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2024 MODERNHR/CPEHR HR Update

WAKE UP IT'S 2024

HR UPDATE


CALIFORNIA UPDATES


California Expands Paid Sick Leave

In the wake of numerous California cities passing local Paid Sick Leave (PSL) ordinances in recent years, the State of California has now taken matters into its own hands – and created yet more hurdles for employers. Governor Gavin Newsom signed into law SB 616, which expands California’s existing paid sick leave law – the Healthy Workplaces, Healthy Families Act of 2014 – in multiple ways. The new law’s modifications have widespread implications because they will apply to virtually all employees who work in California for 30 days or more in a year. With the vast majority of employees covered, employers must anticipate these modifications head-on. What are the five steps you can take to prepare for this new law, which will take effect on January 1, 2024?


New Law in a Nutshell

Specifically, the new law will modify the existing paid sick leave law by:

· Increasing the annual amount of PSL an employee is entitled to under either the frontload or accrual method from 24 hours or three days to 40 hours or five days;

· For employers who utilize an accrual model other than one hour of leave for every 30 hours worked, increasing the number of PSL hours accrued to 40 hours by an employee’s 200th day of employment, in addition to accruing at least 24 hours of PSL by their 120th day of employment;

· Increasing the number of days of carried over PSL an employee can use each year from 24 hours or three days to 40 hours or five days;

· For employers who offer paid leave, increasing the number of days of paid leave an employee is eligible to receive from 24 hours or three days within nine months of employment to 40 hours or five days within six months;

· Increasing the cap on an employee’s accrual of PSL from 48 hours or six days to 80 hours or 10 days;

· Extending certain procedural and anti-retaliation provisions of existing law to employees who are covered by a valid collective bargaining agreement that provides for different paid sick leave obligations; and

· Preempting any local cities’ PSL ordinances with less generous leave requirements to establish the state-wide minimums described above.

Preparing For This Law: 5 Steps to Take

Frustrating as these new changes are, employers must work quickly to ensure their compliance by January 1, 2024, when these additional leave policies are set to take effect. You can take several steps now to proactively ensure you are in the best possible position come January. These steps include:

1. Review whether any of the local PSL ordinances applicable to your organization are preempted by the new law or whether they will remain unaffected.

2. Update your written sick leave policies, employee handbooks, and training materials to ensure compliance, as handbook language regarding sick leave that is not compliant with these modifications could be used in an attempt to establish violations.

3. Train managers and supervisors on the increased amount of PSL to which employees are now entitled and the carryover and accrual cap changes affecting their workforce.

4. Train your human resources and benefits specialists on these changes to ensure that employees can begin accruing the correct amount of PSL. Make sure you are correctly carrying over and capping the appropriate amounts of PSL employees are entitled to.

5. Review the new law with your company’s payroll processor to ensure that the accrual and frontloading allowances are correct and that wage statements accurately reflect the PSL to which each employee is entitled.

Because of the broad reach of California’s new PSL laws and the expensive consequences employers will face for noncompliance, it is well worth reviewing these changes now and preparing well in advance of when they will take effect.

2-Step Plan to Comply with Surprising New California Non-Compete Law

It might have flown under the radar due to the slew of new laws passed in California this year or because you might think that you know all there is to know about non-compete laws in California. But this past legislative session saw two new laws passed that will require many California employers to take action by February 14, 2024 or risk tremendous legal exposure.

· One new law requires employers to notify current and certain former employees that any non-compete restrictions they signed are actually void.

· Another new law creates private rights of action against employers arising from unlawful provisions in confidentiality and non-compete agreements.

The new notice requirement mandates that covered employers provide written notice in an individualized communication to current and former employees. And this notice must be sent by Valentine’s Day—February 14, 2024.

Employers’ 2-Step Plan

1. Review any employment agreements with noncompete clauses or other restrictive covenants that are void under California law.

2. Once any offending noncompete agreements or clauses have been identified, the employer needs to send out individualized written notices to the applicable employees by February 14.

While this might sound far off in the future, there are critical reasons why you should start your work now.

First, the work to assess which employees need to receive one of these notices may take some time given some of the nuances of the law and open questions about which workers should receive the notices. Second, you may need to send large volumes of notices to current and former employees depending on their specific workforce history. Third, it may be advantageous to provide this notice in conjunction with other documents (like handbook updates, other employment-related notices, or updated confidentiality agreements that comply with California law) and thus a coordinated effort could be worthwhile.


