On May 23, 2022, in Naranjo v. Spectrum Security Services Inc., the California Supreme Court unanimously held that meal and rest period premium pay is subject to the same wage statement and final pay requirements as other wages earned by employees.

California Meal & Rest Breaks 

California employers generally must provide meal and rest breaks as follows: 

Employee Breaks

For meal breaks, employers generally must: 

• Provide a 30-minute unpaid meal period to nonexempt employees working more than 5 hours per day.
• Provide a second meal period of at least 30 minutes to employees who work more than 10 hours per day.
• Relieve its employees of all duty during meal periods.
• If it fails to provide a required meal period, pay the employee 1 additional hour of pay at his or her regular rate of pay for each workday the meal period is not provided.

Click here for more details, including the timing of meal breaks. 

For rest periods, employers generally must:

• Permit nonexempt employees to take a paid rest period that must, insofar as practicable, be taken in the middle of each work period. The rest period must be at the minimum rate of a net 10 consecutive minutes for each 4-hour work period, or major fraction thereof.
• During rest periods, relieve employees of all duties and relinquish control over how employees spend their time. On-call rest periods are generally prohibited.
• Provide suitable resting facilities that are available for employees during working hours in an area separate from the toilet rooms.
• If they fail to provide a required rest period, pay the employee 1 additional hour of pay at the employee’s regular rate of pay for each workday that the rest period is not provided.
• Count a mandated recovery period (a cooldown period afforded to an employee to prevent heat illness) as hours worked, for which there may be no deduction from wages.

Employers may not:

• Require that an employee stay on the work premises during his or her rest period.
• Require an employee to work during a mandated recovery period.

Click here for more details on rest (and lactation) breaks, and here for details on recovery periods.  

Missed Meal and Rest Period Premiums

Under state law, employers must compensate their employees with one additional hour of pay for each workday they miss a meal or rest break. This premium must be paid at the employees’ regular wage rate.

On May 23, 2022, in Naranjo v. Spectrum Security Services Inc. (Naranjo), the California Supreme Court unanimously held that meal and rest period premium pay is subject to the same wage statement and final pay requirements as other wages earned by employees. The dispute in Naranjo arose when Gustavo Naranjo was terminated from his position as a guard at Spectrum Security Services Inc. (Spectrum) after he abandoned his post to take a meal break. Spectrum required employees to remain on duty during meal periods. Naranjo sued, claiming Spectrum violated state wage and hour laws by failing to:  

• Compensate employees with premium pay for missed meal and rest periods;
• Accurately report these premium payments in wage statements; and
• Pay these premiums in a timely manner upon termination.  

 The Naranjo decision clarifies that employers must ensure that meal and rest period premium pay is accurately and timely included in wage statements and employee final paychecks. In practice, this also means that employers in California need to ensure that their payroll, time tracking and wage payment processes accurately identify and account for missed meal and rest periods.  

Day of Rest

Employees are generally entitled to 1 day’s rest every 7 days. An employer may notcause its employees to work more than 6 days every 7 days.  

Lactation Breaks 

 Employers generally must: 

• Provide a reasonable amount of break time for an employee to express breast milk for her infant child. The break time must, if possible, run concurrently with any break time already provided to her (break time not running concurrently with the rest time authorized by the applicable wage order is unpaid).
• Provide an employee with a room or location, other than a bathroom, in close proximity to her work area, to express milk in private, shielded from view, and free from intrusion. Beginning Jan. 1, 2020, the lactation room must:
  • Be safe, clean and free of hazardous materials;
  • Contain a surface for a breast pump and personal items;
  • Contain a place to sit; and
  • Have access to electricity or alternative devices (extension cords, charging stations) needed to operate breast pumps.    
• Provide lactating employees with access to a sink with running water and a suitable place for storing expressed milk, such as a refrigerator beginning Jan. 1, 2020. Water and storage access must be in close proximity to the employee’s workspace. 
• Implement a lactation policy (with required specified information) and include it in their employee handbook or other set of policies made available to employees. The policy must be distributed to new employees upon hiring and when an employee asks about or requests parental leave.

