The Connecticut General Assembly is already busy with a full compliment of employment law bills under consideration.  At this point, it seems likely that several will pass in one form or another and thus employers should be playing close attention to the developments.

Here are a few of the Senate ones that I’m watching (I’ll tackle the House bills in tomorrow’s post – now available here):

  • Senate Bill 1 – This is the Paid Family and Medical Leave bill that has been kicking around for a few years.  Late last week, the Labor & Public Employees Committee issued a new draft.  There are a LOT of details to this but in essence, the bill would have two major changes. First, it would create a new paid family leave insurance program that would take contributions from employees and distribute those contributions to employees who need to take paid leave — similar to a workers’ compensation program.  Second, the bill would make significant changes to the existing Connecticut Family Leave law, to broaden the law’s application to all types of employers and broaden when an employee may take the leave as well.  More to come as this bill progresses.  A hearing on the bill is scheduled for February 14, 2019.
  • Proposed Senate Bill 64 – This is a rehash of a bill that would limit so-called “captive audience” meetings.  The details are still in flux but the Labor & Public Employee committee voted to draft the bill on February 7, 2019.  I’ve discussed prior versions of the bill here, including the Attorney General’s concern that such a bill may not be legal.
  • Proposed Senate Bill 358 – This proposed bill would provide employees with time off to vote in elections.  The committee voted to draft the bill late last month but there’s no indication yet whether this would apply to all local elections (such as a town budget referendum) or just broad state elections.
  • Proposed Senate Bill 697 – This proposed bill, which is scheduled for a hearing on February 14, 2019 and is lacking details as of yet, would “place restrictions on workplace nondisclosure agreements to prohibit the silencing of victims in the workplace and to prevent sexual harassment by repeat offenders.”  This would seem to go further than the recent federal law which limited tax deductions for confidential sexual harassment settlements.
  • Proposed Senate Bill 700 – This bill would allow for electronic signatures by employees in the restaurant industry when distinguishing between service and non-service duties. This bill is also scheduled for a hearing on February 14th.  It would be a small but significant help to small employers who have trouble keeping up with the record-keeping requirements in this area.
  • Proposed Senate Bill 764 – This bill would prohibit on-call shift scheduling — something that has been under attack in prior sessions as well.  Specifically, the bill would “prohibit the employment practice of requiring an employee to call an employer prior to a scheduled shift to confirm that the employee is needed for the shift, and to require employers to give an employee at least twenty-four hours prior notice if the employee is not needed to work a scheduled shift.” The Labor & Public Employee committee voted to draft this proposal so watch for a full-fledged bill soon.
  • Proposed Senate Bill 765 – And then there’s this proposed bill scheduled for a hearing on February 14, 2019.  Right now, it states that the law would ensure all employees “receive fair and equal pay for equal work”.  What that means for employers is anyone’s guess right now.

This is about a busy a listing as you can reasonably expect to see from our part-time legislature.  It’s still early but that’s just the half of it.  I’ll tackle the House bills in my next post.

Today is the last day of the General Assembly session and there are only so many hours to debate and pass bills.

And so, in a year when so many labor & employment law bills were up for consideration, it’s come down to a finish line where just one or two might pass.

The Pay Equity bill I highlighted earlier this week is on to the Governor’s desk, where he has indicated he will sign it.

But the bill making broad changes to the harassment and discrimination laws in the state now appears to be on life support. Perhaps even “mostly dead”.

You will recall from my post earlier this week that the bill passed the Senate with an overwhelming majority with language that seemed to have broad support.

According to a report in CT News Junkie, a deal has yet to be reached in the House and there may be too many issues with it to come to a deal today.

At issue has been the language eliminating the statute of limitations for some sex crimes.  It’s possible that a fix that revises the training requirements could perhaps see it’s way out of the mess but that is seeming increasingly unlikely according to news reports.

There are other bills still floating out there: Paid FMLA, changes to minimum wage, etc. None of them though seems to have enough steam at this stage to get over the finish line.

So stay tuned.  There’s a budget bill that is still up for grabs and the last day always has a way of surprising.

I’ll have a full legislative recap once the dust settles.

Earlier this week, the Judiciary Committee (by a 25-16 vote) approved of Senate Bill 132, being labelled by it’s proponents as the “Time’s Up” bill but covers both harassment and discrimination cases. I covered an announcement of this a while back.  

