1. www.duanemorris.com ©2016 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP. Duane Morris – Firm Offices | New York | London | Singapore | Philadelphia | Chicago | Washington, D.C. | San Francisco | Silicon Valley | San Diego | Shanghai | Boston | Houston | Los Angeles | Hanoi | Ho Chi Minh City | Atlanta | Baltimore | Wilmington | Miami | Boca Raton | Pittsburgh | Newark | Las Vegas | Cherry Hill | Lake Tahoe | Myanmar | Oman | Duane Morris – Affiliate Offices | Mexico City | Sri Lanka | Duane Morris LLP – A Delaware limited liability partnership Legislative and Regulatory Trends, Proposals and HR Grassroots Advocacy* prepared for 2016 Legislative Advocacy & HR Practice Conference presented by Jonathan A. Segal, Esq. *No statements made in this seminar or in the PowerPoint or other materials should be construed as legal advice or as pertaining to specific factual situations. Further, participation in this seminar or any question and answer (during or after the seminar) does not establish an attorney-client relationship between Duane Morris LLP and any participant (or his or her employer). DM2/6642559.1

2. www.duanemorris.com I.FEDERAL AND STATE INITIATIVES

3. www.duanemorris.com DOL Proposed Changes To Overtime Rules Final Rules Expected in July 2016 (effective 60 days later) Minimum salary will go up substantially –Only question is how high –Likely to be at least approximately $50,000 per year Likely there will be automatic escalator to minimum salary—could be linked to: –CPI –40 th percentile 2

4. www.duanemorris.com DOL Proposed Changes To Overtime Rules Very possible/likely: –Concurrent duties test relevant to executive exemption will be eliminated (target: retail and hospitality) –There will be change to primary duty test from qualitative to quantitative (California-like approach) Challenge under the Administrative Procedures Act also highly likely if changes noted above are made Careful: self-evaluation, discovery and attorney- client privilege 3

5. www.duanemorris.com DOL Final Persuader Rule Effective contracts entered into and fees received on or after July 1, 2016 General rule: persuaders and employers who use them are required to file forms with the DOL including fact of persuasion and amount paid by employer to persuader Existing advice exemption—applies to lawyers (& consultants) who give advice to employers but do not talk directly with “employees” 4

6. www.duanemorris.com DOL Final Persuader Rule Change to rule: guts advice exempt Examples of indirect persuasion requiring reports by persuader and employer: –Plan, direct, or coordinate activities undertaken by supervisors or other employer representatives, including meetings and interactions with employees; –Train supervisors or other employer representatives how to influence or persuade employees in meetings or other communications; 5

7. www.duanemorris.com DOL Final Persuader Rule Change to rule: guts advice exempt Examples of indirect persuasion requiring reports by persuader and employer (continued): –Provide material or communications to the employer, in oral, written, or electronic form, for dissemination or distribution to employees; and –Develop or implement personnel policies, practices, or actions for the employer 6

8. www.duanemorris.com DOL Final Persuader Rule Important: persuader rule as drafted would apply not only to advice on union avoidance but also to advice in collective bargaining on how to communicate with employees Ripe for attack –Assault on attorney-client privilege –Violation of 1 st & 5 th Amendments –Inconsistent with Labor Management and Reporting Disclosure Act (“LMRDA”) 7

9. www.duanemorris.com EEOC Proposed Changes to EEO-1 Covered employers: private employers with at least 100 employees; federal contractors with at least 50 employees and $50,000 or more in contracts Currently: EEO-1 survey asks employers to provide counts of employees based on the following categories: sex, race, and ethnicity relative to job category for each establishment 8

10. www.duanemorris.com EEOC Proposed Changes to EEO-1 Proposed revisions to the EEO-1 form intended to take effect beginning with the September 2017 report (proposals still in public comment phase and not final) –In summary, proposal adds earnings and hours of work to the existing EEO-1 survey –Employers must submit summary pay data for each category by sex, race and ethnicity 9

11. www.duanemorris.com EEOC Proposed Changes to EEO-1 EEOC proposes –Using particular statistical tests to examine the data for disparities –Comparing results from a company or establishment to those for other companies in the same industry/geographical area Same caution re: self-evaluation, discovery and attorney-client privilege 10