California Establishes New Leave for Reproductive Loss

On Oct. 11, California Gov. Gavin Newsom signed a bill into law allowing for up to five days of time off work for reproductive-related losses.

Senate Bill 848 makes it an unlawful employment practice for an employer to refuse to grant an eligible employee's request to take up to five days of unpaid leave following a reproductive loss event.

Previously, California law required employers to provide bereavement leave upon the death of an employee's family member. Reproductive-related losses, however, largely remained unaddressed. Such losses are a common occurrence with more than 1 in 4 pregnancies resulting in miscarriage, and they may result in post-traumatic stress disorder (with almost 1 in 3 women developing post-traumatic stress disorder after a miscarriage).

What Does this New Leave Require?

SB 848 acts as a subset of California's bereavement leave law and increases an employee's leave entitlements for a reproductive loss event, which is defined as "the day or, for a multiple-day event, the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction." Covered employers must provide up to five days of leave for reproductive loss events.

The law limits the amount of reproductive loss leave to a maximum of 20 days within a 12-month period. Thus, although an employee may be subject to multiple reproductive loss events in a 12-month period, an employer is not required to provide more than 20 days of reproductive loss leave.

Like many other California leave laws, SB 848 prohibits employers from retaliating against any employee for requesting or taking leave for a reproductive loss.

California employers with five or more employees are covered under the law. Only employees who have worked for the employer for at least 30 days are eligible for reproductive loss leave.

Subject to narrow exceptions when an employee takes applicable leave under state or federal law, eligible employees must take the leave within three months of the event triggering the leave (i.e., reproductive loss events), but it need not be taken on consecutive days.

Leave under the statute is unpaid, unless the employer has an existing policy requiring paid leave. Eligible employees may choose to use any accrued and available paid sick leave or other paid time off for reproductive loss leave.

SB 848 does not contain any provision permitting employers to request any documentation in connection with reproductive loss leave.

In light of this new leave entitlement, steps that a California employer may wish to take include:

  • Updating their employee handbooks and/or leave policies to incorporate this new leave entitlement.
  • Training management, supervisors, and HR on this new leave law.
  • Determining whether reproductive loss leave will be paid pursuant to any existing employer-provided leaves or policies.


How Can Employers Prepare for California’s New Cannabis Laws?

Two new employment-related cannabis laws will soon take effect in California, which may prompt changes to your employee handbooks and workplace policies. One law adds new employee protections for off-the-job cannabis use, and the other makes it unlawful for an employer to request information about a job applicant’s prior cannabis use. Both laws take effect on January 1, 2024, giving employers in the state only a short time to prepare. How can you best navigate the hazy horizon and get ready to comply with California’s new cannabis laws? Here are the answers to your top five questions.

1. What Employee Protections Are Being Added?

Off-Duty Cannabis Use

California’s Fair Employment and Housing Act (FEHA) makes it unlawful for an employer to discriminate against potential hires and existing employees based on a protected class. In other words, it is unlawful under FEHA for an employer to take an adverse employment action against an employee – such as demoting, refusing to hire, or terminating the employee – because of their race, religion, gender, or other protected characteristic.

AB 2188 expands FEHA’s anti-discrimination provisions to protect applicants and existing employees based on their use of cannabis outside of work. While employers can continue to enforce a drug-free workplace policy, most California employers will not be able to lawfully take any adverse employment action because an employee uses cannabis outside of work. In fact, under SB 700, employers cannot even inquire or request information about an applicant’s prior use of cannabis.

Limits on Drug Testing

A second component of AB 2188 relates to limits on drug testing. While the details get a little complicated, here are the basics:

· Tetrahydrocannabinol (THC) is the chemical compound in cannabis that can cause psychoactive effects and indicate impairment.

· After THC is metabolized, it is stored in the body as a nonpsychoactive cannabis metabolite.

· These metabolites do not indicate impairment, only that an individual has consumed cannabis in the past.

· Therefore, drug tests that look for cannabis metabolite do not correlate with impairment on the job.

Under the new requirements, employers need to adopt testing procedures that screen for active impairment/THC and discontinue testing for nonpsychoactive cannabis metabolites that do not indicate impairment.

2. Can Employers Still Prohibit Cannabis Use and Possession in the Workplace?

Yes. AB 2188 only prohibits discrimination based on cannabis use outside of the workplace. It does not affect the rights of employers to maintain a drug-free workplace. Employees or job applicants who are actively impaired or bring cannabis to work may still be denied employment opportunities, disciplined, or terminated on this basis.

