Hunton Employment & Labor Perspectives

On October 1, 2014 the Los Angeles City Council voted again to require large hotels to pay workers a minimum wage of $15.37, exclusive of gratuities, bonuses, or service charge distributions after first passing the bill 12-3 on September 24, 2014.  (A second vote was required under Los Angeles City Council rules because the first vote was not unanimous.)  Assuming Mayor Garcetti signs the bill, which he has reportedly already promised to do, the bill will go into effect on July 1, 2015, applying first to hotel employees at hotels with 300 or more guest rooms and then, on July 1, 2016, expanding its reach to hotel employees employed by hotels with 150 or more guest rooms.

On September 28, California Governor Jerry Brown signed into law AB 1897, a bill that extends liability for workers supplied by “labor contractors” to the contracting employer. The new law provides that a “client employer,” defined as a business entity that obtains or is provided workers to perform labor within its usual course of business from a labor contractor, will share responsibility and liability with the labor contractor for payment of wages and failure to secure valid workers’ compensation coverage. The definition of “client employer” excludes businesses with a workforce of fewer than 25 workers (including both employees and temp hires) and those with 5 or fewer temp workers at any given time. The law also includes an anti-retaliation provision.

Federal contractors and subcontractors were just required to file their 2013 VETS-100 and VETS-100A Reports by September 30th.  Going forward, those forms are being replaced by a new form – the VETS-4212 Report.  The Veterans’ Employment and Training Service (VETS)  has published a Final Rule that implements the changes.

This week the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) received approval from the Office of Management and Budget (OMB) for a revised Scheduling Letter and Itemized Listing (a.k.a, a “notice of audit”) for Service and Supply covered contractors.