Guidance to help employers ensure their policies and practices are up-to-date and legally compliant in the new year. This Legal Update discusses some of the major issues that should top employers' lists in 2016 and the resources to ensure compliance and best practices, including minimum wage increases, paid sick leave laws, ban-the-box laws, independent contractor classification, pay equity laws, and more.
The start of a new year is historically a time for making resolutions, and avoiding HR pitfalls and costly litigation certainly tops most employers' lists. A new year also means new laws, and employers must make sure they are aware of these changes. Employers resolving to make 2016 a good year should pay special attention to these issues and trends:
Increases to state minimum wages. Employers should review their current wage structures and workplace postings to ensure they reflect any minimum wage increases in their jurisdiction. For detailed information about the minimum wage in each of the 50 states and the District of Columbia, including scheduled increases for 2016, see Practice Note, State Minimum Wage Chart: Overview and Wage and Hour Laws: State Q&A Tool: Question 4.
Paid sick leave laws. Employers must ensure they are complying with any paid sick leave requirements in the states and municipalities where they operate, a number of which were enacted in 2015 and become effective in 2016. For a detailed chart summarizing employers' obligations under state and local laws to provide paid sick leave to their employees, including paid sick leave laws that become effective in 2016, see Practice Note, Paid Sick Leave State and Local Laws Chart: Overview. For guidance on drafting a paid sick leave policy, see Drafting a Paid Sick Leave Policy Checklist.
Pay equity laws. Employers must be aware of state laws relating to gender-based pay equity, particularly laws passed in New York and California in 2015 that become effective in January 2016. For more information, see Legal Updates:
Social media. Employers should be aware of new and existing laws relating to social media in employment, including restrictions on using social media in the hiring process and disciplining employees for social media use. For more information about state laws that restrict employer access to current and prospective employees' social media accounts, including those enacted in 2015, see Practice Note, Employer Access to Social Media Accounts State Laws Chart: Overview. For additional guidance about best practices concerning social media in the employment context, including model policies, National Labor Relations Act (NLRA) compliance, and checklists, see Social Media Usage Toolkit and Employees' Use of Social Media and the NLRA Toolkit.
Independent contractor classification. Employers continue to face challenges to their classification of workers as independent contractors from the US Department of Labor (DOL), state DOLs, and class and collective action lawsuits, and this trend will likely continue in 2016. For guidance on properly classifying workers, including best practices, model independent contractor agreements, tips for using independent contractors in the on-demand economy, and checklists, see Independent Contractor Toolkit.
Restrictive covenants. With an increasingly mobile workforce, it is critical for employers to protect their trade secrets, confidential information, and employees. For more information on measures employers can take to protect their information and assets, including model non-compete and non-solicitation agreements, best practices, checklists, and state-specific resources, see Restrictive Covenants Toolkit.
Employee handbook review. The new year is a good time for employers to take a fresh look at their employee handbooks and make sure changes in the law and in the employer's operations are incorporated. For guidance on conducting an efficient and comprehensive handbook review, including best practices, checklists, and model policies, disclaimers, and acknowledgment forms, see Employee Handbook Toolkit.
Employee training. Proper and regular training of new and existing employees on harassment and discrimination prevention should never fall through the cracks. The start of a new year is a good time for employers to start scheduling training sessions. For resources to assist employers with training, see: