Drug testing

Ohio Recreational Marijuana Law | Pre-Hire Drug Testing Considerations and Options

With passage of Ohio’s recreational marijuana law and the increased acceptance of marijuana use in the general population, many employers that historically have conducted drug tests as a part of their pre-hire screening processes are finding themselves in a difficult position. The choice they face is between either maintaining their “zero tolerance” policy on marijuana, or eliminating or modifying their pre-hire marijuana screen testing to  expand their increasingly limited pool of qualified job candidates for hard to attract and retain positions.

Some employers participating in certain government programs (.e.g., An Ohio BWC Drug Free Safety Program) or certain positions (e.g., positions requiring a Commercial Driver License-CDL) are required to include marijuana at specific test threshold cutoff levels in their drug testing panel. If an employer is not otherwise required to include marijuana in their drug testing panels, they may establish drug testing panels at their own discretion, as long as they are otherwise in compliance with non-discrimination laws and regulations.

The primary reason employers typically conduct drug tests in the pre-hire process, if not otherwise required, are for safety-related reasons. However, other considerations such as attendance or performance- related concerns may also factor into such decisions. For the purposes of the analysis and guidance provided in this article, our focus will be on safety reasons.

Although it has been clearly established for a very long time that workers under the influence of drugs or alcohol pose a significantly higher risk of accidents and injuries, the actual impact of pre-hire drug testing for marijuana and the impact on workplace safety, if any, is much less clear.

In regard to safety, it would be reasonable to accept that a recreational user of marijuana would not pose any more of a safety risk as a recreational user of alcohol, as long as neither report to work under the influence of either substance. It would be extremely rare, very difficult to enforce, and greatly limiting to an employer’s candidate pool if they established a policy that prohibited employment of any recreational users of alcohol. Since employer processes to screen out recreational users of alcohol are virtually non-existent, why do  employers who are not otherwise required to do so continue to conduct pre-hire drug tests to screen out marijuana users?  If doing so is primarily for safety-related reasons, does pre-hire testing actually have any material impact on the reduction of workplace accidents and injuries? Surprisingly, there is very little research on answering this question and the limited research is somewhat inconclusive.

A Canadian study conducted from 2018 – 2020 was comprised of 2475 workers, consisting of three reporting groups on their marijuana use (“no past-year use”, “non-workplace use”, “workplace use”).  The results of this study were that there was no reported difference in workplace injury history between the “no past-year use” and “non-workplace use” groups. Unsurprisingly, there was a two-fold increase in reported injury history of the “workplace use group”. Canadian Study on Workplace Injuries for Cannabis Users and Non-Users

On the other hand, there are numerous studies that indicate that states that have legalized recreational marijuana use have experienced an increase in work-related injuries, including a study posted in the Journal of the American Medical Association in December 2023. This study reported that states that legalized marijuana (for recreational use) have experienced almost a 13% increase in workplace injuries, although this study does not make any distinction on the impact of companies that do and do not conduct pre-hire drug screens for marijuana.  JAMA Study on the Impact of State Recreational Marijuana Laws and Workplace Injuries

In summary, with Ohio’s legalization of recreational marijuana, there will likely be an increase of work-related accidents and injuries exceeding 10% of pre-legalization incident levels.  Establishing appropriate protocols around employee and supervisor education and training can assist in mitigating this risk.

Anecdotal evidence suggests the vast majority of active recreational marijuana users do not consume cannabis prior to or during working hours.   By conducting pre-hire marijuana testing, an employer may discourage an occasional irresponsible marijuana user from pursuing a position with their company, which may result in a very marginal reduction of work-related injuries, but doing so will be at the expense of eliminating the vast majority of responsible users from their candidate pool.  If you would and could somehow exclude all users of alcohol, it would also likely have a similar marginal impact on a reduction of work-related injuries, but at the exclusion of the vast majority of responsible users of alcohol and a very significant portion of your candidate pool.

So, what options do employers have that currently conduct pre-hire drug screen tests for marijuana but continue to struggle attracting and retaining employees in hard to find and retain positions?

Option 1) No Changes to Drug Testing Protocols – Continue to expand sourcing efforts to expand your available candidate pool, along with increasing the focus on retaining current employees.  Note: Regardless of any changes in drug testing protocols, these same candidate sourcing and employee retention efforts would apply to most employers.

Option 2) Eliminate Pre-hire Marijuana Drug Screen Testing with Increased Substance Abuse Awareness Training – Employers not required to conduct drug screening tests as specified above may eliminate pre-hire marijuana testing, but should also:

  1. Increase their focus on employee and supervisor substance abuse awareness training;
  2. Continue with reasonable suspicion and post-accident drug testing for marijuana.

Option 3) Modify Pre-hire Marijuana Drug Screen Testing Thresholds with Increased Substance Abuse Awareness Training – Employers not required to conduct drug screening tests as specified above (i.e., testing with a mandatory defined threshold), have the flexibility to consult with their drug test providers to alter the drug screening thresholds on both the screening cutoff and confirmation cutoff levels. Increasing these threshold cutoff levels will decrease the likelihood of having “positive” test results for periodic and light marijuana users, but likely will still identify very active and heavy marijuana users.  Note: There are still no viable drug screening tests to confirm if a user is currently “under the influence” of marijuana. Utilization of this approach should still be accompanied by an increased focus on employee and supervisor substance abuse awareness training, with a continuation of reasonable suspicion and post-accident drug testing for marijuana.

Threshold Level Description Drug Screen cutoff Confirmation cutoff
Standard Threshold Levels                   (Government Recommended) Marijuana metabolites 50 ng/mL 15 ng/mL
Expanded Threshold Cutoff Levels1                                 (More likely to only identify very active and heavy marijuana users) Marijuana metabolites 150 ng/mL          (Example Only) 45 ng/mL            (Example Only)

1 These expanded threshold cutoff levels are for example purposes only and actual change to the cutoff levels should only be made after consultation with your drug test provider and legal counsel.

Note: Prior to making any changes to your substance abuse policy or drug testing protocols, employers should consult with their legal counsel to ensure any changes would be in compliance with any federal or state regulations.

The Aliniti HR Blog – Ohio Recreational Marijuana Law – Pre-Hire Drug Testing Considerations and Options is intended as an employer reference guide only and not intended to serve as legal advice; therefore any legal questions should be directed to legal counsel.

It’s Finalized, The Department of Labor’s New Salary Rate Exemption.

As was expected, the Department of Labor (DOL) finalized its new rule increasing the “white collar” exemption salary-rate threshold on April 26, 2024.  This new salary threshold is currently scheduled to be phased in with the first threshold increase to $844 per week ($43,888 annually) on July 1, 2024, and then to $1128 per week ($58,656 annually) on January 1, 2025.  Future increases are already planned to automatically update the salary rate threshold every three years, based on the available wage data in those future years.

As previously communicated, the new rule does not propose any changes to the current standard duties test for the administrative, executive, and professional exemptions.  Although no changes are proposed to these “white-collar” duties’ tests, the heightened awareness stemming from issuance of a new rule will put a significant focus on salary exemption classifications, especially for those employee positions currently below or even slightly above the new thresholds.

Although the both the salary amount thresholds and respective phase in dates may still be subject to legal challenges, as of the date of this blog, these changes are still planned to take effect on July 1, 2024, and January 1, 2025.

What actions should you take at this time?

 

  1. As noted above, regardless of a position salary level, exempt classified employees also need to satisfy certain duties requirements tests. Thus, it is strongly recommended that employers take this opportunity to scrutinize any positions currently below or around these new salary threshold amounts to ensure they meet the “white collar duties test” for administrative, executive, or professional exemption classification standards.  Aliniti can assist in this review process by utilizing our standardized Fair Labor Standards Act (FLSA) exemption classification work sheet to properly assess whether a positions duties likely do or do not meet these requirements.
  2. Establish a preliminary implementation and communication plan on what compensation actions you will take for potentially impacted positions. Potential actions for any positions currently below the new salary minimum threshold would either include:
  • Increasing an employee’s salary compensation to a newly required threshold level.
  • Reclassifying an employee currently classified as salary paid exempt to hourly paid non-exempt.

