State Law Changes

January 20, 2010 Update

No Updates as of January 20, 2010

Unemployment Insurance Law

Alaska's taxable wage base for 2010 will be $34,100. This represents an increase of $1,400 from the 2009 taxable wage base amount of $32,700 (AK ¶2-1700).

Nondiscrimination on State Contracts E.O. No. 2009-09

Governor Janice K. Brewer has signed an Executive Order prohibiting discrimination in state contracts. Executive Order 2009-09 reaffirms the state’s prohibits discrimination on the basis of race, age, color, religion, sex or national origin, and expands rights to Indian tribes and religious organizations under federal law. Executive Order No. 2009-09 supersedes Executive Order 99-4 and amends Executive Order 75-5, signed October 20, effective immediately. Para 3-23,400.

Minimum Wage Law

Effective January 1, 2010, all employers shall pay a minimum wage of $9.79 per hour for work performed by adult and minor employees who work two or more hours per week within the geographic boundaries of the city of San Francisco. The minimum wage is normally adjusted annually based on increases in the regional consumer price index, but will remain the same as the 2009 figure until December 31, 2010 (http://www.sfgov.org/olse/mwo) (CA ¶5-1000).

In other news, Workers United/SEIU have announced that industrial launderer Cintas has agreed to pay $6.5 million to settle a class action lawsuit alleging that it violated the City of Los Angeles Living Wage Ordinance. The union, which represents 70 percent of laundry workers in California, believes the settlement is the largest monetary amount ever paid for alleged violations of a living wage ordinance. Workers filed the lawsuit in 2004.

The settlement provides $3.3 million in back wages and interest for more than 500 Southern California Cintas laundry workers at the company's Ontario, Pico Rivera, and Whittier locations. Cintas will pay an additional $250,000 as penalties, a portion of which will be provided to the State of California for wage and hour enforcement under the Labor Code Private Attorneys General Act (PAGA). In addition to back pay, interest, and penalties, Cintas has agreed to pay more than $2.6 million in legal fees for the five-year class action case. When the settlement is finalized, it will be presented to the Los Angeles Superior Court for approval.

The Los Angeles settlement comes almost one year after Cintas was required to pay almost $1.4 million in back wages, interest and penalties to hundreds of Northern California Cintas workers and the State of California in a case where Cintas was found to have violated the City of Hayward's Living Wage Ordinance (Amaral v Cintas). http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/19/BACQ14QQIC.DTL]

(Source: Workers United/SEIU).

Recordkeeping/Posters Law

The San Francisco minimum wage poster has been updated (CA ¶5-9900).

Unemployment Insurance Law

The UI rate schedule in effect for 2010 will continue to be Schedule F+. This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule F+ provides for UI contribution rates ranging from 1.5% to 6.2%. The taxable wage base for 2010 for UI purposes remains at $7,000. The new employer rate will be 3.4% and the Employment Training Tax rate remains at 0.1% for 2010. Note that the voluntary UI payment program is not in effect in 2010. The SDI taxable wage base for 2010 is $93,316 (CA ¶5-1700).

Whistleblower Protection Law

Definitions in the California Whistleblower Protection Act have been amended (Ch. 452 (A. 567), L. 2009, effective January 1, 2010, at CA ¶5-3600).

Guidelines on Equal Employment Opportunity

The Office of Human Rights and the Commission on Human Rights made amendments to Chapter 5, Employment Guidelines, of Title 4 (Human Rights) of the District of Columbia Municipal Regulations (DCMR). The principal purpose of the amendments was to provide guidelines for the protected category of genetic information and the rights of breastfeeding mothers under the protected category of sex or gender. In addition, a number of technical amendments to other provisions of this chapter were also made. Title 4, Chapter 5, Sections 500 through 599, as amended effective July 31, 2009. Paras 9-20,128.01 through 9-20,128.22.

Unemployment Insurance Law

The taxable wage base in Hawaii for 2010 will be $38,800. This amount is an increase of $25,800 from the 2009 taxable wage base amount of $13,000 (HI ¶12-1700).

