SHRM Opposes Legislation In Letter to Members

In a letter to their members, SHRM voiced their opposition to several bills being debated in the House titled the Paycheck Fairness Act and the Ledbetter Fair Pay act. Acting as an update to the existing Equal Pay Act, the bills would create new mandates for employers as well as making it easier to suit for punitive damages. As a result of the nature of the bill, SHRM sent out a message urging members to contact their representatives to vote no based on the information below:

The Ledbetter Fair Pay Act – would eliminate the statutory time limit for filing pay discrimination claims.

The Paycheck Fairness Act – would prohibit an employer’s ability to justify paying different salaries to workers based in different geographic locations.

The House is scheduled to vote on both the Ledbetter Fair Pay Act and the Paycheck Fairness Act by the end of this week. SHRM is urging members to let your Representative know today that these bills go far beyond reasonable, balanced approaches to address wage discrimination.

Background

Ledbetter Fair Pay Act (H.R. 11) – The Ledbetter legislation is a congressional response to the U.S. Supreme Court’s May 2007 decision in Ledbetter v. Goodyear Tire & Rubber Co. In that case, the Court held that the 300-day time limit for filing a charge Title VII of the Civil Rights Act starts after the alleged unlawful employment action, and does not re-start a new upon receipt of each successive paycheck

The Ledbetter Fair Pay Act would effectively eliminate the uniform statue of limitations on pay discrimination claims and restart the time clock for filing such a charge with the EEOC upon the receipt of each successive paycheck. The bill would also re-start the time clock when a retiree receives an annuity check from an employer, and would thus keep employers liable to a discrimination claim potentially decades after an alleged act of misconduct. The legislation would amend the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act.

Paycheck Fairness Act (H.R. 12) – The Paycheck Fairness Act would amend the Equal Pay Act of 1963, which requires that jobs requiring comparable functions, skills, effort and responsibility in similar working conditions must compensate equally. Some stakeholders contend that the Equal Pay Act is not sufficient to remedy wage discrimination. While wage differentials remains an important workplace issue, debate continues over whether the differential is attributable to discrimination or the result of legitimate pay practices such as education, skill, experience, or tenure.

The Paycheck Fairness Act would limit an employer’s ability to justify paying different salaries to workers based in different locations with different costs of living. Second, the bill would lift the caps on compensatory or punitive damages for which employers would be liable, in addition to current liability for back pay. These damage penalties would apply to even unintentional pay disparities.

SHRM’s Position

SHRM adamantly opposes discrimination based on gender and believes any intentional misconduct against an employee should be promptly addressed and resolved. We also recognize that some court decisions have narrowed the scope of pay discrimination protections. As a result, we believe that it is appropriate and necessary for Congress to re-examine pay discrimination laws to determine if changes may be needed to restore protection under the law. However, SHRM opposes any efforts to eliminate the statute of limitations for filing claims or to limit legitimate employer pay practices. As a result, SHRM is opposed to both the Lilly Ledbetter Fair Pay Act and the Paycheck Fairness Act.

For more information on this bill visit GovTrack or the SHRM website.

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New ADA Amendments Act Passes

Supreme Court of the United States

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After the new ADA Amendments Act sailed through Congress, it is now up to President Bush, and all indications are, that after initial hesitations, he will be signing off on it shortly.  This is a  bold move by legislators that opens up employers across the country to many more disability and discrimination claims under the ADA.  Earlier this year it passed with overwhelming majority in both the House and Senate.

The ADAAA would broaden the ADA’s reach by essentially reversing the United States Supreme Court rulings that narrowly interpret the meaning of the key phrase “substantially limits a major life activity.”  There would be several major changes as a result of this legislation, including:

  • The ADAAA would define disability as any actual, past, or perceived physical or mental impairment that substantially limits a major life activity, and would define substantially limits a major life activity as “materially restricts a major life activity.”
  • The ADAAA would also, for the first time, provide a list of per se major life activities. The list includes, but is not limited to, caring for oneself, seeing, hearing, eating, sleeping, walking, standing, lifting, speaking, breathing, learning, reading, concentrating, thinking, communicating, working, and the performance of any major bodily function.
  • The ADAAA would also prohibit the consideration of measures that reduce the impact of an impairment on an individual. In other words, a hearing impaired person who can hear just fine with hearing aids who might not be covered under the ADA currently might well be covered if the ADAAA is passed into law.

The ADAAA would, however, would make clear that employers are not required to provide reasonable accommodations to persons who are “regarded as” being disabled but who do not actually have a disability.

There has been strong backlash from business owners who feel this will allow employees who are unhappy with their situation to use the bill as leverage in their favor even where no real disability exists.  Opponents also state that this will significantly increase the amount of litigation under the ADA.

Supporters of the bill:

  • The chief sponsor of the bill, the House Democratic leader, Representative Steny H. Hoyer of Maryland, said the situation was now bizarre. “An individual may be considered too disabled by an employer to get a job, but not disabled enough by the courts to be protected by the A.D.A. from discrimination,” Mr. Hoyer said.
  • The chief Republican sponsor, Representative F. James Sensenbrenner Jr. of Wisconsin, said the Supreme Court had “chipped away at the protections” of the 1990 law, leaving millions of Americans with no recourse or remedy for discrimination.

Read more about what the supporters have to say at the Workplace Prof Blog.

If the ADAAA is passed, employers are likely going to face more instances in which they need to provide accommodations to employees who might not have been considered disabled in the past, but who are considered disabled under the new law. Employers should study the new law once the final version is passed and make the appropriate changes to their workplace policies and procedures.  To get all federal and state laws/regulations updated daily, as well as desktop training for such hot-button issues, visit HRSentry.

