Scherzer Blog

The Best Deal Out There!

It is #GIVINGTUESDAY ” the Tuesday following Thanksgiving and Black Friday and Cyber Monday, a global day of giving fueled by the power of social media and collaboration.” Take part and give back to your community. Scherzer International would like to invite you to participate in #GIVINGTUESDAY by signing up to be a part of the Scherzer International team. On Sunday, December 10, 2017 at 8 a.m. at Glendale Central Park meet us at the starting line and walk – maybe run – a 5K like no other. Wear your “ugly” holiday sweater, put some jingle bells on your shoes, and enjoy some breakfast goodies at the finish line.

Follow this link and join us in finding a cure for America’s leading cause of disability.

For those who cannot attend the race you can “Jingle in Your Jammies” Choose this option and for $30 you receive a shirt and fundraise for a cure!

All donations, big or small, make a difference. Thank you!

|Scherzer Giving Back|

We Continue to Jingle!

Arthritis is a serious and growing health crisis – impacting one in every five adults and an estimated 300,000 children. It’s America’s #1 cause of disability. The Arthritis Foundation’s Annual Jingle Bell Run aims to change those numbers. At Scherzer International we are continuing our efforts to raise funds for those affected by Arthritis.

This past Thursday, November 16, we had our first fundraiser for the 2017 Jingle Bell Run at The Stand. SI employees, their families and friends made their way over to The Stand and enjoyed some delicious items. From every purchase, 20% of the proceeds went to support SI’s fundraising goal which aims to raise funds and awareness for Arthritis. Thank you to The Stand Northridge and Woodland Hills location for the wonderful food and for supporting local community fundraiser’s like ours.

Everyone’s efforts are greatly appreciated. Thank you to anyone who has donated or maybe shared a social media post. If you would like to see us reach our fundraising goal and get a head start on your New Year’s Resolution by participating in The Jingle Bell Run just click here!

“Jingle Bell, Jingle Bell, Jingle all the way

Oh what fun it is to run with the Scherzer Fam today!”

|Scherzer Giving Back|

Jingle all the way with Scherzer!

Scherzer International is excited to announce our participation in the Arthritis Foundation’s 2017 Jingle Bell Run! We invite you to join us by walking, running or skipping the 5K. The Jingle Bell run is the longest- standing festive race around and 100 percent of your registration fee and fundraising efforts benefit arthritis research.

The registration fee is $50 dollars and includes a performance shirt, timing chip and bells for your shoes. Children are welcomed with a registration fee of $20 which includes a performance shirt, jingle bells and a Reindeer Dash mini race! Scherzer will also have “Scherzer 2017 Jingle Bell Run” shirts and breakfast goodies for everyone who sign’s up.

If you find that you cannot attend the race you can “Jingle in Your Jammies” Choose this option and for $30 you receive a shirt and fundraise for a cure!

Gather your family, friends and co-workers for a truly fun and festive 5K. Donations are also appreciated. Your gift will make an impact and help find new and better treatments – and a cure for arthritis. Follow the link below and be a part of the Scherzer Team!

Jingle all the way to the finish line with us on Sunday, December 10, 2017 at Glendale Central Park where festivities begin at 8:00 a.m.

Let’s jingle all the way to find a cure for Arthritis!

http://www.jbr.org/faf/search/searchTeamPart.asp?ievent=1173453&team=6954936

|Scherzer Giving Back|

Mid-Year Update on Employment Background Screening Legislation

“BAN-THE-BOX”

List of jurisdictions is growing

“Ban-the-box” measures, which generally prohibit employers from inquiring about a candidate’s criminal history (including performing background checks) until later in the hiring process, and impose significant compliance requirements, will soon be the norm rather than an exception. The list of localities that have enacted such legislation is growing fast and now includes Austin, Baltimore, Buffalo, Chicago, Columbia – MO, Los Angeles (enforcement started July 1, 2017), Montgomery County – MD, New York City, Philadelphia, Portland, Prince George’s County – MD, Rochester, San Francisco, and Seattle, and ten states (Connecticut, District of Columbia, Hawaii, Illinois, Massachusetts, Minnesota, New Jersey, Oregon, Rhode Island, and Vermont (effective July 1, 2017)).

