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APRIL 2019

 

In This Issue:

EEO-1 Pay Data Reporting is Back

By Caitlin Egeck, JD, HR and Compliance Consultant
Cascade Employers Association
[email protected]

As a reminder, employers with 100 or more employees and most federal contractors with 50 or more employees are required to submit an EEO-1 Report annually.

If EEO-1 reporting applies to your company, you may recall that due to the recent partial government shutdown, the Equal Employment Opportunity Commission (EEOC) had delayed the opening of the 2018 EEO-1 submission period until March 18th. It has also extended the deadline to file the report to May 31, 2019.

Historically, the EEO-1 Report has required covered employers to submit employment data by race, ethnicity, and sex. In 2016 the EEOC announced, in a step toward the promise of equal pay, that the EEO-1 Report would also require summary pay data collections. However, in 2017, under new administration, the Office of Management and Budget (OMB) placed a stay on this pay data reporting requirement.

Soon after this stay, the National Women’s Law Center (NWLC) and the Labor Council for Latin American Advancement filed a lawsuit against OMB. In short, the suit stated that OMB unlawfully interfered with the EEOC’s right to enforce civil rights laws.

On March 04, 2019, a U.S. Federal District Court ruled on this lawsuit, finding that OMB did not have the authority to issue the stay on the EEOC’s reporting requirements. As a result of this finding, the court vacated the stay and reinstated the 2016 EEO-1 summary pay data reporting requirements.

It is currently unknown whether OMB will appeal this ruling. With that, employers should be aware that pay data will presumably be required on the May 31, 2019 deadline – although another extension from the EEOC is likely.

Cascade will continue to monitor and update you on this evolving EEO-1 story. If you have any questions, please let us know!

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Five Things You May Not Know About Tillamook County Creamery Association

By Gayle Gilham, President
Cascade Employers Association
[email protected]

Tillamook County Creamery Association logoFor 110 years, Tillamook County’s largest employer has stood behind the honest values of their farmer-owners. It’s from them they’ve learned passion can’t be faked, hard work can’t be outsmarted and real food is worth fighting for. Did you know....

  1. It all started when European settlers arrived in Tillamook Valley around 1851, finding a silver lining to the wet, cool climate and the green grass it produced: perfect for raising dairy cows. Then in 1909, several small creameries joined forces to ensure all cheese made in the Tillamook Valley would be the same high quality. Each creamery contributed $10 to start the cooperative: Tillamook County Creamery Association.

  2. Fast Forward 110 years: Rapid national expansion and product innovation have fueled more than 60% growth over the past five years. Tillamook Creamery generated $800 million in sales in 2017, up from $477 million in 2012, when Patrick Criteser joined the cooperative as president and chief executive officer. Tillamook’s iconic products now include award-winning cheese, butter, sour cream, ice cream and yogurt. The latest new product line, Tillamook Cheeseboards, contains premium snack packs featuring a variety of cheeses, crackers and fruit spreads.

  3. Tillamook has two manufacturing facilities in Oregon - one at their flagship cheese and ice cream making plant in Tillamook on the Oregon coast and another cheese making facility in Boardman, Oregon. They welcome more than one million visitors a year at their iconic Tillamook Creamery, aka visitor center, which was rebuilt in 2018 to create a better experience for generations of fans.

  4. As a co-op, employees are a lot more like family. Tillamook relies on and embraces diverse perspectives, thoughts, backgrounds and cultures to inform their work. They’re committed to creating a climate of inclusion and conditions where all employees feel valued and a sense of belonging. At the end of 2017, 37% of their total workforce was female, 44% of their managers were female, and 26% of their workforce was racially and ethnically diverse.

  5. With people as the lighthouse of their success, Tillamook offers a generous benefits program, including paid time off and a parental leave benefit; wellness programs and fitness incentives; generous 401(k) matching and profit sharing; learning and professional development; paid community volunteer time; creamery discounts; and office snacks (specific benefits may vary depending on position and work location).

Cascade is proud to feature Tillamook County Creamery Association, an organization that knows its success is about more than an incredible loaf of cheddar, aiming to create a viable future in farming communities and an organization that is committed to creating an enriching and fulfilling culture for their employees which is grounded in purpose and shared values.

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Hot Compliance Question

By Caitlin Egeck, JD, HR and Compliance Consultant
Cascade Employers Association
[email protected]

Question: My business is located in Eugene, but I frequently have minimum wage employees who travel to and through Portland on business. I’ve heard that there is a Portland Urban Growth Boundary minimum wage that is higher than Oregon’s minimum wage. Is the Portland Urban Growth Boundary minimum wage applicable to these employees?