3. Are There Any Exceptions to the New Requirements?

Yes, there are three. AB 2188 does not apply to employees in the building or construction trades. It also does not apply to employees who are hired for positions that require federal background investigations or security clearances — and it does not preempt state or federal laws that require applicants or employees to be tested for controlled substances.

4. How Should Employers Prepare?

Employers should review their current policies on drug and alcohol use to ensure they comply with AB 2188. Employers should distinguish in their policies between cannabis use outside of work versus impairment at work and consider specifying in the policy what testing procedures will be utilized. Further, if any of the exceptions to AB 2188 apply to a particular group of employees within the company, you should address this as well.

Employers also need to make sure they are using compliant testing procedures and make changes if necessary to comply with this aspect of the law.

Lastly, employers should review their applications and new hire paperwork to make sure nothing in these materials request information about a job applicant’s prior cannabis use.

STATE BY STATE MINIMUM WAGE INCREASES


STATE BY STATE MINIMUM WAGE INCREASES

Under the Fair Labor Standards Act (FLSA), the federal minimum wage hasn’t changed since July 2009, when an amendment brought the rate to $7.25 per hour. The following minimums will be effective January 1, 2024, unless otherwise indicated.

Employees who qualify for minimum wage exemption must generally be paid at no less than $684 per week ($35,568/year) on a salary basis for federal purposes. However, certain states have their own minimum salary exemption requirement.

Alabama: $7.25

Alaska: $10.85

Alaska salary exemption minimum: $45,136/year

Arizona: $14.35

· Flagstaff: $17.40

Arkansas: $11.00

California: $16.00

California executive, professional, and administrative salary exemption minimum: $66,560/year.

· Alameda: $16.52 (increase TBD on July 1st)

· Belmont: $17.35

· Berkeley: $18.07

· Burlingame: $17.03

· Cupertino: $17.75

· Daly City: $16.62

· East Palo Alto: $17.10

· El Cerrito: $17.92

· Emeryville: $18.67

· Foster City: $17.00

· Fremont: $16.80

· Glendale (Hotels Only): $19.73

· Half Moon Bay: $17.01

· Hayward: $15.50 for companies with 25 or fewer employees; $16.90 for companies with more than 25 employees

· Long Beach: $15.50

· Long Beach City Hotel Workers: $17.55

· Long Beach Hotel & Concessions: $17.36

· Los Altos: $17.75

· Los Angeles City: $16.78

· Los Angeles County (unincorporated areas): $16.90

· Los Angeles City Hotel Workers: $19.73

· Malibu: $16.90

· Menlo Park: $16.70

· Milpitas: $17.20

· Mountain View: $18.75

· Novato: $16.04 for small companies with 25 or fewer employees; $16.60 for companies with 26-99 employees; $16.86 for companies with 100 or more employees.

· Oakland: $16.50; $17.94 for hotels that offer health benefits; $23.91 for hotels that do not offer health benefits.

· Palo Alto: $17.80

· Pasadena:$16.93

· Petaluma: $17.45

· Redwood City: $17.70

· Richmond: $16.17

· San Carlos: $16.87

· San Diego: $16.85

· San Francisco City & County: $18.07

· San Francisco, MCO (For-Profit): $20.22; MCO (Non-Profit): $18.93; MCO (Public Entities): $19.25

· San Jose: $17.55

· San Leandro: $15.50

· San Mateo: $17.35

· Santa Clara: $17.75

· Santa Monica: $16.90; Hotel Employees: $19.73

· Santa Rosa: $17.45

· Sonoma: $16.56 for small companies with 25 or fewer employees; $17.60 for companies with more than 25 employees

· South San Francisco: $17.25

· Sunnyvale: $18.55

· West Hollywood: $19.08; Hotel Employees: $19.08

Colorado: $14.42

· Denver: $18.29

Connecticut: $15.69

Delaware:$13.25

District of Columbia: $17.00

Florida: $12.00 (increased to $13.00 on September 30th)

Georgia: $7.25

Hawaii: $14.00

Idaho: $7.25

Illinois: $14.00

· Chicago: $15.00 for companies with 20 or fewer employees; $15.80 (This will increase on July 1st – rate TBD.) for companies with 21 or more employees

· Cook County (outside of Chicago): $13.70

Indiana:$7.25

Iowa: $7.25

Kansas: $7.25

Kentucky: $7.25

Louisiana: $7.25

Maine: $14.15

Maine salary exemption minimum: $42,450.20 annually

Maryland: $15.00

· Montgomery County: $14.50 for companies with 10 or fewer employees (increase to $15.00 on July 1st); $15.00 for companies with 11-50 employees (increase TBD on July 1st); $16.70 (increase TBD on July 1st) for companies with more than 50 employees.

