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IN THIS ISSUE
New Jersey Businesses Can Sue Each Other For Sexual Harassment
COBRA "Stimulus Act" Extended Yet Again
Employers Required to Distribute CHIP Notices
NYSDOL Revises "NY Mini-WARN" Regulations
Miami-Dade Wage Theft Ordinance Effective 3/1/10
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Real Workplace Issues
March 2010

Greetings!

Welcome to the latest installment of "Real Workplace Issues," a newsletter dedicated to providing our clients and friends with practical, everyday employment law and HR information.

In this issue, we highlight a significant New Jersey sexual harassment case, the ever-extending COBRA subsidy, CHIP notice requirements, the revised NY Mini-WARN regulations, and the new Miami-Dade Wage Theft Ordinance.
As always, feel free to contact us should you require any assistance, or have any questions regarding the information contained in this newsletter.

Sincerely,

Halpern Employment Law Advisors
New Jersey Businesses Can Sue Each Other For Sexual Harassment

On January 16, 2010, the New Jersey Appellate Division decided the case of J.T.'s Tire Serv., Inc. v. United Rentals N. Am., Inc., 411 N.J. Super. 236 (App.Div. 2010), and held that New Jersey's Law Against Discrimination (LAD), N.J.S.A. 10:5-12(l), prohibits "quid pro quo" sexual harassment between businesses.
 
Eileen Totorello, the owner of J.T.'s Tire Service, Inc., sued United Rentals North America, Inc., claiming that United's branch manager tried to extort sexual favors from her as a condition of doing business with her company. After several years of Totorello denying the branch manager's sexual advances, United discontinued its business relationship with J.T.'s Tire Service.
 
Totorello brought her lawsuit under N.J.S.A. 10:5-12(l), which expressly prohibits "any person to refuse to buy from, sell to, lease from or to, license, contract with, or trade with, provide goods, services or information to, or otherwise do business with any other person on the basis of the...sex...of such other person or of such other person's spouse, partners, members, stockholders, directors, officers, managers, superintendents, agents, employees, business associates, suppliers, or customers."
 
The Appellate Division held that although the LAD does not specifically mention sexual harassment as a prohibited form of discrimination, it is "well-established that sexual harassment is a form of sex discrimination..." and that "[w]here, as here, the harassment consists of sexual overtures and unwelcome touching or groping, it is presumed that the conduct was committed because of the victim's sex." The Appellate Division therefore held that N.J.S.A. 10:5-12(l) prohibits quid pro quo sexual harassment between businesses.
 
As a result of J.T.'s Tire Service, Inc., New Jersey employers must now be aware that they can be held liable not only when their employees become victims of sexual harassment, but also when non-employees whom they conduct business with are victimized by quid pro quo sexual harassment.
COBRA "Stimulus Act" Extended Yet Again

The COBRA subsidy originally provided for under the American Recovery and Reinvestment Act of 2009 (the "Stimulus Act") and which was extended until February 28, 2010 under the Department of Defense Appropriations Act of 2010 (the "DOD Act"), was recently extended yet again by the Temporary Extension Act of 2010 ("TEA").

According to the U.S. Department of Labor's website, TEA extends the COBRA premium reduction eligibility period for one month until March 31, 2010. TEA also expands eligibility to individuals who experience a qualifying event that is a reduction of hours occurring at any time from September 1, 2008 through March 31, 2010, which is followed by an involuntary termination of employment on or after March 2, 2010 through March 31, 2010.

This expansion also includes a second election opportunity for these individuals who had a reduction of hours qualifying event followed by an involuntary termination, if they did not elect COBRA continuation coverage when it was first offered OR elected but subsequently discontinued COBRA."

For more information on TEA, as well as updated model COBRA notices, please visit www.dol.gov/ebsa/cobra.html.
Employers Required to Distribute CHIP Notices

The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA), which President Obama signed into law last February, requires employers who maintain group health plans to inform employees of potential opportunities currently available in the state in which the employee resides for premium assistance under a state Medicaid plan or state Child Health Insurance Plan (CHIP).

CHIPRA
 
Employers must distribute the required notice to employees by either May 1, 2010, or the beginning of the first plan year that starts after February 4, 2010, whichever is later.

The U.S. Department of Labor's model notice can be found at www.dol.gov/ebsa/. For more information on CHIPRA, visit www.insurekidsnow.gov/.
NYSDOL Revises "NY Mini-WARN" Regulations

The New York State Workers Adjustment and Retraining Notification ("NY Mini-WARN") Act is designed to give employees, their representatives, the New York State Department of Labor (NYSDOL), and the local Workforce Investment Board early warning of business closings and layoffs. Under NY Mini-WARN, covered employers are required to provide 90 days' notice prior to a plant closing, mass layoff or relocation occurring on or after February 1, 2009.

On February 12, 2010, the NYSDOL amended its NY Mini-WARN Regulations. Included in the various changes made to the regulations are the following:
  • The new regulations provide for additional information that must be included in the content of the required notices to the N.Y. Commissioner of Labor, each affected employee, the employees' representative(s) and the local Workforce Investment Board.
  • Providing notice by e-mail is now permitted so long as certain requirements are satisfied.
  • The definition of the term "date of layoff" has been revised to mean "the last day an employee is eligible or permitted to work for his or her employer."
  • A covered "relocation" must affect at least 25 employees.
  • The new regulations clarify which entity must provide notice in the event of the sale of a business, the consolidation of all or part of a business, or a merger.
  • The new regulations also address the application of NY Mini-WARN in bankruptcy situations.
Also revised and/or clarified are:
  • the definition of "single site of employment"
  • the look-ahead/look-behind aggregation requirements
  • the regulations on temporary employment (including provisions on seasonal employment which have been added); and
  • the liability, enforcement and confidentiality provisions.
The text of the new regulations with the amendments identified is available at www.labor.ny.gov/workforcenypartners/warn/pdfs/Part921_Comparison2-16-10.pdf.
Miami-Dade Wage Theft Ordinance Effective 3/1/10

Miami Dade

The Miami-Dade County Board of Commissioners recently passed the Miami-Dade Wage Theft Ordinance, which became effective March 1, 2010. The Ordinance applies to private employers with employees employed in Miami-Dade County, and seeks to prohibit "the underpayment or nonpayment of wages earned by persons working in the County..."
 
The Ordinance provides that covered employers must pay covered employees within a minimum of 14 calendar days from the date on which the work is performed. The employer can pay the employee later than 14 days (but not to exceed 30 days) upon an express written agreement signed by the employee. Failure to do so is considered "wage theft" under the Ordinance.
 
Employees subjected to wage theft may file a complaint with the County alleging a violation of the Ordinance. In addition, either party is entitled to a hearing before a Hearing Examiner appointed by the County. If, upon the conclusion of a hearing, the Hearing Examiner determines that the "preponderance of the evidence" demonstrates a wage violation has occurred, the employer will be liable for:
  • Back pay;
  • Liquidated damages of twice the amount an employer is found to have unlawfully failed to pay the employee; and
  • An assessment of costs in an amount not to exceed actual administrative processing costs and costs of the hearing.
Employees also have the right at any time to stop the proceeding and file a civil action in State or Federal Court. It should also be noted that supervisors may also be individually liable for violations under the ordinance.
 
It is therefore critical that employers in Miami-Dade County review their pay policies, as well as their exempt/non-exempt classifications to ensure that employees are receiving their proper pay at the proper time.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document.

In addition, this newsletter is provided for informational purposes only and is neither intended to be legal advice nor does it create an attorney-client relationship between Halpern Employment Law Advisors and any reader.