Employers with fewer than 50 employees may qualify for an exemption from one of the requirements listed above if they can prove that providing the accommodation would cause the employer significant difficulty or expense in relation to the size, financial resources, nature or structure of the employers’ business. Click here for more information about lactation accommodations. 

Click here for city-specific lactation requirements in San Francisco. 

More Information  

Additional requirements and exceptions to the information above may apply. For more information, please contact the California Labor Commissioner’s Office.

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency. 

On May 11, 2022, South Carolina adopted a joint resolution (SJR 533) that will prohibit paying employees with disabilities wages below the minimum wage rate. The resolution becomes effective on Aug. 1, 2024.

South Carolina Minimum Wage

South Carolina does not have a state minimum wage law. As a result, employers must comply with the federal minimum wage requirement of $7.25 per hour.

• On May 11, 2022, South Carolina adopted a joint resolution (SJR 533) that will prohibit paying employees with disabilities wages below the minimum wage rate. The resolution becomes effective on Aug. 1, 2024. Because SJR 533 provides a greater benefit to employees with disabilities, employers in South Carolina will no longer be able to claim the federal minimum wage exemption after Aug. 1, 2024.

More Information

• Minimum Wage FAQs from the U.S. Wage and Hour Division
• South Carolina Department of Labor, Licensing and Regulation

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency. 

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The Oregon Employment Department has announced that the contribution rate for the state’s paid family and medical leave program will be 1% of employee wages when contributions begin Jan. 1, 2023. Starting on that date, workers will pay 60% and employers will pay 40% of the combined 1% rate. The rate is expected to decrease in the future as the state fund that provides revenue for the program becomes solvent.

Oregon Family and Medical Leave

As with workers nationwide, eligible employees in Oregon are entitled to the leave benefits of the federal Family and Medical Leave Act (FMLA). In addition, Oregon state law provides for family leave, military family leave, and beginning in 2023, paid family and medical leave. Highlights of these requirements are set forth in the chart below.

