HB 106: Paystub Protection Act To Require Detailed Paystubs

HB 106: Paystub Protection Act To Require Detailed Paystubs

House Bill 106, the Paystub Protection Act, just recently went into effect April 9 and will require that employers provide detailed pay statements to employees on regular paydays. While employers may already be providing pay statements, there is a new level of detail required that may prompt changes for school paystubs and even require future changes in the state payroll system.

The Act requires that you provide each employee with a written or electronic pay statement that includes the employee’s earnings and deductions for each pay period, on the employer’s regular paydays.

This pay statement must also include:
1. The employee’s name;
2. The employee’s address;
3. The employer’s name;
4. The total gross wages earned by the employee during the pay period;
5. The total net wages paid to the employee for the pay period;
6. A listing of the amount and purpose of each addition to or deduction from the wages paid to the employee during the pay period;
7. The date the employee was paid and the pay period covered by that payment; and
8. For an employee who is paid on an hourly basis, all of the following information:

a. The total number of hours the employee worked in that pay period;
b. The hourly wage rate at which the employee was paid; and
c. The employee’s hours worked in excess of 40 hours in one workweek.

The Act gives a 10-day grace period if you fail to provide the pay statement on the employee’s payday. However, if you fail to provide the required paystub for more than 10 days after the employee requests their paystub, the employee may submit a report of the violation to the Ohio Director of Commerce. The Ohio Director of Commerce will investigate and may issue a written notice of violation to the district. Districts must then post the notice of violation for 10 days in a conspicuous place.

What does this mean for your district?

Districts should conduct a review of payroll processes to ensure that paystubs are consistently sent out on the district’s regular paydays, and that paystubs include the necessary details. If they do not, districts may want to review the requirements with your IT department for your billing software. Additionally, districts may need to make changes to how you toll and count employee leave. Contact an attorney at Ennis Britton if you have any questions or concerns about compliance with this Act.

https://search-prod.lis.state.oh.us/api/v2/general_assembly_135/legislation/hb106/05_EN/pdf/

 

 

 

OEC Reaffirms Family Hiring Restrictions, Expands Definition to Include Domestic Partners

OEC Reaffirms Family Hiring Restrictions, Expands Definition to Include Domestic Partners

In their first formal advisory opinion of the year, the Ohio Ethics Commission (OEC) expanded the definition of family member to include domestic partnerships. A “domestic partner” includes a person who is living with the public official or employee in a common law marital relationship or who is otherwise cohabiting with the public official. In this context, “cohabitate” means a romantic/intimate relationship. Following this expansion, the Commission’s definition of a “member of a public official’s family” includes but is not limited to: (1) grandparents; (2) parents and step-parents; (3) spouses; (4) children and step-children; (5) grandchildren; (6) siblings; (7) any person related by blood or marriage that resides in the same household as the public official; (8) and domestic partners.

Ohio’s Public Contract Law prohibits public officials from using their authority or influence to secure a contract in which they, a member of their family, or any of their business associates has an interest. Additionally, conflict of interest laws prohibit public officials from using their authority to secure anything of value for family members who are seeking employment with, or are employed by, the same public agency, and from soliciting or accepting anything of value that may manifest in a substantial and improper influence upon the public official.

These laws create several general family hiring restrictions. Notably, public officials cannot:

  • Directly hire members of their family or vote to authorize the employment of a family member;
  • Recommend, nominate, or use their position in any way to secure a job for a family member;
  • Participate in a decision to give a family member a raise, promotion, job advancement, overtime pay or assignments, favorable performance evaluations, or other things of value related to employment; or
  • Use their official position, formally or informally, to impact the decisions or actions of other officials or employees in matters that could affect their family member’s interest in their individual employment.

The Ohio Ethics Commission has advised that this does not amount to a “no-relatives” policy. Provided the school official is sufficiently detached from all employment decisions involving their family member, Ohio’s Ethics laws do not absolutely bar family members from working for the same school district. However, their obligation to remain impartial goes beyond the initial hiring process.

Even if the decision does not directly affect the public official’s family member, they may be prohibited from weighing in on certain actions involving lay-offs or terminations. For example, if a district needed to reduce their staff and one of the official’s family members worked in a department targeted for lay-offs, the public official should refrain from weighing in on those decisions. Even if they are not directly advocating for their family member to keep their position, the official’s actions could still “affect their family member’s interest in their individual employment” as the decision to lay off a different employee indirectly decreases the chances the family member will be affected by the lay-off.

The prohibitions of O.R.C. 102.03 serve the public interest in impartial government by preventing the creation of a situation which may impair the objectivity and impartiality of a public official in a matter affecting themself or a related party. Even if the public official is acting in good faith, the nature of the family relationship alone is enough to call into question the impartiality of their decision, and has the potential to undermine the public’s faith in the district. Prior to taking any employment-related action, district officials who have family members working in the same district need to consider whether the particular decision, even if it relates to another employee, could indirectly improve their family member’s own employment prospects.

