The year 2023 brought about significant shifts in the employment law landscape, impacting how organizations navigate the complex web of regulations governing workplaces. The U.S. Supreme Court issued several consequential decisions in 2023, and these and other rulings may have major impacts on employers, altering established labor and employment laws and workplace practices.

As 2024 begins, it’s crucial for employers to be well-versed in employment law changes to ensure compliance and mitigate legal risks. This article recaps important employment law changes that occurred in 2023, equipping employers with the knowledge needed to navigate the evolving landscape.

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Effective communication is crucial to fostering a positive relationship between employers and employees. It can show employees they’re valued and heard, improving employee satisfaction and retention. Conversely, poor communication can lead to workplace inefficiencies, foster employee discontent, and create engagement and retention issues. These concerns can significantly impact workplace productivity and organizational revenue; according to a 2022 study by Grammarly and the Harris Poll, organizations lose about $1.2 trillion yearly due to ineffective communication. To combat the struggles of poor communication, this article provides an overview of common employee communication mistakes and discusses how to avoid them.

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In late 2023, employers across the country completed the 2023 Attraction and Retention Employer Pulse Survey. Respondents were surveyed regarding attraction and retention challenges, workplace strategies and voluntary benefits.

The survey provided significant insights into how attraction and retention issues present a persistent operational challenge for organizations and detailed the strategies employers are pursuing to compete in today’s labor market. This benchmarking overview compiles employer responses to these questions and provides some general takeaways for employers as they prepare for the talent market in 2024.

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On Jan. 9, 2024, the U.S. Department of Labor (DOL) released a final rule, effective March 11, 2024, revising the agency’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). This final rule rescinds the current independent contractor rule that was published on Jan. 7, 2021, and mirrors the DOL’s proposed rule.

2021 Independent Contractor Rule – The DOL published the 2021 Independent Contractor Rule on Jan. 7, 2021. The 2021 rule reasserted the economic realities test (ERT) as the DOL’s preferred method to determine whether a worker should be classified as an employee or independent contractor under the FLSA. In doing so, the 2021 rule focused on two core factors: the nature and degree of the worker’s control over the work; and the worker’s opportunity for profit and loss based on initiative and/or investment. These factors carried more weight in determining the status of independent contractors.

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California Updates Paid Sick Leave FAQs and Employee Notices – In advance of changes to the state paid sick leave requirement taking effect Jan. 1, 2024, the California Division of Labor Standards Enforcement (DLSE) has updated its answers to frequently asked questions (FAQs) about paid sick leave, as well as the paid sick leave poster and employee notice.

Read more: California Legal Update

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On Dec. 20, 2023, the IRS issued Notice 2024-2, providing guidance in the form of questions and answers with respect to various provisions of the legislation known as the “SECURE 2.0” Act.

• Background – The Consolidated Appropriations Act of 2023 was signed on Dec. 29, 2022, which is an omnibus bill that includes the SECURE 2.0 legislation, referred to as such because it builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The legislation is intended to increase employees’ retirement savings and makes numerous important changes that employers should be aware of. A section-by-section summary of the legislation can be found here.

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Bereavement is an experience that follows the loss of a family member or friend. It’s an inevitable part of life. Many employers recognize the emotional toll it takes on workers and implement bereavement leave policies. Offering bereavement leave is not just a legal requirement in some places but a way to support grieving employees during challenging times in their lives. This type of leave can be an important component of an employee benefits package and can positively impact employee attraction and retention. Bereavement leave acknowledges the emotional well-being of employees as they balance the demands of work with the circumstances of daily life.

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Last year presented employers with many new and difficult compliance challenges, including federal and state laws and regulations expanding worker protections, widespread adoption of artificial intelligence (AI) in the workplace, and increased enforcement actions by federal agencies. Employers have had to respond as courts and federal agencies addressed several hot-button issues. In addition to these novel and growing compliance challenges, employers have also had to navigate record-high inflation, economic slowdown, and an unusually resilient labor market. For many employers, these challenges made it more difficult to prioritize compliance or establish successful mitigation strategies because they lacked sufficient time, proper resources, or trained personnel.

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In today’s market, managers and HR professionals must adapt to the changing expectations of organizations and employees amid difficult economic conditions. As such, proactive leaders and HR professionals will approach 2024 with strategies that incorporate artificial intelligence (AI) into everyday operations, satisfy employee demands for greater compensation and flexibility, and conform to evolving compliance standards. Organizations will benefit from putting people first and responding to what their workers need. To aid our followers in meeting organizations’ and employees’ demands and desires, this HR Insights article highlights six HR trends to keep an eye on this year.

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