Proposed Changes to COBRA Notice

On May 2, 2014, the Employee Benefits Services Administration (“EBSA”) of the Department of Labor proposed regulations to amend the notice requirements under COBRA. 

COBRA requires employers to provide notice to their employees regarding their eligibility to continue their employer-sponsored health care coverage following a qualifying event, which includes separation from employment.  Eligible employees are permitted to purchase COBRA coverage for a period of time at 102 percent of the cost of the coverage. 

The proposed changes are designed to align the COBA notice requirements with the Affordable Care Act (“ACA”) provisions already in effect and those becoming applicable in the future.  Specifically, the updated notices indicate that former employees who are COBRA-eligible may instead choose to purchase coverage through the ACA’s Health Insurance Marketplace.  This option may provide individuals with lower premiums and financial assistance.

Connell Foley LLP’s labor and employment law attorneys will keep employers informed of the developments of this proposed change.  Please feel free to contact us with any issues your company may be facing related to the new health insurance requirements under federal law.

Practical and Effective Workplace Harassment Prevention Training Is a Must for Employers

EEOC/FTC Issue Guidance on Background Checks

The Equal Employment Opportunity Commission (“EEOC”) and the Federal Trade Commission (“FTC”) issued guidance on utilizing background checks in the employment context.  The publications offer technical assistance to employers on how the agencies’ laws impact the background check process. 

One document, entitled “Background Checks: What Employers Need to Know,” informs employers about steps they must take to gather, use, and dispose of background information legally.  The other document, entitled “Background Checks: What Job Applicants and Employees Should Know,” answers basic questions employees and job applicants might have about their rights during this process.

The publications emphasize that employers are prohibited from engaging in discrimination when conducting and utilizing information gathered from screening procedures.  They also require employers to comply with the Fair Credit Reporting Act (“FCRA”) if the employer uses a third party to compile background information.  They provide examples of best practices for employers to use when screening applicants and employees.

Michael A. Shadiack, a partner in Connell Foley’s Labor and Employment Law practice group, will be giving an in-depth presentation about background checks on June 13, 2014.  For more information or to register for the presentation, please view the event information found on the New Jersey Business & Industry Association’s website.

New York City Sick Leave Law In Effect

On April 1, 2014, the New York City Earned Sick Time Act went into effect.  The law requires private employers to provide paid or unpaid sick leave to its employees who work more than 80 hours per calendar year in New York City.

Under the law, employers with five or more employees are required to provide at least 40 hours of paid sick leave per year to their employees.  Employers with less than five employees must provide at least 40 hours of unpaid sick leave per year.

Employees earn one hour of sick time for every 30 hours worked, up to 40 hours per year.  Employees begin accruing sick time on April 1, 2014 or their first day of employment, whichever is later.  Employers are not required to provide sick leave until July 30, 2014 or until the employee has worked for 120 days, whichever is later.

Employees are permitted to use sick leave for their own or a family member’s illness, medical treatment, or preventive medical care.  Employers are required to give written notice to their existing employees by May 1, 2014 and to their new employees upon commencement of employment.  A copy of the notice can be found here.

Please feel free to contact Connell Foley’s employment law attorneys for guidance on implementing New York City’s sick leave law or any other leave issue you may be facing.

Newark Passes Paid Sick Leave Ordinance

The City of Newark followed Jersey City’s lead as it passed an ordinance mandating certain employers to provide paid sick leave to its employees.  The Sick Leave for Private Employees ordinance requires all private Newark businesses to provide paid sick leave to their employees who work at least 80 hours per year in Newark.

Under the ordinance, employers with 10 or more employees are required to provide at least 40 hours of paid sick leave per year to their employees.  Employers with fewer than 10 employees are required to provide at least 24 hours of paid sick leave per year.  Employees who are child care workers, home health workers, and food service workers are permitted to accrue up to 40 hours of paid sick leave per year, even if the employer has fewer than 10 employees.

Newark employees earn one hour of sick time for every 30 hours worked, up to 40 hours per year.  Employees begin accruing sick time upon their first day of employment, but employers are not required to provide sick leave until the employee has worked for 90 days. 

The ordinance provides that employees may use paid sick time for their own or their family member’s illness.  Employers have the option of determining whether paid sick time may be used in increments of less than one day.  Employers are required to provide written, individual notice to their employees about their rights, and they also must display a poster containing notice of the ordinance.

The ordinance goes into effect on May 29, 2014.  Please feel free to contact Connell Foley’s employment law attorneys for guidance on implementing Newark’s paid sick leave ordinance or any other leave issue you may be facing.

Legislature Contemplates Bill Protecting Jobs During States of Emergency

The New Jersey Legislature is considering a Bill that would prohibit certain employment actions against employees who are affected by a state of emergency.  The Bill defines “state of emergency” as a disaster or emergency, whether natural or man-made, for which either the Governor or a municipal emergency management coordinator declares a state of emergency.

The legislation would prevent employers from discharging or taking any adverse employment action against an employee who is not working due to a state of emergency.  Employers also would be prohibited from requiring the employee to use any sick, vacation, personal, or other leave for the time he or she is not working.  The employer, however, would not be required to pay the employee if he or she is not actively working at the place of business, unless he or she is working remotely.

If an employer were to violate the legislation’s provisions, the Bill would impose a monetary penalty of up to $5000 for the first violation and up to $10,000 for each subsequent violation.  Connell Foley’s labor and employment law attorneys will continue to track this pending legislation.

New EEOC Publications on Religious Garb and Grooming

Last week, the EEOC issued two new publications addressing religious garb and grooming in the workplace.  The guides are designed to provide practical advice to employers and employees regarding the applicable law and case examples.

The publications clarify that Title VII employers must make exceptions to their general dress and grooming policies for those applicants and employees who adhere to religiously-mandated dress and grooming practices.  The publications state, however, that employers need not permit such exceptions if they would pose an undue hardship, such as a safety, security, or health concern.  As set forth in the publications, employers are not permitted to segregate employees based on their religious garb by, for example, assigning an employee to a non-customer contact position.  Moreover, employers cannot engage in disparate treatment, retaliation, or harassment based on religious belief or practice.

Employers may need to update their employee handbooks and workplace policies in order to reflect this new guidance from the EEOC.  Please feel free to contact Connell Foley’s employment law attorneys for assistance in implementing these guidelines and any other workplace policy issue your company may be facing.