Mandatory Paid Sick Leave Law Passed in Seattle
Beginning September 1, 2012, the City of Seattle will require that all but the smallest employers provide paid sick leave to their Seattle employees. Sick leave mandates under the new law increase depending on the size of a company’s workforce, and employees must be allowed to use the leave for their own or their family members’ illnesses (“Paid Sick Leave”), as well as for certain safety-related reasons (“Paid Safe Leave”).
Seattle employers should use the coming months to plan how to best structure their paid leave programs to comply with the new law. The law has posting requirements and allows complaints to the Seattle Office for Civil Rights, including recovery of damages where violations are found (but not private lawsuits). Employers have an opportunity to provide comment to the City regarding the law before rules under the law are issued (see below).
Key aspects of the comprehensive new Paid Sick Leave and Paid Safe Leave ordinance include:
- Coverage. Employers of five or more full-time equivalent (“FTE”) employees (employees working outside Seattle must be counted) are covered. Employees, including temporary and part-time employees, who work in Seattle at least 240 hours in a calendar year, must be allowed to accrue leave.
- Waiting Period. Leave accrues from date of hire, but employees cannot begin to take leave until 180 calendar days after date of hire.
- Mandated Leave and Minimum Caps. The amount of required leave increases with the number of FTE employees. Employers in the different tiers are required to allow their employees to accrue leave at the following minimum levels:
- Tier One Employers of 5-49 FTE employees must provide at least one hour of accrued paid leave time for each 40 hours worked, up to a minimum ceiling of 40 hours per year.
- Tier Two Employers of 50-249 FTE employees must provide at least one hour of accrued paid leave time for each 40 hours worked, up to a minimum ceiling of 56 hours per year.
- Tier Three Employers of 250 or more employees must provide at least one hour of accrued paid leave time for each 30 hours worked, up to a minimum ceiling of 72 hours per year.
- Basis of Accrual. Non-exempt employees accrue leave time based on hours actually worked. Exempt employees’ leave accrual is based on their regular weekly schedule, up to 40 hours maximum.
- Carryover Required; No Payout on Termination. Mandated carryover is required for up to the same amount of leave time employers are required to allow an employee to accrue in any given year. (For instance, for employers of 49 or fewer, up to 40 hours may be carried over.) Payout on termination is not required.
- Special PTO Requirement for Largest Employers. Tier Three Employers that use a “universal” paid leave program (usually referred to as “paid time off” or “PTO”), rather than dedicated sick leave, must provide more paid leave under the law than those employers with dedicated sick leave. Tier Three Employers must allow accrual of at least 108 hours of paid leave per year and allow carryover up to the same amount.
- Leave Use. Leave can be used for the following purposes:
- Sick Leave. Absence resulting from an employee’s or a qualifying family member’s illness or injury, including diagnosis, treatment and preventative care. (Qualifying family members are the same as under Washington’s Family Care Act: spouse, registered domestic partner, child, parent, parent-in-law or grandparent.)
- Safe Leave. Absence (1) related to domestic violence, stalking or sexual assault of an employee or qualifying family member (amount of leave allowed and qualifying family members are the same as under Washington’s domestic violence leave law), or (2) due to a public health-related closure of the employee’s place of business or a child’s school.
- Notice and Certification. An employee must provide at least 10 days’ notice of foreseeable leave, and must generally follow employer notice policies. Certification of leave use is limited to leaves of three or more days. Where the employer does not provide health insurance, the employer must pay at least half of medical costs associated with obtaining the certification.
- Considerations and “To-Dos.”
- Opportunity for Comment to the City. Employers have the opportunity to provide comments to and receive updates from the City of Seattle related to the implementation of the law. An FAQ is expected by the end of the year on their website, and draft rules in the spring of 2012. Write to Elliott Bronstein at the Seattle Office for Civil Rights, at elliott.bronstein@seattle.gov, to be included in the notification list, and with any questions or comments you have about the law.
