Coutdown to Barack Bottom? (Part 3 of 3)

Equal Remedies Act:

Senator Edward Kennedy (D-MA), introduced legislation that would eliminate the caps on the amount of damages plaintiffs can recover in employment discrimination cases under the Civil Rights Act of 1991.

Under the Civil Rights Act of 1991, plaintiffs suing under Title VII of the Civil Rights Act of 1964 (Title VII) and the Americans with Disabilities Act of 1990 (ADA) can recover compensatory and punitive damages for intentional employment discrimination. However, the statute caps the amount of damages a plaintiff can recover based on the size of the employer between $50,000 and $300,000.

The Equal Remedies Act (S. 1928) would repeal the caps, making unlimited compensatory and punitive damages available for violations of Title VII and the ADA. 

http://www.barackobama.com/pdf/issues/Fact_Sheet_Civil_Rights_and_Criminal_Justice_FINAL.pdf

Employment Non-Discrimination Act:

The Employment Non-Discrimination Act (ENDA) would, in most cases, make it illegal for an employer to fire, refuse to hire, or deny a promotion to a worker on the basis of sexual orientation.

http://origin.barackobama.com/issues/civil_rights/

Independent Contractor Proper Classification Act:

Currently, Section 530 of the Internal Revenue Code has a safe harbor for employers who have classified workers as independent contractors. That safe harbor requires the IRS to excuse misclassifications and allow an employer to continue reporting employees as 1099 independent contractors if the employer:

1.    has been treating similarly situated workers as independent contractors,

2.    has been consistently reporting the workers as independent contractors to the IRS and has been issuing 1099s to the workers, and

3.    has a reasonable basis to classify employees as contractors. An employer has a reasonable basis if it relied on a long-standing practice of a significant segment of the industry or relied on a revenue ruling or court decision.

The bill seeks to amend Section 530 by requiring employers to reclassify workers that had been misclassified as independent contractors, and by prohibiting employers from relying upon industry practice as a justification for misclassifying employees.

COUNSEL TO MANAGEMENT:

Management can expect big changes on the federal level and, in response, big changes on the state level.  While California generally imposes more stringent law than Federal law, California lawmakers may see the imposition of more stringent Federal law as an opportunity to make California law even tougher.  Management should monitor our site for the status of the proposed legislation. 

It could be a wild ride for employers who may hit Barack Bottom. 

The goal of this article is to provide employers with current labor and employment law information. The contents should not be interpreted or construed as legal advice or opinion. For individual responses to questions or concerns regarding any given situation, the reader should consult with The Saqui Law Group at (831) 443-7100 in Salinas.