Health Insurance Benefit Coverage Law

Governor Pat Quinn has signed a bill into law that will benefit thousands of orthotic and prosthetic users in Illinois covered by private health insurance plans. The law ensures that coverage for orthotic and prosthetic devices is the same as nearly all medical or surgical benefits. In addition, the new law will give more orthotic and prosthetic users access to new, technologically-advanced and well-fitting devices.

The new law pertains to health insurance plans that contain coverage for orthotics or prosthetics (excluding foot orthotics). It amends the Illinois Insurance Code by adding a section requiring those insurance plans to provide coverage that’s on par with “substantially all medical and surgical benefits” covered in that plan. The law pertains to health insurance plans covering orthotics or prosthetics that are issued, renewed or delivered six months after June 1, 2010 (Governor's Press Release, December 13, 2009; H. 2652, L. 2009, at IL ¶14-4000).

A "mixed motive" age bias claim not proven due to lack of direct evidence

Because an employee asserted a “mixed-motive” age bias case under the Iowa Civil Rights Act (ICRA), the burden of persuasion would shift only upon direct evidence that age was a motivating factor in his employer’s decision to demote him, and the ICRA would not be violated if his employer would have taken the same action in the absence of an improper motive. But the employee offered no direct evidence of age bias, so he should have been required to establish that age was a motivating factor in his employer’s decision and that the adverse action would not otherwise have occurred. Gross v FBL Fin Group, Inc (8thCir 2009) 92 EPD ¶42,747.

Blood Donation Leave Rules-State Employees

Classified or unclassified employees who, during regular working hours, donates blood at a licensed blood center certified by the Food and Drug Administration shall receive four (4) hours leave time, with pay, for the purpose of donating and recuperating from the donation. Leave granted shall be used at the time of the donation unless circumstances as specified by the supervisor required the employee to return to work. If the employee returns to work, the unused portion of the leave time shall be credited as compensatory leave. Title 101, Chapter 2, Section 2:102 (11) and Chapter 3, Section 3:105(11), as amended effective Dec. 4, 2009. Paras 18-23,000.01 and 18-23,000.02.

and

Family Leave Rules-State Employees

Classified or unclassified employees shall be entitled to a maximum of twelve (12) weeks of accumulated annual or sick leave, unpaid family and medical leave, or a combination thereof, for the birth, placement, or adoption of a child. If the employee would qualifies for family and medical leave, but has an annual, compensatory or sick leave balance, upon the employee's request, the agency shall permit the employee to reserve ten (10) days of accumulated sick leave and be placed on FMLA leave; or use accrued paid leave concurrently with FMLA leave. Title 101, Chapter 2, Section 2:102(3) and Chapter 3, Section 3:105(3), as amended effective Dec. 4, 2009. Paras 18-22,500.01 and 18-22,500.02.

and

Civil Rights Act

Employers are prohibited to treat an individual affected by pregnancy, childbirth, or a related medical condition differently for any employment-related purpose from another individual who is not so affected but similar in ability or inability to work, without regard to the source of any condition affecting the other individual's ability or inability to work. Chapter 37, Article 2, Section 37.2202, as amended by P.A. 190 (H.B. 4327), L. 2009, effective Dec. 21, 2009. Para 23-20,026.02.

Smoking in the Workplace Law

Governor Jennifer M. Granholm has signed legislation that will prohibit smoking in public places such as restaurants, bars, and hotels, or any place that serves food or beverages.

The Ron M. Davis Law, named after the late chief medical officer of the Michigan Department of Public Health, takes effect May 1, 2010, and will make Michigan the 38th state to ban smoking in public places.

The new law allows exemptions for the gaming floors at the three Detroit casinos, but the other casino bars and eateries must be smoke-free, including the casinos' restaurants and hotels. Michigan's 20 American-Indian casinos are not covered by state law. Cigar bars, tobacco specialty shops, home offices, commercial trucks and motor vehicles are also exempt. Individuals and business owners who violate the law will be subject to penalties of $100 for the first offense and $500 for subsequent offenses (Governor's Press Release, December 18, 2009, to be reported).

