Top HR Considerations for 2021
1. U.S. Department of Labor Issues Final Rule Clarifying Independent Contractor Status.
On January 6, 2021, the U.S. Department of Labor issued its final rule clarifying independent contractor verses employee status. The new rule reaffirms the “economic reality” test and identifies two core factors that are most relevant including: (i) nature and degree of control over the work, and (ii) the worker’s opportunity for profit or loss based on the work. Three additional factors were also identified as additional guideposts including: (i) the amount of skill required for the work, (ii) the degree of permanence of the working relationship, and (iii) whether the work is part of an integrated unit of production.
The rule will become final on March 8, 2021. If you have independent contractors in your workforce now is a good time to reassess and confirm that they are properly classified. Click here for additional information.
The Department of Labor’s recent rule clarifying the independent contractor status has been put on hold by the Biden administration. We will continue to monitor this issue for updates.
2. Mandatory Employee COVID-19 Vaccinations?
Last month, the U.S Equal Employment Opportunity Commission issued guidance generally allowing employers to require employee to get a COVID-19 vaccination. The updated information from the EEOC is “guidance” only and employers considering making a vaccination mandatory should get counseling before implementing a blanket requirement. Based on recent national surveys, a majority of employers will “encourage”, but not “require” employees to be vaccinated.
3. Employee Performance Evaluations and Pay Increases.
How do you effectively evaluate performance in a year disrupted by the pandemic? How do you properly compensate employees on goals and objectives that may not have been met due to the pandemic? Employers should take a fair and objective approach to balance evaluations and pay increases in the context of the disruption that we continue to navigate. Here is some good labor market and economic data from the U.S. Bureau of Labor Statistics.
4. EEOC Schedules 2021 Openings of EEO Data Collections.
On January 12, 2021, the U.S. Equal Employment Opportunity Commission announced the schedules of the 2021 openings of EEO data collections after the delay due to the COVID-19 public health emergency. For private sector employers with more than 100 employees the data for 2019 and 2020 will be due in April 2021. See the attached link for additional information.
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