1. Paycheck Fairness Act Update

In 2009, the Paycheck Fairness Act was passed by the House, then defeated by the Senate a year later. However, the bill has now been reintroduced in Congress. It’s designed to alter key provisions of the Equal Pay act of 1963, creating more compliance challenges for employers. Among other things, this legislation would:

• Increase employer liability for compensation decisions
  
• Increase government involvement in remedying pay inequalities
• Reduce the gap between pay rates among the genders
• Expose employers to unlimited compensatory and punitive damages
• Make it easier for plaintiffs to bring class action lawsuits
• Expand the definition of “same establishment”
• Make it more difficult for employers to prevail on the EPA’s “Any Factor Other than Gender” defense

2. How Big is Big Enough?

One of our most frequently asked questions from clients and small business owners is “Which laws apply to me?” While many Federal employment laws apply to all employers, here are the thresholds for seven major employment laws:

• ADA: 15 employees - The Americans with Disabilities Act prohibits employers with 15 or more workers from discriminating against employees or applicants because of a disability or perceived disability.
• Title VII: 15 employees - Title VII of the Civil Rights Act prohibits employers from discriminating against employees based on race, color, religion, gender, and national origin. Many states have statutes reducing the employer-size threshold and expanding the classes of protection.
• ADEA: 20 employees - The Age Discrimination in Employment Act prohibits companies with 20 or more workers from discriminating against people age 40 or older in hiring, firing, wages, and benefits.
• COBRA: 20 employees - The Consolidated Omnibus Budget Reconciliation Act mandates continuing coverage when an employer with 20 or more workers offers health coverage.
• FMLA: 50 employees - The Family & Medical Leave Act grants up to 12 weeks of job-protected, unpaid leave to certain workers in companies with 50 or more employees who work within a 75-mile radius of the work site. There are hour and calendar requirements that also apply.
• PDA: 15 employees - The Pregnancy Discrimination Act prohibits discrimination on the basis of pregnancy, childbirth, and other related medical issues.
• WARN: 100 employees - The Worker Adjustment and Retraining Notification Act requires companies to give at least 60 days notice of closings and mass layoffs. It applies to employers with 100 or more workers. There are hour and calendar requirements that apply as well.

3. City of Criminal Love?

Philadelphia Mayor Michael Nutter recently signed an ordinance that prohibits public and private employers within the city from conducting a job applicant’s criminal background check until after the first employment interview. The ordinance notes that “approximately one-fifth of Philadelphia’s population has some type of criminal record (not including their football team).” The legislation’s stated intent is “to give the individual with a criminal record an opportunity to be judged on his or her own merit during the submission of the application and at least until the completion of one interview.”
The ordinance prohibits employers from “making any inquiries or gathering any information” regarding criminal convictions before completion of the first interview. If the applicant voluntarily discloses such information during an interview, the employer may then discuss only the volunteered information. If an employer does not conduct an interview, no inquiry may be made into the applicant’s criminal history.
“It’s already difficult for ex-offenders to get their foot in the door and obtain employment following incarceration,” said Mayor Nutter. “This bill makes it a little easier to be considered for a job without harmful preconceptions by an employer.” Philadelphia is the first city in the commonwealth to enact this legislation for both public and private employers.
One wonders if Mayor Nutter has taken the hard costs of recruiting and interviewing into consideration. This step just means the employer has to interview more candidates to fill certain positions. Employers’ have a right to know who they’re hiring, and now that right is being challenged. These days, it seems Employers continue to find themselves being squeezed into more difficult positions.