Unemployment Insurance Law

The 2010 taxable wage base for New Hampshire will be $10,000, up $2,000 from the previous wage base amount of $8,000. In 2011, the wage base will be $12,000, and it will increase to $14,000 in 2012 (NH ¶30-1700).

Minimum Wage Law

Minimum wage rules have been updated, effective December 21, 2009. Gloucester County living wage information has also been updated (NJ ¶31-1000).

Discrimination in State Employment Based on Gender Identity (E.O. 33)—Topic added.

On December 16, 2009, New York Governor David A. Paterson signed Executive Order (EO) No 33, which prohibits New York state agencies from discriminating against any individual on the basis of gender identity and expression in any matter pertaining to employment by the state. The EO directs the state’s Office of Employee Relations, in consultation with the Executive Director of the Division of Human Rights, to develop and implement clear and consistent guidelines prohibiting gender identity and expression discrimination by all State agencies. Executive Order 33, signed Dec. 16, 2009, effective immediately. Para 33-20,450.

Whistleblower Protection Law

State and local authorities will be prohibited from firing, discharging, demoting, suspending, threatening, harassing or discriminating against an employee because of the employee's role as a whistleblower, insofar as the actions taken by the employee are legal. The director of the authorities’ budget office, after consultation with the state attorney general, is to develop and recommend to the legislature a program that will include (1) evaluating and commenting on whistleblower access and assistance programs and policies by state and local authorities; (2) establishing toll-free telephone numbers and facsimile lines available to employees at state and local authorities; (3) offering advice on employee rights under state and federal laws and advice and options to all persons; and (4) offering an opportunity for employees of state and local authorities to identify concerns regarding issues at a state or local authority. Communications between employees and the authorities’ budget office are to be kept confidential unless the employee waives the right to confidentiality in writing (A. 2209, L. 2009, effective February 9, 2010, and A. 12, L. 2009, effective March 1, 2010, at NY ¶33-3600).

COBRA Law

New York has created a temporary, special enrollment period for certain employees or group health plan members who have exhausted their rights to continuation coverage under COBRA or under New York’s mini-COBRA law. The special enrollment period, available for those whose rights to continuation coverage ended between July 1 and November 1, 2009, generally lasts for 60 days following the receipt of notice of the new enrollment period. If notice is not received, then the special enrollment period is extended for six months from the effective date of the provision (or until May 19, 2010). Employees or members who extend coverage are entitled to a total of 36 months of continuation coverage, including any previously exhausted period of continuation coverage. Note that this provision expires as of July 1, 2010 (Ch. 498 (S. 6), L. 2009, at NY ¶33-4200).

Sexual Orientation Discrimination Law

New York Governor David A. Paterson has signed Executive Order (EO) No. 33, which prohibits New York state agencies from discriminating against any individual on the basis of gender identity and expression in any matter pertaining to employment by the state. The EO directs the state’s Office of Employee Relations, in consultation with the Executive Director of the Division of Human Rights, to develop and implement clear and consistent guidelines prohibiting gender identity and expression discrimination by all state agencies (NY ¶33-3100).

Unemployment Insurance Law

The 2010 taxable wage base in North Carolina will be $19,700, up from $19,300 in 2009 (NC ¶34-1700).

Unemployment Insurance Law

The state experience factor for 2010 is 42%, and no conditional factor is in effect. Therefore, rates for 2010 range from 0.1% to 5.5%. The new employer rate for 2010 is 1.0%. The maximum weekly benefit amount in Oklahoma for 2010 is $430. The minimum amount remains $16 (OK ¶37-1700).

