Pennsylvania Legislative Update prepared for the 2010 Legal and Legislative Conference Pennsylvania State Council of SHRM, Inc.* presented by Jonathan A. Segal, Esq. *No statements made in this seminar or in the written materials should be construed as legal advice pertaining to specific factual situations. ©2010 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP. Duane Morris – Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia | San Diego | San Francisco | Baltimore | Boston | Washington, D.C. Las Vegas | Atlanta | Miami | Pittsburgh | Newark | Boca Raton | Wilmington | Cherry Hill | Princeton | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP – A Delaware limited liability partnership DM2/2208118.1 www.duanemorris.com I. PROPOSED PENNSYLVANIA BILLS www.duanemorris.com 1 SENATE BILL NO. 1080 PENNSYLVANIA HUMAN RELATIONS ACT www.duanemorris.com 2 Pennsylvania Human Relations Act Section 1. Section 4(b) of ….Pennsylvania Human Relations Act….is amended to read: www.duanemorris.com 3 Pennsylvania Human Relations Act Section 4. (b) The term “employer” includes the Commonwealth or any political subdivision or board, department, commission or school district thereof and any person employing [four] one or more persons within the Commonwealth, but www.duanemorris.com 4 HOUSE BILL NO. 300 PENNSYLVANIA HUMAN RELATIONS ACT www.duanemorris.com 5 Pennsylvania Human Relations Act Section 4. Definitions. – As used in this act unless a different meaning clearly appears from the context: (bb) The term “sexual orientation” means whether actual or perceived heterosexuality, homosexuality or bisexuality. (cc) The term “gender identity or expression” means actual or perceived gender identity, appearance, behavior, expression or physical characteristics whether or not associated with an individual’s assigned sex at birth. www.duanemorris.com 6 HOUSE BILL NO. 164 PENNSYLVANIA HUMAN RELATIONS ACT www.duanemorris.com 7 Pennsylvania Human Relations Act Section 4. Definitions. – As used in this act unless a different meaning clearly appears from the context: (bb) The term “breastfeeds” means the feeding of a child with breast milk directly from the breast. www.duanemorris.com 8 HOUSE BILL NO. 1561 MINIMUM WAGE ACT www.duanemorris.com 9 Minimum Wage Act Section 4. Minimum wages. – Except as may otherwise be provided under this act: (9) Beginning January 1, 2010, and each succeeding January 1 thereafter, the minimum wage shall be increased by an annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware and Maryland area, for the most recent twelve month-period for which figures have been officially reported by the United States Department of Labor, Bureau of Labor Statistics sixty days prior to the date the adjustment is due to take effect, to the then current salary amounts. www.duanemorris.com 10 HOUSE BILL NO. 1830 HEALTHY FAMILIES, HEALTHY WORKPLACES ACT www.duanemorris.com 11 Healthy Families, Healthy Workplaces Act Section 4. Accrual of paid sick leave. (a) General rule. – Except as provided for in subsection (b), employers shall provide a minimum of one hour of paid sick leave for every 40 hours worked by an employee. Employers are not required to provide more than 52 hours of sick leave for an employee in a calendar year. www.duanemorris.com 12 Healthy Families, Healthy Workplaces Act Section 4. Accrual of paid sick leave. (b) Exception. – Employers that employ fewer than ten individuals shall provide a minimum of one hour of paid sick leave for every 80 hours worked by an employee. Employers under this subsection are not required to provide more than 26 hours of paid sick leave in a calendar year. www.duanemorris.com 13 Healthy Families, Healthy Workplaces Act Section 5. Use of paid sick leave. (a) General rule. – Paid sick leave shall be provided to an employee by an employer or small employer for: (1) An employee’s mental or physical illness, injury or health condition or need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition or need for preventive medical care. www.duanemorris.com 14 Healthy Families, Healthy Workplaces Act Section 5. Use of paid sick leave. (a) General rule. – Paid sick leave shall be provided to an employee by an employer or small employer for: (continued) (2) Care of a spouse, child, parent, grandparent or extended family member, or any other individual related by blood or affinity whose close relationship with the employee is the equivalent of a family relationship, with a mental or physical illness…. www.duanemorris.com 15 Healthy Families, Healthy Workplaces Act Section 5. Use of paid sick leave. (a) General rule. – Paid sick leave shall be provided to an employee by an employer or small employer for: (continued) (3) Absence necessary due to domestic violence, provided the leave is to: (i) (ii) (iii) (iv) (v) Seek medical attention for the employee or employee’s child, spouse, parent, grandparent or extended family member …. Obtain services from a victims’ services organization. Obtain psychological or other counseling. Seek relocation