Analysis and commentary by Reed Smith attorneys on developments in employment and labor law
As New York employers look toward 2025, they should keep the following key dates in mind as it pertains to employee leave and benefit entitlements:
January 1, 2025:
Following last year’s wave of new employment laws (previously covered as follows: Part 1, Part 2, and Part 3), Virginia has adopted a variety of new laws that will take effect July 1 and continue to transform the Commonwealth’s employment law landscape. Virginia employers should carefully review these new laws to ensure compliance in this changing environment and in light of newly expanded enforcement mechanisms.
Minimum wage increase
While Virginia adopted incremental increases to the minimum wage set to reach $15 per hour by 2026, the first step-increase was delayed due to the pandemic. Effective May 1, 2021, the minimum wage increased to $9.50 per hour and is set to increase again effective January 1, 2022. The Virginia Department of Labor and Industry (DOLI) has issued a minimum wage guide for employers that includes an optional workplace posting announcing this increase.
The Virginia Overtime Wage Act
Governor Ralph Northam signed the Virginia Overtime Wage Act, which will take effect on July 1, 2021 and now provides overtime protections for employees under state law (previously overtime protections were only under federal law). While the new law incorporates the exemptions from overtime under the federal Fair Labor Standards Act (FLSA) and purports to graft the FLSA’s overtime protections into state law, there are several notable differences between the FLSA and Virginia’s new law.
Unlike the FLSA, Virginia’s new law (i) establishes a three-year statute of limitations thereby allowing recovery of up to three years of back wages, unlike the FLSA’s typical 2-year lookback; (ii) does not provide for any good faith defense for employers; and (iii) forecloses an employer from using the fluctuating workweek method or from paying a fixed amount to cover straight time wages for all hours worked. Accordingly, non-exempt employees paid a salary or on some other non-hourly basis are entitled to overtime for any hours worked over 40 at “one and one-half times” a regular rate of 1/40th of all wages paid for that workweek. Also unlike the FLSA, the new law’s definition of “employer” includes derivative carriers within the meaning of the federal Railway Labor Act. Unlike prior Virginia law, the new law provides for a private right of action under Virginia’s wage payment statute (with enhanced remedies enacted last year).
Continue Reading Virginia adopts new laws effective July 1 that continue to transform the employment landscape
The Families First Coronavirus Response Act (FFCRA), requiring employers with 50-500 employees[1] to provide supplemental paid sick leave and paid family leave to their employees, and California’s statewide COVID-19 supplemental paid sick leave requirement expired on December 31, 2020. While employers may voluntarily continue to provide FFCRA and receive tax credits through March 31, 2021, the FFCRA mandates are now voluntary for employers to continue absent federal legislative action. Despite this, numerous California counties and cities have extended their COVID-19 paid sick leave ordinances and imposed additional requirements for employers. To date, these include: Los Angeles (City and County), City of Long Beach, Sacramento (City and County), San Francisco, City of Oakland, San Mateo County, Sonoma County, Santa Rosa, and San Jose.
City of Los Angeles. Los Angeles Mayor Eric Garcetti recently revised an order requiring an employer to provide COVID-19 Supplemental Paid Sick Leave (SPSL) if it has 500 or more employees in the city or 2,000 or more employees nationally. The February 10, 2021 revised order expanded coverage and provides SPSL benefits to employees employed with the same employer for 60 days, and expanded coverage to employees hired on or after March 5, 2020. Most importantly, the revised order mandates that employers calculate SPSL based on the employee’s respective two-week average pay over the last 60 days of employment. The order remains in effect until two calendar weeks after the expiration of the County of Los Angeles local emergency period.
Continue Reading Brief refresher for California employers: 2021 updates to local COVID-19 paid sick leave requirements
As we previously reported, on March 18, 2020, New York State passed a law providing job protection and benefits to certain employees quarantined or isolated due to exposure to and/or infection with COVID-19. On January 20, the New York State Department of Labor issued supplemental guidance clarifying some important points for employers about complying…
The Empire State recently announced strict measures to protect against the spread of COVID-19 by individuals returning to New York from states experiencing a spike in cases. Specifically, on June 24 Governor Cuomo signed Executive Order 205 (EO 205), which requires individuals returning to New York from a state that meets either of the following conditions to quarantine for a period of 14 days:
This new order comes in the wake of a recent upsurge in cases around the country and currently covers travelers returning from Alabama, Arkansas, Arizona, Florida, North Carolina, South Carolina, Utah, and Texas. However, it is expected that this list will continue to grow, as more states see an uptick of new cases. Any violation of a required quarantine may be deemed a violation of EO 205, resulting in a civil penalty of up to $10,000.
Continue Reading New York state further restricts eligibility for its paid quarantine leave
The worldwide COVID-19 pandemic has had, and will continue to have, a substantial impact on the U.S. workplace. We have prepared a series of FAQs compiled based on some of the more common questions that clients with California-based employees have posed to us over roughly the past six weeks.
These FAQs are general and high-level…
Earlier this month, the US Department of Labor (DOL) promulgated regulations to implement the recently enacted Emergency Paid Sick Leave Act (EPSLA) and Emergency Family and Medical Leave Expansion Act (EFMLEA), both of which are part of the broader Families First Coronavirus Response Act (FFCRA). The regulations address several key issues that were unclear in the original statutory language. Still, as explained below, several critical questions surrounding the EPSLA and EFMLEA remain unanswered.
Subject to certain eligibility requirements, the plain language of the FFCRA requires employers to furnish EPSLA and EFMLEA leave to their workers if the business has fewer than 500 employees in the United States. The regulations make clear, however, that the determination of whether an employer falls under this threshold must be made on a rolling basis at the time a particular employee requests leave (rather than, for instance, as of the FFCRA’s April 1 effective date).
