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2013 SPRING CONFERENCE. Jeffery L. Thompson Constangy, Brooks & Smith, LLP Telephone: 478-621-2423 E-mail: jthompson@constangy.com. What Happened & What ’ s Next. 2012 - The Year In Review “ Hot Button ” Issues for 2013. Title VII and EEOC. EEOC Touts Monetary Recoveries.
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2013 SPRING CONFERENCE Jeffery L. Thompson Constangy, Brooks & Smith, LLP Telephone: 478-621-2423 E-mail: jthompson@constangy.com
What Happened & What’s Next 2012 - The Year In Review “Hot Button” Issues for 2013
EEOC Touts Monetary Recoveries • Record year for EEOC • $365 million from mediations & conciliations • $36 million from investigations of systemic charges • $44.2 million from litigation • 99,412 charges in 2012 fiscal year
Which type of EEOC Charge is the fastest growing? • Race • Age • Gender • Retaliation
Title VII Protects Transgendered Employees • Macy v. Holder (2012) • Historically, EEOC had ruled that discrimination on basis of sexual identity was not sex discrimination • Reversal: gender identity discrimination is a form of sex stereotyping
Criticism of Employer Investigation is Not Protected Activity • Brush v. Sears Holding Corp (2012) • Employee criticized harassment investigation and decision not to call police • Ct: only protected if object to acts unlawful under Title VII
Sloppy Handling of Sex Harassment Complaint Precludes S.J. • Kurtts v. Chiropractic Strategies Group (2012) • Employee made internal complaint and expressed discomfort working with accused “harasser” • Company made no effort
Failure to Accommodate Pregnant Employee May Violate Title VII • Chapter 7 Trustee v. Gate Gourmet, Inc. (2012) • Pregnant employee’s doctor imposed restrictions; supervisor says no light duty; fires her • Ct: have to at least consider whether light duty work available
Can you require an employee to get a flu shot? • Yes • No • Maybe
Refusal to Receive Flu Shot • Chenzira v. Cincinnati Children’s Hospital (2012) • Employee is a vegan; refuses mandatory flu shot based on religious belief • Ct: duty to accommodate employee’s religious beliefs
EEOC Issues ADA Guidance for Veterans With Disabilities • Preventing disability discrimination • Accommodation of veterans with disabilities
Wellness Program Fits ADA Safe Harbor • Seff v. Broward County • Employees who declined to participate in wellness program charged $20/pay period • Ct: No violation of ADA; safe harbor for insurance plans
Does the ADA require a transfer to a vacant position? • Yes • No
ADA Requires Transfer to Vacant Position • EEOC v. United Airlines 7th Cir. 2012 • Employee can not perform own job • Ct: Not sufficient to let employee compete for vacant job; duty of accommodation requires transfer • But don’t have to ignore union contract
New FMLA Rules • Final regulations issued February 5, 2013,implementing National Defense Authorization Act of 2010 • Relating to military leaves • Other changes to 2009 Regulations include intermittent leave • Effective March 8, 2013
New FMLA Regulations (Military) 1,226 Days Excluded!
New FMLA Regulations Use smallest increments of time as used for other types of leave
New FMLA Regulations – Next Steps • Employers covered by the FMLA should do the following by March 8, or as soon as possible afterward: • Update their FMLA policies in accordance with the new rule. • Replace the current FMLA poster with this one. • Make sure all FMLA Fact Sheets are up to date. • Use the new DOL notification and certification forms, or adapt their own forms to be consistent with the new ones. • Ensure that leave administrators are familiar with the changes that will take effect March 8.
Request To Take FMLA Before Eligible is Protected • Pereda v. Brookdale Senior Living Communities • 8 months after being hired Pereda advised she would need to take birth/FMLA leave in five months • Court found Pereda’s termination for poor performance 9 months after being hired was unlawful
Court Disqualifies Morgan & Morgan For Unethical Behavior • Bedoya v. Aventura Limousine (2012) • Morgan & Morgan thrown off case • threatening emails to opposing counsel • set deposition in a Dunkin Donuts • ex parte communications to company attacking company’s attorney
Pharmaceutical Sales Reps Are Exempt • Christopher v. SmithKline Beecham U.S. (2012) • Pharmaceutical reps are making sales; exempt under outside sales exemption • Overturns DOL interpretation of outside sales
On Call Time • On premises or geographical limits • Pager/cell phone/smart phone • Personal use of time
Training Time • Not compensable if: • Attendance is outside the employee’s regular working hours • Attendance is voluntary • Not directly related to job and • No productive work performed
First Amendment • Walden v. CDC • Court: Personal beliefs and values are no excuse to refusing to perform job duties
Refusal To Accept Transfer is Not Resignation Under USERRA • U.S. v. Ala. Dept. of Mental Health (2012) • Employee declined transfer to another city at end of military leave • Ct: not a resignation; employee entitled to reinstatement
Affordable Care Act Upheld • Supreme Court June, 2012 • ACA is constitutional, except for mandate for states to expand Medicaid • Several pieces already in effect
What Now? • After the election, it’s full steam ahead for implementation. • By January 2014, unless delayed: • Millions of Americans will have to obtain insurance or pay penalties, and • Insurers will be banned from denying coverage based on pre-existing conditions for all individuals.
2013 Changes • Plans must provide a participant notice regarding the upcoming exchanges (after Department of Labor issues guidance regarding the notice). • Health flexible spending account limit will be $2,500.
2014 and Beyond • Some of the additional changes scheduled for implementation are: • Establishment of state insurance exchanges. • Imposition of a penalty on large employers not offering health insurance ($2,000 per full-time employee) ($3,000 for an employee who receives tax-subsidized coverage through an exchange).
2014 and Beyond • Automatic enrollment for employers with more than 200 full time employees will be required for new full time employees, with an opt-out notice (applies to insured and self-funded plans, including grandfathered plans).
2014 and Beyond • Employers are required to provide a qualifying group health plan that meets the ACA requirements. • Provides minimum essential benefits (for fully insured small group plans, also provides all required “essential health benefits”), • Limits cost-sharing for such coverage, and • Provides either a bronze, silver, gold, or platinum level of coverage (meaning benefits that are the equivalent to (respectively) 60%, 70%, 80%, or 90% of the full benefits provided by the plan).
2014 and Beyond “Essential health benefits” include (at this point): • Laboratory Services • Preventive and Wellness Services • Chronic Disease Management • Prescription Drugs • Pediatric Services, including oral and vision care • Ambulatory Patient Services • Emergency Services • Hospitalization • Maternity and Newborn Care • Mental Health and Substance Abuse Services • Behavioral Health Treatment
2014 and Beyond • Requirement for individuals to have health insurance or pay a tax penalty. • Individuals without “minimum essential coverage” would be required to pay a penalty tax of the greater of $695 per year, up to a maximum of three times that amount per family ($2,085), or 2.5% of household income
2014 and Beyond • The penalty would be phased in accordingly: • $95 in 2014, or 1.0% of taxable income • $325 in 2015, or 2.0% of taxable income • $695 in 2016, or 2.5% of taxable income • Beginning after 2016, the penalty will be increased annually according to cost-of-living adjustment
2014 and Beyond • Beginning in 2014, the maximum waiting period an employer can impose upon an employee is 90 days. • Beginning on or after January 1, 2014, plans and insurers will be required to eliminate restrictions on plan entry based on a pre-existing condition, and they will be prohibited from excluding coverage for a pre-existing condition.
2014 and Beyond • Establishment of health care choice compacts (2016) under which two or more states form arrangements to allow individuals to purchase qualified health plans across state lines