Aliniti can assist you with both the position review process and implementation of an action and communication plan.

Aliniti HR Blog – Department of Labor’s New Salary Rate Exemption Is Finalized is intended as an employer reference guide only and not intended to serve as legal advice, therefore any legal questions should be directed to legal counsel.

Salary Exemption

Department of Labor’s New Salary Rate Exemption Threshold Is Coming Soon, Probably….

On the heels of issuing a new rule on March 11, 2024, providing a stricter interpretation of classifying workers as Independent Contractors, the Department of Labor (DOL) is likely to issue its other new rule increasing the “white collar” Salary Rate Exemption threshold in the near future. This new rule has been “on the radar” of HR (People and Culture) Professionals and many business owners for almost 2 years.  Most assessments I have read believe this new rule will likely be finalized in April 2024.

What will the impact of this new DOL rule be?

The current Salary Rate Exemption threshold for exempt employees is $684 a week ($35,568 annualized) for the administrative, executive, and professional exemptions — collectively known as the “white-collar” exemptions. The DOL’s proposal, if finalized in its current form, would initially raise the salary rate threshold to $1,059 a week ($55,068 annualized). The impact would be that even if the employee’s role meets the “duties” test for one of the “white-collar” exemptions, but their earnings do not exceed the new threshold, they would still be eligible for overtime earnings (1.5x regular rate of pay) for any work hours exceeding 40 during a work week.  The proposed rule would also automatically update the salary rate threshold every three years, based on the available wage data in those future years.

What will this new DOL rule not impact?

The new rule does not propose any changes to the current standard duties test for the administrative, executive, and professional exemptions.  Although no changes are proposed to these “white-collar” duties tests, the heightened awareness stemming from  issuance of a new rule will likely shine a bright light on positions classified as salary exempt, especially those currently below or slightly above the new threshold.

If the new rule is finalized in April, when will it be effective?

Similarly to the legal challenges being mounted on  the recent changes in classification of Independent Contractors, the final rule increasing the “white-collar” exemption salary rate threshold will likely also face legal challenges. However,  employers cannot and should not count on these challenges being successful to ultimately halt the implementation of this new rule. Typically, when establishing a final new rule effective date, the actual DOL enforcement date of a new rule will usually be several months later.

What actions should I be prepared to take or take now?

As noted above, besides meeting the salary rate threshold test, exempt classified employees also need to satisfy certain duties requirements tests. Neither their job title nor job description alone determines whether an employee qualifies for a white-collar (or any other) exemption. This is a good opportunity to ensure they meet these standards as well.  The DOL’s announcement of a new rule will, if nothing else,  create an increased level of scrutiny by workers who would likely  be impacted by the new rule.  Regardless of the legal fate of a new ruling, employers should be proactive in their assessment of their worker classifications under both the prior and new DOL rules.

Thus, if not already doing so, employers should closely review their classification decisions on any Independent Contractor arrangements, along with any employees classified as exempt with a salary currently below or around the salary rate threshold of the proposed new rule.  In addition, employers should also  review and affirm their exemption classification decisions for certain employees above the new threshold, if there are any questions about the clarity of their role meeting one of the “white collar” exemption classification “duties” tests.

Aliniti HR Blog – The Department of Labor’s New Salary Exemption Threshold Is Coming Soon, Probably is intended as an employer reference guide only and not intended to serve as legal advice, therefore any legal questions should be directed to legal counsel.

Transforming HR practices in small- and medium-sized businesses through AI integration

In the rapidly evolving landscape of modern business, technology has become an essential catalyst for growth and efficiency. Among the transformative technologies, Artificial Intelligence (AI) stands out as a game-changer, revolutionizing various sectors, including Human Resources (HR). In this article we take a look at the profound impact of AI on HR practices in small and medium-sized businesses (SMBs), shedding light on the ways AI is reshaping recruitment, employee engagement and decision-making processes.

