Employee benefits are essential for attracting and retaining top talent, but they’re also one of the largest expenses for SMBs. Discover six strategies to balance costs while maximizing employee satisfaction and business growth, including how partnering with PrestigePEO can help.

Did you know 90% of job seekers prioritize employee benefits when choosing a role? Offering health insurance, retirement plans, and life insurance can set your small and medium-sized business (SMB) apart from the competition. Learn how partnering with PrestigePEO allows you to access premium benefits typically reserved for large corporations—without breaking the bank.

Remote work offers flexibility, but it also brings new compliance challenges for SMBs. From FLSA and FMLA requirements to multi-state tax complexities, managing remote teams requires careful attention to labor laws. Learn how PrestigePEO can simplify compliance and protect your business.

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.

Navigating these changes alone can be overwhelming. Partnering with PrestigePEO ensures your business stays ahead of regulatory shifts while offering robust HR solutions and employee benefits. Contact us today to learn how we can help your business grow and thrive in this changing landscape.

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 takeaways 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.

FMLA leave policies can be challenging, especially with evolving guidance like this. At PrestigePEO, we specialize in helping businesses stay compliant while supporting their employees’ needs. From managing leave requests to ensuring compliance with federal and state laws, we’re here to make HR easy and efficient for your business.

Discover how PrestigePEO can support your business. Contact us today to learn how we can help streamline HR processes and ensure compliance with confidence.

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.

As marijuana legalization continues to evolve, staying compliant with state and federal regulations can be challenging for businesses. PrestigePEO provides the expertise and tools to manage workplace policies, ensure compliance, and maintain a safe and productive work environment.

Partner with PrestigePEO to simplify HR compliance for your business. Contact us today to learn how we can help you adapt to regulatory changes, protect your business, and effectively support your employees.

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.

The passage of New York’s Equal Rights Amendment brings significant changes that businesses must address. PrestigePEO offers comprehensive HR support to help employers update policies, provide training, and ensure compliance with evolving workplace regulations.

Let PrestigePEO empower your business. Contact us today to learn how we can assist with policy updates, employee training, and fostering a compliant and inclusive workplace.

Do you know what benefits your employees value most? Research shows that health benefits remain a top priority. Learn more innovative strategies to deliver the four most sought-after benefits: health insurance, dental and vision coverage, retirement plans, and life and disability insurance. Support your workforce with the benefits they genuinely care about.

Labor laws play a crucial role in shaping workplace policies and operations. The Fair Labor Standards Act (FLSA) sets clear guidelines on overtime pay, defining exempt and nonexempt employees and ensuring eligible workers receive at least time-and-a-half pay for hours worked beyond 40 in a week.

Want to ensure your business stays compliant? Read our full article to learn more about these essential regulations and how they impact your organization.

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 5th, 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 11th 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.

Contact us with questions.

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.

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.

Reach out to PrestigePEO with questions about these laws.

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
   overnor 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.

Contact PrestigePEO if you have questions about these changes and how they impact you.

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

PrestigePEO is proud to announce that CEO and founding partner Andrew Lubash has been honored with the 2024 Michaeline A. Doyle Award, recognizing his outstanding contributions to the PEO industry. Each year at the National Association of Professional Employer Organizations (NAPEO) conference, industry peers and leaders select a recipient who exemplifies a “relentless spirit and commitment to excellence.” Learn more about this prestigious honor and Andrew’s impact on the PEO industry!

Choosing the right benefits package can be a game-changer for attracting top talent and keeping your employees happy. Learn how to select the most effective benefits for your workforce and business.

Businesses can now take advantage of new Secure 2.0 tax credits with certain 401(k) options, which encourage employers to offer retirement savings support. Changes include an employer contribution credit for employers with fewer than 100 employees that offer defined contribution plans. Find out more about retirement planning with a PEO.

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.

Need guidance on updating your PFML policy? PrestigePEO is here to support you every step of the way. Connect with one of our Compliance experts today to ensure your policies are clear and compliant.

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.

Let PrestigePEO help your business through these challenging times with expert support to keep your workplace safe and prepared for the future. Reach out to learn how we can help.

