March 18, 2016 Practice Group: Labor, Employment and Workplace Safety Don’t Get Fooled on April 1 – Ensure You Meet the City of Seattle’s April 1 Deadline for New Employee Information and Posting Requirements Labor, Employment and Workplace Safety Alert By Suzanne J. Thomas The City of Seattle recently amended four labor standards ordinances: Paid Sick and Safe Time, Fair Chance Employment (previously Job Assistance Ordinance), Minimum Wage, and Wage Theft. The Labor Standard Ordinances are enforced by the Seattle Office of Labor Standards (OLS). OLS summarizes these ordinances as follows: • Paid Sick and Safe Time1 – requires employers to provide Seattle workers with paid sick and paid safe time for use when an employee needs to take time off from work for the employee’s or family member’s illness or a critical safety issue, including domestic violence, sexual assault, or stalking. • Fair Chance Employment2 – restricts how employers can use conviction and arrest records during the hiring process and employment. • Minimum Wage Ordinance3 – sets the minimum wage in Seattle. It will gradually increase to $15/hour. • Wage Theft4 – allows OLS to investigate workers’ complaints of nonpayment of wages and tips. It also requires employers to provide written notice to employees of their wages, tips, how they get paid, and other information. Some of the recent amendments require Seattle employers to provide employment information to workers, and post new workplace posters regarding the amendments, by April 1, 2016. Requirement 1 – Employment Information Must Be Provided to All Employees Under the Wage Theft Ordinance, a worker information sheet must be given to exempt and nonexempt employees. Employers must provide employees with written information that includes pay itemization, including gross wages, earned tips, pay basis (hour, shift, day, commission), and other information listed below. This information must be provided in English and in the primary language of the employee(s) receiving the written information. Employers must give this written notice at time of hire and before any change to such employment information, or as soon as practicable for retroactive changes to such employment information, pursuant to rules issued by OLS. Effective April 1, 2016, 1 Seattle Municipal Code 14.16 et seq. Seattle Municipal Code 14.17 et seq. 3 Seattle Municipal Code 14.19 et seq. 4 Seattle Municipal Code 14.20 et seq. 2 Don’t Get Fooled on April 1 – Ensure You Meet the City of Seattle’s April 1 Deadline for New Employee Information and Posting Requirements employers must give this written notice to all employees who work for the employer as of that date and to all future hires. If an employer fails to give this written notice, the failure will constitute evidence weighing against the credibility of the employer’s testimony regarding the agreed-upon rate of pay. The following information must be provided. 1. Name of employer and any trade (“doing business as”) names used by the employer; 2. Physical address of the employer’s main office or principal place of business and, if different, a mailing address; 3. Telephone number and, if applicable, e-mail address of the employer; 4. Employee’s rate or rates of pay, and, if applicable, eligibility to earn an overtime rate or rates of pay; 5. Employer’s tip policy, with an explanation of any tip sharing, pooling, or allocation policies; 6. Pay basis (e.g., hour, shift, day, week, commission); 7. Employee’s established pay day for earned compensation due by reason of employment; and 8. Pursuant to rules issued by OLS, other information that is material and necessary to effectuate the terms of the Wage Theft Ordinance. Each time compensation is paid, employers must give written notice that contains the following information: 1. All hours worked, with regular and overtime hours shown separately; 2. All rates or rate of pay, whether paid on hourly, salary, commission, piece rate, or combination thereof, or other basis during the pay period. Workers paid on rates other than hourly or salary are entitled to a detailed printed accounting of commissions, piece rate, or other methods of payment earned during the pay period; 3. Tip compensation; 4. Pay basis (e.g., hour, shift, day, week, commission); 5. Gross wages; 6. All deductions for that pay period; and 7. Pursuant to rules issued by OLS, other information that is material and necessary to effectuate the terms of the Wage Theft Ordinance. Requirement 2 – Employers Must Post a New Workplace Poster Issued by the Office of Labor Standards for All Labor Standards Ordinances Effective April 1, employers must post a workplace poster for all employees in a conspicuous and accessible place at the job site. The poster must be in English and in the primary language(s) spoken by employees. OLS will make a poster available that complies with this requirement by April 1, 2016, and will begin to enforce the new poster requirement at that time. 2 Don’t Get Fooled on April 1 – Ensure You Meet the City of Seattle’s April 1 Deadline for New Employee Information and Posting Requirements Requirement 3 – Employers Must Give Written Notice of Its Paid Sick and Safe Time Policy Effective April 1, employers must give employees written notice of the employer’s policy and procedure for meeting the requirements of Seattle’s Paid Sick and Safe Time Ordinance, including, but not limited to, the employer’s choice of benefit year; tier size; rate of accrual, use, and carry-over of paid sick and paid safe time hours; manner of providing employees with an updated amount of available paid sick and safe time hours each time wages are paid; and notification requirements for absences and requesting leave. OLS will create and distribute a model policy that employers may use for complying with this notice requirement. This is No April Fools’ Joke – Employees and Others Can Bring a Private Right of Action for Violation of Most of the Labor Standards Ordinances As of April 1, employers with 50 or more employees are subject to a private right of action under the Paid Sick and Safe Time, Minimum Wage, and Wage Theft Ordinances. Employees or their representatives may file labor standards complaints with a court of law, instead of filing a complaint with OLS. The private right of action goes into effect on April 1, 2017, for smaller employers. OLS Takes Its Enforcement Powers Seriously OLS will be proactive in enforcement efforts. The amendments increased OLS’s authority, enforcement powers, and penalties for failing to comply with any of the Labor Standards Ordinances. K&L Gates Seattle Labor, Employment and Workplace Safety group can help employers navigate through the amendments to help them avoid traps for the unwary. Author: Suzanne J. Thomas suzanne.thomas@klgates.com +1 206 370 6642 Anchorage Austin Fort Worth Frankfurt Orange County Beijing Berlin Harrisburg Palo Alto Paris Boston Hong Kong Perth Brisbane Houston Pittsburgh Brussels London Portland Charleston Los Angeles Raleigh Charlotte Melbourne Research Triangle Park Chicago Miami Dallas Milan San Francisco Doha Newark São Paulo Dubai New York Seattle Seoul Shanghai Singapore Sydney Taipei Tokyo Warsaw Washington, D.C. Wilmington K&L Gates comprises approximately 2,000 lawyers globally who practice in fully integrated offices located on five continents. The firm represents leading multinational corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals. For more information about K&L Gates or its locations, practices and registrations, visit www.klgates.com. This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. © 2016 K&L Gates LLP. All Rights Reserved. 3