Ringing Out the Old by Implementing the Best Employment Practices in the New Year
Most of us are happy to leave 2020 behind. 2020 was a year wrought with struggles both at home and in the workplace. Many companies faced closures, near closures, reduced capacities, and reduced business all because of the impact of the COVID-19 global pandemic. Companies were also hit with several new, COVID-related laws, such as paid emergency leaves of absence, furthering the burdens they were facing during an already difficult time.
It isn’t surprising that we were ready to ring in and embrace this new year. And, with the new year here, it is a good time to shift gears, reboot and regroup, and return to building better business practices. With that said, the new year provides an opportunity to proactively take a look at your company’s current employment law practices to ensure compliance with the myriad of evolving employment laws affecting your company.
Paid Family and Medical Leave and Minimum Wage
There are two laws taking effect in Massachusetts this January that are noteworthy: the paid family and medical leave law and the revised minimum wage law.
The Paid Family and Medical Leave (PFML) law takes effect in the Bay State this January. While employer obligations under PFML commenced on October 1, 2019, as of January 1, 2021, employees can begin to apply for and receive paid leave for most medical and family leaves of absence. Effective July 1, 2021, the remaining leave provisions will take effect. Under PFML, employees can take paid leaves for their own serious health condition; to bond with a newborn child; to bond with a child after adoption or foster care placement; to care for a family member with a serious health condition, or to manage family affairs when a family member is on active duty in the armed forces. All private Massachusetts employers are covered under the law regardless of their size. Leave entitlements range from 12 weeks to 26 weeks depending on the type of leave needed and employees can take leave intermittently, if medically necessary, for medical leave for an employee’s own serious health condition or for family leave to care for a covered service member or to care for a family member with a serious health condition. Intermittent leave cannot be used to bond with a child. PFML and federal FMLA run concurrently. The same is true for the Massachusetts Parental Leave Act. Employees can choose to use but may not be required to use other forms of paid time off. PFML provides job protection and restoration rights akin to the federal FMLA. Employers are required to restore employees who take leave to their previous position, or to an equivalent position, with the same status, pay, benefits, length of service credit, and seniority as of the date of leave.
On January 1, 2021, the Massachusetts minimum wage increased from $12.75 to $13.50 per hour. The service rate also increased from $4.95 to $5.55 per hour. Premium pay for Sunday retailer workers decreased. The next step to our minimum wage rise is $15.00 per hour and is slated to take effect in 2023.
Proactive Employment Steps
The new year can serve as a good reminder and placeholder for reviewing and auditing your employment practices. In doing so, it will enable you to be strategic about that piece of your business and move toward creating a detailed and updated personnel plan going forward. A good plan starts with an annual review of employment policies and manuals, written job descriptions, and employee training programs to ensure that your company is compliant with state and federal laws and that your employees are properly trained in your processes and procedures.
Well-crafted employment policies are important because they communicate expectations to employees and help insulate your company from certain legal liabilities. When crafting employment policies know that certain ones are legally required while others are a good business practice. Depending on your company’s size, required employment policies may include anti-discrimination, anti-harassment, parental leave, paid family and medical leave, and sick time. The implementation of other policies may be a good idea, such as codes of conduct, discipline and termination, workplace safety, off-duty conduct and the use of social media, drug and alcohol use and testing, use of cell phones, and use of company computer equipment and other electronic resources.
Written job descriptions are also a good practice. While not legally mandated, they can be a good tool to assess and evaluate prospective and current employees and also can reduce your company’s exposure to certain lawsuits. Accurate job descriptions that set forth the essential functions of a position can minimize liability when your company is either faced with internal requests for accommodations or external disability claims. Providing an accurate job description to an employee’s medical provider can also help determine whether an employee can perform their job with or without an accommodation or qualify for a leave of absence.
Another good business practice is employee training. Training managers and supervisors is especially important. Indeed, such trainings can help them understand company policies and their roles and responsibilities under these policies. Particularly important trainings for managers include anti-discrimination and anti-harassment, employee disabilities and recognizing requests for reasonable accommodations, and effective employee discipline and documentation. Many employment issues that eventually evolve into litigation stem from actions or inactions of managers or supervisors. Employers should regularly conduct trainings to give these key employees the knowledge and skills required to enable them to properly handle situations as they arise.
The cost of defending expensive litigation far exceeds the investment in taking proactive, preventative steps to reduce the risk of litigation. Therefore, employers should consider conducting an internal audit at the beginning of each and every new year.
Amy B. Royal, Esq. is a litigation attorney who specializes in labor and employment law matters at The Royal Law Firm LLP. The Royal Law Firm is a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Association of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council. Amy can be reached at (413) 586-2288 or aroyal@TheRoyalLawFirm.com.