FEBRUARY 2020 LEGAL UPDATE

FUTURE COMPLIANCE DATE REMINDERS

FEBRUARY 28, 2020: Paper Forms 1094-B & 1095-B or 1094-C & 1095-C Due to IRS

If filing by paper, ACA forms 1094-B and 1095-B or forms 1094-C and 1095-C being sent to the IRS must be postmarked by February 28, 2020.

MARCH 2, 2020: ACA Reporting Deadline

The deadline for distributing Affordable Care Act (ACA) reporting forms to employees has been pushed back from January 31 to March 2, 2020.  Organizations which had 50 or more full-time (including full-time equivalent) employees during 2018 must distribute 2019 1095-C forms by this deadline. Organizations with fewer than 50 full-time employees that offered coverage that was self-funded or level-funded must distribute 1095-B forms to participating employees by March 2, 2020 as well.

MARCH 2, 2020: Medicare Part D to CMS

Employers offering prescription drug coverage must disclose to CMS on or before March 2 (or within 60 days of the start of the plan year if on a non-calendar year plan). See CMS disclosure form.

MARCH 2, 2020: MEWA Form M-1 Due to IRS

All participating employers must file a Multiple Employer Welfare Arrangement (MEWA) form M-1 electronically with the IRS. In general, MEWAs are arrangements that offer health and other benefits to the employees of two or more different employers. See Form M-1.

MARCH 2, 2020: OSHA Form 300A Accident Summary Posting

Employers with at least 250 employees (including part-time, seasonal, or temporary workers) in industries covered by the recordkeeping regulation must submit information from their 2019 Form 300A by March 2, 2020 to OSHA. Employers with at least 20 employees but fewer than 250 in certain identified high-hazard industries must submit information from their 2019 Form 300 and 301 by March 2, 2020. A final rule issued by OSHA last year requires employers to electronically submit its Employer Identification Number (EIN) along with Form 300A. Click here for reporting requirements & electronic submission: OSHA.

MARCH 31, 2020: Electronic Forms 1094-B & 1095-B or 1094-C & 1095-C Due to IRS

If filing electronically, ACA forms 1094-B and 1095-B or forms 1094-C and 1095-C are due to the IRS by March 31. Any Applicable Large Employer (“ALE”) filing 250 forms or more must file electronically.

Prior to state primary election days: Voting Leave May Be Required

While there are no federal laws requiring time off to vote, many states require employers to provide voting leave. Check below for state-by-state requirements. State primary election days vary. See calendar here: State Primary Election Dates.

FEDERAL COMPLIANCE UPDATES

JUDGE HALTS EEO-1 COMPONENT 2 PAY DATA REPORTING

Employers now have a reprieve from reporting pay data by job category, race, sex and ethnicity to the federal government. On February 10, 2020, a federal judge ordered the EEO-1 Component 2 pay data collection complete. The Equal Employment Opportunity Commission (EEOC) website states the following: “the EEOC’s EEO-1 Component 2 “pay data” collection for 2017 and 2018 is now complete. The EEOC is no longer accepting filings of EEO-1 Component 2 pay data for either 2017 or 2018.”

NEW FORM I-9 REQUIRED

USCIS released a new version of the Form I-9. Employers must begin using the new version no later than May 1, 2020, but may begin doing so immediately. To access the updated form: https://www.uscis.gov/i-9.

Changes to the new Form include:

  • Updates to the fillable PDF version of the Form I-9 when completing on a computer.
  • Updates to the form instructions:
    • Clarified who can act as an authorized representative on behalf of an employer
    • Updated USCIS website address
    • Provided acceptable document clarifications
    • Updated the process for requesting the paper Form I-9 blank copies from USCIS
    • Updated the DHS Privacy Notice

There are no substantial updates to the actual paper version of the Form I-9 itself. 

OSHA CIVIL PENALTIES INCREASED

Effective for workplace safety violations assessed on or after January 16, 2020, the minimum and maximum civil penalties that the Occupational Safety and Health Administration (“OSHA”) may issue against employers for workplace safety violations have been increased by approximately 1.8%.  For any penalties assessed on or after January 16, 2020, a “serious” violation can cost up to $13,494, and a “willful” or “repeat” violation can cost up to $134,937. 

