President Obama Unveils Plan to Expand Overtime Pay
President Obama is expected to propose a plan later this week
which would significantly change the nation's overtime pay law,
dramatically expanding the number of people who will qualify for
overtime pay after working more than 40 hours in a week. The
proposed rule could extend overtime wages to 5 million more
American workers than are currently qualified.
The President will recommend updating the Department of Labor's
overtime rules so that salaried workers who earn less than roughly
$50,400 per year would be guaranteed to receive 1 and 1/2 times
their regular pay when they work more than 40 hours in a week.
Under the current rules, salaried workers must earn less than
$23,600 per year in order to be eligible for guaranteed overtime
pay. Workers whose salaries fall beneath the salary threshold are
guaranteed overtime pay regardless of their position.
The White Houses' proposed changes must still undergo a
public-comment period before it can be finalized sometime next
year. The proposed changes can be enacted through regulation,
without congressional approval.
The President is expected to release more details concerning the
proposed rule later this week and we will keep you updated on these
developments.
U.S. Supreme Court Holds Failure to Provide Religious Accommodation Could be Intentional Discrimination Even Where the Employer Had No Actual Knowledge of the Need for Accommodation
On June 1, 2015, the United States Supreme Court found in favor
of the Equal Employment and Opportunity Commission
("EEOC") in EEOC v. Abercrombie & Fitch Stores,
Inc., a closely watched religious discrimination case. The
EEOC had argued that Abercrombie & Fitch
("Abercrombie"), violated Title VII of the Civil Rights
Act of 1964 ("Title VII") when it failed to hire a
prospective employee, Samantha Elauf, because of her religious
practice without offering her a reasonable accommodation. The Court
held that an applicant raising a disparate-treatment claim under
Title VII does not need to show that the employer had actual
knowledge of the applicant's need for accommodation of a
religious practice, but need only show that the need for a
religious accommodation was a motivating factor in the
employer's decision.
Title VII
Title VII makes it an unlawful employment practice for an
employer to discharge or refuse to hire an individual because of
the individual's religious observance or practice unless the
employer demonstrates that it is unable to accommodate the practice
without undue hardship in the conduct of its business.
The Facts
The plaintiff, Samantha Elauf, a practicing Muslim, wore her
hijab, a headscarf worn by Muslim women as a symbol of modesty,
when she interviewed for a position at Abercrombie. During her
interview, Elauf did not mention that she was Muslim or that she
wore her hijab for religious reasons, and she did not affirmatively
request an accommodation that would permit her to wear the
headscarf at work. Although Elauf was qualified for the position,
she was not hired because her hijab violated the company's
"Look Policy," which prohibited head coverings.
Abercombie's Position
Abercrombie argued that it did not have actual
knowledge of the Elauf's need for an accommodation and
therefore could not have intentionally discriminated or failed to
accommodate the plaintiff.
The EEOC's Position
The EEOC argued that an employer need not have actual notice of
the need for an accommodation, reasoning that employers have a
better knowledge of work rules, and may be able to identify
religious conflicts not known to applicants.
The Decision
The Court held that applicants need show only that their need
for an accommodation was a motivating factor in the employer's
decision and that Title VII does not impose a burden on a plaintiff
to demonstrate that a company had actual knowledge of the
applicant's religious practice or need for an
accommodation to show intentional discrimination on the basis of
religion. The Court noted that Title VII does not "impose a
knowledge requirement," in contrast to other
antidiscrimination statues, like the Americans with Disabilities
Act of 1990. Rather, Title VII focuses on whether religion is a
motivating factor in an employment decision -- and held that motive
and knowledge are separate concepts.
The Court stated that "the rule for disparate-treatment claims
based on a failure to accommodate a religious practice is
straightforward: An employer may not make an applicant's
religious practice, confirmed or otherwise, a factor in employment
decisions." The Court acknowledged that if the applicant
requested an accommodation, or the employer was certain that the
applicant followed a practice that would require accommodation, it
may be easier to infer motive, but held that neither is required
for liability.
The Court also noted that a neutral policy is not necessarily a
defense to a disparate treatment claim since Title VII demands more
than "mere neutrality with regard to religious practices"
and gives them "favored treatment." Accordingly,
employers are required to provide reasonable accommodation of
religion, including modification of neutral policies, so long as
the modification does not impose an undue hardship to the
employer.
The Court reversed the decision of the Court of Appeals for the
Tenth Circuit that granted summary judgment to Abercombie and
remanded the case for further consideration in light of its
decision.
What This Means to You
In light of the Court's recent decision, employers must ensure that the religious practice of an applicant or employee -- whether suspected or confirmed -- is not a factor when making employment decisions. Employers should not assume that neutral polices absolve them for providing a reasonable accommodation due to religion. In this regard, employers should consider taking the following proactive steps:
- Train managers and human resources staff to ensure that an
applicant's or employee's known or suspected religious
practice is not considered when making hiring decisions or any
other employment decisions.
- Review your current policies, including "Look
Policies" and be prepared to modify such policies to
accommodate religious practices
- Articulate a commitment to providing reasonable accommodations,
and carefully evaluate when a religious accommodation would or
would not be an undue hardship;
- Have a process in place for addressing religious accommodation
requests;
- Take note of any applicable state or local laws addressing
religious discrimination and harassment, which may be broader than
required by federal law.
Special thanks to Daniella M. Muller, an associate in the Employment Practice Group, for her assistance preparing this alert.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.