Today, President Biden is issuing an executive order requiring federal contractors to pay a $15 minimum wage to hundreds of thousands of workers who are working on federal contracts. These workers are critical to the functioning of the federal government: from cleaning professionals and maintenance workers who ensure federal employees have safe and clean places to work, to nursing assistants who care for the nation’s veterans, to cafeteria and other food service workers who ensure military members have healthy and nutritious food to eat, to laborers who build and repair federal infrastructure.
This executive order will:
Increase the hourly minimum wage for federal contractors to $15. Starting January 30, 2022 all agencies will need to incorporate a $15 minimum wage in new contract solicitations, and by March 30, 2022, all agencies will need to implement the minimum wage into new contracts. Agencies must also implement the higher wage into existing contracts when the parties exercise their option to extend such contracts, which often occurs annually.
Continue to index the minimum wage to an inflation measure so that every year after 2022 it will be automatically adjusted to reflect changes in the cost of living.
Eliminate the tipped minimum wage for federal contractors by 2024. Federal statute allows employers of tipped workers to pay a sub-minimum wage as long as their tips bring their wage up to the level of the minimum wage. The Obama-Biden executive order raised the wages for tipped workers, but didn’t completely phaseout the subminimum wage for these workers. This executive order finishes that work and ensures tipped employees working on federal contracts will earn the same minimum wage as other employees on federal contracts.
Ensure a $15 minimum wage for federal contract workers with disabilities. To ensure equity, similar to the Obama-Biden minimum wage executive order for federal contractors, this executive order extends the required $15 minimum wage to federal contract workers with disabilities.
Restore minimum wage protections to outfitters and guides operating on federal lands by revoking President Trump’s executive order 13838 “Exemption From Executive Order 13658 for Recreational Services on Federal Lands.”
This order will build on the Obama-Biden Executive Order 13658, issued in February 2014, requiring federal contractors to pay employees working on with federal contracts $10.10 per hour, subsequently indexed to inflation. The minimum wage for workers performing work on covered federal contracts is currently $10.95 per hour and tipped minimum wage is $7.65 per hour.
This executive order will promote economy and efficiency in federal contracting, providing value for taxpayers by enhancing worker productivity and generating higher-quality work by boosting workers’ health, morale, and effort. It will reduce turnover, allowing employers to retain top talent and lower the costs associated with recruitment and training. It will reduce absenteeism, a change that has been linked to higher productivity, not just by the employees who are more present, but by their co-workers, too. And, it will reduce supervisory costs. One recent study focusing on warehouse workers and customer service representatives at an online retailer found that raising hourly wages by $1 yields a return of approximately $1.50 through increased productivity and reduced costs. As a result of raising the minimum wage, the federal government’s work will be done better and faster.
At the same time, the executive order ensures that hundreds of thousands of workers no longer have to work full time and still live in poverty. It will improve the economic security of families and make progress toward reversing decades of income inequality. Extensive, high-quality research shows that higher minimum wages have the intended effect of raising wages without significantly reducing employment outcomes. Higher minimum wages increase earnings growth for workers at the bottom of the income distribution, and those gains persist for years. A higher minimum wage, and an elimination of the tipped minimum wage, will benefit many women and people of color who likely have children and are the breadwinners in their households. It will help improve the economic security of their families and narrow racial and gender disparities in income. In addition to directly lifting the wages of hundreds of thousands of contract workers, the executive order will have impacts beyond federal contracting, as competitors in the same labor markets as federal contractors may increase wages, too, as they seek to compete for workers. Employers may seek to raise wages for workers earning above $15 as they try to recruit and retain talent. And, research shows that when the minimum wage is increased, the workers who benefit spend more, a dynamic that can help boost local economies.
The U.S. Department of Labor’s Wage and Hour Division and the Federal Acquisition and Regulatory Council will engage in rulemaking to implement and enforce this Executive Order.
DOL Proposes Its First-Ever Interpretation on Independent Contractor vs. Employee
By: Noah A. Finkel, Camille A. Olson, Louisa J. Johnson, and John R. Skelton
For decades, companies have wrestled with whether certain workers must be treated as employees subject to various employment laws and company rules or whether they are appropriately classified as independent contractors with different terms of engagement, work, and pay and tax consequences. Amid a changing economy and evolving business models, companies continue to consider the application of an alphabet soup of federal employment statutes plus the laws of the states in which they do business, many of which contain different definitions of “employee” and conversely “independent contractor,” few of which provide clear guidance on how to meet the definition of independent contractor status.