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.

Contact us to learn more about how PrestigePEO can support your compliance needs.

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.

Have questions about staying compliant? Connect with a PrestigePEO Compliance expert to see how we can support your business.

Learn how improving employee satisfaction can lead to better retention and a more engaged workforce. Our article offers actionable insights for business owners looking to increase workplace morale through meaningful benefits, clear communication, and thoughtful workplace culture. Especially during Open Enrollment, discover how the right strategies can improve your team’s overall satisfaction and your company’s success.

Running a business is tough, especially regarding managing HR, benefits, and compliance. Partnering with a PEO like PrestigePEO can lighten the load. Our guide explains why businesses choose PEOs to streamline operations, reduce costs, and stay compliant. Read more about how a PEO like Prestige can help your business thrive.

Effective September 30, 2024, the minimum wage for non-tipped employees in Florida increases to $13.00 an hour, and the required hourly wage for tipped employees increases to $9.98. This is part of a gradual increase that was approved by Florida voters in 2020. The minimum wage will continue to increase annually by $1 until it reaches $15 per hour for non-tipped employees and $10.98 for tipped employees, on September 30, 2026.

What Should Employers Do Next?

All Florida employers are required to post the current minimum wage in their place of business where an employee can see it.

Ensure compliance and peace of mind with PrestigePEO by your side. We’re dedicated to supporting your business and staying ahead of Department of Labor regulations, so you don’t have to. Partner with us today!

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.

Don’t let compliance challenges catch you off guard. Contact PrestigePEO to ensure your HR policies stay aligned with federal and state laws. We’re here to protect your business and guide you through the latest legal developments!

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 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

Stay Ahead of the Curve with the 9/11 Notice Act and other Compliance Legislation.
With final regulations defining business and institutional responsibilities set to be released soon, now is the time to ensure you’re prepared and compliant. Don’t wait—contact us to safeguard your interests!

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.

Don’t leave your business vulnerable—partner with PrestigePEO to navigate these regulations with confidence. Our team of compliance experts is here to provide guidance and ensure your workplace remains compliant with the latest legal standards.

Open Enrollment can be daunting for small businesses, but with the proper support, it doesn’t have to be. This blog explores how partnering with PrestigePEO can simplify the Open Enrollment process, ensuring your team gets the employee benefits they deserve. Find out how we help small and medium-sized businesses navigate this crucial period and set your business up for success.

Running a business is tough, especially regarding managing HR, benefits, and compliance. Partnering with a PEO like PrestigePEO can lighten the load. Our guide explains why businesses choose PEOs to streamline operations, reduce costs, and stay compliant. Read more about how a PEO like Prestige can help your business thrive.

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 only limited to owners, executives or upper management but also 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.

Refrain from letting compliance challenges hold your business back. Contact PrestigePEO today to ensure your HR practices align with all federal and local regulations. Let’s work together to protect your business!

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 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 Paleny, her employer had expressed strong dissatisfaction with Paleny taking 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 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 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 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 case 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.

Ensure your business is fully compliant with the latest regulations. Reach out to PrestigePEO today for expert guidance and support. Let us help you safeguard your business and streamline your HR processes.

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.

Stay ahead of the curve with New York City’s proposed pay data reporting requirements. Contact PrestigePEO today to get expert guidance on preparing for these changes and ensuring your business remains compliant. Let us help you navigate these new regulations with confidence.

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 (LINK- https://www.prestigepeo.com/perspective/perspective-may-2024/)

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 (LINK- https://dol.ny.gov/system/files/documents/2024/06/p691-to-pump-breast-milk-at-work-information-for-employers.pdf), 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 (LINK- https://dol.ny.gov/system/files/documents/2024/06/p690-your-rights-as-an-employee-to-express-breast-milk-at-work-.pdf ) 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.

Reach out to PrestigePEO for expert advice on aligning with these upcoming regulations and ensuring your business stays compliant. We’re here to help you understand and quickly implement the necessary changes.

Choosing the right health insurance broker for small and medium-sized business owners is essential, but it’s also a difficult task. It’s why we provided a detailed breakdown of how to assess services and ask the right questions to help business owners find the perfect benefits brokers for their business.