As the bill moves closer to consideration now to the state Senate, it’s time for employers to start paying attention to what’s in the bill.  The CBIA has expressed concerns about some aspects of the bill.

Here are a few highlights:

  • To require employers to provide every employee with information concerning the “illegality of sexual harassment and remedies available to victimes of sexual harassment”.
  • To require employers of three or more employees (currently set at 50) to provide two hours of sexual harassment prevention training and with such training being provided not just to supervisory employees, but all employees.
  • To eliminate affirmative defenses that employers otherwise have that: “(i) the claim of sexual harassment was properly investigated, immediate corrective action was taken and no act of sexual harassment subsequently occurred, (ii) the claim of sexual harassment was not reported to a respondent prior to the filing of a complaint with the commission, (iii) an employer has a policy of prohibiting sexual harassment or recently trained its employees on sexual harassment in accordance with subdivision (15) of section 46a-54, as amended by this act, or (iv) the sexual harassment was not severe or pervasive.”  These defenses would only be allowed to be introduced on the question of damages.
  • To prohibit employers from modifying the “conditions of employment” of the employee making the claim of sexual harassment when the employer takes “immediate corrective action”, unless employee agrees in writing to such a modification.
  • To allow the CHRO to order the promotion of an employee in response to a claim of discrimination.
  • To allow claims of discrimination that occur on or after October 1, 2018 to be subject to a new three-year statute of limitation, instead of the current 180 day requirement.
  • To allow punitive damages for discrimination claims to be awarded in some instances.
  • To allow lawsuits to be brought two years after the CHRO releases jurisdiction over a discrimination, instead of the 90 day requirement.

There’s more as well, so employers are best advised to review it and talk with their attorneys about the impact that this bill might have on their workplace.

From a procedural perspective, the change in the statute of limitations would be significant.

Take this example: Suppose an alleged discriminatory act took place on May 15, 2019.  An employee would then have until (approximately) May 15, 2022 to bring a CHRO charge.  The CHRO could investigate the claim for a while — say a year and release jurisdiction on May 15, 2023.  The employee could then have two additional years to bring suit in Court — taking it out to May 15, 2025.  Add another 18-24 months before a trial date, at best.

Ultimately, this could result in a claim being heard nearly eight years (or more!) after the alleged discrimination took place.

Supervisors may have long since left the company and evidence might not be available anymore for employers to defend themselves.  All told, these types of delays were exactly the type of issue that a shorter statute of limitations was designed to prevent.  Companies would be at a significant disadvantage in defending themselves, all the while damages continue to accrue.

This bill would also require the CHRO to renegotiate significantly large portions of the worksharing agreement in place with the EEOC.

There is certainly momentum for some type of action here; stay tuned to see what further modifications are made to this bill.

There’s been a lot in the news of late about “outrageous” provisions found in an separation agreement between an employer and an employee, like confidentiality.  Indeed, some proposed legislation would restrict the use of some provisions.  

So I thought it would be helpful to go over what we typically see in a separation agreement.

First a big caveat: My description of a “typical” agreement does not mean that these provisions are in every agreement or even that these provisions ought to be in some agreements. Each separation or settlement has differing facts that may make certain provisions more important than others. And some employers or employees negotiate differently.

In other words, there is not a one-size-fits-all to this and employers should definitely not attempt to do this without legal guidance.

One more caveat, back in 2009, I provided a link to a great checklist that existed at the time about key provisions to have in a separation agreement. Nearly 10 years later, it still holds up pretty well.  You could do a lot worse than rely on that.

So what are typical provisions?

  1.  Last Day of Employment
  2. Benefits Upon Separation of Employment
  3. A Release of all possible claims related to employment (maybe even broader) with lots of legalese
  4. Confidentiality of Agreement
  5. Nondisparagement of one or more of the parties
  6. No Admission of Liability
  7. No Obligation by Employer to Re-Hire
  8. Return of Property
  9. Affirmation of Any Prior Restrictive Covenants (such as Non-Compete periods)
  10. References or Removal of Negative Information from Personnel File
  11. Many more technical provisions regarding what the governing law is, indemnification in case of breach, incorporation provisions making sure this agreement supersedes prior agreements, and, OWBPA-compliant provisions if necessary.