Although not labeled as “ban-the-box,” California’s Department of Fair Employment and Housing regulations (the “Regs”) that went into effect July 1, 2017 impose certain similar requirements when employers consider criminal history information in employment decisions. As reported in our previous blog, the Regs are substantially based on the enforcement guidance issued by the Equal Employment Opportunity Commission in April 2012, and prohibit employers from using a candidate’s criminal history in personnel decisions if such information will have an adverse impact on individuals that are in a legally protected class.

Amended rules for New York City’s “ban-the-box” take effect August 5, 2017

Nearly two years after the enactment of New York City’s Fair Chance Act (FCA), and without much fanfare, the City’s Commission on Human Rights published its amended rules that establish certain definitions and procedures, and clarify the comprehensive requirements of the FCA when using criminal history in employment decisions, and considering applicants for licenses, registrations, and permits.

CREDIT CHECK RESTRICTIONS

Eleven states (California – AB 22; Colorado – The Employment Opportunity Act; Connecticut – SB 361; District of Columbia – Fair Credit in Employment Amendment Act, Hawaii – HB 31 SD1; Illinois – HB 4658; Maryland – HB 87; Nevada – SB 127; Oregon – SB 1045; Vermont – Act No. 154 (S. 95); Washington – RCW 19.182 and RCW 19.182.020) and at least two localities (New York City – Stop Credit Discrimination in Employment Act, and Philadelphia – Bill No. 160072), have enacted laws that generally prohibit private employers from checking a candidate’s credit history, except in circumstances where a credit screen is justified by the position’s responsibilities or is required by law.

WAGE HISTORY INQUIRIES

Pay equity initiatives, which among their provisions include a ban on inquiries about a candidate’s wages, are gaining momentum nationwide. The following jurisdictions have enacted such laws and many more are considering similar measures: Delaware – HS1 (effective December 14, 2017); Massachusetts – Pay Equity Act (effective July 1, 2018); New York City – Intro 1253 (effective October 31, 2017); Oregon HB 2005 (effective December 1, 2019); Philadelphia – Fair Practices Ordinance: Protections Against Unlawful Discrimination (set to go into effect May 23, 2017 but now facing a legal challenge); Puerto Rico – Equal Pay Act (effective March 8, 2017); and San Francisco – Parity in Pay Ordinance (effective July 1, 2018).

Pending before California’s Senate is AB 168 that would prohibit employers from seeking an applicant’s salary history and impose significant penalties for violations. Notably, California already has a pay equity law, AB 1676, and although the law does not ban salary history inquiries, it does prohibit employers from using a candidate’s prior wages as the sole basis to justify a pay disparity.

WORK AUTHORIZATION VERIFICATIONS

Revised Form I-9

The USCIS released a revised version of Form I-9, Employment Eligibility Verification on July 17, 2017. Employers can use this revised version or continue using Form I-9 with a revision date of “11/14/16 N” through September 17, 2017. Beginning September 18, 2017, however, employers must use the new form (with the revision date of “07/17/17 N”).

Reminder to California employers

California’s AB 1065 that went into effect January 1, 2017 makes it unlawful for employers to:

request additional or different documents than those required under federal law to verify that an individual is not an unauthorized immigrant;
refuse to accept documents provided by the applicant that reasonably appear to be genuine;
refuse to honor documents or work authorization based on specific status or term that accompanies the authorization to work; and
attempt to re-investigate or re-verify a candidate’s authorization to work using an unfair immigration-related practice.

|Educational Series, Employment Decisions, Legislation, Risk Management|

Scherzers Visit Camp Paintrock

Earlier this month, CEO Larry Scherzer and EVP Carole Scherzer spent a fun-filled weekend visiting C5LA youth at Camp Paintrock in Wyoming. The Scherzers are active Board Members of C5LA, a 5-year leadership development and college preparatory program for high-potential teens from LAUSD.

This October, Larry and Carole will be the honorees at C5’s 6th annual benefit event, Urban Campfire.

For more information about C5LA, visit: http://www.c5la.org/about-montauk

Learn how you can become a sponsor of Urban Campfire at: http://www.c5la.org/urbancampfire

|Community Service|

New Regulations for California Employers Regarding Criminal Background Checks

What this is about:
The Department of Fair Employment and Housing (the “DFEH”) recently enacted regulations (“Regs”) for California employers that impose new requirements when considering criminal history information in employment decisions.