The FTC ruling was almost immediately challenged in court by Ryan LLC, the U.S. Chamber of Commerce, and a few other entities. On Wednesday, July 3, 2024, the U.S. District Court for the Northern District of Texas granted a preliminary injunction against the FTC for enforcing its non-compete rule.

However, the injunction was only granted on behalf of the plaintiffs in that case. Therefore, nationwide, the rule is still slated to go into effect on September 4, 2024. There is an additional case pending before another federal court which may result in a nationwide injunction. However, no ruling has been made in that case.

Evaluate your non-competes and other agreements that may contain non-compete language to determine your responsibilities should the ban go into effect. Contact us to learn how we can help your business remain compliant with legislative updates and all labor laws.

Stay in the know about the recently updated minimum wage requirements. For quick reference, the increases effective 7/1/2024 are as follows:

• Alameda, CAincreased to $17.00
• Berkeley, CAincreased to $18.67
• Emeryville, CAincreased to $19.36
• Fremont, CAincreased to $17.30
• Malibu, CA increased to $17.27
• Milpitas, CAincreased to $17.70
• Los Angeles, CA increased to $17.28
• Los Angeles County increased to $17.27
• Pasadena, CA increased to $17.50
• San Francisco, CAincreased to $18.67
• Santa Monica, CA increased to $17.27
• Chicago, IL (4 or more employees)increased to $16.20
• Chicago, IL (Tipped employees)increased to $11.02
• Montgomery County, MD (≥ 51 employees)increased to $17.15
• Montgomery County, MD (11 – 15 employees)increased to $15.50
• St Paul, MN(101 – 10,000 employees) increased to $15.57
• St Paul, MN (6 – 100 employees)increased to $14.00
• St Paul, MN (≤ 5 employees) increased to $12.25
• Nevadaincreased to $12.00
• Oregonincreased to $14.70
• Oregon (Urban)increased to $15.95
• Oregon (Non-Urban)increased to $13.70
• District of Columbiaincreased to $17.50
• Puerto Ricoincreased to $10.50

Keep up with these increases and implement payroll changes effectively by partnering with PrestigePEO today.

 

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 40-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. The district court also agreedTexas 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.

Make sure you follow all legislative updates and implement compliances best practices by partnering with a knowledgeable PEO.

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.

Salary exempt employees are workers who 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 work week.

The exemption from this overtime payment applies to those workers that are employed in the bona fide executive, administrative 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 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 HCE 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.

Get regular updates and insights about salary threshold changes by working with PrestigePEO.

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 25 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.

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 from the EEOC took effect immediately upon release, so employers need to review their policies and procedures to ensure compliance with not only these new guidelines but any applicable state and local laws that may

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.

Learn how partnering with PrestigePEO will keep you updated on the latest compliance and regulatory changes. Contact us to learn more.

Each new year brings a new set of trends in HR. In 2024, we’re seeing major shifts in the recruiting and retention spaces. Here are a few to keep your eyes on:

• Remote and hybrid work: Remote just isn’t going away. Businesses are trying to contend with the fact that many top employees now look for fully remote or at least hybrid positions to help them create a more flexible work situation. This is a big consideration in recruitment efforts.
• Better benefits: Fortune research found that today’s employees want better benefits over higher salaries. This means companies have to prioritize better health insurance and essentials like paid parental leave.
• Mental health and wellness: The well-being of employees also needs to be a priority for today’s businesses. With an uncertain labor market and a shifting economy, employees are stressed about the future. Invest in their mental health with ongoing wellness initiatives.
• Prioritizing soft skills: Gone are the days when employees are evaluated on what they can do. It’s become more important to think about how they do it. This means paying closer attention to soft skills like communication, critical thinking and empathy, which can improve the company as a whole.

Find out more about this year’s recruiting and retention trends with PrestigePEO. We provide a host of HR services to help you boost retention. Talk to us about strategies to keep your people.

Find out everything you need to know about managing political discussions at work, which become especially tense when there’s an election. Read our blog for more advice on managing the workplace in an election year.

