Category Archives: Legislation

June 8, 2023

Shifting Landscape: New Laws Significantly Impact Colorado Employers

Mark Wiletsky

by Mark Wiletsky and Joshua Kohler

During this legislative session, Colorado enacted more protections for employees in the workplace, including redefining what constitutes unlawful harassment, restricting confidentiality agreements, expanding the ability to use paid sick leave, and addressing job posting requirements.

Governor Polis signed into law the Protecting Opportunities and Workers’ Rights (POWR) Act (SB23-172), Additional Uses of Paid Sick Leave (SB23-017), and the Ensure Equal Pay for Equal Work Act (SB23-105). POWR and Additional Uses of Paid Sick Leave go into effect August 7, 2023 and Ensure Equal Pay for Equal Work Act goes into effect January 1, 2024. These laws, and POWR in particular, make considerable changes to the obligations and requirements of employers in Colorado. Now is a good time to revisit any form agreements used with current or prospective employees (e.g., settlement agreements, employment agreements, etc.) and employee handbooks, update anti-harassment and complaint procedures and plan for anti-harassment training, and assess your internal job posting process.

November 28, 2022

Ballot Question 2’s Passing Negates Nevada’s Two-Tier Minimum Wage

By Dora Lane

Dora Lane

Effective July 1, 2024, Nevada’s two-tier minimum wage will no longer exist as a result of Ballot Question 2’s passing on November 8, 2022.

By way of background, in 2006, Nevada voters approved a two-tier minimum wage system applicable to employees subject to minimum wage requirements. Since then, Nevada’s minimum wage has increased over time. As of July 1, 2022, the minimum wage is $9.50/hour for employees who are provided qualifying health benefits and $10.50/hour for employees who are not provided qualifying health benefits. Nevada Assembly Bill 456, which passed in 2019, mandated that the applicable minimum wage rates rise gradually until 2024 when they would reach $11/hour and $12/hour for the respective employee tiers. Read more >>

November 2, 2021

Federal Contractors Offered Some Flexibility to Implement COVID-19 Vaccine Mandate

by Shaun C. Kennedy and Ryan K. Lundquist

Shaun Kennedy

The implementation of President Biden’s Executive Order 14042: Ensuring Adequate COVID Safety Protocols for Federal Contractors (“EO”) continues to evolve and will likely be refined and updated over the coming weeks and months. In a prior alert, we covered guidance issued by the Safer Federal Workforce Task Force’s (the “Task Force”) on September 24, 2021 detailing requirements for implementation of the EO.

On November 1, 2021, the Task Force released additional FAQs to clarify its prior guidance. We highlight below some of the key takeaways from the recently released FAQs:

Ryan Lundquist

1. Is a 100% vaccination rate required by December 8, 2021?

In what will likely be welcome relief, the FAQs introduced a certain degree of flexibility for covered contractors to comply with the EO’s vaccination requirements.

The FAQs instructed agencies to assess the degree to which a covered contractor is taking good faith steps to comply with the EO. When a covered contractor is working in good faith toward enforcing compliance with the EO and workplace safety protocols, the agency “should work with them to address the challenges.” However, where the agency determines a contractor is not “taking steps” to comply, the contracting officer should take “significant actions, such as termination of the contract.” Read more >>

July 26, 2021

Nevada Legislative Update 2021

By Dora Lane and Myrra Dvorak

Dora Lane

Similar to 2019, in 2021, the Nevada Legislature passed several bills implicating employment issues for both private and public employers. High level summaries of the relevant provisions of these bills and their effective dates are set forth below.

AJR 10 – Constitutional Minimum Wage Amendment

Myrra Dvorak

AJR 10 proposes to amend the Nevada Constitution, which currently establishes a 2-tier minimum wage system, allowing employers who provide qualifying health benefits to pay employees the lower tier minimum wage. The Nevada Constitution also presently provides for annual minimum wage adjustments based on increases in the federal minimum wage or, if greater, by the cumulative increase in the cost of living measured by the Consumer Price Index (“CPI”), subject to a 3 percent CPI adjustment cap.

If approved by the voters in 2022, AJR 10 would eliminate the two-tier minimum wage system and establish a $12/hour minimum wage for all employers (regardless of whether they provide qualifying health benefits), beginning July 1, 2024. AJR 10 would also eliminate the annual CPI increase and provide for increases in the Nevada minimum wages corresponding to any increases in the federal minimum wage above $12/hour. Finally, AJR 10 would expressly allow the Nevada Legislature to establish a minimum wage greater than $12/hour.