 

 

2024 Wage Settlement Report: A Look at Schools Wage Increases

2024 Wage Settlement Report: A Look at Schools Wage Increases

School Employee Average Wage Increase Overall:

The Ohio State Employment Relations Board (SERB) released the annual wage settlement report for 2024 on March 1, 2025. The report shows wages increased more in 2024 than in any other year since 2015, nearly across the board. Teacher wages increased an average of 3.17% and non-teacher school employee wages increased an average of 3.07%. This is the first time since 2015 that school employee wage increases were 3% or higher; in 2023 the state saw an increase of 2.96% for teachers and 2.86% for non-teachers. However, put into context, of the categories of employees reported on (Police (Safety/Security), Fire, Blue-Collar, Other), school employees saw the smallest percentage of wage increase and the statewide average wage increase was 3.42%.

The report’s predictions for 2025 and 2026 show a slight slowdown in wage growth for school employees but the actual results will not be known until March 2026.

School Employee Average Wage Increase By Region:

The 2024 Wage Settlement Report also breaks down the average wage increases by state regions. Below are the average wage increases by region:

  1. Akron/Canton: 3.14%
  2. Cincinnati: 3.64%
  3. Cleveland: 3.29%
  4. Columbus: 3.66%
  5. Dayton: 3.34%
  6. Southeast Ohio: 3.67%
  7. Toledo: 3.59%
  8. Warren/Youngstown: 3.03%

Of the state regions, two regions saw wages increase at a slower rate in 2024 than in 2023. Akron/Canton 2023 average increase was 3.24% and Warren/Youngstown 2023 average increase was 3.07%.

Districts statewide are also carefully watching the state biennium budget bill. Initial projections on revenue from both the Governor’s proposal as well as the version of the budget bill adopted by the Ohio House show concerning numbers for many schools. The budget bill will also likely influence wages moving forward.

What does this mean for your school district?

With 2024 seeing the largest school employee wage increases since 2015, your school is likely feeling that as well and may feel it more if you’re in the process of, or about to begin bargaining for a new agreement. Going into bargaining, consider the region of your school as well to consider what other schools around you are potentially doing or considering doing for wage increases. Talk to your attorney if you have any specific questions regarding the 2024 wage settlement report and what it means for your school.

 

 

Supreme Court Reminds Districts to Triple-Check Their Evaluation Procedures

Supreme Court Reminds Districts to Triple-Check Their Evaluation Procedures

Jones v. Kent City School Dist. Bd. of Edn., Slip Opinion No. 2024-Ohio-2844.

On July 31st, 2024 the Ohio Supreme Court ordered the Kent City School District to reinstate a teacher after determining that the Board of Education failed to complete three formal observations as is required by the Ohio Teacher Evaluation System (“OTES”), and therefore was not able to non-renew his employment.

Jones had been employed by the district for roughly twenty years and began having disciplinary issues during the 2019-2020 school year. He repeatedly left early from work and failed to complete assigned tasks during teacher workdays. Following an absence where Jones failed to notify the administrators of his absence and failed to schedule a substitute pursuant to district procedures, the Board notified Jones that he would be placed on a “full cycle” evaluation and that he was being considered by the Board for nonrenewal.

Under state law, specifically R.C. 3319.111(E), school boards are required to complete at least three formal observations of any teacher employed under a limited contract if the school board is considering nonrenewal of that contract. While school boards and teachers’ unions are free to establish local standards for following the evaluation procedures, boards are still required to follow the mandatory procedures established by the General Assembly, and those statutory requirements prevail over any conflicting terms of a collective-bargaining agreement.

The evaluator in this case finished the first evaluation without any difficulties, but the COVID-19 pandemic shut down schools and shifted classes online before the second evaluation could be carried out. In response to the pandemic, the General Assembly allowed districts to drop evaluation requirements provided they agree to renew the teacher’s contract. Not wanting to reemploy Jones, the district decided to proceed with the evaluation process after they reached an agreement with the teachers’ union to allow observations to be completed virtually through distance learning. Following the agreement, a second observation took place virtually and a third was scheduled. Jones was unavailable for the third observation due to a medical emergency. He was later excused for the rest of the year by his doctor. Rather than reschedule, the evaluator moved forward with the observation in Jones’s absence by sitting in on a virtual learning session with Jones’s class.

The board unanimously approved Jones’s nonrenewal following the evaluation process, and Jones appealed the decision. Because he was not present for the final observation, Jones argued that the process violated R.C. 3319.111(E). The Ohio Supreme Court agreed. According to the Court, the plain language of the statute requires three observations of the teacher who is under consideration for nonrenewal, regardless of any agreement between the Board and the teachers’ union. It was undisputed that Jones was not present for that final evaluation. Therefore, the Court concluded that the board could not rely on Jones’s excused medical absence to justify their noncompliance with the statute.

