Reminder: New York Pay Transparency Law was Effective September 17, 2023

As previously communicated in our compliance webinar and in our monthly Insights newsletter, as of September 17, 2023, employers with four (4) or more employees must disclose the compensation range or exact compensation for both internal and external job postings on internal platforms and third-party platforms, including but not limited to, newspaper advertisements, printed flyers, social media postings, targeted emails to applicant pools, and/or job posting websites. This law applies to jobs that are physically performed in New York and to jobs that are physically performed outside of New York but report to a supervisor, office, or worksite location located in the State of New York.

The compensation range cannot be open-ended and must include either the minimum and maximum annual salary amount or the hourly range of compensation for the advertised position. Additionally, if there are multiple open positions covered under one job posting based on location or seniority of the position, the compensation range must be provided for each specific location or level of seniority.

Recent Updates by New York Governor Hochul

Prevention of New York Employers from Terminating or Discriminating Employees for Refusing to Attend Certain Meeting Types

In September, New York amended an existing discrimination law (NY Labor Law 201-D) which already prohibited discrimination based on political activities, union membership, and the use of cannabis while not at work. The law now also prohibits employers from retaliating and discriminating against employees for not attending “captive audience” meetings where the main purpose is for management to express its view on certain political or religious matters, including union membership.

The new law defines political matters to include topics relating to elections for political office/parties, legislation, regulations, and, significantly, the decision to join or support labor organizations. Religious matters are defined as subjects relating to religious affiliations and practice, and the decision to join or support any religious organization or association.

The amended law does not prohibit employers from communicating information to employees that is required by law or is necessary for the performance of any employee-specific job duties.

New York State posting notices have been updated to reflect this change. As part of your poster subscription with PrestigePEO, you will receive these updates directly from the vendor shortly.

Wage Theft

Governor Hochul also signed a new bill in September amending the New York Penal Law to add wage theft as a form of larceny. Employers can now be charged with larceny for failure to pay employees wages at the minimum wage rate, overtime rate, or promised rate for work performed. New York law already provides for criminal penalties for wage theft. This amendment allows prosecutors to aggregate claims of non-payment or underpayments, which can result in stronger penalties for employers who steal employee wages.

Gender Identity or Expression for Interns

New York has added gender identity or expression as a protected class for interns. The law already protected employees from gender identity or gender expression discrimination. The new law merely expands the protected class to include interns.

Please reach out to your HRBP if you have any questions or concerns.

Our Prestige Perspective newsletter will share our ideas for inspiring your team, provide answers to frequently asked questions, and keep you updated on the HR information you need to know. We hope you find this newsletter helpful! If you have any questions or would like to learn more about partnering with PrestigePEO, please feel free to contact us at any time.

Have you considered the value a PEO could bring to your business? We know that owning a business is difficult. That’s why PrestigePEO believes in supporting business owners. With expert support for HR tasks, employers never have to face a human resources challenge alone. During National PEO Week, discover how PrestigePEO will bring your business to new heights.

With an array of resources, a PEO can help organizations grow through premium HR services, including Fortune 500 employee benefits, compliance and risk mitigation, and more. Read our blog to see the “Top 4 Reasons Small Businesses Should Partner with a PEO” and to learn how you can use PEO services to grow your business.

The National Association of Professional Employer Organizations (NAPEO) polled nearly 600 SMBs about what challenges them most. Click to see what an SMB owner’s biggest challenges are, and how PrestigePEO can help you overcome these obstacles.

Did you start your business to manage payroll, benefits admin, and other HR tasks? You might not have, but PrestigePEO did. With a PEO managing HR functions and providing expert guidance, you have the support and freedom to grow your business. Learn how PEOs can give employers like you the peace of mind they deserve.

This National PEO Week and always, PrestigePEO supports your good ideas. We know that you started your business because of your bright concepts. But your plan was derailed by HR tasks. PrestigePEO does the heavy HR lifting with a variety of innovative human resource services. See our video blog to learn how PrestigePEO supports you and your business development goals.

Our team of HR professionals is honored to be at the PEO Capitol Summit in Washington, DC. Held by the NAPEO, PrestigePEO will join fellow industry leaders to discuss innovative healthcare, employee benefits, and compliance solutions.

As of April 1st, our partnership with EmblemHealth will be terminated. All current EmblemHealth subscribers will be transitioned to a similar plan offered by Aetna Health. In this helpful webinar, we will discuss the benefits of partnering with Aetna and your network of doctors, specialists, health and wellness perks plus more.

