Pay Equity Law Update

Pay

New Connecticut Pay Equity Law

On May 22, 2018, Connecticut Gov. Dannel P. Malloy signed Public Act No. 18-8, “An Act Concerning Pay Equity,” into law. The new Connecticut law follows a recent trend by states to enact laws prohibiting employers from seeking salary history from prospective employees. Connecticut now joins California, Delaware, Massachusetts (see below), Oregon, and Vermont as one of six states having such laws, which are designed to remedy historic pay disparities between male and female employees.

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It’s a Topsy-Turvy Workplace – Right Now, Common Sense is on Top

Common

Breaking news – sometimes agency guidance, or even enforcement positions, change!

A recent example comes from the National Labor Relations Board (NLRB) with its June 6, 2018, memorandum regarding “Guidance on Handbook Rules Post-Boeing.” While the lack of consistency can be frustrating for employers, there is good news this time: Common sense seems to have triumphed – at least for now. (For a review of some of the prior NLRB guidance, see our prior articles: An Unfair Employer Policy Roundup to Help Avoid Unfair Labor Practices and Employer Handbook Policies Violate the National Labor Relations Act.)

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Details Matter: Medical Plan Anti-Assignment Clauses Protect Employers

Details

Yes, details matter. This is true on many fronts, including whether the documents governing the medical plan offered to employees prohibit employees and their dependents from assigning their plan benefit rights to a health care provider.

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Complying with Hardship Withdrawal Rules Makes Retirement Plan Administration Easy (Well, Easier, Anyway)

Retirement

In a February 2018 article, my colleague Kathleen Dreyfus Bardunias encouraged retirement plan sponsors to implement annual “operational checkups” in order to ensure their plans were administered in compliance with the plan’s terms and applicable law. That article described various retirement plan administration errors that review might uncover, including: failing to timely deposit employee contributions, failing to provide required notices, and plan loan failures.

While the prior article didn’t specifically explore errors in the administration of hardship withdrawals, the recent IRS guidance and legislative changes discussed below show that this is an area where both plan sponsors and participants may still have questions.

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