	Paid Family and Medical Leave	Family Leave (Unpaid)	Military Family Leave (Unpaid)
Is this requirement currently effective?	No. Contributions and benefits start in 2023.	Yes.	Yes.
Which employers are covered?	All employers.	Generally, employers with 25 or more employees in OR.	Generally, employers with 25 or more employees in OR.
Who is eligible for leave?	Virtually all employees working in OR who earned $1,000 during the base year.	Employees who have worked for at least 180 days and averaged at least 25 hours/week during that time). (Average weekly hour requirement does not apply to leave to care for a new child.)(Effective 1/1/22, during public health emergencies, leave is available for employees who have averaged 25 hours/week for 30 days before the leave.)	Employees who work on average at least 20 hrs/week.
Which life events qualify for leave?	Caring for and bonding with a child during first year after child’s birth or arrival through foster care or adoption;Caring for family member (includes siblings, partners, grandparents, grandchildren and others) with serious health condition (includes pregnancy disability and prenatal care);Employee’s serious health condition (includes pregnancy disability and prenatal care); orSeeking assistance, medical treatment, counseling or victim services, among other things, or relocating, due to domestic violence, harassment, sexual assault or stalking (safe leave).	Caring for infant, newly adopted child or newly placed foster child under 18 (older if disabled); leave must be completed within 12 months after birth or placement of child.Caring for family member (generally includes spouses, children, grandchildren, parents, grandparents, in-laws) with serious health condition.Caring for child with injury, illness or condition that requires home care (sick child leave).As of 1/1/22, caring for child whose school/child care provider has closed due to a public health emergency.Recovering from or seeking treatment for serious health condition that renders employee unable to perform at least one essential function of position.Grieve death of, attend funeral/alternative for, or make arrangements necessitated by the death of a family member (leave must be completed within 60 days of notification to employee of death).	Deployment of employee’s spouse or notification to spouse of impending call or order to active duty or deployment.
For how long can leave last?	Up to 12 weeks for paid family and medical leave or safe leaveUp to 16 weeks for paid and unpaid family and medical leave combinedUp to 2 additional weeks for pregnancy disability leave (18 weeks total).	Up to 12 weeks (2 weeks for death of family member) within any one-year period.A woman using pregnancy disability leave may take 12 additional weeks for a qualifying family leave purpose.An employee using 12 weeks of leave to care for a new child may take 12 additional weeks for the purpose of sick child leave.	14 days, which must be included in the total amount of family leave.
Is leave required to be paid?	Yes, funded by mandatory payroll tax on employees (60%) and employers with more than 25 workers (40%), beginning Jan. 1, 2023. Combined contribution rate for 2023 is 1% of employee wages.Compensation to be paid on a sliding scale beginning in 2023, based on income.	No.	No.
May leave be taken intermittently?	Generally yes, for leave for serious health condition of an eligible employee or family member.	Generally yes, for leave for a serious health condition of an eligible employee or family member.	Yes.
Must an employer maintain an employee’s health benefits while he or she is on leave?	Yes.	Yes.	Yes.
Are employers required to provide a notice to employees about the law?	Yes, effective Jan. 1, 2023. Regulations and a model notice from the Oregon Employment Dept. are expected.	Yes. Employers must post a notice of the law’s requirements in every establishment in which employees are employed.	Not addressed by statute.
Are individuals required to provide notice?	Yes. Employers may require at least 30 days’ notice and an explanation for the leave, where foreseeable. If leave is not foreseeable, oral notice must instead be given within 24 hours of starting leave, and written notice within 3 days of the leave. Failure to give notice may result in reduction of first weekly benefit payment by up to 25%.	Yes. Employers may require 30 days’ notice, unless the leave is for an unexpected occurrence, where verbal notice must be given within 24 hours of starting leave, and written notice 3 days after returning to work.	Yes. Employee must provide employer with notice within 5 business days of receiving official notice of order to active duty or of leave from deployment.
Must an employee be restored to his or her prior position or to a similar or equivalent position?	Yes.	Yes.	Yes.

Click here to read FAQs about Family Leave from the Oregon Bureau of Labor and Industries (BOLI). Click here to read a fact sheet from BOLI about the Oregon Military Family Leave Act. For more information, please contact BOLI.

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency.

On October 29, 2020, the Departments of Labor, Health and Human Services, and the Treasury (collectively, “the Departments”) finalized proposed rules regarding transparency requirements for non-grandfathered group health plans. The Transparency in Coverage (“TiC”) rules initially required disclosures of pricing and cost-sharing under plans to first take effect beginning January 1, 2022. On August 20, 2021, the Departments issued an FAQ that delayed the TiC requirement to publish certain machine-readable files (“MRFs”) on a public website.

Briefly, the TiC rules require publicdisclosure, via MRFs, of the following information:

• In-network provider rates for covered items and services; and
• Out-of-network allowed amounts and billed charges for covered items and services.

A third required MRF disclosing negotiated rates and historical net prices for covered prescription drugs is currently delayed pending future guidance.

Employers sponsoring non-grandfathered insured and self-funded plans should be prepared to comply with the MRF disclosure requirements, as follows:

• For plan years that begin between January 1, 2022, and July 1, 2022, the files must be posted by July 1, 2022.
• For plan years that begin after July 1, 2022, the information must be posted in the month the plan year begins.
• Going forward, the information must be updated monthly and clearly indicate the date the files were most recently updated.

Who is Responsible for Compliance?

Employers sponsoring a fully insured arrangement can rely on the carrier to post this information when there is an agreement between the plan and the carrier. If the carrier fails to provide full or timely information, the carrier (not the plan/employer) is liable.

