Proactively Manage Your Workforce – Or Face the Consequences if you Don’t Sponsored by:
Proactively Manage Your Workforce – Or Face the Consequences if you Don’t
Jeremy Hawpe Shareholder Littler
Jayne Keller Vice President, Senior Living Capella Living Solutions
#MeToo: Laws and Impact in the Workplace
Workplace Harassment and #MeToo • Federal and state legislation aimed at reducing harassment and encouraging reporting • New training requirements in multiple states
• EEOC: One-third of all lawsuits in FY2018 were harassment − 50% increase in harassment lawsuits over previous year
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Me Too – An Operations Perspective
• Routine training of anti-discrimination and harassment • Culture of trust • • • • •
Transparency Response to all concerns Honor diversity and cultural differences Anonymous hotline Be known and know others
State Laws Limiting Non-Disclosure/Confidentiality Related to Sexual Harassment and/or Assault - Enacted - Pending
ND
MT
WA
MN SD
OR
ID
VT
MI
WY PA IL
NV UT CO
MD
IN
KS
AZ
MO
WV
AR NM TX
DE
VA NC
AL MS
NJ
Washington, D.C.
TN
OK
RI
OH
KY AK
NH MA CT
NY
IA
NE CA
ME WI
SC GA
LA
FL
HI
PR
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Sexual Harassment Laws Training Requirements
ND
MT
WA
MN WI
ME
SD
OR ID
MI
WY IA PA
CA
IL UT
CO
OK NM
TX
Hawaii
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MD NJ
KS
WV
KY
DE
RI New York City
VA Washington, D.C.
TN NC
AR MS
Alaska
OH
IN
MO
AZ
NH MA CT
NY
NE NV
VT
AL
SC
GA
LA
FL
Puerto Rico
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Effective Investigations in the Post-#MeToo Climate
• Help with mitigation with government agencies • Reduce civil litigation/damages • Help keep complaints internal • Are an invaluable tool in today’s #MeToo environment • Help to create a culture where employees feel comfortable bringing complaints or making reports
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Overtime
Remember the 2016 Final Rule?
• Increased minimum salary for “white collar” exemptions to nearly $48,000 • Did not include a California-like duties test • Allowed employers to use bonuses and commissions, paid quarterly or less frequently, to count towards 10% of the minimum salary level • Provided for automatic increases to that salary level every three years 10
The Overtime Litigation?
• •
• •
What’s in? A new, more moderate salary level 10% of bonuses and commissions paid annually or less frequently count towards minimum salary New procedure for salary level updates New, higher threshold for the “highly compensated” exemption
What’s not in? • No regionalization of salary levels • No changes to the duties tests • No automatic indexing
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Minimum Salary Level
Weekly Current
Annual Current
$455
2016 Final Rule
2019 Proposal
$913
$679
2016 Final Rule
2019 Proposal
$23,660
$47,476
$35,308
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Bonuses, Incentive Payments, Commissions
Up to 10% of the minimum salary level may be satisfied with non-discretionary bonuses, commissions and other incentive pay that are paid annually or more frequently
Find the real minimum salary level using the 10% rule: $679 – 10% = $611.10 weekly salary $35,308 x 10% = $3,530.90 annual bonus
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Preparing for Change
Salary • Pull salary and incentive pay data for exempt employees earning below $40,000 • Calculate the cost of increasing annually salary to $35,308 • Calculate the cost of reclassification to non-exempt and paying overtime • Consider a cost-neutral solution
Job Duties • Do all your exempt employees meet the duties tests for exemption? • Rare opportunity to correct classification issues • Reduced risk of triggering litigation • Reclassification based on job duties should fly under the radar 14
DOL Best Practices – A Proactive Operations Approach
• Overtime management • Routine wage scale reviews and fairness • www.payscale.com
• Clear Path letters • Scheduling technology through timekeeping system • Alternative work schedules • Morale: perception of demotion when moving from exempt to nonexempt.
Paid Sick Time
Mandatory Paid Sick Leave Requirements
Seattle, WA SeaTac, WA Tacoma, WA
Duluth, MN Minneapolis, MN St. Paul, MN Chicago, IL Cook County, IL
WA
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States with Mandatory Paid Sick Leave Requirements
ID
CA
ME
WI MI
WY IN
MD
MO
KS
NM
AR
Berkeley, CA Emeryville, CA Long Beach, CA Los Angeles, CA Oakland, CA San Diego, CA San Francisco, CA Santa Monica, CA
LA
MS
VA NC SC
AL
GA
FL
Austin, TX* San Antonio, TX
NJ DE
WV
TN
OK
TX
Cities with Mandatory Paid Sick Leave Requirements
RI
OH
KY
AZ
CT
PA
IL CO
NH MA
NY
IA
NV UT
VT
New York, NY
NE
Counties with Mandatory Paid Sick Leave Requirements
Federal Contactors with Paid Sick Leave Requirements
MN SD
OR
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Philadelphia, PA Pittsburgh, PA*
ND
MT
DC Montgomery County, MD
Bloomfield, NJ* East Orange, NJ* Elizabeth, NJ* Irvington, NJ* Jersey City, NJ* Montclair, NJ* Morristown, NJ* Newark, NJ* New Brunswick, NJ* Passaic, NJ* Paterson, NJ* Plainfield, NJ* Trenton, NJ*
AL A SK A
HA W A I I
PUE RT O RI C O
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PTO and Sick Leave Policies
• Fairness in PTO management • PTO Sharing • Annual PTO cash-out • Critical needs fund • Crisis management • Debt reduction program • Scholarship program
Employee Engagement
Ideas for Building Employee Trust and Engagement
• Keepers Committee • PayActiv: www.payactiv.com • 98point6: www.98point6.com • Gifts and Growth • Social media for employees • Beekeeper www.beekeeper.io • Crew www.home.crewapp.com
Q&A