All recipients of payments from the Department of Health and Human Services’ Provider Relief Fund (PRF) are required to comply with the reporting requirements described in the Terms and Conditions and specified in future directions issued by the Secretary.
Providers that received more than $10,000 in grants will have to report on how they spent funds on coronavirus-related expenses and lost revenue in 2020 by Feb. 15, 2021. If providers do not spend all their grant funds by the end of 2020, they will be required to submit a final report on the remaining funds by July 31, 2021.
Any recipient of PRF payments may be subject to auditing to ensure the accuracy of the data submitted to HHS for payment. Any recipients identified as having provided inaccurate information to HHS will be subject to payment recoupment and other legal action.
In New York, New York, from March 1 to May 31, 2020, 201 102 individuals were diagnosed with coronavirus disease 2019 (COVID-19), resulting in 51 085 hospitalizations and 16 834 deaths.1 The Fire Department of the City of New York (FDNY), the largest in the US, responds to nearly 1.5 million emergency medical calls per year in a city of more than 8.4 million people. Active paid FDNY responders include 4408 emergency medical service (EMS) responders and 11 230 firefighters. These FDNY responders are required to don personal protective equipment before patient contact per US Centers for Disease Control and Prevention guidelines.2 In this cohort study, we compared medical leave of FDNY responders during the pandemic with prior years.
Prezant DJ, Zeig-Owens R, Schwartz T, et al. Medical Leave Associated With COVID-19 Among Emergency Medical System Responders and Firefighters in New York City. JAMA Netw Open. 2020;3(7):e2016094. doi:10.1001/jamanetworkopen.2020.16094
Days after announcing plans for Stay at Home 2.0, New Hampshire Gov. Chris Sununu announced the allocation of $40 million in aid for communities across the state dealing with the COVID-19 pandemic…
Also using the CARES Act funding, a stipend for hazard pay is being made available to police officers, firefighters, EMS personnel and correctional officers. Full-time workers will receive $300 a week, while part-time workers receive $150 a week.
The Department of Treasury has announced that the $350 billion appropriated under the CARES Act for the Paycheck Protection Program has been exhausted. However, Congressional leaders are currently negotiating an economic stimulus package to act as a bridge between the CARES Act and the next comprehensive package stimulus package. A core provision of the bridge package is an allocation of an additional $250 billion for the Paycheck Protection Program. If your operation is in the process or plans to apply for a loan under the Paycheck Protection Program, you should move forward with your efforts. The AAA is advocating that the bridge package or next comprehensive package include more funding for ambulance services.
If you are a member of the Association and have a question regarding Human Resources or Operations, please use the form below to contact Scott Moore, Esq.
As many of you are aware, the Families First Coronavirus Response Act (FFCRA) Emergency Paid Family & Medical Leave Act and Emergency Paid Sick Leave provisions become effective tomorrow, April 1st. I had hoped that the U.S. DOL would have published draft Regulations by the close of business today and prior to April 1st to give employers an indication as to how these provisions will be administered by the U.S. DOL. As of the time of this email, the U.S. DOL has not published anything aside from the Frequently Asked Question (FAQs). The U.S. DOL published FIELD ASSISTANCE BULLETIN No. 2020-1 that states that they will not bring enforcement actions against any employer who is out of compliance provided they can demonstrate that they have made a reasonable good faith effort to comply with the law. We will make sure that we notify you as soon as the draft Regulations are published to ensure your organization is compliant.
In the meantime, covered employers are required to post the Federal Employee Notice or the Non-Federal Employee Notice in the same locations that they post similar notices by April 1, 2020. Additionally, you can email it to your employees. I will tell you that there is an error on the notice that I had hoped the U.S. DOL would have provided an updated notice, but none has been published thus far. The error is in the third bullet under the section titled Paid Leave Entitlements. The maximum total amount is $10,000 and not $12,000 as printed. I have confirmed from the actual text in the FFCRA. The U.S. DOL also has published FAQs relative to the posting.
If members have questions about the FFCRA or other provisions, please contact the AAA.
