There has been quite a lot of activity and proposed changes at the federal level in regards to employment law and regulations. This is creating major impacts on pretty much everyone including employees, federal contractors and companies of all sizes. It can be overwhelming at times and tough to keep up with, so we have put together a very brief overview of just a few of the most recent topics for employers to be aware of and keep their eye on as things progress:

Minimum Wage – There continues to be discussion around the President’s proposal of raising the federal minimum wage from the current rate of $7.25 to $10.10, over a period of time and in a 3-step process. There are currently over a dozen states that already have a minimum wage rate that is higher than the current federal rate, with Maryland being the most recent state (after Connecticut) to raise the state minimum wage to $10.10 per hour. This process will be a gradual one over a period of about 3 1/2 years with slight increases at each stage of the process. Reminder: When there is a difference between the federal and state minimum wage rate, the employee is entitled to the higher wage rate.

Weekly Pay Threshold for Overtime Purposes – The President has directed the Secretary of Labor to get started on the process of adjusting the weekly base salary for employees that are classified as Exempt under the Fair Labor Standards Act. Currently, to qualify for an exemption from being paid overtime for time worked over 40 hours in a workweek, employees must meet certain criteria as it relates to their job duties and be paid a minimum salary of $455 a week. When the $455 amount is raised, those workers currently at that rate or below the new rate will be eligible for overtime pay.

Paycheck Fairness Act – This proposed legislation did not pass in the Senate but is planned to be re-introduced later this year. This Paycheck Fairness Act goes hand in hand with the Equal Pay Act, which essentially “requires men and women be given equal pay for equal work in a given establishment.” If passed, the Paycheck Fairness Act would make it easier for employees to pursue class action lawsuits in instances of pay discrimination, it would prohibit employers from retaliating against employees who disclose or discuss salary information, and it would allow the Equal Employment Opportunity Commission to require employers to submit employee pay data identified by race, sex and national origin for discrimination testing and push more employers to justify any discrepancies in pay.

Federal Contractors – On February 12, President Obama signed an Executive Order increasing the minimum wage to $10.10 per hour. On April 8, he modified Executive Order 11246 to prohibit discrimination or retaliation against “any employee or applicant because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant.” The thought here is that this will help expose any unlawful or discriminatory pay practices and allow for correction, as similarly proposed in the Paycheck Fairness Act. Additionally, on that same day, the President issued a memo for proposed regulation requiring federal contractors and subcontractors to submit employee pay, race and gender data to the Office of Federal Contractor Compliance Programs (OFCCP).

Social Media and the Workplace – The EEOC recently held a meeting regarding the use of social media by employers, employees and potential candidates during the recruiting and hiring process. There will probably be guidelines released in the near future from the EEOC regarding employers requesting passwords from employees for their social media accounts (which is NOT recommended for employers to do and is unlawful in a handful of states), employees use of social media sites and the potential liability for the employer if the employees is engaging in inappropriate social media use or conversation with company equipment or resources and the inappropriate use of information found on a candidates social media site during the recruiting process, among other issues. The National Labor Relations Board (NLRB) is already a heavy hitter in directing employers on what is and is not acceptable when it comes to social media in the workplace, but now the EEOC is joining in to protect both the employee from discriminatory practices and the employer potential liabilities.

Again, these are just a few of the many things that are being proposed and are either currently in the works or have the potential to have a big impact on employment in the near future.  For additional information related about these changes and how it is applicable to your specific organization, please feel free to reach out to Employers Advantage LLC or you can visit the Equal Employment Opportunity Commission website at www.eeoc.gov, the Department of Labor at www.dol.gov or you can read more about the Presidential Memos related to these topics at www.whitehouse.gov.

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