A look back at 2019, to look ahead to 2020
As we gear up for 2020, let's briefly review significant legislative changes that impacted our workplaces in 2019.
Overtime Rules Released: On Jan. 1, 2020, the U.S. Department of Labor's long-awaited overtime rule on the FLSA exemption for executive, administrative, professional, outside sales, and computer employees (also known as the "white collar" exemptions) went into effect. The final rule raises the standard salary threshold from $455 to $684 a week ($35,568 for a full-year worker).
EEO Pay Data: In 2019, EEO-1 filers submitted additional pay data (Component 2 data) for calendar year 2017 and 2018. The Equal Employment Opportunity Commission (EEOC) announced that it will no longer require employers to produce EEO-1 Component 2 data. The EEOC felt the burden imposed on employers to gather the data outweighed its usefulness.
NLRB activity: Throughout 2019, the National Labor Relations Board (NLRB) reversed many of the previous administrations' decisions on labor-management relations and labor-law compliance. Current NLRB rule changes favor the interests of employers. These developments include election procedures, workplace rules, employer's email usage, independent contractor standards, and more.
Revised W-4: The Internal Revenue Service (IRS) finalized its Form W-4 redesign.
The new form is meant to reduce complexity and increase accuracy of the withholding system.
Only newly hired employees in 2020 or any employee with a prior W-4 who wants to adjust their withholding in 2020 needs to use the redesigned form.
In Illinois:
Recreational marijuana is legal: On Jan. 1, 2020 Illinois became the 11th state to legalize recreational marijuana. Employers retain their right to adopt reasonable drug-free workplace policies concerning drug testing, smoking, consumption, storage, or use of marijuana in the workplace or while on call, provided policies are applied in a nondiscriminatory manner. The law also does not prevent employers from taking adverse action against employees who violate workplace drug policies.
Salary ban: On Sept. 29, 2019, the salary history ban took effect. The new law prohibits Illinois employers from asking for or considering compensation history when making employment decisions or setting compensation.
The new law also ensures that employees can discuss their salary, benefits, or other compensation with colleagues.
Required sexual harassment training: As of Jan. 1, 2020, Illinois employers are required to annually train their employees on the prevention of sexual harassment in the workplace.
The Illinois Department of Human Rights (IDHR) is required to create a free online harassment training program for employers, and free supplemental training to be available specifically for the restaurant and bar industry and tipped employees. In addition, restaurants and bars will be required to provide a written sexual harassment policy to new employees within the first week of employment.
Employers may use the IDHR sexual harassment prevention training (once created) or establish similar training for employees, such as MRA's harassment prevention training.
Minimum wage increase: The federal minimum wage is $7.25/hour and has not increased since 2009. However, minimum wages for federal contractors increased to $10.80/hour on Jan. 1, 2020. Also, at the first of the year, Illinois' minimum wage increased to $9.25/hour (increasing again July 1, 2020 to $10).
We are seeing a trend for companies to be very public in advertising their higher minimum wages to attract talent.
Joint employer clarity: The NLRB and Department of Labor (DOL) are working to clarify joint employer situations. According to the DOL, the goal is to "reduce uncertainty over joint-employer status and clarify for workers who is responsible for their employment protections." To limit liability, companies relying on staffing vendors must continue to clearly establish who is in direct and indirect control of the employees.
DOT-regulated employers' clearinghouse: The U.S. Department of Transportation (DOT)'s Federal Motor Carrier Safety Administration (FMCSA) developed a drug and alcohol clearinghouse operational January 6, 2020. Information maintained in the clearinghouse ensures that DOT-regulated drivers who commit a drug or alcohol violation while working for another employer, or who attempt to find work with another employer, do not perform safety-sensitive functions until completing the return-to-duty process.
Welcome 2020! If you have questions, call the MRA HR Hotline (866) 474-6854 or email infonow@mranet.org.
• Michael Hyatt is HR Government Affairs Director and Selena Castle, HR Business Partner at MRA - The Management Association. Contact him at michael.hyatt@mranet.org.