So, before you read headlines or “expert” commentary expressing shock that a separation agreement contains a confidentiality provision, understand that typically these are sought by both an employer and employee.  There may be good reasons that both have for wanting to keep the reasons for the separation and any separation agreement private.

The 2018 session of the General Assembly started last week and increasing workplace training is a top priority for passage.

Indeed, it is not surprising that we’re starting to see the first proposed legislation to address the number of harassment claims that have been making headlines the last six months.

Governor’s Bill 5043 sets up the following changes:

  • First, it would increase the number of employers that need to provide anti-harassment training — resetting the number of employees needed to fall under the statute from 50 to 15.
  • Second, the bill would also require all employees (not just supervisors and managers) to undergo two hours of what it calls “awareness and anti-harassment compliance training” and have that training updated every five years.
  • The training that now is just focused on sexual harassment prevention in the workplace, but would also be expanded to include all types of harassment—including that based on race, color, religious creed, age, sex, gender identity or expression, marital status, and national origin.
  • The training would also be required to include information about the employer’s policy against harassment, examples of the types of conduct that constitute and do not constitute harassment, strategies to prevent harassment, bystander intervention training and a discussion of “workplace civility” that shall include what is acceptable and expected behavior in the workplace.
  • The bill would require employers of three or more employees to continue to post information regarding all types of harassment and, on an annual basis, to “directly communicate such information and remedies to employees on an annual basis”.

My best guess is that this item of legislation will go through some additional tweaks to satisfy various constituencies, particularly because of the increased costs involved.

For example, expanding the training to all employees would create a massive new industry for training and, as the CBIA has said, a costly mandate as well.

There is more legislation coming down the pike in the employment law area.  This is just one of the items being floated so stay tuned.

GA2Yesterday, the Connecticut House of Representatives voted to pass legislation that would promote pay equity among men and women. However, the bill lacks a key provision that would have barred prospective employers from inquiring into an applicant’s salary history.

The CT Mirror and Hartford Business Journal do a good job reporting on the developments. The bill would:

  • “Ban employers from using a worker’s previously earned wages as a defense against a charge of pay inequity;
  • Protect employees from losing seniority based on time spent on maternity or other family or medical leave;
  • Strengthen the requirement that employers provide “comparable” pay for workers performing similar duties;
  • Clarify the state Commission on Human Rights and Opportunities’ ability to investigate complaints of discrimination when wages are involved.”

The Senate remains split along party lines, but the changes made to the bill make passage much more likely now.

The bill, House Bill 5591, can be downloaded here.

It’s unclear how much of an impact the bill will have. For example, the bill changes Conn. Gen. Stat. 31-75 that bars discrimination for work performed under “comparable” working conditions. Previously, the standard was “similar”.

But even the Office of Legislative Research was skeptical about this change noting “It is unclear whether this change has any legal effect.” After all, one definition of comparable is “(of a person or thing) able to be likened to another; similar”.

Moreover, many employers do not base pay on a “seniority system” but instead focus on merit instead. Thus, any changes to the statute on the “seniority system” will have minimal impact.

In any event, before employers act, it’s wise to wait to see what happens in the Senate. Any changes to the law would be effective October 1, 2017.  

 

 

trumpphotoThere haven’t been a lot of stories about what Donald Trump would do as President when it comes to employment law issues. In part, that was due to the polls. But it was also due in part to the lack of policy details that his campaign put out on his website.  Back in September, I lamented the fact that we weren’t getting to hear any debate on those issues.

So, the news this morning that Donald Trump has been elected President is coming with a bit of scrambling.  What does it mean for employers in Connecticut? What’s going to happen with employment laws and enforcement?

The truth is that we really don’t know at this point.  The fact that the House, Senate and President will all be led by Republicans is something that is going to throw the whole system for a loop.

