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Ohio Enacts Substantial Changes to Employment Discrimination Laws

Client Alert

In January, Governor Mike DeWine signed into law the Employment Law Uniformity Act, amending the employment protections in the Ohio Civil Rights Act in several significant ways. Such changes to the state’s anti-discrimination and anti-harassment laws have been considered and debated for years and finally made their way into Ohio law.

What has changed for employment claims under the amended Ohio Civil Rights Act?

  • Statute of Limitations: The statute of limitations for employment discrimination claims has been reduced from 6 to 2 years, bringing Ohio in line with federal law.
  • Administrative Remedies: Prior to filing suit in court alleging employment discrimination, individuals must first exhaust administrative remedies by filing a charge with the Ohio Civil Rights Commission and obtaining a right-to-sue-letter. Filing a charge tolls the statute of limitations during pendency and for 60 days after closure of the charge. The deadline to file a charge has been expanded from 180 days to 2 years after the alleged discrimination.
  • Supervisor Liability: Personal liability for supervisors, managers, and coworkers for discrimination or harassment has been eliminated except in limited circumstances. This brings state law more in line with federal and will likely curtail a very common practice by plaintiffs' attorneys in Ohio of suing supervisors in their individual capacity.
  • Sexual Harassment Defense: The employer’s affirmative defense for sexual harassment claims has been codified and mirrors the Faragher/Ellerth affirmative defense established by the U.S. Supreme Court and already recognized by Ohio courts. An employer may assert an affirmative defense against hostile work environment sexual harassment claims if it had anti-harassment policies and complaint procedures in place, and the employee unreasonably failed to take advantage of them. This defense is not available if the harassment was committed by a supervisor and also resulted in a tangible employment action such as firing, demotion, etc.
  • Age Discrimination: The Employment Law Uniformity Act has also simplified the tangled web of age discrimination claims that existed in Ohio, which had varying statutes of limitations, administrative exhaustion requirements, and remedies. The characteristics of age discrimination claims have been harmonized with other employment claims under the Ohio Civil Rights Act.

When do the changes go into effect?

  • The Employment Law Uniformity Act becomes effective April 15, 2021.

What actions should employers take now?

  • The most important thing Ohio employers need to do as a result of these amendments is review their policies and procedures to ensure that they have anti-harassment provisions and reporting procedures in place and provide training to their employees. Effective policies, procedures, and training can help prevent sexual harassment in the workplace, ensure prompt action when a complaint arises, and mitigate liability if legal action ensues.  

The Labor and Employment team at BMD is available to assist if you have questions related to these important developments. For more information, please contact Employment and Labor Law Attorney Russell Rendall at 216.658.2205 or rtrendall@bmdllc.com.


UPDATE - Vaccine Policy Considerations for Employers

If you read our post from November, you’re already an informed employer. This first post of 2021 is to share good news, give a few updates, and answer some other common questions. Q: What’s the Good News? First, the EEOC confirmed that employers may require employees receive the COVID-19 vaccine. Second, polling indicates that the number of Americans who said they will receive a vaccine has increased from around 63% to over 71%. The number of Americans who are strongly opposed to a vaccine is about 27%. Third, initial returns show that the efficacy rate for certain vaccines is as high as 95% for some at-risk recipients.

Changes to FFCRA Paid Leave: Congress’ Revisions to Employment COVID-19 Leave Benefits Signals the Light is at the End of the Tunnel

Late in the evening on December 27th, President Trump signed into law the government’s $900 billion COVID-19 relief package (the “Stimulus Bill”). Among other economic stimulus benefits, the Stimulus Bill contains the $600 stimulus checks that will be issued to eligible individuals as well as, relevantly, changes to the Families First Coronavirus Response Act (“FFCRA”). The FFCRA was implemented in April 2020 and provided benefits to individuals who missed work as a result of an actual or suspected COVID-19 illness or to care for a child when their school or childcare service was closed because of COVID-19. Importantly, the Stimulus Bill extends eligibility for employer payroll tax refunds for leave payments made to employees on or before March 31, 2021 under the FFCRA, signaling to the American people that Congress believes many of the employed public will be vaccinated by this time, the light at the end of the tunnel. However, the Stimulus Bill does contain a caveat that employers are no longer required to provide FFCRA leave benefits after December 31, 2020, but if they do, they will receive the payroll tax credits, up to the maximums provided in the FFCRA, for payments made prior to April 1, 2021. Below we provide a list of questions and answers we received to date following the passage of the Stimulus Bill. We expect the U.S. Department of Labor (“DOL”) to issue additional questions and answers as the Stimulus Bill is implemented, and we will update this Client Alert as these are received.

Healthcare Speaker Programs: New OIG Alert

In a rare Special Fraud Alert issued on November 16, 2020 (the “Alert”), the Office of Inspector General (“OIG”) urged companies who host speaker programs to reassess their programs in light of the “inherent risks” associated with these activities. The Alert reports that, in the last three years, drug and device companies have reported paying nearly $2 billion to health care professionals for speaker-related services.

Value-Based Care Advances – CMS Issues New Final Rules for Stark and Anti-Kickback Statutes

The Centers for Medicare & Medicaid Services (“CMS”) and the Department of Health and Human Services (“HHS”) Office of the Inspector General (“OIG”) issued two highly anticipated (and quite extensive) Final Rules to reform the Stark Law and Anti-Kickback Statute (“AKS”) regulations. The Final Rules generally take effect on January 19, 2021. The Final Rules include new safe harbors for the AKS and new exemptions to the Stark Law to allow for greater flexibility. According to the HHS, the goal of updating both laws is to make it easier for providers to engage in care coordination and value-based care programs without running afoul of the statutes. Please note that this client alert could not cover the full extent of the Final Rule changes so please contact your BMD Healthcare attorney with questions.

Mandatory Filings Under CFIUS New Rules

On September 15, 2020, the Committee on Foreign Investment in the United States (“CFIUS”) promulgated a final rule modifying its mandatory declaration requirements for certain foreign investment transactions involving “TID US businesses” (sensitive U.S. businesses dealing in critical technologies, critical infrastructure and sensitive personal data) dealing in “critical technologies” – i.e., U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or more critical technologies. The new rule also makes amendments to the definition of the term “substantial interest” (used to determine whether a foreign government has a substantial interest in an entity). The final rule became effective on October 15, 2020.