by Jim Taylor | Oct 30, 2023 | Compliance, Diversity & Inclusion, Human Resources
In 2023, the number of lawsuits filed by the Equal Employment Opportunity Commission (EEOC) saw a significant 52% increase. This has left businesses wondering about what might happen in 2024.
As a protector of workers’ rights, the EEOC makes sure that federal laws against workplace discrimination are followed. Their main job is to guarantee that everyone is treated fairly. They aim to shield them from discrimination based on any of the following:
- Age
- Race
- Color
- Gender
- Religion,
- Place of origin
- Others
The EEOC is very dedicated to being fair and ensuring everyone is treated equally. To do this, it splits its efforts into three ways: providing education, prevention, and investigating complaints of discrimination. Its ultimate goal is to create a job market where every individual can participate and thrive, free from the burden of unjust bias or prejudice.
Based on recent behavior, companies can expect the EEOC to proactively address discrimination in the following year. Here, Chicago-based company, Launchways provides insights into the EEOC’s anticipated influence through 2024.
The EEOC’s Mission Intensifies
During fiscal year 2024, which started on October 1, the EEOC is set to intensify its efforts. This predicted increase in activity is partly due to a significant budget increase of 6%, amounting to an additional $26 million in funding. This financial boost underscores the government’s commitment to protecting workers’ rights.
Another factor is that the EEOC is now under the control of the Democratic party. After a year-long tie, the senate approved democrat Kalpana Kotagal to the five-chair committee. The democrat-rich EEOC is more likely to aggressively pursue all kinds of unfair treatment at work.
The EEOC’s plans include taking legal action against discrimination and identifying new forms of bias. In the year that ended on September 30, 2023, the EEOC filed 143 lawsuits. Some of these were about widespread discrimination. For example, one well-known case accused Tesla of worker discrimination at their factory in California.
What’s more, the EEOC is very determined to deal with new challenges in the workplace. For example, EEOC recently solved its first case involving AI bias. An international tutoring company, iTutorGroup, was using artificial intelligence to hire employees. They were required to pay $365,000 because the AI was picking candidates unfairly.
As the commission becomes more determined, employers should stay watchful. They should make sure to maintain a workplace that is fair, free from discrimination, and open to all employees.
What Can Employers Do?
Employers must take proactive steps to ensure compliance with anti-discrimination laws. Here are some key actions that businesses can take to promote fairness and prepare for the expected surge in EEOC lawsuits in 2024:
- Review and Update Policies: Employers need to carefully check their workplace rules. Look for regulations regarding discrimination, harassment, and equal chances. Making sure these rules cover everything, stay current, and are well explained to employees is really important.
- Provide Training: Teach employees and managers about anti-discrimination laws and rules. Regular training can make people aware and show them how to deal with discrimination at work.
- Set Up Reporting Systems: Make clear and private ways for employees to report discrimination. This is crucial for stopping issues before they get worse.
- Investigate Quickly: When there are complaints about discrimination, employers should immediately investigate. This not only solves problems but also shows that they are serious about fixing discrimination.
- Encourage Diversity and Inclusion: Building a diverse and inclusive workplace isn’t just a legal rule; it’s also the right thing to do. Employers can take steps to bring in more diversity at all levels of the company, making a place where all employees feel respected and valued.
What Is the Takeaway?
As we look ahead to 2024, it’s evident that the EEOC’s role in combating workplace discrimination will continue to be prominent. Employers should understand the changing rules and the EEOC’s dedication to strategically enforcing them.
The main idea for businesses is that being proactive is the best way to protect against possible EEOC lawsuits.
Employers can create a workplace that follows the law and treats all employees fairly by taking these steps:
- Checking and improving company policies
- Offering training
- Setting up reliable reporting systems
- Promptly investigating issues
- Promoting diversity and inclusivity
In the end, protecting workers’ rights and preventing discrimination benefits both employees and employers. With the right actions in place, businesses can navigate the evolving workplace rules and help build a more just and inclusive future.
by Jim Taylor | Sep 25, 2023 | Compliance, Employee Benefits, Human Resources
The Retirement Savings Crisis
The Securing a Strong Retirement Act, also known as SECURE Act 2.0, was signed into place in December 2022. This law introduced new rules and requirements for retirement plans, all aimed at helping Americans save more money for their retirement. This comes as good news for working Americans who worry that they won’t have enough money when they retire.
A 2021 report from the National Institute for Retirement Security highlighted how a lot of U.S. workers are concerned about their retirement savings. It showed that most people believe there’s a real crisis, and many fear they will have to work beyond the age of retirement just to survive. For them, the new rules from SECURE Act 2.0 could be considered a lifesaver.
