Employment Law Changes for 2015

Over the course of the past year there have been important shifts in federal and state law regarding employment. For both employers and employees, these changes can have a significant impact on workplace policies, employee rights and empolyer liability. Here is a summary of some employment law developments and trends for 2015:

Over the course of the past year there have been important shifts in federal and state law regarding employment. For both employers and employees, these changes can have a significant impact on workplace policies, employee rights and empolyer liability. Here is a summary of some employment law developments and trends for 2015:

Misclassification laws and wage and hour claims

• January 1st marked the official increase of minimum wage in twenty states. Minnesota’s new minimum wage laws went into effect August 1, 2014. The new law has initiated a series of increases that will top out at $9.50 per hour in 2016 and will rise in accordance with inflation.
• The Obama administration has also imposed new labor laws to require overtime pay in for non-exempt employees. In the event of misclassification, employers may be held liable under state or federal law, potentially giving rise to class action lawsuits. The line between exempt and non-exempt continues to be blurred by employers who may give the title of “Assistant Manager,” even though the employee maintains regular duties.
• In addition to misclassification of exempt or non-exempt employees, employers will also have to ensure that they properly categorize independent contractors. There has been an increasing number of lawsuits regarding the misclassification of workers as independent contractors, entitling those employees to overtime and other benefits. Most importantly, simply labeling a worker as an IC does not automatically make that worker an independent contractor. The job duties and working arrangement must meet certain criteria.

Telecommuting and electronic communications

Changes in the technological landscape have also inspired legal progressions, giving rise to more claims involving telecommuting positions and electronic devices.

• The EEOC won a case against Ford Motor Company, which alleged a violation of the Americans with Disabilities Act, for failure to accommodate an employee by failing to allow her to telecommute four days a week.
• Courts will also likely see a rise in employee actions related to electronic communications and big data. A lawsuit was filed in October 2014 against LinkedIn for its use of big data. The class action asserts that LinkedIn violated the Fair Credit Reporting Act (“FCRA”) by selling users’ employment history to potential employers without consent.
• The EEOC filed its first claims against Honeywell and Kaiser Health for the misuse of wellness programs. There is likely to be continued push back as companies seek to use health data to increase healthcare premiums.

Minnesota laws:

There are a number of laws that took effect in Minnesota January 1, 2015. Relevant changes include the following:

• Apprenticeship programs: Minnesota has adopted new laws to ensure federal conformity with apprenticeship programs. Under the new law, employers can extend apprenticeship programs after a pilot stage. To comply with the law, employers must register an apprenticeship program with the Department of Labor and Industry. The application should include a description of the program, terms and conditions of the employment contract, and plans for training or supervision of the apprentices. If the program successfully meets the standards of an apprenticeship program, a one-year approval will be granted.