State Law Changes

February 28, 2007 Update

Criminal Background Checks Rules

The Department of Health and Social Services has adopted rules regarding procedures dealing with barrier crimes and conditions, criminal history checks, and the centralized registry. Title 7, Chapter 10, Article 3, Sections 7 AAC 10.900 through 7 AAC 10.990, as adopted effective Feb. 9, 2007. ¶2-23,650.21 through ¶2-23,650.34.

Minimum Wage Law

Arizona Attorney General Terry Goddard has issued an opinion stating that developmentally disabled workers are not exempt from the state's new minimum wage that voters approved last November in Proposition 202 (Office of Attorney General Terry Goddard, Press Release, February 7, 2007; AttyGenOp #I07-002 (R06-039), at AZ ¶3-1000).

Additionally, emergency minimum wage rules of the Arizona Industrial Commission are now in effect. Adopted effective January 25, 2007, these emergency rules are valid for six months and can be extended an additional six months. Emergency rulemaking was deemed necessary by the Commission to implement the new state minimum wage law that became effective January 1, 2007 (Arizona Administrative Code, R20-5-1201 - R20-5-1220).

The minimum wage rules define relevant terms and identify nonexclusive factors for determining an employment relationship; provide criteria for calculation of the minimum wage, including treatment of commissions, tips, tools, equipment, uniforms, and board and lodging; implement posting and recordkeeping requirements; establish requirements for filing administrative complaints; address hearing procedures; address procedures for collection of money, assessment of civil penalties, and informal resolution of disputes; and provide a mechanism for small employers to request relief from certain recordkeeping requirements. The process of adopting permanent rules is expected to begin shortly, with an opportunity for public comment (AZ ¶3-1000).

Minimum Wage Law

The City of Pine Bluff has enacted a living wage ordinance, effective February 15, 2007 (AR ¶4-1000).

Recordkeeping/Posters Law

The state has updated the following posters: restaurant and hotel restaurant occupations wage order (English); mercantile trade wage order; and notice for the employment of minors in mercantile/retail trades (CT ¶7-9900).

Workers’ Compensation Law

Delaware has amended its workers’ compensation law. The state will allow total or partial disability workers’ compensation benefits to be suspended by agreement or order during the period of imprisonment if the employee is incarcerated by a state or federal penal institution following a criminal conviction. The new law also clarifies the workers’ compensation obligations of contractors and independent contractors. Independent contractors must be insured either via purchase of their own insurance or by coverage by the general contractor. The state has formalized a premium discount credit program for qualifying employers that adopt a workplace safety program and pay $3,161 or more in annual workers’ compensation insurance premium.

The legislature intends that any cost savings realized as a result of the reforms should be reflected in insurance premium changes. Other new features include adoption of a health care cost containment program, development of standards for billing and payment of health care expenses and creation of health care practice guidelines. Self-insured employees can obtain restitution in cases of insurance fraud. Attorney fee agreements must be written. The law offers new guidance for computing wages of employees with limited work history. Insurance carriers will be required to notify the Department of Labor when insurance coverage has been cancelled (S. 1, L. 2007, at DE ¶8-4300).

Recordkeeping/Posters Law

The state has updated its minimum wage poster (¶12-9900).

Drug Testing Law

Governor James E. Risch has signed an executive order establishing an alcohol and drug-free workplace policy for all state employees (Executive Order No. 2006-42, effective December 22, 2006, at ID ¶13-8600).

Minimum Wage Law

When changes in the Illinois Minimum Wage Law made by S. 1268, L. 2006, take effect on July 1, 2007, starting with an increase in the hourly minimum wage rate to $7.50 for employees ages 18 and over, employers will also be able to pay a reduced wage rate, by up to 50 cents less, for employees ages 18 and over for the first 90 days of employment. On February 8, 2007, legislation was enacted to clarify that this reduced training wage would not apply in the case of a day or temporary laborer who is 18 years of age or older or to an employee who is 18 years of age or older and whose employment is occasional or irregular and of less than 90 days' duration; for these employees, the full minimum wage rate applies (P.A. 94-1102 (H. 3752), L. 2005, enacted February 9, 2007, at IL ¶14-1000).

Unemployment Insurance Law

For calendar year 2007, the adjusted state experience factor is 115%, and the benefit conversion factor remains at 138.4%. Total rates range from 1.0% to 8.2%, including the 0.8% fund building factor in effect for 2007. An employer whose contribution rate is 5.5% or higher and whose total quarterly wages are less than $50,000 pays contributions at 5.4% in that quarter. New employers pay 3.9% for 2007, including the 0.8% fund building rate (IL ¶14-1700).