The Department of Labor chart below shows minimum and maximum civil penalties for various types of violations for 2019 and the new rates for 2020.

Type of Violation

2019 Penalty Minimum

2020 Penalty Minimum

2019 Penalty Maximum

2020 Penalty Maximum

Serious

$947 per violation

$964 per violation

$13,260 per violation

$13,494 per violation

Other-Than-Serious

$0 per violation

$0 per violation

$13,260 per violation

$13,494 per violation

Willful or Repeated

$9,472 per violation

$9,639 per violation

$132,598 per violation

$134,937 per violation

Posting Requirements

$0 per violation

$0 per violation

$13,260 per violation

$13,494 per violation

Failure to Abate

N/A

N/A

$13,260 per day unabated beyond the abatement date [generally limited to 30 days maximum]

$13,494 per day unabated beyond the abatement date [generally limited to 30 days maximum]

NLRB: NEW UNION ELECTION RULE

Effective April 16, 2020, a final rule issued by the National Labor Relations Board (“NLRB”) makes major modifications to union election procedures. The changes include:

  • Under current rules, a hearing on an election petition must be scheduled within only an 8-day period from the filing of the petition. The modified rules expand the period for scheduling the hearing to 14 days.
  • The current rules require an employer to file a comprehensive Position Statement the day before a scheduled hearing; any issues not fully raised in the Statement are deemed waived and cannot be litigated thereafter, nor can such issues be raised if the Statement was untimely filed.  Under the revised rules, the employer will have an expanded period of at least 8 business days to file the Position Statement, and regional directors have expanded authority to extend that period.  The petitioning union will be required to file its own counter-Position Statement by noon 3 business days before the commencement of the pre-election hearing.
  • Under the revised rules, all disputes concerning the scope of the voting unit and the voter eligibility of disputed employees will generally be litigated at the pre-election hearing, and will be decided by the regional director prior to the direction of an election.  This resolves a significant criticism of the current procedures, where employers often have no pre-election direction from the NLRB whether a disputed employee is or is not a statutory “supervisor”, whose conduct during an election campaign may be the subject of unfair labor practices or election objections.
  • Under the current rules, the Board generally declines to permit parties to file post-hearing briefs (when a hearing is conducted), in the interest of expediting the election.  The revised rules permit a right to file a post-hearing brief within 5 business days from the close of the hearing, with the opportunity to request an extension of up to 10 business days for good cause.
  • When a hearing is conducted, under current rules an election is normally scheduled within days after the regional director decides the hearing issues in a Decision and Direction of Election.  The revised rules provide that the regional director will not normally schedule an election before the 20thbusiness day after the Decision and Direction of Election is issued.  
  • Under current NLRB procedures, the employer was required to compile and file an accurate Voter List within 2 business days of a regional director’s approval of a stipulated election agreement or Decision and Direction of an election.   The revised rules impose a period of 5 business days.

REMINDER: H-1B FILING PERIOD BEGINS MARCH 1

Effective March 1, 2020 through March 20, 2020, employers can enter the H-1B lottery by providing basic information in an online registration, and paying a $10 fee. If the registration is randomly selected, the employer or its attorney will then have 90 days to prepare and file the full H-1B petition and pay the requisite USCIS filing fees.

 In order to register, employers will need the following information:

  1. Employer name, federal identification number (EIN), and mailing address;
  2. Name, job title, and contact information (telephone number and email address) of the employer’s authorized representative;
  3. Prospective employee’s full name, date of birth, country of birth, country of citizenship, gender, and passport number;
  4. Whether the employee has obtained a master’s or higher degree from a U.S. institution of higher education;
  5. Name of the employer’s attorney;

Employers are also required to attest that they intend to employ the beneficiary, to deter them from filing registrations and then not pursuing petitions if selected.

STATE COMPLIANCE UPDATES

ALABAMA

Voting Leave Required for State Primary

Employees are entitled to up to one hour of unpaid voting leave, if the polls are not open at least two hours before their regular shift or at least one hour after their regular shift. Employees must provide reasonable notice to be given this time off. The employer may specify the hours that the employee can take off.

ALASKA

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to paid voting leave of as much working time as will enable voting. 