The U.S. DOL issued the final rule that will update the overtime provisions of the Fair Labor Standards Act (FLSA) beginning on January 1, 2020. Under the final rule, nearly 1.3 million workers who were previously exempt from overtime pay will now be eligible. These changes, which were initially proposed by the Obama Administration in 2015, were updated under the Trump Administration this year to provide an increase to the minimum salary level under the so called “white collar” exemptions. The minimum salary level will increase from $455 per week to $684 (new level $35,568 annually) for those employees who meet the “white collar” positions as Executive, Administrative, Professional or Computer employees.
Services are encouraged to conduct an analysis of all positions that they currently pay on an exempt salary basis to ensure that these roles will continue to meet the exemption requirements under the new FLSA provisions. Assistance is available for all AAA members.
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The U.S. Department of Labor (U.S. DOL) issued the final FLSA overtime rule which will make nearly 1.3 million workers eligible for overtime pay. In the announcement published yesterday, the DOL finalized the first updates to the Fair Labor Standards Act (FLSA) in fifteen years. This ends a several-year battle over the adjustments to the FLSA which have continued since they were initially published in 2015 during the Obama Administration. The new rules become effective on January 1, 2020, which will give employers a few months to prepare.
The changes to the FLSA include updates to the standard salary level for each of the exemptions to the overtime provisions. Under the new rule, the minimum salary threshold would increase from the current level of $455 per week ($23,660 per year) to $684 per week (equivalent to $35,568 per year). In addition, the Highly Compensated Employee (HCE) salary level is increasing from $100,000 to $107,432 annually. Also, the rule permits incentive pay and bonuses to count towards up to 10% of the standard salary level provided it is paid at least annually.
These changes will require that employers conduct an analysis of any position in their organization that they believe are exempt from the overtime provisions of the FLSA. We recognize that most EMS agency’s workforce is paid on an hourly basis. However, it is still important for agencies to conduct an FLSA analysis of all positions to ensure compliance with the FLSA. This analysis should include determining if the position meets the salary basis, salary level, and the job duties tests necessary to be exempt under the law. The change to the salary level may require that employers now pay overtime wages to previously exempt employees or adjust the employee’s salary to the new level.
The US DOL has numerous resources and tools to assist employers with complying with the FLSA. These resources can be found on the DOL website. The American Ambulance Association can assist our members with evaluating how these changes might impact your organization. We will be sure to provide our members with further information and guidance, as it becomes available, regarding this or any other Human Resource or employment related issue that will impact the ambulance industry.
Following many states that have enacted laws geared towards preventing or eliminating inequities in pay between men and women, The Paycheck Fairness Act which was introduced on March 27, 2019, will prohibit employers from asking job applicants about their salary histories or using those histories to base pay or compensation rates. The Act would require that employers to justify any pay disparities as job-related and would also permit employees to file class action lawsuits based on pay discrimination. Numerous states around the country have passed laws that prohibit pay history inquiries. It is strongly recommended that employers conduct a wage analysis to identify any pay disparities between individuals from any of the protected classes performing comparable work.
On March 7, 2019, the United States Department of Labor (USDOL) issued the long-awaited Notice of Proposed Rule Making (NPRM) which proposes changes to the Fair Labor Standards Act (FLSA) overtime provisions. These proposed changes, which are detail in the 219-page document, follow nearly three years of legal actions challenging the USDOL’s 2016 proposed FLSA overtime changes.
A quick history on these proposed changes. On May 23, 2016, the USDOL issued the 2016 FLSA proposed overtime rule changes that would have more than doubled the minimum salary thresholds for the so called “white collar” overtime exemptions. Under the 2016 proposed rule, the minimum salary threshold would have increased from $455 per week ($23,660 per year) to $913 per week ($47, 476 per year) and the Highly Compensated Employee (HCE) salary level from $100,000 to $134,000 annually. Just before the changes were about to become effective, the United States District Court for the Eastern District of Texas invalidated the proposed rule stating that the USDOL lacked the authority to propose these changes. Shortly thereafter, the proposed changes were put on hold.
This latest proposed rule formally rescinds the 2016 proposed rule and would provide for updates to the standard salary level for each exemption. Under this proposal, the minimum salary threshold would increase from $455 per week ($23,660 per year) to $679 per week ($35,308 per year). The minimum threshold is based upon the 40th percentile of earnings for full time employees in the lowest wage Census Region. In addition, the Highly Compensated Employee (HCE) salary level is increasing from $100,000 to $147,413 annually. Which is based upon the 90th percentile of full-time earnings nationally. These new salary thresholds utilize the same methodology that was utilized in establishing the 2004 FLSA overtime salary thresholds. In the proposed rule, the USDOL reasoned that these methodologies must be reasonable as they have sustained since 2004 without any legal challenges.