Unemployment Insurance Law

Rate information has been updated (IN ¶15-1700).

Unemployment Insurance Law

For 2007, Schedule III is in effect, the ratio of the fund balance to total payrolls is 1.710%, and the average required yield on taxable wages is 2.82%. Eligible positive-balance employers pay rates ranging from 0.06% to 4.81%. New employers are assigned rates, based on industry sectors, that range from 4.62% to 5.91%. New construction employers pay 5.91%. Negative-balance employers will pay rates ranging from 5.60% to 7.40%, which include the surcharge amount, for 2007. New rated government employers pay 0.12% this year (KS ¶17-1700).

Recordkeeping/Posters Law

The state has updated its earned income credit poster (LA ¶19-9900).

Unemployment Insurance Law

For calendar year 2007, rates are determined under Table A, and range from 0.3% to 7.5%. New employers pay 2.4% for 2007, except that new construction employers headquartered in another state pay 3.6% (MD ¶21-1700).

Unemployment Insurance Law

Schedule D is in effect in Massachusetts for calendar year 2007. Rates for positive-balance employers under this schedule range from 1.12% to 5.48%, and rates for negative-balance employers range from 6.46% to 10.96%. The solvency assessment rate is 1.19% for 2007. New nonconstruction employers pay 2.53%, and new construction employers pay 7.12% in 2007. The Workforce Training Fund contribution remains at 0.06% of taxable wages (MA ¶22-1700).

Criminal Background Checks Rules

The provision pertaining to collection and dissemination of criminal history record information was amended. Section 9.001, as amended effective Jan. 9, 2007. ¶25-23,651.01.

Health Insurance Benefit Coverage Law

The state has amended its health insurance law with respect to childhood immunization coverage (L.B. 63, L. 2007, at NE ¶28-4000).

Unemployment Insurance Law

For 2007, the combined tax rate for employers in categories 1 through 20 will range from 0.24% to 5.40%. The rate for nonconstruction new employers is 1.60% (category 12). For construction new employers, the rate is 5.40% (category 20) (NE ¶28-1700).

Unemployment Insurance Law

In 2007, contribution rates in Nevada continue to range from 0.25% to 5.4%. These rates do not include the 0.05% Claimant Employment Tax (NV ¶29-1700).

Rules of Practice and Procedure Before Commission for Human Rights

The Commission for Human Rights has revised its rules pertaining to proceedings prior to public adjudicative hearings. Chapter Hum, Sections 101 through 103 and Chapter Hum 200, Sections 201 through 221, as amended and adopted effective Feb. 3, 2007. ¶30-20,125.01 through ¶30-20,125.03 and ¶30-20,126.01 through ¶30-20,126.21. 

Criminal Background Checks Rules

The New Jersey Transit Corporation may require as a condition of employment or contract execution that its prospective employees or commissioned ticket agents to undergo a criminal background check. Title 16, Chapter 79, Sections 16:79-1.1 through 16:79-2.2, as amended by R.2006 D. 444, effective Dec. 18, 2006. ¶31-23,650.01 through ¶31-23,650.04.

Discrimination in Employment Advertising Rule

The examples of prohibited job titles and permissible substitutes contained in N.J.A.C. 13:11-1.3(d), were deleted. The Division on Civil Rights believes that the chart of examples may not be helpful since some terms that have previously been considered prohibited, such as "waiter" and "salesman," are gaining acceptance as gender-neutral terms. Title 13, Chapter 11, Sections 13:11-1.1 through 13:11-1.7, as recodified and amended by R.2007 d.38, effective Feb. 5, 2007. ¶31-20,075.01 through ¶31-20,075.07.

Recordkeeping/Posters Law

The state has amended its law relating to temporary help service firms and transportation services for workers (Ch. 14 (A. 2983), L. 2006, enacted January 24, 2007, at NJ ¶31-9900).

Wage Payment Law

It is an unlawful practice for a temporary help service firm to willfully withhold or divert wages for any purpose not expressly permitted by the state's wage payment law (Ch. 15 (A. 2984), L. 2006, effective January 24, 2007, at NJ ¶31-1200).

Employment of Aliens-State Employment—Topic added.

All State agencies shall, no later than the third working day after the hire, verify the employment eligibility of all employees hired after November 6, 1986. Verification must establish both identity and employment authorization and shall follow the requirements of the IRCA. Title 25, Subchapter 1H, Section .0636, as adopted effective Feb. 1, 2007. ¶34-24,100.01.

