Key Legislative Updates for the Hourly Workforce
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This document provides an overview and update on key legislative issues impacting hourly workforces, including predictive scheduling and salary history laws. It discusses new laws requiring advance notice of work schedules and banning inquiries into applicants' salary histories. The document outlines recent laws passed in Illinois, Chicago, and other jurisdictions, detailing requirements for employers to provide notice of schedules in advance and prohibiting salary history questions. It concludes with next steps employers should take to ensure compliance with these new regulations.
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Key Legislative Updates for the Hourly Workforce
- 1. Key Legislative Updates for the Hourly Workforce PREDICTIVE SCHEDULING AND SALARY HISTORY INQUIRIES
- 2. 2 Jennifer Long, J.D. Duane Morris LLP Brittany Kovalcik Director of Marketing, EPAY Systems Webinar Hosts:
- 3. 3 Agenda • Intro to EPAY • What do Salary History Bans Require? • What is Predictive Scheduling? • Employer To Do List • Question and Answer Session
- 4. Who is EPAY Systems CHICAGO BASED TECH COMPANY PROVIDER OF COMPLETELY UNIFIED, FULL SERVICE HCM SOLUTIONS SERVING HOURLY WORKFORCE ENVIRONMENTS INDUSTRY LEADER FREE PREMIUM CUSTOMER SUPPORT CUSTOMER RETENTION FOUNDED 2001 UNIQUELY FLEXIBLE CLOUD BASED TIME & LABOR MANAGEMENT TECHNOLOGY 24 HOURS/DAY 7 DAYS/WEEK, 365 DAYS/YEAR 170,000+ WORKSITES 99%
- 5. Update on Salary History Bans
- 6. 6 What is a “Salary History Ban” ? • Prohibition under state law or local ordinance • Prevents employers from asking about, obtaining, or using an applicant’s prior compensation history during the screening process • Can prohibit inquiries into an applicant’s: • Salary / hourly rate • Bonuses • Commissions • Benefits • Other compensation
- 7. 7 Poll: Does your company use an applicant’s past salary to make offers? If so, why? • No, we do not use past salary information when making offers • Yes, we want to be competitive in the market • Yes, we do not want to pay more than what is necessary • Yes, we want to screen applicants using this data point • Yes, we want to test truthfulness during the background check process • Yes, for other reasons
- 8. 8 Update on Salary History Bans Do you ask for any salary history during the application process? Review your practices: • Application • Upfront question • Past employer lists/details • Interviews • Background checks process • In-house • CRA report
- 9. 9 Update on Salary History Bans Bans on Asking About Salary • 17 States • CA, DE, MA, OR, NC, ME, MI, HI, CT, PA, VT, NJ, NY, IL, AL, CO, MO, WA • Some are public employers only • Many became effective sometime in 2019 • 19 municipalities, etc. • Chicago, New Orleans, NYC, Albany, Philly, San Fran, KC, etc. • 2 bans on bans (MI, WI) • Preemption laws • Prohibit municipalities from passing such laws
- 10. 10 Poll: Does your company ask applicants or obtain information about salary history? • No, not at all • Yes, question on our application for all positions • Yes, question asked during the initial screening process • Yes, question asked during the background check process • Maybe, interviewers may ask during supervisor interviews • Not sure
- 11. 11 What Do Salary History Bans Prohibit? Typical provisions may include: • Ban on asking, obtaining, or using salary history information • No discrimination or retaliation • May expressly permit discussion of pay expectations • May permit providing pay minimum or scale/ranges • May permit “voluntary” and “unprompted” disclosures to be used • May permit prior pay corroboration after offer extended • Exceptions may include internal candidates • Exceptions may or may not include publicly available info
- 12. 12 Illinois – Salary History Ban – Executive Order Illinois Executive Order 2019-02 • 1/15/2019: Governor Pritzker signed on his 1st full day in office • Bans salary inquiries by state employers • Requires state agencies to review pay plans to eliminate bias caused by prior salary history inquiries
