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HR Matters
HR Matters - November 2006 - Volume X, Issue 115
November 30, 2006
LABOR & EMPLOYMENT NEWSOhio Amends Constitution to Raise Minimum Wage . Effective January 1, 2007, Ohio's minimum wage will increase from $4.25 to $6.85 per hour. The new minimum wage will be indexed to inflation. The new minimum wage applies to all employees except the following: employees under the age of sixteen, employees of small businesses ($250,000 or less in gross revenue), family member employees of a family-owned and operated business, and employees employed on a casual basis around an individual's home or on an employer's property. The amendment also allows the state to issue licenses allowing employers to pay lower wages where higher wages would adversely impact employment opportunities for individuals with mental and physical disabilities. In addition, wages to tipped employees are half the state minimum if the employee's tips plus wages are at least equal to the state minimum wage rate.
The amendment also imposes new record-keeping requirements; employers will be required to keep payroll records for three years after the last day of employment. Also, employers will be required to provide payroll information to an employee, or a person acting on behalf of the employee, upon request and free of charge.
Employers found to have violated the new law's provisions will be liable for damages (two times the amount of employee's back wages), reasonable costs, and reasonable attorney's fees. Where retaliation occurs, punitive damages may be awarded, at a rate of at least $150 per day of violation.
At the time of this writing, the Constitutional Amendment is in the implementing legislation stage and there are questions of law that will impact certain provisions. We will be monitoring the legislation in the months to come and will update you in future editions of HR Matters.
Ohio Passes Smoke Free Workplace Act . Effective December 7, 2006, smoking will be banned in all enclosed public places and places of employment, and "areas directly or indirectly under the control of the proprietor immediately adjacent to locations of ingress or egress to the public place or place of employment." An enclosed area is defined, in part, as an area with a roof or other overhead covering of any kind and walls or sides of any kind. If an establishment has employees or invites members of the public to enter, the establishment must be smoke-free. In addition, the establishment must post "No Smoking" signs containing a phone number for reporting violations. Exempt from the law are: private homes (except during the hours of operation as a child or adult care facility for compensation), designated smoking rooms in hotels (limited to 20 percent of all rooms), family-owned and operated businesses (where the public does not enter, and all employees are family members), nursing homes (only in enclosed designated areas that meet other legal requirements regarding ventilation), retail tobacco stores, outdoor patios (physically separated from enclosed areas), and private clubs (as long as the club has no employees). Penalties for violations of the law may be levied against proprietors of establishments and individuals who smoke in public places, and will range between $100 and $2500 for establishments, and up to $100 for individuals. The Act requires the Department of Health, within six months of the effective date, to promulgate rules to implement the new law. The rules should provide more details and clarification regarding an establishment's responsibilities under the law. For more information on the new Ohio smoking law, please contact us.
IMMIGRATION NEWS
Do you have employees interested in permanent residency? The State Department has announced the requirements for the fiscal year 2008 Diversity Immigrant Visa Program, the annual lottery for 50,000 permanent residence visas (i.e., "green cards"). The process for submission is simple. The applicant must complete the Electronic Diversity Visa Entry Forms electronically at www.dvlottery.state.gov. All entries must be submitted electronically between noon on Wednesday, October 4, 2006 and noon on Sunday, December 3, 2006. The government will then randomly pick 50,000 winners. To obtain a green card, the randomly selected applicants must meet all eligibility requirements under U.S. law. If you need more information or instructions, please contact GH&R immigration attorney Katherine Lasher at 513-629-2752.
WORKPLACE HEALTH & SAFETY NEWS
Senate Bill 7 Referendum . We reported in our October newsletter that the Senate Bill 7 referendum would not be on the November 7 ballot. Because the ballots were already printed, the referendum did appear as "Issue 1" on the ballot. However, votes on Issue 1 were not counted. All provisions of Senate Bill 7 have an effective date of June 30, 2006, unless otherwise specified in the bill. The provisions of Senate Bill 7 were discussed in our September newsletter. For more information on Senate Bill 7, please contact GH&R attorneys Dan Burke (513-629-2770) or Everett Greene (513-629-2824).
Kentucky Requires More Reporting of Workplace Injuries . Effective November 1, 2006, a new Kentucky regulation requires employers to report a wider range of workplace injuries to the Kentucky Office of Occupational Safety and Health (KYOSH). The current regulation requires Kentucky employers to report fatalities and incidents resulting in the inpatient hospitalization of three or more employees to KYOSH within eight hours of receiving a report of the incident. The new regulation also requires Kentucky employers to report any work-related incident resulting in the inpatient hospitalization of one or two employees and any amputations suffered by employees to the KYOSH within 72 hours. For more information regarding this new requirement, visit the KYOSH website at www.labor.ky.gov or contact GH&R attorneys Paul Alley (859-578-2428) or Lynda Hils (859-578-2428).
EMPLOYEE BENEFITS & EXECUTIVE COMPENSATION NEWS
Amendment and Notice Deadlines. If you have not already heard from us regarding any needed amendments to your 401(k) plan to comply with the final 401(k) regulations, we will be contacting you soon so that your plan will be amended in accordance with the general December 31 deadline. Also, if your 401(k) plan is a "safe harbor" plan, the annual notice must be provided to eligible employees by December 2, 2006.
Pension Accounting Changes . The Financial Accounting Standards Board (FASB) recently issued major changes to the existing standards governing plan sponsor accounting for pension and other post-retirement benefits. One significant change is that an employer must report the net assets and liabilities for its pension plans on their company's balance sheet. This new standard also applies to post retirement benefits such as retiree health. It also changes the measurement date to the date of the company's annual financial statement. The balance sheet rule is effective for public companies for plan years ending after December 15, 2006 and for all other companies for plan years ending after June 15, 2007. The measurement rules are effective for plan years ending after December 15, 2008.
Final Rules on Electronic Media . The IRS recently issued final rules on the use of electronic media for employee benefit notices, elections and consents. The regulations require that the electronic medium be effectively accessible to the participant and be reasonably designed to safeguard access of anyone other than the participant, and that participants must have a reasonable opportunity to review, confirm, modify or rescind an election before it becomes effective. These regulations apply to notices provided and to elections and consents made on or after January 1, 2007.
This Newsletter is a periodic publication of Graydon Head & Ritchey LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult your own advisor concerning your situation and any specific legal question you may have.