Category Archives: EPL

REMINDER – Illinois Business Expense Reimbursement Requirement Begins January 1st

Attention Illinois employers, starting January 1, 2019, all Illinois employers will be required to reimburse employees for “all necessary expenses that are incurred by the employee with the employee’s scope of employment and that are directly related to services performed for the employer.”  We previously reported on this new law in “NEW LAW – Illinois To Require Business Expense Reimbursement.”

In preparing for this new law, it is recommended that employers take note of the wide array of “business-related expenses” that an employee can incur, like

  • Mileage for work-related travel
  • Personal cell phone use for work purposes (including checking work emails)
  • Work-related expenses for remote employees (eg internet access, office supplies)
  • Costs associated with work-related travel (mileage, but also hotels, meals, air fare, parking, etc)

It is recommended that all Illinois employers develop a written business expense reimbursement policy that sets forth the steps an employee must follow to have their business expenses reimbursed.  Remember, employees are not entitled to reimbursement if they fail to follow an established, written expense reimbursement policy.

NEW LAW – Illinois Health Care Violence Prevention Act Takes Effect January 1st

Attention Illinois Healthcare employers.  Are you ready for the Health Care Violence Prevention Act?

On January 1, 2019, the Health Care Violence Prevention Act takes effect.  Under this new law, “retail health facilities”*, hospitals and veterans homes are required to:

  • Create a workplace violence plan that contains the following elements –
    • Complies with the OSHA guidelines for workplace violence
    • Classifications of workplace violence.
      • Type 1 violence: Workplace violence committed by a person who has no legitimate business at the work site and includes violent acts by anyone who enters the workplace with the intent to commit a crime.
      • Type 2 violence: Workplace violence directed at employees by customers, clients, patients, students, inmates, visitors, or other individuals accompanying a patient.
      • Type 3 violence: Workplace violence against an employee by a present or former employee, supervisor, or manager.
      • Type 4 violence: Workplace violence committed in the workplace by someone who does not work there, but has or is known to have had a personal relationship with an employee.
    • Management commitment and worker participation in the program. Worker participation should include nurses as well as additional staff.
    • Worksite analysis and identification of potential hazards.
    • Hazard prevention and control.
    • Safety and health training with required hours to be determined by rule.
    • Recordkeeping and evaluation of the violence prevention program.

In addition to the training requirements, employees are required to report to management any time they contact law enforcement or file a police report with law enforcement relating to a workplace violence issue.  This report must be made within 3 days of the contact with law enforcement.  Upon receiving notice, employers are required “post incident” services to any healthcare worker involved in the incident, which must include acute treatment and access to psychological evaluation.  Employers are prohibited from discouraging their employees from contacting law enforcement about a workplace violence issue.

It is recommended that all Illinois healthcare employers review the new law and ensure that they are compliant by January 1st.

*  Retail health facilities are defined as an institution, place, or building that is devoted to the maintenance and operation of a facility for the performance of health care services and is located within a retail store at a specific location, but excluding hospitals, ambulatory treatment centers, physicians’ offices and other facilities providing “limited healthcare services”), hospitals and veterans homes.

NEW LAW – New York City To Require Lactation Rooms

Attention New York City employers, under a new law (Int. 879-A and Int. 905-A), which takes effect on March 18, 2019, employers with 4 or more employees will be required to provide “lactation rooms” for breastfeeding employees to express milk in the workplace.  In addition, employers must develop a written policy relating to lactation accommodation that must be provided to all employees and all new employees upon hire.

The City Commission on Human Rights will be developing a model policy that employers can use.

NEW LAW – St. Paul To Increase Minimum Wage to $15 Per Hour

Attention St. Paul employers, on November 14, 2018, Mayor Melvin Carter signed Ordinance 18-54 into law that will increase minimum wage to $15 per hour by between 2022 and 2027.