So, here are a few things to keep an eye on over the upcoming months when it comes to employment law issues:

  • As I noted last month, the new overtime regulations are set to be implemented on December 1, 2016.  Will a lame-duck Congress try to block those rules from being implemented? And if they are still implemented, will a Trump adminstration seek to roll those back? That would be a challenge.  Suffice to say for employers, this added uncertainty is a real headache. Until you hear otherwise, employers should continue to implement these changes.
  • One thing that seems clearer: The NLRB’s moves over the last few years will come to a screeching halt once the Board’s makeup is changed. The NLRB, for better or worse, always seems to change with each Presidency.  A Trump Presidency will no doubt bring changes back; this may impact everything from graduate assistants being able to unionize, the quickie election rules. Everything is in play.
  • For those wondering, the Board has two seats open now; along with the existing Republican member, that would give the Trump presidency a pretty quick majority.
  • The EEOC’s strategic plans will now be called into question as well. In recent years, it has taken aggressive litigation approaches on sexual orientation and gender identity issues. Will those tactics be abandoned? Where will the enforcement priorities lead to? Again, don’t expect big changes overnight but over time, this is definitely something to watch.
  • And do not underestimate the impact that a Trump Presidency will have on the federal court system.  He will now be appointing far different judges that we’ve seen over the last eight years — both at the U.S. Supreme Court and at lower court levels.  This will have a long-term effect on employment discrimination cases which are often heard in the federal courts in Connecticut.  As a result, we may continue to see more cases being brought in Connecticut state courts.
  • Let’s not forget that Trump also suggested a six-week paid maternity leave program.  Will we see Congress pick this issue up? Stay tuned too.  

For Connecticut employers, lost in the headlines of a Trump presidency is the fact that Republicans seem to have gained an unprecedented 18-18 split in the State Senate. This could potentially put the brakes on legislation the next two years on issues like non-competes or expanded paid leave.  It’s too early to tell but this is something we’ll be looking into as well.

But for all the uncertainty out there, remember this: Many of our federal laws are unlikely to change.  ADA, FMLA, Title VII are all fairly hearty laws that share widespread support.  The changes that may come are all things around the edges — things like enforcement approaches, guidances, etc.

For employers, it’s best to keep a close eye on the developments for employment law. It’s going to be an interesting couple of years.

generalassemblyPayroll cards are finally here.

The General Assembly finished their regular session last night with several employment law bills getting passed, including some that have been kicking around for years.

One of them is Senate Bill 211, which authorizes employers to use payroll cards — instead of checks or direct deposit — to pay their employees.

But there are a number of conditions that must be met before this happens and there are a number of restrictions as well.  The bill will become effective October 1, 2016 — assuming the governor signs the measure, which is expected.

The Office of Legislative Research has done a thorough recap, which I’ll liberally borrow from here.

In order to use the card, an employee must “voluntarily and expressly authorize, in writing or electronically, that he or she wishes to be paid with a card without any intimidation, coercion, or fear of discharge or reprisal from the employer. No employer can require payment through a card as a condition of employment or for receiving any benefits or other type of remuneration.”

In addition, as noted by the OLR report:

  1. employers must give employees the option to be paid by check or through direct deposit,
  2. the card must be associated with an ATM network that ensures the availability of a substantial number of in-network ATMs in the state,
  3. employees must be able to make at least three free withdrawals per pay period, and
  4. none of the employer’s costs for using payroll cards can be passed on to employees.

Under the bill, a “payroll card” is a stored value card (similar to a bank account debit card) or other device, but not a gift certificate, that allows an employee to access wages from a payroll card account. The employee can choose to redeem it at multiple unaffiliated merchants or service providers, bank branches, or ATMs. A “payroll card account” is a bank or credit union account (1) established through an employer to transfer an employee’s wages, salary, or other compensation (pay); (2) accessed through a payroll card; and (3) subject to federal consumer protection regulations on electronic fund transfers.

Another big change, according to the OLR report: The bill also allows employers, regardless of how they pay their employees, to provide them with an electronic record of their hours worked, gross earnings, deductions, and net earnings (i.e., pay stub). To do so, the (1) employee must explicitly consent; (2) employer must provide a way for the employee to access and print the record securely, privately, and conveniently; and (3) employer must incorporate reasonable safeguards to protect the confidentiality of the employee’s personal information.

Lastly, current law allows employers to pay employees through direct deposit only on an employee’s written request. The bill allows an employee’s request for direct deposit to also be an electronic request.