Recruitment reinvented

Recruiting the right talent is a cornerstone of success for any business. AI-powered tools are simplifying and streamlining this process for SMBs. Resume screening, historically a time-consuming task, can now be automated using AI algorithms that analyze CVs for relevant skills and experience. Tools like IBM Watson and Greenhouse are leading the way, allowing SMBs to quickly identify top candidates, thereby saving time and resources.

Additionally, AI-driven chatbots are transforming the way businesses interact with potential candidates. These chatbots can handle initial inquiries, schedule interviews and even conduct preliminary assessments, providing a seamless experience for candidates while freeing up HR personnel to focus on more strategic tasks.

Enhancing employee engagement

Maintaining a motivated and engaged workforce is crucial for SMBs to retain top talent and boost productivity. AI tools are providing innovative ways to achieve this goal. Employee sentiment analysis tools, such as Peakon and Glint, utilize natural language processing to analyze employee feedback and gauge overall satisfaction levels. By pinpointing areas of concern, SMBs can take proactive measures to address issues and enhance employee experience.

Furthermore, AI-powered personalization is becoming a norm in HR practices. Learning management systems equipped with AI algorithms recommend personalized training and development paths for employees based on their skills, preferences, and performance. This not only helps employees grow but also aligns their professional development with the company’s objectives.

Informed decision-making

Effective decision-making is at the heart of successful business operations. AI is stepping in to provide SMBs with data-driven insights for strategic HR decisions. Predictive analytics tools like Visier and Workday use historical data and AI algorithms to forecast future trends, helping SMBs anticipate workforce needs and plan accordingly. This proves invaluable when it comes to talent acquisition, retention and succession planning.

Moreover, AI is simplifying complex tasks such as performance reviews and compensation analysis. These processes can be automated, ensuring consistency and objectivity in evaluations. AI algorithms can analyze performance data to determine fair compensation, removing potential biases and ensuring a more equitable work environment.

Ethical considerations

While the benefits of AI in HR for SMBs are substantial, ethical considerations should not be overlooked. AI algorithms can inadvertently perpetuate biases present in historical data, leading to unfair practices. It’s crucial for SMBs to ensure that AI systems are trained on diverse and representative data to avoid reinforcing discriminatory patterns.

Conclusion

In the realm of HR practices, AI is a transformative force for small and medium-sized businesses. From redefining recruitment processes and enhancing employee engagement to providing data-driven insights for strategic decision-making, AI is reshaping the way SMBs manage their human capital. However, embracing AI should go hand in hand with ethical considerations, ensuring fairness and inclusivity.

As business leaders of SMBs, the time is ripe to explore the AI solutions that align with your company’s values and objectives. By leveraging AI’s capabilities, you can unlock new levels of efficiency, productivity and growth, propelling your business into a future where HR practices are more data-driven, personalized, and impactful than ever before.

People and Culture

5 Key Human Resource Priorities for Business Leaders in 2024

As the business landscape continues to evolve it is critical that Human Resource priorities play key part in an organization’s 2024 goals. While business leaders overseeing these Human Resource priorities have started to reframe focus traditional HR goals to a more People and Culture perpective they will need to focus on several key items to ensure that their companies are well-positioned for growth and success.  and yes, I too am suggesting you consider rebranding Human Resources as a defined function within your organization with a People and Culture (P&C) function.

In addition to making this shift in mindset on how significant the human resources people and culture function has on organizational success, below are five key suggested areas of focus on your people and culture in 2024.

Culture

A strong company culture can be a powerful driver of employee engagement, productivity, and innovation. Business leaders should work to create a culture that is aligned with the company’s values and mission. This includes promoting open communication, collaboration, and teamwork.

Employee Performance and Productivity

Optimizing employee performance and productivity is essential for driving business outcomes. Business leaders should implement strategies to attract, develop, and retain top talent. This includes creating a positive and engaging work environment, providing opportunities for training and development, and offering competitive compensation and benefits packages.