The resolution passed the 2019 and 2021 legislative sessions and will be placed on the 2022 ballot for voter approval. Read more >>

July 1, 2019

2019 Nevada Employment Legislation Updates

by Dora Lane

Over the last two years, the Nevada Legislature has passed a substantial number of laws affecting Nevada employers. Some of the most notable employment laws that recently passed are summarized below.

AB 132 (Pre-Employment Marijuana Drug Testing, effective January 1, 2020)

Starting with one of the most controversial bills, AB 132 addresses pre-employment marijuana screening of job applicants. When the recreational marijuana initiative passed in 2016 (effective 2017), it specifically stated that it did not prohibit “[a] public or private employer from maintaining, enacting, and enforcing a workplace policy prohibiting or restricting actions or conduct otherwise permitted under this chapter.” AB 132 provides that, subject to certain exceptions, it is unlawful for any employer in Nevada to “fail or refuse to hire a prospective employee because the prospective employee submitted to a screening test and the results of the screening test indicate the presence of marijuana.” AB 132 also provides that if an employer requires an employee to submit to a screening test within the initial 30 days of employment, the employee has the right to submit to an additional screening test (at the employee’s expense) to rebut the results of the initial test. The employer is required to accept and give appropriate consideration to the results of the second test.

For the full text of the bill, click here.

June 14, 2019

Employers Pay Attention: New Marijuana-Related Bill Passes Nevada Legislature

A number of employment-related bills passed this 2019 legislative session. One of these bills is AB 132, revising certain sections of NRS Chapter 613 as it relates to unlawful employment practices.

To put things in perspective, when the recreational marijuana initiative passed in 2016 (effective 2017), it specifically stated that it did not prohibit “[a] public or private employer from maintaining, enacting, and enforcing a workplace policy prohibiting or restricting actions or conduct otherwise permitted under this chapter.” See NRS 453D.100(2)(a). AB 132 provides that, subject to the exceptions listed below, it is unlawful for any employer in Nevada to “fail or refuse to hire a prospective employee because the prospective employee submitted to a screening test and the results of the screening test indicate the presence of marijuana.” AB 132 creates exceptions to this mandate if the prospective employee is applying for a position:

As a firefighter, as defined in NRS 450B.071;
As an emergency medical technician, as defined in NRS 450B.065;
That requires the employee to operate a motor vehicle and for which federal or state law mandates that the employee submit to screening tests; or
That, in the employer’s determination, could adversely affect the safety of others.

June 13, 2019

What’s Up In New Mexico Workplace Law

By Little v. West

Gov. Michelle Lujan Grisham signed bills into law from the 2019 legislative session that will impact private employers in New Mexico. Below is a summary of several bills that change the law applicable to private employers. Employers should consult with legal counsel and consider reviewing and updating employment policies, procedures and handbooks.

‘Right to work’

House Bill 85 rejects “right to work” as a matter of statewide policy and instead establishes that an employer or union in New Mexico can require membership in a union as a condition of employment. HB 85 also prohibits local governments in New Mexico from enacting “right to work” ordinances, invalidating the “right to work” ordinances several counties enacted.

July 17, 2018

New Colorado Data Privacy Requirements Apply to Employers

Dustin Berger

By Dustin D. Berger

Organizations that employ workers in Colorado will soon face more stringent data privacy requirements, thanks to new legislation signed into law by Governor Hickenlooper at the end of May. This new law, HB 18-1128, imposes new obligations on all covered entities in the state that maintain documents that contain personal identifying information of Colorado residents. These obligations go into effect on September 1, 2018. Here are the highlights of the new requirements and steps employers should take to comply.

Practically All Employers Will Be Affected by the New Law

The new law applies to a “covered entity,” which is essentially defined as any individual or entity “that maintains, owns, or licenses personal identifying information”—regardless of how much business the covered entity does within Colorado. The statute defines “personal identifying information” as “a social security number; a personal identification number; a password; a pass code; an official state or government-issued driver’s license or identification card number; a government passport number; biometric data; an employer, student, or military identification number; or a financial transaction device.”

Because virtually all employers maintain information on their employees that is considered personal identifying information, such as social security numbers, employer identification numbers, passport numbers, or driver’s license numbers, employers with Colorado employees will be subject to the requirements of the new law.

The key provisions in the new law are its requirements that covered entities: (1) maintain reasonable security procedures and practices; (2) establish and follow a written policy for the destruction of personal information when it is no longer needed; (3) ensure that third-party service providers handling their personal information have implemented and maintained reasonable security procedures and practices; and (4) follow the law’s notification procedures when it becomes aware that a security breach “may have” occurred.