Unfortunately, however, they are causing real challenges for organizations. Those who rely on manual processes to make sure they remain compliant may find them especially challenging.
The new regulations will be enforced starting on December 31, 2024. That means organizations need to get ready pretty quickly.
Understanding SECURE Act 2.0
To better understand these new rules and what organizations need to do to prepare, let’s take a closer look at the details.
- Section 101: Automatic enrollment is required for all new 401(k) and 403(b) plans implemented after December 29, 2022. Additionally, enrollment must be set between 3% and 10% of the employee’s pay and increased by 1% each year until it reaches 10% to 15%.
- Section 125: Reduced eligibility requirements for 401(k) plans make it easier for part-time workers to join 401(k) plans. Instead of three years, employees must have worked at least two consecutive years, with at least 500 hours of work each.
- Section 603: Catch-up contributions are available for individuals 50 years or older, who earned over $145,000 last year. It allows them to classify catch-up contributions as Roth contributions. This offers significant tax benefits.
Unfortunately, these changes make it more complicated for companies needing to update their systems to handle these new rules.
Overcoming Implementation Challenges
Following these new rules can be really hard for smaller organizations because they have to do a lot of things manually. Unfortunately, the manual approach makes it more likely that human error in the process will go unnoticed until it’s too late. The potential consequence of this oversight can be extreme. Your company could face fines for even one tracking error.
Therefore, it’s vital to begin preparing for compliance immediately if you are affected by SECURE Act 2.0’s Section 125 and/or Section 603.
Does your company have the necessary technology in place to face this and the other challenges it faces?
Technology Solutions for Compliance
To ensure compliance, companies require the right technology. They need to be able to transfer a lot of data between their systems and the retirement plan providers’ systems. This includes payroll details and other sensitive personal identifiable information (PII).
Companies can choose from various methods including:
- Manual Data Entry
- SFTP
- Custom Integrations
- Unified employment APIs
Each has its benefits. The more automated the system is, the more accurate it is. The simpler and less expensive the method is, the more likely it is to result in costly mistakes.
Getting help from professional retirement advisors can help you assess your options and make the right choice for your company.
The Role of Retirement Advisors
Ideally, you should be planning and securing the support and tools you’ll need for 2.0 now. To ensure your company’s retirement landscape remains compliant, consider seeking the assistance of a professional retirement advisor. Advisors can:
- Inform you of important deadlines and keep you on track.
- Help you choose the right retirement plans.
- Explain what your company needs to do to follow the rules.
- Ensure compliance and safeguard you from legal consequences.
- Recommend tools to make sure the company is ready for the changes.
The right retirement advisor can be a valuable asset for companies wishing to identify and avoid potential pitfalls before SECURE Act 2.0 goes into effect.
A Final Note
With a looming retirement crisis, the need for change is apparent. SECURE Act 2.0 aims to provide opportunities for US workers to save for a secure retirement. Unfortunately, the manual processes used by many organizations present an increased risk of errors that could result in non-compliance.
Therefore, it is essential for plan providers and employers to begin enlisting support and implementing the correct technology to automate their systems. With the right resources, you should be able to seamlessly integrate your systems, reduce errors, and ensure compliance with SECURE Act 2.0–effectively and on time.
by Jim Taylor | Sep 20, 2023 | Compliance, Employee Benefits, Human Resources
For many people, the workplace is their home away from home. For others, work is conducted from home. Regardless of whether you have a traditional work day or enjoy a remote or hybrid work schedule, you occasionally need a little flexibility in your life. During those times of need, many turn to FMLA to provide a bit of breathing room.
The Family and Medical Leave Act (FMLA) is a federal law that offers eligible employees of certain employers the right to take unpaid, protected leave for specific family and medical reasons. Covered employers must also maintain employees’ health benefits during this leave and guarantee their return to the same or equivalent positions afterward.
Many companies are subject to FMLA. These consist of public agencies and public or private schools, regardless of size. It also includes private-sector employers that have 50 or more employees during 20 or more workweeks in the year.
If your company falls under FMLA’s jurisdiction, this useful checklist can help ensure your compliance with FMLA.
FMLA Requirements
If your company falls under FMLA jurisdiction, you are required to display the FMLA poster where employees and applicants can easily see it. You can either use the U.S. Department of Labor’s (DOL) model poster or create your own.
You should also provide your employees with general notice about FMLA leave in the employee handbook. You can use the DOL’s model as an example. Your written materials regarding leave and benefits must contain all of the same information as the DOL’s model.