- 13. 13 Illinois – Salary History Ban – Equal Pay Act Amendment Equal Pay Act Amendment • 1/22/2019: Amendment introduced for all private sector employers & recruiters: • 7/31/2019: Signed by Governor Pritzker • 9/29/2019: Effective Date • Previously passed twice (2017, 2018), but vetoed by then-Gov. Rauner
- 14. 14 Illinois – Salary History Ban – Equal Pay Act Amendments Prohibits: • Screening job applicants based on wage or salary history • Even if voluntarily disclosed!!! • Requiring applicant’s prior wages to satisfy min/max criteria • Requesting or requiring applicant to disclose prior wages/salary as condition of being interviewed or considered for employment • Seeking salary, benefits, comp/salary history from an applicant’s current or former employer • Cannot condition employment on waiver or disclosure
- 15. 15 Illinois – Salary History Ban – Equal Pay Act Amendments • Certain exceptions • Publicly available • Current employees • Voluntary disclosures – BUT CANNOT USE! BE WARY, SO WARY!! • Employers are allowed to: • Provide compensation info to applicants • Discuss applicant’s expectations
- 16. 16 Illinois – Salary History Ban – Equal Pay Act Amendments • Limited defenses • Liability may include: • Provides special damages (up to $10,000) • Compensatory damages only if exceed $10,000 • Injunctive relief • Civil penalties • Attorneys’ fees and costs • 5 year statute of limitations
- 17. 17 Salary History Bans What’s Next? • Legal and talent acquisition reasons to drop inquiries • Consider posting scales, ranges, or minimum If your jurisdiction has a salary history ban • By 9/29/2019 in Illinois • REMOVE ALL QUESTIONS, EVERYWHERE • Inform All Recruiters, Review Contracts • Train Interviewers, Screeners
- 18. Update on Predictive Scheduling Laws
- 19. 19 What Are “Predictive Scheduling” Laws? Prohibition under state law or local ordinance Requires employers to provide advance notice of employees’ work schedules Requires compensation for employees for changes to schedules
- 20. 20 What Are “Predictive Scheduling” Laws? What does “predictive scheduling” require? • All specific to local law Examples: • Can include penalty or extra pay to employees: • Related to any changes to hours, shifts or work days • Extra payment (extra hours, 1.5 x hourly rate) for hours worked • Penalty payment (0.5 x hourly rate x regular shift hours) for cancelled shifts • May differ depending on amount of advance notice: • 10-14 days in advance: No penalties • 48-72 hours in advance: Smaller penalty • Less than 24 hours in advance: Full pay or 1.5 x pay rate • Right to Rest – for working back to back, or limited break shifts 20
- 21. 21 Poll: Does your company provide advance notice of work hours and schedules? • No, we routinely notify employees of work hours or schedules with limited notice (e.g., 24- 48 hours’ notice) • Yes, we post schedules >10 days in advance and rarely make changes except for employee requests • Yes, we post schedules > 72 hours in advance and rarely make changes except for employee requests • Yes, we post schedules in advance, but we routinely change schedules according to business needs (e.g., <24-48 hours’ notice) • Other 21
- 22. 22 Predictive Scheduling Laws • Laws Involving Predictive Scheduling Issues: • 3 states • OR, VT, NH • 7+ municipalities • Chicago, NYC, Wash DC, Philly, San Fran, Seattle, etc. • 1 ban on predictive scheduling laws (GA) • Plus other preemption laws (AR, IA, TN) • Prohibit municipalities from passing such laws 22
- 24. 24 Chicago Fair Workweek Ordinance • Effective 7/1/2020 • First introduced 7/2017 “Covered Employers” • 100 or more employees • 250 or more for non-profits • 50 of whom are “covered employees” • Primarily engaged in “covered industry” 24
- 25. 25 Chicago Fair Workweek Ordinance “Covered industries” include employers in: • Healthcare (specific licenses) • Building services • Hotels • Restaurants • Manufacturing • Retail • Warehouse Services 25
