As the dust settles on the 2024 elections, employers must prepare for significant shifts in wage policies and employee benefits. Several states approved key ballot measures directly affecting wage policies and labor costs of paid sick leave, minimum wage, and tipped worker pay. For example, Missouri and Alaska voters approved paid sick leave and minimum wage increases. Below are the highlights of significant developments.

Paid Sick Leave Expansion

Alaska, Missouri, and Nebraska voters overwhelmingly approved ballot measures mandating paid sick leave for employees. In 2025, Missouri and Nebraska will begin accruing paid sick leave with hourly requirements like those of Alaska. Missouri and Alaska employers must provide up to 56 hours of paid sick leave annually for workplaces with 15+ employees and up to 40 hours for smaller employers. Nebraska employers with 20+ employees can earn up to 56 hours of paid sick leave annually, with smaller employers required to provide up to 40 hours.

Minimum Wage Increases

Two states approved increases to the minimum wage, which will be phased in over the next few years. Alaska’s minimum wage will rise to $15.00/hour by mid-2027. Missouri’s minimum wage will reach $13.75/hour in 2025 and $15.00/hour in 2026. By contrast, California’s proposed minimum wage hike failed to gain voter support, maintaining the state’s existing wage structure.

Tipped Worker Pay

Proposals to alter tipped wage structures faced challenges this election cycle. Voters in Arizona and Massachusetts rejected measures that would have amended tipped worker pay policies. For instance, Arizona sought to lower the tipped wage floor further, while Massachusetts aimed to bring tipped workers’ pay in line with the state minimum wage over time. Both measures were defeated.

Broader Implications for Employers

These state-level changes underscore the evolving landscape of employment law. Employers in these states must prepare to update payroll systems, revise employee handbooks, and ensure compliance with these new laws.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions or for assistance with any updates your business may need.

In November 2024, Alaskan voters approved two measures to improve employee compensation and benefits. All employers will have to pay a minimum wage of $13.00/hr. starting on July 1, 2025, with the minimum wage incrementally increasing each year until 2027. All employers will also have to offer paid sick leave to employees effective July 1, 2025, at an accrual rate of 1 hour for every 30 hours worked. This provision follows many other states paid sick leave laws we have tracked over the past several years.

Employers with less than 15 employees can cap accrual and use of paid sick leave at 40 hours of sick leave per year. Employer with 15 or more employees can cap accrual and use at 56 hours of sick leave per year. As with other states, paid sick leave can be used for several reasons: the employee’s own personal illness, diagnosis, and treatment, to take care of a qualified family member’s illness, diagnosis, and treatment, or to obtain assistance and care for domestic violence, sexual assault, or stalking.

While the law does not go into effect until mid-summer, it is always a good idea to plan ahead if you have employees in Alaska or plan on hiring any employees in Alaska.

PrestigePEO is here to help and will continue to monitor for any additional guidance provided by the State of Alaska as we draw nearer to the effective date.

A recent Colorado Supreme Court ruling will significantly alter the way overtime rates are calculated, as it now includes holiday incentive pay as “regular rate of pay” for these purposes.  This difference will distinguish the Colorado Minimum Wage Order (COMPS Order 39) from the holiday pay provision provided by the Federal Fair Labor Standards Act (FLSA) wherein any “extra compensation” paid to workers for working on holidays can be excluded from being counted towards the regular rate of pay calculation as long as it was time and one-half or more of the regular rate of pay, and otherwise considered an “overtime premium.”

In Hamilton v. Amazon.com Services, LLC, a worker filed a class action lawsuit claiming overtime violations, for failure to pay overtime for hours worked during weeks wherein they had also worked on a company holiday.  After a dismissal at the federal district court level, the Tenth Circuit Court of Appeals certified the issue for the Colorado Supreme Court to decide, specifically “[w]hether Colorado law includes or excludes holiday incentive pay from the calculation of “regular rate of pay” under the COMPS order.”

The Court found that the holiday incentive pay does in fact fall under the provisions of “all compensation paid to an employee” as per the Colorado COMPS Order, because the incentive pay was provided to the workers for the time worked on a company holiday.  This incentivized payment of wages was essentially a shift differential provided to employees for work done during untraditional, less desirable shifts, therefore should be considered as a part of the total amount an employee is paid for all hours worked, during the employer’s pre-determined seven-day period. This Colorado ruling is a more aggressive approach to the payment requirements surrounding overtime, than that of the FLSA.

It is important to note the distinction between the terms holiday incentive pay and holiday pay for purposes of determining payment obligations.  Under the COMPS Order, holiday pay is pay for non-work hours on holidays, whereas holiday incentive pay accounts for wages paid to workers that is more than regular rates of pay and should be included for overtime purposes. Employers are encouraged to review their polices to ensure compliance with the Colorado COMPS Order as well as all other local, state, and federal wage and hour payment requirements.

PrestigePEO is here to help and is focused on supporting your business. Your HR Business Partner will be happy to assist you with any updates your business may need. Please reach out with any questions you may have.

On November 8, 2024, the Wage and Hour Division of the Department of Labor issued an opinion clarifying that the use of leave under the Family and Medical Leave Act for eligible employees participating in clinical trials for treatment of serious medical conditions is permitted.  The DOL affirmed the permitted use of the FMLA protected leave benefit to include clinical intervention trials, and outlines that the treatment is covered regardless of whether the trials are experimental in nature or involve placebos.

Key take aways from this opinion letter include:

• Employees who otherwise meet all other FMLA eligibility criteria may take leave for clinical trial purposes.
• The term “treatment” is defined very broadly by the FMLA, including those clinical trials that may or may not be effective in every case.
• The optional, voluntary, or elective nature of the treatment is not allowed to be a factor in determining the validity or permissibility of an employee’s request to take FMLA leave.
• Employers are precluded from asking about the effectiveness of a treatment, inquiring about specific medications prescribed, or any details of the treatment plan in evaluating eligibility under FMLA leave. The certification process remains the same, leaving employers permitted to only verify that an employee has a serious health condition that requires a health care provider’s treatment when responding to leave requests.

As a reminder, many state laws follow the FMLA leave entitlement provisions and will also need to be considered.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions or for assistance with any updates your business may need.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information becomes available.

As employers in Maine begin to prepare for the May 1, 2026, benefits start date for the new Paid Family Medical Leave requirement, further guidance is expected from Maine’s Department of Labor by January 1, 2025, as the rules for employers become formalized at the state level.

Background:

In July 2023, Maine’s Governor Mills signed the state budget into law that included provisions for the creation of the Paid Family and Medical Leave (PFML) law.  This new regulation will provide up to twelve (12) weeks of paid leave per benefit year for family, military, medical, or safe leave and will apply to all employers and employees in the state of Maine, except federal government employees.

Payroll withholdings are required to begin on January 1, 2025 and employers are required to begin their first quarterly wage reporting and premium payments starting April 1, 2025 and with payment due by April 30, 2025.  Benefits are scheduled to become available to employees on May 1, 2026.

In January 2025, the State of Maine Department of Labor will be releasing information regarding access to the online portal system for employers to register their business information and designate necessary contact information.

Withholding Contributions:

This new law will require that a contribution is made to the PFML fund of one (1%) percent of an employee’s wage rate, split between the employee and the employer.  However, employers with fewer than 15 employees are exempt from the employer portion of the required contribution but must still withhold 50% of the premium from their employees’ wages. Employers also have the option to apply for a private plan as a substitute but must be able to show that this plan offers substantially equivalent benefits as those offered under the state plan.

Leave Rules:

Maine’s Paid Family Medical Leave rules are similar to the federal law, and allows for leave for family purposes, such as care for a new child (birth, adoption, fostering), to care for family members with a serious health condition, for purposes of caring for one’s own medical needs, and for purposes of leave as a victim of domestic violence abuse.  Leave may also be taken for military deployment emergencies.  Leave may be utilized and scheduled as continuous leave, intermittent leave, or reduced leave.

PFML provides for guaranteed job protections for employees who have been employed with the same employer for at least 120 days.  An employee must give reasonable notice of their intent to take leave, absent an emergency, illness, or necessity to take leave and provide proof that the individual qualifies under one of the above noted approved reasons for leave.  The scheduling of the leave must not cause “undue hardship” on the employer.

The state recently released the official version of the state required posting that all employers must post informing employees of their rights under the PFML, which can be viewed here.

PrestigePEO is here to help. Employers should review their current leave policies and update them as necessary. Your HR Business Partner will be happy to assist you with any updates your business may need.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

As discussed in our September 2024 Insights, the Massachusetts EEO and Pay Data reporting deadline for filing the EEO-1 data reports is just around the corner.  This is a reminder that the reports are due to be filed no later than February 1, 2025.

Massachusetts EEO and Pay Data Reporting 

Who is required to Report?

• Private employers with 100 or more employees within Massachusetts during the calendar year preceding the reporting deadline and who are subject to EEO-1 reporting.

When and What are Employers required to report?

• Employers who qualify are annually required to submit an EEO data report to the Secretary of the Commonwealth by February 1, 2025. The EEO data report includes aggregate wage data categorized by job category, ethnicity, race, and sex. This data will be shared with the Massachusetts Department of Labor, but it has been determined that the data provided pursuant to this new EEO reporting law will not be defined as a public record for the purposes of the Massachusetts Public Records Law.

PrestigePEO is here to help and will continue to monitor for any additional guidance provided by the Commonwealth of Massachusetts as we draw nearer to the effective date.

A recent California Court of Appeal ruling in Rodriguez v. Lawrence Equipment, Inc. is a game-changer for employers navigating wage and hour disputes under the Private Attorneys General Act (PAGA). The Court confirmed that issue preclusion, where a previously decided matter cannot be relitigated, applies to PAGA claims and eliminates the employee’s standing. This marks a significant precedent for employers, underscoring that a favorable arbitration outcome on individual claims can block employees from pursuing PAGA representative claims for the same alleged violations.

Significant Precedent for Employers

This development could limit exposure to PAGA penalties, provided employers take strategic action to protect themselves. This ruling limits exposure and highlights the potential benefits of arbitration agreements when designed and implemented correctly. Employers who prevail in arbitration may resolve individual claims and shield themselves from broader PAGA exposure, offering optimism in the face of potential litigation.

Practical Steps for California Employers  

California employers should review and update policies, handbooks, and practices to ensure full compliance with California Labor Code requirements. Reviewing practices, including regular wage and hour audits, can mitigate risk and strengthen your position in arbitration.  Employers may consider implementing well-crafted agreements to help defend against class actions and PAGA claims. Review your agreements with legal counsel to confirm they meet California’s legal standards. If an employee initiates litigation, consult legal counsel to determine whether arbitration is viable and strategic, and remember that early intervention can significantly impact the outcome. By taking these proactive steps, businesses can minimize risk and focus on maintaining compliant workplace practices.

There have been recent legislative updates in Massachusetts and Connecticut. Both states have expanded paid sick leave benefits. This means adjustments will be necessary by employers.

In Massachusetts – Effective November 21, 2024, Massachusetts’ earned sick time law has been amended to allow employees to utilize sick leave for specific reproductive losses. This includes addressing physical and mental health needs arising from pregnancy loss, failed assisted reproduction, adoption, or surrogacy. This applies to both the employee and their spouse.

Necessary Employer Actions – Policy updates will be needed. Employers will need to revise sick leave policies to include the new provisions. Employers will also need to inform employees about the expanded sick leave benefits. Upper management will need to educate HR personnel on new updates so that way they can handle new leave requests appropriately.

In Connecticut – Effective January 1, 2025, Connecticut’s paid sick leave law will extend its coverage. Previously, the paid sick leave only applied to employers with more than 50 workers. Starting January 1, 2025, this applies to employers with 25 or more employees. Starting January 1, 2026, this applies to employers with 11 or more employees in Connecticut. Finally, starting January 1, 2027, this will apply to all employers with at least one employee. There is still an exception for seasonal employees. If an employee works less than 120 days, they will not be covered by this new sick leave law. One of the new rules under the expansion of the paid sick leave law pertains to accrual of sick leave. Employers will now be required to give at least one hour of paid sick leave per every 30 hours worked, capping this accrual at 40 hours per year.

Necessary Employer Actions – Employers will need to update sick leave policies. By January 1, 2025, employers will need to display the mandated paid sick leave posters in both English and Spanish. They must also give written notice to all employees.

Something interesting to note is that employers must retain sick time records for three years.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions or for assistance with any updates your business may need.

Starting January 1, 2025, an amendment to the Illinois Right to Privacy in the Workplace Act will impose significant new obligations on employers using the federal E-Verify system. While E-Verify remains legal in Illinois, this new law introduces strict requirements beyond federal guidelines. Employers must act quickly to comply with these changes and avoid penalties. Key Compliance obligations include mandatory notices and training, prohibited practices, detailed notification and attestation requirements, and employee protections.

Mandatory Notices and Training

• Employers must display federally and state-mandated E-Verify notices prominently in the workplace.
• All E-Verify employees must complete required training, with proof of completion retained for inspection.

Prohibited Practices

• E-Verify cannot be used to pre-screen job candidates or monitor current employees.
• Employers must safeguard sensitive data in E-Verify and prevent unauthorized access.

Detailed Notification and Attestation Requirements

• Employers must meet strict deadlines for filing attestations and notifying employees.
• Employers must file an attestation confirming receipt of training materials, compliance with training, and proper posting of notices within 30 days of enrolling in E-Verify or by January 31, 2025.
• When discrepancies are flagged in an employee’s verification documents, employers must notify the employee within five business days, provide clear guidance for resolving the issue, and outline the employee’s rights.
• Employers must inform all employees within 72 hours of receiving notice of an I-9 inspection. This notice must include the agency conducting the inspection, details of the inspection, and a copy of the notice.

Employee Protections

The law reinforces employee protections, prohibiting retaliation or adverse actions against those who file complaints or contest findings. Employers must ensure all communications about discrepancies or inspections are provided in the employee’s preferred language when possible, including clear timelines, findings details, and the employee’s right to representation.

Practical Steps for Employers  

To comply with these new requirements, employers should audit E-Verify practices and review policies to ensure they align with state and federal requirements. They should also avoid practices that misuse the system, ensure all E-Verify users are trained, document certifications, establish procedures to meet notification deadlines and ensure multilingual and detailed communications.

By taking these steps, employers can continue to use E-Verify responsibly while meeting Illinois’s enhanced compliance standards. For additional guidance and templates, visit the Illinois Department of Labor website.

The November 5, 2024, elections brought significant developments in marijuana legalization across the United States. Nebraska voters approved medical marijuana use, marking a milestone for the state. However, ballot measures to legalize recreational marijuana were rejected in Florida, North Dakota, and South Dakota. In Massachusetts, a measure to legalize psychedelic drugs, including magic mushrooms, was also defeated. These developments highlight the evolving landscape of marijuana legalization and its implications for public policy, healthcare, and the workplace.

As of now, 38 states have legalized medical marijuana, and 24 states, plus Washington, D.C., have legalized recreational marijuana.  Despite the growing acceptance, challenges remain, particularly around legal frameworks, workplace policies, and enforcement.

Recreational Marijuana is legal in the following states: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, Washington, D.C.

Medical Marijuana Legalization includes all recreational-use states, plus Alabama, Arkansas, Florida, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Nebraska (new), New Hampshire, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, and Wyoming.

Employer Considerations

The growing use of cannabis creates complex challenges for employers. While state laws on drug testing and workplace policies vary, businesses can still prohibit marijuana use and impairment during work hours and may terminate employees who violate these policies. The Americans with Disabilities Act does not recognize medical marijuana use as a protected accommodation.

Employers in industries regulated by federal agencies, such as the Department of Transportation, must maintain strict drug-testing protocols. Marijuana remains illegal at the federal level, impacting industries with strict compliance requirements.

What Employers Should Know as We Enter 2025

As marijuana laws continue to evolve, employers must navigate a complex legal landscape in 2025. Key considerations include reviewing and updating workplace drug policies to align with current state laws, clarifying expectations regarding marijuana use and impairment on the job, and monitoring legal updates.

Employers must balance accommodating changing societal norms with maintaining safe and productive workplaces. Starting the year with a clear plan for addressing marijuana-related workplace issues will help organizations adapt to this shifting regulatory environment.

Massachusetts voters recently rejected a ballot measure that would eliminate the tip credit system. Voters have recently chosen to retain the current tip credit system, which allows employers to pay tipped employees a base wage of $6.75/hour, as long as total earnings meet or exceed the state minimum wage which is $15/hour. The proposed change would have mandated that tipped employees receive the full state minimum wage—currently $15/hour by 2029, plus any tips earned. This rejection avoids increased labor costs for employers. This also means that employers can continue using the tip credit to meet minimum wage and not make any changes, which will also avoid increased payroll expenses for employers. Despite voter rejection of the proposed change, employers are advised to remain compliant with all current wage and hour laws, at the local, state, and federal level.

