Winter is the busiest time for many organizations. According to the U.S. Bureau of Labor Statistics, retailers added 509,300 jobs during the 2022 holiday season alone.

Many employers hire seasonal workers to help manage the demands of the holiday season. For example, online retailers often see a surge in activity around the holidays, as do organizations in hospitality. Yet, bulk hiring workers can present unique challenges for employers, who often must recruit and train employees in a short period of time. While these employees may only be employed for the holiday season, they represent an employer’s brand and can meet the demands and obligations of customers, which ultimately affects an organization’s bottom line.

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The call from workers for pay transparency and equity has never been louder or more essential than it is today. Pay transparency is the practice of openly sharing compensation information, such as pay rates and salary ranges, with applicants, employees, and sometimes the public; pay equity is the process of reducing salary disparities among workers performing substantially similar work.

Employees value pay transparency and equity because they provide workers with a clear understanding of how their compensation is determined, helping to develop trust with their employer and improve morale, job satisfaction, and overall well-being. They can also empower employees to make more informed career decisions, negotiate competitive wages, and advocate for themselves effectively.

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California Extends Reach of Prohibition Against Restrictive Covenants – On Sept. 1, 2023, California adopted Senate Bill (SB) 699 and expanded noncompete employee protections by declaring that noncompete agreements that restrain individuals from engaging in a lawful occupation are void, regardless of where and when the contract was signed. SB 699 becomes effective on Jan. 1, 2024. Read more: California Legal Update

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The EEO-1 Report is a federally mandated survey that collects workforce data categorized by race, ethnicity, sex, and job category. Under Title VII of the Civil Rights Act (Title VII), employers with 100 or more employees and certain federal contractors must report this data to the Equal Employment Opportunity Commission (EEOC) by March 31 every year.

However, the collection of this data from 2022 has been delayed. The EEOC expects to open the portal for employers to begin entering 2022 information on Oct. 31, 2023. The deadline for employers to complete their submissions of 2022 information is Dec. 5, 2023.

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The federal Fair Labor Standards Act (FLSA) requires employers to compensate their non-exempt (hourly) employees for all hours of work. To comply with this requirement, employers must keep track of the number of compensable hours employees work during a workweek.

Time in Training, Meetings, and Lectures – In general, employee attendance to lectures, meetings, training programs, and similar activities is considered compensable time unless all of the following are true:

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In recent years, more employers have become adaptable to remote and hybrid work environments. While some employers have continued to embrace flexible work arrangements, many are requiring employees to return to in-person work. Even though some organizations do not offer flexible work arrangements, there may be situations when they need to allow workers flexibility as an accommodation under various employment laws, including the Americans with Disabilities Act (ADA).

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We recently released our 4th quarter Attraction and Retention Newsletter. This edition of the newsletter includes the following information:

• Labor Market Moderates as 2023 Continues
• Employee Wellness as a Recruitment Factor
• Winning Over Generation Z
• Workplace Outlook Including Recent BLS Data

Read the full article here: Attraction & Retention Quarterly Newsletter

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The majority of companies with employees in Illinois (outside of Chicago) will need to make changes to their vacation, sick, or PTO plans before January 1st. In March 2023, Illinois enacted the Paid Leave for All Workers Act, which requires most Illinois employers to provide their employees with up to 40 hours per year of paid leave for any reason.

Among other factors, companies can comply with the law by changing their existing time off policy to:

• Indicate that the time off can be used for any reason; and
• Indicate that the first 40 hours of time off each year will count towards the Illinois paid leave entitlement

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California Updates EITC Employer Notification Requirements – On July 10, 2023, California adopted Senate Bill (SB) 131 to update requirements for employers to notify their employees that they may be eligible for the earned income tax credit (EITC). Employers must comply with these new notification requirements beginning Jan. 1, 2024. Read more: California Legal Update

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On Aug. 23, 2023, the IRS released the affordability percentage threshold for 2024 plan years under the Affordable Care Act’s (ACA) pay-or-play rules. For plan years beginning in 2024, employer-sponsored coverage will be considered affordable under the ACA’s pay-or-play rules if the employee’s required contribution for self-only (employee-only) coverage does not exceed 8.39% of their household income for the year.

This is a significant decrease from the affordability percentage for 2023 plan years (9.12%) and the lowest this percentage has ever been set since the pay-or-play rules became effective. Applicable large employers (ALEs) will need to consider this affordability percentage in developing their health plan contribution strategies for the 2024 plan year. ALEs may have to reduce the amount they require employees to contribute in 2024 to meet the lower percentage.

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