Effective date:
July 1, 2017

What this means:
Substantially based on the enforcement guidance issued by the Equal Employment Opportunity Commission in April 2012, the Regs prohibit employers from using a candidate’s criminal history in personnel decisions, if such information will have an adverse impact on individuals in a legally protected class. The Regs also expand the types of records that California employers are already prohibited from considering. Namely, any non-felony conviction for possession of marijuana that is older than two years is now off-limits.

Requirements:
If an employer obtains conviction information from a source other than the candidate — consumer report or internally performed search — the employer must first notify the candidate that he/she has been screened out because of a conviction before taking any adverse action. This notice requirement differs from that of the Fair Credit Report Act (the “FCRA”), which mandates notices only if the employer takes adverse action based on information contained in a third-party report. Ban-the-box city ordinances, such as those in Los Angeles and San Francisco, have yet different requirements, providing that a notice may be required if the adverse action is based on criminal history information from any source, including disclosure by the candidate.

The Regs also mandate that the candidate is given a reasonable opportunity to demonstrate that the exclusion should not be applied due to his/her particular circumstances, and consideration whether any additional information provided by the candidate or otherwise obtained by the employer warrants an exception.

According to the Regs, the candidate bears the initial burden of proof for establishing that the employer’s background screening policy has an adverse impact on a protected class. If an adverse impact is demonstrated, the burden shifts to the employer to show that its policy is “job-related and consistent with a business necessity,” and based on an individualized assessment, considering factors such as:

the nature and gravity of the offense or conduct
the time passed since the offense was committed and/or completion of the sentence
the nature of the job sought or held

Recommendations:
Employers in California should review their policies on the use of criminal history information in employment decisions and modify any practices to ensure compliance with the new Regs, the FCRA, analogous state law, and applicable local ban-the-box ordinances.

|Criminal Activity, Employment Decisions, Legislation, Risk Management|

New Legislation Prohibits New York City Employers From Inquiring About Applicants’ Salary History

What this is about:
New York City Mayor Bill de Blasio signed a new bill (Int. No. 1253-A) prohibiting private employers from inquiring about an applicant’s salary history during all stages of the employment process.

Effective date:
October 31, 2017

What is prohibited:
Once the law becomes effective, it will be an unlawful discriminatory practice for an employer (which includes employment agency, or employee or agent thereof) to:

Inquire about the salary history (current and prior) of a job applicant
Rely on the salary history of an applicant in determining the salary, benefits or other compensation for such applicant during the hiring process, including the negotiation of a contract

“To inquire” means to communicate, in writing or otherwise, any question or statement to an applicant or an applicant’s employer (current, prior or agent thereof) or to conduct a search of publicly available records or reports for the purpose of obtaining an applicant’s salary history.

What is allowed:
An employer may, without inquiring about salary history, discuss the applicant’s salary, benefits and other compensation expectations. This includes, but is not limited to, unvested equity or deferred compensation that an applicant would forfeit by resigning from the current employer. Also, if an applicant voluntarily and without prompting discloses salary history, the employer may consider such information in determining salary, benefits and other compensation, and may verify the applicant’s disclosure.

Exceptions:
The law provides exceptions where federal, state or local law requires disclosure or verification of salary history for employment purposes, internal transfers or promotions, and public employee positions governed by a collective bargaining agreement.

Enforcement:
The New York City Commission on Human Rights, the agency charged with enforcing the NYC Human Rights Law, will be enforcing this law. Civil penalties of up to $125,000 for an unintentional violation, and up to $250,000 for a “willful, wanton or malicious act” may be imposed.

|Employment Decisions, Risk Management|

Scherzer International Hosts C5LA Executive Leadership Lunch

C5LA Youth Leaders with SI employees on March 28th, 2017

On March 28^th, Scherzer International had the pleasure of hosting an amazing group of students from the C5LA Youth Foundation. The students began their visit in the company’s conference room, where managers and executives gave presentations describing their duties, their department’s role in the company, and their personal academic and career paths. The session wrapped up with a lively discussion driven by the C5LA students’ questions about background checks, running a business and innovation.

Afterwards, students and staff gathered in the break room for a social lunch to get a sense of the company’s culture and work environment. After filling up on lunch and conversation, the students were given a tour of SI’s office to see what happens “behind the scenes” when preparing background reports.

