Quarterly legislative updates are provided to alert members to new and emerging developments in the law with the understanding that they are not a legal opinion or professional advice on specific facts or matters. For answers to your specific questions, please consult with counsel.

Changes to Workplace Law for 2020

SHRM has compiled 6 legal changes HR pros need to know in 2020. Click here for more.

1. Overtime Rule – Final rule updates the salary threshold to qualify for overtime pay and other changes. Effective January 1, 2020.
2. Paid Leave – Mandatory family leave proposals are under consideration with many states considering action this year.
3. Appearance Discrimination - Several states passed laws last year banning discrimination based on appearance. The EEOC has challenged grooming and appearance policies and such policies are facing increased scrutiny from courts.
4. Pre-employment Marijuana Testing – This year some state laws will prohibit employers from conducting pre-employment marijuana tests with exceptions for safety-sensitive positions and jobs regulated by federal programs that require drug testing.
5. More Predictable-Scheduling Laws – Some state laws require some employers to provide advance notice of work schedules. Many cities have laws taking effect in 2020.
6. Minimum Wage Changes – Numerous states will be increasing their minimum wage beyond the current threshold of $7.25 per hour.

SHRM Policy Update

The following policy updates reflect emerging legislation monitored by the Advocacy Team, including SHRM’s stance on support.

H.R. 2474 – Protecting the Right to Organize Act of 2019 (PRO Act)

On February 6, the House passed H.R.2474 by a vote of 224-194. The PRO Act proposes changes to the NLRA, the Taft-Hartley Act and the Labor-Management Reporting and Disclosure Act. SHRM opposes the PRO Act, as this legislation violates employee privacy, revokes attorney-client privilege and shortens the union election time frame. Emily M. Dickens, SHRM Corporate Secretary, Chief of Staff & Head, Government Affairs, said that “this piece of legislation would disrupt labor-management relations as we know it and ultimately harm employers and employees.” SHRM will continue to closely monitor the legislation's movement through the Senate.

H.R. 2694 – Pregnant Workers Fairness Act

A House committee advanced this bipartisan pregnancy accommodation bill in a 29-17 vote on January 14. The bill creates a new, stand-alone statute ensuring an affirmative obligation for employers to provide an accommodation for pregnancy. SHRM supports this legislation as it provides a favorable improvement for both employers and employees. This bill also requires an “interactive process” between employers and employees to identify an agreed upon accommodation with “leave” being suitable if nothing else can be agreed to.

H.R. 4070 – Commonsense Reporting Act of 2019

This bipartisan bill, introduced to the house in July 2019, addresses Affordable Care Act (ACA) reporting requirements. According to Chatrane Birbal, SHRM's Director for Policy Engagement, H.R. 4070 "would allow employers to voluntarily report upfront to the IRS general information about their health plan for the current plan year, which will help increase the accuracy of eligibility determinations for exchange tax credits." If enacted, the legislation would help ease employers' reporting burdens by requiring ACA reporting forms only "for employees about whom the employer received notification that the employee or their dependents purchased coverage through an exchange, rather than issuing reporting statements for the entire workforce." SHRM strongly supports this act because it will provide much-needed relief to both employers and employees by modernizing and streamlining reporting requirements to the IRS.

Compliance News

• Annual State of the Union Address: President Trump highlights key workplace issues
• Judge Halts EEO-1 Pay Data Reporting: Employers now have a reprieve from reporting pay data by job category, race, sex and ethnicity to the federal government.
• Is Your Business Ready for Kari’s Law?: Companies that use multiline telephone systems installed or manufactured after Feb. 16 must comply for calls made to emergency services.
• House Considers Multiple Ideas for Paid Family Leave: Lawmakers seem to agree that Congress should approve a law to give paid family leave to U.S. workers—but they are divided on which proposal to pass.
• IRS Authorizes Refunds of ‘Parking Lot Tax’ for Nonprofit Employers: Tax-exempt organizations that paid unrelated business income tax on the value of employee parking may claim a refund for those taxes.
• House Approves Ban on Most Employment Credit Checks: The House has passed legislation that prohibits employers from using credit reports for employment decisions, except when required by law or for national security clearance.
• Demotion Can Be Reasonable Accommodation Under ADA: An employer properly offered a demotion to an employee with a disability as a reasonable accommodation under the ADA, according to the 7th U.S. Circuit Court of Appeals.
• House Leaders Want to Reduce COBRA Confusion: Leaders in the House have asked federal agencies to clear up confusion caused when retirees don't understand risks of not enrolling in Medicare because they're continuing to receive coverage under COBRA.

In Case You Missed It

New Paid Parental Leave and ‘Ban-the-Box’ Laws For Federal Employers: Many federal employees will soon be eligible for paid parental leave under a defense spending bill signed Dec. 20. The bill also contains a “ban-the-box” law prohibiting federal agencies and contractors from asking applicants about criminal convictions until after conditional job offer.

• New Form I-9 Now Available: The new I-9 form lists additional countries in Section 1, among other minor changes visible only when completing the electronic version of the form. Employers must begin using the new version no later than May 1, 2020.
• Top 10 Wage and Hour Class Actions in 2019: Cost almost $500M; nearly double than 2018.
• Changes Are Here for H-1B Visa Application Process: Employers seeking to file H-1B cap-subject visa petitions this year need to be aware of a new electronic prefiling registration process. The registration period is scheduled for March 1-20.
• OSHA 300A Electronic Submission Due March 2: Establishments with 250+ employees that are currently required to keep OSHA injury and illness records, as well as establishments with 20-249 employees that are classified in certain industries, are required to electronically submit their 300A forms to OSHA by March 2.
• Effective Date for New Joint-Employer Rule Fast-Approaching: The DOL announced a final rule narrowing the definition of "joint employer" under the FLSA and clarifying franchise and contractor relationships. The new rule becomes effective March 16.
• NLRB Issues New Union Election Rule: An NLRB announcement significantly lengthened the time between an NLRB regional director's order that there be an election and the election. The final rule takes effect April 16, 2020.
• New DOL Opinion Letters Address FLSA, FMLA: The DOL has issued three new opinion letters to clarify how employers should comply with the FLSA and FMLA.

Trending Topics

• Nicotine-Free Hiring: Employers are advised to proceed with caution.
• Coronavirus Workplace Concerns: Should there be employee travel restrictions?
• Workplace Romance: Love is in the air! Review or implement an office romance policy.

• The Science Behind Marijuana Testing at Work: Scientists haven't yet developed a test that can check for impairment due to marijuana. What does it mean for employers?
• Employee Handbooks Replace ‘He’ and ‘She’ with ‘They’: Rise of gender neutral pronouns.
• How to Stop FMLA Abuse: Send fraudsters a message: The employer is monitoring them.
• Flirting at Job Interviews Is Common: HR and company leaders should root this out quickly.
• On-Demand Pay: Some firms are adopting a type of payment system that promises to disrupt traditional payment schedules.

Plan Ahead

Other Helpful Resources

• For a full list of state law reminders and developments, click here.
• 2020 Reporting and Disclosure Calendars: Keep your benefit plans in compliance.
• Employee Handbook Updates for 2020: Review your employee handbook for the new year.
• Be in the know for when Congress is in session as well as other key election and advocacy dates with the 2020 Congressional & Election Calendar.