Unemployment Insurance Law

Contribution rates for experience-rated employers for 2007 range from 0.4% to 6.6% for positive-balance employers, and from 6.7% to 9.0% for negative-balance employers. The mutualized rate for 2007 is 0.1%. New employers in the construction industry pay a rate of 5.0%, and all other new employers continue to pay a rate of 2.7% in 2007 (OH ¶36-1700).

Bureau of Labor Rules of Administrative Procedure

The BOLI Civil Rights Division clarified the rule that a civil action against a public body alleging an unlawful employment practice must be commenced within one year after the alleged violation unless a complaint has been filed with the Civil Rights Division of BOLI. Chapter 839, Division 3, Section 839-003-0020, as amended effective Oct. 27, 2006. ¶38-20,126.20.

The BOLI Civil Rights Division amended the “discrimination theories’’ to incorporate the new standard for accommodation of religious beliefs found in recent Oregon court cases. Employers must accommodate an employee's religious belief, observance or practice unless it would cause undue hardship to the employer. Chapter 839, Division 5, Section 839-005-0010, as amended effective Feb. 2, 2007. ¶38-20,127.10.

The BOLI Civil Rights Division amended the sexual harassment rule to clarify the list of alternate requirements defining types of conduct qualifying as sexual harassment. Chapter 839, Division 5 Section 839-005-0030, as amended effective Jan. 3, 2007. ¶38-20,127.30.

The BOLI Civil Rights Division disability rules were amended to clarify definitions. Chapter 839, Division 6 Section 839-006-0205 and 839-006-0206, as amended effective Feb. 1, 2007. ¶38-20,129.205 and ¶38-20,129.206.

Criminal Background Checks Rules

The Department of Administrative Services has adopted rules pertaining to processing and availability of criminal background checks of employees, volunteers, contractors or vendors. Chapter 125, Division 7, Sections 125-007-0200 through 125-007-0330, as amended by DAS 9-2006, effective Dec. 28, 2006. ¶38-23,654.01 through ¶38-23,654.14.

Family, Medical and Parental Leaves Law

The Oregon Bureau of Labor and Industries has amended its family leave rules with respect to workers' compensation leave and employee notice (OR ¶38-7000).

Family Medical Leave Rules

The amendments provide that an employer having reason to believe an employee's continung absence following OFLA leave may also qualify as OFLA leave, may not treat the absence as unauthorized unless the employer requests additional information to determine whether the absence is OFLA qualifying. Chapter 839, Division 9, Section 830-009-0250, as amended effective Jan. 17, 2007. ¶38-22,500.05.

Existing OFLA rules allow an employer or employee to run Worker's Compensation leave concurrently with OFLA leave for the same health condition. The rule was amended to conforming OFLA with ORS 656.240, providing that an employer may only apply a limited amount of sick leave when an employee is on Worker's Compensation leave. Chapter 839, Division 9, Section 830-009-0280, as amended effective Jan. 3, 2007. ¶38-22,500.08.

Unemployment Insurance Law

The UI rate schedule in effect for 2007 is Tax Schedule III. Schedule III provides for contribution rates ranging from 0.9% to 5.4%, with a base rate of 3.0% (OR ¶38-1700).

Fair Employment Practices Law

Puerto Rico now prohibits employment discrimination on the basis of an employee being a victim of, or being perceived as a victim of, domestic violence, sexual aggression, or stalking (Act #271 (S. 1522), L. 2006, enacted December 17, 2006, at PR ¶40-2500).

The act was amended to prohibit discrimination in the work-place by reason of being a victim or being perceived as a victim of domestic violence, sexual aggression or stalking. Title 29, Part I, Chapter 7, Sections 146 through 148 and 151, as Act 271 (S.B. 1522), L. 2006, effective Dec. 17, 2006. ¶40-20,025.06 through ¶40-20,025.08 and ¶40-20,025.11.

Sexual Harassment Law

The Puerto Rico Legislature has amended the sexual harassment law to specify that the use of the internet network or electronic mail is prohibited with regard to conduct that constitutes sexual harassment. Virtual sexual harassment is that communication, conduct or expression which flows by means of telecommunication or work tools that use computerized means and others that are similar in the business world and that cause a hostile work environment for a persons or persons related with the enterprise. Title 29, Part I, Chapter 7, Section 155b, as amended by Act 252 (H.B. 223), L. 2006, effective Nov. 30, 2006. ¶40-21,550.03.

Marital Status Discrimination Law

On February 20, 2007, Attorney General Patrick C. Lynch issued his Office's opinion that Rhode Island will recognize a same-sex marriage lawfully performed in Massachusetts as a marriage in Rhode Island (State of Rhode Island Department of the Attorney General Press Release; 2007-02-20), at RI ¶41-3200).

Unemployment Insurance Law

Rates for 2007 will be determined under Schedule I. All the rates in this schedule are reduced by 0.21% in order to offset the 0.21% Job Development Assessment. Rates for 2007 thus range from 1.69% to 9.79%. The new employer rate for 2007 is 2.62% (RI ¶41-1700).

Military and Emergency Services Leave Law

The state has amended its military leave law by changing reference to the Soldiers and Sailors Civil Relief Act to the Servicemembers Civil Relief Act (H. 1003, L. 2007, at SD ¶43-7200).

Preemployment Inquiries Law

The state has amended its background check law with respect to child welfare agency employment applicants (H. 1078, L. 2007, at SD ¶43-9000).

Procedural Rules of the Texas Workforce Commission, Civil Rights Division

Parties involved in an allegation filed with Civil Rights Division may obtain copies of all items in the file relating to their claim but that reasonable access does not include documents in the file that may be deemed confidential under the Public Information Act or investigator notes. The restricted access to confidential information will allow for more complete investigations and is consistent with the Commission's Memorandum of Understanding with EEOC. Title 40, Part 20, Chapter 819, Subchapter F, Section 819.92, as amended effective Feb. 12, 2007. 45-20,125K.02.

Unemployment Insurance Law

For 2007, the fund balance factor is 60%, and there is a pool cost charge of 0.07% and a fund building charge of 0.0%. As a result, rates range from 0.17% to 6.27%. New employers pay 2.57%, and out-of-state contractors of buildings and/or roads pay 6.27%. All rates include the pool cost charge (VA  ¶48-1700).

Parental Leave Rules

State Employees—The definition of "child" was amended because the current definition is identical to the definition of "minor/dependent child." The definition "minor/dependent" to added to clarify that the definition should be looked at. Title 357, Chapter 357-31, Section 357-31-460, as amended effective Feb. 15, 2007. ¶50-22,501.01.

Recordkeeping/Posters Law

The state has updated its minimum wage poster (WA ¶49-9900).

Unemployment Insurance Law

Rate information has been updated (WV ¶50-1700).

Unemployment Insurance Law

For 2007, Schedule B is in effect. Rates under Schedule B range from 0.0% to 8.9%. In addition, the rate for newly liable construction employers with payrolls of $500,000 and over is 6.6%, and the rate for newly liable construction employers with payrolls of under $500,000 is 6.6% for 2007. The general new employer rate in 2007 for employers with payrolls of $500,000 and over is 3.4%, and the general new employer rate for employers with payrolls of under $500,000 is 3.25% (WI ¶51-1700).

Criminal Background Checks Law

Wyoming's Criminal History Record Act governs all systems of records for the collection, maintenance, use and dissemination of individually identifiable criminal history record information by any criminal justice agency. Title 7, Chapter 19, Article 1, Section 7-19-106, as amended by Act 11 (S.B. 10), L. 2007, effective July 1, 2007. ¶53-23,601.06.

Provisions pertaining to the processing and acquiring of state or national criminal history information were amended. Title 7, Chapter 19, Article 2, Section 7-19-201, as amended by Act 11 (S.B. 10), L. 2007, effective July 1, 2007. ¶53-23,601.21.

Military and Emergency Services Leave Law

The state has specifically extended employment protection to employees of community colleges on military leave, effective July 1, 2007 (Ch. 23 (H. 18), L. 2007, enacted February 15, 2007, at WY ¶52-7200).

Preemployment Inquiries Law

Effective July 1, 2007, the state will require fingerprinting and background checks for military department employment applicants and volunteers (WY ¶52-9000).

Also, effective February 23, 2007, the state requires specified department of audit employees and applicants to submit to fingerprinting and background checks (Ch. 107 (S. 141), L. 2007, at WY ¶52-9000).

Unemployment Insurance Law

For 2007, experience-rated employers pay rates ranging from 0.47% to 8.97%. Note that any delinquent employer is assessed 2.0% plus the assignable basic rate, the total of which may not exceed 8.97% for 2007. New employers pay the following rates by industry classification for 2007: raw materials and energy production, 1.61%; goods production, 2.62%; distribution and transportation of goods, 1.47%; information, 1.47%; finance, insurance, real estate, and rental and leasing, 1.47%; professional and business services, 1.47%; education, health and social assistance, 1.47%; leisure, accommodation, and food services, 1.52%; other services (except public administration), 1.47%; public administration, 1.47%; and unclassified employers, 2.58% (WY ¶52-1700).