ARIZONA

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to three hours of paid voting leave. The employer may specify the hours that the employee can take off. Employees must give notice in advance of Election Day to be entitled to this voting leave.

ARKANSAS

Voting Leave Required

Employers are required to schedule employees’ work schedules around poll hours on Election Day to enable employees to have sufficient time to vote.  

CALIFORNIA

Voting Leave and Notice Required

Employers are required to post a notice to employees ten days before a statewide election advising them of voting leave rights. A sample notice in English can be downloaded at no cost by clicking here: CA English Notice. Posting notices in nine other languages are available by clicking here: CA Notice (other languages).

If employees do not have sufficient non-working time to vote, they are entitled to up to two hours of paid voting leave at the beginning or end of their regular working shift (or another agreed upon time). An employee must provide notice at least two working days in advance of the election to be eligible for paid voting leave.

COLORADO

Overtime and Minimum Pay Standards (COMPS) Order Takes Effect

Effective March 16, 2020, the Colorado Overtime and Minimum Pay Standards (“COMPS”) Order replaces the Colorado Minimum Wage Order, making the following changes to state wage and hour laws:

  • Gradually raises the minimum salary for most overtime-exempt employees from $480 per week (or $24,960 per year for a 40-hour workweek) to:
    • $684.00 per week ($35,568 per year), effective July 1, 2020;
    • $778.85 per week ($40,500 per year), effective January 1, 2021;
    • $865.38 per week ($45,000 per year), effective January 1, 2022;
    • $961.54 per week ($50,000 per year), effective January 1, 2023;
    • $1,057.69 per week ($55,000 per year), effective January 1, 2024; and
    • The previous year’s amount, adjusted for inflation, effective January 1, 2025, and every January 1 thereafter;
  • Expands employer coverage beyond four broadly defined industries (retail & service, food & beverage, commercial support service, and health & medical), to include almost all private-sector Colorado employers;
  • Allows employers to use the fluctuating workweek method for calculating the compensation of salaried, non-exempt employees, as permitted under federal law;
  • Establishes a new overtime exemption for owners and proprietors, and eliminates the overtime exemptions for in-home domestic and companion employees;
  • Grants flexibility for an employee and an employer to agree to have two five-minute rest breaks instead of one 10-minute rest break;
  • Increases the maximum lodging credit that employers may claim, from $25 per week to $100 per week, but only if the lodging is a private apartment or house, rather than just a room in a shared dwelling (such as a hotel or dormitory room), which remains at $25 per week; and
  • Clarifies and expands existing posting and distribution requirements.

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. The employer may specify the hours that the employee can take off. Employees must give notice in advance of Election Day to be entitled to this voting leave.

DISTRICT OF COLUMBIA

District of Columbia Paid Family Leave Notice Requirement

Between February 1, 2020 and February 1, 2021, District of Columbia employers must post a notice about employee rights to paid leave under the DC Paid Family Leave Act (“PFLA”). The notice can be downloaded at no charge here: PFLA Notice.

Employers must also provide electronic or physical notice at the time of hire to all new employees hired after February 1, 2020. In addition, they must provide notice to individual employees when the employee provides notice of the need for leave that could qualify for PFLA benefits.  The notice must also be provided to all employees at least once per year after February 1, 2021.

The PFLA guarantees covered employees parental leave of up to eight weeks, family leave of up to four weeks, and medical leave of up to two weeks. Eligibility for leave under the PFLA begins July 1, 2020.

If an employee takes PFLA leave that also qualifies under the federal or DC FMLA, the leave periods run concurrently. Employers may amend their private leave policies to account for PFLA benefits, and they are not required to provide any additional private leave in addition to PFLA leave.

GEORGIA

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of unpaid voting leave. The employer may specify the hours that the employee can take off. Employees must give reasonable notice in advance of Election Day to be entitled to this voting leave.

HAWAII

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (excluding any lunch or rest periods), the employee is entitled to up to two hours of paid voting leave. An employer may require a voter’s receipt as proof of voting by the employee. If an employer can verify that the employee took leave and failed to vote, the employer may make appropriate deductions from wages.

ILLINOIS

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. The employer may specify the hours that the employee can take off. Employees must give reasonable notice in advance of Election Day to be entitled to this voting leave.