12. www.duanemorris.com Examples of Existing Illinois State Laws & Practical HR Implications Ban the Box—application issues Pregnancy Accommodations—policy issues LGBT protection—policy issue re: multiple state issue 11

13. www.duanemorris.com Proposed Bills In Illinois Amendment to Firearms Concealed Carry Act (allow employers to prohibit firearms in vehicles on their parking lots) Amend the Minimum Wage Law to provide that minimum salary for exemption: $69,000 Amend Workers Compensation Laws to provide no employer shall be required to pay temporary partial disability to employee who has been discharged for “cause.” 12

14. www.duanemorris.com II.10 RECOMMENDATIONS

15. www.duanemorris.com 10 Recommendations 1. Follow legislation –Track individual bills –Be mindful of developments in other jurisdictions 14

16. www.duanemorris.com 10 Recommendations 2. Evaluate bills—think critically –Consider short-term and long-term impact –Focus on the interests not only of employers but also employees—unintended but foreseeable adverse consequences of legislative action with laudable motivation (for example, minimum wage increase) 15

17. www.duanemorris.com 10 Recommendations 3. Know your Senators and Representatives –Visit them –Invite them to meet with you and others –Develop relationships with their staffers, too –Consider it a business meeting (e.g., leave your card) 16

18. www.duanemorris.com 10 Recommendations 4. Build positive relationships –Make public policy a two-way street –Offer yourself, and your company, as a valuable resource for knowledge in your field 17

19. www.duanemorris.com 10 Recommendations 5. Get others involved –Internal (e.g., CEO) –External (e.g., trade association) 18

20. www.duanemorris.com 10 Recommendations 6. Legal considerations: discoverability of communications 19

21. www.duanemorris.com 10 Recommendations 7. Personal considerations: check with your employer before taking public position 20

22. www.duanemorris.com 10 Recommendations 8. HR considerations: assume your workforce will find out what you say and make sure what you have said is defensible in terms of content and tone 21

23. www.duanemorris.com 10 Recommendations 9. Be practical –Pick your battles—may be political reasons not to oppose a bill –Do not give a bill that is going nowhere publicity so that it may end up going somewhere –Encouraged not to take positions contrary to SHRM’s positions 22

24. www.duanemorris.com 10 Recommendations 10. Meeting with your representative –No assumptions  Position  Knowledge of bill –Do not attack –Explain bill –Explain your position –Be clear on your ask –Don’t ask for impossible 23

25. www.duanemorris.com III.WHAT WERE THEY THINKING?

26. www.duanemorris.com What Were They Thinking? Los Angeles –Toads may not be licked 25

27. www.duanemorris.com What Were They Thinking? New York –New Yorkers cannot dissolve a marriage for irreconcilable differences unless they agree to it. 26

28. www.duanemorris.com What Were They Thinking? West Virginia –Road kill may be taken home for supper. 27

29. www.duanemorris.com What Were They Thinking? California –Dogs may dine for dinner in restaurants on outdoor patio 28

30. www.duanemorris.com What Were They Thinking? Georgia –Donkeys may not be kept in bath tubs 29

31. www.duanemorris.com What Were They Thinking? Oklahoma –It is illegal to have a sleeping donkey in your bathtub after 7 pm. 30

32. www.duanemorris.com ©2016 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP. Duane Morris – Firm Offices | New York | London | Singapore | Philadelphia | Chicago | Washington, D.C. | San Francisco | Silicon Valley | San Diego | Shanghai | Boston | Houston | Los Angeles | Hanoi | Ho Chi Minh City | Atlanta | Baltimore | Wilmington | Miami | Boca Raton | Pittsburgh | Newark | Las Vegas | Cherry Hill | Lake Tahoe | Myanmar | Oman | Duane Morris – Affiliate Offices | Mexico City | Sri Lanka | Duane Morris LLP – A Delaware limited liability partnership Thank You! Follow me on Twitter @Jonathan__HR__Law

33. www.duanemorris.com SPEAKER CONTACT INFORMATION Jonathan A. Segal Partner and Managing Principal, Duane Morris Institute Duane Morris LLP 30 South 17th Street Philadelphia, PA 19103-4196 Phone: +1 215 979 1869; Fax: +1 215 405 2628 Follow me on Twitter @Jonathan__HR__Law Email: jsegal@duanemorris.com