An amendment, which also passed, (1) changes the timeframe in which an employer must switch an employee from a payroll card to direct deposit or check; (2) specifies that the limit on fees or interest charged for the first two declined transactions each month applies to calendar months; and (3) requires the cards to be associated with ATM networks that ensure, rather than assure, the availability of in-network ATMs in the state.

Overall, this is a big boost for both employers and employees.  The CBIA had supported the measure and it had received “cautious” support from the AFL-CIO as well.

cgaOver the next week or so, I’ll be providing updates on various bills to pass (or fail) at the state general assembly.  They’re coming in fast and furious so patience is the order of the day.

But as we review various bills, there are employment-related aspects in places that you might not think. The first of these is in a human trafficking bill (House Bill 5621).  After passage in the House last month, this bill passed the state Senate last night. It now moves to the Governor’s office for his signature.

Section 5 of the bill sets forth new requirements for hotel (and similar lodging) operators to train and educate their employees.

Specifically, it requires that the employees receive training at the time of hire on the “(1) recognition of potential victims of human trafficking, and (2) activities commonly associated with human trafficking.”

But in addition to training, the hotel operator shall also conduct “ongoing awareness campaigns” for employees on the “activities commonly associated with human trafficking.”

Of course, the legislation is silent as to what exactly are the “activities commonly associated with human trafficking”, though prostitution is obviously mentioned in one aspect of the legislation.  It is unclear how detailed this training and the awareness campaign must be.

Beyond that, on or before October 1, 2017, and annually thereafter, hotel operators must “certify that each employee of any such establishment has received the training prescribed by this section in each employee’s personnel file.”

But again, it does not appear that this training needs to occur yearly — only at the time of hire — and only that the hotel operator certify that the training happened at the time of hire.  So the bill has a gap; current employees do not appear to need to be trained in this. And the employer must only conduct “awareness campaigns” which perhaps can be as simple as an email reminder or inclusion in employee handbooks.

In any event, hotel operators should consider updating their hiring packages to include this aspect and should update their employee handbooks to have a provision in there.

Upon signature from the Governor (which is expected), this provision becomes effective October 1, 2016.

Lastly, I would be remiss if I did not mention the efforts of both the Connecticut Bar and the American Bar Associations on raising awareness and seeking legislation on this important issue.   Members of the CBA testified at the legislature on this bill and its passage last night was an end product of their efforts.

dcvisitLast week, as part of my work with the American Bar Association, I had the opportunity to meet with all of Connecticut’s Representatives and Senators in Washington, D.C.  Most were available in person, while I met with senior staff in a few offices.

It was a truly rewarding experience. We talked about helping to ensure that legal services funding for the poor remains available and some other items that the ABA has been pushing on a national level both for lawyers and the general public.  You can learn more about #ABADay here.

Perhaps this sounds a bit corny, but I was struck by how earnest everyone was.  In the private meetings, each indicated a strong desire to get things accomplished and asked for help in doing so.  We talked about ways that bar leaders can work with their offices to push bi-partisan legal issues.

Those visits stand in stark contrast to the prevailing wisdom that nothing is happening in Washington or that the legislators are merely interested in their next term in office.  In talking with my ABA colleagues who made similar visits to other Congressional offices, most (but unfortunately not all) felt the same way.

congressOf course, all those positive feelings can’t overcome a simple fact: Congress is getting nothing done when it comes to employment laws.  Just think about how Congress and President Bush were able to come to terms on amendments to the Americans with Disabilities Act and you realize how paralyzed things have become.

Now, members of Congress hold hearings on things like the one today the changes to DOL’s proposed Persuader Rule, rather than working to pass a bill that might address some of those issues.

The Connecticut delegation isn’t immune to this either. Indeed, some of their proposals stand no likelihood of passage right now as well. Rep. Delauro has proposed the Paycheck Fairness Act which has 193 co-sponsors, but no real support among the Republican leadership.  She has also proposed the Healthy Families Act as well, though that bill has 140 co-sponsors.  Joe Courtney has sponsored a bill that would amend OSHA by expanding the law’s coverage.

But after my visit to D.C., I left knowing that there are still many people in D.C. who work on bills that receive no publicity but that can have an impact on Americans every day.

If you have the opportunity, I highly recommend visiting your representative or senator in D.C.  The offices are very accessible to the public and I have no doubt that they do listen to constituents who visit the offices personally.

My thanks to their offices for listening.