As of April 23, 2024, the US Department of Labor (DOL) has finalized the new salary requirements for “white collar” salary-exempt and highly compensated employees. The new regulations will be incrementally imposed over the next few months.

New Thresholds and Deadlines:

• Raised salary thresholds for administrative, executive, and professional (EAP):
  • July 1, 2024: $43,888 annualized
  • January 1, 2025: $58,656 annualized
• Raised salary thresholds for highly compensated employees:
  • July 1, 2024: $132,964
  • January 1, 2025: $151,164

Action Items for Employers: Employers need to take steps to ensure compliance with the increased DOL thresholds. Identify the employees who may be affected by these thresholds so that you can plan for any changes necessary.

Deciding how to classify your employees can be difficult, and mistakes can be costly. PrestigePEO provides expert HR guidance so that you can make informed decisions, remain in compliance with regulations, and prepare for what comes next. HR consulting is an extremely valuable tool for employers. Learn more about our HR services below.

On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule banning virtually all noncompete agreements. The Rule makes noncompete clauses unlawful and states that it is unfair and prohibited for a person to enter into or enforce a noncompete clause. Certain exceptions apply to the types of workers and employers impacted by the Rule, as well as an exception for “senior executives.”

Employers should review any existing noncompete clauses in your company and prepare for the upcoming changes. Consider alternative agreements and take steps to prevent noncompliance.

The Rule is scheduled to become effective 120 days after publication, approximately September 4, 2024. However, lawsuits challenging the Rule were filed within hours of the FTC’s vote. This issue will likely be taken to the Supreme Court.

Learn more about our compliance services at the button below.

New York State Lawmakers have passed the 2024-2025 budget, which includes three provisions that employers need to plan for.

• Prenatal leave: Employers must provide 20 hours of paid prenatal leave yearly. This protected leave allows employees to make pregnancy-related medical appointments, such as procedures and tests. This is in addition to the paid sick leave that is already required. The prenatal leave law takes effect on January 1, 2025.
• Nursing leave: New York is also requiring paid nursing leave for mothers who need time to express breast milk during the workday. As of June 19, 2024, employers will be required to provide paid 30-minute nursing breaks.
• COVID-19 leave law: The COVID-19 leave law will end on July 31, 2025. Until then, employers are required to comply with the leave law.

Our team regularly provides compliance updates to PrestigePEO clients, informing them of necessary actions and providing essential assistance. If you’re ready for compliance support, contact us today.

In this recent webinar recording, the PrestigePEO compliance team provided in-depth insights into the final overtime rule and a final noncompete rule. If you missed this highly popular webinar, please download the recording to hear the important highlights. We will also be hosting follow-up sessions on this topic as the situation unfolds over the next few months. Stay tuned on upcoming editions of the PrestigePEO Perspective Newsletter to ensure you don’t miss any critical updates from our webinar series.

Hiring is a crucial part of any business, as your employees are integral to everything you do. As it’s impossible to predict how someone will perform in a role, it can be difficult to know which candidate to choose. Here are Rhonda Wheelous’ 5 simple tips to help you with your next interview!

1. Prepare an interview guide: When you prepare to interview candidates, start by preparing an interview guide with relevant, job-related questions to get a better understanding of the candidate’s skills. Ask a variety of questions to get a full picture of their behavioral and situational abilities. This guide will ensure that you have a roadmap of what to ask during your interview.
2. Take notes: It’s hard to remember everything that transpires in the meeting, so be sure to take notes. This will help you evaluate the interview.
3. Ask others to interview candidates: Having more than one opinion helps you be impartial and gain a well-rounded understanding of the candidate. Be sure to have more than one person interview the candidate.
4. Evaluate candidates: After interviews have concluded, meet with your colleagues and share your thoughts. Having more than one perspective is valuable during the interview process.
5. Make selections based on qualifications: With the interview gained from your conversation with the candidate, the opinions of your colleagues, and the candidate’s qualifications, you should be able to make an informed decision.

PrestigePEO can support you with guidance on interviews, developing job descriptions, and applicant tracking. Contact us today to learn more.