Recommended Actions for Employers – Maintain transparency with tipped employees regarding their pay structure and rights. Employers can do this by keeping handbooks and policies up to date.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions or for assistance with any updates your business may need.

On November 6, 2024, New York voters approved the Equal Rights Amendment, or “Proposition 1. This amended the state constitution codifies voters decision to prohibit discrimination based on race, color, ethnicity, national origin, age, disability, creed, religion, sex, sexual orientation, gender identity, gender expression, pregnancy/pregnancy outcomes, and reproductive healthcare, otherwise expanding the provision of the existing constitutional civil rights. This goes into effect on January 1, 2025.

Expanded Anti-Discrimination Obligations for New York State Employers – Employers must ensure that their policies and practices do not discriminate based on the newly protected categories. Existing laws already prohibit such discrimination, but the Equal Rights Amendment enforces these protections in the state constitution.

Recommended Actions for New York State Employers – Revise employee handbooks, codes of conduct, and anti-discrimination policies to include the newly protected categories. Employers should also consider implementing new training for all employees, especially management and HR. Updating procedures for employees to report discrimination or harassment related to the newly protected categories is also a good idea.

By proactively addressing these areas, employers can ensure a safe workplace and mitigate the risk of discrimination claims under the expanded protections of New York’s constitution.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions or for assistance with any updates your business may need.

On November 5, 2024, voters in seven states approved constitutional amendments affirming the right to abortion. These seven states were Arizona, Colorado, Maryland, Missouri, Montana, New York, and Nevada. On the other hand, attempts to expand abortion access were rejected in Florida, Nebraska, and South Dakota.

Implications for Employers and Coverage – In states where abortion rights are now constitutionally protected, employers should be prepared to review and potentially adjust their healthcare plans to ensure coverage aligns with the new legal requirements.

Communication Advice and Recommendations for Employers – Clear communication with employees regarding any changes to healthcare benefits and policies related to reproductive health is essential to maintain transparency and trust. Employers should assess current healthcare coverage to make sure that it includes services in line with the new abortion rights in applicable states. Updating employee handbooks to incorporate changes is a great idea.

Some State Specific Key Points

Colorado – Already a state with strong abortion rights, this amendment provides constitutional protection, possibly leading to increased expectations for employer-provided coverage of reproductive health services.

Missouri – A traditionally restrictive state on abortion rights; this change may necessitate significant adjustments in healthcare benefits and workplace policies.

New York – Employers in New York must ensure full compliance with constitutional guarantees, potentially expanding coverage or support for abortion services.

Nevada – While Nevada already has abortion protections, constitutional backing may increase expectations for employers to provide clear reproductive healthcare access.

Legal and Compliance Considerations for Employers – Employers face heightened legal risks if they fail to comply with constitutional protections or provide adequate support for reproductive healthcare.

Implications Across States – Employers operating in multiple states may face challenges balancing reproductive healthcare policies in states with differing laws. In Restrictive states employers may need to clarify what benefits are available when state laws conflict with federal mandates. In Protected states, enhanced benefits may need to be publicized to align with employee expectations and remain competitive.  Additionally, employers need to remain vigilant in ensuring their anti-discrimination policies and employee training efforts align with the requirements provided for in the Pregnancy Discrimination Act and Title VII of the Civil Rights Act of 1964, which prohibits discrimination against an employee for having or considering having an abortion.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions or for assistance with any updates your business may need.

The Supreme Court of the United States began its new term on October 7, 2024, with a growing docket filled with cases that employers need to keep track of as having potential implications on the workplace.  Currently, five cases present employment related issues that include wage and hour matters, ADA interplay with former employees, cannabis company liability in the employment arena, the application of federal civil rights law in conjunction with state administrative remedies, and the determination of “prevailing party” for attorney fee award provisions.

At the top of most employer’s list is E.M.D. Sales Inc. v. Carrera, wherein the Supreme Court will navigate disagreements between federal appeals court decisions involving matters of employee classification exemption status from minimum wage and overtime provisions of the Fair Labor Standards Act.  At issue is the question of how much proof employers need to offer in supporting efforts to properly classify employees when claims of misclassification and unpaid wages are made.  Specifically, the question before the court is whether an employer claiming an overtime exemption will have to show their supporting evaluation criteria by the higher standard of clear and convincing proof or meet the lesser criteria of a preponderance of the evidence standard.

The facts of E.M.D. Sales Inc. involve several employees of a grocery food distribution company who claim misclassification as outside sale exempt status and demanded overtime wages, for which they would not otherwise be eligible under the outside sales classification.  The Fourth Circuit Court of Appeals found in the employees’ favor, requiring the heightened burden of clear and convincing evidence as proof from their employers as to the outside sales classification.  This heightened standard deviates from the standard already set forth in six other Circuit Court of Appeals who all agree that the mere preponderance of the evidence is the standard burden for employers to meet.  While the outside sales exemption is at issue in this specific matter, the Court’s ruling will likely impact all 34 of exemptions under the FLSA.  Oral arguments are slated for November 5^th, and we will keep you updated as to the outcome.

Another case before the Court involves a former employee’s claim of violations of the American with Disability Act, when her employer changed health insurance coverage from free coverage until the age of 65 to only 24 months of coverage for employees that retired because of a qualifying disability.  In Stanley v. City of Sanford, FL, the 11^th Circuit ruled that the former firefighter, who retired due to a qualifying disability under the health insurance coverage carveout, could not bring a claim of discrimination in violation of the ADA, because the right to sue is limited to current employees and job applicants, not retirees, despite the change in benefits claimed to be owed to this former employee. The Supreme Court is set to make a determination on this distinction between current and former employee standing, this term.

A third matter before the Court highlights the evolving laws surrounding cannabis in the employment context.  In Medical Marijuana, Inc. v. Horn, a commercial truck driver, responsible for passing periodic drug screens, was terminated when he failed a drug screen due to the presence of illegal THC.  The driver claims that he was only aware of the presence of CBD, the generally legal non-psychoactive component in cannabis, and in an unprecedented move, sued the cannabis distributor under the Racketeer Influenced and Corrupt Organizations Act (RICO), claiming RICO violations and monetary damages for personal injuries.  The cannabis distributor argues for dismissal of the RICO claim asserting a products liability claim instead.  The Court is set to weigh in on this matter which will inevitably impact cannabis regulations in the workplace moving forward.

The fourth case for employers to keep an eye out on involves the question of whether employees need to exhaust all state administrative remedies prior to bringing a claim under federal civil rights laws.  In Williams v. Washington, Alabama workers who applied for unemployment insurance benefits during Covid-19 sued state government officials for violations of the Social Security Act of 1935, claiming that the state’s policies, practices, and procedures related to unemployment compensation applications violated federal civil rights laws under 42 U.S.C. Section 1983 and constitutional due process rights.  The Alabama Supreme Court held that state law requires the plaintiffs to first bring these types of claims to the state’s Department of Labor, further requiring plaintiffs to exhaust all administrative remedies prior to filing claims of federal civil rights violations.  At issue for the Supreme Court is whether or not these federal civil rights violation claims need to be heard through the state administrative remedies process prior to bringing a federal action.

The final matter currently on the Court’s docket, while not arising in an employment law context, will have possible implications on employment law claims that arise under assertions of civil rights violations and ultimately who shall be considered the “prevailing party” for purposes of awarding attorney fees.  Under the provisions of 42 U.S.C. Section 1988, a “prevailing party” in certain civil rights actions can recover their reasonable attorney fees.  In the matter of Lackey v. Stinnie, the Supreme Court will consider whether a party that prevails under a preliminary injunction without ultimately prevailing on the merits of the claim shall be considered a “prevailing party” for purposes of seeking a fee award.

As the new Supreme Court term is well underway, PrestigePEO is here to help and will be tracking and reporting on the outcome of the Court’s decisions, as they become available. If you have any questions, please contact your HRBP.

In recent years, a number of states have passed wage transparency legislation and soon, New Jersey is likely to become a part of this growing trend.  In September 2024, the New Jersey Legislature passed Senate Bill 2310, which if signed by the governor, will require employers to now provide specific compensation and benefits related information in both external and internal job postings as well as any transfer and promotional opportunities. The governor has 45 days, or until November 10, 2024, to sign this new legislation, which Governor Murphy is expected to do.  Once signed, the legislation will become effective seven months after the date of signing, approximately June 2025.

This new law will apply to all employers with 10 or more employees doing business in New Jersey, as well as those that either employ workers in New Jersey or accept job applications in New Jersey, regardless of where the employee or potential employee resides.

This new law will require employers to include in job postings, both internal and external, the exact wage, salary, or pay range for each advertised position. There must also be a general description of benefits and other compensation for which the employee will be eligible in the 12 months following the employment start date.  Important to note, the new legislation will also require employers to make “reasonable efforts” to notify current employees of promotion opportunities, within the impacted department prior to making any promotion decisions.  The law is silent as to what constitutes “reasonable efforts.”

Failure to comply with the Wage Transparency requirements may result in civil penalties of up to $300 for the initial violation and up to $600 for each subsequent violation, owed to the New Jersey Commissioner of Labor and Workforce Development.  We will continue to monitor this pending legislature and will provide updates as they become available.

PrestigePEO is here to help. If you have any questions concerning your compliance with New Jersey’s Wage Transparency Law, please contact your HRBP.

Safe Hotels Act

Two pioneering regulations are making waves in New York City.  The first of which is called the Safe Hotels Act, which has already passed City Council and is awaiting Mayor Adams’ signature.  This new law outlines a number of regulations aimed at the safety and cleanliness of New York City hotels.  Originating in efforts to address crime and human trafficking within the city, critics suggest that the regulations go beyond that which was initially intended, and instead place heavy restrictions on how hotels operate and appear to be encouraging union activity among employees.

The Safe Hotels Act is comprised of three basic requirements that include: human trafficking training for all employees, new safety standards that will be outlined below, and new requirements that all hotel operators obtain a license to operate from The Department of Consumer and Worker Protection (DCWP).

The safety standards require that:

• There is continuous coverage at the hotel front desk, including overnight shifts, by at least one employee who has undergone human trafficking training and can confirm the identity of all guests.
• The hotel is required to maintain safe conditions on the property for all guests and hotel workers, however the act does not define what safe conditions involve.
• The hotel is also required to maintain cleanliness of all guest rooms, sanitary facilities, and common areas, but again is unclear as to any specific standard for the cleanliness requirement.
• Guest requests for new towels and linens must be honored.
• All guest rooms must be cleaned, and trash removed daily, unless a guest proactively declines the hotel cleaning service. No additional fees may be required by the hotel for daily cleaning, nor can a hotel offer a discount for allowing guests to decline the daily cleaning.
• All employees who are required to enter occupied hotel rooms will be required to be provided a panic button.
• All hotels, except for those within one mile of either LaGuardia or John F. Kenndy airports, are prohibited from taking hotel reservations for less than four hours.

Furthermore, hotels will now be required to obtain a license to operate within the city, which will cost $350 and be valid for a period of two years.  There is very little information available as to what criteria will be used for the licensing process, but the act allows for the licensing requirement to be “satisfied by a collective bargaining agreement that expressly incorporates the requirements of” this Safe Hotels Act.  The act places further restrictions on the use of certain types of employees by limiting the use of subcontractors for hotels with 100 or more guest rooms and requiring larger hotels to directly employee all core employees, with limited exceptions.

While there is a vast amount of ambiguity surrounding this new law, as it awaits Mayor Adams decision, PrestigePEO is here to help and will continue to monitor and provide updates as they become available.

Time Off to Care for Pets

In a first of its kind, a bill recently proposed in the New York City Council would allow employees to take time off to care for their pets.  This proposed regulation would expand the provisions that currently exist under the City’s Earned Safe and Sick Time Act to include time off for pet-related medical care needs.

Under the existing Earned Safe and Sick Time Act, employees of larger companies employing 100 or more workers are provided up to 56 hours of paid leave per year, while employees at smaller companies are provided up to 40 hours of paid sick leave, for purposes of caring for themselves or an ill family member.  These proposed changes would now allow for employees to use this existing paid leave for the care of their pets, including diagnosing and treating illnesses as well as preventive care appointments.   If passed, this law would be a first of its kind and could very well become part of a nationwide trend towards acknowledging the role pets play in the lives of their humans and the positive mental health impacts associated with pet ownership.

PrestigePEO is here to help and will continue to monitor these proposed changes. If you have any questions, please contact your HRBP.

As employers wrap up the year and plan compensation strategies, an essential compliance update from the Department of Labor (DOL) is on the horizon. As a reminder, on January 1, 2025, the DOL will implement the second stage of its minimum wage increase and raise the salary thresholds for exempt employees under the Fair Labor Standards Act (FLSA).

In addition to the new threshold of $58,656 annually per year ($1,128 per week) for general white-collar exemptions, the threshold for highly compensated employees will also rise. Starting in 2025, employees earning over $151,164 annually may qualify as exempt if they meet a less stringent duties test under the FLSA. For employers, this presents an opportunity to reassess compensation for higher-earning employees, especially those currently exempt under the highly compensated category, and determine if their compensation or duties need adjustment to remain compliant.

Employers with exempt employees currently earning below these thresholds should prepare to either adjust salaries to meet the new standards or reclassify these roles as non-exempt. Reclassification will require tracking actual hours worked, given the FLSA’s overtime mandate of 1.5 times the regular pay rate for hours over 40 in a workweek.

The DOL’s new thresholds are subject to ongoing legal challenges, and there is a possibility of delay or adjustment. However, considering the anticipated effective date of January 1, proactive planning is recommended to manage these changes’ financial and operational impact. Evaluating whether current employees meet the updated standards will ensure compliance and minimize disruption as new wage regulations take effect.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

Starting January 1, 2025, Illinois will enforce new wage transparency and job opportunity notice requirements that will impact employers statewide. These requirements amend the Illinois Equal Pay Act to mandate that employers disclose salary ranges, benefits, and any additional compensation in all job postings and inform current employees about job openings. Noncompliance with these requirements could lead to substantial fines, making it essential for employers to prepare well in advance.

Under the new law, all job postings in Illinois, internal, external, or managed through third parties, must clearly show the wage or salary range, a general description of benefits, and any additional compensation. If the pay and benefits information is missing from a posting, employers must provide it to applicants before discussing compensation and upon request. This requirement applies to positions that are physically performed, at least in part, in Illinois and to remote roles filled by Illinois residents, even if the company is headquartered outside the state. It also applies to employees outside Illinois but reporting to an Illinois-based supervisor. If a posting omits this pay and benefits information, employers must provide it to applicants before discussing compensation and upon request.

Illinois employers must notify current employees of new job opportunities when the position is publicly posted. Though the law does not require the creation of new postings, it mandates that employers share pay and benefits information with candidates if a position is discussed. Additionally, employers must retain job posting details, including pay scale and benefits, for at least five years or until any investigation concludes.

The Illinois Department of Labor will impose a tiered penalty structure for violations, with no grace period to remedy the violation for third and subsequent offenses. The tiered penalty system calls for fines ranging from $250 to $2,500 per violation. A first offense allows a 14-day correction period, while a second offense allows seven days. However, third and subsequent offenses permit no cure period, leading to immediate penalties.

To prepare for the January 1 effective date, Illinois employers should review and update job postings to ensure compliance with the new transparency requirements. Training HR and hiring teams on these standards are crucial to prevent inadvertent violations. Establishing a systematic recordkeeping process will help ensure accurate documentation of pay scales, benefits, and job postings. Companies using third-party recruiters should communicate pay information requirements clearly to avoid compliance issues. Employers may also benefit from conducting a privileged pay audit with legal counsel to confirm adherence to state and federal equal pay laws. Adopting a consistent job posting format across locations for companies with multi-state operations can help streamline practices and promote transparency.

By preparing ahead of this January 2025 deadline, Illinois employers can strengthen their legal compliance, enhance hiring transparency, and foster fair pay practices within their organizations.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

California Governor Gavin Newsome recently signed a bill into law that will prohibit employers from conducting mandatory, employer-sponsored meetings that discuss religious and political matters, including discussions about union representation.  Under Senate Bill 399, or California Worker Freedom from Employer Intimidation Act, employers can now face civil penalties or civil action in California for failure to follow these new regulations correctly. Beginning January 1, 2025, the new law will ban employees from discharging, discriminating, retaliating, or taking any other adverse employment actions against employees who choose to decline to participate in or listen to employers’ communication related to political or religious topics.

According to the California Labor Code, section 1137:

• “Political matters” means matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization.
• “Religious matters” means matters relating to religious affiliation and practice and the decision to join or support any religious organization or association.

The Act may be enforced by private court action or by the California Labor Commissioner. In addition to damages and remedies, the statute specifies that an employer who violates this section will be subject to a civil penalty of five hundred dollars ($500) per employee for each violation.

What should employers do?

Employers should update employee handbooks and train supervisors on the framework strategies and responses that should be followed as related to these meetings. Employers should further communicate to employees that when a meeting is held where political or religious content is discussed, it is voluntary. The voluntary nature of the meetings should be clearly published to employees in writing.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business. If you have questions, please contact your HRBP for assistance.

