New York Labor and Employment Law Report : New York Employment Lawyer & Attorney : Bond Schoeneck & King Law Firm : NY Labor Relations, Employee Benefits

As described in a September 2010 post, the Patient Protection and Affordable Care Act of 2010 (the "Act") generally prohibits all group health plans and health insurance issuers (including grandfathered plans) from imposing annual or lifetime dollar limits with respect to certain "essential health benefits" (as defined in Section 1302(b) of the Act) for plan years beginning on or after September 23, 2010. For plan years beginning prior to January 1, 2014, however, plan sponsors may apply certain "restricted annual limits" ("RAL") in accordance with the interim final regulations, issued jointly by the Internal Revenue Service, the Department of Labor, and the Department of Health and Human Services ("HHS") on June 28, 2010.

The RALs are intended to provide transitional relief to certain group health plans and health insurance issuers that currently impose annual limits on essential health benefits. However, in recognition of the difficulties that the annual limit requirements would create for existing limited benefit plans, or "mini-med" plans (e.g., a temporary health insurance plan with a $10,000 annual limit on essential health benefits), the Act authorized HHS to establish an annual limit waiver program for eligible plans or policy issuers. The waiver program is described in the June 28, 2010 interim final regulations ("IFR").

On September 3, November 5, and December 9, 2010, HHS's Center for Consumer Information and Insurance Oversight ("CCIIO") issued guidance, which explains the requirements for the annual limit waiver application process. Waivers previously granted in accordance with that guidance are valid for one year.
 

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In December 2010, we posted on the National Labor Relations Board’s (NLRB) proposed rule that would require private sector employers to post a notice advising employees of their right to join a union and of their other rights under the National Labor Relations Act (NLRA). On August 25, the NLRB adopted, by a 3 to 1 vote (Member Hayes dissenting) the Final Rule requiring the workplace notice. The Final Rule is scheduled for publication in the Federal Register on August 30 and will go into effect 75 days from that date, on November 14, 2011.

As we discussed in our earlier post, the notice will be an 11x17 inch poster, detailing employees’ rights under the NLRA. It also provides the NLRB’s contact information for use in the event an employee believes there has been a violation of the NLRA. The notice will have to be posted by November 14 both in hard copy at the worksite(s) and electronically on an internet or intranet site, if the employer customarily uses such electronic sites to communicate with employees about company rules and policies.

Despite the 7,000 comments received during the comment period, there were very few changes to the proposed rule. In particular, the Final Rule does not require that employers email the notices to employees or that the notices be printed in color. In a very small victory for management, the Final Rule does include language regarding an employee’s right to refrain from union activity.
 

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On August 17, 2011, the New York City Council passed an amendment to the New York City Human Rights Law which will impose a higher burden on employers who assert that accommodating an employee’s or prospective employee’s religious observance or practice would constitute an “undue hardship.”

The amendment defines “undue hardship” as “requiring significant expense or difficulty (including a significant interference with the safe or efficient operation of the workplace or a violation of a bona fide seniority system).” The amendment also lists various factors that will be considered in determining whether the accommodation constitutes an undue economic hardship such as:

(i) the identifiable cost of the accommodation, including the costs of loss of productivity and of retaining or hiring employees or transferring employees from one facility to another, in relation to the size and operating cost of the employer;
(ii) the number of individuals who will need the particular accommodation to a sincerely held religious observance or practice; and
(iii) the degree to which the geographic separateness or administrative or fiscal relationship of the employer’s facilities (for employers with multiple facilities) will make the accommodation more difficult or expensive.

An employee or prospective employee is still required to show that the requested accommodation does not prevent him or her from performing the essential functions of the position.

Once Mayor Bloomberg signs the bill, the law will take effect immediately, impacting New York City employers and non-resident employers who may have employees working in New York City. Employers should review their job descriptions to ensure that the essential functions of the position are accurately described. Employers who have received religious accommodation requests should engage in an interactive process with the employee and use the above factors as parameters for granting or denying a request.
 

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OSHA recently released a free application for mobile devices that is intended to enable workers and supervisors to monitor the heat index at their work sites in order to prevent heat-related illnesses. The Secretary of Labor, Hilda Solis commented, “Summer heat presents a serious issue that affects some of the most vulnerable workers in our country, and education is critical to keeping them safe.” The application, which is available in English and Spanish, combines heat index data from the U.S. National Oceanic and Atmospheric Administration with the user’s location to determine necessary protective measures. The application also provides information for supervisors on how to gradually build up the workload for employees and tips on identifying signs and symptoms of heat-related illnesses. The application further permits users to contact OSHA directly. The application is designed for devices using an Android platform. OSHA intends to release versions for BlackBerry and iPhone users shortly.

