The Puerto Rico Labor Secretary recently issued updated guidance on applying overtime regulations under the Fair Labor Standards Act (FLSA) and Puerto Rico’s labor laws. This interpretation aligns more closely with federal standards while keeping a distinctly local perspective and introduces important nuances affecting how businesses calculate and pay overtime, especially for non-exempt employees.

There are several key changes in Puerto Rico’s new overtime interpretation. One of the most notable updates is the requirement to include non-discretionary bonuses, commissions, and other incentive payments when calculating an employee’s regular overtime pay rate. This means that overtime pay must reflect these additional payments for future and past work. The guidance also clarified that a workweek consists of 40 hours, regardless of scheduling variations, and overtime must be paid for any hours worked beyond this, even for employees with fluctuating schedules. Additionally, the new interpretation adjusts the criteria for exempt and non-exempt classifications, which may require businesses to reclassify certain positions based on job duties or compensation levels. For employees on non-standard or irregular schedules, the Secretary emphasized stricter adherence to overtime pay calculations, ensuring that all hours over 40 in a workweek are compensated appropriately, even for salaried employees.

Considering these changes, businesses in Puerto Rico should immediately review their overtime policies, recalculate past overtime to include non-discretionary payments, audit employee classifications, and update payroll systems. With more employees qualifying for overtime pay, businesses may face increased labor costs. They can prepare for this potential impact by conservatively reviewing budgets and forecasting labor expenses. Puerto Rico employers should also review their preexisting overtime policies and other practices to ensure compliance with the final New Overtime Interpretation regulations.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations and related litigation. If you have questions, please get in touch with your HRBP for assistance.

On September 13, 2024, the Massachusetts Supreme Judicial Court (the “SJC”), the highest state court in Massachusetts, issued its ruling in the case Bodge v. Commonwealth, SJC-13567. The case focused on employees exercising their right to take leave under the Paid Family and Medical Leave Act (“PFML”) and questioned if an employee is entitled to accrue benefits while on leave.  The SJC ruled that the statute governing PFML does not grant employees benefit accrual rights while taking leave under PFML. It does, however, require that upon return from their leave, the employee does not incur a loss of benefits accrued before their leave began. Employees are still entitled to maintain their health insurance while out on PFML but do not continue to accrue benefits such as vacation time, sick time, PTO, or other benefits linked to length of service.

Massachusetts Employers should review their current PFML policies and update them, if necessary, to reflect the recent SJC ruling. It is also important to clearly define employee rights when an employee requests to take leave under PFML to ensure that, in light of this SJC ruling, there is no ambiguity over what an employee is entitled to during their leave.

PrestigePEO is here to help. If you need assistance updating your PFML policy or have additional questions, please contact your HR Business Partner.

As businesses and employees recover from Hurricane Helene’s impacts, employers must prioritize safety and compliance with relevant regulations. The Occupational Safety and Health Act (OSH Act) and the Occupational Safety and Health Administration (OSHA) set forth essential guidelines that require employers to create a safe working environment, particularly around natural disasters like hurricanes.

The OSH Act’s General Duty Clause mandates that employers ensure a workplace free from hazards that could lead to severe injury or death, including those associated with hurricanes. Employers must develop Emergency Action Plans (EAPs) that detail evacuation routes, emergency contacts, and expected employee behaviors during emergencies. Comprehensive training on these protocols is necessary to prepare employees for potential disasters.

In the aftermath of a hurricane, employers must address any hazards that may have emerged, such as structural damage or hazardous spills. Providing necessary personal protective equipment (PPE) for employees involved in recovery and cleanup efforts is a requirement. Before reopening the workplace, a thorough hazard assessment should be conducted to guarantee safety.

Flexibility during the recovery process is essential. Employers may want to consider implementing remote work options, adjusting schedules to accommodate travel disruptions, and allowing leave for employees dealing with personal challenges due to the hurricane’s effects. When safety cannot be guaranteed, a temporary suspension of operations may be warranted.

Proactive planning is the cornerstone of effective disaster recovery. Employers should regularly review and enhance their disaster preparedness and response strategies, as this planning can minimize operational disruptions and safeguard the well-being of employees. By adopting a forward-thinking approach, businesses can strengthen their resilience against future natural disasters and ensure a smoother recovery process.

PrestigePEO is dedicated to supporting your business through these challenging times and can assist you in ensuring your workplace is ready for future challenges.

With the recent legalization of recreational cannabis in Ohio as of August 6, 2024, employers are now facing new challenges in managing workplace policies around cannabis use. While Ohio residents over 21 can now purchase and possess up to 2.5 ounces of cannabis, employers retain certain rights to maintain a drug-free workplace and take corrective action if cannabis use affects performance or safety.