Employee Retention

In today’s competitive talent market, employee retention is more important than ever. Business leaders should develop strategies to identify and address the factors that contribute to employee turnover. This includes conducting exit interviews, gathering employee feedback, and making necessary changes to the company’s culture, policies, and practices.

Technology

Technology can play a vital role in improving efficiency, productivity, and decision-making. Business leaders should invest in technologies that can automate processes, provide data-driven insights, and improve employee engagement.

Employment Law Considerations

Staying up-to-date on ever-changing employment laws is crucial for business owners and executives. Failure to comply with these laws can result in costly fines, lawsuits, and damage to the company’s reputation. Business leaders should work closely with P&C experts and/or legal counsel to stay informed about new laws and regulations and ensure that the company’s policies and practices are compliant.

What next?

  • Conduct a comprehensive P&C audit to identify areas for improvement.
  • Develop a strategic P&C plan that aligns with the company’s overall business goals.
  • Invest in training and development for all employees.
  • Create a culture of open communication and feedback.
  • Leverage technology to automate P&C processes and gain insights.

By focusing on these key P&C priorities, business leaders can reap several benefits, including:

  • Enhanced company culture
  • Increased employee performance and productivity
  • Reduced employee turnover
  • Increased efficiency and productivity
  • Improved decision-making
  • Improved compliance with employment laws

In addition to the above, business leaders should also consider the following trends that are likely to shape the P&C landscape in 2024:

  • The rise of the hybrid workplace
  • The increasing importance of mental health
  • The need for a more personalized employee experience
  • The growing use of artificial intelligence (AI) in P&C functions

By staying ahead of these trends, business leaders can help their companies adapt to the changing world of work and continue to thrive.

 

About the Author

Steve Marklay | SENIOR HR ADVISOR

Steve has been a Senior HR Advisor with ALINITI for 7 years. He brings a wealth of Human Resource knowledge to support the clients he partners with. His industry experience is vast and spans over 30 years, ranging from Manufacturing to Financial Services, and Retail to Building Services. Whatever your HR pain point may be Steve will have the solution.

Key Labor Laws

Key Labor Laws or Regulations Implemented or Proposed In 2023

There have been a number of federal labor laws and regulations that have either been implemented or proposed during 2023 that have or could impact business operations. Some of these changes are significant, while others are more minor. However, it is important for business owners to be aware of all of these changes so that they can comply with the law and avoid costly penalties or enforcement actions by Federal agencies. Below is a summary of some of these key labor laws or regulations implemented or proposed in 2023.

The Pregnant Workers Fairness Act (PWFA) and Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act)

The Pregnant Workers Fairness Act (PWFA) took effect on June 27, 2023. The PWFA requires most employers to provide reasonable accommodations to pregnant employees. The PWFA also prohibits employers from retaliating against employees who request or use accommodations.  Although many pregnant employees already had numerous protections under the Pregnancy Discrimination Act (PDA) of 1978, the PWFA expands both the number of employees covered and the types of protections under the act.

The Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act) went into effect on December 29, 2022.  The PUMP Act provided expanded protections for nursing mothers in regard to break times and privacy of location.

Non-Compete Agreements (Proposed)

The Federal Trade Commission (FTC) has proposed a rule that would ban all non-compete agreements in employment contracts. The proposed rule applies to both employees and independent contractors in all industries. The FTC is currently accepting public comments on the proposed rule, and the final rule is expected to be issued in late 2023 or early 2024.  Business Owners should begin to assess how this change could impact their operations in the future and what, if any, actions they may take to protect their business interest without having enforceable non-compete agreements in place.

Salary Basis Threshold Minimum Increase Rule (Proposed)

On August 30, 2023, the U.S. Department of Labor (DOL) announced a notice of proposed rulemaking to increase the salaried basis threshold for the “white collar” exemptions under the Fair Labor Standards Act (FLSA). Currently, the salary threshold to be considered a white-collar exempt employee is $684/week, which is equivalent to $35,568 annually.

Note: the salary minimum is only part of analysis to meet an exemption, in order to be properly deemed exempt, employees must also satisfy a “duties test” under the FLSA.

