SENATE CONFIRMS HILDA SOLIS AS SECRETARY OF LABOR

by Fred Satterwhite, Senior Consultant, DCI Consulting Group, Inc.

The Senate confirmed Congresswoman Hilda L. Solis (D-CA) as President Obama's Secretary of Labor with an 80-17 vote this afternoon.

Questions from Republican lawmakers regarding Solis' support for the Employee Free Choice Act and the Paycheck Fairness Act and tax liens filed against her husband's business had delayed her confirmation for over a month. Due to the extended delay, President Obama appointed Labor Department official Edward C. Hugler to serve as acting secretary on February 2.

The Senate Health, Education, Labor and Pensions Committee approved Solis' nomination earlier this month, but the stage for a final confirmation vote was not set until this morning, when Democratic and Republican lawmakers reached an agreement that the GOP would not filibuster her nomination on the Senate floor.

PRESIDENT OBAMA SIGNS EXECUTIVE ORDERS REVERSING BUSH LABOR POLICIES

On January 30, 2009, President Obama signed three executive orders that will reverse former President George W. Bush’s labor policies. Under the new executive order “Notification of Employee Rights Under Federal Labor Laws” (E.O. 13496, to be published in the Federal Register on February 4, 2009), federal contractors will be required to post a new notice of workers’ rights with content determined by the Secretary of Labor under rulemaking to be initiated within 120 days of the effective date of the order. In addition, the new order repeals the executive order signed by former President George W. Bush (E.O. 13201 dated February 17, 2001), which required government contracts and subcontracts to include an employee notice clause (Beck Poster) requiring non-exempt federal contractors and subcontractors to post notices informing their employees that they have certain rights related to union membership and use of union dues and fees under federal law. Section 13 of the new order states that the “heads of executive departments and agencies shall, to the extent permitted by law, revoke expeditiously any orders, rules, regulations, guidelines, or policies implementing or enforcing Executive Order 13201. President Obama also signed two other executive orders requiring successor federal contractors, and their subcontractors, to offer jobs to current workers when contractors change, and making unallowable certain costs associated with activities undertaken to influence workers deciding whether to unionize and engage in collective bargaining.

PRESIDENT OBAMA SIGNS THE LILLY LEDBETTER FAIR PAY ACT OF 2009 INTO LAW

President Obama signed the long anticipated Lilly Ledbetter Fair Pay Act of 2009 into law on January 29, 2009 at a White House signing ceremony. Later that day Acting EEOC Chairman Stuart Ishimaru released a statement congratulating Congress and President Obama on the final passage and enactment of the new law.

DHS ANNOUNCES MAY 21, 2009 AS DATE FOR FEDERAL CONTRACTORS TO START E-VERIFY

DHS has posted a notice on their website stating that federal contractors and subcontractors will be required to begin using the E-Verify system starting May 21, 2009 to verify their employees’ eligibility to legally work in the U.S. A notice of the change was published in the Federal Register on January 30, 2009 (74 FR 5621) that explains the delay is to permit the new Administration an adequate opportunity to review the rule.

OFCCP RELEASES FISCAL YEAR 2008 ENFORCEMENT STATISTICS

On December 30, 2008 OFCCP reported that in fiscal year 2008, the agency won a record $67,510,982 in back pay, salary and benefits for 24,508 U.S. workers who had been subjected to unlawful employment discrimination. Charles James, then deputy assistant secretary, pointed to the agency’s focus on systemic discrimination as the most significant for the mission of the agency. One of the key highlights of OFCCP’s news release is that 99 percent of the dollars were collected in systemic discrimination cases. In a related development, on January 12, 2009, OFCCP posted their FY 2008 accomplishments, which highlighted the importance of the agency’s Active Case Management System to their enforcement efforts.

OFCCP POSTS FAQS ON THE ADA AMENDMENTS ACT OF 2008

In addition to its release of FY 08 enforcement statistics, OFCCP also posted a new FAQ section on the ADA Amendments Act of 2008 (ADAAA) on its website. OFCCP stated in one of the FAQs that conforming amendments will be made to OFCCP’s Section 503 regulations at 41 CFR 60-741 after the EEOC issues final ADAAA regulations.

DOL WAGE & HOUR DIVISION RELEASES FY 08 ENFORCEMENT RESULTS

The Department of Labor Wage and Division has announced that it recouped back wages totaling $185, 287,827 for 228,645 workers in FY 2008.

DOL OFFICE OF DISABILITY EMPLOYMENT POLICY RELEASES BUSINESS CASE RESEARCH

The U.S. Department of Labor’s Office of Disability Employment Policy (ODEP) has released business case information – The Survey of Employer Perspectives on the Employment of People With Disabilities and ODEP’s revised Business Case for Hiring People with Disabilities. More information is available here.

SUPREME COURT TO HEAR REVERSE DISCRIMINATION CASE BASED ON EMPLOYMENT TESTS

On January 9, 2009, the U.S. Supreme Court agreed to hear a lawsuit brought by 17 white and one Hispanic firefighters challenging their employer’s refusal to certify the results of promotional examinations for lieutenant and captain positions because too few racial minorities would be promoted (Ricci v. DeStefano, U.S., No. 07-1428, cert. granted 1/9/09). The case originated when the city of New Haven, Connecticut administered separate exams in 2003 for promotion to lieutenant and captain. The exams resulted in disparate impact on racial minorities, and the city refused to certify the results. A federal district court dismissed the firefighters’ lawsuit challenging the city’s refusal.

OFCCP ANNOUNCES FIRST G-FIVE RECIPIENTS

On January 12, 2009, OFCCP announced the five federal contractor establishments selected for the 2008 G-FIVE Program (Good Faith Initiative for Veterans Employment). All of the recipients demonstrated “best practices” for the employment and advancement of veterans. They will be excluded from an OFCCP compliance evaluation for three years. The recipients are:

• Computing Technologies, Inc., Fairfax, Virginia


• Wakenhut Services Inc., Savannah River Site, Aiken, South Carolina


• Engineering Systems Solutions, Frederick, Maryland


• Alaska Airlines, Seattle, Washington


• Hawaiian Electric Co., Honolulu, Hawaii

LAB TO PAY OVER $2 MILLION IN OVERTIME BACK WAGES

The Department of Labor announced on January 9, 2009 that Sandia Corporation, doing business as Sandia National Laboratory in Albuquerque, has agreed to pay over $2 million in overtime back wages to 2,657 research employees after a DOL investigation found violations of the Fair Labor Standards Act.

NEW BILL WOULD INCREASE PENALTIES FOR HIRING UNDOCUMENTED WORKERS INCLUDING MORE JAIL TIME FOR VIOLATORS

On January 6, 2009, Rep. David Dreier (R-CA) introduced the “Illegal Immigration Enforcement and Social Security Protection Act of 2009,’’ which would increase penalties for employers that hire undocumented workers. Employers that knowingly hire undocumented workers or fail to verify their employment eligibility would face fines up to $50,000 and jail sentences up to five years per occurrence. The bill would also require Social Security cards to have a digitized photo and an electronic signature strip to be used by employers to instantaneously verify a prospective employee’s eligibility to work in the United States.