Massachusetts: $15.00

Michigan: $10.33

Minnesota: $8.85 for small companies with annual gross revenue less than $500k; $10.85 for large companies with annual gross revenue of $500k or more (increase TBD on July 1st)

· Minneapolis: $14.50 for small companies with 100 or fewer employees; $15.19 for companies with more than 100 employees (increase TBD on July 1st)

· Saint Paul: $15.57 for companies with 10,001 or more employees; $15.00 for companies with 101-10,000 employees (increase to $15.57 on July 1st); $13.00 for companies with 6-100 employees ($14.00 on July 1st); $11.50 for companies with 5 or fewer employees (increase to $12.25 on July 1st).

Mississippi: $7.25

Missouri: $12.30

Montana: $10.30

Nebraska: $12.00

Nevada: $10.25 for employees who receive qualifying health benefits; $11.25 for employees who do not receive qualifying health benefits (increase to $12.00 on July 1stand 2-tier min wage eliminated)

New Hampshire: $7.25

New Jersey: $15.13 for companies with 6 or more employees; $13.93 for companies with 1-5 employees.

New Mexico: $12.00

· Santa Fe City & County: $14.03

New York: $15.00

New York salary exemption minimum: $55,458.40 annually

NYC, Westchester, and Long Island: $62,400 annually

· Fast Food Workers: $15.00

· Nassau, Suffolk, and Westchester Counties: $16.00

o Salary exemption minimum: $58,500/year

· New York City: $16.00

o Salary exemption minimum: $58,500/year

North Carolina:$7.25

North Dakota:$7.25

Ohio: $7.25 for small companies with annual gross revenue less than $385k; $10.45 for large companies with annual gross revenue of $385k or more

Oklahoma: $7.25

Oregon: $14.20

· Non-urban Counties: $13.20

· Portland Metro: $15.45

· Standard Counties: $14.20

Pennsylvania: $7.25

Rhode Island: $14.00

South Carolina: $7.25

South Dakota: $11.20

Tennessee: $7.25

Texas: $7.25

Utah: $7.25

Vermont: $13.67

Virginia: $12.00

Washington: $16.28

Washington salary exemption minimum (<50 and 50+ employees): $67,724.80 annually

· SeaTac (Hospitality & Transportation Companies): $19.06

· Seattle: $17.25 for employees who receive qualifying health benefits in companies with 500 employees or less; $19.97 for employees who do not receive qualifying health benefits in companies with 500 employees or less; $19.97 for companies with more than 500 employees.

West Virginia: $8.75

Wisconsin: $7.25

Wyoming: $7.25

Employment Legislation

EMPLOYMENT LEGISLATION

FEDERAL LEGISLATION

OSHA Final Rule on Workplace Injury and Illness Reporting Requirements – Record Reporting - Amends recordkeeping and reporting requirements to require certain employers to electronically submit injury and illness information to OSHA.

NLRB Final Joint Employer Rule– Joint Employment - Defines joint employment under the National Labor Relations Act (NLRA). Two or more employers will be held to be joint employers under the NLRA where they share or codetermine those matters governing employees’ essential terms and conditions of employment. Effective February 26, 2024.

CALIFORNIA LEGISLATION

Governor Gavin Newsom signed the following California Legislature’s labor and employment bills into law. Unless noted otherwise, the bills below will take effect on January 1, 2024.

AB 1076 – Noncompete Agreements - Voids noncompete agreements in an employment context that does not satisfy one of the exceptions to the prohibition on non-competes. Requires employers to notify current and former employees in writing by February 14, 2024 that a noncompete that applied to them is now void.

SB 699 – Noncompete Agreements – Prohibits employers from entering into or attempting to enforce noncompete agreements, which are void under state law, regardless of where and when the contract was signed.

AB 1355 – Notice Requirements - Allows employers to email employees’ statements of earned income tax credits and unemployment benefits with employees’ written consent and prohibits employers from taking adverse action against employees who opt out of receiving electronic statements.