- 26. 26 Chicago Fair Workweek Ordinance “Covered employees” • Includes temps; • Work 420 hours in 18 months; • Majority of work physically within Chicago; • Majority of work in covered industry; and • Earn <$50K/year or <$26/hour Covered employees are those not covered by CBA • If already in effect on 7/1/2020; or • If after 7/1/2020, if clearly and unambiguously waived in CBA 26
- 27. 27 Chicago Fair Workweek Ordinance Advance notice of schedule required: • Pre-hire: Good faith estimate in writing of projected days/hours for 1st 90 days • Must post notice • Must provide notice to new hires • Written notice of work hours at least 10 days before any new schedule • As of 7/1/2022, advance notice period is 14 days 27
- 28. 28 Chicago Fair Workweek Ordinance Advance notice of schedule required: • For any changes • Must consider employee requests and notify decision in writing within 3 days Penalties: • Up to advance notice deadline, no penalty for changes • Within deadline, 1 hour predictability pay for each change in shift • Includes date, time, extra hours, cancel on-call hours with <24 hrs notice, etc. • <24 hours notice = ½ pay for all hours not worked Exemptions and Exceptions: • Exemptions: Agreed in writing at employee request, acts of nature, war, utilities, etc. • Exceptions: Employees who self-schedule, major ticket venues 28
- 29. 29 Chicago Fair Workweek Ordinance Other requirements: • Must offer extra hours to existing staff first, prior to hiring (exceptions: overtime required, not qualified) • Employees can decline shifts beginning <10 hours following end of prior shift • If employee agrees to work, paid at 1.25 x regular rate 29
- 30. 30 Chicago Fair Workweek Ordinance Other requirements: • No retaliation Liability may include: • Fines $300-500 per offense; $1000 for retaliation • Private right of action • Administrative exhaustion required with CDBACP 30
- 31. 31 Predictive Scheduling Next Steps • Prepare business units to anticipate advance scheduling requirements • Plan systems for documenting changes • Policies • Forms • Technology • Document retention for schedules, changes, notices • All required notices • Pre-employment documents 31
- 32. Bonus: Direct Deposit Wage Payment Laws
- 33. 33 What Do Direct Deposit Laws Require? • Compliance requirements under state law or local ordinance • Dictate whether or not employers can require employees to utilize direct deposit for wage payments • Provide compliance requirements for all direct deposit or non-check payment of employee wage payments 33
- 34. 34 Poll: Does your company require direct deposit of employee wage payments? • No, direct deposit is offered on a voluntary basis • Yes, we require direct deposit to the company’s selected bank • Yes, we require direct deposit to the employee’s selected bank • Yes, but we permit opt out or selection of alternative method (debit card, etc.) 34
- 35. 35 Update on Direct Deposit Laws Examples • FLSA and 22 states now permit mandatory direct deposit • FLSA: Must satisfy minimum requirements • Employee’s choice of bank or employer’s choice with other payment options available • State-by-state compliance requirements may also include: • No fees • Choice of bank • Opt out provisions • Access to/printed pay stubs • Apply to certain industries • Apply to certain employers
- 36. 36 Direct Deposit Laws Next Steps • Review direct deposit procedures • Review authorization and compliance requirements 36
- 37. Pre-hire to Retire: One Integrated Platform SELF SERVICEMOBILE ANALYTICSREPORTING DELIVERED AS A SERVICE APPLICANT TRACKING BENEFITS ADMINISTRATION HUMAN RESOURCES MANAGEMENT PAYROLL & TAX MANAGEMENT TIME & LABOR MANAGEMENT PERFORMANCE MANAGEMENT ACATAX MANAGEMENT ANCILLARY SERVICESPAYROLL OUTSOURCING