This approach will require employers to take a “snapshot” of employee headcount at different intervals to assess the paid-time-off and leave entitlements of particular employees. And the regulations in fact even recognize that the approach may result in employees of the same entity having different paid-time-off and leave rights depending on when the employee requests leave. For example, a company with 499 or fewer employees in April may need to grant leave to employees, but if its payroll is over 500 in May, it can deny a request for FFCRA leave at that time.
The regulations also clarify that, for purposes of determining employee headcount under the FFCRA, employers must include all full-time and part-time employees, employees on leave, and day laborers supplied by a temporary agency. If the company is a “joint” or “integrated” employer under previous DOL standards, the employees of all entities must be counted together. The regulations also clarify that independent contractors do not count towards the 500-employee threshold (although it remains to be seen how this concept applies to workers who are excluded from the FFCRA calculation but are misclassified as independent contractors). See 28 C.F.R. § 826.40. The DOL further clarifies that employees who have been temporarily laid off or furloughed, and not subsequently reemployed, do not count toward the 500-employee threshold for determining employer eligibility under the FFCRA. See 29 C.F.R. § 826.40(a)(1)(iii).Continue Reading DOL issues new guidance on Families First Coronavirus Response Act (FFCRA)
In the wake of the COVID-19 pandemic, yesterday, New York State Governor Andrew Cuomo signed into law a bill providing job protection and benefits to certain employees quarantined due to COVID-19.
Principally, the legislation provides certain job protections to employees subject to a mandatory or precautionary order of quarantine or isolation issued by the state, the Department of Health, a local board of health, or any government entity authorized to issue a quarantine order. The protections vary based on employer size, as follows:
Continue Reading Big Apple employers: Governor Cuomo announces job protections and paid sick leave for New Yorkers quarantined due to COVID-19
The afternoon of March 18, 2020, the Senate passed H.R. 6201, the Families First Coronavirus Response Act. Division C of the Bill details the Emergency Family and Medical Leave Expansion Act, and Division E provides additional protections under the Emergency Paid Sick Leave Act. Both divisions apply to employers with fewer than 500 employees.
At a high level, these laws work together so that, under the Emergency Paid Sick Leave Act, qualifying employees will receive 80 hours of paid leave for immediate use, then they will received paid leave at two-thirds of the employee’s wages for the duration of a COVID-19 related Family and Medical Leave Act leave.
Key provisions of both laws are described below.
Emergency Family and Medical Leave Expansion Act (Effective 15 days after enactment)
This statute provides for additional benefits under the FMLA so that eligible employees will receive job protection and a paid component for certain COVID-19-related absences.
Which employers are covered?
Employers with fewer than 500 employees are subject to the expansion. Part-time employees are included in this count to assess coverage.
The Secretary of Labor has authority “for good cause” to exempt (1) certain healthcare providers and emergency responders; and (2) small employers with fewer than 50 employees where the added expense would jeopardize the business. Under certain circumstances, the requirement to restore employees to their employment will not apply to businesses with fewer than 25 employees.
Additionally, an employer of employees who are healthcare providers or emergency responders may exclude these employees.
As a practical matter, larger employers that break up their workforce across smaller employing entities should review the respective employee populations for each entity to determine whether the expansion will apply to that population. In making this decision, consider what company is listed as the employer on an employee’s pay statement or review each Employer Identification Number separately.
Which employees are eligible?
Employees who have been employed for at least 30 calendar days will qualify for leave. Notably, the other FMLA employee eligibility requirements (e.g., hours worked) do not apply here.
Employers appear to have the discretion to exclude healthcare providers and emergency responders, though this language of the statute is in tension with the delegation of rulemaking authority to the Secretary of Labor to determine such exemptions.
What events will trigger coverage?
Employees who are unable to telework may use this leave if they must care for a child following the closure of a school or daycare, or other unavailability of childcare due to the coronavirus.
How does paid leave apply?
The first ten (10) days of FMLA leave may be unpaid (but see the Emergency Paid Sick Leave Act provisions, below). Employees may elect to use their accrued vacation, personal or sick leave to cover this window, but employers may not require it. After this initial period, the employer will be required to pay at least two-thirds of an employee’s regular wages, according to their normally scheduled hours.
Payment is capped at $200 per day and $10,000 total for the duration of the leave.
The statute provides a formula for calculating payments for employees with varying or irregular schedules.
The expansion allows for up to twelve (12) weeks of coverage for all eligible employees in addition to the initial 10-day supplement provided by the Act.Continue Reading What employers need to know about the Families First Coronavirus Response Act (H.R. 6201)
Employers in three major cities in the Lone Star State should begin preparing for compliance with paid sick leave ordinances. Joining a number of other states and cities to have enacted paid sick leave laws, the cities of San Antonio, Austin, and Dallas passed ordinances requiring private employers to provide employees with paid sick leave. While the Austin ordinance has been blocked due to litigation regarding its constitutionality, which is now before the Texas Supreme Court, the San Antonio and Dallas ordinances are set to go into effect on August 1, 2019 (except as to employers with five or fewer employees in the preceding year, for which paid sick leave obligations will not go into effect until August 1, 2021).
The paid sick leave ordinances – which largely mirror each other – require all private employers to provide employees who perform at least 80 hours of work per year in the applicable city with one hour of paid sick leave for every 30 hours worked. Employees working for employers with 15 or more employees may accrue a maximum of 64 hours of paid sick leave annually. Employees who work for employers with fewer than 15 employees at all times during the preceding 12 months may accrue a maximum of 48 hours. Employees may carry over accrued, unused paid sick leave up to the maximum except where the employer makes sick leave equal to the maximum amount available to employees at the beginning of the year.Continue Reading Paid sick leave to take effect soon for employers in three cities in the Lone Star State
