Blogs

2014 Florida Legislative Session Preview

 Florida’s legislative session kicks off in March, and there are several bills pending that could impact employers and employees alike.  For example, two Representatives in the Florida House of Representatives have co-sponsored a bill (HB 239) entitled the “Florida Competitive Workforce Act” which would prohibit discrimination based on sexual orien­tation and gender identity or expression.  As gender identity continues to be a growing topic in the legal system and society in general, it is anticipated that similar bills will con­tinue to be introduced.  If passed, HB 239 would become effective on July 1, 2014.

As we move closer to the opening of the legislative session, the following are summaries of additional legislation impacting employers and employees:

• HB 163, entitled the “Helen Gordon Davis Fair Pay Protection Act,” seeks, among other things, to require employers who have state con­tracts to comply with anti-discrimination and affirmative action re­quirements to ensure that women receive equal pay for equal work;
• SB 220 amends the Florida Civil Rights Act to include the prohibition of discrimination on the basis of pregnancy;
• SB 324, subject to various exceptions, prohibits employers from consid­ering an applicant’s credit history in determining compensation, terms, and conditions of employment;
• HB 385 seeks to raise Florida’s minimum wage to $10.10 per hour;
• SB 444 revises the penalties and other requirements of stop-work orders issued under the Worker’s Compensation Act; and
• HB 505 prohibits employers from inquiring into an applicant’s criminal history without first screening his or her qualifications for the position.

Other relevant topics to be addressed this session include the following: local government pension reform; employment after retirement of school district personnel; amendments to background screening of public school employees, including virtual instruction per­sonnel; and the regulation of wage theft by county ordinance.

Final Regulation Streamlines Employers’ Responsibilities Under Affordable Care Act

The United States Department of Treasury recently issued a final regulation streamlining and simplifying employers’ transition into the their shared responsibilities under section 4980H of the Affordable Care Act (“ACA”). Many employers – those who employ fewer than 50 full-time workers - will not be required to comply with ACA; however, employers that are covered will be given more time to offer health care to their employees.  In order to avoid paying an employer responsibility payment, larger employers, those with more than 100 full-time employees, will have to offer coverage to 70% of these employees by 2015 and to 95% by 2016.  Smaller businesses employing between 50 and 100 employees will have until 2016 to comply.

A press release issued by the Department of Treasury is available at the following link: Press Release.

EEOC Challenge to Separation Agreement Could Greatly Impact Employment Lawsuits

If the Equal Employment Opportunity Commission (“EEOC”) wins its recently filed law­suit, employees will not be able to release their right to file charges with the EEOC, which is often one of the motivating factors of offering severance pay and entering into separa­tion and settlement agreements.  In the Complaint filed by the EEOC on February 7, 2014 (EEOC v. CVS Pharmacy, Inc., U.S. Northern District of Illinois), CVS is accused of en­gaging in a pattern or practice of conditioning severance benefits through a Separation Agreement that violates §707 of Title VII.

The EEOC found the following features of CVS’s Separation Agreement offensive:

• The length of the Separation Agreement and the fact it was single spaced;
• A requirement that the employee contact CVS – by telephone and writing - if he/she is contacted regarding any civil, criminal or administrative investigation;
• A requirement that the employee will not disparage CVS and its officers, directors or employees;
• A standard Confidentiality Clause preventing the discussing of personnel matters such as wages, benefits and affirmative action plans;
• A standard General Release, specifically releasing any claim of unlawful discrimina­tion; and;
• A standard “Covenant Not to Sue.”

The EEOC complains that the Separation Agreement not only interferes with an em­ployee’s right to file a charge, but it also deters an employee from participating or cooper­ating with an EEOC investigation. The EEOC asks for injunctive relief preventing CVS from using the Separation Agreement and allowing any employee who entered into the Separation Agreement 300 days to file a charge of discrimination with the EEOC, regard­less of when they separated from CVS.

The EEOC’s Press Release is available at the following link: EEOC.