due to the domestic or sexual violence or stalking. Take legal action….related to or resulting from the domestic or sexual violence. www.duanemorris.com 16 Healthy Families, Healthy Workplaces Act Section 9. Enforcement. (e) Class action. – Actions brought under this section may be brought as a class action pursuant to the laws of this Commonwealth. www.duanemorris.com 17 Healthy Families, Healthy Workplaces Act Section 10. Confidentiality and nondisclosure. If an employer possesses health information or information pertaining to domestic violence about an employee or employee’s child, parent, spouse, extended family member or other individual described in section 5, the information shall be treated as confidential and not disclosed except pursuant to the Health Insurance Portability and Accountability Act of 1996. www.duanemorris.com 18 HOUSE BILL NO. 2045 WAGE PAYMENT AND COLLECTION LAW www.duanemorris.com 19 Wage Payment and Collection Law Section 1. Sections 10 and 11.1….of the Wage Payment and Collection Law….are amended to read: www.duanemorris.com 20 Wage Payment and Collection Law Section 10. Liquidated Damages. Where wages remain unpaid for thirty days beyond the regularly scheduled payday....the employee shall be entitled to claim, in addition, as liquidated damages an amount equal to [twenty-five percent (25%)] three hundred percent (300%) of the total amount of wages due, or five hundred dollars [$500], whichever is greater. www.duanemorris.com 21 Wage Payment and Collection Law Section 11.1. Criminal Penalties. (b) In addition to any other penalty or punishment otherwise prescribed by law, any employer who violates any provisions of this act shall be guilty of a [summary offense] misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than [three hundred dollars ($300)] two thousand, five hundred dollars ($2,500), or by imprisonment up to 90 days, or by both, for each offense. www.duanemorris.com 22 II. PHRC PROPOSED GUIDANCE ON CRIMINAL CONVICTIONS www.duanemorris.com 23 PHRC Proposed Guidance on Criminal Convictions 1. Premise a. African Americans and Hispanics have criminal convictions at a rate disproportionate to their representation in the Commonwealth of Pennsylvania b. Employers often exclude from consideration applicants with convictions so that certain minorities are disproportionately excluded www.duanemorris.com 24 PHRC Proposed Guidance on Criminal Convictions 2. Presumption a. Presumption of disparate impact if employer excludes applicant based on conviction if applicant is African American or Hispanic b. No need to show disparate impact in decisionmaking by employer c. Societal adverse impact attributable to each employer www.duanemorris.com 25 PHRC Proposed Guidance on Criminal Convictions 3. Overcoming the Presumption a. Statistical defense: utilize conviction data from a more limited geographical boundary than the entire Commonwealth of Pennsylvania b. Business necessity defense: must demonstrate “unacceptable level of risk” www.duanemorris.com 26 PHRC Proposed Guidance on Criminal Convictions 4. Factors in Determining “Unacceptable Level of Risk” a. Circumstances, number and seriousness of the prior offense(s) b. Whether each conviction substantially relates to applicant’s suitability for the job c. Length of time that has elapsed subsequent to conviction or release from prison—presumption against business necessity if 7 years or more since offense and no new offense d. Evidence of rehabilitation (employment history, education, drug or alcohol treatment, etc.) www.duanemorris.com 27 PHRC Proposed Guidance on Criminal Convictions 5. Less Discriminatory Measures a. Even if employer can demonstrate business necessity, applicant still prevail if can show less discriminatory alternative b. At a very minimum, litigation issue www.duanemorris.com 28 PHRC Proposed Guidance on Criminal Convictions 6. Problems a. Constitutional: mandating differential treatment of applicants based on race or national origin www.duanemorris.com 29 PHRC Proposed Guidance on Criminal Convictions 6. Problems (continued) b. Inconsistent with case law: i. To bring disparate impact claim, plaintiff must demonstrate the employer’s policy or practice has disparate impact. El v. Septa, 479 F.2d 232 (3d Cir 2007) ii. To prove employer’s policy or practice has disparate impact, statistical evidence is not enough. Plaintiff must prove a “strong basis in evidence.” Ricci v. DeStephano 128 S.Ct. 2658 (2009) www.duanemorris.com 30 PHRC Proposed Guidance on Criminal Convictions 6. Problems (continued) c. Unnecessary because of existing: i. Title VII protections ii. PHRA protections www.duanemorris.com 31 PHRC Proposed Guidance on Criminal Convictions 6. Problems (continued) d. Inconsistent with PA statute on criminal conviction i. PA law on criminal convictions—convictions (and not arrests), suitability for job, written notice to applicant—18 PA. C.S. 919 et seq. ii. De facto new protected group—minorities with conviction (only legislature can create new protected groups) www.duanemorris.com 