Top 10 Employment Law Issues for Credit Unions

A key benefit of membership with the Tennessee Credit Union League is access to the HR Hotline, staffed by experienced attorneys from Woods Rogers. This valuable service is provided at no additional cost to your credit union.

In today’s ever-changing legal environment, understanding and addressing key employment law challenges is crucial for compliance and effective workforce management. To illustrate the type of support offered, here are ten common topics that attorneys frequently address through the Woods Rogers Credit Union Hotline.

1. Family Medical Leave Act Compliance

“What are my obligations under the law?” “How much leave can my employee take?”

Credit unions of a certain size must ensure they provide eligible employees up to 12 weeks of unpaid, job-protected leave annually for qualifying medical and family reasons. Accurate recordkeeping, proper employee notifications, and clear policies are essential to avoid liability.

2. Reasonable Accommodations Under the Americans with Disabilities Act

“How do I know if this is a reasonable accommodation?”

The ADA requires employers to provide reasonable accommodations for employees with disabilities unless doing so causes undue hardship. Regularly updating job descriptions and engaging in the interactive process are key to mitigating risks.

3. Fair Labor Standards Act Wage and Hour Compliance

“Do I have to pay overtime for this position, or can I classify it as exempt?

Misclassification of employees as exempt or independent contractors could lead to costly audits and penalties. The recent increase to the salary exemption level was suspended for now but will remain in litigation. Credit unions should keep an eye on this issue in 2025.

4. Remote Work Policies

“How can I manage this employee when they are fully remote?”

With remote work now commonplace, ensuring compliance with wage and hour laws and addressing reasonable accommodation requests is more complex than ever. Clear policies and even “work from home” agreements should outline your expectations. However, credit unions should seek legal help drafting these agreements to avoid inadvertently creating an employment contract.

5. State and Local Leave Laws

“Do I have to give my employee paid time off for this?”

Many states and municipalities have enacted paid leave laws that go beyond federal requirements. Credit unions must determine if they are impacted and align their policies with these overlapping regulations.

6. Discrimination and Harassment Training

“How do I train my employees to prevent discrimination or harassment…or protect my credit union if it does occur?”

Workplace discrimination and harassment claims remain a top concern. Proactive training and enforcement of anti-discrimination policies are crucial to prevent incidents or provide a defense if the worst occurs. Woods Rogers attorneys have trained many credit union managers and employees and are able assist your credit union with onsite or remote training programs.

7. Employee Privacy and Data Security

“How do I comply with my state’s data protection laws?”

Many states have passed laws impacting employee privacy, and so credit unions need to determine if they have a need and respond accordingly. The Woods Rogers employment attorneys work closely with the firm’s Cybersecurity & Data Privacy and Financial Services teams to provide counsel on compliance with complex data regulations.

8. Retaliation Claims

“Can I fire this employee after they complained about their work conditions?”

Retaliation claims are the most frequently filed complaints with the Equal Employment Opportunity Commission. Clear communication and prompt responses to employee concerns can mitigate these risks. Management, supervisors, and HR need to be on the same page when making adverse employment decisions, like discipline and discharge.

9. DEI Initiatives

“Can I still make diversity a priority for my credit union?” “Do I still need a DEI policy?”

Diversity, equity, and inclusion (DEI) programs must be carefully implemented to avoid inadvertently violating anti-discrimination laws. The new presidential administration is expected to be active in this area, and the regulatory enforcement landscape may change drastically in the coming years.

10. Unionization and Labor Relations

“I heard a group of employees mention unionizing. What do I do?”

Rising union activity requires credit unions to prepare for organizing efforts while maintaining compliance with labor laws. Under current labor laws, it is easier than ever for a union to organize your employees. We suggest management training on labor laws, which can be counterintuitive to many managers and change often.

Calling the Woods Rogers Credit Union Hotline will connect you directly with an attorney experienced with employment law and credit union compliance. If you need guidance on employment issues, please contact us.

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