Under the new law, minimum wage in St. Paul will increase in accordance with the following schedule:

Employer Size Year Scheduled Increase
10,001+ employees January 1, 2020 $12.50
July 1, 2022 $15.00
101 to 10,000 employees July 1, 2020 $11.50
July 1, 2021 $12.50
July 1, 2022 $13.50
July 1, 2023 $15.00
6 to 100 July 1, 2020 $10.00
July 1, 2021 $11.00
July 1, 2022 $12.00
July 1, 2023 $13.00
July 1, 2024 $14.00
July 1, 2025 $15.00
5 or fewer July 1, 2020 $9.25
July 1, 2021 $10.00
July 1, 2022 $10.75
July 1, 2023 $11.50
July 1, 2024 $12.25
July 1, 2025 $13.25
July 1, 2026 $14.25
July 1, 2027 $15.00

 

NEW LAW: Starting January 1st Illinois Service Member Employment and Reemployment Rights Act to Protect Illinois’ Military Service Members

Earlier this year, Illinois governor Bruce Rauner signed the Illinois Service Member Employment and Reemployment Rights Act (ISERRA) (Public Act 100-1101) into law. This law, which goes into effect on January 1, 2019, streamlines and expands the various job-related protections afforded to Illinois service members.

Most importantly, the ISERRA repeals the following statutes:

  • Military Leave of Absence Act,
  • Public Employee Armed Services Rights Act,
  • Municipal Employees Military Active Duty Act, and
  • Local Government Employees Benefits Continuation Act

And consolidates the protections afforded under these statutes into the new law.  The only law not consolidated into the ISERRA, the Illinois Family Military Leave Act, which family members of a service member with protected leave under certain circumstances*, remains intact. Continue reading NEW LAW: Starting January 1st Illinois Service Member Employment and Reemployment Rights Act to Protect Illinois’ Military Service Members

NEW LAW: Michigan Legalizes Recreational Marijuana

On November 6, 2018, voters in Michigan passed Proposal 18-1 (the “Michigan Regulation and Taxation of Marihuana Act,” which legalized the recreational use* of marijuana for individuals 21 and over.  With the passage of this new law, which goes into effect 10 days after election results are officially certified, there are now 10 states** (and Washington DC) that have legalized recreational marijuana.

While the new law certainly brings new concerns into the Michigan workplace, as employers will undoubtedly be concerned about how to respond to an employee’s use of marijuana outside of work, the new law contains several provisions that are helpful to employers. Continue reading NEW LAW: Michigan Legalizes Recreational Marijuana

NEW LAW: Missouri Legalizes Medicinal Marijuana

On November 6, 2018, voters in Missouri passed Amendment 2 (the Medical Marijuana and Veteran Healthcare Services Initiative) which legalized the use of marijuana for medicinal purposes in Missouri.  With the passage of this new law, Missouri becomes the 33rd state to legalize medicinal marijuana.

Under the new law, individuals with qualifying conditions* will be able to obtain permission from their physician to legally use marijuana for medicinal purposes.  However, while medicinal marijuana use will be legal, the law is clear that employers will still be able to enforce their drug-free workplace policies prohibiting employees from working under the influence of marijuana and will be able to discipline employees for violating that policy. Continue reading NEW LAW: Missouri Legalizes Medicinal Marijuana

2019 Minimum Wage Check-Up

With various cities and counties having enacted local minimum wages and 19 states (Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Maine, Massachusetts, Minnesota, Missouri, Montana, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, and Washington) increasing their own minimum wages on January 1st (December 31st for New York), employers should take time to verify that they are meeting the minimum wage requirements of their state/city/county and prepare for any increases.

The below chart sets forth the minimum wage effective January 1, 2019.