In this session, we will review the following:

• The Aetna network
• The perks of Aetna
• FAQs

As previously signed into law earlier this year both New York public and private employers were required to provide their workforces with up to four (4) hours of paid time off to receive the COVID-19 vaccine. The leave is only available for an employee’s own receipt of the COVID-19 vaccine; the leave must be paid at the employee’s regular rate of pay; and other existing leave options available to employees may not be substituted, such as vacation or sick time.

Just recently the New York State Department of Labor published further guidance clarifying the applicability of COVID-19 booster shots under this paid time off. Although the CDC has not yet included booster shots into the definition of “fully vaccinated”, in New York paid leave for COVID-19 vaccination applies to “any COVID-19 vaccination received by an employee, including booster shots”.

New Jersey employers should make note that as of January 1, 2022, the New Jersey Commissioner of Labor and Workforce Development has set to increase both the maximum weekly temporary disability benefit rate as well as the taxable wage base as outlined below:

• Employee taxable wage cap increase from the current $138,200 annually to $151,900 annually.
• Employer taxable wage cap will increase from $36,200 annually to $39,800 annually.
• The disability benefit itself will increase from the current amount of 85% of the employee’s salary up to a weekly maximum of $903 to a maximum of $993.

Additionally, in accordance with the New Jersey Unemployment Compensation Law, the temporary disability employee contribution rate will decrease from .47% of their NJ taxable wage base to .14% of their NJ taxable wage base.

Due to the state’s simultaneously imposed benefit increase and employee contribution decrease, the difference of .33% NJ taxable wage base rate will be transferred from the employee rate to the employer rate.

These new rates will automatically be applied via PrestigePEO’s payroll system, but should you have any questions concerning this information please reach out to your Payroll Specialist for assistance.

The Washington State Long-Term Care Program, known as the “Washington Cares Fund,” originally established in May 2019 by the Long-Term Services and Supports (LTSS) Trust Act, is on track to begin as of January 1, 2022.

What is it?

This is the nation’s first public state-operated long term care insurance program for which the benefits, up to $100/day, up to a maximum lifetime limit of $36,500 (to be adjusted annually for inflation), will first become available to individuals as of January 1, 2025.  The premium is funded via a .58% payroll tax on all employee wages ($0.58 per $100 earned), for which there is no cap, beginning January 1, 2022. This premium assessment is remitted to the Washington State Employment Security Department (ESD) as part of the employer’s quarterly reporting, but the good news for the employers themselves is that they are not required to contribute to the program.  Employers can face penalties, as of yet undetermined, if they do not comply with the law, however.

Employees will be fully vested in the program by having worked and contributed to the fund for at least ten years without a break in service of 5 or more years, or 3 of the last six years; and, at least 500 hours per year during those years.

Who is eligible?

All employees employed in the state of Washington, age 18 or above, are required to pay the tax into the program so that even out-of-state employers with employees in the state must collect and remit these premiums.  Exceptions to this rule are self-employed individuals, employees of a federally recognized tribe, union employees party to a collective bargaining agreement in existence as of October 19, 2017 (unless or until the existing agreement is reopened, renegotiated, or expires), and employees who qualify for an exemption.

Can Employees Opt-Out of the Program?

Currently, an employee may opt-out of the program and the corresponding associated taxes and benefits only if the employee is at least 18 years of age on the date they apply for exemption, and the employee attests that they already have in place another qualifying, private long-term care insurance prior to November 1, 2021. The employee must apply for and receive the exemption with the Washington State Employment Security Department (ESD) by no later than December 31, 2022, and they should also be aware that the opt-out choice is permanent, even if they should change jobs in the future. If the employee is granted an exemption by the ESD, they will receive proof of the approval which must be provided to their employer so that the payroll tax withholding may be stopped.

Further, employers should be prepared, as of January 1^st, to withhold the applicable payroll tax for any employees who do not obtain an exemption as well as implement a process for maintaining exemption approval copies and tracking them.  For any questions or concerns regarding this program, please note the attached link here:  https://wacaresfund.wa.gov/employer-resources/ and as always, feel free to reach out to your Payroll Specialist, who will work with you to ensure compliance with the required quarterly reporting.

As Massachusetts employers are aware, on January 1, 2021, the state rolled out its Paid Family and Medical Leave (PFML) program to implement the first phase and most benefits available to employees for managing a personal illness or serious injury as of that date. Then again, the second phase of the program, with benefits to care for a family member with a serious health condition, was made available as of July 1, 2021.  The program benefits must be provided by all Massachusetts employers regardless of size.

Funding for this program is based upon contribution percentages from both employee wages and the employers themselves.

