labor lawAdivision of labor law center

 Massachusetts recently increased the penalties for employers who misclassify employees as independent contractors.

Many states are imposing stricter penalties for employers who illegally avoid paying unemployment insurance and workers’ comp by misclassifying workers as independent contractors.

In Somers v. Converged Access, the Massachusetts Supreme Judicial Court ruled that the independent contractor law is a strict liability  statute. This means that the employer’s intent in misclassifying a worker is irrelevant. Therefore, the worker was entitled to compensation for wages, overtime and benefits that he would have received, if he had been correctly classified as an employee. In addition, the employee was permitted to keep the $65 per hour that the company paid him as an independent contractor – an amount far in excess of an employee’s wage in the same job.

The Massachusetts company was required to pay the employee for benefits including vacation and holiday pay. In addition, the company was ordered to pay the employee overtime at a rate of $97.50 per hour – 1.5 times the worker’s $65-per-hour wage.  

The Massachusetts definition of independent contractor is even more strict than federal independent contractor regulations. A worker is an employee unless he or she is: (more…)

A new Pennsylvania law holds the employer responsible when an employee uses a work computer for child porn. Every employer needs to be aware of this change, because it highlights a recent trend under federal and state law of holding employers responsible for crimes of child exploitation by workers.

A Pennsylvania Supreme Court ruling requires the employer to act when notified of employee use of a company computer or a company network to view child pornography — even a single image viewed one time, even if the employee claims the site was accessed accidentally.

More states are placing the burden on employers to eliminate such conduct by employees, even on company laptops that the employee takes home.

By law, IT workers in Arkansas, Illinois, Missouri, North Carolina, Oklahoma, South Carolina and South Dakota must report the discovery of child pornography on any work computer to the National Center for Missing & Exploited Children. An employer who fails to report such images is subject to fines and even jail time.

Employers should consider implementing an Internet policy that any employee who downloads or views child pornography on a work computer or network is immediately terminated.  In one recent ruling, the appeals court found that the employer has a duty to report even a single incidence (more…)

The California Labor Agency recently issued an opinion allowing employers to reduce an exempt employee’s salary and hours worked, at the same time, without endangering the worker’s status as a salaried exempt employee.

In the example used, the state labor agency permitted an employer faced with economic difficulties to reduce the work schedule of exempt employees from five days to four days. The state DLSE or Department of Labor Standards Enforcement ruled in a recent opinion letter that simultaneously reducing the employee’s salary by 20%  “did not violate the ‘salary basis’ for the workers’ overtime exemption under the state Labor code and wage orders” as long as the employer’s action is a temporary measure.

This is a radical change, since the DLSE took the opposite position in 2002. In an opinion letter issued in that year, the California agency ruled that the employer could reduce an employee’s salary. However, if the employee’s work hours were also reduced, that change the employee from exempt to non-exempt status.

This is a primary concern for California employers, since non-exempt employees are entitled to overtime under state law. California has the strictest (more…)

The state Department of Commerce recently announced that the 2010 Ohio minimum wage will remain at $7.30 per hour.  

This is good news for employers across Ohio, who had been bracing for another annual increase on January 1, 2010. Under an amendment to the constitution passed by voters in November 2006, the Ohio minimum wage will increases each year on January 1.

However, the Ohio minimum wage increase is based on inflation for the previous year – specifically, it is based on the Consumer Price Index or CPI for urban wage earners and clerical workers for the 12-month period ending August 31. So the 2010 Ohio minimum wage is based on the CPI for September 2008 through August 2009.

During that period, the CPI declined by 0.2%. By law the Ohio minimum wage cannot be reduced, but it will not be increased in 2010, either.

The Ohio minimum wage applies to employers with annual revenue of more than $267,000. Employers grossing less than $267,000 per year can pay just $7.25 per hour – an amount equal to the federal minimum wage. The minimum wage for employees who are 14 or 15 (more…)

Illinois Governor Pat Quinn recently signed three new employment bills into law. The laws address wage discrimination at the state level, and increase the rights of victims of domestic abuse.

Expanded Leave Rights

Every Illinois employer needs to be aware of an amendment to the Illinois Victims Economic Security and Safety Act. The new law requires employers to extend unpaid, job-protected leave to victims of domestic violence or sexual violence.

Under the new law, effective August 24, 2009, employers with 50 or more workers must provide up to 12 weeks of FMLA-type leave to employees who are victims of rape, sexual assault or another type of sexual violence. The law requires employers with 15 to 49 employees to provide  8 weeks of unpaid leave.

Employers must also extend the same benefits to victims of domestic violence of any kind.

This new law is notable because Illinois has no family leave law at the state level – so this is the state’s first intrusion into expanding FMLA to smaller employers. Currently, there is no Illinois law that requires an employer with 15 to 49 workers to provide leave for any reasons other than sexual violence or domestic violence.

New Illinois Discrimination Law

Under a new Illinois discrimination law, victims of stalkers, domestic violence and other crimes are protected from employment discrimination. The amendment to the Illinois Human Rights Act prohibits the employer from discriminating against an employee who is protected by an order of protection or a similar order issued in anther state.

Under the law, which goes into effect on January 1, 2010, the employer cannot make employment decisions based entirely or in part on whether a worker is shielded by an order of protection.  For example, the employer could not refuse to hire Jane, a teacher, simply because she has an order of protection against her ex-husband Ted. (more…)