Our C5LA guests wrapped up their visit by hearing from our HR manager who described SI’s summer internship program, which has included C5LA students in past years, some of whom have chosen to return to SI as full time employees. Everyone at SI agrees that any one of the students who visited us in March would be a great asset to the team!

Larry and Carole Scherzer both serve on the C5LA foundation’s Board of Directors and are strong supporters of the organization’s mission and programs. C5LA aims to provide underserved adolescents throughout the Los Angeles area with the resources and opportunities necessary for them to successfully pursue a college education and lead in their communities.

About the C5LA visit, Larry Scherzer said, “It was very moving to see such bright, ambitious students engaging with SI’s employees and taking such interest in our business. I keep thinking about one of C5LA’s theme songs, Ain’t No Mountain High Enough.”

Scherzer International makes a conscious effort to give back to the community as much as possible. The company regularly participates in fundraisers and toy drives benefiting organizations such as the Arthritis Foundation and Child and Family Guidance Center.

|Educational Series, Press Release, SI Information|

Additional Guidance and Forms Issued for City of Los Angeles’ Fair Chance Initiative for Hiring Ordinance

As reported in our previous alert, effective January 22, 2017, the Fair Chance Initiative for Hiring (“LAFCIH”) ordinance prohibits employers (with 10 or more employees) from inquiring about an applicant’s criminal history until a conditional job offer has been extended and imposes significant compliance obligations. The Department of Public Works Bureau of Contract Administration (the “BCA” or the “Department”), which bears administrative responsibilities for the LAFCIH, in addition to its rules and regulations published In February, has now provided forms and further guidance to help covered employers (and city contractors/subcontractors) meet their compliance requirements.

The forms and guidance include the following:

It is recommended that all covered employers and city contractors/subcontractors review the materials provided by the BCA. Penalties and fines for violations of the LAFCIH will be imposed starting July 1, 2017.

|Employment Decisions, FCRA, Legislation, Privacy, Risk Management|

New Guidance Regarding City of Los Angeles’ Fair Chance Initiative for Hiring Ordinance

What is this about:

As reported in our previous alert, effective January 22, 2017, the Fair Chance Initiative for Hiring (“LAFCIH”) ordinance prohibits employers from inquiring about an applicant’s criminal history until a conditional job offer has been extended and imposes significant compliance obligations.

The Department of Public Works Bureau of Contract Administration, which bears administrative responsibilities for the LAFCIH, in addition to its rules and regulations (the “Regs”) to guide covered employers (and city contractors/subcontractors) in meeting compliance requirements published last month, has now posted an “individualized assessment and reassessment form.” It is unclear whether the Department expects employers to use this form as provided or whether modifications are permitted. Certain other items in the Regs also remain unclear, and the Department has yet to issue anticipated further guidance.

Notable amplifications and clarifications:

“Applicant” means an individual who submits an application or other documentation for employment to an employer regardless of location.
“Employee” means any individual who performs at least two hours of work on average each week within the geographic boundaries of the City for an employer. Average week is determined by the last four complete weeks before the position is advertised
An individual who lives in the City and performs work for an employer from home, including telecommuting, is an employee.
An individual who works from a home that is outside of the City is not an employee even if he/she works for a Los Angeles-based company, unless the individual also works at least two hours on average per week within the geographic boundaries of the City.
The LAFCIH applies to employees regardless of an employer’s designation of an employee as an independent contractor, and labeling a worker as an independent contractor is not conclusive for the purpose of the LAFCIH.

Criminal history:

According to the Regs,

“A conviction shall include a plea, verdict, or finding of guilt regardless of whether sentence is imposed by the court. In the State of California, an employer is prohibited from asking about any arrest information, unless it results in a conviction, and otherwise specified.”

Note: the definition above cites California Labor Code §432.7(a)(1). The first sentence is correct; however, the second sentence is not, as that statute expressly allows inquiries about pending cases,stating that “nothing

[in this section] shall prevent an employer from asking… about an arrest for which the employee or applicant is out on bail or on his or her own recognizance pending trial.”

Nevertheless, the Regs, in a section titled “Employer Assessment of Criminal History,” go on to state that “arrests cannot be considered in employment decisions.”

Other guidance items:

The Regs amplify other definitions and aim to explain the various employer requirements. This includes, but is not limited to: the application and interview procedure, assessment of criminal history, the “Fair Chance” process, notice and posting, record-keeping, enforcement and exceptions.

See above the above post for links regarding this new guidance.