February 2023 Compliance Corner
Interesting Factoid
In case you are wondering why we place so much emphasis on various compliance issues, here is a little gem from The Employment Law Handbook:
“Did you know being noncompliant costs companies 2.7 times more than other companies spend to get and stay compliant? As bad as that sounds, noncompliance is only getting more and more expensive.”
The article goes on to list the following costs of non-compliance:
1 in 4 employers each year faces a lawsuit with an average settlement of $250,000 related to compliance violations.
Based on our research, here are the costs of common compliance infractions
COBRA cost $110/DayI-9 Paperwork Violations cost on average $2,156
Health Insurance Portability and Accountability Act (HIPPA) cost on average $250,000 (and up to 10 years imprisonment)
Occupation Health and Safety Administration (OSHA) violations cost on average $13,663
General Data Protection Regulation (GDPR) violations starts at $11.03 million or 2% of the company’s revenue, whichever is greater.
We would love to assist you in updating your 2023 Employee Handbook, where for one state or multiple states.
Pay Transparency Requirements Expanding
Pay transparency regulations are in effect in several states for recruitment advertising, but transparency requirements for current employees are on the increase as well. Currently California and Washington State joined Connecticut, Maryland and Rhode Island in issuing such mandates. This movement is only going to spread, so the advice to employers is to examine their current pay structures and take steps to remedy any inequities – especially but not exclusively if they are due to any sort of discriminatory or intentional practice – past or present.
Biden Administration Seeking to Ban Non-Compete Agreements
While it is still in the early stages, Biden’s FTC has issued a “Notice of Proposed Rulemaking” that would effectively ban non-compete agreements between employers and employees on a nationwide basis. Soliciting by an employee of an employer’s clients/customers generally would not be banned, however. This has a fair number of administrative hurdles to pass, but the Administration is behind it, and it is likely to become effective in one form or another. As proposed, it would supersede any related state statutes.
Overtime Threshold Can – Kicked Down the Road Again
The Administration’s Department of Labor (DOL) was originally due to issue a Notice of Proposed Rulemaking to set a new salary threshold for overtime eligibility in April of 2022. It was delayed to October, 2022. That was missed, but the new “deadline” is now set for May of 2023. Once the initial proposal is issued, employers will have specified comment period available prior to actual enactment.
Employer Settled ADA Suit with EEOC – for $47,500
An employee with considerable lung problems was part of an office team working 1 day at home and 4 days int the office because of COVID. When they were called upon to return to the office full-time, the employee requested an accommodation of 2 days at home plus frequent breaks because of her condition. She also supplied documentation that her condition put her at heightened risk for COVID. The company denied her request and then fired her a few weeks later, claiming performance problems. EEOC saw it otherwise and won her case, putting the company under compliance review for the next two years.