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TRANSCRIPT
Hot Topics in Employer Compliance
Presented by
Al Vreeland, Donna Brooks, Mike Green and Matthew Cannova
November 13, 2012
Copyright 2012 Lehr Middlebrooks & Vreeland, P.C. All rights reserved. Reproduction or use of these materials, including for in-house training, without authorization of the authors is prohibited.
NLRB
• Facebook = “Concerted Activity”
• No blanket rule against posting negative comments about employer
• No rule which would chill employee’s posting about terms and conditions
• Savings clause may work
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FTC Guidelines on Endorsements
• “Truth in Advertising” applies
• Must disclose if compensated
• Must disclose employer if its products or services involved
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Privacy in Social Media
“Rapid changes in the dynamics of communication and information transmission
are evident not just in the technology itself but in what society accepts as proper
behavior… [M]any employers expect or at least tolerate personal use of such
equipment by employees because it often increases worker efficiency…
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Privacy (cont.)
…At present, it is uncertain how workplace norms, and the law’s treatment of them,
will evolve.”
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GINA
• Prohibits employers from “acquiring” Genetic Information
• Including genetically predisposed diseases (e.g. heart disease, diabetes)
• Regulations apply the “water cooler exceptions” to social media
• But must be given permission (e.g. “friended”)
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Employer Policy Considerations
• Set privacy expectations
• Ensure the policy applies to all technology (not just e-mail)
• Evaluate the degree off-work activity may impact work
• Consider supervisor participation networking sites (e.g. friending employees)
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Looking Ahead
• Nature of audits – Prolonged warfare – Expensive – More, and more technical violations
• Proposed regulations regarding vets and disabled
• Relationship between OFCCP and Congress • Healthcare coverage • NRC NAS Report on Compensation
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Do You Need Them?
• Pros: – Protecting proprietary information
– Guarding key relationships
– Discouraging defections
• Cons: – Employee morale – Obstacles to recruiting
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Are They Enforceable?
• Does the employee have something worth protecting?
• Does the agreement go too far?
• Did either party behave badly?
• Can the employee pay his bills?
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Is It Worth Enforcing?
• Costs – to everyone involved
• Sending a message to other employees
• Sending a message to competitors
• Danger of bad result
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Details, Details
• One-size does not fit all
• Time and geography
• Jurisdiction and forum selection
• Garden-time
• Fee shifting
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Overview
• Uniformed Services Employment and Reemployments Rights Act of 1994 (USERRA) – Protects employees in the uniformed services from
discrimination and retaliation in employment based on their participation in the uniformed services (covers all employers, public and private, no matter their size)
• Are employees covered for voluntary service? Yes – “Service in the uniformed services” covers “all categories
of military training and service, including duty performed on a voluntary or involuntary basis, in time of peace or war.”
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Overview (cont.)
• Is there any way to deny reinstatement? Yes – Must notify the employer in advance (verbal or written),
must be reasonable under the circumstances (generally, at least 30 days)
– Eligible if advanced notice, 5 years or less of uniformed service in employment with employer, timely reapplies, no BCD/OTH discharge
– Affirmative Defenses - An employer’s burden to show: employer’s changed circumstances, an undue hardship on the employer, or employment position was for a brief, non-recurrent period and no reasonable expectation that employment would continue for a significant period
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Overview (cont.)
• What is a “timely” reapplication for employment? – Less than 31 days: first full regularly-scheduled work
period on the first full calendar day following eight hours after returning home
– More than 30 days, but less than 181 days: must submit application for reemployment (written or verbal) within 14 days of completing service
– More than 180 days: must submit application for reemployment (written or verbal) within 90 days of completing service
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Overview (cont.)
• Can I require the service member to use PTO? No
• “Employer” includes “successors in interest” – whether or not successor is aware of employee protected by USERRA
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Resources
• www.dol.gov – USERRA compliance assistance materials, including: – Employment Law Guide – Uniformed Service
Members – Fact Sheets – E-Tools (USERRA Advisor)
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• Duration of the employment relationship, plus an additional 6 years. Good Rule of Thumb
• Safety and toxic chemical exposure records, which must be kept for 30 years after the termination of the employment relationship
This satisfies the requirements of every record-retention law
except:
• Hiring • Employment Relationship • Termination.
Three General Categories of
Recordkeeping:
Recordkeeping Basics
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Three Categories of Records
HIRING TERMINATION
• Job Postings • Job Applications • Interviews • Offer Letter • Conducting Reference
and Background Checks
• I-9 Verification of Authorization to Work
• Drug/Alcohol Testing and Physical Exams
• Employee Handbook Acknowledgment
• Employee Personnel File • Payroll and Other
Compensation Records • Benefit Records • Vacation, Sick Time and
Other Time-Off Records • Personnel Management
Records: Promotion, Transfers and Disciplinary Reports
• Reductions in Force
• WARN Notice records
• Separation and Release Agreements
• COBRA Records
HIRING EMPLOYMENT RELATIONSHIP TERMINATION
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Tips for Better Recordkeeping 1. Written policy
• Should include: – What documents are to be created and by whom; – What records are to be retained, for how long and by whom;
– Where those records are to be stored.
