We recently released our 4th quarter Attraction and Retention Newsletter. This edition of the newsletter includes the following information:
Read the full article here: Attraction & Retention Quarterly Newsletter
Continue reading
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:
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
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.
Continue reading
CROWN acts prohibit discrimination based on an individual’s hair texture and style associated with a protected class, such as race. CROWN stands for “Creating a Respectful and Open World for Natural Hair.” Hair discrimination tends to disproportionately impact Black individuals, especially women, who wear hairstyles such as braids, twists, locs, Bantu knots, afros, and other hairstyles. CROWN Acts aim to prevent individuals from being subjected to discrimination by unfair workplace dress codes and grooming policies due to their hair texture or style.
Since 2019, many states (California, Colorado, Illinois, New York, etc.) and localities have enacted a CROWN Act, and more are likely to do so in the near future. Therefore, it’s essential that employers, especially those operating in states and localities with these laws, understand CROWN laws and their impact on their organizations and workforce.
Continue reading
The student loan repayment pause has given borrowers a break from paying for a few years, but starting this October, student loan payments will resume. This comes at a time when many American workers are feeling financially strained. Employers are poised to help employees prepare for repayment and help reduce their emotional and financial stress.
However, employers must be cognizant of finding the right balance for their workforce. While loan relief could help organizations attract and retain talent (often younger generations) impacted by student loans, repayment assistance may seem unfair to workers who do not have such debt.
Continue reading
On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).
To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. The DOL is proposing to increase the standard salary level from:
Colorado Law Expands and Clarifies Pay Transparency Requirements – On June 5, 2023, Colorado enacted a new law, Senate Bill (SB) 105, that expands pay transparency and related requirements under the Colorado Wage Equality Law. The new law is effective Jan. 1, 2024. Employers must make reasonable efforts to announce, post or otherwise make all job opportunities known to current employees before making a promotion decision. SB 105 also requires employers to provide current employees with information about the candidate selected for each job opportunity. Read more: Colorado Legal Update
The U.S. Supreme Court issued several consequential decisions as its most recent term ended, including addressing affirmative action programs in college admissions at Harvard University and the University of North Carolina. While these rulings will likely not directly affect employers, they may impact workplace diversity, equity, inclusion, and belonging (DEIB) initiatives, including how organizations promote and implement them.
When an employee is misclassified as an independent contractor instead of an employee, they are denied crucial benefits and standard labor protections under the Fair Labor Standards Act (FLSA). The FLSA, enforced by the U.S. Department of Labor (DOL) Wage and Hour Division (WHD), establishes standards for recordkeeping, overtime pay, minimum wage, and youth employment in the private sector and for federal, state, and local governments.
On Oct. 13, 2022, the DOL published a Notice of Proposed Rulemaking to rescind its 2021 independent contractor classification rule under the FLSA and replace it with new guidance for how employers should interpret employee or independent contractor status. The agency recently indicated that it will likely publish a final independent contractor rule in October 2023. The proposed revision is intended to reduce the likelihood that employees will be misclassified as independent contractors and improve clarity for employers. If the proposed rule comes into effect, it will likely impact most employers. Employers are not required to change how they classify employees until the DOL’s proposed rule is finalized.