Employco Blog

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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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.

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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.

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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:

• $684 to $1,059 per week ($35,568 to $55,068 per year); and
• $107,432 to $143,988 per year for highly compensated employees.

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