As the California legislative session comes to close, Governor Gavin Newsome has approved several bills that were passed by the legislature.  Many of these new laws will become effective on January 1, 2025. In addition to the passed bills, there were some bills that were also vetoed as outlined below.

PASSED BILLS

1. Ban on Captive Audience Meetings
   Governor Newsome signed Senate Bill 399 into law that will prohibit employers from carrying out required meetings that discuss religious and political matters including conversations about union representation. The employer will be prohibited from discriminating against, terminating, retaliating, or otherwise taking any adverse employment action against the employees for refusal to attend. Employees are allowed a private cause of action for alleged violations as well as the recovery of punitive damages.  This law goes into effect on January 1, 2025.
2. Victims of Violence
   The Governor signed Assembly Bill 2499 into law which affords employees time off when they are affected by certain crimes or are victims of abuse, and also allow employees to take time off to assist family members who are victims of specified crimes. This law updates the existing law by expanding not only who is entitled to protections under the law, but also the reasons for necessitating use of the Victim-of-Violence leave. Enforcement of this law is will now by maintained by California’s Civil Rights Department and goes into effect on January 1, 2025.
3. Private Attorneys General Act (PAGA) Exemption Expanded
   Governor Gavin Newsome signed Assembly Bill 1034 into law that will ensure that unionized construction industry employers who meet specified criteria continue to be exempt from PAGA lawsuits for the next 14 years. The exemption applies to employers of unionized construction employees who pay workers at least 30% more than minimum wage, among other requirements, and when initially passed, was intended to be temporary, sunsetting on or before January 1, 2028.  The new law will go into effect on January 1, 2025, and extends the exemption period to January 1, 2038.
4. Employment Discrimination and Driver’s License Requirements
   Governor Gavin Newsome signed Senate Bill 1100 into law that will prohibit employers from informing job seekers they need to have a driver’s license for an open position unless the position satisfies a two prong test: (1) the employer reasonably expects driving to be one of the job functions, and (2) the employer believes that satisfying the job function using an alternative form of transportation would not be comparable in travel time or cost to their business.  The alternative forms of transportation may include options such as public transportation, taxi, carpooling, bicycling, or walking. This goes into effect on January 1, 2025.
5. Expanded Protections for Freelance Workers
   Governor Gavin Newsome signed Senate Bill 988 into law which will increase protections for Freelance Workers/Independent Contractors. Private employers who hire freelancers will be required to provide a written agreement identifying certain terms, that otherwise give freelance workers “basic worker protections” and indicate a deadline of when their compensation is due. These expanded protections go into effect on January 1, 2025.
6. Local Enforcement of Employment Discrimination Law Governor Newsome signed Senate Bill 1340 into law which allows local agencies to enforce both the state’s employment discrimination laws as well as local employment anti-discrimination laws that are more stringent than those of the state, when employees bring a right-to-sue from the Civil Rights Department (CRD). The new law will go into effect on January 1, 2025.
7. New Requirements for Employers Conducting Social Compliance Audits
   Governor Newsome signed Assembly Bill 3234 into law, which will require businesses to share results of voluntary social compliance audits and post a link of the finding on its website related to wage and hour requirements, health and safety regulations, and regulations related to child labor. While the decision whether to conduct a social compliance audit are voluntary, if conducted, businesses will now be required to report results by posting to a conspicuous link on their website.  The law will go into effect on January 1, 2025.

VETOED BILLS

1. SB 1047–Artificial Intelligence Safety bill
   Governor Gavin Newsom has vetoed Senate Bill 1047, that sought to add new requirements to developments of large AI models, which could impact resources used by employers. This bill was vetoed due to opposition from tech industry and policy makers.
2. SB 1022- Enforcement of Civil Rights
   Governor Gavin Newsom has vetoed Senate Bill 1022. This bill would have increased the statute of limitations for “group or class complaints” brought with the California Civil Rights Department to seven years. Governor Newsome had asked the lawmakers to propose a bill with a more reasonable period of time.

3. SB 1299- Farmer’s and Worker’s Compensation
   Governor Gavin Newsome has vetoed Senate Bill 1299. The proposed bill would create a “disputable presumption” that a heat-related injury that develops within a specified timeframe after an employee was working outdoors for an employer in the agriculture industry that fails to comply with heat illness prevention standards, as defined, arose out of and came in the course of employment.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business. If you have questions, please contact your HRBP for assistance.

Minimum Wage Increases

Minimum wage in Michigan will increase twice in 2025. On January 1, 2025, minimum wage will increase to $10.56 per hour for regular workers and shall also increase to $4.01 per hour for tipped workers. Then it will increase again on February 21, 2025, to $12.48 per hour for regular workers and $5.99 per hour for tipped workers. Michigan workers will then see yearly increases to minimum wage that will go into effect on February 21^st of the respective year. In 2026, the minimum wage for regular workers will increase to $13.29 per hour and for tipped workers will increase to $7.97 per hour. In 2027, the minimum wage for regular workers will increase to $14.16 per hour and for tipped workers will increase to $9.91 per hour. In 2028, the minimum wage for regular workers will increase to $14.97 per hour and for tipped workers to $11.98 per hour. Michigan has not yet announced specific increases past February 2028, but as of 2029, minimum wage in the state will increase based on inflation on a yearly basis.

Changes to Sick Leave – Earned Sick Time Act

The Earned Sick Time Act (“ESTA”) was originally passed in 2018 but was quickly amended and replaced by Paid Medical Leave Act (“PMLA”) in 2019. Recently, the Michigan Supreme Court ruled on the case Mothering Justice v. Attorney General, which effectively reinstated the ESTA. The ESTA will go into effect on February 21, 2025, giving employers adequate time to review their current policies and procedures and make updates where necessary.

The ESTA expands upon the scope of the PMLA as it is applicable to all employers, except for the United States Government, that have one or more employees. However, the ESTA does distinguish between small and large businesses. Under the ESTA, a small business is defined as one that has less than 10 employees – for the purposes of the act an employee is an individual who is on the employer’s payroll and considers those who are part-time, full-time, or temporary as employees for purposes of the statute. A business does not qualify as a small business under the ESTA if it has over 10 employees during 20 or more weeks of the prior or current calendar year. While the ESTA does not explicitly state if the employee count is for employees based only in Michigan or if it is a nationwide employee count, guidance provided by the state signals that it is a nationwide employee count. The Michigan Department of Labor and Economic Opportunity has provided some further guidance on the qualification of employees who working remotely in Michigan for an employer based outside of the state with no other ties to Michigan beyond the remote worker(s); such remote workers are considered to be covered by the ESTA.

The definition of “family members” is expanded under the ESTA compared to how it was previously defined under the PMLA. This expansion now includes domestic partners, which is defined as “an adult in a committed relationship with another adult” and it includes both same-sex and different sex relationships. It also includes other individuals not already classified that fall into the definition of individuals who are “related by blood or affinity whose close association with the employee is the equivalent of a family relationship.”

The ESTA has a posting requirement for employers to notify employees of their rights under the ESTA, which can be found here.

Accrual of Earned Sick Time

Small Businesses:

• For every 30-hours worked, employees accrue 1 hour of earned sick time.
• Employees are entitled to use up to 40-hours of paid earned sick time a year.
• Should an employee accrue more than 40-hours a year, the employee is entitled to 32 hours of unpaid earned sick time a year.
• Employers may choose to allow higher limits for paid earned sick time and unpaid earned sick time than afforded to employees under the ESTA.
• Accrued but unused earned sick time balances carry over each year.
• It is not required by the ESTA to pay out earned sick time balances accrued pursuant to the ESTA that are unused at the time an employee’s employment is terminated.

Businesses with 10 or More Employees:

• For every 30-hours worked, employees accrue 1 hour of earned sick time.
• Employees are entitled to use up to 72-hours of paid earned sick time a year.
• Employers may choose to allow higher limits for paid earned sick time than afforded to employees under the ESTA.
• Accrued but unused earned sick time balances carry over each year.
• It is not required by the ESTA to pay out earned sick time balances accrued pursuant to the ESTA that are unused at the time an employee’s employment is terminated.

Permitted Reasons to for Employee’s to use Earned Sick Time

The ESTA outlines five (5) categories of permitted reasons for earned sick time use. Those reasons are as follows:

• An employee’s own:
  • illness (mental or physical), health condition, or injury;
  • medical diagnosis, treatment, or care of that illness, injury, or health condition; or
  • preventative medical care.
• An employee’s family member’s:
  • illness (mental or physical), health condition, or injury;
  • medical diagnosis, treatment, or care of that illness, injury, or health condition; or
  • preventative medical care.
• If an employee or their family member is:
  • a victim of sexual assault or domestic violence;
  • medical care, psychological, or other available counseling for such physical or psychological or other related disability;
  • to relocate due to sexual assault or domestic violence;
  • to attain services from a victim services organization;
  • to attain legal services; or
  • to participate in criminal or civil proceedings related to the or stemming from the sexual assault or domestic violence.
• An employee’s meeting at a child’s school or other place of childcare that pertains to the health or disability of the child, or the effects of sexual assault or domestic violence on the child.
• Public Health Emergency
  • When there is a closure of an employee’s place of business due to an order of a public official because of a public health emergency;
  • When there is a closure of an employee’s child’s school or place of childcare is closed due to an order of a public official because of a public health emergency and the employee needs to care for the child;
  • When a health care provider or health authorities determine that an employee or an employee’s family member’s presence would jeopardize the health of others based on that person’s exposure to a communicable disease – the employee or their family member do not need to have contracted it themselves.

Employee Use of Earned Sick Time

• If an employee’s leave is foreseeable, employers may require the employee to provide advance notice, up to seven (7) days prior notice.
• If an employee’s leave is not foreseeable, employers may only require their employees to provide notice as soon as practicable under the specific set of circumstances surrounding the employee’s need for leave.
• Employers are allowed to request “reasonable documentation” should an employee use earned sick time for more than three (3) consecutive days. If such documentation is required by an employer, the employer is responsible for the out-of-pocket expenses incurred by the employee to obtain the requisite documentation.

Next Steps:

PrestigePEO is here to help. Employers should review their current leave policies and update them where necessary prior to February 21, 2025.  Your HR Business Partner will be happy to assist you with any updates your business may need.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

The Puerto Rico Labor Secretary recently issued updated guidance on applying overtime regulations under the Fair Labor Standards Act (FLSA) and Puerto Rico’s labor laws. This interpretation aligns more closely with federal standards while keeping a distinctly local perspective and introduces important nuances affecting how businesses calculate and pay overtime, especially for non-exempt employees.

There are several key changes in Puerto Rico’s new overtime interpretation. One of the most notable updates is the requirement to include non-discretionary bonuses, commissions, and other incentive payments when calculating an employee’s regular overtime pay rate. This means that overtime pay must reflect these additional payments for future and past work. The guidance also clarified that a workweek consists of 40 hours, regardless of scheduling variations, and overtime must be paid for any hours worked beyond this, even for employees with fluctuating schedules. Additionally, the new interpretation adjusts the criteria for exempt and non-exempt classifications, which may require businesses to reclassify certain positions based on job duties or compensation levels. For employees on non-standard or irregular schedules, the Secretary emphasized stricter adherence to overtime pay calculations, ensuring that all hours over 40 in a workweek are compensated appropriately, even for salaried employees.

Considering these changes, businesses in Puerto Rico should immediately review their overtime policies, recalculate past overtime to include non-discretionary payments, audit employee classifications, and update payroll systems. With more employees qualifying for overtime pay, businesses may face increased labor costs. They can prepare for this potential impact by conservatively reviewing budgets and forecasting labor expenses. Puerto Rico employers should also review their preexisting overtime policies and other practices to ensure compliance with the final New Overtime Interpretation regulations.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations and related litigation. If you have questions, please get in touch with your HRBP for assistance.

On September 13, 2024, the Massachusetts Supreme Judicial Court (the “SJC”), the highest state court in Massachusetts, issued its ruling in the case Bodge v. Commonwealth, SJC-13567. The case focused on employees exercising their right to take leave under the Paid Family and Medical Leave Act (“PFML”) and questioned if an employee is entitled to accrue benefits while on leave.  The SJC ruled that the statute governing PFML does not grant employees benefit accrual rights while taking leave under PFML. It does, however, require that upon return from their leave, the employee does not incur a loss of benefits accrued before their leave began. Employees are still entitled to maintain their health insurance while out on PFML but do not continue to accrue benefits such as vacation time, sick time, PTO, or other benefits linked to length of service.

Massachusetts Employers should review their current PFML policies and update them, if necessary, to reflect the recent SJC ruling. It is also important to clearly define employee rights when an employee requests to take leave under PFML to ensure that, in light of this SJC ruling, there is no ambiguity over what an employee is entitled to during their leave.

PrestigePEO is here to help. If you need assistance updating your PFML policy or have additional questions, please contact your HR Business Partner.

As businesses and employees recover from Hurricane Helene’s impacts, employers must prioritize safety and compliance with relevant regulations. The Occupational Safety and Health Act (OSH Act) and the Occupational Safety and Health Administration (OSHA) set forth essential guidelines that require employers to create a safe working environment, particularly around natural disasters like hurricanes.

The OSH Act’s General Duty Clause mandates that employers ensure a workplace free from hazards that could lead to severe injury or death, including those associated with hurricanes. Employers must develop Emergency Action Plans (EAPs) that detail evacuation routes, emergency contacts, and expected employee behaviors during emergencies. Comprehensive training on these protocols is necessary to prepare employees for potential disasters.

In the aftermath of a hurricane, employers must address any hazards that may have emerged, such as structural damage or hazardous spills. Providing necessary personal protective equipment (PPE) for employees involved in recovery and cleanup efforts is a requirement. Before reopening the workplace, a thorough hazard assessment should be conducted to guarantee safety.

Flexibility during the recovery process is essential. Employers may want to consider implementing remote work options, adjusting schedules to accommodate travel disruptions, and allowing leave for employees dealing with personal challenges due to the hurricane’s effects. When safety cannot be guaranteed, a temporary suspension of operations may be warranted.

Proactive planning is the cornerstone of effective disaster recovery. Employers should regularly review and enhance their disaster preparedness and response strategies, as this planning can minimize operational disruptions and safeguard the well-being of employees. By adopting a forward-thinking approach, businesses can strengthen their resilience against future natural disasters and ensure a smoother recovery process.

PrestigePEO is dedicated to supporting your business through these challenging times and can assist you in ensuring your workplace is ready for future challenges.

With the recent legalization of recreational cannabis in Ohio as of August 6, 2024, employers are now facing new challenges in managing workplace policies around cannabis use. While Ohio residents over 21 can now purchase and possess up to 2.5 ounces of cannabis, employers retain certain rights to maintain a drug-free workplace and take corrective action if cannabis use affects performance or safety.

Employers are not required to permit or accommodate the use of cannabis, even if it’s consumed legally outside of work hours. Employees who are impaired at work due to cannabis can still be disciplined, and you are within your rights to refuse to hire, terminate, or otherwise take corrective action against an employee for using, possessing, or distributing cannabis in the workplace. Additionally, employers may implement or continue drug testing policies, including pre-employment, post-accident, or random testing, depending on business needs. If an employer terminates an employee for cannabis use that violates company policy, it will be considered “just cause.”

Reviewing policies and protocols regarding cannabis is advisable, especially for employees in safety-sensitive positions like healthcare, construction, or trucking. Employers may update employee handbooks and other relevant policies to clearly state that while cannabis is legal in Ohio, it is not allowed in the workplace. Make sure employees understand that using cannabis during lunch breaks or other work hours is prohibited, and clearly outline the consequences of violating this policy. Employers should consider whether they want to introduce a last-chance program for employees who test positive or offer access to substance abuse support for those who need it.

It’s essential to train managers and HR staff to handle discussions around both medical and recreational cannabis use and to ensure they are familiar with company policies, testing protocols, and potential disciplinary actions. Staff members should be equipped to recognize signs of impairment and know how to address these situations appropriately. Finally, a company-wide meeting should be planned to update all employees on the new cannabis policies and how they affect the workplace.

By taking these steps, you can ensure your business is prepared for Ohio’s changing legal landscape around cannabis use while maintaining a safe and productive work environment.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations and related litigation. If you have questions, please get in touch with your HRBP for assistance.

As California’s upcoming election nears, employers should be aware of an important compliance requirement regarding employee voting rights. Under Elections Code Section 14001, California law mandates that employers post a notice informing employees of their rights, including taking up to two hours of paid time off to vote in statewide elections. The notice must be displayed by October 26, 2024, at least ten days before the statewide election on November 5.

The notice should be placed in a visible location accessible to all employees, such as break rooms, entryways, or online employee portals. The California Secretary of State’s office provides a Sample Notice. Employers can request posters from the Elections Division.

