, including employees who earn or receive tips and gratuities. This would mean that Illinois employers would no longer be able to credit the tips and gratuities their tipped employees receive towards paying them minimum wage starting on January 1, 2025.
On January 18, 2024, the City of Chicago Office of Labor Standards (OLS) issued proposed rules, FAQs, and a Flyer for its New Paid Leave and Paid Sick and Safe Leave Ordinance (Ordinance) effective July 1, 2024.
Employers in each of the below states must be aware of new posters and ensure they are displayed in the workplace -- including, to the extent applicable, remote workplaces. Links to posters are provided below.
Alaska
Arizona
Flagstaff, Arizona
Arkansas
California
Several new changes impacting Colorado’s Equal Pay for Equal Work Act (EPEWA) took effect on January 1, 2024. Employers with at least one employee located and working in Colorado must now comply with certain posting and notice requirements for all Colorado based employment opportunities, including for promotion opportunities. The EPEWA requirements apply only to an employer’s Colorado based employees.
Several changes impacting employers in jurisdictions across the nation are summarized below. Read our blog below to determine if any of these laws apply to you.
California
- California’s statewide minimum wage increased to $16.00 per hour for all employers on January 1, 2024. Some cities and counties in California have a local minimum wage that is higher than the state rate.
Illinois
- Effective 11/17/2023 -- On November 17, 2023, Governor Pritzker Signed H.B. 3641 into law which, among other things, delays implementation of the equal pay for equal work mandate until April 1, 2024. IL ...
There have been several recent changes impacting employers in jurisdictions across the nation. Read the post to see if any of them apply to you.
On Friday, October 6, 2023, Chicago’s City Council passed the “One Fair Wage” Ordinance (“Ordinance”), which gradually phases out Chicago’s “tip credit” over a five-year period until it is completely eliminated by June 30, 2028. At which point, all tipped employees working in the City of Chicago will earn the same hourly minimum wage rate as non-tipped employees. Meaning, on and after July 1, 2028, Chicago employers will no longer be able to credit an employee’s earned tips and gratuities towards their hourly wage rate and will be required to pay all employees, including tipped employees, Chicago’s minimum wage rate.
Unsurprisingly, California is yet again changing its already very employee friendly employment laws. Currently, California leads the nation with its employee friendly laws, though states like Illinois are quickly catching up. The California Legislature’s latest move is a first for any US state by banning “caste” discrimination in the workplace under its civil rights and employment discrimination laws. Seattle passed a similar law in February.
Employers in Indiana, Illinois and Wisconsin must now accommodate an employee’s work-schedule “if an employee's disability substantially interferes with his ability to travel to and from work … if commuting to work is a prerequisite to an essential job function, including attendance in the workplace, and if the accommodation is reasonable under all the circumstances.” Equal Emp. Opportunity Commission v. Charter Communications, LLC, 75 F.4th 729, 734 (7th Cir. 2023).
On Wednesday July 19, 2023, the Chicago City Council introduced legislation to eliminate the city’s “tip credit” over a two-year period (if passed), in an effort to raise the city’s current hourly minimum wage rate for tipped employees to equal the city’s hourly minimum wage rate for non-tipped employees.
On August 4, 2023, Governor Pritzker signed House Bill 2862 into law amending Illinois’ Day and Temporary Labor Services Act. This game changing legislation passed by State Legislature affects Illinois’ Staffing Industry as a whole and ALL EMPLOYERS that utilize temporary labor in Illinois. For more information about this new legislation, see our previous blog on House Bill 2862.
On January 1, 2023, we saw the Illinois minimum wage increase from $12.00 to $13.00. The City of Chicago and Cook County are also increasing their set minimum wages on July 1, 2023.
Welcome to the Labor and Employment Law Update where attorneys from Amundsen Davis blog about management side labor and employment issues.
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