1. Reasonable Security Procedures and Practices

HB 18-1128 creates a new statutory section, C.R.S. § 6-1-713.5, that requires covered entities to implement and maintain reasonable security procedures and practices to protect personal identifying information from unauthorized access, use, modification, disclosure, or destruction. While not specifying exactly what type of security procedures are required, the new provision states that such procedures must be appropriate to the nature of the personal identifying information and the nature and size of the business and its operations.

If a covered entity discloses personal identifying information to a third-party service provider, it must require that the service provider implement and maintain reasonable security procedures and practices, as outlined in number 3 below.

2. Disposal of Documents Containing Personal Identifying Information

Colorado has had a statute governing the disposal of documents containing personal identifying information since 2004, but the new legislation amends C.R.S. § 6-1-713 to expand covered entities’ responsibilities with respect to personal identifying information. Now, the disposal requirements apply to documents that are kept electronically as well as those kept in paper form. The new law also requires that covered entities implement a written policy specifying that the entity shall destroy (or arrange for destruction of) the documents by making the information unreadable or completely indecipherable.

3. Ensure Third-Party Service Providers Have Reasonable Security Procedures

If a covered entity discloses personal identifying information to a third-party service provider, the covered entity must now require the service provider implement and maintain reasonable security procedures and practices that are reasonably designed to help protect the information from unauthorized access, use, modification, disclosure, or destruction, as appropriate to the nature of the information disclosed to the service provider. A third-party service provider is defined as an entity that has been contracted to maintain, store, or process personal identifying information on behalf of a covered entity.

4. Security Breach Notification Requirements Enhanced

The new law significantly amends Colorado’s statute governing notifications of a security breach, C.R.S. § 6-1-716. A “security breach” is defined, in relevant part, as the unauthorized acquisition of unencrypted computerized data that compromises the security, confidentiality, or integrity of personal information maintained by a covered entity.

Under the new provisions, a covered entity has no more than 30 days to provide notice of a security breach. Notice must be made to affected Colorado residents in a very specific manner including notice by mail, telephone, electronically, or by substitute notice, and must contain a myriad of information regarding the breach and options that are available to the affected person. If a breach is reasonably believed to have affected 500 Colorado residents or more, the entity also must provide notice of the breach to the Colorado Attorney General.

And, unlike the previous law, the 30-day period begins to run when the covered entity becomes aware that a “security breach may have occurred.” In the prior version of the law, the 30-day period did not begin to run until the covered entity became aware of a breach. This change is likely to increase the pressure on covered entities to timely respond to indicators and predictors of a security breach.

Sanctions

Employers who violate the law can face enforcement proceedings from the Colorado Attorney General or the district attorneys of the state. These proceedings can result in civil penalties of up to $2,000 per affected person, up to a maximum of $500,000 per incident. They also can be liable directly to affected persons who are harmed by the violation.

Steps for Employers to Take

The new data security requirements go into effect on September 1, 2018, so employers who maintain personal identifying information on Colorado residents have little time to prepare to comply. Steps to take include:

Develop and implement reasonable practices designed to protect personal identifying information from unauthorized access, use, or disclosure (e.g., password-protection, encryption, etc.) that are commensurate with the sensitivity of the personal identifying information.
Create a written policy regarding the destruction and disposal of paper and electronic documents containing personal identifying information.
Review agreements with third-party service providers to ensure that service providers have reasonable procedures to protect the security of personal identifying information provided to them.
If you have a security incident response plan, update it to reflect the changes in the law.
If you do not have a security incident response plan, prepare one to ensure that you can meet the new law’s notification requirements.

February 27, 2018

Colorado General Assembly To Consider Immigration, Paid FMLA, and Other Employment Bills

Emily Hobbs-Wright

By Emily Hobbs-Wright

The Colorado General Assembly convened on January 10, 2018 for its regular session. Between now and its scheduled May 9, 2018 adjournment date, the House and Senate will consider numerous employment-related bills. Although some may not get out of committee, and others may not get enough votes to pass, the bills highlighted here provide a glimpse into what our legislature may be considering for our state’s employers.

Immigrant Work-Status Bill

Introduced on February 5, 2018, House Bill18-1230 would create a purple card program that would allow certain persons who came to the United States without legal documentation to work legally in Colorado. To be eligible for the program, a person must have no felony convictions for the three years immediately prior to their application, and they must either have been brought to the U.S. as a minor, or paid state income taxes for the two years immediately prior to their application to the program. Sponsored by Representative Dan Pabon (D-Denver), the bill has been assigned to the House Judiciary Committee.