If an employee does not have enough time outside of working hours to vote, they are entitled to receive up to two hours of paid time off to do so. Polls will be open from 7 AM to 8 PM on Election Day, and employers may require that this time off be taken at the beginning or end of the employee’s shift to minimize work disruption. Employees should provide advance notice if they need to take time off for voting, and any additional time beyond two hours may be unpaid.

California employers must meet this posting requirement by October 26 to ensure compliance with state law. Employers are also encouraged to remind employees about the company’s policy on time off for voting, ensuring everyone knows their rights and responsibilities as Election Day approaches. By taking these steps, employers can help foster a smooth voting process while maintaining legal compliance.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

Effective March 4, 2025, the Retail Worker Safety Act will require New York retail employers to implement new measures to prevent workplace violence. Employers with ten or more employees must develop a written workplace violence prevention policy and provide annual employee training.

The New York Department of Labor will provide a template policy, but employers can create policies if they meet or exceed the minimum standards. The policy must include methods to report and prevent incidents, with attention to common risk factors such as late-night shifts, working alone, and handling money.

Employers must also provide training to all employees upon hire and annually thereafter. The Department of Labor will develop an interactive training program covering de-escalation techniques, emergency procedures, active shooter drills, and panic buttons.

Larger retailers with 500 or more employees nationwide must install panic buttons by January 1, 2027. These buttons must alert 911 and share the employee’s location with local law enforcement.

With similar laws in California, retailers should be prepared for more states to follow suit in strengthening workplace violence prevention measures. Now is the time to assess workplace risks and update safety procedures to stay ahead of these new requirements.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

On July 15, 2024, California Governor Newsom signed Assembly Bill (AB) 2299, which requires the California Labor Commissioner to develop a model notice of employees’ rights under existing whistleblower laws to display in the workplace.

Under current California law, employers must post a list of employees’ rights and responsibilities under the whistleblower laws. However, the current law does not require specific content outlining the employees’ rights and responsibilities. The Labor Commissioner had previously issued a sample notice that did not guarantee compliance with the statutory requirements of the workplace notice.

The new model notice should be available on the California Labor Commissioner’s website at the end of the year. It can be posted beginning January 1, 2025, and will be deemed in compliance with the new requirements regarding employees’ rights and responsibilities under the existing whistleblower laws.

We will continue to monitor the Labor Commissioner website for the posting of the Model Notice and will keep you informed when the notice becomes available.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor and provide updates as additional information on these changes becomes available.

In a major legal development, the Federal Trade Commission’s (FTC) controversial nationwide ban on non-compete agreements was struck down by a federal court in Texas. The ruling was handed down just weeks before the ban was set to take effect on September 4, 2024, halting enforcement of the non-compete ban across the nation.

As anticipated, the final ruling arrived before August 30, with the court declaring the FTC’s non-compete rule an invalid exercise of the agency’s power. The U.S. District Court for the Northern District of Texas ruled that the FTC exceeded its authority by attempting to implement the ban, stating that Congress only empowered the agency to create procedural, not substantive rules, and that that the rule itself was “arbitrary and capricious.”

Consequently, the ruling blocks the ban from taking effect nationwide, allowing businesses to continue using and enforcing non-compete agreements as permitted under state law to safeguard their key relationships and confidential information.

PrestigePEO will keep you updated with further analysis as the situation evolves.

Recently, New York State’s legislature passed and Governor Hochul signed into law the 9/11 Notice Act, the first law of its kind in the United States.

The act will help hundreds of thousands of people who worked in Lower Manhattan on and after 9/11 and were exposed to Ground Zero toxins to access free health care and compensation for 9/11-related cancers and respiratory illness, by requiring businesses and institutions to inform eligible workers of their rights.

Q: What is the 9/11 Notice Act?

A: The act requires businesses and institutions that had people return to the Ground Zero exposure zones (south of Houston Street for the World Trade Center (WTC) Health Program and south of Canal Street for the 9/11 Victim Compensation Fund (VCF) between 9/11/2001 and 5/31/2002 to notify them about their eligibility for the health program and the compensation fund.

The act was passed unanimously in the New York State Legislature and signed into law by Governor Kathy Hochul on September 11, 2023 – the 22nd anniversary of the terrorist attacks.

New York State’s Department of Labor and Department of Economic Development will coordinate to develop a plan to provide adequate notice of the benefits available.

Q: Why is the 9/11 Notice Act important?

A: The act will help to inform many of the 400,000 survivors – people who worked in Lower Manhattan on or after 9/11 – about their right to access the World Trade Center (WTC) Health Program and the 9/11 Victim Compensation Fund (VCF).

All of the survivors have an increased risk of developing 69 different types of cancer and many severe respiratory illnesses.

Presently, fewer than 10% of 9/11 survivors are enrolled in the health program or registered with the compensation fund – compared with 85% of 9/11 responders.

Many of the 300,000 downtown workers have since moved away from the New York City area and are unaware of their right to access the WTC Health Program and the 9/11 VCF.

Q: Where do I get more information about the 9/11 Notice Act?

To read the text of the 9/11 Notice Act, visit:

https://www.nysenate.gov/legislation/bills/2023/S2946/amendment/B

For up-to-date details about the 9/11 Notice Act or if you need a referral to a firm handling 9/11 Notice Act compliance or cases, please contact Prestige’s Compliance Department. The final regulations that define the responsibilities of businesses and institutions are expected to be released in the coming months.

Americans with Disabilities Act (ADA) of 1990 is a federal law designed to safeguard individuals with disabilities from discrimination and ensure equal opportunities across various areas. This law encompasses five titles addressing employment, public services, public accommodations, telecommunications, and miscellaneous provisions. This legislation is a significant commitment to civil rights and equality, aimed at reducing barriers and promoting accessibility. The EEOC is a U.S. Federal agency which is also committed to ensuring and enforcing laws and regulations that prohibit workplace discrimination. Below we have provided a detailed look of the ADA’s latest news on disability discrimination.

The Sixth Circuit of Appeals ruled recently that the ADA does not cover medical conditions that do not substantially limit a major life activity. The decision was reached by a split three-judge panel which concluded that the severity of a Plaintiff’s asthma in the Plaintiff’s case did not meet the ADA’s specifications that it limit a major life activity. This ruling emphasizes the interpretation of what constitutes a protected disability, which can vary depending on the facts of each case. The ADA states that a disability is a physical or mental impairment that can limit one or more major life activities. This recent ruling may not universally apply to all cases involving medical conditions. Other courts or future rulings in other circuits can find a determination based on a range of factors in the law and in specific circumstances. What this ruling does is remind employers and employees that not all medical conditions qualify as an ADA protected medical condition and employers need to carefully evaluate each condition in which an employee may need an accommodation.

What Should Employers Do Next?

Employers should carefully review any requests for an accommodation to make sure that the medical condition presented is covered by the ADA.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations and related litigation. If you have questions, please contact your HRBP for assistance.

We are currently watching several important bills outlined below that have been proposed to Governor Newsome on August 31, 2024. We will continue to monitor these bills and will let you know if any of them get passed.

• SB 1047–Artificial Intelligence Safety bill – This bill seeks to add new requirements to developments of large AI models.
• SB 399–Ban on Captive Audience Meetings – This bill would limit an employer’s ability to communicate with employees regarding political or religious matter during mandatory meetings.
• AB 2499–Victims of Violence– The bill proposes an expansion to the definition of “family member” who may be a victim of crime. It will prohibit an employer from discharging or in any other discriminating manner against an employee because of the employee’s status as a victim of crime or abuse or for taking time off for specified purposes.
• SB 1100- Employment Discrimination and Driver’s License – This bill would prohibit employers from advertising positions that require driver’s license.
• AB 3232- Social Compliance Audits -This bill requires to post a link to a report on their website detailing the finding of social compliance audits related to child labor compliance.
• SB 988 -Freelance Workers – This bill would require employers to provide an agreement for compensation requirements to freelance workers, which may also be independent contractors.
• SB 1022- Enforcement of Civil Rights – This bill will increase the statute of limitations for “group or class complaints” brought with California Civil Rights Department to seven years.
• SB 1299- Farmworkers and Workers’ Compensation – The existing law establishes workers’ compensation to compensate employees for injuries sustained in the course of employment. The proposed bill would create a “disputable presumption that a heat-related injury that develops within a specified timeframe after working outdoors for an employer in the agriculture industry that fails to comply with heat illness prevention standards, as defined, arose out of and came in the course of employment.  The bill will require the appeals board to find in favor of the employee if the employer fails to rebut the presumption”.  The bill would specify “that compensation awarded for heat-related injury to farmworkers is to include, among other things, medical treatment and disability”. (An act to amend Section 3212.81 to, the Labor Code, relating to workers’ compensation)

• SB 1340– Local Enforcement of Employment Discrimination Law -This bill proposed will prohibit discrimination in employment and will authorize local jurisdictions to enforce local employment discrimination laws that less stringent than the state law.
• AB 1034 Labor Code Private Attorneys General Act of 2004– Under the current PAGA exemption, this bill will extend coverage of Collective Bargaining Agreement for construction employers until January 1, 2038. The current Collective Bargaining Agreements are due to expire on January 1, 2025.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these pending regulations. If you have questions, please contact your HRBP for assistance.

On July 31, 2024, Massachusetts Governor Maura Healey signed An Act Relative to Salary Range Transparency (Bill H.4890). This new law sets out the requirements for covered employers in the Commonwealth as it relates to incorporating pay ranges in job postings, effective July 31, 2025. Additionally, the law also sets out new EEO reporting and pay data reporting requirements for certain employers, with the first round of reporting due to the Massachusetts Department of Labor by February 1, 2025.

Massachusetts Pay Transparency

Definitions[1]:

• “Covered Employer” – Massachusetts employers with twenty-five (25) or more employees in the Commonwealth.
• “Pay Range” – the hourly wage range or annual salary range the employer expects to pay for the position at the time it is posted.
• “Posting” – job advertisements or job postings intended to recruit applicants for a specific position and includes what is posted by the employer or on behalf of the employer.

What is Required of Employers?

• Covered Employers and/or their agents, must include the pay range of a position in job postings if the job could be completed in Massachusetts.
• Upon request, covered employers, and/or their agents, are to provide the pay range for a position to an existing employee who is offered a new position within the company that has different job responsibilities; to an existing employee who is receiving a promotion; or to an existing employee who is to be transferred.
• Upon request, covered employers, and/or their agents, shall also provide the pay ranges for a specific position to an employee currently holding the position or to an applicant to the position.

What happens if Employers do not comply with the new law?

• First Violation – Employer will be issued a warning
• Second Violation – Employer will be fined up to $500
• Third Violation – Employer will be fined up to $1,000
• Fourth Violation (& additional violations) – Employer will be fined between $7,500 to $25,000

Retaliation is prohibited by Employers:

• This new law makes it unlawful for an employer to retaliate against an applicant or employee who has enforced their rights under this new law.

Massachusetts EEO and Pay Data Reporting

Who is required to Report?

• Private employers with 100 or more employees within Massachusetts during the calendar year preceding the reporting deadline and who are subject to EEO-1 reporting.

When and What are Employers required to report?

• Employers who qualify are annually required to submit an EEO data report to the Secretary of the Commonwealth by February 1^st. The EEO data report includes aggregate wage data categorized by job category, ethnicity, race, and sex. This data will be shared with the Massachusetts Department of Labor but it has been determined that the data provided pursuant to this new EEO reporting law will not be defined as a public record for the purposes of the Massachusetts Public Records Law.

PrestigePEO is here to help and will continue to monitor for any additional guidance provided by the Commonwealth of Massachusetts as we draw nearer to the effective dates.

[1] https://www.mass.gov/doc/h4890-signing/download

As a follow up to our Insight article related to the Private Attorneys General Act (PAGA), a California Supreme Court has recently come out with an important decision in Turrieta v. Lyft, Inc., ruling in favor of California employers.  The Court has decided that Plaintiffs do not have their right to intervene in the ongoing PAGA litigation action of another Plaintiff.  Additionally, the Court ruled that Plaintiffs will not be able to “assert overlapping claims, object to proposed settlement, or move to vacate judgment in that action.” The opinion of the Court can be found here.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these pending regulations. If you have questions, please contact your HRBP for assistance.

A July 31, 2024, Michigan State Supreme Court ruling on pending litigation involving the Michigan Earned Sick Time Act (ESTA) has dramatically changed employer obligations that will become effective on February 21, 2025.   The lengthy litigation history stems from a 2018 voter initiative involving sick leave that although securing enough voter signatures to go on the ballot for voter approval, was instead adopted by Michigan lawmakers.  Once adopted, lawmakers significantly changed the proposed sick leave initiative and within the same 2018 legislative session, revamped and renamed it as the Paid Medical Leave Act (PMLA).  This “adopt and amend” process, which has endured protracted litigation, resulted in the Supreme Court’s ultimate ruling that it was unconstitutional.  Accordingly, the court found that Michigan lawmakers violated “the people’s initiative rights,” resulting in reversion to the original ESTA proposal, effective February 21, 2025.

The Earned Sick Time Act will now require employers to provide, in some instances, more generous sick leave than the current PMLA.  As of February 21, 2025, Michigan employers, with one or more employees will be required to provide one hour of paid sick leave for every 30 hours worked, up to 72 hours a year. These provisions apply to salaried and hourly workers.  For employers with 10 or fewer employees, employees will be permitted to accrue one hour for every 30 hours worked, up to 40 hours, of PAID sick leave per year and additional 32 hours of UNPAID sick time, as it is accrued for a total of 72 hours.  For employers with more than 10 employees, workers will be allowed at least 72 hours of PAID sick time per year, to the extent it is accrued at the rate of one hour for every 30 hours worked.

Accrual will begin on February 21, 2025, or the first day of employment, whichever is later.  The benefit year will run a consecutive twelve-month period as outlined by the employer. Unused, earned sick time will carryover from benefit year to benefit year, but the employer may restrict usage to the annual 72 hours of sick time in the benefit year.  The ESTA also provides employees and former employees a private cause of action for damages caused by any violations. Liquidated damages, back pay, reinstatement, and attorney’s fees may also be applicable.

This Michigan Supreme Court ruling also impacts future minimum wage requirements and the tipped hourly wage; however, details regarding these requirements have not yet been finalized.

PrestigePEO is here to help and will continue to monitor and provide updates as additional information on these changes become available.

As the dog days of summer settle upon us, rule makers at both the federal and state levels have been busy crafting new heat illness standards for both indoor and outdoor work areas.

California

In California, the California Occupational Safety and Health Standards Board (Cal OSHA) voted to adopt the country’s second ever indoor heat standard. The new rule focuses on all indoor work areas where the indoor temperatures reach 82 degrees or higher, placing the burden of compliance mainly on employers.  The new rule was poised to become effective on August 1, 2024, but in a surprising change of events, the new rule took effect early on July 23, 2024.

All California employers with indoor work areas that reach 82 degrees or higher are now required to create a written heat illness prevention plan. This written plan must be specific and customized to the employer’s workplace and include a process in which employees can access drinking water, cool-down areas, areas to adjust to the heat, procedures for measuring the temperature and heat index, and emergency response measures.

The regulations surrounding drinking water include the following: drinking water must be fresh, pure, suitably cool, and free of charge. The location of the water must be “as close as practicable” to the work areas and located in the indoor cool down areas. If no running water is available, employers must provide each employee with one quart of drinking water per hour.

Employers must also provide all California employees access to cool-down areas that are maintained below 82 degrees and blocked from direct sunlight for recovery periods and meal and rest breaks. Rule makers emphasize the importance of preventative cool-down rest periods by requiring employers to pay daily premium pay when employees are not taking or permitted to take necessary recovery periods.

Employees recently assigned to high heat conditions or locations must be monitored by their employers for signs of heat stress for the first 14 days of work in these conditions, as well as those employees working during a heat wave. Furthermore, employers must train non-supervisory and supervisory employees on the risks of heat illness in the workplace, including both environmental and personal risk factors for heat illness as well as the employer’s procedures for complying with the indoor heat illness prevention regulation.

California has also instituted additional requirements when the temperature or heat index reaches 87 degrees and requires employers to measure and record the temperature and heat index when it is first “reasonable to suspect” that it has either reached 87 degrees or 82 degrees with employees wearing heat restrictive clothing or working in a high radiant heat area.  Actively involving employees and their union representatives in the planning and implementation process of the heat illness prevention plan is also required. Exceptions to these new regulations include brief indoor work location exposure that last for 15 minutes or less in any one-hour period or to situations where the employee is teleworking in a location of the employee’s choice and in emergency operations directly involving the protection of life or property.

