Please note the list below is not intended to be comprehensive. Our team is constantly monitoring for updates that may impact organizations across the country.
In this edition of State of Compliance, your quarterly guide to employment legislation, we look at changes at the federal level and across four states.
This quarter’s updates include new overtime and minimum wage guidance, predictive scheduling and greater pay transparency.
January Federal HR Compliance Updates
Effective Jan. 1, the Consolidated Appropriations Act, 2023 includes retirement provisions known as the “Secure 2.0 Act.” The law:
- encourages automatic enrollment and automatic contribution increases
- increases the catch-up contribution limit
- permits older workers to save and invest longer
- simplifies disclosures
Effective Jan. 15, the Department of Labor increased its civil penalties for federal labor law violations under a final rule released Jan. 12. Civil penalties will rise for:
- willfully violating minimum wage and overtime provisions
- violating the child labor provision
- unlawfully retaining employee tips
- failing to comply with the Family Medical Leave Act’s posting requirements
January State HR Compliance Updates
Colorado
Effective Jan. 1, Colorado’s SecureSavings Program requires all eligible state employers to facilitate SecureSavings if they don’t offer an employee retirement plan. The law affects Colorado businesses that have operated for at least two years and employ five or more people.
As of Jan. 1, Colorado employers and employees are contributing to the state’s new Family Medical Leave Insurance program. The program’s first premium payments are due April 30.
February Federal HR Compliance Updates
A Department of Labor staff bulletin confirms employees who work from home retain the protections of federal wage-and-hour law. The workers continue to accrue hours for job-protected family and medical leave.
Jessica Looman, principal deputy administrator for the Department of Labor’s Wage and Hour Division, confirmed the Fair Labor Standards Act guarantees pay for all hours worked and short rest periods. This also includes the right for employees to take breaks to pump breast milk in private.
The final IRS rules on electronic filing requirements include a later applicability date to help small businesses, tax and payroll industries. The rules require businesses filing at least 10 information returns in a year to file those forms electronically. The current threshold of 250 information returns will stay in effect until 2024.
February State HR Compliance Updates
California
The City of Los Angeles passed a Fair Work Week Ordinance that applies to retail businesses with at least 300 employees globally. Effective April 1, the ordinance includes workers from:
- temporary service firms
- staffing agencies
- retail subsidiaries
- franchisees
The ordinance penalizes companies for unpredictable and last-minute shift changes, as well as subjecting employees to “clopening” (working back-to-back closing and opening shifts).
March State HR Compliance Updates
Colorado
The Colorado Privacy Act will create new consumer privacy mandates effective July 1. The rules give consumers more control over how their information is used, including the ability to opt out of having their data sold.
Illinois
Senate Bill 208 ensures Illinois employees at least 40 hours of paid leave per year. Beginning Jan. 1, 2024, workers will start to earn paid leave on their first day at a rate of one hour for every 40 hours worked. This translates to up to 40 hours of paid leave annually. The leave can be taken either 90 days after employment begins or 90 days after the law’s effective date.
New York
Senate Bill S1326 amends the state’s pay transparency law from June 2022. For positions reporting to a New York-based office, supervisor or other worksite, the amendment clarifies pay transparency disclosures and advertisement requirements still apply to:
- job openings
- promotions
- transfer opportunities
In other words, the law covers remote workers working for New York-based employers. The amendment also clarifies “advertise” includes internal and external electronic postings.
DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.