Federal Minimum Wage $7.25

 

State City/County Amount?
Alabama $7.25
Alaska* $9.89
Arizona * all cities/counties except … $11.00
          Flagstaff* $12.00
Arkansas* $9.25
California* — all cities/counties except …                                 small employer (25 or less) $11.00

large employer (26 or more)

$12.00
          Belmont* $13.50
          Berkeley $15.00
          Cupertino* $15.00
          El Cerrito* $15.00
          Emeryville                                                                                                  small employer (55 or less) $15.00

large employer (56 or more)

$15.69
          Los Altos* $15.00
          Los Angeles                                                                                               small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Malibu                                                                                                         small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Milpitas $13.50
          Mountain View* $15.65
          Oakland* $13.80
          Palo Alto* $15.00
          Pasadena                                                                                                  small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Redwood City* $13.50
          Richmond*                                                employer PAYS $1.50/hr towards medical benefits $13.50

employer DOESN’T pay $1.50/hr towards medical benefits

$15.00
          San Diego* $12.00
          San Francisco $15.00
          San Jose* $15.00
          San Leandro $13.00
          San Mateo*                                                                                                 For-profit organizations $15.00

Non-profit organizations

$13.50
          Sacramento                                                                                          small employer (25 or less) $11.00

large employer (26 or more)

$12.00
          Santa Clara* $15.00
          Santa Monica                                                                                          small employer (25 or less) $12.00

large employer (26 or more)

$13.25

All hotels

$16.10
          Sunnyvale* $15.65
          Los Angeles County                                                                             small employer (25 or less)

          unincorporated areas                                                                        large employer (26 or more)

$12.00
$13.25
Colorado* $11.10
Connecticut $10.10
Delaware $8.75
Florida* $8.46
Georgia $7.25
Hawaii $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
          Chicago $12.00
          Cook County

          (except for municipalities who have opted out)

$11.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine*  $11.00
Maryland — all cities/counties except … $10.10
          Montgomery County*                                                                           small employer (9 or less)

                                                                                   medium employer (10-50)

                                                                               large employer (51 or more)

$12.00

$12.00

$12.25

          Prince George’s County $11.50
Massachusetts* $12.00
Michigan $9.25
Minnesota*all cities except                      “small employers” (annual sales volume of less                                                                                                                                                        than $500,000)

“large employers” (annual sales volume of $500,000+)

$8.04
$9.86
          Minneapolis $11.25
Mississippi $7.25
Missouri* $8.60
Montana* $8.50
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.85
New Mexico — all cities/counties except … $7.50
          Albuquerque*                                                                                         employer provides benefits $8.20

employer does NOT provide benefits

$9.20
          Las Cruces* $10.10
          Santa Fe $11.40
          Bernalillo County*                                                                              employer provides benefits $8.05
          unincorporated areas                                                      employer does NOT provide benefits $9.05
          Santa Fe County (unincorporated areas) $11.40
New York**  “Upstate” employers (excluding fast food employees) $11.10
“Downstate” employers (excluding fast food employees) $12.00
“Small” NYC employers (excluding fast food employees $13.50
“Large” NYC employers (excluding fast food employees) $15.00
Fast food employees outside NYC $12.75
Fast food employees inside NYC $15.00
North Carolina $7.25
North Dakota $7.25
Ohio* $8.55
Oklahoma $7.25
Oregon — all cities/counties except … $10.75
          Portland $12.00
          Nonurban Counties

          (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klmath, Lake,           Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)

$10.50
Pennsylvania $7.25
Rhode Island* $10.50
South Carolina $7.25
South Dakota* $9.10
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.78
Virginia $7.25
Washington* all cities/counties except … $12.00
          City of SeaTac*                                                            hospitality and transportation workers $16.09
          Seattle* $15.00

small employer who does not pay towards medical benefits (500 or less)

small employer who does pay towards medical benefits (500 or less)

$12.00

large employer (501 or more)

$16.00
          Tacoma* $12.35
Washington DC $13.25
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
* = increase in minimum wage effective January 1, 2019

** = increase in minimum wage effective December 31, 2018

 Caveat: Please be advised that this information  is being provided as a courtesy and that ePlace Solutions, Inc. does not track local laws and ordinances and will not update this information with changes in local laws and ordinances.

 

 

Is The Minimum Required Salary For Exempt Employees Increasing In Your State In 2019?

While the FLSA minimum salary requirements for “white collar” employees (executive, administrative, or professional employees) is not changing in 2019 (at least not until/unless the Department of Labor announces a new Overtime Rule), there are several states where the minimum salary requirements for exempt employees is increasing in 2019 (December 31, 2018 for New York employers).