Nevada

California is not the only state to consider heat related illness protection standards for workers. Nevada Occupational Safety and Health Administration (Nevada OSHA) may soon require employers to safeguard employees exposed to heat illness, from various symptoms including heat cramps, heat rash, heat exhaustion, fainting, and heat stroke. The proposed new regulations are only in draft form but have been sent to state lawmakers for approval and are geared towards a Summer 2025 effective date. Unlike the California regulation, Nevada is considering standards for employees that may be exposed to heat illness both indoors and outdoors. These new regulations would cover all employees including those in private business as well as government workers.  Nevada will continue to follow the federal OSHA guidelines under the National Emphasis Program (NEP) for outdoor and indoor heat-related hazards, until April 2025 unless it is canceled, modified, or a state-specific heat illness regulation such as the above is adopted. PrestigePEO will continue to monitor the proposed regulations and provide updates as they become available.

Federal OSHA

At the federal level, the Occupational Safety and Health Administration (OSHA) has also made significant strides toward implementing nationwide heat stress standards. OSHA has proposed regulations aimed at protecting workers from extreme heat both indoors and outdoors. Now that the new rule has been proposed, the months-long administrative process will begin and includes seeking input from both stakeholders and the public on the various regulations. While the public awaits the final determination on the proposed regulations, it is important to note that OSHA currently monitors and enforces heat safety standards in all workplace settings through the General Duty Clause, under the OSH Act of 1970, which requires all employers to provide a place of employment free from recognized hazards which may cause or are likely to cause death or serious physical harm to employees.

The proposed new regulations will apply to all employers engaged in both indoor and outdoor work in what is considered general industry, as well as construction, maritime industries, and agricultural industries where federal OSHA has jurisdiction. Notable, the new rule will not apply to employees engaged in sedentary work, or work that is indoors and generally in an environment that is routinely below 80 degrees, nor will it apply to remote workers or any government employees, as OSHA regulations do not cover public employers.

This new rule will require employers to comply with several factors targeted towards employee safety when the hazards of excessive heat are potentially present. These include requiring employers to identify a heat safety coordinator within the organization and identify the actual heat hazards that may be present both indoors and outdoors. Employers must conduct regular heat risk assessments and monitor workplace temperature. Preventative measures are also a significant component to this new proposal and will require employers to provide workers with accessible drinking water at all times. Regular rest breaks in cool and shaded areas will also be required, as will heat safety training and providing employees with acclimatization programs. There are additional emergency planning and response requirements and recordkeeping and reporting requirements.

As with the proposed new regulations in Nevada, PrestigePEO will continue to monitor the federal OSHA regulations and provide updates as they become available. Pending any dynamic shift in the administrative process as governed by recent Supreme Court rulings or political influence, these new regulations are expected to take place in the first half of 2025.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations. If you have questions, please contact your HRBP for assistance.

A recent decision by the Eleventh United States Circuit Court of Appeals may have implications on employers across the country, particularly those in the Eleventh Circuit states of Georgia, Florida, and Alabama.  This recent June 2024 court decision involved federal wage and hour violations and the court’s ruling that a mid-level manager could be held individually liable for these violations.

While the facts of this case were unique, involving a hotel establishment operated by an owner and his son, the key takeaways from the ruling are universally applicable to any management structure.  In this case, a front desk clerk worked for a number of hotels across Alabama, which were all operated by the same owner.  The clerk worked for the operation for approximately 10 years, averaging 62 hours per week and was paid monthly.  A part of his compensation was onsite lodging at the hotel.  The clerk eventually sued the company for wage and hour violations, alleging that he was not paid the federal minimum wage or required overtime premiums, pursuant to the Fair Labor Standards Act (FLSA).

The FLSA grants employees a private cause of action against employers for these types of wage and hour violations.  Furthermore, the FLSA broadly defines the term “employer” as “any person acting directly or indirectly in the interest of an employer in relation to an employee.”  The hotel clerk sued the company as well as the owner and his son for these violations.  The son argued that he was not in fact an “employer” for three reasons: he was not an owner, did not have any control or decision-making authority regarding the hotel clerk’s wages or compensation, and did not exercise control over the finances of the hotel.

The court agreed with the hotel clerk, finding wage and hour violations and holding the hotel owner and his son individually liable, finding that they both met the definition of an “employer.” The court went on to find that the details of the son’s responsibilities did rise to the level of employer status even though he was not an owner or corporate officer.  Rather, the son was found to have control over significant aspects of the company’s day to day functions, even as a mid-level manager.

Essential to understand from this ruling is that the court found that individual liability is not limited to owners, executives, or just upper management, but extends to any position that exercises some direct responsibility for the supervision of other employees or control over significant aspects of the day-to-day functions or financial matters.  This could include having influence over other employee’s salaries, controlling budgetary aspects of the company, or overseeing routine business operations.  The court noted that the hotel owner and his son shared a unique relationship, the son in this matter was “not in the same position as the average middle manager,” and that the son’s control was “both substantial and related to the company’s obligations” under the Fair Labor Standards Act.

All employers need to understand that supervisors and mid-level managers can be held individually liable for wage and hour violations, depending on their involvement in the operations of the business, and steps should be taken to ensure compliance with all FLSA regulations, to help reduce the risk of their management staff being held personally liable.  Employers should educate their managers on the importance of following all required wage and hour laws.  Predicating this education based on potential liability would generate additional support for compliance from their management teams.  Employers should also work to encourage timely reporting of any discrepancies in paychecks from all employees and have steps in place to proactively address wage and hour concerns.  With proper compliance procedures in place, employers could work to avoid allowing complaints to go unchecked or grow into more significant problems. Finally, all employers are encouraged to review pay practices regularly to ensure compliance with all wage and hour regulations.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business.  If you have questions about the FLSA or any other wage and hour regulations, please contact your HRBP for assistance.

Starting September 4, 2024, the Federal Trade Commission (FTC) will implement a nationwide ban on non-compete agreements. This change prohibits post-employment non-compete clauses and agreements between employers and their workers. Earlier this year, on April 23, 2024, the FTC announced a Non-Compete Clause Rule which bans most agreements that prevent employees from working for competitors or starting a competing business after leaving their current job.

The ban has encountered legal challenges at the state level, creating a complex legal landscape for businesses to navigate. In a significant development, a federal judge in Pennsylvania recently issued a ruling that upheld the FTC’s authority, ruling in favor of the non-compete ban and rejecting all the employer’s arguments against it. This decision conflicts with a recent Texas court ruling which found the FTC exceeded its authority with implementing the ban.

The interaction between the federal ban and state court rulings presents a critical challenge. While the FTC’s regulation is federal, state-level decisions could influence its enforcement and interpretation. Businesses must stay informed about federal guidelines and relevant state court decisions to ensure compliance.

Existing non-competes for most U.S. workers are still valid until the effective date, but employers need to evaluate their options moving forward and plan for contingencies. The ban will require businesses to inform current and former employees that their non-competes are invalid.  Companies may still use non-disclosure agreements to protect proprietary information.

Legal challenges are ongoing, with a final decision in the Texas case expected by August 30, 2024.

PrestigePEO is focused on supporting your business and will continue to monitor this matter as it evolves.

PrestigePEO is here to help.  If you have questions, please contact your HRBP for assistance.

The Louisiana Legislature passed significant amendments to the wage payment and non-compete statutes, impacting employer obligations.

Wage Payment Statute – Changes Effective August 1, 2024

• Employers must pay final wages within five (5) days of termination, reduced from 15 days.
• Employers may pay final wages electronically, including direct deposit and electronic funds transfer.
• Employers offering bonuses or incentives can adjust commissions and bonuses based on change orders or upon receipt of customers’ payments, provided the employer has a written policy. Employers can make payments based on periodic financial performance within 120 days.
• Employers must provide detailed written statements to terminated employees outlining the final wage payment details and any deductions.
• Non-compliance can result in penalties up to double the unpaid wages, plus attorney fees.

Non-compete Statute – Changes Effective January 1, 2025

• The statute shortens the acceptable duration of non-compete agreements to 12 months post-employment.
• Non-compete restrictions must be reasonable in scope, both geographically and temporally. Restrictions should be limited to geographic areas where the employer conducts business and for a duration justified by business interest.
• Employers must demonstrate a legitimate business interest for a non-compete agreement. Legitimate business interests might include the protection of trade secrets, preservation of customer relationships, investment in employee training, and preventing unfair competition.
• Employers must provide additional consideration for current employees to sign non-compete agreements.
• There are special rules for physicians. The duration of Non-compete Agreements for primary care physicians is limited to three years, and for other physicians, five years. If employment ends before the full duration of the noncompete agreement, noncompete period is reduced by to two years.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these changes. If you have questions, please contact your HRBP for assistance.

Paleny v. Fireplace Products U.S., Inc., 103 Cal. App. 5th 199 (3^rd DCA 2024)

On June 27, 2024, the California Court of Appeals issued a decision in the case of Paleny v. Fireplace Products U.S., Inc., ruling that an employee who wanted to donate and freeze her eggs was not protected by the Pregnancy Statute.

Erika Paleny was an administrative assistant who worked at the Fireplace Products U.S., Inc.  in Sacramento, California between May 2018 through October 2019. On or around October 2018, she informed her manager that she would be undergoing an egg retrieval procedure for “donation” and “potential personal use.” According to Erika Paleny, her employer had expressed strong dissatisfaction of having her to take time off to undergo the egg retrieval procedures and started to create a hostile working environment. A few months later Ericka Paleny had advised her supervisor that she would have to start coming to work a little later in the day so that she could attend her scheduled retrieval procedures. After informing her supervisor about her latest schedule, she was terminated. Subsequently, Erika Paleny filed a claim with the Fair Employment and Housing Act (FEHA) claiming discrimination, harassment, and retaliation due to disability and pregnancy, failure to accommodate, and wrongful termination in violation of public policy.

A few years after Erika Paleny was fired, a new law was enacted in California called the Contraceptive Equity Act of 2022. This new law included protection under FEHA such as “reproductive health decision-making” and different methods of obtaining contraception.

The Court decided that at the time Erika Paleny had filed her claims, the egg retrieval procedure under FEHA did not amount to any medical condition related to pregnancy. The Court further reasoned that Paleny was only undergoing an “elective medical procedure” without an underlying medical condition related to pregnancy. As a result, she did not have a “protected characteristic” under the FEHA.

What Employers Should Know

The decision in the Paleny signifies the importance of the timing of when an employee can bring claims, and the specific protections that are provided under FEHA.  It is also important to note that FEHA now includes “reproductive health decision-making” as a protected category. Employers need to ensure that their polices are up to date and they can properly accommodate employees for time off requests for egg retrieval, egg donation, sperm donation, and any other requests related to reproductive health decision making activities.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business.  If you have questions, please contact your HRBP for assistance.

On July 3, 2024, New Hampshire Governor Chris Sununu signed HB 1169 into law, making New Hampshire the most recent state to pass a law protecting individuals against discrimination based on their hairstyle. The Creating a Respectful and Open World for Natural Hair Act (the “CROWN Act”) supplements existing anti-discrimination laws to provide a private cause of action for employment discrimination based upon a person’s protective hairstyle. The CROWN Act defines a protective hairstyle as “hairstyles or hair type, including braids, locs, tight coils or curls, corn rows, Banto knots, Afros, twists, and head wraps.”[1] Previously, it was not clearly defined if hairstyle-based discrimination was included as Race or Color based discrimination. Any remaining ambiguity has now been erased with the passage of the CROWN Act.

The law goes into effect on September 1, 2024, sixty (60) days after it was signed into law.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations. If you have questions, please contact your HRBP for assistance.

[1] https://www.gencourt.state.nh.us/lsr_search/billText.aspx?id=1204&type=4

On June 20, 2024, the Illinois legislature passed bill SB 0508, which has been sent to Illinois Governor J. B. Pritzker for signature. Should this pending bill be approved and signed by the governor, it will place certain restrictions on employers and could potentially ban employer imposed work authorization verification or re-verification practices, unless they are required to do so by Federal law.  This may impact an Illinois employers’ ability to utilize the Federal E-Verify system, which allows the federal government to assist with reviewing and matching employee authorization documents and notifying an employer of a potential issue.  While the legislation is currently pending, experts agree that the language is vague and should it be signed by the governor, employers should be cautious about using the E-Verify system unless otherwise required to do so by law.

Additionally, if passed, the new law could possibly prohibit employers from taking adverse actions against employees that have certain discrepancies in their work documentation.

We are continuing to monitor the status of the bill and will keep you informed of the final outcome.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these pending regulations. If you have questions, please contact your HRBP for assistance.

Illinois business owners should prepare for significant changes in employment legislation. Over ten new employment laws and amendments are awaiting the governor’s signature, with their passage highly anticipated. However, this legislation can be amended, withdrawn, or vetoed prior to the Governor signing it into law. This potential legislation includes:

1. Biometric Information Privacy Act (BIPA) – Amendment outlines new limitations and regulations on the collection, use, and storage of biometric information.
2. Day and Temporary Labor Services Act – Amendments include changes to the timing of when temporary employment agencies must pay “equivalent benefits” to employees, ensuring timely and fair compensation.
3. E-Verify – Changes to requirements and uses of the E-Verify system will potentially impact how businesses verify employee eligibility.
4. Equal Pay Act– Amendments outline additional reporting requirements for employers regarding pay data, aimed at closing the gender pay gap.
5. Freedom of Speech Act– If enacted, this law would provide immediate protections for employees’ freedom of speech in the workplace.
6. Illinois Human Rights Act (IHRA) – Changes include an increased statute of limitations specifying that employees will have up to two years to file employment claims under IHRA. Family Responsibilities, defined as an employee’s provision of personal care to a family member, and Reproductive Health Decisions will be added to the list of protected classes.
7. Illinois Personnel Record Review Act (IPRRA) – Amendments will require employers to maintain copies of employee pay stubs for at least three years and produce additional documents upon request.
8. Paid Leave for All Workers Act– Employers will be required to provide a certain number of paid leave days for all employees, enhancing worker benefits.
9. Employer Use of Artificial Intelligence– Regulations include new guidelines and restrictions on how employers can utilize AI in the hiring and employment process.
10. Whistleblower Protection Act– Enhancements provide for expanded protections for employees who report illegal or unethical activities within their companies.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these proposed regulations. If you have questions, please contact your HRBP for assistance.

Essential Information for New York Employers

On April 19, 2024, New York State made significant amendments to New York Labor Law Section 206-c, requiring employers to provide additional support to nursing employees. This new law introduces several critical changes that New York employers must be aware of, including mandating paid lactation breaks for employees, as reported in PrestigePEO May Insights.

New York’s New Lactation Law

The most significant update is the requirement for employers to provide 30-minute paid lactation breaks. This enhancement builds upon the previous law, which allowed for reasonable unpaid breaks. Now, employers must give 30-minute paid breaks. Employees must be permitted to use additional unpaid break time or mealtime if they need extra time for breast milk expression beyond the paid 30 minutes. The law applies to both in-person and remote workers.

The updated law specifies that employers must provide paid lactation breaks whenever the employee needs to express breastmilk. This provision is applicable for up to three years following the birth of the employee’s child.

The law reiterates the employer’s requirement to provide a private, non-bathroom space for lactation. Employers must ensure the employee’s privacy by providing a space that is shielded from view and free from intrusion. The space should also be near the employee’s work area and meet some other requirements specified in the law and New York Department of Labor Information for Employers, including  a chair and small table or other flat surface, light, an electrical outlet (if the workplace has electricity), and access to a clean water supply. If there is a refrigerator in the workplace, employers must provide employees access to store their expressed milk. If the employer is unable to provide a dedicated lactation room, a temporarily vacant room may be used instead. As a last resort, employers may provide a fully enclosed cubicle with walls at least seven feet tall.

Employers must inform employees about their rights under this law by providing employees with the New York Department of Labor Policy on the Rights of Employees to Express Breastmilk in the Workplace upon hiring, annually after that, and when an employee returns to work following the birth of a child. Inform your employees about their rights under the new law by providing them with the Policy.

Practical Tips for Compliance

Private employers in New York may need to review and revise employee handbooks and policies to ensure compliance. All public and private employers in New York State, regardless of the size or nature of their business, must maintain a written policy outlining nursing employees’ rights, including their new entitlement to 30-minute paid breaks to express breastmilk. Employers should communicate policy or handbook updates to all employees.

Business locations should establish a designated lactation space that meets the law’s privacy requirements and ensure the space is easily accessible and comfortable for nursing employees. Human Resources departments and managerial staff should receive training on the new law to ensure they understand and can successfully implement the new requirements.

By accommodating nursing employees, updating policies, informing staff, and encouraging a supportive workplace culture, you can ensure compliance while promoting a positive and productive work environment for all employees.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations. If you have questions, please contact your HRBP for assistance.

The New York City Council has recently proposed new legislation that would be the most stringent pay data reporting requirements in the nation. This regulation seeks to address wage disparities and promote fairness by providing detailed and frequent reporting of compensation data across various demographics. If this new bill were to pass, it would mandate that employers with twenty-five or more employees working either part-time or full time in any one of the five boroughs of New York City to submit comprehensive pay and demographic information to the New York City Department of Consumer and Workers Protection (DCWP) each year starting on February 1, 2025.