IOWA

Voting Leave Required

Unless an employee has at least three consecutive non-working hours in which to vote during poll hours, the employee is entitled to up to three hours of paid voting leave. The employer may specify the hours that the employee can take off. An employee must provide a written notice of request in advance of Election Day to be entitled to this voting leave.

KANSAS

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. The employer may specify the hours that the employee can take off.

KENTUCKY

Voting Leave Required

Unless an employee has at least four consecutive non-working hours in which to vote during poll hours, the employee is entitled to up to four hours of unpaid voting leave. No proof of voting is required, but an employee who takes time off and does not vote may be subject to disciplinary action. The employer may specify the hours that the employee can take off. An employee must provide a notice of request in advance of Election Day to be entitled to this voting leave.

MARYLAND

Ban the Box Passed

Effective February 29, 2020, the Criminal Records Screening (or “Ban-the-Box”) Act makes it unlawful for any employer in Maryland with 15 or more employees to inquire into an applicant’s criminal history before the employer conducts its first in-person interview.  The law provides for exceptions for an employer that provides programs, services, or direct care to minors or to vulnerable adults.

Montgomery County, Prince George’s County, and Baltimore City have more restrictive ban-the-box ordinances in place, which supersede the state law.

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. Employees requesting paid voting leave must furnish proof in the form of a state board of elections form that the employee has voted or attempted to vote.

MASSACHUSETTS

Voting Leave Required

Employees in manufacturing, mechanical, or retail industries are entitled to up to two hours of unpaid voting leave unless they have at least two consecutive hours of non-working time before the opening of the polls. Eligible employees must provide a notice of request in advance of Election Day to be entitled to this voting leave.

MINNESOTA

Voting Leave Required

Employees are entitled to paid voting leave for the time necessary to appear at their designated polling place, cast a ballot, and return to work.

MISSISSIPPI

Voting Leave Required

Employees are entitled to unpaid voting leave for the time necessary to appear at their designated polling place, cast a ballot, and return to work.

MISSOURI

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to three hours of paid voting leave. Employers may decide when the voting leave is taken. In order to be paid for the leave, an employee must submit a request before the day of the election. 

NEBRASKA

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. If the polls are open before or after an employee’s work shift for fewer than two consecutive hours, then the employee is only entitled to an amount of time off that, when added to the time that the polls are open before or after work, totals two consecutive hours. Employers may decide when the voting leave is taken. In order to be paid for the leave, an employee must submit a request before the day of the election. 

NEVADA

Voting Leave Required

If it is impracticable for an employee who is a registered voter to vote before or after work, the employee is entitled to paid voting leave. Employees who work two miles or less from a polling place may take up to one hour of paid voting leave. Employees who work two to ten miles from a polling place may take up to two hours of paid voting leave. Employees who work ten miles or more from a polling place may take up to three hours of paid voting leave. Employers may decide when the voting leave is taken. In order to be paid for the leave, an employee must submit a request before the day of the election. 

NEW MEXICO 

Voting Leave Required

Unless an employee has at least two hours in which to vote before the opening of the polls or at least three hours before the closing of the polls, the employee is entitled to up to two hours of voting leave. Employers may decide when the voting leave is taken. The statute does not specify whether this leave must be paid. 

NEW YORK

New York SHIELD Act Data Security Requirements

Effective March 21, 2020, the New York Stop Hacks and Improve Electronic Data Security Act (the “SHIELD Act”) requires businesses that collect computerized data including private information about New York residents to implement and maintain reasonable administrative, physical and technical safeguards. Recommendations include:

Administrative Safeguards

  • Designate individual(s) responsible for security programs;
  • Conduct risk assessments;
  • Train and manage employees in security program practices and procedures;
  • Select capable service providers and require safeguards by contract; and
  • Adjust program(s) in light of business changes or new circumstances.

Physical Safeguards:

  • Assess risks of information storage and disposal;
  • Detect, prevent, and respond to intrusions;
  • Protect against unauthorized access/use of private information during or after collection, transportation and destruction/disposal; and
  • Dispose of private information within a reasonable amount of time after it is no longer needed for business purposes.

 Technical Safeguards:

  • Assess risks in network and software design;
  • Assess risks in information processing, transmission and storage;
  • Detect, prevent, and respond to attacks or system failures; and
  • Regularly test and monitor the effectiveness of key controls, systems and procedures.