Similar relief is not available to self-funded group health plans. While a self-funded health plan may contract with a third party (like the third-party administrator or “TPA”) to provide the required disclosure, the plan is ultimately responsible.

Good Faith Compliance – Safe Harbor

A plan or carrier will not fail to comply with these requirements when, acting in good faith and with reasonable diligence:

• an error or omission in the required disclosure is made, provided the information is corrected as soon as practicable.
• the internet website hosting the MRF files is temporarily inaccessible, provided that the plan or carrier makes the information available as soon as practicable.

Further, when information must be obtained from a third party, the plan or carrier will not fail to comply with this requirement because it relied in good faith on the information provided by the third party, unless it is known (or reasonably should have known) the information is incomplete or inaccurate.

What is the Disclosure Requirement?

MRFs will typically contain vast amounts of data such that they will be quite large. They will be in a machine-readable language such that the data will not be easy to interpret or search, and few, if any, plan sponsors will be able to meet the disclosure requirements on their own. Thus, carriers and TPAs are assisting plan sponsors in complying with these requirements by hosting the files and posting them on public servers or websites they will maintain.

This disclosure requirement is unique in that it must be made to the public as opposed to most disclosure requirements that are limited to plan participants. As such, posting the information or a link to the information on a company’s intranet or behind a password protected page will not be sufficient disclosure.

A conservative reading of the requirements suggests a plan sponsor should post a link to the MRFs on itspublic-facing website even if the carrier or TPA is doing the same on behalf of the plan.

Example. ABC Company sponsors a self-funded medical plan. Green TPA provides ABC Company with a Uniform Resource Locator (“URL,” briefly, a website address) where MRFs for the plan will be posted publicly and updated. ABC Company adds the URL link to their public-facing company website.

If a plan has multiple carriers or TPAs, multiple links may be necessary.

Several carriers and TPAs are taking this position, though further guidance would be welcome.  For example, UnitedHealthcare takes the following position: “The regulation requires self-funded customers accessing the UnitedHealthcare public MRF website to add the URL to their own public website.” See Transparency in Coverage – External Frequently Asked Questions(May 5, 2022), page 15.

Direct Provider Contracting and Alternative Payment Models

For certain self-funded plans, one approach to controlling the cost of care involves plan sponsors directly contracting with providers or facilities to provide services to plan participants for discounted amounts. This is often in addition to the more prevalent commercial approach whereby a plan rents an established network from an insurance carrier or TPA. If the plan’s TPA is not adjudicating claims for these unique agreements, the TPA may not have access to the required information to meet the TiC MRFs requirements. Plans should be proactive in coordinating with all applicable vendors and service providers to ensure accurate data is posted by the applicable deadline.

Further, the Departments recently issued FAQ 53 that addresses the compliance challenge for plans that have an alternative payment model and may not always provide a certain dollar amount for services and items before they are provided. Specifically, the plan may have negotiated rates with providers based upon a “percentage of billed charges” which would only ensure an accurate dollar amount after the services or item has been provided. As the rule’s purpose is to provide transparency in advance of the cost of these services, this alternative payment arrangement posed compliance challenges.

In response, the Departments have provided a safe harbor for arrangements that do not permit plans to accurately determine dollar amounts for contracted items and services in advance of their provision. The safe harbor allows plans to:

• report a percentage number instead of a dollar amount for contractual arrangements where the plan or carrier pay the in-network provider a percentage of billed charges; and
• disclose an open text field for outlining formulas, variable methods, or other information necessary to understand the arrangement when a percentage or dollar amount is not possible.

The Departments caveated that the safe harbor does not exist for arrangements where it still is possible to sufficiently disclose a dollar amount.

Employer Action

Employers sponsoring non-grandfathered fully insured group health plans should obtain written assurances that the carrier will be responsible for posting the MRFs. Employers with fully insured plans may post a link to the MRFs from the carrier on their public website. Coordinate with IT resources to ensure that a link to the MRFs is posted timely.