Key details of the Proposed Regulation:

• Detailed Pay Data Reporting: Employers would be required to provide comprehensive reports that include compensation ranges for different job titles. This data must reflect average salaries and the distribution of pay within roles and levels.
• Demographic Breakdown: These reports must include a detailed breakdown of pay by race, gender, and ethnicity. This transparency will clarify potential pay gaps and ensure equitable compensation practices across multiple employee groups.
• Regular Updates: Pay data must be updated regularly. This ongoing reporting requirement will help track changes and ensure that compensation practices remain fair and aligned with current standards.
• Enforcement and Compliance: The New York City DCWP will oversee compliance through regular audits. Employers who fail to meet the reporting requirements could face substantial fines and other penalties, reinforcing the importance of adhering to these new standards.

Implications for Employers:

The proposed regulations highlight the importance of remaining vigilant about pay practices and pay management. Employers should prepare by reviewing their pay practices, making sure they can report and explain their pay data correctly, and figuring out how to fix any pay gaps they may find.

As New York City takes steps in progressing pay fairness by following the lead of states like California and Illinois, which already have pay data reporting requirements, it is likely that more states will follow with similar rules.

PrestigePEO is here to help. If you have any questions concerning the proposed New York City Pay Data Reporting Requirement, please contact your HRBP.

On May 10, 2022, Delaware Governor John Carey signed the Delaware Paid Family and Medical Leave Insurance Program into law.  The goal of this legislation is to provide up to 12 weeks of protected paid leave to Delaware workers to manage a serious health condition or injury, care for a family member with a serious health condition, care for a new child, or provide assistance to a family member who has been called to active duty in the Armed Forces.  This new legislation is set to begin on January 1, 2026, with payroll deductions for funding beginning on January 1, 2025, for those employers in the State’s plan.

In order to be eligible, employees must have been employed by qualified employers for at least one year and have worked at least 1,250 hours with that employer.  If approved for leave, the employee will receive up to 80% of their wages, up to $900 per week.  However, not all employers are subject to the regulations. Employers with:

• 9 or fewer employees are exempt from the regulations;
• 10-24 employees are subject to only parental leave under the regulations;
• 25 or more employees are subject to full coverage under the regulations;
• Any business that shuts down for a month or longer (typically seasonal) are exempt;
• Federal Government Employees are also exempt from coverage under the regulations.

How much leave time an employee may be permitted to take will be determined by the reason for the leave.  Only employees who take leave for the purposes of caring for a new child will be eligible for 12 weeks of leave in a 12-month period.  The remaining purposes for leave including medical, family care, or leave for purposes of providing assistance to a family member who has been called to active duty in the Armed Forces are eligible to take a maximum total of 6 weeks of leave in any 24-month period.

If the qualifying reason for leave would also qualify the employee for leave under the federal Family Medical Leave Act (FMLA), the two leaves would run concurrently. Employers may require that employees exhaust unused, accrued paid time off prior to using the leave.

The program will be funded from employee and employer contributions. Under specific circumstances including purchasing a private plan that provides the same or better benefits as the state plan, employers may opt out of the Delaware Paid Leave Plan, but only with the Division of Paid Leave’s approval on a yearly basis. Written notice of the rights and protections afforded by this law must be provided by qualifying employers to employees when hiring a covered employee and when the employee either requests leave, or the employer becomes aware that an employee’s leave may qualify under the regulations. More information on employers’ responsibilities will be forthcoming.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business.  Please contact your HRBP for further guidance if you have any questions.

Late last year, the State of Illinois passed the Paid Leave for All Workers Act, or PLAW, which went into effect on January 1, 2024.  This legislation has implications on how employers manage their paid time off and leave policies, but only recently did the Illinois Department of Labor (IDOL) issued clarity of the PLAW, aiming to provide crucial interpretations and guidelines for employers navigating this new legislative landscape. These new regulations, which become effective immediately, offer both continuity and major changes from the initial proposal, prompting Illinois employers to revise and align their paid time off and leave policies accordingly.  Below, we have provided a detailed look at five critical areas highlighted by the Illinois Department of Labor.

1. Qualifying Pre-Existing Paid Leave Policies

One of the key clarifications involves qualifying pre-existing paid leave policies. Employers who already offer at least 40 hours of paid leave annually that can be used for any reason are exempt from additional requirements of the Paid Leave for All Workers Act. Below are the specific conditions that apply.

• • The policy must have been in effect as of January 1, 2024.
  • Modifications to these policies are permissible after January 1st, if they maintain the minimum required leave.
  • Different policies may apply to different employee groups within the same organization, such as full-time versus part-time employees.

2. Carryover

Under the Paid Leave for All Workers Act, if an employee choices the accrual method, or allows employees to accrue paid leave at a rate of one hour for every 40 hours worked, as required, employers are now permitted to limit carryover to 40 hours of unused paid leave from one 12-month period to the next, as a carryover cap, but only if done by utilizing a valid written policy.  Alternatively, employers and employees can agree to a payout of unused leave at the end of the period instead of carryover.

3. Frontloading

Employers are allowed to frontload paid leave for new hires or part-time employees, prorated based on anticipated work schedules. Importantly, if an employee leaves before the end of the 12-month period after using frontloaded leave, employers cannot seek reimbursement for the used leave.

4. Denial of Paid Leave

The final regulations grant employers broader discretion in approving or denying paid leave requests compared to the initial proposal. Employers must disclose their policies for considering leave requests, including any grounds for denial, in writing to employees. The policy must be written and applied to avoid effectively denying employees their entitled leave over a 12-month period.

5. Rate of Pay

Employees must be paid their hourly rate of pay when using paid leave, according to the final regulations. This clarification removes the previously proposed “regular rate of pay” calculation, simplifying compliance for employers.

 

Implications for Employers

The final regulations bring much-needed clarity and structure to the implementation of the Paid Leave for All Workers Act in Illinois. Employers are advised to review and update their PTO policies in line with these guidelines to ensure compliance and mitigate potential risks. Clear communication of policies to employees, especially regarding denial criteria and leave usage conditions, is crucial to maintaining transparency and fairness in the workplace.

Conclusion

The final regulations by the Illinois Department of Labor represents a significant milestone in the ongoing implementation of the Paid Leave for All Workers Act. By addressing critical areas such as pre-existing policies, carryover limits, frontloading practices, leave denial criteria, and pay rates, these regulations provide employers with the necessary tools to navigate and comply with the new law effectively. As employers update their policies and practices, staying informed and proactive will be essential to fostering a compliant and supportive work environment in Illinois.

What Should Employers Do Next?

Employers should review their Pre-Existing Paid Leave Policies, and other practices for compliance with the final IDOL regulations.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations and related litigation. If you have questions, please contact your HRBP for assistance.

In February, Governor Jeff Landry of Louisiana called a special session of the Legislature to address crime in the state.  During this session, the Legislature passed a new state law that will make it to legal carry a concealed weapon in public. The law will take effect on July 4, 2024, and will allow any person who is a non-felon and over 18 years of age or older to carry a concealed weapon in public without a license or permit, with few exceptions.

The law will prohibit carrying handguns in certain locations such as schools, government buildings, places of worship, and voting locations. Additionally, concealed weapons will not be allowed at any private or public location where signage indicating “No Firearms Allowed on the Premises” is properly posted.

What should employers know?

Employers still retain the right to restrict anyone, including employees from possessing a handgun or firearm on the employer’s premises, provided the employer has properly posted signs “No Firearms Allowed on The Premises” at the entrances of businesses and conspicuous areas inside the location.  Important to note is that Louisiana state law does permit anyone to carry a legally owned and possessed firearm in their personal vehicle, even when on an employer’s property.

Employers should take the time to educate employees about the new concealed carry law and your expectations and rights as the employer, while continuing to provide a safe environment for all employees. It is also recommended that employers review and update the safety policies and procedures to ensure their policies cover all aspects of workplace violence prevention within their organizations.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new regulations. If you have questions, please contact your HRBP for assistance.

On May 21, 2024, Connecticut Governor Ned Lamont signed new legislation that will expand the state’s existing paid sick leave law. This new law will cover all employers and workers in Connecticut, with some exclusions for seasonal employees and specific unionized workers, beginning January 1, 2025.  Currently, paid sick leave is only made available to employees who meet the legally defined service worker designation and is only applicable to those employers employing 50 or more employees.

The new law will incrementally reduce the threshold number of employees from 50 to 1, between January 1, 2025, and January 1, 2027, resulting in all Connecticut employees being covered by these new regulations by the final January 1, 2027, date. Below is a breakdown of the dates referenced:

• January 1, 2025: Employers with twenty-five or more employees will need to provide paid sick leave.
• January 1, 2026: Employers with eleven or more employees will need to provide paid sick leave.
• January 1, 2027: Employers with just one employee will need to provide paid sick leave.

Employees will start earning paid sick leave from their first day on the job but not be permitted to use it until they have worked for 120 days or more.  Sick leave will accrue at a rate of 1 hour for every 30 hours worked, up to 40 hours per year. Employees can carry over up to 40 hours of unused sick leave to the next year, and employers can limit that usage to 40 hours per year.  Employers may also choose to frontload the entire 40 hours of paid sick leave for employees to utilize at the immediate start of each new year.

The new law also broadens the reasons employees can take paid sick leave. These reasons include the following:

• An employee or family member’s illness, injury, or health condition (including care, diagnosis, and treatment).
• Preventive medical care for an employee or family member.
• An employee’s mental health wellness day.
• Closure of an employer’s business or a family member’s school due to a public order or public health emergency.
• If an employee or their family member poses a risk to others due to exposure to a contagious illness.
• If an employee or their family member is a victim of violence or sexual assault (unless the employee is the perpetrator).

Employers are not permitted to ask employees for proof that they are using sick leave for a covered reason, nor can they require employees to find someone to cover their shift.

Lastly, employers must inform employees about the new law by displaying a poster to be created by the Connecticut Department of Labor in a visible place at work and giving written notice to current employees by January 1, 2025. Employers must also provide this notice to new employees when they are hired.  Employers will be required to provide updated notification to the employees in every paystub informing them of 1) the number of paid sick leave hours accrued by or provided to the employees, and 2) the number of hours used during the year.  Retention of these records is required for three years. Employers are encouraged to review their existing Paid Sick Leave policies now to better prepare for compliance with the upcoming effective dates.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business If you have questions, please contact your HRBP for assistance.

As a reminder, on April 23, 2024, the U.S. Department of Labor (DOL) finalized the new salary requirements for workers considered “white-collar” salary exempt and highly compensated employees, with the first effective date of July 1, 2024.  Employers nationwide should be reviewing their exempt employees’ salaries for compliance now if they have not already done so.

A comprehensive review of these changes was published in the May 2024 version of Insights and can be found here for reference.

Salary exempt employees are workers that are otherwise exempt from the Fair Labor Standards Act’s minimum wage and overtime protections which require workers to be paid an overtime premium of 1.5 times their regular hourly rate of pay for all hours worked over 40 in a workweek.

The exemption from this overtime payment applies to those workers that are employed in the bona fide administrative, executive, or professional (EAP) capacity, otherwise known as the “white-collar” exemptions as well as the highly compensated employee (HCE) exemption.

New Thresholds and Deadlines:

The DOL’s incrementally imposed new regulations will raise the salary threshold for workers classified as administrative, executive, and professional (EAP) exempt beginning on July 1, 2024, with another increase scheduled for January 1, 2025.  The initial increased salary threshold is to $844 a week ($43,888 annualized) no later than July 1, 2024, with the second increase to $1,128 ($58,656 annualized) by January 1, 2025.

The highly compensated employee exemption will also see an incremental increase, with the first one to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025.  Thereafter, all salary exempt classifications will automatically be updated and increase every three years beginning July 1, 2027, to reflect current earnings data and will be determined by applying to available data the methodology used to set the salary level in effect at the time of the update.

Although these new regulations have already faced multiple legal challenges, employers should remain vigilant about wage and hour compliance efforts.   In light of these recent challenges and significant Supreme Court rulings, PrestigePEO will continue to monitor these developments and provide updates accordingly.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business.  Please contact your HRBP or HRC for further guidance if you have any questions.

Several monumental cases have been pending in front of the Supreme Court of the United States this term, one of which has been closely watched as potentially changing the regulatory framework upon which policy decisions are made and enforced in this country.

On Friday, June 28, 2024, the Supreme Court of the United States published its ruling on what has become known as the Chevron doctrine, overturning the forty-year-old landmark decision that required courts to give deference to a federal agency’s interpretation of a Congressional statute, when that statute was challenged as nebulous or in need of further interpretation. This new ruling now requires that courts “exercise their independent judgment when deciding whether an agency has acted within its statutory authority.”

The ruling now allows for any agency action or regulation that is challenged in court to be decided by judicial interpretation as to whether an agency’s authority has been properly delegated by statute, and if ambiguous, the courts will decide if the agency acted within its statutory authority instead of giving immediate deference to the agency’s interpretation of a law.

The burning question on every employer’s mind is how this ruling will impact their operations. The answer is significant. This new ruling will impact challenges to federal agency authority and rulemaking across all agencies, including those that affect the daily employee and employer relationships. These agencies include the Department of Labor, the National Labor Relations Board, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the Federal Trade Commission, the Office of Federal Contract Compliance, and the Department of Homeland Security, among others. Experts agree that the future is complicated as courts are now empowered to strike down agency rules and regulations much easier, which will create a patchwork of various new rules across states. This is likely to impact every imaginable federal agency rule, including but not limited to DOL wage and hour rules, overtime rules, salary threshold exemptions, EEOC’s impact on discrimination and harassment compliance and litigation measures, OSHA regulations related to workplace safety, and many others.

An immediate example of how this decision will impact employers comes from a June 30, 2024, district court ruling, wherein The State of Texas, as a governmental employer, previously challenged the Department of Labor’s new salary exempt threshold that went into effect on Monday, July 1, 2024. The district court temporarily suspended the rule as it applies to The State of Texas as an employer, finding that the State does not have to comply with the new overtime rules, agreeing that Texas will likely win its underlying legal challenge that the Department of Labor exceeded its rulemaking authority by requiring the increases to salary thresholds. This temporary suspension does not apply to all employers, including private employers in Texas, but only to The State of Texas as an employer, allowing Texas to avoid any wage increases to state employees while the underlying lawsuit remains pending.

Given the anticipated increase in litigation, employers must continue complying with all federal rules and regulations, including the DOL’s new salary threshold requirements, until further notice of applicable court rulings. Prestige PEO is committed to supporting your business and will continue to monitor and update these changes as they become available.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business.  Please contact your HRBP for further guidance if you have any questions.

On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) released the final edition of workplace harassment guidance for employers, formalizing for the first time in more than twenty-five years the EEOC’s interpretation of legal standards and employer liability under federal antidiscrimination law.  This lengthy and comprehensive revision of guidance for employers details updated applications of federal law prohibiting harassment and retaliation in response to a multitude of new developments within the legal framework of discrimination as applied to the modern workforce.  Key takeaways from these revisions include the recognition of unlawful harassment against LGBTQ+ individuals with particular attention given to workplace protections for sex, including pregnancy, childbirth, or related medical conditions, sexual orientation, and gender identity, in addition to race, color, religion, national origin, disability, genetic information, and age.

The EEOC’s final edition of workplace harassment guidance mirrors the 2020 legal ruling from the Supreme Court of the United States which held that gender discrimination under Title VII of the Civil Rights Act of 1964 may include claims based on sexual orientation and gender identification and identifying the potential nature of unlawful workplace harassment against LGBTQ+ individuals, including harassment from any person such as coworkers, managers, supervisors, customers, and clients.

This new guidance on unlawful sex-based discrimination under Title VII includes discrimination based on sexual orientation or gender identity and gives examples of discrimination such as epithets, physical assault, outing, or “the disclosure of an individual’s sexual orientation or gender identity without permission,” “harassing conduct because an individual does not present in a manner that would stereotypically be associated with that person’s sex, repeated and intentional use of a name or pronoun inconsistent with the individual’s known gender identity (misgendering), or the denial of access to a bathroom or other sex-segregated facility consistent the individual’s gender identity.”  More information and examples as provided by the EEOC can be located here.

Other important updates to what is now recognized as workplace harassment under Title VII as well as other federal antidiscrimination laws include broadening the scope of harassment based on race and color to encompass not only race and national origin, but also color-based harassment focused on an individual’s skin pigmentation, complexion, or skin shade or tone.  Harassment based on pregnancy, childbirth, or related medical conditions can now include harassment related to an individual’s lactation, abortion, or contraceptive decisions if the harassment is linked to a targeted individual’s sex.  The new guidance also provides clarification on what is considered unlawful harassment under the Genetic Information Nondiscrimination Act (GINA), which includes “harassment based on an individual’s or an individual’s family member’s genetic test or on the basis of an individual’s family medical history.”

The EEOC also provides guidance on retaliatory harassment and provides a distinction between the legal standards for hostile work environment and retaliation.  The anti-retaliation provisions encompass a broader range of conduct including “anything that might deter a reasonable person from engaging in protected activity.”