FAMLI Family and Medical Leave Insurance Program

House Bill18-1001 would create the family and medical leave insurance program (FAMLI) within the Colorado Department of Labor and Employment. The program would offer partial wage-replacement benefits to eligible employees who need to take leave from work because they are unable to work due to a serious health condition or need to care for a new child or a family member with a serious health condition.

The program would be funded through employee contributions, based on a percentage of the employee’s annual wages, not to initially exceed 0.99%. The premiums would be deposited into the FAMLI fund to be paid out to eligible individuals. As introduced, the bill would apply to all employers in the state engaged in activities affecting commerce and only requires that the employer have at least one employee to be covered. The maximum number of weeks of FAMLI benefits payable to an eligible individual would be 12 weeks in any year. The bill has been assigned to the Finance Committee. Although the bill has a decent chance of passing the House, it will likely face opposition in the Republican-controlled Senate.

Non-Compete Exemption for Physician To Provide Continuing Care For Rare Disorders

Colorado’s statute that governs non-compete agreements specifically addresses non-competes for physicians. C.R.S. §8-2-113. Although covenants not to compete that restrict a physician’s post-employment ability to practice medicine are void, agreements may require a physician to pay damages in an amount reasonably related to the injury suffered by reason of the termination of the agreement are enforceable. Senate Bill18-082 would create an exemption allowing a physician, after termination of an agreement, to continue to care for any patient with a rare disorder without liability for damages. As of the time of this writing, the bill has passed the Second Reading in the Senate. It needs to pass on Third Reading before heading to the House.

Minimum Wage Waiver

House Bill18-1106, introduced by Representative Dave Williams (R-El Paso), would allow an applicant for employment, or a current employee to negotiate a different minimum wage than what is required under the Colorado Constitution. The bill would require employers to post a notice informing employees of the right to negotiate wages. Unsurprisingly, this bill already failed in committee. (Employers should remember that neither an employer nor an employee has the authority to waive minimum wage and overtime pay under federal or state wage law.)

Right-to-Work Bill

Although dead on arrival, Representative Justin Everett (R-Jefferson) introduced a right-to-work bill, House Bill 19-1030, that would prohibit employees from being required to join, remain in, or pay dues to a union as a condition of employment. Similar bills have been introduced almost every session, and like those before it, this one was shot down. The bill was rejected in committee and will not make it to the House floor for a vote. With Democrats controlling the Colorado House, there is virtually no chance that a right-to-work bill would see the light of day.

More To Come

We will continue to monitor labor and employment developments at the Colorado legislature and will report back in future posts.

December 26, 2017

The New Tax Bill & Employee Benefits: What is Changing? What is Not?

By Molly Hobbs and Brenda Berg

On December 22, 2017, the President signed into law the Republican tax bill that was passed by Congress just days earlier. Beyond cutting individual tax rates temporarily and slashing corporate taxes to 21 percent permanently, the tax bill includes some important changes to the taxation of certain employee benefits.

Listed below are the major changes to employer-provided benefits under the final tax bill:

Revised: Time to repay “offset” employer-sponsored retirement plan loans.
- Currently, retirement plan loans are generally accelerated (i.e., immediately due and payable) when the plan terminates or the participant terminates employment. If the loan is not repaid, the plan will “offset” the loan against the participant’s account. This loan offset may be rolled over by making an equivalent contribution to an IRA or another qualified plan, but this must be done within 60 days of the date of the offset.
- Beginning in 2018, the period to roll over a loan offset is extended to the individual’s due date for the tax return for the year in which the offset occurred (including extensions).
Repealed: Employer deduction for qualified transportation fringe benefits, including commuting expenses.
- Currently, an employer can deduct the cost of certain transportation fringe benefit provided to employees (i.e., parking, transit passes, and vanpool benefits), even though such benefits are excluded from the employee’s income.
- Beginning in 2018, the employer deduction for qualified transportation fringe benefits is fully disallowed. In addition, except as necessary for ensuring the safety of an employee, the employer deduction for providing transportation or any payment or reimbursement for commuting to work is disallowed.
- These changes do not appear to prevent employers from sponsoring a qualified transportation plan to allow employees to elect to have certain transportation costs paid on a pre-tax basis.
Repealed: Employee exclusion of bicycle commuting reimbursements.
- Currently, an employee can exclude from income qualified bicycle commuting reimbursements of up to $20 per qualifying bicycle commuting month. These amounts are also excluded from wages for employment tax purposes.
- Beginning in 2018, the qualified bicycle commuting reimbursement exclusion is fully disallowed.
- Going forward, employers can still maintain a program for bicycle commuting, however, reimbursements under such program will be taxable to the employee.
Repealed: Employer deduction for entertainment, amusement and recreation provided to employees.
- Currently, an employer can fully deduct expenses for recreational, social, or similar activities primarily for the benefit of non-highly compensated employees, provided such activities directly relate to the active conduct of the employer’s business.
- Beginning in 2018, this deduction is fully disallowed. The employee exclusion remains unchanged.
Partially Repealed: Employer deduction for meals, food and beverages provided to employees.
- Currently, an employer can fully deduct any food and beverage expense that can be excluded from an employee’s income as a de minimis fringe benefit.
- Beginning in 2018, there will be a 50% limitation on the deduction for food and beverages that can be excluded from an employee’s income as a de minimis fringe benefit, including expenses for the operation of an employee cafeteria located on or near the employer’s premises. The employee exclusion remains unchanged.
Partially Repealed: Employee exclusion of value of certain types of employee achievement awards and the employer’s related deduction.
- Currently, an employer can deduct up to $400 (or up to $1,600 in the case of certain written nondiscriminatory achievement plans) of the value of certain employee achievement awards for length of service or safety. The employee receiving such award can exclude the award from income to the extent that the value of the award does not exceed the employer’s deduction.
- Beginning in 2018, the employee’s exclusion and employer’s deduction for employee achievement awards will not apply to cash, gift coupons/certificates, vacations, meals, lodging, tickets to sporting or theater events, securities, and “other similar items.” However, an employee can still exclude (and an employer can still deduct) the value of other tangible property and gift certificates that allow the recipient to select tangible property from a limited range of items pre-selected by the employer.
Repealed: Employee exclusion from income of employer-provided qualified moving expense reimbursements.
- Currently, an employee can exclude qualified moving expense reimbursements paid by his or her employer for the reasonable expenses of moving. These amounts are also excluded from wages for employment tax purposes.
- Beginning in 2018, the qualifying moving expense reimbursement is fully taxable to the employee, except for members of the Armed Forces on active duty who move pursuant to a military order.
Enacted: Employer tax credit for employers providing paid family and medical leave.
- Beginning in 2018, an employer that offers at least two weeks of annual paid family and medical leave, as described by the Family and Medical Leave Act (FMLA), to all “qualifying” full-time employees (and a proportionate amount of leave for non-full-time employees) will be entitled to a tax credit. The paid leave must provide for at least 50% of the wages normally paid to the employee. “Family and medical leave” does not include leave provided as vacation, personal leave, or other medical or sick leave.
- A “qualifying employee” is an employee who has been employed by the employer for at least one year, and whose compensation for the preceding year did not exceed 60% of the compensation threshold for highly compensated employees (i.e., compensation did not exceed $72,000).
- The credit will be equal to 12.5% of the amount of wages paid to a qualifying employee during such employee’s leave, increased by .25% for each percentage point the employee’s rate of pay on leave exceeds 50% of the wages normally paid to the employee (but not to exceed 25% of the wages paid).

In addition, employers should be aware that the tax bill eliminates the Affordable Care Act’s (“ACA”) individual mandate penalty starting in 2019. The individual mandate requires most individuals (other than those who qualify for a hardship exemption) to carry a minimum level of health coverage. Currently, individuals who do not enroll in health coverage can incur a tax penalty. Beginning in 2019, individuals will still technically be required to carry health coverage, but will no longer be penalized for failing to do so. This change to the ACA’s individual mandate could indirectly impact employers. For example, if fewer employees avail themselves of Exchange coverage and the related subsidies, an employer’s penalty risk under the ACA’s employer mandate will decrease. The lack of individual penalty could also destabilize the Exchange, resulting in more individuals looking to their employers for coverage.

Although earlier drafts of the tax bill called for repeal or modification, the following benefit provisions remain unchanged by the final tax bill:

The hardship distribution safe harbor rules incorporated into many retirement plans (proposals would have eased hardship rules);
The employer-provided child care credit;
Dependent Care Assistance Programs (DCAPs);
Adoption assistance programs;
Employer-provided housing; and
Educational assistance programs.

Takeaways for Employers:

In light of changes to employer-provided benefits under the final tax bill, employers should take the following actions:

Determine whether any changes are needed to retirement plan loan distribution paperwork regarding tax and rollover consequences.
Review qualified transportation plan(s) in light of the changes to qualified transportation fringe benefits and bicycle commuting reimbursements.
Review any company policies that involve recreational, social, or similar activities for employees, employee meals, employee achievement awards, and/or employee moving expenses.
Adjust payroll reporting as necessary and determine whether any taxable amounts are now eligible compensation for retirement plan deferrals and employer contributions.
Consider utilizing the new tax credit for paid family and medical leave.