- 38. STANDARD REPORTS AND CUSTOM REPORTING TOOL APPLICANT TRACKING BENEFITS ADMINISTRATION PAYROLL & TAX MANAGEMENT TIME & LABOR MANAGEMENT HUMAN RESOURCES MANAGEMENT PERFORMANCE MANAGEMENT • Integration with leading job boards • Unlimited users with full system access • Screening q’s, keywords, applicant tagging • Video interviewing • Email and SMS messaging and templates • Mobile • Spanish applications • Plan administration • Open enrollment • COBRA management • ACA compliance reporting • Carrier Connect (data feeds) • 401K file feed • Complete payroll and tax processing • Accommodation of multiple FEINs, states and localities • Garnishment processing • Year-end tax filing • New hire reporting • Free pay card program • Flexible pay rules • Scheduling • Accruals • Budgets & job costing • Workforce analytics • Wage & hour compliance • Mix & match time collection options • New hire onboarding with electronic I-9 and e-verify • Skills, education & performance tracking • Employee & manager self-service • Document & task management • OSHA, EEO & Workers’ Comp reporting • Automated performance and self-reviews • 360 degree surveys • Compensation dashboard • Learning content integration • Goal management • Statistics dashboard • Journaling
- 39. 39 Questions?
- 40. 4040 Thank you! Jennifer L. Long, J.D. 312-499-6736 jlong@duanemorris.com
- 41. Review today’s slides Take a 2-minute Tour Request a personalized demo Next Steps Connect with us on Social Media Visit Our Website www.EPAYsystems.com
Editor's Notes
- Let me do a quick overview of what EPAY Systems has to offer you and then we can go into a deeper dive during the actual demo of the system. EPAY SYSTEMS has redefined workforce management with the needs of your company in mind, bringing together critical organizational functions in a single cloud based system that eliminates redundant tasks, reduces the potential for errors, and lessens the learning curve for users. -------------------------------------------------------------------------------------------------------------- [Marketing Notes] Data bridges to your Electronic GL/ERP/Financials Ancillary services – include Workers Comp, COBRA
- Transition into different components of the system… Recruiting and Applicant tracking Choose from different packages offering 5, 10 or 30 or unlimited active jobs per month. Anyone of your managers can have access. Post jobs on all of the popular job boards or connect our system with your unique company plan that you already have pre-determined with a job board, like CareerBuilder. HR Management EPAY SYSTEMS HR Management system offers a fully integrated solution that allows you to: Access, manage and analyze the most sensitive and complex HR information, like salaries and pay grades for performance reviews. Improve EE recordkeeping Gain convenient access to standard PR and HR reports that help maintain compliance with government regulations concerning COBRA, ACA and EEO administration as well as OSHA events. Free your HR staff from redundant administrative tasks, so they can handle programs and issues that are strategically important for your business, such as recruiting, retention and performance management. Benefits Administration EPAY SYSTEMS benefits system will give you increased control over benefits processes: Reduce labor costs by empowering EE’s to make benefit changes during open enrollment. Control benefits costs by avoiding unnecessary benefit and premium payments, while also reducing the cost of benefits administration and communication. Electronically monitor your EE’s Health & Welfare benefits information accurately and with secure confidence. Experience visibility for tracking changes and updates made by EE’s. Administer Benefits Use one system to manage all company benefits Electronically update employer data to carriers Calculate eligibility dates? Bill reconciliation with carriers? Tracking of required information for ACA Onboard New Employees Capture employee info, federal, state and local tax filing forms, and your specific forms Welcome-aboard message center Company policy/handbook acknowledgement and electronic signature functionality Plan, execute new hire benefits Facilitate Open Enrollment Streamline online open enrollment with customized workflow and tracking Manage high volume, complex enrollments with fewer resources Enable Your Employees (Employee and Manager Self Service) Easy access to HR data and tasks for your employees—anywhere, anytime from any device Instant access to reports, timesheets and time off requests for your managers