You are also required to maintain records related to FMLA compliance for at least three years.
Administering FMLA
The steps for administering leave are fairly straightforward. You should have an established method for tracking FMLA leave usage, including intermittent or reduced scheduled leave. You can create your own forms for administering FMLA leaves or use the DOL’s model forms.
Train your managers on FMLA compliance. They should be able to identify qualifying leave requests. It is also important that they understand the laws prohibiting interference and retaliation for requesting or taking leave.
Determining Eligibility for FMLA Leave
Eligibility for leave is based on specific criteria, the reason for the request, and whether the employee has available FMLA leave. To be eligible, an employee must meet the following requirements:
• Work for a company covered by the FMLA
• Worked for the company for at least 12 months
• Worked at least 1,250 hours for the company during the 12 months prior
• Works at a company with at least 50 employees
Qualifying reasons include caring for a newborn or adopting a child, dealing with a serious health condition, and military-related exigencies.
Eligible employees can take up to 12 weeks within a 12-month period.
Leave Process
Employers have the right to request a doctor’s note if an employee needs time off due to their own or a family member’s severe health issue. You can also ask for certification if the leave is related to military family matters. The Department of Labor (DOL) has standard forms like Form WH-381 that you can use for this purpose.
When an employee asks for leave, they should be told about this requirement. If medical certification is needed, they should be given the proper form along with the Notice of Eligibility and Rights & Responsibilities. They should have up to 15 calendar days to return it.
The Designation Notice states whether you decide to approve or decline FMLA leave. It should be given within five business days of the leave request (or when the certification is submitted if needed). You can use the DOL’s standard Designation Notice (Form WH-382) for this.
In Conclusion
As responsible employers, it’s vital to uphold certain standards to support your employees during their Family and Medical Leave Act (FMLA) journeys. It’s essential to remember that the specifics of FMLA compliance can differ based on unique situations and the presence of state or local regulations. This commitment to FMLA compliance not only benefits your employees but also strengthens your company’s commitment to their well-being and job security. You can use this as a guide to ensure the best support to your employees during their time of need. Review your company’s FMLA compliance, check out The 7 Steps for FMLA Compliance, and contact Launchways for further assistance.
by Brian Beyerbach | Aug 3, 2023 | Compliance, Diversity & Inclusion, Human Resources, Mental Health in the Workplace
There are several reasons companies should pay attention to the potential Equal Employment Opportunity Commission (EEOC) trends for 2023 and prepare accordingly. As the EEOC targets which areas of human rights and protection it wants to focus on for the next few years, companies scramble to anticipate where they might be falling short. One key area of focus is on promoting diversity and inclusivity within the workplace, particularly concerning the LGBTQ+ community and ADA rights.
The EEOC has indicated that it will be closely monitoring the treatment of LGBTQ+ individuals in the workplace, particularly with regard to harassment and discrimination. Companies should take proactive measures to create a safe and inclusive workplace for all employees, regardless of sexual orientation or gender identity.
In addition to promoting diversity, companies should also consider implementing training programs to educate employees on the importance of creating an inclusive workplace. This includes providing resources and support for LGBTQ+ employees, such as employee advocacy groups and non-discrimination policies.
What is driving the EEOC trends, and what can businesses do to prepare?
Litigating Power in 2023
The EEOC is composed of five individuals. In 2023, it is anticipated that the political balance will tip to the left and there will be a democratic majority. With the goal of worker equality through employer accountability and employee recourse, the EEOC democratic majority could flex its power to investigate and prosecute cases of discrimination.
Add to that, the 60-million dollar budget increase, and the commission will have the motive and the means to more aggressively pursue EEOC-Initiated Litigation for the foreseeable future.
Protecting Diversity in Industry
As the primary federal agency responsible for enforcing laws against discrimination in the workplace, the EEOC recently released its Strategic Enforcement Plan (SEP) for 2023 through 2027.
During the fiscal year 2022, its plan of action included the following:
- Addressing selected developing issues
- Preventing systemic harassment
- Eliminating recruiting and hiring barriers
- Protecting vulnerable workers
- Ensuring equal pay protections
- Preserving access to the legal system
To that, the proposed SEP for 2023-2027 includes additional measures to protect people with pregnancy-related medical conditions and LGBTQ+ individuals in the workplace.
Diversity has been missing in many industries, including construction and many high-tech fields, which are rapidly growing sectors that receive a lot of governmental support. This is something that needs to be addressed urgently.
Systemic cases are generally given priority when it comes to pursuing legal action against discrimination. However, if an individual or a small group brings up a policy, practice, or pattern of discrimination that needs to be addressed, then their claim may also be considered.
