Federal Minimum Wage Increases to $6.55

The federal minimum wage rate will increase to $6.55 per hour, on July 24, 2008, as the second increase from the Fair Minimum Wage Act of 2007. A current federal minimum wage poster must be displayed by every employer in a conspicuous place. The poster is available free of charge on the DOL website. Please note that if a state has a minimum wage that is higher than the federal minimum, employers subject to the state minimum wage law are obligated to pay the higher rate to employees working in that state.

Federal Contractors Required to Use E-Verify System

On June 6, 2008, President Bush amended Executive Order 12989 to require federal contractors to utilize E-Verify to confirm the legal employment status of all new employees and any existing employees working on federal contracts. E-Verfiy is a free online system operated by the Department of Homeland Security (DHS) that confirms an employee's legal employment status by comparing the employee's I-9 data against the database of DHS and the Social Security Administration (SSA). If the employer does not comply, the federal contract could be terminated.

Click here to view Executive Order 12989

Click here to view E-Verify

IRS Increases Mileage Reimbursement Rate to 58.5 Cents

Effective July 1, the Internal Revenue Service (IRS) has increased the mileage reimbursement rate to 58.5 cents per mile for employment purposes. This is up from the previous 50.5 cents per mile that was in effect for January 1 through June 30, 2008. The reimbursement for medical expense purposes is increased from 19 cents per mile to 27 cents per mile. The IRS indicated that the reimbursement rate increase was in response to the recent increase in fuel price.

Increased Fines for Employers Violating Immigration Laws

Effective March 27, 2008, the Department of Justice will enforce higher civil fines against employers who violate federal immigration laws. Fines are based on the violation involved, which could include knowingly employing an unauthorized alien, failure to comply with the Form I-9 requirements, and discrimination against a a job applicant or employee on the basis of citizenship or nationality.

FMLA Expanded to Include Military Related Leaves

On January 28, 2008, President Bush signed the National Defense Authorization Act for 2008 into law which immediately amended The Family and Medical Leave Act of 1993 (FMLA) to include two new military related leaves for service members and their families.

• Active Duty Leave requires eligible employers with eligible employees to provide up to 12 weeks of unpaid leave a year, as the time is related to an employee's service member spouse, child, or parent's active duty or impending call to active duty. This category of leave is not effective until final regulations are released. However, the Department of Labor encourages employers to comply in the interim.
• Caregiver Leave provides eligible family members (including a "nearest blood relative") up to 26 weeks of unpaid leave to care for a service member who has a "serious illness or injury."

Employers should notify employees of the new leave provisions by posting the amendment to the FMLA poster, which is available here.

Revised Form I-9 Now Available

The Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services have released the long-awaited revised version of the Form I-9. The changes make formal the revisions that have existed in previous guidance from DHS. Those changes are:

• Form I-766 (Unexpired Employment Authorization Document) has been added as an acceptable List A document.
• Form I-151 (Alien Registration Receipt Card); a Certification of U.S. Citizenship; a Certificate of Naturalization; an Unexpired Reentry Permit; and an Unexpired Refugee Travel Document are no longer acceptable documents.

DHS has also also released an Employer Handbook which advises employers on I-9 requirements, including form instructions and illustrations of what certain documents look like.

Click here to download form

Click here to download Employer Handbook

California

On July 22, 2008, the Fourth Appellate District Court of California issued a ruling in Brinker Restaurant Corporation v. The Superior Court of San Diego County regarding California's mandatory employee meal and rest periods. The court ruled that employers are required to provide a ten minute rest period for every four hours worked, but that the employer is not required to ensure that the break occurs. An employer is liable only if they knew or should have known that the employee was working "off the clock."

Colorado

Governor Ritter signed HB 1097 into law to be effective Aug. 5, 2008. The law requires employers to grant up to 15 days of leave per calendar year to non-temporary employees who are members of the Colorado Wing of the Civil Air Patrol and other affiliated volunteer emergency workers, and who are requested to respond to an authorized emergency mission. Upon return from leave, employees must be reinstated to the same or similar position they held before taking leave. The employee's seniority, retirement benefits, rank, etc. are also protected while on such leave. Government workers will be entitled to paid leave, while private employers' employees will be entitled to unpaid leave.

District of Columbia

The Accrued Sick and Safe Leave Act of 2008 became effective May 13, 2008. The Act requires most employers to provide employees with paid sick or safe leave. Employers with 100+ employees must provide seven days of paid leave a year; employers with 25 to 99 employees must provide five days; and employers with 24 or less employees must provide three days. There are a few eligibility exceptions, such as employers who are able to prove "hardship," students, independent contractors, some health care workers, and bartenders and wait staff who also receive tips. Part-time workers are eligible for a pro-rated benefit.

Florida

Effective July 1, 2008, Florida employers will need to update their policies regarding firearm possession by employees. Under the "Preservation and Protection of the Right to Keep and Bear Arms in Motor Vehicles Act of 2008," an individual has the right to lawfully possess a legally owned firearm inside a locked parked vehicle. An employer can not restrict that right and may not discriminate or terminate an employee for exercising that right.

Maine

Effective June 30, 2008, Maine's Family Leave Law has been expanded to include siblings. An eligible employee may take up to 10 weeks of unpaid leave for the serious health condition of the employee, spouse, child, domestic partner or sibling. Sibling is defined "a sibling of an employee who is jointly responsible with the employee for each other's common welfare as evidenced by joint living arrangements and joint financial arrangements."