Employers are not required to permit or accommodate the use of cannabis, even if it’s consumed legally outside of work hours. Employees who are impaired at work due to cannabis can still be disciplined, and you are within your rights to refuse to hire, terminate, or otherwise take corrective action against an employee for using, possessing, or distributing cannabis in the workplace. Additionally, employers may implement or continue drug testing policies, including pre-employment, post-accident, or random testing, depending on business needs. If an employer terminates an employee for cannabis use that violates company policy, it will be considered “just cause.”

Reviewing policies and protocols regarding cannabis is advisable, especially for employees in safety-sensitive positions like healthcare, construction, or trucking. Employers may update employee handbooks and other relevant policies to clearly state that while cannabis is legal in Ohio, it is not allowed in the workplace. Make sure employees understand that using cannabis during lunch breaks or other work hours is prohibited, and clearly outline the consequences of violating this policy. Employers should consider whether they want to introduce a last-chance program for employees who test positive or offer access to substance abuse support for those who need it.

It’s essential to train managers and HR staff to handle discussions around both medical and recreational cannabis use and to ensure they are familiar with company policies, testing protocols, and potential disciplinary actions. Staff members should be equipped to recognize signs of impairment and know how to address these situations appropriately. Finally, a company-wide meeting should be planned to update all employees on the new cannabis policies and how they affect the workplace.

By taking these steps, you can ensure your business is prepared for Ohio’s changing legal landscape around cannabis use while maintaining a safe and productive work environment.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations and related litigation. If you have questions, please get in touch with your HRBP for assistance.

As California’s upcoming election nears, employers should be aware of an important compliance requirement regarding employee voting rights. Under Elections Code Section 14001, California law mandates that employers post a notice informing employees of their rights, including taking up to two hours of paid time off to vote in statewide elections. The notice must be displayed by October 26, 2024, at least ten days before the statewide election on November 5.

The notice should be placed in a visible location accessible to all employees, such as break rooms, entryways, or online employee portals. The California Secretary of State’s office provides a Sample Notice. Employers can request posters from the Elections Division.

If an employee does not have enough time outside of working hours to vote, they are entitled to receive up to two hours of paid time off to do so. Polls will be open from 7 AM to 8 PM on Election Day, and employers may require that this time off be taken at the beginning or end of the employee’s shift to minimize work disruption. Employees should provide advance notice if they need to take time off for voting, and any additional time beyond two hours may be unpaid.

California employers must meet this posting requirement by October 26 to ensure compliance with state law. Employers are also encouraged to remind employees about the company’s policy on time off for voting, ensuring everyone knows their rights and responsibilities as Election Day approaches. By taking these steps, employers can help foster a smooth voting process while maintaining legal compliance.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

Effective March 4, 2025, the Retail Worker Safety Act will require New York retail employers to implement new measures to prevent workplace violence. Employers with ten or more employees must develop a written workplace violence prevention policy and provide annual employee training.

The New York Department of Labor will provide a template policy, but employers can create policies if they meet or exceed the minimum standards. The policy must include methods to report and prevent incidents, with attention to common risk factors such as late-night shifts, working alone, and handling money.

Employers must also provide training to all employees upon hire and annually thereafter. The Department of Labor will develop an interactive training program covering de-escalation techniques, emergency procedures, active shooter drills, and panic buttons.

Larger retailers with 500 or more employees nationwide must install panic buttons by January 1, 2027. These buttons must alert 911 and share the employee’s location with local law enforcement.

With similar laws in California, retailers should be prepared for more states to follow suit in strengthening workplace violence prevention measures. Now is the time to assess workplace risks and update safety procedures to stay ahead of these new requirements.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

On July 15, 2024, California Governor Newsom signed Assembly Bill (AB) 2299, which requires the California Labor Commissioner to develop a model notice of employees’ rights under existing whistleblower laws to display in the workplace.

Under current California law, employers must post a list of employees’ rights and responsibilities under the whistleblower laws. However, the current law does not require specific content outlining the employees’ rights and responsibilities. The Labor Commissioner had previously issued a sample notice that did not guarantee compliance with the statutory requirements of the workplace notice.

The new model notice should be available on the California Labor Commissioner’s website at the end of the year. It can be posted beginning January 1, 2025, and will be deemed in compliance with the new requirements regarding employees’ rights and responsibilities under the existing whistleblower laws.

We will continue to monitor the Labor Commissioner website for the posting of the Model Notice and will keep you informed when the notice becomes available.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.