Answer: This depends. If an employee performs more than 50 percent of their work at your company’s permanent business location during a pay period, then that employee’s minimum wage rate would be the applicable rate for the region where your business is located. In this case, you would pay the State’s minimum wage and not the Portland Urban Growth Boundarys minimum wage. Additionally, if you have an employee who makes deliveries as part of their job and that employee starts and ends their day at your company’s permanent business location, you would pay the employee the minimum wage rate that is applicable to where your business is located.

Conversely, if an employee does not perform more than 50 percent of their work in a pay period at your company’s permanent location, the region where the employee performs work is considered to be your company’s location when determining the applicable minimum wage rate to pay that employee. Moreover, if an employee works in more than one minimum wage region during a pay period, such as Lane County and the Portland Urban Growth Boundary, you must pay that employee either the applicable minimum wage rates for each hour worked in each region worked or you must pay the highest applicable minimum wage rate for all of the hours that employee worked during that pay period.

Below is Oregon’s Tiered Minimum Wage Schedule and a link to the Portland Urban Growth Boundary Lookup Tool:

Effective Date
State Base Rate
Portland Urban
Growth Boundary
Nonurban Counties
July 1, 2017 - June 30, 2018
$10.25
$11.25
$10.00
July 1, 2018 - June 30, 2019
$10.75
$12.00
$10.50
July 1, 2019 - June 30, 2020
$11.25
$12.50
$11.00
July 1, 2020 - June 30, 2021
$12.00
$13.25
$11.50
July 1, 2021 - June 30, 2022
$12.75
$14.00
$12.00
July 1, 2022 - June 30, 2023
$13.50
$14.75
$12.50

Nonurban Counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.

Portland Urban Growth Boundary Lookup Tool.

If you have questions regarding the different minimum wage rates, please contact us.

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HR Stats You Should Know

By Jenna Reed, Vice President, HR Services and General Counsel
Cascade Employers Association
[email protected]

3,500. That’s the number of audits the OFCCP plans to conduct in 2019. For comparison purposes, less than 1,000 audits were conducted in 2018.

Whether or not that number comes to fruition remains to be seen, considering the OFCCP is reducing its staff. However, now is the time to prepare just in case your company is selected for an audit.

If you have questions regarding affirmative action or would like to speak to our compliance team, please contact us.

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OFCCP Posts Corporate Scheduling Announcement List – Is Your Company On It?

By Jenna Reed, Vice President, HR Services and General Counsel
Cascade Employers Association
[email protected]

Last month we let you know that the OFCCP was going to post its Corporate Scheduling Announcement List (CSAL) only on its website. At the end of March, the list was published in the OFCCP’s FOIA Library.

As a reminder, the CSAL provides advance notice of a compliance review allowing your team time to prepare. The posting on the OFCCP’s FOIA Library website replaces individual contractor notifications. Accordingly, if you are a covered federal contractor or subcontractor now is the time to see if your company is on the list. Scheduling letters initiating audits will be sent 45 days from publication of the CSAL list.

The CSAL is now starting to include Section 503 Focused Reviews (as outlined in OFCCP’s Focused Review Directive DIR 2018-04) and compliance checks (as outlined in OFCCP’s Affirmative Action Program Verification Initiative Directive DIR 2018-07).

If you have questions regarding affirmative action or would like to speak to our compliance team, please contact us.

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DOL Publishes Proposed Regulations to Increase Salary Threshold for FLSA Classification

By Caitlin Egeck, JD, HR and Compliance Consultant
Cascade Employers Association
[email protected]

On March 07, 2019, the Department of Labor announced a proposed update to FLSA’s salary threshold, which would ultimately increase the number of employees eligible for overtime. On March 22, the proposed regulations were published in the Federal Register.

Currently, under FLSA, employees with a salary below $455 per week ($23,660 per year) must be paid overtime for all hours worked over 40 in a workweek. Under this proposed update, the salary threshold for overtime would increase to below $679 per week ($35,308 per year).

To recap, the Fair Labor Standards Act (FLSA) sets out rules that determine when employees are exempt from the minimum wage and overtime pay requirements. To qualify as exempt, an employee’s primary job duties must fall under the executive, administrative, or professional categories set out by the FLSA and the employee must meet a specific salary threshold as identified above. The proposal would only change the salary threshold and would not change the current job duties requirements under FLSA.

It is important to note that these proposed regulations will be open for comments until May 22, 2019. If approved, the new salary threshold requirement would take effect in January 2020.

Cascade will continue to stay on top of this proposal and we will alert you on any updates. If you have any questions, please let us know!

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