This new guidance from the EEOC took effect immediately upon release so it is imperative that employers review their policies and procedures soon to ensure compliance with not only these new guidelines but any applicable state and local laws that may provide additional regulations, as well.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new guidelines and related litigation.  If you have questions, please contact your HRBP for assistance.  Additional information on the EEOC new guidelines outlined above can be found at the attached link.

The Minnesota Department of Employment and Economic Development (the “Department”) recently updated employer requirements under the Minnesota Paid Family and Medical Leave legislation that was signed into law last year.  This new legislation will provide paid family and medical leave for employees in Minnesota, beginning January 1, 2026.  This leave is a state administered program, overseen by the Department in which the state provides partial wage replacement as well as job protection for workers in Minnesota needing time away from their job to care for a serious medical condition, a family member’s serious medical condition, to bond with a new child, provide support for a family member who has been called to active military duty, or to seek help for themselves or a family member due to domestic violence, sexual assault, or stalking.  This paid leave program will cover most Minnesota employers with one or more employees, including part-time employees in this state, with few exceptions including self-employed individuals who choose to provide coverage for themselves.

These recently published updates include employer wage detail report submission obligations that are slated to begin October 31, 2024, which will reflect wages paid between July 1, 2024 and September 30, 2024.  The Department plans to release specific instructions for employers in the next couple of months, however, for employers already submitting quarterly wage detail reports within the unemployment system, no action will be required.  Those employers not covered by the unemployment insurance program will to be required to begin quarterly report submissions and will need to create a “Paid Leave Only” account in order to do so.  It is important for employers to note that the Paid Family and Medical Leave is a new program that is separate and distinct from the Unemployment Insurance program requirements.  This new Paid Leave program does not exclude the same employers that are otherwise excluded from Unemployment Insurance guidelines.

Additionally, the Minnesota Paid Leave is different from the Minnesota Earned Sick and Safe Time program which is administered by the Minnesota Department of Labor and Industry and went into effect on January 1, 2024.  As a reminder, this employer sponsored leave is sick and safe paid time off employers must provide to employees for various reasons including employee illness, for employees to care for a sick family member or for an employee or family member to seek assistance due to domestic violence, sexual assault, or stalking.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor this new law and related regulations and litigation.  If you have questions, please contact your HRBP for assistance.  Additional information on the distinction between the two leave programs outlined above can be found at the attached link.

On April 30, 2024, The City of Chicago Department of Business Affairs and Consumer Protection (BACP) published final regulations providing some clarity on the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance requirements, which are slated to take effect on July 1, 2024.  As first outlined in an Insights article last year, the original effective date for this new leave law was December 31, 2024, but was quickly delayed until July 1, 2024, due to logistical requirements surrounding the implementation and enforcement of these sweeping regulations.  The new Paid Leave and Paid Sick and Safe Leave Ordinance will require Chicago employers to provide employees with up to 40 hours of paid sick leave and up to 40 hours of paid leave for any reason.  Experts agree that while the final regulations help, employers may still be left with questions.  An outline of the major highlights from the regulations are as follows:

The Definition of a 12-Month Benefit Year or Period

The final regulations take a less rigid approach to the requirement that “[t]he 12-month period for a covered employee shall be calculated from the date the covered employee began to accrue Paid Leave and Paid Sick Leave.”  Employers are now allowed to determine a 12-month benefit period of the employer’s preference to set for an employee to receive Paid Time Off and Paid Sick Leave benefits, provided that the established 12-month timeframe consist of consecutive months such as the tax year, the calendar year, or anniversary date of employee’s employment.  The employer has the option to set different dates for each covered employee or require all covered employees to have benefits awarded on the same 12-month benefit cycle date, however the integrity of the leave regulations must be maintained.

The employer also has the option to front-load, or immediately grant covered employees at least 40 hours of paid leave or 40 hours of paid sick leave or both at the beginning of employment or the established benefit cycle year.  If the employer grants covered employees 40 hours or more of paid leave “no later than 90 days after the covered employee began working for the employer, the employer is not required to provide additional paid leave (until the following benefit year or cycle). If an employer grants covered employees 40 hours (or more) of paid sick leave no later than 30 days after the covered employee began working for the employer, then the employer is not required to provide additional sick leave” until the following benefit year or cycle.

Carryover Required

The regulations now require that employees be allowed to carryover up to 80 hours of accrued and unused Paid Sick Leave and up to 16 hours of accrued and unused Paid Leave from one 12-month benefits period to the next.  This carryover will be in addition to the Paid Sick Leave and Paid Leave the employee will earn in the subsequent 12-month benefit year.  Furthermore, as mentioned above, employers may frontload at least 40 hours of Paid Leave and at least 40 hours of Paid Sick Leave on the first day of the 12-month benefit period.  This frontloading method will absolve the employer from having to carryover paid leave hours but frontloading 40 hours of paid sick leave will NOT absolve the employer’s obligation to carryover the employee’s paid sick leave requirements from one benefit year cycle to the next.

Usage and Notification

Employers shall establish reasonable, written paid leave and paid sick leave policies, which include advance notice procedures and an outline of the reasons for potential leave request denials. Such policies should be made available in English and in any language that employees are literate and may be included in an employment handbook, a manual or separate document.  Covered employees shall be allowed to use accrued paid leave by the 90^th calendar day following the beginning of their employment and accrued paid sick leave by the 30^th calendar day following the beginning of their employment, regardless of the size of the employer or the number of employees employed by the employer.  If the employer allows for a more general or generous Paid Time Off policy, the employee shall be allowed to utilize all leave by the shorter 30^th calendar day timeframe, rather than the 90^th calendar day.

Employers are permitted to require that employees obtain “reasonable pre-approval” from the employer before using paid leave for “purposes of maintaining continuity of the employer operations.” A list of relevant factors are provided by the BACP to help employers evaluate operational needs.  Reasonable notice required from employees for use of paid leave shall not exceed seven days.  All denials of paid leave must be done in writing from the employer and must state the pre-established policy reasoning for the denial and be issued to the covered employee immediately upon the denial.

Employers must post the city created Notice poster, outlining the Paid Sick Leave and Paid Leave regulations which can be done through the employer’s usual course of communication and can include electronic dissemination or paper postings.  In addition, as a part of the on-boarding process or prior to the commencement of employment, all new hires should be notified in writing of the employer’s Paid Leave and Paid Sick Leave policies.

Should an employer elect to frontload leave time, written notification of the policy including available time off should be provided to the employee at the commencement of the 12-month benefit period.  Written notification is also required annually with a paycheck or stub issued within 30 days of July 1, every year, alerting employees to the employer’s Paid Sick Leave and Paid Leave policies.

Other regulation clarifications included in the new guidelines pertain to any changes to the employers’ paid leave policy notification requirements.  Employers are required to provide at least five calendar days’ notice before implementing any notification requirement changes.  Furthermore, employers now need to provide at least 14 days’ advance written notice to employees if a policy change will affect their right to final compensation for the paid leave under the payout requirements.  Employers are also required to provided notification to employees of the availability of paid leave and paid sick leave as well as the employee’s use of the leave in an updated and reasonable manner, such as regular paystubs, payroll statements, an updated on-line portal or even providing a handwritten record of available time.

This is just an overview of the clarifications provided by Chicago’s BACP on the Paid Leave and Paid Sick and Safe Leave regulations.  Employers are encouraged to review the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance as well as the prior Insights article for further information, including but not limited to payout requirements and how the new regulations interface with Collective Bargaining Agreements. Link to prior article?

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor this new law and related regulations and litigation.  If you have questions regarding the City of Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance regulations or the required Posting, please contact your HRBP for assistance.

As a follow-up to our last Insights article regarding the California Workplace Violence Prevention Act. We would like to remind you that California employers need to create and implement a Workplace Violence Prevention (WVP) Plan by July 1, 2024. The new law applies to all California employers, large and small, with the exception to the healthcare employers, who are already covered under Cal/OSHA’s existing healthcare WVP Standard.

For more information on Workplace Violence Prevention Plan, the Occupational Safety and Health Administration (OSHA) has released useful information for employers that can be found here.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business. If you have any questions regarding the California Workplace Violence Prevention Law requirements or updating your existing polices, please contact us.

Effective May 11, 2024, New York City now prohibits employers from entering into any type of agreement that shortens the statutory period by which an employee may file an administrative claim or complaint, or civil action, relating to unlawful discriminatory practices, harassment or violence under the New York City Human Rights Law, Admin. Code § 8-101, et seq. (NYCHRL).

Currently, New York City employees have one year from the date of the alleged violation to file a complaint with the NYC Commission on Human Rights for an unlawful discriminatory practice or act of discriminatory harassment or violence, and three years to file a claim of gender-based harassment. In addition, employees may initiate a civil action in court under the NYCHRL within three years of the alleged violation.

What Does the Ordinance Specifically Prohibit?

The new ordinance renders “[a]ny provision of an agreement involving an employer, employment agency, or agent thereof pertaining to terms of employment” that purports to shorten the periods in which either: (1) a complaint or claim may be filed with the NYC Human Rights Commission; or (2) a civil action may be filed in court as void and unenforceable. In other words, any provision, term, or language in an employment contract that claims to shorten an employee’s statutory time to file an administrative claim, or a civil lawsuit will now be deemed void. 

When Does the Ordinance Go into Effect?

The law became effective immediately on May 11, 2024.

Does the Ordinance Apply Retroactively?

The broad language used in the ordinance indicates that it was intended to apply to all employment agreements in effect prior to its enactment.

What should employers do now?

Given that the ordinance took effect immediately, companies with employees working in New York City should take inventory of their existing employment agreements to ensure compliance. Employers should also review their handbooks and other policies. Employers should also be aware that any such provisions in existing employment agreements are no longer enforceable.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor this new law and related litigation.  If you have questions, please contact your HRBP for assistance.

Modifications to Maryland’s Paid Family and Medical Leave Program: Maryland’s Paid Family and Medical Leave (PFML) program has undergone significant modifications aimed at enhancing employee benefits and aligning with federal standards. The revised law now mandates that eligible employees can take up to 12 weeks of paid leave for various qualifying reasons, including serious health conditions, caring for a family member with a serious health condition, and bonding with a new child. The program is funded through payroll contributions from both employers and employees, with the state providing detailed guidelines on the contribution rates and the administration process. Employers must ensure compliance with these changes by updating their leave policies and informing employees about their rights and responsibilities under the new law. Senate Bill 485, cross-filed with House Bill 571 and signed by the governor on April 25, 2024, updates Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program, initially established by the Time to Care Act of 2022. Effective October 1, 2024, the bill alters administrative deadlines, definitions, and components of the program’s administration. It authorizes the Maryland Department of Labor (MDOL) to set fees for private employer plans.

Key changes include:

• Delayed Implementation Dates: Required contributions start July 1, 2025, and benefit payments start July 1, 2026.
• Coverage and Eligibility: Employees must have worked at least 680 hours in Maryland over the four prior calendar quarters.
• Contribution Rate: Contributions are based on wages up to the Social Security wage base, with the rate set by February 1, 2025.
• Private Employer Plans: Employers must either use a state-approved program or an authorized insurance plan and may face application and renewal fees.
• Appeal Costs: If an employee wins an appeal against a private employer plan, the MDOL may charge the employer or insurer for appeal costs.

Draft regulations were issued in January 2024, with revisions anticipated. Full implementation of the FAMLI program remains uncertain, pending final regulations and further guidance from the MDOL. Find more information here.

Implementation of Pay Transparency Requirements for Job Postings: In a move towards greater workplace equity, Maryland has enacted new pay transparency requirements for job postings. Effective on 10/1/2024, employers are required to include the salary range or wage rate in all job advertisements. This legislation aims to address pay disparities and promote fairness in the hiring process. By making salary information readily available, job seekers can make more informed decisions, and employers are encouraged to set competitive and equitable pay rates. Employers should review and update their job posting practices to ensure compliance with this new requirement, potentially reevaluating their compensation structures to maintain market competitiveness and internal equity.

Introduction of a New Pay Stub Template: Maryland employers should prepare for the rollout of a new pay stub template designed to provide employees with more comprehensive and transparent information about their earnings. The updated template now requires detailed itemization of hours worked, rates of pay, deductions, and net earnings. This change is intended to promote transparency and help employees better understand their compensation. Employers must adopt this new template for all pay stubs issued moving forward. It is crucial to update payroll systems accordingly and ensure that the human resources team is trained on the new requirements to avoid potential compliance issues. Maryland employers should prepare for a new pay stub template aimed at enhancing transparency and providing employees with detailed information about their earnings. The updated template requires itemized details of hours worked, pay rates, deductions, and net earnings. This change is designed to help employees better understand their compensation. Employers must adopt this new template for all future pay stubs, update payroll systems, and ensure the human resources team is trained on the new requirements to avoid compliance issues.

Conclusion: These legislative updates reflect Maryland’s commitment to fostering a fair and transparent work environment. Employers must stay informed and initiative-taking in implementing these changes to remain compliant and support their workforce effectively. By revising leave policies, ensuring pay transparency in job postings, and adopting the new pay stub template, employers can navigate these changes smoothly while promoting a more equitable workplace.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new guidelines and related litigation. If you have questions, please contact your HRBP for assistance. Additional information on the New employment legislation in Maryland new guidelines outlined above can be found at the attached link.

Compensation is one of an organization’s foundational tools used to attract, retain, and reward talent.  An effective compensation strategy can benefit an organization by getting the right employees in the door, retaining these employees, and motivating them to meet the organization’s goals.  Do you want to lead the market by paying your employees higher than the role generally commands or within your industry?  Do you want to pay employees less than market, or do you want to target the market so your employee’s pay is aligned with others who perform the same work?   The reasons for adopting one strategy over another will vary by organization.  Compensation strategy that lags, meets, or leads the market will also impact employee actions.

Choosing to lead the market is great for organizations that work in highly competitive industries and need to attract top talent for their openings. In this strategy, the organization pays employees higher than the market rate.  This helps to attract high quality talent and keeps strong performers in place, so employees aren’t leaving for higher pay.

Meeting the market is a good practice where an organization aligns employee pay with market rates.  Many organizations target the market to attract strong talent. In general, employees earning market rates feel valued and motivated to meet the demands of their role and organizational goals. This also aids in internal equity as pay is aligned with the market and consistent throughout the organization.

Lagging the market can be a tricky strategy to use as employees may not feel that pay is equitable. Employers using this compensation strategy pay employees below market rates.  Employers using this approach often find themselves constrained by limited financial resources or are prioritizing their budget toward research and development or other corporate initiatives.  It is important when adopting a lag strategy to offer other benefits that attract and retain employees, such as flexibility, a great work environment, rewarding work, more paid time off, richer benefits, etc. A lagging strategy is truly a balancing act between pay and other benefits.

No matter which pay strategy you choose as an organization, you will want to ensure pay equity.  Pay equity is attained by paying employees fairly across the organization based on the job responsibilities, employee experience, and the organization’s pay strategy. Having open dialogue with employees will help them to understand how they are paid. These conversations provide employers with an opportunity to share pay strategy, design, and the underlying reason for determining the employee’s pay.  This helps to build trust and understanding within the organization.

In addition, some states have pay transparency laws in place mandating employers to include salary ranges on a job posting and share salary range data with employees when asked.  We see this trend growing throughout the US.  You can also conduct annual salary reviews to ensure pay is equitable and make adjustments when needed.  While compensation strategy can be complicated, your HR Business Partner can help.  PrestigePEO can help you conduct salary audits, provide compensation market data, and help support compensation reviews. Contact your HR Business Partner to get started.

Compensation is one of an organization’s foundational tools used to attract, retain, and reward talent.  An effective compensation strategy can benefit an organization by getting the right employees in the door, retaining these employees, and motivating them to meet the organization’s goals.  Do you want to lead the market by paying your employees higher than the role generally commands or within your industry?  Do you want to pay employees less than market, or do you want to target the market so your employee’s pay is aligned with others who perform the same work?   The reasons for adopting one strategy over another will vary by organization.  Compensation strategy that lags, meets, or leads the market will also impact employee actions.

Choosing to lead the market is great for organizations that work in highly competitive industries and need to attract top talent for their openings. In this strategy, the organization pays employees higher than the market rate.  This helps to attract high quality talent and keeps strong performers in place, so employees aren’t leaving for higher pay.

Meeting the market is a good practice where an organization aligns employee pay with market rates.  Many organizations target the market to attract strong talent. In general, employees earning market rates feel valued and motivated to meet the demands of their role and organizational goals. This also aids in internal equity as pay is aligned with the market and consistent throughout the organization.

Lagging the market can be a tricky strategy to use as employees may not feel that pay is equitable. Employers using this compensation strategy pay employees below market rates.  Employers using this approach often find themselves constrained by limited financial resources or are prioritizing their budget toward research and development or other corporate initiatives.  It is important when adopting a lag strategy to offer other benefits that attract and retain employees, such as flexibility, a great work environment, rewarding work, more paid time off, richer benefits, etc. A lagging strategy is truly a balancing act between pay and other benefits.