Small businesses with fewer than 50 employees and less than $3 million per year in gross revenue are held to more flexible standards but must still implement a reasonable security program appropriate for the size and complexity of their business.

Voting Leave and Notice Required

Employees who are registered voters are entitled to up to three hours of paid voting leave, regardless of their work schedules. The employee must notify the employer of the need for time off at least two but not more than ten working days prior to the election. Employers may decide when the voting leave is taken.

Employers must post a conspicuous notice of employee rights at least ten days before Election Day. The notice can be downloaded at no cost here: Election Law Notice.

NORTH DAKOTA

Voting Leave Encouraged

Employers are encouraged to give employees time off to vote when their regular work schedule conflicts with the times polls are open. The voting leave is not required to be paid.

OHIO

State to Reimburse Employers for Upskilling Workers

Under House Bill 2, which created the TechCred and Individual Microcredential Assistance Program, Ohio employers can apply to receive reimbursement for providing employees with access to industry-recognized, technology-focused credentials.

Under the TechCred program, the state will provide up to $2,000 reimbursement per employee and up to $30,000 per employer in each application period.

Instructions and application access can be found on the program’s website here: TechCred.

Voting Leave Required

Employees are entitled to a “reasonable time” of paid voting leave. The statute does not state whether the time off is paid or unpaid. 

OKLAHOMA

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. If the employee is at such a distance from the voting place that more than two hours are required, then the employee shall be allowed a sufficient time in which to cast a ballot. Employers may decide when the voting leave is taken. The employee must provide written or verbal notice one day before the election and must provide proof of voting. In lieu of voting leave, the employer may change the work hours to allow three hours before the beginning of work (or after the work hours) for the employee to cast a vote.

PENNSYLVANIA

Pittsburgh Paid Sick Leave

Effective March 15, 2020, the Pittsburgh Paid Sick Days Act will require employers with 15 or more employees to provide up to 40 hours per year of paid sick leave, accrued at a rate of one hour of leave for every 35 hours worked. Employers with fewer than 15 employees must also provide paid sick leave at the same accrual rate, up to 24 hours per year.

SOUTH DAKOTA

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave. Employers may decide when the voting leave is taken.

TENNESSEE

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to three hours of paid voting leave. Employers may decide when the hour is taken. The employee must give notice of the need for time off to vote at least before 12:00 p.m. on the day prior to the election.

TEXAS

Voting Leave Required

Unless an employee has at least two consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to reasonable time off to vote. The statute states that employers may not refuse to allow employee to take time off to vote, but no time limit specified.

UTAH

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to two hours of paid voting leave at the beginning or end of the regular work shift. Employers may decide when the voting leave is taken. The employee must request leave prior to Election Day. 

WASHINGTON

Data Breach Notification Law Amended

Effective March 1, 2020, HB 1071 updates and expands data breach notification obligations of businesses that maintain personal information of individuals in Washington. The new law adds six more data elements that will be considered “personal information” if combined with an individual’s first name or initial and last name. One other addition to “Personal Information” is any username or email address in combination with a password or security questions and answers that would permit access to an online.

If the breach affects more than 500 Washington residents, notice to the Attorney General must include now also include a list of the types of information affected by the breach, the time frame of exposure (including the date of the breach and the date the breach was discovered), a summary of steps taken to contain the breach, and a sample copy of the notice to affected individuals.

WEST VIRGINIA

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to three hours of paid voting leave. Employees requesting paid leave must submit a request in writing at least three days prior to Election Day.

Employers in essential government, health, transportation, and communication services and in production, manufacturing, and processing facilities may change the employee’s schedule so that time off does not adversely impact essential operations.

WISCONSIN

Voting Leave Required

Employees are entitled to up to three hours of unpaid voting leave. Employers may decide when the voting leave is taken. Employee requesting leave must provide notice before Election Day.

WYOMING

Voting Leave Required

Unless an employee has at least three consecutive hours in which to vote (either between the opening of the polls and the beginning of the employee’s shift or between the end of the regular shift and the closing of the polls), the employee is entitled to up to one hour of paid voting leave other than a meal break. Employers may decide when the voting leave is taken.

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