Employers sponsoring self-funded non-grandfathered group health plans should:

• Reach out to TPAs (or other vendors) to ensure that they will assist in creating and posting the MRFs on behalf of the plan. It appears that most national carriers acting as TPAs on self-funded business have indicated they will support creating and posting this information.
• Add a link to the MRF URL to the employer’s public-facing website. Coordinate with IT resources to ensure that a link to the MRFs is posted timely.

Overview of SEP during a declared disaster or other emergency

A special enrollment period (SEP) exists for individuals affected by a disaster or other emergency declared by a federal, state or local government entity who were unable to, and did not make an election during another valid election period.  This SEP allows for enrollment and disenrollment elections. For more information, go to CY2021 MA Enrollment and Disenrollment Guidance

What you need to know about this SEP 

The SEP information provided below is based on an executive order by the U.S. Department of Health & Human Services on April 16, 2022. The SEP start and end dates are accurate as of the date of this communication.

Disaster or emergency	Impacted counties	Incident start & end dates	SEP start & end dates
Public Health Emergency (Due to consequences of COVID-19 pandemic)	Nationwide	4/16/2022 – 7/15/2022	4/16/2022 – 9/30/2022

Who’s eligible? 

Individuals are eligible for this SEP if they:

• Reside, or resided at the start of the SEP eligibility period, described in this guidance, in an area for which a federal, state or local government entity has declared a disaster or other emergency. Or, they do not reside in an affected area, but rely on help making health care decisions from one or more individuals who reside in an affected area; and
• Were eligible for another election period at the time of the SEP eligibility period; and
• Did not make an election during that other valid election period due to the disaster or other emergency.

Enrollment instructions

IMPORTANT: Remember, you cannot use this SEP opportunity to proactively market to beneficiaries. However, you can assist any clients who contact you about this SEP.

• If an individual wants to enroll and believes they may qualify for this SEP, you need to ask the beneficiary if they can show proof that they lived/live in an impacted area at the start of the incident period. If they do not have proof, ask them to verbally attest.
   
• When helping eligible clients enroll, please select the weather-related or major disaster option in the Reasons for Special Enrollment Period Eligibility section of the application.  

California’s minimum wage rate is set to increase to $15 per hour for all workers on Jan. 1, 2023. However, the state is considering additional minimum wage increases and other measures to combat inflation struggles.

On May 7, 2022, Pennsylvania amended its minimum wage regulations to update the tipped employee exemption and employer requirements for tip pooling. An additional amendment to the state’s overtime laws also clarifies that the regular wage rate for nonexempt salaried employees is the amount of remuneration divided by 40 hours. The amendments will become effective on Aug. 5, 2022.

Pennsylvania Minimum Wage Rate 

Pennsylvania’s minimum wage rate is $7.25 per hour. 

• An employee’s wages include any means of compensation due to him or her by reason of his or her employment. This includes salaries, tips and the reasonable costs of board, lodging and other facilities, when these are customarily provided to employees. 
• State law allows employers to pay tipped employees a cash wage of $2.83 per hour, as long as the employee’s tips, when added to the cash wage, are at least equal to the state’s minimum wage rate. Currently, tipped employees in Pennsylvania must earn at least $30 per month in tips to qualify for this exemption. Starting Aug. 5, 2022, the monthly tip threshold for tipped employees will be $135. 

More Information

Please contact the Pennsylvania Department of Labor and Industry for more information on wage and hour issues.  

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency. 

On May 5, 2022, Oklahoma adopted senate bill (SB) 1345 to allow employers the option of paying employee wages through deposit at a financial institution or payroll card. SB 1345 becomes effective on Nov. 1, 2022.