AB 636 – Notice Requirements - Agricultural Employees – Requires employers to 1) include in the required notice to a new employee information regarding emergency or disaster declarations for the county where the employee works, and 2) provide this information and information about agricultural employee rights under California law, in English and Spanish to employees admitted to work under the federal H-2A agricultural visa, if requested by the employee.

AB 1389 – Unemployment Compensation - Extends the response time for a levy for delinquent payment of employer contributions for Unemployment Insurance and Employment Training Tax from five days to no longer than 14 business days.

AB 2188 – Cannabis Use - Except for employees in the building and construction trades, prohibits discrimination in hiring, termination, or terms and conditions of employment based on cannabis use during non-work hours, or the results of an employer-required drug screening that has detected non-psychoactive cannabis.

SB 700 – Cannabis Use – Amends the Fair Employment and Housing Act to make it unlawful for an employer to request information from a job applicant relating to the applicant’s prior use of cannabis, unless otherwise required by state or federal law.

AB 594 – Enforcement of Labor Code - Authorizes public prosecutors to bring civil or criminal actions for Labor Code violations and provides that any agreement between a worker and employer to limit representative actions or mandate arbitration is unenforceable in actions by the Labor Commissioner or public prosecutor.

AB 647 – Grocery Stores & Business Restructuring - Expands the rights of employees when there is a change of control of a grocery establishment and amends the definition of grocery establishment to include grocery distribution centers.

AB 933 – Sexual Harassment and Discrimination - Establishes that complaints and related communications regarding sexual assault, harassment, or discrimination are privileged and therefore protected from civil actions, such as defamation suits.

AB 1228 – Fast Food Workers – Creates a Fast-Food Council which will make recommendations for new standards specific to the fast-food industry. Effective April 1, 2024, implements a new minimum wage rate of $20 per hour for employees at a “National Fast-Food Chain,” as defined.

SB 365 – Arbitration Proceedings and Procedure - Provides that an appeal from an order dismissing or denying an employer's petition to compel arbitration does not automatically stay trial court proceedings.

SB 476 - Wage and Hour - Provides that time employees spend to complete food handler training and certification is compensable “hours worked,” for which the employee must be paid. Requires payment of necessary expenditures or losses for the employee in obtaining a food handler card. Requires employees to be relieved of all other work duties while taking the training course and examination.

SB 497 – Discrimination and Retaliation - Creates a rebuttable presumption against an employer in a claim by an employee or applicant for discrimination, retaliation, or adverse action, within 90 days of their protected conduct, including complaints of unequal pay, and creates a civil penalty of up to $10,000 for each violation.

SB 553 – Workplace Health and Safety - Requires employers to implement a workplace violence prevention plan and provide training to employees; amends the California Code of Civil Procedure, effective January 1, 2025, to allow a collective bargaining representative to seek a restraining order against an employee who poses a credible threat of violence.

SB 616 – Paid Sick Leave - Increases the number of job-protected paid leave hours employees can receive and use each year; extends some protections to employees covered by a collective bargaining agreement; creates partial preemption of local sick and safe time standards.

SB 723 – Layoffs and Right to Recall – Hospitality Industry - Extends until December 31, 2025, the expiration date for the law affording a right to recall for employees in the hospitality industry laid off as a result of the COVID-19 pandemic; creates a presumption that a separation due to lack of business, reduction in force, or other economic, non-disciplinary reason is due to COVID-19.

SB 848 – Leave of Absence - Provides for a leave of absence for a reproductive loss event, including the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or unsuccessful assisted reproduction.

SB 525 – Healthcare Worker Minimum Wage – Enacts different minimum wage increases depending on the type of health care facility.

Anaheim Ordinance No. 38015– Workplace Health and Safety Hospitality Industry - Requires a hotel employer to provide workers with personal safety devices and workplace safety training; allows a worker up to three hours of paid time off to redress an incident of workplace violence.

LEGISLATION IN OTHER STATES

LEGISLATION IN OTHER STATES

The following is a summary of key legislations that have passed, recently. Unless noted otherwise, the bills below will take effect on January 1, 2024.

ARKANSAS

HB 1197 – Unemployment Compensation - Prospective employers may notify the Division of Workforce Services if a candidate fails to respond to an employment offer or appear for a job interview, which will result in disqualification for unemployment insurance.

SB 434 – Income Tax Withholding - Reduces the threshold number of employees, from 250 to 125, to trigger the requirement to file Arkansas tax withholding statements electronically.