No matter which pay strategy you choose as an organization, you will want to ensure pay equity.  Pay equity is attained by paying employees fairly across the organization based on the job responsibilities, employee experience, and the organization’s pay strategy. Having open dialogue with employees will help them to understand how they are paid. These conversations provide employers with an opportunity to share pay strategy, design, and the underlying reason for determining the employee’s pay.  This helps to build trust and understanding within the organization.

In addition, some states have pay transparency laws in place mandating employers to include salary ranges on a job posting and share salary range data with employees when asked.  We see this trend growing throughout the US.  You can also conduct annual salary reviews to ensure pay is equitable and make adjustments when needed.  While compensation strategy can be complicated, your HR Business Partner can help.  PrestigePEO can help you conduct salary audits, provide compensation market data, and help support compensation reviews. Contact your HR Business Partner to get started.

On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) released the final edition of workplace harassment guidance for employers, formalizing for the first time in more than twenty-five years the EEOC’s interpretation of legal standards and employer liability under federal antidiscrimination law.  This lengthy and comprehensive revision of guidance for employers details updated applications of federal law prohibiting harassment and retaliation in response to a multitude of new developments within the legal framework of discrimination as applied to the modern workforce.  Key takeaways from these revisions include the recognition of unlawful harassment against LGBTQ+ individuals with particular attention given to workplace protections for sex, including pregnancy, childbirth, or related medical conditions, sexual orientation, and gender identity, in addition to race, color, religion, national origin, disability, genetic information, and age.

The EEOC’s final edition of workplace harassment guidance mirrors the 2020 legal ruling from the Supreme Court of the United States which held that gender discrimination under Title VII of the Civil Rights Act of 1964 may include claims based on sexual orientation and gender identification and identifying the potential nature of unlawful workplace harassment against LGBTQ+ individuals, including harassment from any person such as coworkers, managers, supervisors, customers, and clients.

This new guidance on unlawful sex-based discrimination under Title VII includes discrimination based on sexual orientation or gender identity and gives examples of discrimination such as epithets, physical assault, outing, or “the disclosure of an individual’s sexual orientation or gender identity without permission,” “harassing conduct because an individual does not present in a manner that would stereotypically be associated with that person’s sex, repeated and intentional use of a name or pronoun inconsistent with the individual’s known gender identity (misgendering), or the denial of access to a bathroom or other sex-segregated facility consistent the individual’s gender identity.”  More information and examples as provided by the EEOC can be located here.

Other important updates to what is now recognized as workplace harassment under Title VII as well as other federal antidiscrimination laws include broadening the scope of harassment based on race and color to encompass not only race and national origin, but also color-based harassment focused on an individual’s skin pigmentation, complexion, or skin shade or tone.  Harassment based on pregnancy, childbirth, or related medical conditions can now include harassment related to an individual’s lactation, abortion, or contraceptive decisions if the harassment is linked to a targeted individual’s sex.  The new guidance also provides clarification on what is considered unlawful harassment under the Genetic Information Nondiscrimination Act (GINA), which includes “harassment based on an individual’s or an individual’s family member’s genetic test or on the basis of an individual’s family medical history.”

The EEOC also provides guidance on retaliatory harassment and provides a distinction between the legal standards for hostile work environment and retaliation.  The anti-retaliation provisions encompass a broader range of conduct including “anything that might deter a reasonable person from engaging in protected activity.”

This new guidance from the EEOC took effect immediately upon release so it is imperative that employers review their policies and procedures soon to ensure compliance with not only these new guidelines but any applicable state and local laws that may provide additional regulations, as well.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new guidelines and related litigation.  If you have questions, please contact your HRBP for assistance.  Additional information on the EEOC new guidelines outlined above can be found at the attached link.

The Minnesota Department of Employment and Economic Development (the “Department”) recently updated employer requirements under the Minnesota Paid Family and Medical Leave legislation that was signed into law last year.  This new legislation will provide paid family and medical leave for employees in Minnesota, beginning January 1, 2026.  This leave is a state administered program, overseen by the Department in which the state provides partial wage replacement as well as job protection for workers in Minnesota needing time away from their job to care for a serious medical condition, a family member’s serious medical condition, to bond with a new child, provide support for a family member who has been called to active military duty, or to seek help for themselves or a family member due to domestic violence, sexual assault, or stalking.  This paid leave program will cover most Minnesota employers with one or more employees, including part-time employees in this state, with few exceptions including self-employed individuals who choose to provide coverage for themselves.

These recently published updates include employer wage detail report submission obligations that are slated to begin October 31, 2024, which will reflect wages paid between July 1, 2024 and September 30, 2024.  The Department plans to release specific instructions for employers in the next couple of months, however, for employers already submitting quarterly wage detail reports within the unemployment system, no action will be required.  Those employers not covered by the unemployment insurance program will to be required to begin quarterly report submissions and will need to create a “Paid Leave Only” account in order to do so.  It is important for employers to note that the Paid Family and Medical Leave is a new program that is separate and distinct from the Unemployment Insurance program requirements.  This new Paid Leave program does not exclude the same employers that are otherwise excluded from Unemployment Insurance guidelines.

Additionally, the Minnesota Paid Leave is different from the Minnesota Earned Sick and Safe Time program which is administered by the Minnesota Department of Labor and Industry and went into effect on January 1, 2024.  As a reminder, this employer sponsored leave is sick and safe paid time off employers must provide to employees for various reasons including employee illness, for employees to care for a sick family member or for an employee or family member to seek assistance due to domestic violence, sexual assault, or stalking.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor this new law and related regulations and litigation.  If you have questions, please contact your HRBP for assistance.  Additional information on the distinction between the two leave programs outlined above can be found at the attached link.

On April 30, 2024, The City of Chicago Department of Business Affairs and Consumer Protection (BACP) published final regulations providing some clarity on the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance requirements, which are slated to take effect on July 1, 2024.  As first outlined in an Insights article last year, the original effective date for this new leave law was December 31, 2023, but was quickly delayed until July 1, 2024, due to logistical requirements surrounding the implementation and enforcement of these sweeping regulations.  The new Paid Leave and Paid Sick and Safe Leave Ordinance will require Chicago employers to provide employees with up to 40 hours of paid sick leave and up to 40 hours of paid leave for any reason.  Experts agree that while the final regulations help, employers may still be left with questions.  An outline of the major highlights from the regulations are as follows:

The Definition of a 12-Month Benefit Year or Period

The final regulations take a less rigid approach to the requirement that “[t]he 12-month period for a covered employee shall be calculated from the date the covered employee began to accrue Paid Leave and Paid Sick Leave.”  Employers are now allowed to determine a 12-month benefit period of the employer’s preference to set for an employee to receive Paid Time Off and Paid Sick Leave benefits, provided that the established 12-month timeframe consist of consecutive months such as the tax year, the calendar year, or anniversary date of employee’s employment.  The employer has the option to set different dates for each covered employee or require all covered employees to have benefits awarded on the same 12-month benefit cycle date, however the integrity of the leave regulations must be maintained.

The employer also has the option to front-load, or immediately grant covered employees at least 40 hours of paid leave or 40 hours of paid sick leave or both at the beginning of employment or the established benefit cycle year.  If the employer grants covered employees 40 hours or more of paid leave “no later than 90 days after the covered employee began working for the employer, the employer is not required to provide additional paid leave (until the following benefit year or cycle). If an employer grants covered employees 40 hours (or more) of paid sick leave no later than 30 days after the covered employee began working for the employer, then the employer is not required to provide additional sick leave” until the following benefit year or cycle.

Carryover Required

The regulations now require that employees be allowed to carryover up to 80 hours of accrued and unused Paid Sick Leave and up to 16 hours of accrued and unused Paid Leave from one 12-month benefits period to the next.  This carryover will be in addition to the Paid Sick Leave and Paid Leave the employee will earn in the subsequent 12-month benefit year.  Furthermore, as mentioned above, employers may frontload at least 40 hours of Paid Leave and at least 40 hours of Paid Sick Leave on the first day of the 12-month benefit period.  This frontloading method will absolve the employer from having to carryover paid leave hours but frontloading 40 hours of paid sick leave will NOT absolve the employer’s obligation to carryover the employee’s paid sick leave requirements from one benefit year cycle to the next.

Usage and Notification

Employers shall establish reasonable, written paid leave and paid sick leave policies, which include advance notice procedures and an outline of the reasons for potential leave request denials. Such policies should be made available in English and in any language that employees are literate and may be included in an employment handbook, a manual or separate document.  Covered employees shall be allowed to use accrued paid leave by the 90^th calendar day following the beginning of their employment and accrued paid sick leave by the 30^th calendar day following the beginning of their employment, regardless of the size of the employer or the number of employees employed by the employer.  If the employer allows for a more general or generous Paid Time Off policy, the employee shall be allowed to utilize all leave by the shorter 30^th calendar day timeframe, rather than the 90^th calendar day.

Employers are permitted to require that employees obtain “reasonable pre-approval” from the employer before using paid leave for “purposes of maintaining continuity of the employer operations.” A list of relevant factors are provided by the BACP to help employers evaluate operational needs.  Reasonable notice required from employees for use of paid leave shall not exceed seven days.  All denials of paid leave must be done in writing from the employer and must state the pre-established policy reasoning for the denial and be issued to the covered employee immediately upon the denial.

Employers must post the city created Notice poster, outlining the Paid Sick Leave and Paid Leave regulations which can be done through the employer’s usual course of communication and can include electronic dissemination or paper postings.  In addition, as a part of the on-boarding process or prior to the commencement of employment, all new hires should be notified in writing of the employer’s Paid Leave and Paid Sick Leave policies.

Should an employer elect to frontload leave time, written notification of the policy including available time off should be provided to the employee at the commencement of the 12-month benefit period.  Written notification is also required annually with a paycheck or stub issued within 30 days of July 1, every year, alerting employees to the employer’s Paid Sick Leave and Paid Leave policies.

Other regulation clarifications included in the new guidelines pertain to any changes to the employers’ paid leave policy notification requirements.  Employers are required to provide at least five calendar days’ notice before implementing any notification requirement changes.  Furthermore, employers now need to provide at least 14 days’ advance written notice to employees if a policy change will affect their right to final compensation for the paid leave under the payout requirements.  Employers are also required to provided notification to employees of the availability of paid leave and paid sick leave as well as the employee’s use of the leave in an updated and reasonable manner, such as regular paystubs, payroll statements, an updated on-line portal or even providing a handwritten record of available time.

This is just an overview of the clarifications provided by Chicago’s BACP on the Paid Leave and Paid Sick and Safe Leave regulations.  Employers are encouraged to review the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance as well as the prior Insights article for further information, including but not limited to payout requirements and how the new regulations interface with Collective Bargaining Agreements. Link to prior article?

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor this new law and related regulations and litigation.  If you have questions regarding the City of Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance regulations or the required Posting, please contact your HRBP for assistance.

As a follow-up to our last Insights article regarding the California Workplace Violence Prevention Act. We would like to remind you that California employers need to create and implement a Workplace Violence Prevention (WVP) Plan by July 1, 2024. The new law applies to all California employers, large and small, with the exception to the healthcare employers, who are already covered under Cal/OSHA’s existing healthcare WVP Standard.

For more information on Workplace Violence Prevention Plan, the Occupational Safety and Health Administration (OSHA) has released useful information for employers that can be found here.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business. If you have any questions regarding the California Workplace Violence Prevention Law requirements or updating your existing polices, please contact us.

Effective May 11, 2024, New York City now prohibits employers from entering into any type of agreement that shortens the statutory period by which an employee may file an administrative claim or complaint, or civil action, relating to unlawful discriminatory practices, harassment or violence under the New York City Human Rights Law, Admin. Code § 8-101, et seq. (NYCHRL).

Currently, New York City employees have one year from the date of the alleged violation to file a complaint with the NYC Commission on Human Rights for an unlawful discriminatory practice or act of discriminatory harassment or violence, and three years to file a claim of gender-based harassment. In addition, employees may initiate a civil action in court under the NYCHRL within three years of the alleged violation.

What Does the Ordinance Specifically Prohibit?

The new ordinance renders “[a]ny provision of an agreement involving an employer, employment agency, or agent thereof pertaining to terms of employment” that purports to shorten the periods in which either: (1) a complaint or claim may be filed with the NYC Human Rights Commission; or (2) a civil action may be filed in court as void and unenforceable. In other words, any provision, term, or language in an employment contract that claims to shorten an employee’s statutory time to file an administrative claim, or a civil lawsuit will now be deemed void. 

When Does the Ordinance Go into Effect?

The law became effective immediately on May 11, 2024.

Does the Ordinance Apply Retroactively?

The broad language used in the ordinance indicates that it was intended to apply to all employment agreements in effect prior to its enactment.

What should employers do now?

Given that the ordinance took effect immediately, companies with employees working in New York City should take inventory of their existing employment agreements to ensure compliance. Employers should also review their handbooks and other policies. Employers should also be aware that any such provisions in existing employment agreements are no longer enforceable.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor this new law and related litigation.  If you have questions, please contact your HRBP for assistance.

Modifications to Maryland’s Paid Family and Medical Leave Program: Maryland’s Paid Family and Medical Leave (PFML) program has undergone significant modifications aimed at enhancing employee benefits and aligning with federal standards. The revised law now mandates that eligible employees can take up to 12 weeks of paid leave for various qualifying reasons, including serious health conditions, caring for a family member with a serious health condition, and bonding with a new child. The program is funded through payroll contributions from both employers and employees, with the state providing detailed guidelines on the contribution rates and the administration process. Employers must ensure compliance with these changes by updating their leave policies and informing employees about their rights and responsibilities under the new law. Senate Bill 485, cross-filed with House Bill 571 and signed by the governor on April 25, 2024, updates Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program, initially established by the Time to Care Act of 2022. Effective October 1, 2024, the bill alters administrative deadlines, definitions, and components of the program’s administration. It authorizes the Maryland Department of Labor (MDOL) to set fees for private employer plans.

Key changes include:

• Delayed Implementation Dates: Required contributions start July 1, 2025, and benefit payments start July 1, 2026.
• Coverage and Eligibility: Employees must have worked at least 680 hours in Maryland over the four prior calendar quarters.
• Contribution Rate: Contributions are based on wages up to the Social Security wage base, with the rate set by February 1, 2025.
• Private Employer Plans: Employers must either use a state-approved program or an authorized insurance plan and may face application and renewal fees.
• Appeal Costs: If an employee wins an appeal against a private employer plan, the MDOL may charge the employer or insurer for appeal costs.

Draft regulations were issued in January 2024, with revisions anticipated. Full implementation of the FAMLI program remains uncertain, pending final regulations and further guidance from the MDOL. Find more information here.

Implementation of Pay Transparency Requirements for Job Postings: In a move towards greater workplace equity, Maryland has enacted new pay transparency requirements for job postings. Effective on 10/1/2024, employers are required to include the salary range or wage rate in all job advertisements. This legislation aims to address pay disparities and promote fairness in the hiring process. By making salary information readily available, job seekers can make more informed decisions, and employers are encouraged to set competitive and equitable pay rates. Employers should review and update their job posting practices to ensure compliance with this new requirement, potentially reevaluating their compensation structures to maintain market competitiveness and internal equity.

Introduction of a New Pay Stub Template: Maryland employers should prepare for the rollout of a new pay stub template designed to provide employees with more comprehensive and transparent information about their earnings. The updated template now requires detailed itemization of hours worked, rates of pay, deductions, and net earnings. This change is intended to promote transparency and help employees better understand their compensation. Employers must adopt this new template for all pay stubs issued moving forward. It is crucial to update payroll systems accordingly and ensure that the human resources team is trained on the new requirements to avoid potential compliance issues. Maryland employers should prepare for a new pay stub template aimed at enhancing transparency and providing employees with detailed information about their earnings. The updated template requires itemized details of hours worked, pay rates, deductions, and net earnings. This change is designed to help employees better understand their compensation. Employers must adopt this new template for all future pay stubs, update payroll systems, and ensure the human resources team is trained on the new requirements to avoid compliance issues.

Conclusion: These legislative updates reflect Maryland’s commitment to fostering a fair and transparent work environment. Employers must stay informed and initiative-taking in implementing these changes to remain compliant and support their workforce effectively. By revising leave policies, ensuring pay transparency in job postings, and adopting the new pay stub template, employers can navigate these changes smoothly while promoting a more equitable workplace.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business and will continue to monitor these new guidelines and related litigation. If you have questions, please contact your HRBP for assistance. Additional information on the New employment legislation in Maryland new guidelines outlined above can be found at the attached link.

Over the past few months, PrestigePEO has conducted compliance webinars highlighting recent and upcoming laws and regulations impacting employers. We have an upcoming webinar on Wednesday, May 29, 2024, on the intersection of ADA and FMLA and practical steps to achieve compliance. Register for the webinar below.