What this means for your district? It is critical that school districts plan ahead if a teacher is up for non-renewal. As this case demonstrates, and as previous cases have held, even pandemics and doctors’ notes do not excuse a district’s evaluation requirements for non-renewals. This includes the completion of at least three observations of the teacher while they are actually engaged in teaching.

Ohio Court Emphasizes Need for Flexibility in Administrator Contracts

Ohio Court Emphasizes Need for Flexibility in Administrator Contracts

State ex rel. Ruble v. Bd. of Edn. of Switzerland of Ohio Local School Dist., 2024-Ohio-1542

The Switzerland of Ohio Local School District was sued by four administrators after their contracts were suspended by the Board of Education in July 2021. The Superintendent announced to the Board that he was recommending the suspensions due to the “reorganization and consolidation” of their administrative functions. After giving the administrators the required notice, the recommendation was adopted at the next board meeting listing the “financial condition of the school district” as a basis for the suspension of their contracts.

In a case argued by Ennis Britton’s own Michael Fischer, the Ohio 7th District Court of Appeals upheld the suspension of the administrators’ contracts on April 11, 2024 after determining the school board’s policy did not violate R.C. 3319.171. According to the court, Ohio’s administrative personnel suspension policy was meant to be construed broadly to give school boards the flexibility they need to adjust their administrative staff according to the needs of the school district.

In its decision, the court held that a district’s policy pursuant to R.C. 3319.171 needs to include the following:

  • One or more reasons that the board may consider for suspending any contract,
  • Procedures for determining the order of suspension of contracts, and
  • Provisions requiring a right of restoration for employees whose contracts of employment are suspended.

Additionally, school boards need to consider input from other administrators when developing its administrative personnel suspension policy.

However, the court noted that the statute does not require detailed lists of criteria for suspension, nor does it preclude the board from considering the overall needs and interests of the district when making staffing decisions. While the policy may not have been as detailed as the administrators argued it needed to be, the court noted that as long as the board’s policy meets the minimums established above as well as considering the administrators for other openings for which they may be properly qualified, the district is in compliance with the statute.

It is worth noting that the court suggested that the board’s policy, which was sourced from a third-party provider, may have been invalid for failing to consider the input from other administrators as required by R.C. 3319.171(C). But the court did not review this issue on appeal, since the argument never was properly raised by the administrators.

What does this mean for your district? Administrators do not have the same level of protection as teachers under Ohio law with regard to reductions in force. District policies still are required to meet certain statutory minimums, but R.C. 3319.171 is broadly construed to consider the best interests of the district and give boards of education the flexibility they need to adjust their administrative staff in response to changing circumstances. 

Ohio Court Emphasizes Need for Flexibility in Administrator Contracts

EEOC Releases New Guidance on Workplace Harassment

On April 24, 2024, the U.S. Equal Employment Opportunity Commission (“EEOC”) released new guidance on harassment in the workplace (“the Guidance”). The Guidance takes effect immediately. The Guidance sets forth the EEOC’s position on harassment that constitutes unlawful discrimination under Title VII of the Civil Rights Act (“Title VII”). Some of the major changes in the Guidance are as follows:

  • Sex-based harassment includes harassment based on sexual identity and sexual orientation.
  • Unlawful harassment based on pregnancy or childbirth may include issues such as lactation and decisions regarding contraception and abortion.
  • Harassment based on “color” (including skin color pigmentation considerations) is prohibited
  • Conduct on video meetings can contribute to a hostile work environment
  • Conduct on non-work-related platforms, such as social media accounts, may contribute to creating a hostile work environment
  • A hostile work environment may be established by a single incident
  • Title VII prohibits “intraclass harassment,” (meaning harassment based on a protected characteristic but conducted by a member of the same protected class).

Why New Guidance? The Guidance was released to address the transformation in workplace environments due to the advent of the internet. Certain technological innovations, such as email and video conferencing, have become indispensable tools for business operations. In addition, the Guidance was released after the Supreme Court’s 2020 decision in Bostock v. Clayton County, in which the Court held that harassment based on gender identity or sexual orientation constitutes unlawful sexual harassment under Title VII. After the Court issued the Bostock decision, the EEOC convened a Select Task Force on Harassment in the Workplace and issued a report detailing its recommendations. This Guidance applies Bostock to the harassment context, explaining that harassment based on gender identity or sexual orientation constitutes unlawful sexual harassment under Title VII.

What Does This Mean for Your District? School districts should reevaluate their harassment policies considering the new Guidance. The Guidance itself encourages employers to have clear harassment policies and implement a safe and effective system for employees to report harassment. In addition, all employees should receive updated training on the new Guidance.