COLORADO

Colorado Final Rule re FAMLI Program Premiums (7 CCR 1107-1) - Paid Family ⁄ Medical Leave Insurance - Amendments clarify the definition of wages and establish fines for non-payment of premiums.

Colorado Proposition 122 (Ballot Measure)- Drug Use- Decriminalizes the use or possession of certain natural psychedelic medicines, including psilocybin and psilocin, the psychoactive chemicals in psychedelic mushrooms, but does not require employers to permit or accommodate the use of natural psychedelic medicines in the workplace.

SB 23-105 - Equal Pay/Wage Transparency- Amends Colorado’s Equal Pay for Equal Work Act to require employers to post all job and promotional opportunities, with salary range, benefits, and information about the hiring process. Extends the back pay recovery period from three to six years for employees who claim pay discrimination.

CONNECTICUT

SB 913 – Workers’ Compensation- Expands workers' compensation coverage for post-traumatic stress injuries for all employees, not just police officers, firefighters, emergency medical service personnel, emergency 911 dispatchers and similar employees.

SB 1103 – Artificial Intelligence- Enacts new rules pertaining to artificial intelligence, automated decision-making, and data privacy. Establishes an Office of Artificial Intelligence and a task force to study AI and develop an AI bill of rights. Requires the Department of Administrative Services to inventory AI systems in use by any state agency.

HAWAII

SB 1057 – Equal Pay/Wage Transparency- Expands Hawaii’s existing equal pay requirements by prohibiting an employer from paying employees in “any protected category” listed in Hawaii’s employment discrimination statute less than it pays other employees in the establishment for “substantially similar work.” Also requires that certain job listings disclose the hourly rate or salary range that “reasonably reflects the actual expected compensation” for the position being posted.

ILLINOIS

HB 2068 – Employee Benefits- Requires employers with at least 50 employees in Chicago and other towns and counties, to allow employees to use pre-tax dollars for the purchase of a transit pass through payroll deductions.

HB 2145 – Workers’ Compensation - Provides that an employer that fails to carry workers' compensation insurance may have its business license revoked and pay fines.

HB 2493 – Leave of Absence - Requires an employer to provide up to two workweeks of unpaid leave to an employee grieving a family or household member killed in a crime of violence.

SB 2034 – Leave of Absence - Employers with at least 50 full-time employees in Illinois are required to provide unpaid bereavement leave to an employee who has lost a child by suicide or homicide. The amount of the leave depends on the size of the employer.

HB 3516 – Leave of Absence- Requires employers with businesses with 51 or more employees to allow employees to use up to ten days of paid leave in a 12-month period for organ donation.

SB 208 - Paid Leave- Creates the Paid Leave for All Workers Act to permit employees to accrue 40 hours of paid leave per year to use for any purpose.

HB 2907 – Labor Management Relations - Permits an award of monetary damages for damage done to an employer's property as a result of conduct prohibited by law during a labor dispute.

HB 3396 – Labor Management Relations- Amends the Labor Dispute Act to provide that any person who places any object in the public way with intent to obstruct or impede labor picketing, demonstrations, or protest, commits a Class A misdemeanor with a minimum fine of $500.

HB 3733 – Notice Requirements- Requires employers with remote workers to provide notices required under certain employment laws by email or on the employer’s website.

Chicago Paid Leave and Paid Sick and Safe Leave Ordinance- Paid Leave- Employees will accrue one hour of Paid Sick Leave for every 40 hours worked and may use up to 40 hours of Paid Leave per year. Depending on employer size, Paid Leave may need to be paid out on separation of employment. Effective December 31, 2023.

INDIANA

SB 419 – Income Tax Withholding- Provides that an individual who is not a resident of Indiana and receives compensation for employment in Indiana for 30 days or less during the calendar year is exempt from the adjusted gross income tax.

MICHIGAN

SB 34 – Labor Management Relations- Repeals the state's right-to-work provisions. Effective March 30, 2024.

MINNESOTA

HF 447 and SB 2909– Discrimination/ Pay History - Prohibits employment discrimination based on gender identity; prohibits an employer from inquiring into, considering, or requiring disclosure of a job applicant's pay history during the hiring process.

Chapter 53 – MN Laws– Paid Leave - The new Earned Sick and Safe Time (ESST) law requires employers to provide employees one hour of paid time off for every 30 hours worked up to a maximum of 48 hours each year when an employee is sick, to care for a sick family member, or to seek assistance if an employee or their family member has experienced domestic abuse.

