A Year in Review: New employment laws
January, 2008
2007 marked several significant changes to federal and state laws affecting employers. Nationally, all employers need to be aware that effective December 26, 2007, the Department of Homeland Security requires employers to use the latest revised Employment Eligibility Verification Form (Form I-9 with a revised date of 06/05/07) when hiring new employees. Employers that fail to use the new form may be subject to penalties.
At the state level, the legislatures and courts in Oregon, Washington and California were busy enacting or modifying employment laws. The following highlights some of the changes in the respective states:
OREGON
Wage-related Employment Discrimination. Makes it unlawful for an employer to discriminate against an employee for taking wage-related actions against it.
Inspection of Personnel Records. Employers are required to allow an employee to inspect his or her personnel records within 45 days of the employee's request and provide a certified copy, if requested.
Breast Feeding Accommodation. Employers must provide a breast-feeding employee with a 30-minute rest period for every 4 hours worked to express milk, unless otherwise agreed or if doing so would impose an undue hardship. Reasonable efforts must be taken to provide a private location to the employee.
Oregon Family Leave Act (OFLA)
- Prohibits OFLA leave from running while an employee is on workers' compensation leave. If an eligible employee refuses a bona fide suitable offer of light duty or modified employment, then the OFLA leave will begin to run.
- Allows employees to use any accrued paid sick leave while on OFLA.
- Allows employees to use OFLA leave to care for the employee's grandparent or grandchild who has a serious health condition.
Sexual Orientation Discrimination. Prohibits discrimination based on sexual orientation in employment, housing and public accommodations.
Non-competition Agreements in Employment. The new statute changes classes of employees who may be subject to non-competition agreements and requires pre-employment notice for a valid non-competition agreement with a prospective new employee. Limits non-competition agreements to two years. The new statute does not apply to non-solicitation agreements.
Domestic Violence Leave. Requires employers with six or more employees to provide reasonable unpaid leave to an employee to address domestic violence, sexual assault, or stalking of the employee of his or her minor dependents.
Domestic Partner Rights. Provides that registered domestic partners have the same rights and responsibilities conferred upon spouses under Oregon law. Note: This statute is currently on hold by the United States District Court pending a February 2008 hearing.
Payroll Corrections. Requires that an employer must make payroll corrections within 3 days of notice if the amount is more than 5 percent of the employee's gross wage.
Minimum Wage Increase. Oregon's minimum wage increase from $7.80 per hour to $7.95 per hour, effective January 1, 2008.
WASHINGTON
New Definition of "Disability." Under Washington law, a medical condition is broadly defined as a disability if it (1) is medically cognizable or diagnosable; or (2) exists as a record or history; or (3) is perceived to exist whether or not it exists in fact. This law will likely require Washington employers to provide reasonable accommodations for almost any medical condition.
"Hours Worked" in Wage Claim. The Washington Supreme Court held in Stevens v. Brink's Home Security, Inc., that drivers were "on duty" while traveling between home and the job site and that the company-owned truck was "the employer's premises."
Veterans as a Protected Class. Washington law now protects Washington citizens from discrimination based on honorably discharged veteran and military status.
Credit Checks and New Privacy Rights. An employer is permitted to run a credit check on an individual only if the credit information is "substantially related to the individual's current or potential job." An employer seeking a credit report must disclose in writing its reasons for doing so.
Registering Corporate Officers for Unemployment Insurance. All businesses must register the owners (including spouses), partners, members and corporate officers with the Employment Security Department. Registrants are exposed to personal liability for all unpaid unemployment insurance contributions.
Minimum Wage Increase. Washington's minimum wage increased on January 1, 2008 to $8.07 per hour. Workers age 14 or 15 may be paid 85 percent of the minimum wage, which is $6.86 per hour.
CALIFORNIA
Hands-Free Cell Phone While Driving. Effective July 1, 2008, California law will require that drivers who talk on cell phones use a "hands free" device. Employers should implement a policy requiring all employees to use "hands free" devices while driving on company business.
Earned Income Tax Credit. Employers must notify employees of possible eligibility for the federal Earned Income Tax Credit within one week of the date the employer provides the employee with a W-2 statement or 1099 form. The law provides that an employer must provide the notice to the employee in person or by mail.
Mandated Sexual Harassment Training. California law mandates two hours of sexual harassment training for supervisors or managers if an employer has more than 50 employees in the state. An employer also must retrain all supervisors or managers every two years. Employers should check whether it is time to renew training.
Military Spouse Leave. As of October 2007, California employees who work at least 20 hours weekly and who are a spouse of a member of the military must be provided up to 10 days of unpaid leave when the spouse is on leave from active duty in the U.S. Armed Forces, the Reserves, or the National Guard. This law applies only to employers with 25 or more employees. Employers should include a military spouse leave policy in employee policy handbooks.
Minimum Wage Increase. California's minimum wage increased from $7.50 to $8.00 per hour on January 1, 2008.
"Computer Exemption" Hourly Rate of Pay. California Labor Code Section 515.5 was amended to decrease the minimum hourly rate of pay computer employees must earn to be exempt from California's overtime requirements. The rate was decreased from $49.77 per hour to $36.00 per hour or its annual equivalent.
Immigration/Citizenship Status. California law now prohibits cities and counties from requiring landlords to inquire about a tenant's or prospective tenant's immigration or citizenship status.
Itemized Pay Statements. Although passed by the 2005 California legislature, January 1, 2008 was the deadline for employers to comply with the law prohibiting employers from including any more than the last four digits of an employee's social security number on the employee's itemized pay stub.
If you need assistance in complying with these laws, or other employment-related matters, please contact your Bullivant lawyer for further information.