More than 1 in 5 US adults live with a mental illness. Join us in recognizing the importance of this month by sharing relevant materials with your team. Together, we can combat the stigma of mental illness.

The crisis and suicide hotline is 988. It provides 24/7, free, and confidential support for people in distress, prevention and crisis resources for you or your loved ones, and best practices for professionals in the United States. Mental health benefits are a highly desired benefit by many employees, and we’re proud to offer simple solutions to your needs. Our Employee Assistance Program and Monument Alcohol Counseling both provide helpful resources to those in need. Read more about the importance of mental health benefits at the link below.

PrestigePEO is excited to celebrate National PEO Week, which takes place from May 19-25! We will be attending NAPEO’s Capitol Summit in Washington, D.C. This event will allow leading PEOs like ours to meet with lawmakers and educate them on the critical role that PEOs play in supporting businesses across the country. PrestigePEO is always proud to offer competitive employee benefits, efficient administrative support, and helpful HR resources. We will continue to make strides and grow our clients’ businesses to new heights.

Ready to learn how a PEO can benefit your business? Read the blog post below.

There are so many everyday tasks that business owners must manage. All are important, but it’s challenging to find a balance so that you can accomplish your business goals. Rather than hiring multiple service vendors, and trying to coordinate with different teams, business owners can utilize the valuable solutions of a PEO. Below, we’ve illustrated just some of the pain points that a PEO can solve.

Get started today – let us show you how we can solve your problems.

Are you actively updating job descriptions for your staff? It’s a given that the job descriptions you post for new roles you’re actively recruiting for are updated frequently. But what about your employees who are currently working at your company? Job roles evolve as employees settle and grow into their positions; these roles organically change, and it’s essential to keep these job descriptions updated. HR help like this is invaluable for busy business owners, and this is just a fraction of the kind of support you’ll get when you partner with PrestigePEO.

Here are 3 reasons why you should have updated job descriptions:

• Job descriptions are useful tools for communicating clear expectations regarding the tasks an employee is responsible for performing.
• Provides a framework for determining an employee’s performance.
• Job descriptions are helpful when creating job postings during recruitment if the position becomes open again.

At PrestigePEO, we provide a dedicated team of HR professionals who will offer the proper guidance to ensure your business is proactive and at the forefront of all the best practices regarding your HR operations. Ready to see what a partnership with PrestigePEO can do for your business? Contact us today.

I-9s are important for businesses to verify work authorization, but there are unfair practices that employers must be aware of.

Did you know that “overdocumentation” is possible? Even if a worker willingly presents more documentation than is necessary, it can be considered document abuse if the employer accepts all of it. Employers must be careful to record only List A documents or a combination of Lists B and C. If too many documents are presented, do not record the unnecessary documents.

Did you know that it’s possible to accidentally limit the range of I-9 verification documents? If an HR professional says, “Please bring in your I-9 verification documents, such as a driver’s license and your social security card,” it can be misconstrued as making a mandatory request. The best practice for HR professionals is to provide the list of accepted documents and allow the employee to choose what is best for them.

Looking for more valuable HR advice? We can help. Contact PrestigePEO today.

According to a recent report by ComPsych, anxiety is now the top mental health issue in the workplace. “As the number one presenting issue reported by U.S. workers, anxiety now tops depression, stress, partner or relationship issues, family issues, addiction, and grief, among other subjects that people seek help coping with,” the report stated. To support their employees, businesses should focus on promoting a healthy culture as well as offer mental health benefits. Read more about the importance of mental health benefits at the link below. If you’re interested in expanding your employee benefits offerings, PrestigePEO can help you access top-quality benefits at low prices.

On behalf of our clients, PrestigePEO monitors the compliance landscape for regulatory changes that may affect employers. Below are some pressing legislative updates that may affect your business. Take a look at the list below and learn more about our compliance services here.