Bloomington Ordinance No. 2023-24– Paid Leave- Amends the city's paid sick and safe time ordinance to align it with the statewide ESST law.

St. Paul Ordinance No 23-48– Paid Leave - Amends the city's paid sick and safe time ordinance to align it with the statewide ESST law.

MONTANA

HB 447 – Income Tax- Describes the circumstances when employers are not required to impose withholding tax on certain nonresident employees.

NEW YORK

AB 836 – Privacy and Data Security - Prohibits employers from requesting or requiring employees or applicants to disclose any username, password, or other means for accessing a personal account or service through specified electronic communications devices. Effective March 12, 2024.

OHIO

Columbus Ordinance No. 0709-2023– Pay History - Prohibits employers with 15 or more employees from asking about or screening job applicants based on their current or prior wages, benefits, other compensation, or salary histories. Effective March 1, 2024.

OREGON

HB 3307 – Discrimination and Harassment – Extends civil rights, discrimination, and harassment workplace protections to participants in registered apprenticeship programs and certain private-sector on-the-job training programs.

HB 3443 – Leave of Absence - Expands eligibility for protected leave under the Oregon Family Leave Act (OFLA) to include bias crime victims.

SB 1033 – Leave of Absence - Defines “active service of the state” for purposes of the requirement that an employer grant a leave of absence during a period of active military service.

SB 184 – Reporting Requirements – Modifies employer child support reporting requirements to include payments made to independent contractors.

SB 907 – Discrimination/ Retaliation/ Workplace Safety - Bars employers from retaliating or discriminating against employees who refuse to do work that would expose them to serious hazards, provided the employee acted "in good faith and with no reasonable alternative."

RHODE ISLAND

HB 5902 – Wage and Hour - Increases the criminal penalty for employers involved in wage payment violations and employee misclassification.

TENNESSEE

SB 454 (HB609)– Family/Medical Leave Insurance - authorizes the issuance of an insurance policy that an employer may offer to an employee for the purpose of providing family leave benefits.

VIRGINIA

Virginia Final Rule re: Workplace Injuries and Illnesses Reporting Requirements (16 VAC 25-85) – Workplace Safety- Adopts by reference the federal Occupational Safety and Health Standards related to reporting and recordkeeping.

WASHINGTON

Washington Final Rule re: Unemployment for Officers of Employee-Owned Cooperatives (WAC 192-310-190)– Unemployment - Excludes certain corporate officers from eligibility for unemployment benefits.

SB 5123 – Cannabis Use - Prohibits an employer from discriminating against a person in hiring based on the person's use of cannabis off the job and away from the workplace, or because an employer-required drug screening test found the presence of non-psychoactive cannabis metabolites.

SB 5176 – Unemployment- Amends the definition of “unemployed” as it relates to officers of cooperative associations.

SB 5586 – Paid Family and Medical Leave - Provides that a current employer, a current employer's third-party administrator, or an employee may request access to an employee’s Washington Paid Family and Medical Leave Act claim records for the purpose of administering internal employer leave or benefit practices.

SB 5111 – Paid Sick Leave - Provides that employers must pay certain temporary construction workers, who have not been employed for 90 days, the balance of their accrued and unused paid sick leave upon separation from employment.


HEALTH CARE 2024 UPDATE

2024 Benefit Plan Limits & Thresholds Chart


Defined Contribution Plans

2024

2023

Change

Maximum employee elective deferral

$23,000

$22,500

+$500

Employee catch-up contribution (if age 50 or older by year-end)

$7,500

$7,500

No Change

Defined contribution maximum limit, all sources (employee + employer)

$69,000

$66,000

+$3,000

Defined contribution maximum limit (if age 50 or older by year end); maximum contribution all sources plus catch-up

$76,500

$73,500

+$3,000

Employee compensation limit for calculating contributions

$345,000

$330,000

+$15,000

Key employees’ compensation threshold for nondiscrimination testing

$220,000

$215,000

+$5,000

Highly compensated employees’ threshold for nondiscrimination testing

$155,000

$150,000

+$5,000

Source: IRS Notice 2023-45.

Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs)



2024

2023

Change

HSA contribution limit (employer + employee)

Self-only: $4,150 Family: $8,300

Self-only: $3,850 Family: $7,750

Self-only: +$300 Family: +$550

HSA catch-up contributions (age 55 or older)

$1,000

$1,000

No change

HDHP minimum deductibles

Self-only: $1,600

Family: $3,200

Self-only: $1,500

Family: $3,000

Self-only: +$100
Family: +$200

HDHP Maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)

Self-only: $8,050

Family: $16,100

Self-only: $7,500

Family: $15,000

Self-only: +$550

Family: +$1,100

Source: IRS Notice 2023-23.