These increases (i.e. in Alaska, California, Colorado, Maine, New York, and Oregon) are occurring because the minimum exempt salary rates for these employees (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), the minimum salary requirements for white collar employees is as follows:

Payment Schedule Minimum Salary
Weekly $455
Bi-Weekly $910
Semi-Monthly $985.83
Monthly $1,971.66
Annual $23,660

The below table sets forth the changes to the minimum salary requirements for exempt employees in these states.  In those instances where the state minimum salary requirements are lower than the above-listed FLSA requirements, the higher salary threshold applies for employers who are subject to FLSA in order for employees to qualify for an exemption under the FLSA.

Alaska
Applicable Law: An individual employed in a bona fide executive, administrative, or professional capacity shall be compensated on a salary or fee basis at a rate of not less than two times the state minimum wage for the first 40 hours of employment each week, exclusive of board or lodging that is furnished by the individual’s employer. Alaska Stat. § 23.10.055(b).

 Since Alaska’s minimum wage is increasing to $9.89 per hour starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $787.20 $791.20
Bi-Weekly $1,574.40 $1,582.40
Semi-Monthly $1,705.60 $1,714.27
Monthly $3,411.20 $3,428.53
Annual $40,768 $41,142.40
California
Applicable Law: Overtime-exempt executive, administrative and professional employees must earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment. IWC Wage Orders.

 Since California’s minimum wage is increasing to $11.00 per hour (for employers with 25 or less employees) and $12.00 per hour (for employers with 26 or more employees) starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Small Employers (25 or less employees)
Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $840 $880
Bi-Weekly $1,680 $1,760
Semi-Monthly $1,820 $1,906.67
Monthly $3,640 $3, 813.34
Annual $43,680 $45,760
Large Employers (26 or more employees)
Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $880 $960
Bi-Weekly $1,760 $1,920
Semi-Monthly $1,906.67 $2,080
Monthly $3,813.34 $4,160
Annual $45,760 $49,920
Colorado**
Applicable Law: Exempt executive/supervisory employees must be a salaried employee earning in excess of the equivalent of the minimum wage for all hours the employee worked in a workweek. Colorado Minimum Wage Order.

Note: The administrative and professional exemptions only require that an employee be a “salaried individual” and does not provide a minimum salary requirement.

 Since Colorado’s minimum wage is increasing to $11.10 per hour starting January 1, 2019, the minimum salary for exempt executive/supervisory employees is increasing as follows:

Payment Schedule 2018 Minimum Salary* 2019 Minimum Salary*
Weekly $408 $444
Bi-Weekly $816 $888
Semi-Monthly $884 $962
Monthly $1,768 $1,924
Annual $21,216 $23,088
* These numbers are based on the employee working 40 hours per week.  If the employee works more than 40 hours per week, the required pay will be greater.
** In order for an executive employee to meet the minimum salary requirement under the FLSA, the employee will need to be paid the FLSA minimum salary.  However, once that employee works over 41 hours in a week, the state minimum wage salary requirement will apply.
Maine
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is 3,000 times the Maine minimum hourly wage or the minimum salary required by the federal Fair Labor Standards Act, whichever is higher. 26 M.R.S 663(3)(K).

 Currently, the state threshold is higher than the FLSA threshold; therefore, the state threshold applies.

Since Maine’s minimum wage is increasing to $11.00 per hour starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $576.92 $634.61
Bi-Weekly $1,153.84 $1, 269.23
Semi-Monthly $1,250 $1,375
Monthly $2,500 $2,750
Annual $30,000 $33,000
New York – INCREASES 12/31/2018
Applicable Law: Exempt executive and administrative employees must be paid at least the minimum salary set forth in the applicable New York Wage Orders.

 Note: There is no salary basis test for professional employees under New York law.