- Collective Bargaining Agreements. The ordinance allows unions to expressly waive their members’ rights under the law. To avoid application of the law, employers should take steps to negotiate with their unions for a “clear and unambiguous” waiver and put it in writing.
- Review Sick and Related Leave Policies, Including Short-Term Disability Policies. Employers must review policies and consider whether changes are needed to meet requirements under the new law.
- Special PTO Requirements. Tier One and Tier Two Employers should make sure their PTO policies meet the requirements of the law to avoid having to provide additional paid sick and safe leave. Tier Three Employers that use a PTO program need to allow accrual and carryover of additional paid leave as described above.
Stoel Rives is here to help employers plan for the implementation of this law on September 1, 2012, and will be providing comments to the City about the law in the near future. Please contact us for assistance.
Our Festivus Present to Oregon Employers: Ten Things You Should Know for 2010
Wow, it's Festivus already, which means that in just a few short days it will be a brand new year! We have a Festivus present for Oregon employers to help you get ready: Ten things you need to know for 2010! (click on each blue hotlink for more information)
- All Oregon employers are required to post the SB 519 (Mandatory Meeting Ban) Notice to Employees.
- The H1N1 (or "swine:) flu is slowing down, but it's not gone. If you have concerns for you or your employees, Oregon has a great Flu Hotline.
- As if we needed another reason to investigate complaints of unlawful harassment, the Oregon Court of Appeals recognized a claim for negligent failure to investigate.
- Leave for Military Spouses: Employers with 25 or more employees in Oregon must provide leave to spouses of service members prior to deployment and during leave from active duty.
- In 2010, you might have a greater duty to accommodate employees' religious dress and practices.
- Domestic Violence Leave and Accommodations: Employers may not discriminate against victims of actual or threatened stalking, sexual assault or domestic violence, and must make reasonable accommodations for such employees.
- In 2010, you (and your employees!) may no longer talk on the phone while driving (unless it's with a hands-free device).
- Oregon's minimum wage will remain $8.40/hour.
- Oregon kept its disability discrimination law in tune with the federal Americans with Disabilities Act.
- Oregon has new rest and meal break regulations.
And on that note, we're off to put up our festivus pole (aluminum, high strength-to-weight ratio), air our grievances, and commit feats of strength. Happy festivus, and see you in 2010!
President Obama Signs Expansion of FMLA Leave for Military Families
Earlier this week, President Obama signed the Fiscal Year 2010 National Defense Authorization Act (NDAA), a federal law that is enacted each fiscal year to specify the budget and expenditures of the United States Department of Defense. This year, the NDAA contains two expansions of the exigency and caregiver leave provisions for military families under the Family and Medical Leave Act (FMLA):
- Caregiver Leave: Employees could previously take up to 26 weeks of unpaid leave to care for a family member (spouse, child, parent or next of kin) who is an active service member currently undergoing treatment for a serious injury sustained on active duty; that leave has been expanded to allow leave to care for a veteran family member undergoing medical treatment, recuperation or therapy for a serious injury or illness that was sustained any time during the five years preceding the treatment.
- Exigency Leave: Employees could previously take up to 12 weeks of unpaid leave for qualifying exigencies relating to a reservist family member's call to active service; that leave has now been expanded to provide exigency leave benefits to the family of a member of any armed service on active duty.
These expansions became immediately effective when the law was signed.
For more information on the military leave provisions of FMLA, check out this Fact Sheet on FMLA Military Family Leave Entitlements from the Department of Labor Wage and Hour Division. While the fact sheet doesn't reflect these recent expansions, it does provide valuable information, including who is a qualifying family member and what is a qualifying exigency.
2009 Oregon Legislative Update
The Oregon Legislature was in session in 2009, and many labor and employment-related bills came up for consideration. A complete list of the bills that passed and the bills that failed follows below (you may have to click "continue reading."
Several passed and will become law effective January 1, 2010. Several others didn't get the support they needed to become law, but employers may want to take note as they may gain more traction in the next legislative session.
Notable winners: leave for military spouses, a ban on "captive audience" union meetings, and protections for stalking victims. Notable losers: several attempts to clarify an employer's obligation to accommodate medical marijuana use.