Maryland

House Bill 40, which goes into effect October 1, 2008, requires employers with 15 or more employees who provide leave with pay to permit employees to use any type of paid leave for the illness of an immediate family member. The new law also prohibits an employer from "discharging, demoting, suspending, disciplining, or otherwise discriminating against an employee or threaten to take any action against any employee" who uses their paid leave to attend to an ill family member.

Effective April 24, 2008, Senate Bill 797 recently amended the MD Wage Payment and Collection Law by stating that an employer's written leave policy will determine whether or not the employee is entitled to be paid for accrued, unused leave upon their termination. The written leave policy must be communicated to new employees at the time they are hired.

Recently approved Senate Bill 797 clarifies that an employer is not required to pay an employee accrued leave time at the time of termination. The employer must document this policy and communicate it to employees. If the employer's policies are silent on the issue, then the employee would be entitled to payment of accrued leave time. The law does not apply to sick leave time.

Minnesota

In Lee v. Fresenius Medical Care, Inc. (2007 WL 3378653), the Minnesota Supreme Court upheld an employer's decision to deny pay out of accrued paid time off due to the employee being terminated for misconduct. An employer may place conditions on accrued leave, such as maximum accrual cap or circumstances in which the pay out will be denied, but such conditions and terms must be in the employment contract and employer policies and must not otherwise contradict state law.

New Jersey

Governor Corzine signed A-873 on May 2, 2008, making New Jersey only the third state to provide paid family leave for employees. The program is 100% funded by employee contributions. Beginning July 1, 2009, the new law will allow up to 6-weeks of paid "family temporary disability leave" during any 12-month period to enable employees to care for a newborn or recently adopted child or for a sick family member. The benefit amount will be the same as the amount paid during an employee's own state temporary disability insurance after a one-week waiting period. Employers may require employees to take up to two weeks of available sick or vacation time before using the paid family leave, which may be used during the one-week waiting period. Additionally, the law requires employees to take this paid leave concurrently with any FMLA or NJ FLA leave. Employers will be required to post and distribute the Commissioner of Labor's new notice of benefits.

Oklahoma

Effective July 1, 2008, certain provisions of The Taxpayer and Citizen Protection Act (also known as House Bill 1804) were to take effect. One provision of the Act was to require employers with a state contract to to verify the employment status of all new employees with either E-Verify through DHS or the Social Security Number Verification System through SSA. On June 4, 2008, Judge Robin Cauthron of the U.S. District Court of Western District of Oklahoma issued an injunction that temporarily haults the requirements placed on employers.

The recently enacted Taxpayer and Citizen Protection Act prohibits any employing entity in Oklahoma from terminating the employment of a U.S. citizen (or permanent resident alien) if there is an unauthorized (or illegal) alien working in a similar position and was hired after July 1, 2008. Additionally, the Act requires any private employer that is a contracted vendor of the local government to verify the work eligibility status of all new employees with a federally approved Status Verification System. Approved systems include E-Verify through the Department of Homeland Security and the Social Security Number Verification Service from the Social Security Administration.

Oregon

Effective January 1, 2008, employers with 25 or more employees in the state of Oregon must provide employees a break period for the purpose of expressing milk for nursing a child. A 30 minute break shall be provided for each 4 hour work period.

Rhode Island

The Family Military Leave Act became effective on June 23, 2008 when Governor Carcieri signed SB 2760. It permits the spouse or parent of a person called to military service lasting longer than 30 days to obtain leave from work while the service person is on military duty. If the employer has between 15 and 50 employees they shall provide up to 15 days of unpaid family military leave, while employers who employ more than 50 employees must provide up to 30 days of unpaid family military leave. The employee may continue, at their own expense, their group life, health insurance and disability insurance benefits and upon their return from leave, shall be entitled to full benefit, position, pay and seniority restoration by their employer.

Tennessee

Governor Bredesen has signed SB 3364 to take effect July 1, 2008. The new law will provide teachers with up to 10 days of leave for visitation with a spouse, child, or parent who has been deployed for out of country military duty. Teachers taking the leave may not be required to forfeit accumulated leave credits, tenure status, or other fringe benefits.

Washington

The Paid Family Leave Law, SB 5659, which will begin October 1, 2009, entitles most employees in the state up to five weeks paid family leave in order to care for an employee's child who is newly born or newly adopted. The law provides for partial compensation to those who qualify and provides certain employees with re-employment after taking the leave. Part-time employees will be eligible for a prorated benefit.

The Domestic Violence/Sexual Assault Leave Law was signed by Governor Gregoire on April 13, 2008 and takes effect immediately. This leave law allows an employee to take leave from work, with or without pay, intermittent or on a reduced scheduled basis to handle all situations that surround the occurrence of domestic violence, sexual assault, or stalking for themselves or a family member. The leave must not cause an employee to lose benefits and the employee must be restored to the same or equivalent position upon return.

Effective June 12, 2008, Senate Bill 6447 grants employees of any sized employer up to15 days of unpaid military family leave before their spouse is deployed or while their spouse is on leave from deployment. Additionally, under this bill, an employee who is a member of the Washington National Guard or Reserves will be entitled to receive 21 days of paid military leave of absence from their employer each year (up from 15 days).