As of January 1, 2022, the maximum employee weekly benefit amount is increasing from $850.00/week to $1,084.31/week, while the contribution rate has decreased from .75% to 0.68% of eligible wages.

Employers with 25 or more covered individuals must remit a contribution to the Department of Family and Medical Leave of 0.68% of eligible wages. Up to 0.12% of eligible wages for an employee’s family leave contribution may be withheld, and 0.224% of eligible wages for an employee’s own medical leave contribution may be withheld. The remaining 0.336% is the required employer contribution.

Employers with fewer than 25 covered individuals must remit a contribution rate of 0.355% of eligible wages. Up to 0.12% of eligible wages for an employee’s family leave contribution may be withheld, and 0.224% of eligible wages for an employee’s own medical leave contribution. For employers with fewer than 25 covered individuals, there is no employer share of medical leave required.

Employer policies and payroll systems must be reflective of these changes.  As such, Prestige will make sure that clients affected by these revised employer contribution percentages contain the proper set-ups within their individual payroll systems. Should you have any questions or concerns about this update, please reach out to your HRBP or Payroll Specialist as needed.

The U.S. workforce continues to adjust following the unprecedented impacts of the COVID-19 pandemic. By the end of the year, all New York State employers with employees working outside of New York City should be on alert as minimum wage and overtime-exempt salary levels will rise.

The change applies to businesses of all sizes. The following data was announced in a report from the New York State Division of Budget on September 22, 2021.

As of December 31, 2021, both the New York State minimum wage rates and exempt salary levels for employees working outside of New York City will increase as follows:

• Minimum wage for non-fast food workers
  • Nassau, Suffolk, and Westchester counties: $15.00 per hour
  • Remainder of the state: $13.50 per hour

• Tipped employees in the hospitality industry
  • Nassau, Suffolk, and Westchester counties:
    • Food Service: $10.00 cash with $5.00 tip credit per hour
    • Service Employees: $12.50 cash with $2.50 tip credit per hour (NOTE: $3.25 tip threshold for non-resort hotel employees; $8.40 tip threshold for resort hotel employees)

• Minimum salary levels for overtime-exempt executive and administrative employees
  • Nassau, Suffolk, and Westchester counties: $1,125 per week ($58,500 annually)
• Remainder of the state: $990 per week ($51,480 annually)

Please be sure to carefully assess the current annual salaries of your overtime-exempt employees to assess whether they are, or will remain, classified correctly. Your HRBP can assist you with any questions you may have in this matter.

Voluntary Benefits –

Blurb: The key to keeping top employees? Consider offering voluntary benefits. Learn how to give your workers power over their health care and financial decisions.

U.S. Department of Labor Raises Labor Law Posting Penalties

As of last month, September 2021, the Equal Employment Opportunity Commission (EEOC) issued a final rule that increases the maximum penalty for an employer that fails to post, or improperly posts, the “EEO is the Law” poster. These notices are included within the federal and state labor law all-in-one posters provided by PrestigePEO.

As all employers should be aware federal regulations require the U.S. Department of Labor (DOL) to adjust its penalties for inflation each year. As such, the maximum penalty is now over $36,000.00. Employers will remain compliant if they make sure to conspicuously display up-to-date labor law posters in common viewing areas within their worksite location(s).

Florida Business Reporting Requirement

Governor DeSantis signed into law Senate Bill 1532 effective October 1, 2021. This new bill requires Florida businesses to submit information regarding newly hired independent contractors who are paid $600 or more per calendar year for services rendered, in the course of their trade or business, to the Florida Department of Revenue. Previously, the reporting on the use of independent contractors by a business was optional.

The reporting, which may be completed electronically, is required within 20 days of the first payment to the independent contractor or on the date in which the business and independent contract entered into a contract together, whichever occurs first.

Massachusetts COVID-19 Emergency Paid Sick Leave Extended

On September 29, 2021, an Act extending COVID-19 Massachusetts Emergency Paid Sick Leave was signed into law. Two modifications include:

• An extension of the program until April 1, 2022, or until the exhaustion of $75 million in program funds, whichever is earlier
• Effective October 1, 2021, employees are permitted to use this leave to care for a family member who needs to obtain a COVID-19 vaccination or recover from a COVID-19 vaccination

Employers must continue to offer employees leave time for qualifying reasons related to COVID-19. It is important to note, employees who have already used their 40-hour entitlement will not be entitled to any additional leave under the statute. The law does not address how many times an employee can take leave but there is a cap with respect to the total hours (40) they may take.