Under the amendments to the New York Wage Orders, the minimum salary for exempt executive and administrative employees is increasing on December 31, 2018 as follows:

New York City (11 or More Employees)
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $975 $1,125
Bi-Weekly $1,950 $2,250
Semi-Monthly $2,112.50 $2,437.50
Monthly $4,225 $4,875
Annual $50,700 $58,500
New York City (10 or Fewer Employees)
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $900 $1,012.50
Bi-Weekly $1,800 $2,025
Semi-Monthly $1,950 $2,193.75
Monthly $3,900 $4,387.50
Annual $46,800 $52,650
Nassau, Suffolk & Westchester Counties
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $825 $900
Bi-Weekly $1,650 $1,800
Semi-Monthly $1,787.50 $1,950
Monthly $3,575 $3,900
Annual $42,900 $46,800
Remainder of State
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $780 $832
Bi-Weekly $1,560 $1,664
Semi-Monthly $1,690 $1,802.67
Monthly $3,380 $3,605.34
Annual $40,560 $43,264
Oregon*  – INCREASES 7/1/2019
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is the applicable minimum wage multiplied by 2,080 hours per year and then divided by 12 months. Or. Rev. Stat. § 653.010(9).

 Since Oregon’s minimum wage is increasing to $11.00 per hour (for employers in “nonurban counties”), $12.50 per hour (for employers in the Portland metropolitan area), and $11.25 per hour (for the remainder of the state) starting July 1, 2019, the minimum salary for exempt employees will be increasing as follows:

Nonurban Counties (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties)
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $420 $440
Bi-Weekly $840 $880
Semi-Monthly $910 $953.34
Monthly $1,820 $1,906.67
Annual $21,840 $22,880
Portland Metropolitan Area
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $450 $500
Bi-Weekly $900 $1,000
Semi-Monthly $975 $1, 083.34
Monthly $1,950 $2, 166.67
Annual $23,400 $26,000
Remainder of the State
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $430 $450
Bi-Weekly $860 $900
Semi-Monthly $931.67 $975
Monthly $1,863.33 $1,950
Annual $22,360 $23,400
NOTE:  Currently, only employers in the Portland metropolitan area must pay the state salary in order for to qualify for an executive, professional or administrative exemption.  All other employers in Oregon must pay the FLSA minimum salary in order for to qualify for an executive, professional or administrative exemption.

While not increasing, the minimum salary requirements to qualify for an executive, professional or administrative exemption is higher than the FLSA threshold in the following states:

Connecticut
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is $475 per week. Regs., Conn. State Agencies § 31-60-14.
Payment Schedule Current Minimum Salary
Weekly $475
Bi-Weekly $950
Semi-Monthly $1,029.17
Monthly $2,058.33
Annual $24,700
Iowa
Applicable Law: The minimum salary requirement to qualify as a “high-salaried” executive, professional or administrative employee (and qualify for an exemption from overtime if the duties test is also met) is $500 per week. 875 Iowa Admin. Code 218.1-218.3.
Payment Schedule Current Minimum Salary
Weekly $500
Bi-Weekly $1,000
Semi-Monthly $1,083.34
Monthly $2,166.67
Annual $26,000

Recommendation for Employers

It is recommended that employers in these states verify that their exempt employees are receiving at least the minimum salary requirement to qualify for the exemption.

Also, please remember that meeting the salary requirement is just one element needed to qualify for an exemption from overtime.  The employee in question must also meet the duties test and the salary basis test.

NEW LAW: DC To Require Sexual Harassment Training for Tipped Employees

Attention DC Employers, on October 23, 2018, the District of Columbia Mayor signed the “Tipped Wage Workers Fairness Amendment Act of 2018.”  While this law repealed Initiative 77 (discussed in NEW LAW – Washington DC Elimination of Tip Credit Repealed) and imposed new posting requirements on all DC employers (discussed in COMING SOON: New Posting Requirements for All DC Employers), the new law also imposes the following new requirements on employers of tipped employees:

Mandatory Sexual Harassment Training For Tipped Employees

Employers will be required to provide sexual harassment training to their tipped employees and managers.  This training must be either through a course developed by the Office of Human Rights (OHR) or from an OHR-certified provider. Continue reading NEW LAW: DC To Require Sexual Harassment Training for Tipped Employees