• Recent Pay Transparency Legislation
• NLRB’s Joint Employer Rule Struck Down Days Before It Was Slated to Take Effect
• New York City Considers its Own Ban on Non-Compete Agreements
• Proposed New York Legislation Seeks to Strengthen AI Bias Audit Law and Add Other Workplace Protections

Do you have remote workers? If so, keep an eye on pay transparency legislation. More and more states have enacted legislation related to pay transparency. Though each law is different, these laws require businesses to disclose a mix of the following elements on their job postings:

• Employee benefits
• Salary information
• Salary information for internal job transfers
• Annual pay data reporting to state agencies

More than a dozen states have active and soon-to-be-active legislation related to pay transparency. Even more states have pay scale legislation in the works pending approval. Employers should double-check pay transparency laws in their states and the states of their remote workers.

A federal judge in Texas has struck down the National Labor Relations Board’s (NLRB) controversial joint employer rule days before it was slated to take effect. This law was intended to make it easier for workers to be considered employees of more than one entity for labor relations purposes. If it had gone into effect, it would have resulted in increased union organizing and collective bargaining across the country. The NLRB will likely file an appeal, and this conversation will continue to be debated in court. Though legislation has not changed yet, employers should review their policies regarding the role and authority of third-party vendors to avoid any uncertainty in the future.

New York City lawmakers are considering a ban on non-compete agreements that will affect employers in NYC. If passed, this law would prohibit employers from requiring employees to sign non-compete agreements. It would further require employers to withdraw any existing non-compete agreements. The proposed bill defines non-compete agreements as an “agreement between an employer and a worker that prevents, or effectively prevents the worker from seeking or accepting work for a different employer, or from operating a business after the worker no longer works for the employer.” Employees are defined as “any person who works for an employer whether paid or unpaid, including those workers classified as independent contractors.” PrestigePEO will continue monitoring this situation for further updates.

The trend for legislators to rein in the power of Artificial Intelligence (AI) continues – New York law makers are considering further AI proposals. Currently, New York City already has an AI bias law in effect. The proposed changes would implement the following if passed:

• Employers would need to release an annual AI bias audit report.
• Employers would need to notify applicants and workers if AI tools played a role in employment decisions.
• The legislation would cover resume screening tools, AI interview products, candidate ranking software, performance assessment tools, and more.
• The bill would put restrictions on employers’ ability to surveil and monitor employees.
• Applicants and employees could have the right to sue if they feel their rights related to AI were violated.

As AI continues to increase in popularity, so has related legislation. Employers should monitor developments on these proposed bills and be cautious about AI usage.

“America’s voluntary, employer-based retirement system has left nearly half of American workers without access to a retirement savings plan at work,” according to a recent report. Enrollment in retirement savings plans at a person’s place of work has been discovered to be a crucial factor in whether or not individuals are saving for retirement. Many Americans will face retirement insecurity if the business chooses not to offer a 401(k) plan.

As 401(k) plans can be difficult and expensive to administer, it is challenging for small business owners to provide. At PrestigePEO, we specialize in assisting business owners in offering affordable, easy-to-manage retirement accounts. Learn more about our retirement services below.

As workplace practices and culture evolve, the topic of pay equity has become increasingly important. With current legislation in place to correct these issues and more potentially on the horizon, it’s crucial to have these conversations in your business. Implementing pay equity and diversity initiatives as a whole can be challenging for small and medium-sized businesses. At PrestigePEO, we’re committed to supporting and assisting in these initiatives.

Review some of these recommendations from SHRM for establishing pay equity practices within your workplace:

• Create transparent compensation systems and objective metrics around recruitment, performance, advancement, and compensation to help ensure consistency.
• Communicate regularly and honestly with employees about the metrics and their progress to build trust within the entire organization.
• Train all decision-makers about the compensation system and teach them how to properly document decisions.
• Consider implementing standard pay ranges or guidelines for each position or job classification.
• Keep job descriptions up-to-date to ensure that the work being done and the skills required to do the work are accurately reflected.

Pay equity and diversity as a whole can be challenging to implement in your business, and PrestigePEO is happy to assist with these initiatives. Explore our diversity center here to learn more about our approach, and contact us to learn how we can support your business.

Have you revisited your employee handbook lately? PrestigePEO suggests conducting an annual review of your handbook. Given the evolving landscape of policies and laws, it’s prudent to verify that your handbook reflects the latest changes.