Discrimination in Contract Rights Law

The Rhode Island legislature on January 5th voted to override the governor’s veto of legislation expanding the statute of limitations up to three years to file civil rights violations under the state’s civil rights act. Based on a federal law providing victims of employment and contractual discrimination, it was believed that victims were allowed three years after the incident to file suit. However, in 2007, the Rhode Island Supreme Court issued a 3-2 decision stating that claims under the act are subject to a statute of limitations of just one year. Under, H.B. 5135, L. 2009 and Ch. 368 (S.B. 162), L. 2009, which are effective immediately, people filing suit under the Rhode Island Civil Rights Act have a three-year statute of limitations. Title 28, Chapter 5, Section 42-112-2, as amended by H.B. 5135, L. 2009 and Ch. 368 (S.B. 162), L. 2009, and effective Jan. 5, 2010. Para 41-20,026.02.

Preemployment Inquiries Law

Criminal background checks of persons seeking employment at adult supportive care homes shall be conducted in accordance with the standards and procedures contained in Secs. 23-17.4-27, 23-17.4-28 and 23-17.4-30 of the Rhode Island General Laws (Ch. 290 (S. 543), L. 2009, at RI ¶41-9000).

Temporary Employee Protection Act

The Rhode Island governor’s veto on amendments the "The Temporary Employee Protection Act" was overridden by the Legislature on January 5th. Chapter 377 (S.B. 1054), L. 2009, requires the employment agency of temporary employees to provide notification of new job descriptions, potential job hazards, anticipated pay rates, benefits and work schedules. The law also provides that any employment agency determined by the department to have committed a second violation within five years of the first violation, shall be subject to a $500 fine; a third or subsequent violation within five years of a previous violation, shall be subject to a fine of $1,000; and a violation occurring more than five years from the date of a previous violation shall be considered a first violation. Title 28, Chapter 6.10, Sections 28-6.10-3 and 28-6.10-4, as amended by Ch. 377 (S.B. 1054), L. 2009, effective Jan. 5, 2010. Paras 41-21,550.03 and 41-21,550.04.

and

Unemployment Insurance Law

The taxable wage base in Rhode Island for unemployment insurance purposes will be $19,000 in 2010, up $1,000 from the 2009 taxable base amount of $18,000. The Temporary Disability Insurance (TDI) taxable wage base for 2010 will rise to $57,900, up $1,900 from the 2009 amount of $56,000 (RI ¶41-1700).

Criminal Background Checks Rules

The rule regarding required reports of arrests and background check policies for non-licensed education employees was amended to provide new language clarifying that the Utah State Office of Education (USOE) will review background check information only for licensed educators. New definitions used within the new language have also been added to the rule. Rule 277-516, Sections R277-516-1, R277-516-4, R277-516-5, and R277-516-7, as amended effective Dec. 8, 2009. Paras 46-23,650.11, 46-23,650.14, 46-23,650.15, and 46-23,650.17.

Recordkeeping/Posters Law

The state's unemployment insurance poster has been added to the summary. Also, the Vermont Healthcare Whistleblower's Protection Act poster has been added (VT ¶47-9900).

Unemployment Insurance Law

The law now provides that for the period January 1, 2010, through December 31, 2010, the term “wages” will not include that part of remuneration over $10,000 which was paid during the calendar year (VT ¶47-1700).

Fair Employment Act

The law protecting employees from employment discrimination and retaliation for filing a complaint or attempting to enforce a protected right or for testifying or assisting in any action or proceeding to enforce the law is amended to extended such protections to those employees who are employed as part of traveling sales crews. Title 13, Chapter 111, Subchapter II, Section 111.322, as amended by Act 3 (S.B. 4), L. 2009, effective April 1, 2010. Para 52-20,025.322.

Holiday and Vacation Law

June 19, for observation of Juneteenth Day, is now a legal holiday in the state. Also, whenever a legal holiday falls on a Sunday, the succeeding Monday shall be the legal holiday (Act 91 (S. 170), L. 2009, enacted December 15, 2009, at WI ¶51-7400).

Plant Closing Law

Wisconsin law requiring 60 days’ notice of business closings and mass layoffs has been amended to also require that the notice to an affected employee must also include contact information for the local workforce development board serving the area in which the employment site is located and, if available, the list of resources prepared under Sec. 106.11 (Act 87 (A. 266), L. 2009, effective December 16, 2009, at WI ¶51-3500).