Recent Trends in Litigation…
Recently, some of the worst cases of discrimination the EEOC has uncovered have been in the construction industry.
Due to the $1.2 trillion federal Infrastructure Investment and Jobs Act, Congress passed in 2021, the EEOC feels obligated to ensure the massive budget isn’t used to haphazardly promote or enable harassment or discrimination in the field. During the last half of 2022, the EEOC filed multiple lawsuits with construction firms that resulted in $2.8 million in settlements.
Further LGBTQ+ Protections
In 2020, the U.S. Supreme Court determined that Title VII of the Civil Rights Act of 1964 could be used as the grounds for sex discrimination cases since gay or transgender employees would fall under its umbrella of protection. As mentioned in their report, this was seen as an incredible victory for the EEOC.
Considered a leader in promoting people’s rights within the LGBTQ+ community, the EEOC is constantly striving to expand its protections under existing statutes. Further expanding laws like Title VII could help maximize their enforcement efforts to ensure that everyone is treated fairly.
Republicans, however, could claim that this effort by the EEOC to push LGBTQ+ rights beyond their current scope is an abuse of its power. They may push back.
Similarly, in June 2021, the EEOC issued guidance to businesses giving LGBTQ+ workers exemptions from workplace policies on dress codes and regarding bathrooms and locker rooms. A later federal ruling sided with critics and stated that using the 2020 ruling as the legal precedent for expanding Title VII was premature. It basically concluded that the ruling is not definitive and there was much to be considered and many areas to be litigated in the future.
To Conclude…
By making the effort to build an atmosphere of inclusivity in the workplace, employers can invite greater diversity to their company. This creates a more positive setting for a productive workforce and encourages a broader range of new talent, which is a win-win for all involved.
By prioritizing diversity and creating an environment where workers feel included and valued, companies will be better equipped to navigate possible legal challenges and avoid litigation related to discrimination.
by Jim Taylor | Apr 25, 2023 | Compliance, Human Resources
With the growing number of hybrid and remote workers, keeping up with all the regulatory complexities has become a daunting task. Recent research shows that many employers have adjusted their leave policies to better meet the demands of their staff and match corporate values, as well as keep up with industry standards.
This has the potential to benefit workers and companies. Global Workplace Analytics reports that nearly 60% of employers believe embracing a workforce that includes hybrid and remote workers could save the company money. If those who wished to work remotely did so at least half of the time, businesses could see big reductions in their operating expenses.
By offering an attractive leave policy designed to accommodate these employees, they can draw top talent while saving money.
Managing employees’ leaves can be complicated, especially when required to comply with multiple state leave laws. However, it is doable. By addressing the most cited concerns, businesses can make their policies more efficient while remaining compliant.
Revising Worker Leave Practices
Despite considerable efforts to ensure they stay compliant with industry standards and government regulations, many companies are finding it challenging to establish all-encompassing personal leave policies. Managing a dispersed workforce of a combination of hybrid and remote employees can make it even more difficult for HR leaders who struggle to stay up-to-date with regulations and take advantage of financial opportunities while providing employee support.
This can put a strain on their resources and become overwhelming.
HR teams should be aware of the ever-changing workforce dynamics, and a 2023 NFP Leave Management Report from benefits consultants at NFP provides an outline suggesting the primary practices for leave policies that make sure they remain compliant.
The report recommends that employers put more effort into examining their benefits policies across the following areas.
PTO, Sick Time, and Vacation
Compared to a conventional vacation policy, a PTO (Personal Time Off) policy is more flexible and offers employees an allotment of time that they can use for sick days, personal activities, or even vacations, as outlined by their employer. With this type of plan, employees do not need to specify the reason for taking their time off, making PTOs a practical solution for companies.
Often, employers prefer more regulation over how paid time off is used. Studies have shown, though, that people usually take less time off when they’re allowed an unlimited amount of PTO.
The best approach to forming a sick leave policy is to research the maximum state-required leave that an employer must provide and, if feasible, create a policy that meets or exceeds that amount. This ensures compliance with government regulations and also protects the interests of both employer and employee.
PTO generally begins accruing upon hiring, but some companies offer the yearly allotment as soon as the employee is hired.
Parental Leave
Although parental leave is usually granted to the mother when a child is born, an optimal approach ensures that all parents have the same leave policy. This protects birth, adoption, and fostering parents wishing to build a close relationship with their new child.
Establishing impartial policies that provide for all types of parental leave for all parents while adhering to federal and state regulations offers employee equality and simplifies management for employers.