32 PHRC Proposed Guidance on Criminal Convictions 6. Problems (continued) e. Exposes employers to other risks i. Presumption against business necessity if applicant has not re-offended in 7 year or more—negligent hire risk ii. Inquiry into drug or alcohol rehabilitation status—ADA risk www.duanemorris.com 33 PHRC Proposed Guidance on Criminal Convictions 6. Problems (continued) f. Illogical—analogies i. Long hours and women with children—presumption of disparate impact based on sex if long hours? ii. Saturdays and Orthodox Jews—presumption of disparate impact based on religion if require Saturday work? www.duanemorris.com 34 PHRC Proposed Guidance on Criminal Convictions 7. Impact of Proposal a. Public awareness of issue b. Anticipate increase in claims c. Look carefully at factors recommended by PHRC (except presumptions and timing of inquiry) www.duanemorris.com 35 PHRC Proposed Guidance on Criminal Convictions 7. Impact of Proposal (continued) d. Document basis for rejection of applicant with conviction i. Disparate treatment claim under federal or state law—unconscious bias real risk here ii. Disparate impact claim under federal or state law iii. Suitability for employment claim—PA criminal conviction statute www.duanemorris.com 36 III. BILLS FROM OTHER JURISDICTIONS www.duanemorris.com 37 CALIFORNIA ASSEMBLY BILL NO. 943 CREDIT REPORTS www.duanemorris.com 38 Credit Reports 1024.5. (a) An employer shall not use a consumer credit report for employment purposes unless the following criteria are satisfied: (1) The information contained in the report is substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or confidential information. www.duanemorris.com 39 Credit Reports 1024.5. (a) An employer shall not use a consumer credit report for employment purposes unless the following criteria are satisfied: (continued) (2) The position of the person for whom the report is sought is any of the following: (A) A managerial position. (B) A position in the state Department of Justice. (C) A position in a city, county, or both city and county. www.duanemorris.com 40 Credit Reports 1024.5. (a) An employer shall not use a consumer credit report for employment purposes unless the following criteria are satisfied: (2) The position of the person for whom the report is sought is any of the following: (continued) (D) That of a sworn peace officer or other law enforcement position. (E) A position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. www.duanemorris.com 41 ALABAMA SENATE BILL NO. 360 FIREARMS IN THE WORKPLACE www.duanemorris.com 42 Firearms in the Workplace Section 2(a): A business entity, property owner, tenant, or public or private employer may not establish, maintain, or enforce a policy or rule that prohibits or has the effect of prohibiting a person from transporting or storing a firearm or ammunition when the person is otherwise in compliance with all other applicable laws and the firearm or ammunition is locked out of sight within the trunk, glove box, or other enclosed compartment or area within or on a privately owned motor vehicle. www.duanemorris.com 43 MASSACHUSETTS SENATE NO. 699 WORKPLACE BULLYING www.duanemorris.com 44 Workplace Bullying Section 1 – Preamble (a) Findings (3) Workplace bullying, mobbing, and harassment can inflict serious harm upon targeted employees, including feelings of shame and humiliation, severe anxiety, depression, suicidal tendencies, impaired immune systems, hypertension, increased risk of cardiovascular disease, and symptoms consistent with posttraumatic stress disorder. www.duanemorris.com 45 Workplace Bullying Section 1. Preamble (a) Findings (continued) (6) Legal protection from abusive work environments should not be limited to behavior grounded in protected class status as that provided for under employment discrimination statutes; and, www.duanemorris.com 46 Workplace Bullying Section 2. Definitions (1) Abusive conduct. Abusive conduct is conduct, including acts, omissions, or both, that a reasonable person would find hostile, based on the severity, nature, and frequency of the defendant’s conduct. Abusive conduct may include, but is not limited to: repeated infliction of verbal abuse such as the use of derogatory remarks, insults, and epithets; verbal or physical conduct of a threatening, intimidating, or humiliating nature; the sabotage or undermining of an employee’s work performance; or attempts to exploit an employee’s known psychological or physical vulnerability. A single act normally will not constitute abusive conduct, but an especially severe and egregious act may meet this standard. www.duanemorris.com 47 Workplace Bullying Section 3. Unlawful Employment Practices (a) Abusive Work Environment. It shall be an unlawful employment practice under this Chapter to subject an employee to an abusive work environment as defined by this Chapter. www.duanemorris.com 48 IV. WHAT WERE THEY THINKING? www.duanemorris.com 49 Los Angeles Toads may not be licked. www.duanemorris.com 50 New York New Yorkers cannot dissolve