Uncategorized

Roundup.

  • lassoe roundupBetter Pizza, Better Wages. A New York Papa John’s franchise was hit this month with an $800,000 consent judgment for failure to pay wages and overtime to its employees. The franchisee apparently was rounding hours worked down to the nearest whole hour, thereby underpaying its pizza makers and delivery folks. New York law calls that “wage theft.”
  • Union numbers down. BNA reports that the share of private sector workers represented by unions fell by 0.1 percentage point in 2014 to 7.4 percent.
  • Hiring up. Almost 36 percent of businesses expect to add workers to their payrolls in the first quarter of 2015, according to a National Association for Business Economics Survey. Only 7 percent expect to cut jobs.

Michael Homans is a Labor & Employment attorney and founding partner of HomansPeck LLCFor more employment law updates, including news and links to important information pertaining to legal developments that may affect your business, subscribe to Michael’s blog, or follow him on Twitter @EmployLawUpdate.

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Uncategorized

Update Express

Here are some other quick developments we will be happy to expand upon for any interested readers:

  • A unionized employer’s decision to interpret its no-smoking policy to cover e-cigarettes may trigger a duty to bargain with a union.
  • Philadelphia has boosted the minimum wage for city contractors to $12 per hour, effective January 1, 2015.
  • FLSA claims are at their highest level ever in the US, up 107 percent in the past 10 years, and up 10 percent in the last year.
  • A federal judge in New York has conditionally certified a collective action under the FLSA for some 3,000 unpaid interns who claimed that Warner Music Group Corp. improperly classified them as exempt from minimum wage and overtime pay (are your company’s interns being paid properly?).
  • An employer may bring theft charges against a plaintiff’s law firm that orchestrates the theft of a company’s data in order to build a legal claim.
  • Firing a male employee for seeking family leave to attend an unexpected appointment for his pregnant wife may constitute retaliation in violation of the Family and Medical Leave Act.
  • The EEOC has settled a sexual harassment case in Oregon against a supermarket chain for $487,500, in which the individual harasser was a customer who repeatedly made lewd remarks and groped females. The company reportedly failed to respond effectively to end or prevent the harassment by the customer.

Michael Homans is a Labor & Employment attorney and founding partner of HomansPeck LLCFor more employment law updates, including news and links to important information pertaining to legal developments that may affect your business, subscribe to Michael’s blog, or follow him on Twitter @EmployLawUpdate.

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Avoiding Litigation, Class Action Litigation, General Counsel, Uncategorized, Wage and Hour Class Action Litigation

Six Ways to Avoid Wage-and-Hour Class Action Litigation

I recently wrote an article for The Legal Intelligencer on avoiding wage and hour/overtime class actions and liability. Click here to read the article, “Six Ways to Avoid Wage-and-Hour Class Action Litigation.”

Michael Homans is a Labor & Employment attorney and founding partner of HomansPeck LLCFor more employment law updates, including news and links to important information pertaining to legal developments that may affect your business, subscribe to Michael’s blog, or follow him on Twitter @EmployLawUpdate.

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Domestic Violence Unpaid Leave LAw, New Jersey Employers, SAFE Act, Uncategorized

New Jersey Extends Employee Rights Protection to Victims of Domestic Violence and Sexual Assault, Imposes New Obligations on Covered Employers

New Jersey is joining the small but growing number of states expanding workplace protections for victims of domestic violence. Beginning October 1, 2013, New Jersey employers with at least 25 employees must provide up to 20 days of unpaid leave to employees who are victims of domestic violence and sexual assault. The expanded rights provided to employees under the New Jersey Security and Financial Empowerment Act (“SAFE Act”) (law S2177) impose new and important obligations on employers. The City of Philadelphia has had a similar ordinance, known as the Domestic Violence Unpaid Leave Law, since 2009, which requires covered employers in the city to provide up to eight weeks of unpaid leave for victims of domestic violence.

Overview

Under New Jersey’s SAFE Act, employers must allow eligible employees who are victims and/or Keys for compliancewhose family members (children, parents, spouses, domestic partners or civil union partners) are victims of domestic violence or a sexually violent offense to take up to 20 days of unpaid leave in the 12-month period following an incident. Each incident of domestic violence or sexually violent offense is considered a separate offense for which an employee is entitled to unpaid leave, provided that the employee has not exhausted the allotted 20 days for the 12-month period. When an employee or an employee’s family member has been a victim of domestic violence or sexual assault, the employee may request leave for one of the following reasons:

  1. Seeking medical attention for, or recovering from, physical or psychological injuries caused by domestic or sexual violence
  2. Obtaining services from a victim services organization
  3. Obtaining psychological or other counseling
  4. Participating in safety planning, temporarily or permanently relocating, or taking other actions to increase the safety of the victim from future domestic or sexual violence or to ensure economic security
  5. Seeking legal assistance or remedies to ensure the health and safety of the victim, including preparing for, or participating in, any civil or criminal legal proceeding related to or derived from domestic or sexual violence
  6. Attending, participating in, or preparing for a criminal or civil court proceeding relating to an incident of domestic or sexual violence

Leave Timing and Notification

The SAFE Act protections apply to employees who have been employed at least 12 months and worked at least 1,000 base hours during the 12-month period immediately preceding the leave. Employees who wish to exercise their rights to leave under the SAFE Act, must provide written notice as far in advance as is reasonable under the circumstances. Employers may require the employee provide written documentation of the incident, and the SAFE Act lists specific forms of documentation that must be deemed sufficient, including, court orders, letters from prosecutors, conviction records, and medical records.

