UPDATE: MINIMUM WAGE BILL SENT TO GOVERNOR TAFT
Late last week, the Ohio Senate passed HB 690, which clarifies the onerous recordkeeping requirements and privacy concerns of the new Minimum Wage Amendment to the Ohio Constitution. As we summarized in our most recent update, under HB 690, employers are not required to keep the “hours worked for each day worked” for executive, administrative and professional employees and outside salespeople. HB 690 also establishes a process that employees and their third party representatives must follow when requesting employee payroll information. Under HB 690, the payroll information that must be disclosed is limited to the name, address, occupation, pay rate, hours worked for each day worked, and each amount paid for the specific employee who has requested that specific employee's own information and does not include the name, address, occupation, pay rate, etc. of any other employee of the employer. HB 690 also allows an employer to require that an employee provide a written and notarized request for such information.
Governor Taft is expected to sign HB 690 into law before his term expires at midnight on January 7, 2007. The new law will become effective 90 days after his signature. Keep in mind though, that the effective date of the new Minimum Wage Amendment raising the minimum wage is still January 1, 2007. While the provisions of HB 690 will not become law until approximately three months later, we recommend that, starting January 1st, you follow the provisions set forth under HB 690. While there will surely be legal challenges to HB 690, the General Assembly has constitutional authority to clarify ambiguous provisions of the new amendment and the Ohio Constitution grants broad authority to the legislature to regulate the employment sector. Because HB 690 clarifies the Minimum Wage Amendment, courts are expected to follow its provisions in interpreting the new amendment should litigation arise prior to HB 690’s effective date.
We will provide you with an update on any HB 690 developments. In the meantime, please call if you have any questions.