Health Care Flexible Spending Accounts (Health FSAs), Limited-Scope (Vision/Dental) FSAs, & Transportation Parking/Mass Transit


2024

2023

Change

Maximum salary deferral contribution

$3,200

$3,050

+$150

Transportation Parking/Mass Transit

$315/month

$300/month

+$15

Source: IRS Notice 2023-34.

TAX UPDATES 2024


TAX UPDATES 2024

FEDERAL

FICA (Social Security)

Maximum Taxable Earnings $168,600 ($8,400 increase from 2023)

Employer/Employee 2024 Withholding Percent 6.2%

Employer/Employee 2024 Maximum Withholding $10,453.20 ($520.80 increase from 2023)

FICA (Medicare)

Maximum Taxable Earnings No Limit

Employer/Employee 2024 Withholding Percentage 1.45%

Employer/Employee 2024 Maximum Withholding No Limit, no change from 2023

Additional Medicare Tax for Employee Wages in Excess of $200,000, Rate 0.9% is required to be deducted by Employers

SUPPLEMENTAL WAGES

Rate (flat rate withholding method) 22%

Over $1 million 37%

WITHHOLDING

2024 new brackets depending on your income and filing status (see next page)

IRS Business Standard Mileage Rate $0.655/mile (subject to change)




2024 Withholding Brackets

Unmarried Individuals

If Taxable Income Is: The Tax is:

Not over $11,600 10%

Over $11,600 but not over $47,150 $1,160 plus 12% of the excess over $11,600

Over $47,150 but not over $100,525 $5,426 plus 22% of the excess over $47,150

Over $100,525 but not over $191,950 $17,168.50 plus 24% of the excess over $100,525

Over $191,950 but not over $243,725 $39,110.50 plus 32% of the excess over $191,150

Over $243,725 but not over $609,350 $55,678.50 plus 35% of the excess over $243,725

Over $609,350 $183,647.25 plus 37% of the excess over $609,350

Heads of Households

If Taxable Income Is: The Tax is:

Not over $16,550 10% of taxable income

Over $16,550 but not over $63,100 $1,655 plus 12% of the excess over $16,550

Over $63,100 but not over $100,500 $7,241 plus 22% of the excess over $63,100

Over $100,500 but not over $191,950 $15,469 plus 24% of the excess over $100,500

Over $191,950 but not over $243,700 $37,417 plus 32% of the excess over $191,150

Over $243,700 but not over $609,350 $53,977 plus 35% of the excess over $243,700

Over $609,350 $181,954.50 plus 37% of the excess over $609,350

Married Filing Jointly and Surviving Spouses

If Taxable Income Is: The Tax Is:

Not over $23,200 10%

Over $23,200 but not over $94,300 $2,320 plus 12% of the excess over $23,200

Over $94,300 but not over $201,050 $10,852 plus 22% of the excess over $94,300

Over $201,050 but not over $383,900 $34,337 plus 24% of the excess over $201,050

Over $383,900 but not over $487,450 $78,221 plus 32% of the excess over $383,900

Over $487,450 but not over $731,200 $111,357 plus 35% of the excess over $487,450

Over $731,200 $196,669.50 plus 37% of the excess over $731,200

Married Filing Separate

If Taxable Income is: The Tax is:

Not over $11,600 10%

Over $11,600 but not over $47,150 $1,160 plus 12% of the excess over $11,600

Over $47,150 but not over $100,525 $5,426 plus 22% of the excess over $47,150

Over $100,525 but not over $191,950 $17,168.50 plus 24% of the excess over $100,525

Over $191,950 but not over $243,725 $39,110.50 plus 32% of the excess over $191,150

Over $243.725 but not over $365,600 $55,678.50 plus 35% of the excess over $243,725

Over $365,600 $98,334.75 plus 37% of the excess over $365,600




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This information is intended to provide an overview of some important employment law updates within the United States. It is not intended to be an exhausted list of legislation and/or legal advice for any specific situation or set of facts. Whenever you are dealing with any employment-related situation it is always a good idea to seek the advice of a ModernHR/CPEHR Human Resources Representative or competent legal counsel.