a marriage for irreconcilable differences, unless they both agree to it. www.duanemorris.com 51 Alabama It is illegal for a driver to be blindfolded while operating a vehicle. www.duanemorris.com 52 Texas When two trains meet each other at a railroad crossing, each shall come to a full stop, and neither shall proceed until the other has gone. www.duanemorris.com 53 Florida Having sexual relations with a porcupine is illegal. www.duanemorris.com 54 V. LEGISLATIVE BACKGROUND www.duanemorris.com 55 Background 1. Standard legislative process in Pennsylvania a. b. c. d. e. f. g. Sponsor introduces the legislation Vote by Committee Amendments and final vote on floor of chamber Passage by first chamber Passage by other chamber Reconciliation (if differences in bills or versions) Action by governor i. ii. Sign into law Veto legislation and send back to General Assembly www.duanemorris.com 56 Background 2. Current political landscape a. Governor (until Jan. 2011) – Democrat i. 2010 campaign for Governor very competitive ii. Past history—change of party likely b. House – Democratic majority (104 – 98) c. Senate – Republican majority (30 – 20) www.duanemorris.com 57 Background 3. Remember: a. As former U.S. House Speaker Tip O’Neill advised: “All politics is local” b. However, one cannot ignore impact of national politics on local politics; local reps may want to: i. Fill a perceived gap (political or policy) ii. Wait to see how national government deals with issue iii. Follow national (or other states) trends www.duanemorris.com 58 VI. WHAT TO DO? www.duanemorris.com 59 What to do? 1. Follow legislation a. Track individual bills b. Look for political and policy trends in PA c. Be mindful of developments in other jurisdictions www.duanemorris.com 60 What to do? 2. Evaluate bills--think critically a. Consider short-term and long-term impact b. Focus on the interests not only of employers but also employees — unintended but foreseeable adverse consequences of legislative action with laudable motivation www.duanemorris.com 61 What to do? 3. Know your Senators and Representatives a. Visit them in the Capitol b. Invite them to meet with you and others c. Develop relationships with their staffers too (too many people ignore this) www.duanemorris.com 62 What to do? 4. Build positive relationships a. Don’t make assumptions based on partisan affiliation b. Don’t burn bridges – coalitions change frequently in the legislative arena c. Make public policy a two-way street – let elected officials know you want to develop a mutuallybeneficial, symbiotic relationship by offering yourself, and your company, as a valuable resource for knowledge in your field www.duanemorris.com 63 What to do? 5. Get others involved a. Internal (e.g., CEO) b. External (e.g., trade association) c. Consider hiring your own lobbyist (to focus solely on your company’s concerns, particularly if unique) www.duanemorris.com 64 What to do? 6. Contact me*, please, if you: a. Have concerns about specific bill b. Hear about “non-employment” bill with employment implications c. Become aware of any public hearing d. Become aware of any “compromises” other “advocacy” groups are considering * jsegal@duanemorris.com or (215) 979-1869 www.duanemorris.com 65 What to do? 7. Communicate your position to your Senator and Representative a. b. c. d. e. f. Consider the impact on her/his district Learn and account for her/his interests Don’t assume she/he knows the bill or issues Explain the bill succinctly Be direct with your position, but don’t intimidate Give real life examples, if possible www.duanemorris.com 66 What to do? 7. Communicate your position to your Sen/Rep (continued) e. Know the arguments on the other side and be prepared to respond to them f. Give to her/him positive reasons and a “defense” to vote for your position g. Do not attack motives of bill’s proponents h. Be honest — credibility is critical i. Do not lose your temper www.duanemorris.com 67 What to do? 8. Follow-up a. Monitor results b. Thank those who support you c. Communicate respectfully with those who don’t www.duanemorris.com 68 What to do? 9. Keep in mind the importance of timing a. b. c. d. Developing relationships Communicating position Reaching out to others Following-up www.duanemorris.com 69 What to do? 10. Final points a. Legal considerations: discoverability of communications b. Personal considerations: check with your employer before taking public position c. HR considerations: assume your workforce will find out what you say and make sure what you have said is defensible in terms of content and tone www.duanemorris.com 70 Thank You! ©2010 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP. Duane Morris – Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia | San Diego | San Francisco | Baltimore | Boston | Washington, D.C. Las Vegas | Atlanta | Miami | Pittsburgh | Newark | Boca Raton | Wilmington | Cherry Hill | Princeton | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP – A Delaware limited liability partnership www.duanemorris.com