The Colorado Supreme Court recently settled a debate among employers and employees: Are employers required to pay accrued but unused vacation pay to employees upon separation, even if the employer’s policy contains a forfeiture clause? In Nieto v. Clark’s Market, the court answered “yes.” Although this decision only applies to employees who are bringing claims under the Colorado Wage Claim Act, it clears up a longstanding issue that has puzzled employers in the Centennial State for years.
Continue Reading Colorado Supreme Court issues ruling regarding payment of accrued but unused vacation pay at separation

With multiple avenues for expanding a family and a plethora of different family models, employers would be wise to re-consider their parental leave policies to suit the needs of the modern family.

In May, a large multi-national corporation settled a class action lawsuit regarding its parental leave policy for $5 million. As written, the employer’s policy gave its employees who were primary care-givers 16 weeks of paid leave, and gave its employees who were non-primary care-givers only 2 weeks of paid leave. According to the lawsuit, the employer had an unwritten policy that made it almost impossible for men to qualify as a primary caregiver unless the birth mother was unable to care for the baby because she was medically incapable or because she was back at work. Such a policy, even if unwritten, could violate federal and state laws that prohibit employers from making employment decisions on the basis of sex.
Continue Reading Employers should review their parental leave policies in wake of parental leave class action settlement

It has been a decade since the United States Department of Labor (DOL) made any changes to the FMLA regulations, but we now have an indication that the DOL is at least willing to consider issuing new regulations at some point in the next few years. The United States Office of Management and Budget announced

Michigan’s Paid Medical Leave Act (PMLA) goes into effect on March 29, 2019. It requires a number of new practices for employers operating in Michigan, including revision of written policies and posting notice to employees. Below are some highlights of the PMLA about which employers in Michigan should be aware:

Who does the law cover?

Employers covered by the PMLA are those that employ 50 or more persons. What is unclear is whether an employer’s employees who work outside of Michigan would count for purposes of determining whether the employer is covered by the PMLA. Unless the sate provides clarity on the question, multi-state employers with more than 50 employees nationwide, but less than 50 employees in Michigan, will need to weigh the risks – those who choose not to comply with the law may find themselves in violation and subject to penalties.
Continue Reading Michigan Paid Medical Leave Act: Are you ready?

In many employment cases, the parties engage in a battle over content in the plaintiff’s private social media accounts. The recent decision from the U.S. District Court in Eastern District of Michigan in Robinson v. MGM Grand Detroit, LLC, Case No. 17-CV-13128 (E.D. Mich. 1/17/2019) illustrates well how an employer can demonstrate its right

The federal Tax Cuts and Jobs Act of 2017 contains an often-overlooked tax credit for employers that provide qualifying types of paid leave to their full- and part-time employees. The credit is available to any employer, regardless of size, if:

  • The employer provides at least 2 weeks of paid family and medical leave annually for employees who have been with the company for at least 12 months
  • The paid leave is at least 50 percent of the wages normally paid to the employee

The IRS has issued a set of frequently asked questions and a notice to help employers understand the tax credit, which is only available for wages paid in 2018 and 2019. The notice, entitled Notice 2018-71, is effective as of Sept. 24, 2018, and similarly only applies to wages paid in 2018 and 2019. Here are some of its highlights:
Continue Reading New tax credit rewards companies that offer paid FMLA leave in 2018 and 2019

As we previously reported in the post “The return of Department of Labor Opinion Letters,” the U.S. Department of Labor (DOL) began issuing opinion letters again in mid-2017 after a six-plus-year hiatus. On April 12, 2018, the DOL issued an opinion letter, FLSA 2018-19, regarding when FMLA-mandated breaks for intermittent leave for an employee’s serious health condition are paid and when they are unpaid.
Continue Reading New DOL opinion letter may provide clarity as to when FMLA-mandated breaks are paid and when they are unpaid

A recent case highlights the intersection of FMLA and workers’ compensation laws. Angela Samuel (Samuel) was employed by Progressive Casualty Insurance Co. (Progressive) as a retention specialist and primarily worked out of her home. While on a leave of absence covered by the Family Medical Leave Act (FMLA), Progressive notified Samuel that she needed to submit documentation in support of her FMLA request. Previously, Samuel’s documents in support of her FMLA leave were either never received or misplaced by Progressive.

On a Sunday evening, Samuel hand-delivered the paperwork to an unattended reception desk outside of a human resources department at a building on Progressive’s campus. As she was leaving, she slipped in a stairway and fell onto her right side.Continue Reading Sunday deliveries of FMLA paperwork: A recipe for disaster

A special thanks to Adam Bennett for his work on this article.

The U.S. Department of Labor recently released its final rule requiring federal contractors and subcontractors to provide their employees with at least seven days of paid sick leave each year. The final rules were published on Friday, Sept. 30 and will go into effect 60 days after publication (Nov. 29, 2016). Despite the “effective date,” the sick leave rule will only apply to federal contractors and subcontractors entering into new contracts where the solicitation was issued or the federal contract was awarded on or after Jan. 1, 2017.

The new rule further is limited to contracts or subcontracts that are:

  • Covered by the Service Contract Act or the Davis-Bacon Act
  • Concessions contracts
  • Service contracts in connection with federal property or lands

Continue Reading DOL releases final rules on paid sick leave for federal contractors

As we reported last year, the Office of Federal Contract Compliance Programs (OFCCP) planned to issue a Final Rule updating its sex discrimination regulations for federal contractors and subcontractors for the first time since the 1970s. In doing so, sex discrimination prohibitions for federal contractors have been modernized to include discrimination on the bases of sex, pregnancy, childbirth, pregnancy-related medical conditions, gender identity, transgender status and sex stereotyping. Notably, sexual orientation was excluded from the definition.

The Final Rule amends regulations implementing Executive Order 11246, which prohibits discrimination by federal contractors on sever bases, including sex. The Final Rule applies only to companies that are contractors and subcontractors of a covered federal contract (totaling $10,000 or more over a 12-month period). The Final Rule includes mandatory provisions targeted at prohibiting modern issues of sex discrimination, as well as some advisory “best practices.”
Continue Reading OFCCP publishes final rules on sex discrimination for federal contractors