labor lawAdivision of labor law center

The US Department of Labor recently awarded $250,000 to develop strategic economic growth plans for Kentucky and Tennessee. Most of the area affected is in the extreme western tip of Kentucky.

“This $250,000 grant to the West Kentucky Workforce Investment Board will boost efforts to expand the region’s economy and increase job opportunities for Kentucky workers,” said U.S. Secretary of Labor Elaine L. Chao.

The primary focus of the grant is the (more…)

Five states increased their minimum wages effective July 1, 2008. They include: Illinois, Michigan, West Virginia, Kentucky and Nevada.

In Illinois, the state minimum wage increased 25 cents from $7.50 to $7.75 per hour. This is the second step in a 3-tiered increase. The state minimum wage will increase again in 2009. The law applies to any employer with 4 or more workers who are not family members.  More details here.

Michigan’s minimum wage also increased 25 cents per hour from $7.15 to $7.40.  The state minimum wage has risen nearly $2.00 since 2005, despite sluggish job growth, problems for the automotive industry and the loss of a number of major employers. The law applies to employers with 2 or more workers. More details here.

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According to the Kentucky Department of Labor, on July 1, 2008 the Kentucky minimum wage will increase by 70 cents from $5.85 per hour to $6.55 per hour.

The current state minimum wage in Kentucky mirrors the federal minimum wage of $6.55 per hour. Slightly more than 3 weeks after the increase, the federal minimum wage will also rise by 70 cents per hour to $6.55 per hour.

The Kentucky minimum wage for tipped employees remains unchanged at $2.13 per hour under KRS 337.275 (2)

In Kentucky, the Division of Employment Standards, Apprenticeship and Training is responsible for the administration and enforcement of Kentucky’s minimum wage, overtime, wage payment, child labor, wage discrimination laws and the equal opportunities provisions including the rights of the physically disabled. This division is charged with investigating allegations of statute and regulation violations and rendering findings “in a timely and efficient manner.”

The last increase to the Kentucky minimum wage occurred on June 26, 2007 when the state minimum wage went from $5.15 per hour to $5.85 per hour. This increase occurred almost a month before the similar increase in the federal minimum wage.

Under the Kentucky state wage and hour laws, employers are required to pay workers overtime at 1.5 times the worker’s usual hourly rate, when the employee puts in more than 40 hours in a single week. State law also requires that employers pay

Giving “comp time” instead of paying overtime is illegal under state law. Employees who are not legally entitled to overtime can be given “comp time.”

Under state law, employees are entitled to a meal period between the 3^rd and 5^th hour of the shift. Kentucky law does not define the meal period, other than to say that it must be “reasonable.” The meal period may be eliminated in cases where the employee and employer have mutually agreed to another arrangement. If the employee is completely relieved of all work duties, the meal period may be unpaid.

There is no state law that Kentucky employers must pay workers for unused, earned vacation time upon termination. That is determined by the employer’s written policy or past practice. Employees who are terminated for any reason, or who resign, are entitled to a final paycheck on the next regular payday, or within 14 days – whichever is sooner.

Most Kentucky employees are entitled to overtime pay for the entire day when they work 7 days in a workweek. However, an employee who works less than 40 hours in the week is exempt. In addition, workers in a number of occupations are exempt from this “seventh day overtime” law including:

• Stenographers
• Bookkeepers
• Lawyers and other licensed professionals
• Technical Assistants of licensed professionals
• Railway employees
• Sailors
• Truck Drivers subject to Department of Transportation regulations
• Supervisors, foremen, or superintendents.

Under the Kentucky minimum wage laws, deductions to a worker’s paycheck for cash shortages or damaged items cannot cause wages to fall below the minimum wage.

Employers must advise workers of any change in work hours or rate of pay in advance. They can also put any worker on salary – but that may not eliminate the need to pay overtime under federal or state law.

Kentucky employers can require that employees be paid by direct deposit as long as the employee has the ability to withdraw his or her entire net pay without paying any fees to the financial institution.

Three Kentucky employee training programs were recently awarded a total of almost $4.4 million by the U.S. Department of Labor.

A grant of $2,388,552 to train workers in advanced manufacturing was awarded to the Kentucky Community & Technical College in Hopkinsville.

Another advanced manufacturing grant for $1,996,442went to the Owensboro Community and Technical College.

The final Kentucky grant of $866,095 went to the Gateway Community and Technical College in Covington.

According to a recent announcement made by the U. S. Department of Labor, the President’s Community-Based Job Training Grants Initiative awarded $125 million to 69 community colleges across the United States.

The competition was announced in August of 2007, and received 341 applications. The funds go to training facilities and community colleges to aid workers in competing for high-growth industry jobs.

“Preparing local residents for careers in growing hometown industries is critical to improving the quality of life of thousands of Americans,” said acting Assistant Secretary of Labor for Employment and Training Brent R. Orrell. “These programs will provide participants not only with the skills needed to gain employment, but the change to enter into careers that offer opportunities for advancement.”

The Community-Based Job Training Grants are aimed at areas where industries need skilled workers. The funds go to community colleges in these areas to help workers of all ages train for these skilled positions. Consider a cluster of nuclear plants in New Mexico. They need workers skilled in the energy field. A grant could be given to a local community college to train workers for those jobs.

