Workforce Management
August 2009
Dozens of worker-friendly laws are making their way through the halls of Congress, including an unprecedented expansion of mandates on small employers, in some cases reaching businesses with as few as 15 employees. By Monica Ginsburg
Dozens of worker-friendly laws are making their way through the halls of Congress, including an unprecedented expansion of mandates on small employers, in some cases reaching businesses with as few as 15 employees.
New laws that expand employee rights “sound good and are friendly, but aren’t necessarily good for small businesses,” says Bruce Stickler, a partner specializing in employment and labor relations at Drinker Biddle & Reath in Chicago. “It’s difficult to plan for it and assess it, but the consequences are huge. It puts small-business owners in a trick box.”
From unions to family leave, here are seven to watch:
1. Paycheck Fairness Act: This measure would increase the burden on employers to demonstrate that wage gaps between men and women doing the same work are not based on gender but have a business justification, such as education, training or experience. The act, designed to strengthen the Equal Pay Act, also prohibits employers from ordering employees not to share salary information with co-workers. The Department of Labor is charged with educating small businesses about the law and assisting with compliance. The act would go into effect six months after its passage.
Covers: Employers covered by the Fair Labor Standards Act, which regulates businesses with annual gross sales exceeding $500,000, hospitals, some health care institutions, schools and public agencies.
Status: Passed by the House of Representatives on January 9. The Senate may consider the legislation later this year. According to government watchers, the recent enactment of another pay-equity measure, the Lilly Ledbetter Fair Pay Act, may make further consideration of the Paycheck Fairness Act less of a priority.
2. Re-Empowerment of Skilled and Professional Employees and Construction Tradeworkers Act: The proposed law would amend the National Labor Relations Act by changing the definition of a supervisor. The bill removes the phrases “assign” and “responsibility to direct” from the duties currently associated with a supervisory role and requires that workers spend the majority of a workday in managerial duties in order to be labeled a supervisor. The new definition reduces the number of employees who qualify for the title and makes more employees eligible for union membership. Under current law, employees categorized as supervisors are unable to join a union.
Covers: Businesses covered under the National Labor Relations Act, which regulates employers with more than $500,000 in gross revenues. Does not cover employers who fall under the Railway Labor Act, such as railroads and airlines, and federal, state and local governments.
Status: Introduced in the 110th Congress but has yet to be reintroduced in the 111th Congress. 3. FOREWARN Act: Would amend the Worker Adjustment and Retraining Notification Act by increasing the notification period for plant closings or mass layoffs to 90 days from 60. The act stiffens penalties for businesses to double back pay plus benefits for the period a business was delinquent in giving notice. The threshold for a mass layoff decreases to 25 employees from 50.
Covers: Employers with 50 or more employees, down from 100 under current law.
Status: Introduced in 2007. Expected to gain new ground with current administration.
4. Employment Non-Discrimination Act: Would provide basic protections against workplace discrimination on the basis of sexual orientation or gender identity. The bill is modeled on existing civil rights laws. Prohibits public and private employers, employment agencies and unions from using an individual’s sexual orientation or gender identity as the basis for employment decisions such as hiring, firing, promotion or compensation. Currently, 13 states including Illinois have policies that protect against both sexual orientation and gender identity discrimination.
Covers: Businesses with 15 or more employees. Religious organizations and military are exempt. Does not require domestic partner benefits be provided to same-sex partners of employees.
Status: A version that did not include protections based on gender identity passed the House in 2007.
Full Story: http://www.workforce.com/section/03/feature/26/59/41/
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