Up next: a federal labor and employment legislation update. Stay tuned!
The Winners: The following Oregon bills will become law January 1, 2010. Click on the bill number to read the full text of each bill.
- HB 2744 - Leave for Military Spouses. Requires employers with 25 or more employees in Oregon to provide leave to spouses of service members prior to deployment and during leave from active duty.
- HB 3256 - Protections for Service Members. Amends ORS Chapter 659A to make discrimination against an employee because of the employee’s service in a uniformed service an unlawful employment practice.
- HB 3162 - Expanded Whistleblower Protection. Amends ORS Chapter 659A to make discrimination against an employee who reports a violation of state for federal laws, rules or regulations an unlawful employment practice.
- SB 519 - Political and Union Meetings. Prohibits employer from requiring attendance in workplace meetings on political, religious or union matters.
- SB 786 - Religious Accommodations. Requires employers to reasonably accommodate religious practices with accommodations such as shift changes, vacation time for religious holidays, allowing religious jewelry or clothing.
- SB 469 - Child Businesses. Exempts children under age 17 from requirement to obtain a business license or permit for a sole proprietorship.
- SB 60 - Expanded BOLI Collections Authority. Expands the Oregon Bureau of Labor and Industries' authority to collect on judgments and orders.
- SB 373 - Deductions for Child Support. Allows either the obligee or the obligor under a support order to sue an employer who withholds support money but fails to pay.
- SB 874 - ADA Amendments Act. Conforms Oregon law with the ADA Amendments Act.
- HB 2826 - Child Labor. Increases the allowed working hours for children under 16 by one hour, two hours in the summer months.
- SB 928 - Protections for Stalking Victims. Prohibits discrimination against victims of actual or threatened stalking, sexual assault or domestic violence, and requires employers to make reasonable accommodations for such employees.
- HB 2377 - Shut Up and Drive! Prohibits the use of cell phones while operating a motor vehicle (hands-free devices allowed).
The Losers: the following bills will not become law this year, but might become law following a future legislative session.
- HB 2497; HB 3052; SB 382 - Restrictions on Medical Marijuana. Each of these bills would have allowed employers to prohibit the use of medical marijuana in the workplace.
- HB 2503 - Protections for Medical Marijuana Users. Would have prohibited discrimination based on an employee’s use of medical marijuana not on employer’s property.
- SB 427 - Drug Testing Programs. Would have allowed employers to implement broad drug-free workplace program and provide for drug and alcohol testing policies.
- HB 2821 - OFLA and Vacation Leave. Would have prevented employers from forcing employees to take accrued vacation leave when taking OFLA leave.
- HB 3053 - Paid Family Leave. Would have created an insurance program to provide benefits to those taking OFLA leave.
- HB 2692 - Revised OFLA Obligations. Would have revised OFLA so that employee returning to work from leave entitled to an available equivalent position, not the same position as before taking leave.
- HB 3053 - Minimum Wage Freeze. Would have suspended annual increase to Oregon minimum wage for years in which Oregon’s unemployment rate exceeds the national rate.
- SB 830 - Local Minimum Wages. Would have directed BOLI to calculate local minimum wages based on median income of each locality.
- HB 2692 - Punitive Damages for Whistleblowers. Would have allowed public employees to recover punitive damages in whistleblower cases.
- HB 3449 - Height/Weight Discrimination. Would have made it unlawful for employers to discriminate because of an individual’s height or weight.
- HB 2903 - Shortened Arbitration Notice. Would have reduced from two weeks to 72 hours the time that employer must give a prospective employee written notice that an arbitration agreement will be required.
- HB 2890 - Defining "Employee." Would have defined "employee" for worker classification purposes.
- SB 638 - School Activity Leave. Would have established leave for parents and guardians to attend school activities.
- SB 707 - Defamation Protections. Would have established immunity from defamation liability for employer who discloses information about employee’s job performance, unless shown to have acted in bad faith by clear and convincing evidence.
