2017 Labor & Employment Laws: New Year, New Government, New Challenges

On January 1, 2017, employers across the nation will face a host of new or amended federal, state, and/or local labor and employment requirements. At the same time, there is uncertainty as to how the Trump Administration and Congress may alter those federal obligations.1 With Congress gridlocked for much of the 2016 election year, the most significant labor and employment legislation and regulations were enacted at the state and municipal levels. Multiple states approved minimum wage increases, with built-in multi-year increases and annual adjustments. Marijuana liberalization - medical and recreational - occurred throughout the country.2 Although only a handful of equal pay measures were enacted in 2016, Massachusetts garnered significant media coverage when it imposed limits on inquiries about applicants' prior salaries, continuing a slow but steady pay equity trend. New statewide paid sick leave measures were enacted, and numerous states expanded coverage or available rights under existing leave laws. The biggest compliance hurdle for multi-state and national employers - or even companies with statewide operations - may be simply keeping abreast of local law developments.

Some cities and counties have taken it upon themselves to shape workplace policy. In essence, local governments have become labor and employment law incubators; issues a decade ago labeled one-offs in liberal-leaning metropolitan areas have gained traction throughout the nation. Local governments continue to adopt minimum wage laws at an impressive clip, setting rates that exceed the state counterparts and far exceed their federal cousin. Although more states have joined the club, local paid sick leave laws far outnumber state measures and exist in states (currently) without corresponding provisions. Cities and counties are also the only jurisdictions that have enacted flexible scheduling laws in which certain retail and hospitality employees must notify new employees about their schedules, provide additional pay for schedule changes, and offer additional hours to part-time employees. In 2016, San Francisco became the first jurisdiction to mandate that employers supplement their employees' wages when taking parental leave for new child bonding.

Most 2016 laws have already taken effect; what remains are those scheduled to take effect sometime in 2017, which we highlight below. Although local and industry-specific laws may be listed below, these samples are included to highlight compliance challenges employers face. In addition, not all state and local minimum wage laws are included in this article. A complete discussion of minimum wage rate changes for 2017 and beyond can be found in a separate Littler Insight.3 Because the list does not every possibly applicable federal, state, and local law, employers may find it helpful to discuss with knowledgeable counsel which local, state, and/or federal laws will apply in 2017. At the federal level, the list below may change significantly with the incoming Administration.

Federal

Rule/E.O.Main TopicEffective Date Summary Final Rule on Insurance Exchanges (2012)4 Healthcare Reform States can allow businesses with more than 100 employees to participate in healthcare exchanges. 1/1/2017 Final Rules on Wellness Programs5 Wellness Programs Employers must provide a notice clearly explaining what medical information will be obtained, how it will be used, who will receive it, the restrictions on its disclosure, and the methods the employer uses to prevent its improper disclosure. The rules also set limits on inducements for participating in an employer-sponsored wellness program (or multiple employer-sponsored wellness programs that request such information) 1/1/2017 Final Rule Defining Fiduciary and Conflict-of-Interest-Retirement Investment Advice6 Employee Benefits (Retirement) Defines who is a "fiduciary" of an employee benefit plan under ERISA as a result of giving investment advice to a plan or its participants or beneficiaries. 4/10/2017 Final Rule on Disclosure of Median Compensation (2015)7 Executive Compensation Public companies must disclose, to the SEC and shareholders, the ratio of CEO compensation to the "median compensation" of the corporation's employees (except the CEO). 1/1/2017 Executive Order 13706 & Final Rule Establishing Paid Sick Leave for Federal Contractors8 Paid Leave (Government Contractor) Creates paid sick and safe time requirements for federal contractors relating to certain contracts entered into after January 1, 2017. Employees accrue 1 sick leave hour for every 30 hours worked. Accrual can be capped at 56 hours. Accrued but unused leave carries over to the following year. Leave can be used for an employee or an employee's family member. 1/1/2017 Notice of Minimum Wage Rate Change for Contractors9 Minimum Wage (Government Contractor) Increases the minimum wage for workers performing work on or in connection with covered contracts to $10.20 per hour, and increases the minimum cash wage for tipped employees to $6.80 per hour. 1/1/2017 Final Rule on Walking-Working Surfaces and Personal Protective Equipment Workplace Safety Revises and updates general industry standards on walking-working surfaces to prevent and reduce workplace slips, trips, and falls, as well as other injuries and fatalities associated with walking-working surface hazards. 1/17/2017 Final Rule on Occupational Exposure to Respirable Crystalline Silica10 Workplace Safety Sets new workplace permissible exposure limits (PELs) for respirable crystalline silica. Includes one standard for the construction industry (applicable June 23, 2017) and a separate standard for general industry and maritime employment (applicable June 23, 2018). 6/23/2017 Final Rule on Fair Pay and Safe Workplaces11 Pay Stubs (Government Contractor) Contractors holding federal contracts for goods and services (including construction) worth more than $500,000 must provide the following information to employees with each paycheck: hours worked; overtime hours; rate of pay; gross pay; and any additions to or subtractions from pay (like bonuses, awards and shift differentials). 1/1/2017 Final Rule Improving Tracking of Workplace Injuries and Illnesses12 Workplace Safety Various employers must submit injury and illness data electronically. 1/1/2017 Alabama

LawMain TopicEffective Date Summary Amendment 8 Labor Relations Prohibits rejecting applications based on an applicant's membership or non-membership in a labor union. 11/29/2016 Arizona

LawMain TopicEffective Date Summary Proposition 20613 Paid Leave Creates paid sick and safe time law. Employees accrue one hour of sick leave for every 30 hours worked, and can accrue either 24 or 40 sick hours per year, depending on an employer's size. Accrued but unused sick leave carries over to the following year, and employees can use 24 or 40 hours per year, depending on an employer's size. Leave can be used for the employee, a family member, or any other individual related by blood or affinity whose close relationship is the equivalent of a family relationship. 1/1/2017 Arkansas

LawMain TopicEffective Date Summary Ballot Issue 6 Marijuana Legalizes medical marijuana, prohibits discrimination against qualifying patients or designated caregivers, but does not require accommodating workplace use or working under the influence. 11/9/2016 California

LawMain TopicEffective Date Summary SB 1342 Agency Enforcement To enforce local laws or...

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