Oklahoma Wage Payment Requirements 

Frequency of Payment

• Employers must pay employee wages at least twice per month on regular paydays established in advance by the employer. However, public, exempt, school district, technology center school district and non-private foundation employees must be paid at least once per month.
• Regular paydays must generally be within 11 calendar days after the end of the period, unless employers reach a different mutual agreement with their employees. However, Oklahoma laws do not restrict an employer from paying wages to its employees at earlier days or at more frequent intervals. 

Method of Payment

Oklahoma law requires employers to pay wages in lawful United States currency or through electronic means. Every employer-issued check, cashier’s check, draft, time check, store order or scrip must be redeemable on demand and at face value (with no discount or fee to the employee).

In addition, on May 5, 2022, Oklahoma adopted senate bill (SB) 1345 to allow employers the option of paying employee wages through deposit at a financial institution or payroll card. SB 1345 becomes effective on Nov. 1, 2022. SB 1345 allows employers in the state to pay all wages due to their employees on payday through: 

• Deposit at predesignated financial institutions of their employees’ choice; or
• A payroll card account if employees do not consent or designate a financial institution for deposit.

SB 1345 specifies that employers may opt to pay employee wages through deposit at their discretion. 

Under SB 1345, “financial institution” means a bank, savings bank, savings and loan association, or credit union whose deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration or any successor institution. “Payroll card” means a card or other device used by an employee to access wages from a payroll card account.

More Information

For more information, please see the Oklahoma Labor Statutes (§ 40-165.2).

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency. 

Delaware has enacted the Healthy Delaware Families Act, requiring job-protected, paid family and medical leave for employees in Delaware. The leave is funded by employer and employee contributions that begin Jan. 1, 2025. Leave benefits become available Jan. 1, 2026, and will provide up to 80% of workers’ weekly wages.

Family and Medical Leave in Delaware (DE)

Delaware Paid Family and Medical Leave

In May 2022, Delaware enacted the Healthy Delaware Families Act, requiring job-protected, paid family and medical leave for employees in Delaware. The leave is funded by employer and employee contributions that begin Jan. 1, 2025. Leave benefits become available Jan. 1, 2026, and will provide up to 80% of workers’ weekly wages.

Covered Employers and Employees

The law covers employers with 10 or more employees working in Delaware; however, only its parental leave requirements apply to employers with 10 to 24 employees. In addition, the law does not apply to businesses that are completely closed for 30 or more consecutive days per year.

In general, employees are eligible for leave if they have been employed for 12 months by their current employer, worked 1,250 hours during that time and primarily report for work at a worksite in Delaware.

Family and Medical Leave Benefits

Employers approve or deny applications for the leave, subject to appeal. Workers receive up to 12 weeks’ parental leave per year for child bonding, but employers with fewer than 25 employees may reduce an employee’s parental bonding leave by half for the first five years of the program. Leave is limited to six weeks per any 24-month period for an employee’s or family member’s serious health condition, or for a qualifying military exigency. Total combined family and medical leave is capped at 12 weeks per year per employee. 

Workers receive 80% of their average weekly wage, up to a maximum of $900 in 2026 and 2027, with increases thereafter linked to the consumer price index.

Funding

Program funding is shared equally between employers and employees via payroll contributions. The 2025 and 2026 contribution rate is 0.4% of wages for medical leave, 0.08% for family caregiving leave and 0.32% for parental leave.

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency.

TUESDAY, MAY 24, 2022, AT 10 AM

Details

Once you’ve reached Medicare age, there is a lot to learn about!
Please join us for our free Medicare seminar to learn about your health insurance options. We will also have an attorney present to discuss Medicare planning.

You may attend even if you are already have coverage.

Time/Date: 10 am on Tuesday, May 24, 2022
Address: 4175 Veterans Memorial Hwy Ronkonkoma, NY 11779
Floor/Room – 3rd Floor/Suite 300
*For accommodation of persons with special needs at this meeting, please call (631) 738-6760 a few days prior to the event so that we can make sure we have the proper accommodations for you.

*These free events are held monthly & all of our events follow CDC guidelines and recommendations.