When you collaborate with PrestigePEO, we can assess your handbook, offer suggestions, and assist in updating any pertinent information. Learn more about a PEO partnership here.

Here are the areas we advise updating in your employee handbooks for 2024.

• Policies that need updating:
  • Harassment and Discrimination
  • Timekeeping
  • Lactation Accommodations
  • Pregnancy Disability Leave of Absence and Accommodation
  • Alcohol and Drug Policy
  • Personnel Records
• State & local laws: There may be updates to state or local laws that affect your handbook policies. It’s important to keep these updated and in compliance. PrestigePEO can assist with these updates.

With us by your side, creating handbooks becomes manageable and stress-free! Contact us today to learn how we can help.

It’s an election year, and this means that employers should prepare for election stress to enter the workplace. Though ideally, your employees would not bring politics to the workplace. Exercise caution when prohibiting behaviors that could fall under free speech, as it is protected. Further, if you discipline an employee for political activity in the workplace, this could become an issue that triggers antidiscrimination laws, especially if the conversation involves race, sexual orientation, gender identity, and other protected identities. Finally, ensure that you are complying with your state’s election policies. Many states require that you allow employees a certain amount of time to vote.

It’s important to keep these considerations in mind as election season nears. With PrestigePEO, you get the benefit of a compliance department to help you make informed decisions at your workplace. Learn more today.

Remote work is here to stay, and it provides many benefits for both employees and employers. However, it presents some challenges that employers need to be aware of. One risk of a fully remote employee is hiring an individual who turns out to be someone other than who they claimed to be. This can be achieved by a bait-and-switch scenario, where you interview one person who turns out to be a friend or relative of the person you hired. The FBI has also received reports of people using manipulated video, images, or recordings, known as deepfakes. These bad actors use stolen identities to apply to fully remote jobs and may be targeting positions that have access to sensitive customer and employee data.

So, how can employers avoid these scenarios? Here are some best practices to follow.

• Cameras on. When interviewing a candidate, have a “camera on” policy. If a candidate is reluctant to turn their camera on, don’t move forward with the candidate. Implement a camera on policy for company meetings as well.
• New policies. For fully remote candidates, implement a policy that states they are the same person who went through the interview process, and they will not subcontract any work to another individual. Further, have them agree to keep cameras on during calls and meetings.

These policies are crucial for keeping your workplace safe. For more compliance help, partner with PrestigePEO today.

The business landscape is rapidly evolving, and technology is constantly advancing. Staying ahead in human resources requires embracing cutting-edge technologies, especially for small and medium-sized businesses. In this digital transformation era, Artificial intelligence (AI) in HR has emerged as a game-changer in reshaping HR practices. In fact, AI has become necessary for SMBs striving to compete in today’s dynamic marketplace. In our latest blog post, we’ll discuss how SMBs can utilize AI for success in many workplace areas. Hit the link below to learn more.

Employers today must keep up with the changing times to retain their top employees. One of the most important facets of employee retention is knowing what employee benefits are most desirable. The 2024 Future of Benefits Report  from Care.com has shown some interesting statistics about what your employees want most.

• 1 in 5 employees have left a job because their employer didn’t provide family care benefits
• 56% of employers are prioritizing childcare benefits in 2024
• 50% of employers are prioritizing senior care benefits in 2024

These statistics demonstrate how important caregiving benefits are to your employees. Partnering with a PEO helps your organization access top employee benefits at fair prices. Learn more about our employee benefits at the link below.

Everyone is feeling the strain of inflation, especially your employees. According to a recent study, 53% of employees feel that their salaries are not keeping up with inflation. How can employers help their teams feel valued and supported during severe inflation?

First, it’s crucial to give salary increases where possible to those who demonstrate exceptional work. Second, financial wellness tools can be extremely helpful, and many employees may not be aware of what resources are available. Having the support of a PEO can not only give your business access to financial wellness tools but also provide you the support to spread awareness about these resources. Having access to expert HR advice is incredibly important, especially during times of inflation and stress. Contact us today to learn how we can help guide you.