Maternity
Shockingly, 42% of employers don’t coordinate their maternity leave with short-term disability plans, and a whopping 63% fail to do the same with state medical leave benefits. Generally, the state pays first, and then short-term disability covers a percentage.
By providing salary continuation, employers can supplement the existing benefits from short-term disability and/or state-provided benefits for their employees. Thereby ensuring that their staff is being completely provided for during those times.
Family Caregiver
There has been a notable uptick in employers providing family caregiver leave to their staff over the last few years. However, over half of the companies that offer this benefit allow fewer than six weeks of paid time off.
Millions of U.S. workers care for their elderly and disabled loved ones. Enabling employees to take time as needed to attend medical appointments and care for their families grants employees the chance to manage both their work and personal life while preserving productivity on the job.
In Conclusion
Whether managing a company’s employee leave program is handled by the owner or manager, an internal HR team, or an outside benefits consultant, offering flexible leave is a popular and progressive trend. Although it might seem complex initially, it all begins with compliant and comprehensive leave policies and procedures.
There are ways for forward-thinking companies to manage the process while remaining compliant. Ultimately, it might be mutually beneficial.
by Jim Taylor | Mar 31, 2023 | Compliance, Human Resources
As the nature of the contemporary workplace evolves, your policies must reflect the changing times. With the rise of remote work, digital tools, and new regulations, there are many key changes to consider for your 2023 employee handbook.
An employee handbook is an essential tool for any organization. It sets out the expectations, terms, and conditions of employment while reducing potential legal risks. This document should not be overlooked if you want to ensure compliance with government regulations.
No matter how comprehensive your current employee handbook is, it can become outdated quickly due to changes in the law and the world. Therefore, employers should ensure that their handbook covers all the essential policies, as well as any new developments in their workplace. This will guarantee your employee handbook is up-to-date and compliant in 2023.
Changes in Work Time Policies
The COVID-19 pandemic has triggered a dramatic shift in workplace dynamics. No longer satisfied with the traditional 9-to-5 workday model, modern employees are increasingly opting for flexible working hours. This has made way for the emergence of remote work, hybrid work, and flexible work hours.
To ensure the successful management of these new work structures, businesses need to implement sound policies. This would include key points, such as, but not limited to, the following:
- Which employees are eligible
- Attendance expectations
- How time off and breaks are tracked
- How overtime is compensated
Having such a policy in place ensures everyone is on the same page and enables operations to remain smooth.
Communicable Disease Policies
During the Covid 19 pandemic, many companies introduced protocols to ensure the safety and well-being of their employees. These included rules around staying home if unwell, wearing masks, getting vaccinated, maintaining social distancing, and having regular tests conducted.
Companies should reevaluate their existing policies and update them so that they are not only applicable to the Covid pandemic but any potential future communicable disease or virus. This will help ensure that businesses are well-equipped to handle such occurrences with minimal disruption.
Diversity, Equity, and Inclusion
Incorporating a Diversity, Equity, and Inclusion (DEI) mission statement in the employee handbook sends a strong statement to employees that the company is committed to DEI. If that seems too bold, consider using the word “employee” and “they/them” throughout the handbook instead of gender-specific pronouns.
Pay close attention to any company leave policies and make sure they are not exclusive. Providing additional medical benefits when an employee gives birth may lead to discrimination cases from other staff members who have medical issues unrelated to childbirth that require them to miss work.
Offering a paid medical leave benefit regardless of the reason is not only more equitable but also provides cover for more scenarios. This should be prioritized over only providing it for childbirth-related issues.
Progressively, companies are shifting from “maternity” leave to “parental” or “caregiver” leave for bonding with a child. This type of benefit should also be available to families who adopt, use surrogacy, or foster care when growing their family- not just those who experience childbirth.
Security and Privacy Protection Policies
To ensure a safe and secure work environment, employers should regularly update their security policies and procedures for both in-office and remote workers. They should also update their social media policies to further protect confidential information and address any potential privacy concerns.
Ensure Employee Handbook Compliance
It’s no good having an employee handbook if employees don’t know what it is or how to access it. To make sure everyone knows where to find the handbook, you should have an electronic version with embedded hyperlinks for swift navigation.
These can include links for applying for benefits, emails for contacts, and links to other related policies. Rather than relying on hardcopy employee handbooks, organizations now have the ability to keep policies up-to-date electronically. This makes it easier for them to make amendments quickly, without having to print out and distribute new versions.
It is essential to review and update employee handbooks with legal counsel every year in order to stay up to date with the ever-evolving work environment, pertinent laws and regulations, and also promote fairness and inclusivity throughout the organization. This process helps establish a strong company culture.