The leave may be taken intermittently in intervals of no less than a day. An eligible employee may elect, or an employer may require the employee, to use any of the accrued paid vacation leave, personal leave, or medical or sick leave of the employee during any part of the 20-day period of unpaid leave provided under the SAFE Act. In such case, any paid leave provided by the employer, and accrued leave pursuant to established policies of the employer, run concurrently with the unpaid leave provided. The employee must receive pay pursuant to the employer’s applicable paid leave policy during the period of otherwise unpaid leave. If an employee requests leave for a reason covered by both the SAFE Act and the Family Leave Act or Family and Medical Leave Act, the leave counts simultaneously against the employee’s entitlement under each respective law.

Additional Employer Obligations

To comply with the SAFE Act, employers must conspicuously display a notice of employees’ rights and obligations under the SAFE Act. A form of this notice will be published by the Department of Labor and Workforce Development. The Act also requires a covered employer to use “other appropriate means to keep its employees so informed,” but it is silent as to what other means may be used.

Until further guidance is issued, employers should consider including notifications of SAFE Act rights in employee handbooks, on Intranet sites, and in other places where the employer advises employees about their rights to leave.

Consistent with New Jersey’s other anti-discrimination and anti-retaliation laws, the SAFE Act expressly forbids employers from discriminating or retaliating against employees who exercise their rights under the SAFE Act and provides a range of available damages, which include civil penalties, lost wages, and attorneys’ fees.

This legal alert was guest-written by Adam E. Gersh. To learn more about complying with the SAFE Act or to address other labor and employment issues, please contact Michael D. Homans.

Michael Homans is a Labor & Employment attorney and founding partner of HomansPeck LLCFor more employment law updates, including news and links to important information pertaining to legal developments that may affect your business, subscribe to Michael’s blog, or follow him on Twitter @EmployLawUpdate.

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Uncategorized

Pennsylvania Approves Law Allowing Employers to Keep State Taxes for Newly Created Jobs

Employers planning to add 250 or more new jobs in Pennsylvania over the next five years are eligible to pocket a tax refund of nearly 3 percent of new employee wages for up to 10 years under a new state law. The law, however, limits the benefit to a total of $5 million per year statewide, and therefore qualified companies are advised to apply promptly before the annual allotment is exhausted. Published reports of interest by prospective beneficiaries are such that we anticipate the full allotment will likely be exhausted quickly.

The Promoting Employment Across Pennsylvania Act (the “Act”) allows qualified and approved employers to retain up to 95 percent of the personal income tax they withhold from the paychecks of workers in new jobs in Pennsylvania, as defined in the Act. The tax benefit lasts for up to five years for corporations with workers in new jobs who earn at least 100 percent of the average wage in the county in which the employee works, and for up to 10 years for new workers who are paid at 140 percent or more of the average wage.

In order to be eligible for the tax benefit, the law requires the following:

  • At least 250 new jobs must be created by the for-profit entity in the Commonwealth in the next five years, with at least 100 of those new jobs being created in the first two years after entering the program.
  • The company must provide health benefits to new full-time workers and pay at least 50 percent of the health insurance premium.
  • Companies that are delinquent in federal, state or local taxes, or who have filed for bankruptcy are not eligible for the program.
  • A company must apply for the program, be approved by the state Department of Community and Economic Development, enter into an agreement with the state on the planned participation, and submit required reports on new jobs and taxes retained each quarter.
  • The following industries are not eligible for the benefit: gambling, retail, educational organizations and service providers, public administration organizations, food service and drinking establishments.

The program reportedly was created in order to lure software giant Oracle to relocate high-paying jobs into central Pennsylvania, but the funding could cover dozens of other expanding employers.

Given that Pennsylvania’s personal income tax rate is currently a flat 3.07 percent, and is withheld from employee pay at the same rate, employers that are allowed to retain 95 percent of those withholdings will receive a benefit of over $1,450 per year for the typical job paying $50,000 a year, according to the state, and tax benefits of over $2,900 per year for jobs paying $100,000 a year. Thus, a large employer adding 250 jobs paying an average of $100,000 per year could receive a payroll tax benefit of over $725,000 per year over the possible 10 years of subsidy, with the employer retaining a total of $7.25 million in cash otherwise payable to the Commonwealth. Penalties and repayment obligations apply for companies that do not honor their commitments on job creation, or that relocate the jobs within five years of receiving benefits.

Qualified employers may apply now for the tax benefit, through the state Department of Community and Economic Development. The state is required to review the application and determine if the applicant is qualified within 30 days. The Department is given the authority in the Act to approve or deny any application. In current form, the program will continue for at least five years, and up to 10, with January 1, 2018 being the deadline to enter into any agreement under the Act. Due to the limited funding, interested and qualified companies should apply as soon as possible.

Questions? Contact Michael Homans at HomansPeck LLC.

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