Maintaining Compliance through Change: Federal Employment Laws

The Pre-Select Company
Oct 31, 2016
4 min read

As your business grows each year, new laws are introduced and active laws are amended. With the constant changes and evolution of federal employment laws, it can be hard to keep up with all them and remain compliant. Pre-Select created the following compliance guide covering what you might have missed so far in 2016 – and what’s coming up. New Laws: Minimum Wage Increase for Federal Contractors: Effective January 1, 2016, the minimum wage for federal contractors increased from $10.10/hour to $10.15/hour. According to the National Law Review, the increase applies to: (1) procurement contracts for services covered under the Service Contract Act, (2) procurement contracts for construction covered under the Davis Bacon Act, (3) concession contracts, and (4) contracts entered into in connection with federal property or lands that are related to the offering services for federal employees, their dependents, or the general public (The National Law Review).

Non-Retaliation for Disclosure of Compensation: Effective January 11, 2016, federal contractors are not allowed to discriminate or discharge against any employee or applicant because they have “inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant.” Covered contractors are also prohibited from having formal or informal policies that prohibit or tend to restrict employees from discussing or disclosing their compensation.

Amended Laws:

The Overtime Rule (The Final Rule): Effective December 1, 2016, the final overtime rule (an amendment of the Fair Labor Standards Act) will raise the salary threshold eligibility from $455/week to $913/week or $47,476/year. The salary threshold will be automatically updated every three years based on the wage growth over time. Overtime protections for salaried workers who are already entitled to overtime will be strengthened and greater clarity will be provided for workers and employees. Protections are extended to cover 4.2 million workers under the rule. The purpose of this rule is to make overtime easier for workers and businesses to understand. It will also put more money in the middle-class worker’s pockets, or it will give them more free time.

Increase in OSHA Penalties: Effective August 2, 2016, OSHA adjusted their penalty rates for the specified violations to increase for small businesses: Serious Other-Than-Serious Posting Requirements (Previous Maximum Fine: $7,000/Violation; New Maximum Fine: $12,471/Violation), Failure to Abate (Previous Maximum Fine: $7,000/day beyond the abatement date; New Maximum Fine: $12,471/day beyond the abatement date), Willful or Repeated (Previous Maximum Fine: $70,000/Violation; New Maximum Fine: $124,709/Violation).

What to Expect in 2017:

Pregnant Workers Fairness Act: The Pregnant Workers Fairness Act will aim to stop employers from forcing pregnant women out of the workplace and ensure that employers provide reasonable accommodations to pregnant women who wish to continue working. The act will also protect pregnant workers from retaliation, coercion, intimidation, or threats if they request or use an accommodation. This act will only apply to employers with 15+ employees. You can view an updated and comprehensive list of state-by-state laws that help expecting and new parents here: National Employment Law Project. The Pregnant Workers Fairness Act is contingent upon its passing. Federal Fair Chance Act: The Fair Chance Act will act as a federal addition to the current “Ban-the-Box” movement sweeping across states, counties and cities. Ban-the-Box is a policy that helps employers consider an applicant’s qualifications without the stigma of a criminal background by removing the box on an application that asks if the applicant has ever been convicted of misdemeanors or felonies. So far, 24 states and over 150 cities and counties have adopted the policies. The Fair Chance Act will prohibit federal agencies and federal contractors from requesting that applicants disclose criminal history record information before receiving a conditional offer. The Federal Fair Chance Act is contingent upon its passing.

Our Advice to You:

If you are unsure of which laws apply to you or do not understand a particular law, you should consult with your Human Resources Department. If you do not have a Human Resources Department, you may seek out a Human Resources Consultant. You may also consider utilizing a Credible Reporting Agency (CRA), such as Pre-Check, to handle your pre-employment background services; background checks, reference checks, credit reports and more. Similarly, Pre-Select's ATS helps to ensure you are compliant by keeping your hiring process organized every step of the way. Pre-Select keeps all of your candidates and their application status(rejected, archived, hired, etc.) in one place. Furthermore, you can maintain effective communication with Pre-Select's ATS by contacting your applicants’ right from the system. Pre-Select also provides you with targeted, analytic reports to help keep you in compliance. Other Employment Laws to Know:

Workers' Compensation: Longshore and Harbor Workers’ Compensation Act Energy Employees Occupational Illness Compensation Program Act Federal Employees’ Compensation Act Employment Benefit Security: The Affordable Care Act Employee Retirement Income Security Act Employee Protection: Equal Pay Act Uniformed Services Employment and Reemployment Act Consumer Credit Protection Act The Family and Medical Leave Act Americans With Disabilities Act Veterans’ Employment and Training Service (Veterans’ Preference)