State employment laws nationwide have significantly multiplied to address the needs of both employers and employees. The months of June and July alone have brought an onslaught of legislation that has shaped the way employers across the country are required to operate their places of employment. Whether the law impacts retirement savings programs, paid leave availability, or breastfeeding breaks employers must comply with, these measures reflect a concerted effort to adapt to evolving societal and economic realities. This article will discuss examples of recent regulations in a few select states.
California
Workplace Violence Prevention Plan
California employers in most industries were required to have created, implemented, and continuously managed a Workplace Violence Prevention Plan (Plan). As of July 1, 2024, employers in California must have a written Plan that includes the names of the individuals responsible for implementing the Plan, procedures for how employers will handle and respond to workplace violence, and emergency response protocols.
Any incidents of workplace violence, even if it did not result in an injury, must be documented in an incident log. Furthermore, employers are expected to provide employees with annual training that familiarizes the employee with the Plan, how to obtain a copy of the Plan, and how to report workplace violence without fear of retaliation. For more details on this California law and its possible exemptions, please refer to our June 17, 2024, article here.
Minimum Wage Increases for Health Care Workers
Health care facilities in California were required to increase the minimum wage paid to employees on June 1, 2024. The new minimum wage is dependent on the type of health care facility the employer is operating. The pay ranges from $18 per hour up to $23 per hour. Eligible employees are those that provide patient care, health care services, or other services that directly or indirectly support patient care. This includes, but is not limited to, nurses, physicians, medical residents, janitors, housekeeping staff, guards, and gift shop workers
Health care facilities are divided into four categories, each with their own minimum wage. For example, category one covers health care facilities that employ over 10,000 employees. These employers must offer at least $23 per hour in minimum wage. Hospitals with a high governmental payor mix or rural independent health care facilities are a different category, and they must offer employees $18 in minimum wage.
Employers operating healthcare facilities are urged to ensure they are appropriately compensating their employees.
District of Columbia
Wage History Protection: Pay Transparency
Effective June 30, 2024, the District of Columbia (D.C.) is now requiring employers to include the minimum and maximum projected salary or hourly pay on all job listings and job descriptions the employer advertises. This range must be based on a “good faith belief” of what the employer expects to pay for the job position. The availability of healthcare benefits must also be disclosed before the applicant is initially interviewed. Furthermore, employers may not inquire about the applicant’s wage history during the hiring process.
Employers in D.C. may want to review job postings to ensure accurate pay ranges are included, as well as any benefits that are being offered. Moreover, employers will want to review their job applications to ensure that there are no questions that inquire into the applicant’s wage history, as well as update hiring practices to avoid asking questions related to wage history.
Florida
Child Labor Working Hours
Florida has recently loosened their restrictions regarding how many hours sixteen and seventeen years-old employees can work. Effective July 1, 2024, so long as a sixteen- or seventeen-year-old has the written permission of their parent, guardian, or school superintendent, they may work over 30 hours per week when school is in session.
Sixteen- and seventeen-year-olds are also allowed to work over eight hours a day, but only when that day is a holiday or a Sunday. If they do not have school the following day, teenagers may also work past 11:00PM. Sixteen- and seventeen-year-olds who are working for more than eight hours a day are entitled to a 30-minute meal period after working four consecutive hours.
Employers who employ young employees seeking to work more hours are encouraged to request written consent from the employee’s parents or school superintendent. Moreover, it is recommended employers verify whether the employee has school the following day or if they are scheduled to work on a holiday or a Sunday before allowing them to work past certain hours.
Illinois
Freelance Worker Protection Act
The Freelance Worker Protection Act (FWPA), which went into effect July 1, 2024, has strengthened the protection of freelance workers in Illinois. A “freelance worker” is a “natural person” that is hired or retained by a contracting entity as an independent contractor to provide products or services. A “contracting entity” is broadly defined as “any person who retains a freelance worker to provide any service.” A “person” under the FWPA refers to either a private or public corporation, business enterprise, or other legal entity.
If the freelance work is equal to or over $500, the agreement between the freelance worker and the contracting entity must be in writing. Freelance workers are also expected to be paid within 30 days of completing a job. Late payments may entitle the freelance worker to double the underpayment. The anti-retaliation provision of the FWPA also prohibits contracting entities from threatening, intimidating, disciplining, or barring the freelance worker from future work opportunities.