The new proposal from the DOL would increase the minimum weekly salary amount to $1,059, which is the equivalent of $55,068 annually. Also, as part of its proposal, the DOL also seeks to have these amounts increase automatically every three years, based on available wage data. The intent with the automatic updates is accurately reflecting changing economic conditions going forward.

Although this proposed rule has not yet been implemented, business owners should begin to assess what positions could be impacted by these proposed changes and their options on how they may make any required adjustments to comply with these changes.

National Labor Relations Board Changes (Proposed)

The National Labor Relations Board (NLRB) has proposed a number of changes to its rules and regulations that could have a significant impact on business operations. Some of the proposed changes include:

  • Joint-employer standard: The NLRB is proposing to expand the definition of joint employer, which could make more businesses responsible for the labor practices of their contractors and subcontractors.
  • Union recognition: The NLRB is proposing to make it easier for unions to be recognized without an election.
  • Unfair labor practices: The NLRB is proposing to expand the scope of unfair labor practices, which could make it more difficult for businesses to resist unionization efforts.

If these changes are finalized, they could have a significant impact on business operations. For example, businesses may need to be more careful about who they contract with and how they manage their relationships with their contractors and subcontractors. Businesses may also need to be more cautious about their labor practices, as they could be held responsible for the unfair labor practices of their contractors and subcontractors if they are deemed joint employers.

In preparation of these changes, here are some specific recommendations to take at this time:

  • Review your contracts with contractors and subcontractors to ensure that they protect your business from liability for the labor practices of your joint employers.
  • Develop a policy and plan on unionization and train your managers and supervisors on permissible and impermissible actions that they may take involving unionization.

State and Local Labor Laws

Federal labor laws are the minimum standard, whereas state and local laws may frequently surpass federal requirements and impose higher obligations on an employer.  State and local laws frequently exceed federal laws in areas of illegal discrimination, minimum wage, paid leave time, break periods and pay transparency.

Conclusion

In addition to the specific recommendations above, business owners should also be aware of the general trend towards increasing regulation of the workplace. The federal government and state governments are becoming more proactive in enforcing labor laws and regulations, and businesses should be prepared to comply with these new laws and regulations.

The Aliniti HR Blog – Key Labor Law Regulations Implemented or Proposed In 2023 is intended as an employer reference guide only and not intended to serve as legal advice, therefore any legal questions should be directed to legal counsel.

Family First Act Summary Overview (03/20/20)

As you are likely aware, President Trump signed the “Families First Coronavirus Response Act” (H.R. 6201) on March 18th.  Under the Act as passed, employers’ obligations begin fifteen days after enactment, on April 2, 2020 and expire on December 31, 2020. Covered Employers will be required to post a notice informing employees of their sick leave rights; a model notice will be provided by the Department of Labor.   In addition, covered employers will be provided tax credits for Emergency Paid Leave and Emergency Paid Family Medical Leave.  A summary of key points of this act is below.  Attached is a more comprehensive overview from Taft Law.

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Ohio Workers Compensation (BWC) Related Updates (05/30/20)

The below information are some key updates and information related to COVID19 recently established or communicated by the Ohio Bureau of Workers Compensation Commission (BWC) that should be relevant and helpful in your decisions to navigate back toward normal business operations in the hopefully not too distant future.

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CARES Act Overview (04/03/20)

In our attempt to “break through the noise” below is the most current information and information links regarding what you need to know and actions you should take to best navigate through the coronavirus issues impacting your business.

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The Bermuda Triangle of Labor Laws (ADA-FMLA-Workers Compensation)

The Bermuda Triangle is an area in the Atlantic Ocean in which an unusually high number of ships and planes have disappeared. Because the interplay of three major employment laws — the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA) and Workers’ Compensation – is so complicated and fraught with problems, many HR professionals often refer to these three laws as the Bermuda Triangle of Employment Law. Each of these laws/regulations covers employee leave in some way and, often, two or all three may apply to the same situation. If employers aren’t careful, they may find themselves getting “shipwrecked” or “sunk” with some stiff penalties and legal consequences.

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