Even if your HR department is on top of things, some of the policies in your employee handbook probably are now unlawful. Confidentiality policies, professionalism policies, employee conduct policies, solicitation policies, conflict of interest policies, social media policies, and others have come under intense scrutiny by the National Labor Relations Board (“NLRB”) in the last six months. The result could be an unfair labor practices claim filed against your company, even though your company is not unionized. Continue reading NLRB Crackdown on Employee Handbooks
The National Labor Relations Board ruled last week that two unrelated companies may be held to be joint employers of an employee who works for just one of the companies. Browning-Ferris Industries of California, 362 NLRB No. 186 (August 27, 2015), ruled that unrelated companies may be joint employers even if one employer has no power to hire, fire, supervise or determine the pay of an employee of the other employer.
The NLRB says that it “will no longer require that a joint employer not only possess the authority to control employees’ terms and conditions of employment, but also exercise that authority”.
In other words, if you as a business owner contractually could say anything to your subcontractor about the work you want performed by the subcontractor’s employees, then you can be jointly liable to those employees if any of the subcontractor’s employment practices go awry, even if you never actually exercise any control over your subcontractor’s employees. Continue reading Employers Face “Joint Employer” Liability with Unrelated Companies
There are companies that want to sell you expensive workplace posters that you don’t need to purchase because they are available for free online. Many employers are afraid that they don’t know which employment notices must be visible in the workplace, so they fall for the marketing pitch to pay for these expensive commercial posters.
As a Texas employer, have you received advertising in the mail similar to the notice pictured here? Such notices appear official, and can feel almost threatening, with warnings of penalties and fines associated with an employer failing to post current state and federal employment posters in the workplace.
It is not necessary for a Texas employer to pay $84 for the poster offered here. While it is true that posting certain notices and information is legally required, employers need not pay any company for this information. Free copies of the required posters can be found from the websites of each of the federal or Texas agencies that require them. The Texas Workforce Commission has graciously gathered a list of these posters into one place for you here.
Not only are you out the money if you buy one of these expensive posters, but these for-profit posters could actually hurt you if they promise rights to your employees that the law does not give them (such as promising Family and Medical Leave rights if the company has less than 50 employees and isn’t required to provide Family and Medical Leave). You don’t want to obligate yourself to things the law doesn’t require you to provide. The poster “invoice” pictured here didn’t ask the size of the employer’s workforce and apparently was not tailored to the laws to which a particular employer was subject.
As of August 2015, the posters that you as a Texas employer must have on your bulletin board, depending on the size of your workforce, are as follows: Continue reading Workplace Posters For Free Online
The practice of many employers of using “contract labor” instead of employees to perform some jobs just got riskier as the Department of Labor (“DOL”) issued new guidance on who is an independent contractor. (Click here to read the DOL’s lengthy guidance).
The DOL concluded in an Administrator’s Interpretation issued July 15 that “most workers are employees under the Fair Labor Standards Act’s broad definitions”.
If most workers are employees, that means it is a high bar for any company to jump to prove that a person performing any work for the company is actually an independent contractor who will pay his own payroll taxes and will forego overtime, worker’s compensation, family and medical leave, health insurance under the Affordable Care Act and the other perks of being an employee. Continue reading DOL Cracks Down on Using Contract Labor
Attorney Vicki Wilmarth provided Texas employers with advice about addressing employee tattoos in Amarillo Magazine’s latest cover story, “Invisible Ink.” Click here to read the very informative article and for more information about your company dress code regarding facial piercings and body art.
Claiming that your employees are exempt from overtime is about to become much more difficult with release of new regulations this week by the U.S. Department of Labor (“DOL”) under the Fair Labor Standards Act (“FLSA”).
On June 29, 2015, President Obama announced that the DOL is issuing proposed rules that will probably go into effect in early 2016. Those proposed rules redefine which employees have to earn overtime on their hourly pay instead of being paid as an exempt salaried employee.
The result could be skyrocketing overtime costs and more frequent wage and hour suits against companies that fail to make this transition carefully.
The advantage for an employer of an FLSA exemption has always been that the employer doesn’t have to track that employee’s hours and doesn’t have to pay overtime wages of 1.5 times the hourly rate for anything over 40 hours worked in one workweek. That advantage will no longer be available to you as an employer in 2016 for those employees you pay less than $970 per week, which adds up to $50,440 per year. Continue reading Salary Basis for FLSA Exemptions Raised Dramatically
Today’s U.S. Supreme Court decision that legalized same-sex marriage in all 50 states has Texas employers scrambling for a correct response. Businesses need to consider employee benefits, leaves of absence and many other Texas workplace policies to address the change in the definition of spouse.
Unlike some changes in the law, this one will not wait for Texas employers to catch up. Travis County had already issued 54 licenses to same sex couples by noon today. The Austin American-Statesman reported that clerks in Dallas, Bexar, Tarrant, Midland, McLennan and El Paso counties also began issuing licenses to same-sex couples and judges have already started marrying same-sex couples today in Texas.