“Community colleges are in a unique position to prepare local workers for careers in high-growth industries,” said Secretary of Labor Elaine L. Chao. “The $125 million awarded today will expand enrollment in education and training programs and provide more workers with the skills they need to succeed.”

Several factors have changed the workforce in the United States over the past few years. An aging workforce, globalization and technical innovations have put nationwide industries such as healthcare, energy and biotechnology in dire need of skilled employees.

Awarding these Community-Based Job Training Grants helps community colleges come to the forefront in training America’s workforce to its full potential. Initiated in 2005, 72 grants were awarded and 70 grants were awarded in the second round of awards in 2006.

The 69 grants awarded for 2008 provide assistance in 36 states.

A national model for the development of a demand-driven workforce, the President’s High Growth Job Training Initiative, implements programs through partnerships with business, industry and educators. Officials at the U. S. Department of Labor strongly believe these partnerships help boost local economies, and help the country’s ability to compete in the world marketplace by providing Americans with work.

Community colleges utilize the money to hire qualified faculty, set up training experiences like internships, and to upgrade equipment needed to aid in the training process. The colleges work closely with local industries to develop a training curriculum to meet that industry’s needs. The goal of the Grants is not only to provide skilled workers for these industries, but also to meet the needs of the employees with increased wages and increased options for advancement.

High growth is occurring and will occur in nearly 15 areas of the world market, including Advanced Manufacturing, Aerospace, Automotive, Biotechnology, Construction, Energy, Financial Services, Geospatial Technology, Health Care, Homeland Security, Hospitality, Information Technology, Retail and Transportation. New technology has brought new jobs and new industries to the market, all of which require workers with new skills.

Employers receive benefits from these programs beyond skilled workers. Companies that add the Workforce Investment System to their Human Resources department are eligible for incentives such as government training assistance and tax credits.

The Family and Medical Leave Act (FMLA) will undergo several changes on or about April 11, 2008. These changes were proposed on February 11, 2008, by the U. S. Department of Labor. During the interim, employers can review the changes and make comments on them.

The U. S. Department of Labor is accepting comment online until April. All comments posted on the website are viewable to the public, so employers need to be aware of the content of their post.

To add a comment, click this link and type in “Family and Medical Leave Act”. Be sure to put quotes around the keywords.

The new regulations will amend how paid leave is used while on FMLA leave. The term “substitution of paid leave” refers to an employee using paid time off as past of FMLA leave. Currently, employees can use their paid sick leave. Under the new regulations, workers will also be able to use accrued personal leave and accrued vacation time.

For example, Betty has developed a long term illness and needs to take time off. Currently she has 2 weeks of sick leave, 3 weeks of personal leave and 5 weeks of vacation time for a total of 10 weeks of PTO. When the new FMLA goes into effect, she can use all ten weeks of PTO and only two weeks of FMLA will be unpaid leave.

Until the new regulations go into effect, however, Betty could only use her two weeks of sick time toward FMLA. The rest – 10 weeks of FMLA — would be unpaid.

The new regulations will also require FMLA leave to be counted toward an employee’s absences. Prior to the changes, employees on FMLA weren’t considered “absent”. This policy meant that even when an employee took off 12 weeks for FMLA, he or she was still eligible for “perfect attendance” bonuses and awards. Coworkers and supervisors complained that the policy was unfair to other workers.

One change to the regulations corrects what many saw as an injustice under the old plan. Although workers on FMLA leave continue to accrue seniority, they will no longer be eligible for “perfect attendance” rewards.

More Kentucky FMLA Changes

The FMLA (Family and Medical Leave Act) provides Kentucky workers with up to 12 weeks of job-protected, unpaid leave to care for themselves or a family member (child, spouse or parent) with a “serious medical condition.”

Recently the U. S. Department of Labor proposed changes to the FMLA, several of which focused on the definition of “serious medical condition” and the process of obtaining its certification.

The FMLA regulations include several ways to classify a “serious medical condition”. The new regulations will keep six of the definitions and clarify a couple of terms. One definition requires the employee to be incapacitated for three consecutive days and visit the healthcare provider two times. “Two times,” however was not defined as any specific time period. Under the new regulations, the U. S. Department of Labor will define “two visits to a healthcare provider” as two times within 30 days of the incapacitation.

Certification of the “serious medical condition” by a healthcare provider is usually required. The U. S. Department of Labor permits employers to do this to deter abuse of the leave. The employer can also require a second or even third opinion, but is responsible for paying for those visits.

In addition to “serious medical condition” the new regulations include changes regarding the employee’s right to settle FMLA suits out of court, the certification process of “fitness-for-duty” and the substitution of paid leave for qualified employees.

Victoria Lipnic of the U. S. Department of Labor made the following statement. “This proposal is the result of a thoughtful, careful process that included a Request for Information with 15,000 public comments in 2006, many conversations with stakeholders, and the department’s experience in administering and enforcing the law.”

Though the regulations were proposed on February 11, 2008, they do not go into effect until April 11, 2008. Until that time, employers have the opportunity to review the changes and post comments on them.

Once the new regulations are published, they become law, and all employers are required to comply.