Regulatory Updates

March 2009

Agenda

• Lilly Ledbetter Fair Pay Act – PASSED

• Healthy Families Act / Paid Sick Leave– PENDING

Lilly Ledbetter Fair Pay ActPublic Law 111-2

• Signed January 29, 2009• Impacts several existing laws

• Civil Rights Act of 1964• Age Discrimination in Employment Act• Americans with Disabilities Act• Rehabilitation Act

• Applies to claims of discrimination in compensation based upon

• Race, color, religion, sex, national origin, age, or disability

Lilly Ledbetter Fair Pay Act

• Creates a new definition of when an unlawful employment practice occurs with respect to discrimination in compensation

• When discriminatory compensation decision occurs• When an individual becomes subject to a

discriminatory compensation decision• When an individual is affected by application of a

discriminatory compensation decision, including each time wages, benefits or other compensation is paid

• Retroactive date• May 28, 2007 – applies to all claims of discrimination

in compensation pending on or after

Things we can do

• Evaluate pay policies and performance management processes

• Ensure well documented process relating to hiring, promotion and pay decisions– Retention of benchmarking information for new hires– Objective, clear performance appraisals with appropriate

documentation– Consistently applied pay increases based on performance data

• Ongoing coaching for our leaders to ensure they are using performance management tools appropriately

• Revise document retention policy regarding documents concerning compensation decisions

Healthy Families Act

• Bill S.910 of the 110th Congress (2008) – has not yet been introduced this year

• Covered employers – 15 or more employees• Requirements

– Provide not less than seven days sick leave with pay and employment benefits annually for employees working 30hrs/week or more

– Pro rata number of days or hours for employees who work less than 30hrs/week

– Sick leave accrues not less than quarterly– Incremental – can be used in hourly increments– Provided upon oral or written request by employee– Posting requirement - notice must be in a conspicuous

place & in employee handbooks– May not eliminate or reduce leave in existence on the

“date of enactment” in order to comply with the statue

Healthy Families Act

• Process for request is similar to FMLA leave– Employee must make reasonable effort to schedule

leave in advance if foreseeable, otherwise notice must be as soon as practicable

– Request must include a reason for the absence and an expected duration

– Possible reasons for leave are enumerated in the statute– Certification process for leave that covers more than 3

consecutive workdays• Penalties

– Wages, benefits or other compensation lost– Interest– Liquidated damages– Employment, reinstatement, or promotion

What we can do now

• Review existing sick leave or other paid time off policies to ensure they comply with the HFA requirements

• Make any desired adjustments to sick leave or paid time off policies prior to enactment of the statute

• Send current Sick Leave/PTO policies for review to ensure compliance with legal requirements

• Required changes will be reviewed for accounting implications

• Corporate HR will review interface between Sick Leave and STD

• Finalize the updated Policy and be ready to put it in place as the bill moves closer to signing

Questions