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Is a new definition of “disability” coming soon?

Guest Post courtesy of AGOSNET:

Sweeping changes to the Americans with Disabilities Act (ADA)—which protects individuals with disabilities from, among other things, discrimination in employment—are almost certain to be coming soon. On June 24, 2008, the United States House of Representatives passed H.R. 3195, the ADA Amendments Act (ADAAA) by an overwhelming vote of 402–17. A very similar version was introduced in the Senate on August 1, 2008 (S. 3406) with 56 Senators as original co–sponsors, and over the past couple of weeks, approximately 70 Senators have signed on in support of the bill. What this means is that it appears almost certain that, when the Senate reconvenes in September, it is highly likely that the ADAAA will be passed, most likely with enough support to override a veto if the President does not ultimately support the amendments.

The ADAAA, if passed by the Senate, would likely drastically change the ADA as we currently understand it by broadening the ADA’s protections to a wider range of individuals. Supporters of the ADAAA contend that the act will restore original congressional intent of providing broad coverage to persons with disabilities. Beginning in 1999, the United States Supreme Court has issued several decisions that those who support the ADAAA believe too narrowly construed the ADA and weakened the ADA’s effect and original intent of providing broad protection to persons with physical and mental impairments that substantially limit a major life activity. Specifically, the United States Supreme Court has held that workers with disabilities who are able to effectively mitigate their impairments (for example, by the use of medications, corrective vision or hearing devices, prosthetics, and other assistive technology) are essentially not disabled—or at least not disabled enough to qualify for the ADA’s protections. These decisions and lower court decisions following them have held that certain serious conditions that one might think are disabilities—such as epilepsy, muscular dystrophy, cancer, diabetes, and cerebral palsy—are, in fact, not always disabilities. Because of the narrow interpretation of the ADA adopted by the United States Supreme Court, many plaintiffs are found not to actually be disabled. By one account, in 2007, only 3 percent of ADA plaintiffs were ultimately successfully, largely because so many of them are found not to be disabled.

The ADAAA would broaden the ADA’s reach by essentially reversing the United States Supreme Court rulings that narrowly interpret the meaning of the key phrase “substantially limits a major life activity.” The ADAAA would define disability as any actual, past, or perceived physical or mental impairment that substantially limits a major life activity, and would define substantially limits a major life activity as “materially restricts a major life activity.” The ADAAA would also, for the first time, provide a list of per se major life activities. The list includes, but is not limited to, caring for oneself, seeing, hearing, eating, sleeping, walking, standing, lifting, speaking, breathing, learning, reading, concentrating, thinking, communicating, working, and the performance of any major bodily function. The ADAAA would also prohibit the consideration of measures that reduce the impact of an impairment on an individual. In other words, a hearing impaired person who can hear just fine with hearing aids who might not be covered under the ADA currently might well be covered if the ADAAA is passed into law. The ADAAA would, however, would make clear that employers are not required to provide reasonable accommodations to persons who are “regarded as” being disabled but who do not actually have a disability.

The bottom line is that all employers should be aware that sweeping changes to the ADA are likely coming soon. These changes will result in more individuals being covered by the ADA and its protections. Employers should pay close attention to the status of S. 3406 and attempt to be aware of when these changes will go into effect and affect their organization’s practices. If the ADAAA is passed, employers are likely going to face more instances in which they need to provide accommodations to employees who might not have been considered disabled in the past, but who are considered disabled under the new law. Employers should study the new law once the final version is passed and make the appropriate changes to their workplace policies and procedures.

AGOSNET is committed to providing employers with the most proactive and responsive risk management tools available. their products and services include claims and incident prevention, claims and incident management, hiring practices, workplace policies and procedures, reporting mechanisms, and training. Their robust desktop training programs, including sexual harassment, equipment safety, and school/workplace bullying, provides employers with a simple method for purchasing, delivering, and tracking employees progress.

Bush Approves New GI Laws

18 months after Senator Jim Webb (D-Va.) first introduced a proposed GI Bill that would provide veterans with more comprehensive educational benefits, the bill was signed into law with overwhelming bi-partisan support form both the House and Senate. The bill is designed to give returning veterans similar benefits as those coming home from World War II received, which at the time included the full cost of tuition plus a monthly stipend. The new GI Bill will cause payment rates to go up, based on college and university costs in the service members state of residence. Eligible students will also receive a monthly stipends for books and housing, up to $1,000 for each.

Going into effect starting the middle of 2009, the new education benefits will be available to all service members and veterans who have served on active duty for at least 90 consecutive days since Sept. 11th, 2001. The bill will be paid out in increments determined by the amount of time served on active duty and cover members of the National Guard and Reserves. The new bill has also lengthened the amount of time Veterans have to enroll in this service to 15 years from the last date of active duty.

Eligibility:
An individual must have a minimum of 90 days
active duty after September 10, 2001, and:

  • Be honorably discharged from Armed Forces; or
  • Be released from Armed Forces with service characterized as honorable and placed on the retired list, temporary disability retired list, or transferred to the Fleet Reserve or the Fleet Marine Corps Reserve; or
  • Be released from the Armed Forces with service characterized as honorable for further service in a reserve component; or
  • Be discharged or released from Armed Forces for:
  1. EPTS (Existed Prior to Service)
  2. HDSP (Hardship) or
  3. CIWD (Condition Interfered with Duty); or
  4. Continue to be on active duty.

Visit the Veterans Assistance GI Bill homepage for more information on this new bill.