Here are some of the employment law considerations that businesses need to address immediately: Continue reading How Texas Employers Should Respond to Marriage Decision
The United States Supreme Court confirmed today that the Affordable Care Act (“ACA”) is the law and is here to stay. In deciding King v. Burwell, the Court for the second time upheld the health care law that was passed by Congress in 2010.
What does King v. Burwell mean for employers? Not much. As an employer, you just have to keep soldiering on to make the ACA work in your business, just as you have been doing for the last several years.
Of course, how big an issue the ACA is to you as an employer depends on the size of your workplace. To apply the ACA, you as the employer have to count your employees and determine how many “full-time equivalents” that you employ. Under the ACA, a full-time employee is one who is employed an average of at least 30 hours per week.
The Affordable Care Act’s mandate, requiring employers to provide health insurance to employees or face a penalty, does not apply to employers with less than the equivalent of 50 full-time employees. This is the small business exemption to the mandate and means that small businesses can choose whether to provide health insurance at all.
If you have between 50 and 99 full-time equivalent employees, you have been getting ready for the Affordable Care Act this year, since 2016 is the year that you are required to provide your full-time employees with affordable health insurance coverage or pay a potentially substantial penalty. You are probably still working out the kinks in your system of counting hours, determining who is full-time, setting measurement periods. Next year you will be getting employees signed up and answering endless questions from your employees about their coverage.
If you have 100 or more full-time equivalent employees, then 2015 is the first year you have been required to provide health insurance to your employees or pay a penalty. The penalty is imposed if at least one of your full-time employees receives a subsidy to purchase coverage in the individual Marketplace. So the subsidies that the Supreme Court upheld in King v. Burwell today will determine if you as an employer get penalized.
But at least you have a little margin for error this year if you employ 100 or more people. In 2015, you only have to offer coverage to at least 70 percent of full-time employees, rather than 95 percent which will begin in 2016.
There are other changes on the horizon for you as an employer in dealing with the ACA. Continue reading Affordable Care Act is the Law
As an employer, your work to prevent an employment discrimination lawsuit starts from the beginning: in the way you advertise the job opening. According to the Equal Employment Opportunity Commission (EEOC), the number of charges filed by employees and applicants alleging discriminatory advertising rose from 49 in 2013 to 121 in 2014. The vast majority of the claims filed in 2014 (111) were for advertisement discrimination against older job applicants, but may also involve gender discrimination, disability discrimination or other discriminatory conduct.
Recently, the popular restaurant chain Ruby Tuesday settled a claim with the EEOC for $100,000. Two male employees sued the restaurant after an internal job posting was advertised specifying “only females would be considered” for temporary summer positions in a Utah resort town. Because the summer resort employees would be residing together for several weeks in company-housing, the restaurant reasoned that it would be best if all employees were of the same gender.
While violations such as a gender-specific job announcement may seem obvious in hindsight, there are many subtle ways discrimination is included in employers’ advertising. Have you ever seen an ad in the paper seeking “recent college graduates”? You might consider this to mean that a college degree is required for the job. But the EEOC could look at this as way of screening out older applicants in violation of the Age Discrimination in Employment Act (ADEA). The ADEA and its Texas equivalent statute make it illegal for employers (with 15 or more employees) to discriminate against workers age 40 and over.
To avoid problems such as the one Ruby Tuesday faced, carefully consider the wording of your advertising, most specifically, your job postings. Continue reading Advertising Job Openings Without Discriminating
A Lubbock auto dealer was accused of disability discrimination and recently settled the claim for $250,000. The Equal Employment Opportunity Commission (“EEOC”) sued Benny Boyd Chevrolet-Chrysler-Dodge-Jeep, Ltd., d/b/a Benny Boyd Lubbock, and Boyd-Lamesa Management, L.C., for discriminating against the dealership manager with multiple sclerosis. Click here for more information.
The manager was hired before his diagnosis with promises of future ownership in the dealership. He managed the dealership successfully for six months before he revealed his disability, according to the EEOC. He was then faced with comments like, “What’s wrong with you? Are you a cripple?” He was also denied the partnership and quit, claiming he was forced to resign.
I am always concerned when my Texas Panhandle business clients don’t believe that employment lawsuits like this can happen to them. I’m sure this Lubbock dealer felt the same way. But there were there were approximately 10,000 charges of discrimination filed in Texas with the EEOC and the Civil Rights division of the Texas Workforce Commission during fiscal year 2014. Around 27% of those charges claimed disability discrimination. It can and does happen to employers here, and some of the cases, like the one in Lubbock, can be very costly.
What can you do to prevent or at least prevail in such suits? Continue reading Lubbock Business Settles Disability Discrimination Claim