• Devote the time and resources to implement the policy. • Train managers about the recordkeeping policy.
– Managers’ notes
2. Electronic vs. paper records 3. Method to retrieve
• Create a map or index to retrieve the records when necessary. 4. Records required to be kept separately
• Various laws require that medical records be kept separate from an employee’s personnel file.
5. Potential consequences of inadequate recordkeeping
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• Age Discrimination in Employment Act (ADEA)
• ADEA Amendment—Older Workers Benefit Protection Act (OWBPA)
• Americans with Disabilities Act (ADA)
• Civil Rights Act of 1964, as Amended in 1991 (Title VII)
• Consolidated Omnibus Budget Reconciliation Act (COBRA)
• Davis-Bacon Act
• Employee Polygraph Protection Act
• Employee Retirement Income Security Act (ERISA)
• Equal Pay Act (EPA)
• Equal Employment Opportunity Form (EEO-1)
• Executive Order 11246/Office of Federal Contract Compliance Programs (OFCCP)
• Fair Labor Standards Act (FLSA)
• FLSA/Equal Pay Act
• FLSA/Tipped Employees
Important Statues with Record Retention Requirements
• Family and Medical Leave Act (FMLA) • Federal Unemployment Tax Act (FUTA)
• Freedom of Information Act (FOIA)/Privacy Act
• Health Information Privacy (Health Insurance Portability and Accountability Act - HIPAA)
• Homeworker Regulations (FLSA)
• Immigration Reform and Control Act (IRCA)
• Internal Revenue Service (IRS) Regulations
• Occupational Safety and Health Administration (OSHA)
• Personal Responsibility and Worker Opportunity Reconciliation Act of 1996
• Rehabilitation Act of 1973
• Social Security Act (Federal Insurance Contributions Act - FICA)
• FICA: Tipped Employees
• Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA)
• Walsh-Healy Public Contracts Act 27
Form 5500 Basics • The Form 5500 reports information about the plan, its finances, its operation, and
participant counts. • This information is used by the U.S. Department of Labor, the Internal Revenue
Service (IRS), other government agencies, organizations, and the public. • Participants and beneficiaries can receive a copy of the Form 5500 upon request
from the plan.
Type of Information
• Form 5500 records must be maintained for not less than six years.
Record Retention
• U.S. Department of Labor (DOL) To Whom
• Within seven months after the end of the Plan Year • A 2-1/2 month extension is available by filing a Form
5558. When
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How to File
• Generally must be filed electronically. • Form 5500-SF
– Most small business retirement plans with fewer than 100 participants may complete and file Form 5500-SF electronically.
– (Only one-participant plan administrators may choose to complete the paper Form 5500-EZ.)
• Form 5500 – Must be completed by plans with 100 or more
participants. – It may only be completed and filed electronically.
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Plan Qualification
• Importance: Tax deductions
• Basic requirements for qualified plans
• Nondiscrimination and HCEs
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Writs of Garnishment – Employer Obligations
• What is a Writ of Garnishment? • Answer the Writ
– File your Answer with the court – Under oath – Within 30 days of service of Writ (in AL)
• Contents of Answer • Begin withholding • Failure to Answer • Writs of Garnishment from another state
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“Disposable Earnings” • The amount which
remains after deductions “required by law” have been made. • “Required by Law” –
• FICA, Social Security, other taxes (state, local, etc.), and Child Support.
State and Federal Exemptions • Exemptions allow for
garnishment of the LESSER amount of … • 25% of disposable earnings
OR • Amount by which disposable
earnings for the week exceed 30 times federal minimum wage
Pay Money into the Court
• Within 30 days after first withholding
• Every 30 days thereafter until satisfied
Processing the Garnishment
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Discharge the Employee • General Rule: Employers may not discipline or retaliate
against employees whose wages have been garnished. • Federal Consumer Credit Protection Act (15 U.S.C. § 1674)
• Forbids the discharge of an employee for a garnishment that arises from a single indebtedness.
• $1000 fine, a year's imprisonment or both for violation of the law.
• Potential Title VII Disparate Impact Lawsuit Fail to Answer • Risk being held liable for amount of judgment. • Likely outcome: Judgment for amounts that should have
been garnished to date.
What Employers CANNOT Do
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• Workers’ Compensation benefits constitute “income” and are subject to garnishment.
• Garnishments should be satisfied in the order
received. Notify creditor’s attorney and the court of
multiple garnishments.
Tips for Employers
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Rule 45 Subpoena • May command appearance at a deposition, production of
documents, or both. • Do not have to be a party. • Must allow reasonable time for compliance. • 14 days to object (Federal)
Concerns When Producing Documents • HIPAA, Privilege, Trade Secrets, Undue Burden, etc.
What Employers Should Know About Subpoenas
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