OSHA’s renewed focus on heat-related illnesses is a good reminder that the law generally requires employers to take various proactive measures to protect employees working in the heat, including, but not limited to, providing plenty of water, scheduling rests breaks in the shade or air-conditioned spaces, planning heavy work early in the day, preparing for medical emergencies, gradually building up work for new employees, and training employees on hazards related to heat illnesses. Information for employers about using the heat index to calculate and address risks posed to workers also is available through OSHA's new Web-based tool "Using the Heat Index: Employer Guidance."  OSHA's other educational and training tools about heat illnesses prevention, available in English and Spanish, can be found here. 
 

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Earlier this month OSHA announced that it will restructure the agency’s Whistleblower Protection Program.  The changes come in response to a Government Accounting Office report that was critical of the way OSHA responded to whistleblower complaints (including inconsistent practices at the Regional level and the need for more training of inspectors).  In response, OSHA has revamped the program to include the following changes: (1) a requirement that investigators interview the complainant in all cases; (2) having the program report directly to the Assistant Secretary; (3) several new training initiatives (including a national whistleblower training conference in September which will be attended by all whistleblower investigators; and (4) issuing a new edition of the Whistleblower Investigations Manual that updates current procedures and includes information on the new laws enacted (the manual was last updated in 2003).

The agency has also made a $6.1 million budget request for fiscal year 2012 to add 45 new whistleblower investigators.  The significant backlog of cases in its system is a recurring criticism of OSHA’s program.  David Michaels, the Assistant Secretary for Occupational Safety and Health, announced that the agency has eliminated the backlog of 150+ appeals and that the changes just announced should make the initial complaint intake and case processing more efficient.
 

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The issue of whether to compensate an employee for commuting time can be a difficult one where the employee does not have a single standard work location to which he reports. When the employee’s home base is his home, and he performs work at home each day before he gets on the road, is he entitled to be compensated for all time spent commuting between his home and various work sites? The United States Court of Appeals for the Second Circuit recently held no – at least not when the employee is not required to perform the home tasks immediately preceding or following required travel to other work sites.

The case was brought by a former employee of Black & Decker whose responsibilities included merchandising and marketing Black & Decker products at six Home Depot stores which were located between 20 minutes and three hours from his home by car. Black & Decker’s travel policy, adopted pursuant to a USDOL opinion letter, only paid for travel time going to a first store of the day or returning home from the last store of the day in excess of 60 miles (converted in practice to travel in excess of 60 minutes). So travel of 1.5 hours at the end of the day would only be compensated with half an hour of pay.
 

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Every employer, regardless of size, will eventually face the need to investigate a workplace misconduct issue.  Whether necessary to resolve a dispute between coworkers or to address unethical or unlawful behavior (e.g. alleged harassment of recently married same-sex couples), a properly conducted workplace investigation is a critical part of doing business.  Of course, most employers expect their HR professionals to properly handle even the most delicate investigations, and more importantly, protect the organization from potential liability resulting from either the misconduct or the investigation itself. As illustrated in a decision from the United States Court of Appeals for the Sixth Circuit upholding a jury verdict of over $1 million, juries are not reluctant to award plaintiffs substantial punitive and compensatory damage awards when employers fail to conduct proper investigations in response to complaints of workplace discrimination. For these reasons, it is imperative that every organization have a process in place to properly investigate workplace issues.

The most effective workplace investigation policies should require prompt investigation of all suspected misconduct. Employers should investigate a claim of wrongdoing even if a formal complaint is not filed. For example, the obligation to investigate may arise from an informal complaint, anonymous tip, information obtained from non-employees, information obtained during exit interviews, or any other means that brings the matter to the employer’s attention. “It wasn’t in writing,” or “she asked me to keep it confidential,” are not acceptable excuses for failing to conduct an investigation.
 

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In an earlier post, we discussed how the NLRB is handling social media cases. Three recent cases addressed by the Board’s Division of Advice further illuminate the Agency’s view of cases involving discipline of employees for using social media to discuss matters related to their employment. In all three cases the Division of Advice concluded that complaints should not be issued because the employees did not engage in “concerted activity” protected by Section 7 of the National Labor Relations Act.

In one case, the Division of Advice determined that the employer lawfully terminated a bartender after she complained on her Facebook page that she had gone five years without a raise and was not able to share in the tips waitresses were receiving. According to the Advice memorandum, she further stated that she hoped her employer’s customers would “choke on glass after they drove home drunk.”
 

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