The proposed rule also permits incentive pay and bonuses to count towards up to 10% of the standard salary level provided it is paid at least annually. This expands the requirement under the 2016 proposed rule which would have required payment quarterly. In addition, the USDOL states that they intend to propose additional rules that would provide for an adjustment to the standard salary thresholds every four years. The NPRM states that any regular adjustments to the standard salary thresholds would be subject to the Notice of Proposed Rule Making process each time any change is proposed. This is a change from the 2016 proposed rule which provided for automatic adjustments to the salary thresholds every three years to prevent the standard salary threshold from becoming outdated.
Currently, there are three major exemptions from the FLSA overtime Regulations, Executive, Administrative, and Professional. Each utilize a two-prong test to determine if the employee meets the exemption from overtime protection. The US Department of Labor has existing resources and tools to assist employers with complying with the FLSA. These resources can be found on a webpage for employers. While we recognize that most EMS agencies workforce is paid on an hourly basis and are subject to overtime pay provisions. However, it is still important to agencies to conduct an FLSA analysis of all positions to ensure compliance with the FLSA.
It does not appear that the Department has issued compliance assistance for employers that specifically addresses the latest proposed rules. The American Ambulance Association has resources available to assist our members with evaluating how these changes might impact your operation. We will be sure to provide our members with further information and guidance, as it becomes available, regarding this or any other Human Resource or employment related issue that will impact the ambulance industry.
The Equal Employment Opportunity Commission (EEOC) announced today that Estée Lauder, the beauty product manufacturer, has entered a settlement agreement in the amount of $1.1mm to settle a class action lawsuit filed on behalf of 210 male employees who allege that Estée Lauder discriminated against them on the basis of their gender. The allegations included that Estée Lauder provided “new fathers less paid leave for bonding with a newborn, or with a newly adopted or fostered child, than it provided new mothers. The parental leave policy at issue was separate from medical leave received by mothers for childbirth and related issues. The EEOC also alleged that the company unlawfully denied new fathers return-to-work benefits provided to new mothers, such as temporary modified work schedules, to ease the transition to work after the arrival of a new child and exhaustion of paid parental leave.”
The EEOC filed suit in U.S. District Court for the Eastern District of Pennsylvania last August alleging unlawful sex discrimination in violation of the Equal Pay Act (EPA) and Title VII of the Civil Rights Act of 1964. The U.S District Court entered a consent decree July 17, 2018 awarding the male members of the class action $1,100,000 in damages and requires Estée Lauder to administer parental leave and related return-to-work benefits in a manner that ensures equal benefits for male and female employees and utilizes sex-neutral criteria, requirements and processes.
The announcement of this settlement should prompt employers to examine all workplace policies to ensure that they are applied and enforced in a gender neutral manner. For AAA members who utilize the AAA Human Resources Manual, the current Parental Leave Policy as drafted, would comply with this ruling. If AAA member companies have questions or are concerned about whether their policies or practices are consistent with current law, they can contact me with questions.
Last week the Senate passed a measure (HB 4640) that would raise the Massachusetts Minimum Wage to $15.00 per hour incrementally over the next five years. The Bill would also phase out the time and a half pay that some retail establishments who currently must pay employees who work on Sundays and certain holidays and establishes a permanent tax holiday. Governor Baker and Massachusetts law makers were eager to move this initiative in an effort to block a ballot initiative.
The Bill would also establish a paid family and medical leave program for workers. The paid leave program will be funded by a new .63% payroll tax with contributions from both employers and employees. Businesses with fewer than 25 employees will not have to contribute to the fund. The program would go into effect on January 1, 2021 and would provide for up to 12 weeks of paid family leave, 20 weeks of medical leave, up to a total of 26 weeks in a year. Workers on leave would be paid a portion of their weekly wage with the average cost being $4.25 per employee per week.
The Bill has been sent to Governor Baker’s office for consideration but will likely be signed without any issue. The increase in minimum wage will have significant impact on all employers in the Commonwealth but will most certainly impact ambulance service employers who are already struggling with rising costs and decreasing reimbursement rates. When there is an increase to the state minimum wage, it impacts an employer’s entire pay scale, not just the lower wage workers.
For more details on the history of this legislative effort and the last minute political wrangling, visit Masslive.com. We will continue to monitor the developments and keep members informed.