- HB 3403 - Final Paychecks. Would have given employers five days from date of termination to pay final wages to employees who are fired.
DOL Issues Final FMLA Regulations
Today the Department of Labor published its Final Regulations Implementing the Family and Medical Leave Act (FMLA). They go into effect on January 16, 2009 (60 days after publication). Click here to download the final FMLA regulations. (Warning! The document is 762 pages long! However, much of that is a handy explanation of the changes and the comments the DOL received.)
The final regulations address many aspects of FMLA, the federal law that provides eligible employees the right to take unpaid leave for certain absences, such as: the birth or adoption of a child; to care for a child, spouse, or parent with a serious health condition; or because of the employee’s own serious health condition. The final regulations also address new military family leave entitlements enacted as part of the National Defense Authorization Act, which provides leave rights to employees who provide care for covered servicemembers with a serious injury or illness.
Highlights of the final regulations include:
- Incorporation of new military family leave requirements into the regulations, with specific guidance on administering military leave
- Clarification on administering intermittent leave, including an explanation of when an employee may be transferred during intermittent or reduced schedule leave
- Clarification on employee eligibility following breaks in employment such as extended leaves
- Clarification on what constitutes a "serious health condition," including revised definitions of "incapacity" and "continuing treatment"
- Clearer guidelines for administering pregnancy and childbirth leaves
- Consolidated guidelines on adoption leave
- Clarification of how to count holidays in cases where an employee takes leave in increments of less than a full workweek.
- Clarification on administering leave to care for a parent
- A new requirement that when an employee gives less than 30 days' notice of a foreseeable leave, the employee must explain the reason for failing to give 30 days' notice
- An explanation of how much information an employer can obtain in the medical certification to substantiate the existence of a serious health condition and the employee’s need for leave due to the condition
There are many more minor changes, too many to list in a single blog post. To get the full picture, download the final regulations.
California Paid Sick Leave Bill Dies in Committee
A California bill to provide universal paid sick leave died in committee last week, following intensive lobbying efforts from small businesses and their lobbyists. The bill would have granted employees of small companies in California up to five days of paid sick leave each year, while workers at larger companies could take up to nine days a year. To read more, check out this article from the L.A. Times.
The bill was scuttled primarily due to the cost of implementation and enforcement in a year in which the state faces a $15 billion deficit. Even if it had passed, the bill faced a likely veto from Governor Arnold Schwarzenegger. The bill's sponsor, Fiona Ma (D-San Francisco), vowed to reintroduce a similar measure next year.
If passed, the law would have made California the first state to have a mandatory paid sick leave program. However, the program is not entirely unprecedented: employees is San Francisco already have a paid sick leave program. Further, since January 1, 2004, California has offered wage replacement benefits for employees who take time off from their jobs in order to care for a family member or child with a serious health condition. Want to learn more about the legislative process? Watch this.
Oregon: Leave for Olympic Athletes?
Local athletes did remarkably well at the 2008 Track and Field Olympic Trials in Eugene, Oregon, which raises an interesting leave issue. It's an obscure law, but Oregon requires employers to give Olympic athletes leave to compete. Under ORS 659.865, it is an unlawful employment practice for an employer to infringe on an employee's right to participate in any athletic event sanctioned by the national government body for that sport as recognized by the U.S. Olympic Committee. It's similarly unlawful to discriminate against employees who compete in Olympic sports. Unfortunately for this author, the law does not extend to beer pong.
Ninth Circuit Affirms "Emotional Distress Damages" Caused by Denial of FMLA Leave
The employer appealed, arguing that the jury's award amounted to an impermissible "back door" recovery of emotional distress damages under FMLA. The Ninth Circuit disagreed, holding that because FMLA allows for the recovery of "any wages ... lost ... by reason of the violation," plaintiff may recover wages lost due to emotional distress, even if he could not recover directly for the emotional injuries .
We expect to see more types of "emotional distress" claims like these in the future. While this might not qualify as a landmark ruling, be assured that plaintiff's attorneys will be following it closely and will likely be adding claims for lost wages due to emotional distress.