Employers need to exercise caution regarding this legislation to ensure they meet its requirements and avoid any potential civil and/or criminal penalties that may be imposed for noncompliance.
Paid Leave and Paid Sick Leave Law
Chicago employers have been met with new regulations that provide employees with two types of paid leave as of July 1, 2024. Employees who have worked at least 80 hours for a Chicago employer within 120 days are eligible to receive Paid Sick Leave and Paid Leave.
Employees may be entitled up to 40 hours of Paid Leave and Paid Sick Leave in a 12-month period. Paid Leave may be taken for any reason, while Paid Sick Leave may only be taken for reasons relating to illness, domestic violence, or the care of a family member.
Both Paid Leave and Paid Sick Leave will be accrued at a rate of one hour for every 35 hours worked. Up to 16 hours of Paid Leave may be carried over if the employer chooses not to front load the time. Up to 80 hours of Paid Sick Leave can be carried over between 12-month periods.
This new ordinance has added to the availability of leave options for employees. Employers are urged to ensure their policies accurately encompass both distinct leave options and clearly outline their respective purposes. Policies should also reflect the latest accrual rate, carryover limits, and payout requirements.
Maine
Retirement Savings Program
Maine has rolled out new legislation, the Maine Retirement Investment Trust (MERIT), that requires certain private sector employers, who do not offer a qualified retirement plan, to provide employees with the opportunity to save for the future. Covered employers are those engaged in a business, whether for-profit or not-for-profit, in the state of Maine and have five or more employees. Employees eligible to participate in the retirement savings program must be over the age of 18 and have been working for a covered employer for at least 120 days.
MERIT is a payroll deduction Roth IRA that will automatically deduct five percent of an employee’s wages into an individual employee’s IRA account. Employees have the option of increasing or decreasing this default deduction rate. Employers are not required to match employee contributions, manage any investment options, or process distributions from the employees Roth IRA account.
Employers who already offer a specific tax favored retirement plan, such as a 401(k) or another qualified plan compliant with Maine law, are exempt from this state-mandated plan. However, employers should still register with MERIT to mark their place of employment as exempt. To avoid penalties for failing to register with MERIT, which will go into effect July 1, 2025, employers are urged to understand how Maine’s program works and what steps to take to initiate the registration process.
Maryland
Amended Clear Indoor Air Act
The Clean Indoor Air Act in Maryland was passed to protect the public and employees from involuntary exposure to tobacco smoke in indoor areas that are open to the public and indoor places of employment. As of July 1, 2024, the use of vapes, electronic devices that turn tobacco into an inhalable aerosol, have also been prohibited within indoor places of employment.
Employers are required to place “No Smoking or Vaping” signs in each public entrance that leads to an indoor area. Employers are encouraged to review their workplace policies to ensure vaping is prohibited on the premises, as well as locate where the “No Smoking or Vaping” signs are to be posted.
Minnesota
Wage Detail Reporting
Effective July 1, 2024, Minnesota employers will have new wage detail reporting requirements pursuant to the states’ Paid Leave Law. Covered employers, those with at least one employee, must submit quarterly wage detail reports to the Department of Employment and Economic Development (DEED). The first report, which is due October 31, 2024, must include wages paid to employees between July 1, 2024, and September 30, 2024. “Wages” are defined as any commission, compensation, bonus, or severance payments provided an employee. The employee’s social security number, full name, and hours worked must also be reported to DEED.
New Jersey
Domestic Workers Bill of Rights Act
As of July 1, 2024, New Jersey domestic workers have gained additional rights. Domestic workers, those employed in areas such as housekeeping, at-home childcare, cleaning services, or gardening, were previously excluded from state labor laws. Now, domestic workers are covered by New Jersey’s Law Against Discrimination and New Jersey’s Wage and Hour Law. This means domestic workers are protected from discrimination and harassment that is based upon protected characteristics, such as race, gender, national origin, or religion. New Jersey employers are also expected to comply with minimum wage and overtime rules when employing domestic workers.
Termination requirements have also been enumerated in the law. Employers must provide a two-week notification period before terminating a domestic worker. For live-in domestic workers, they are owed a four-week notification period.
This law applies to those providing services such as companionship, caretaking, or cooking. Upon hiring a domestic worker, employers are required to provide them with notice of their rights, as well as a written agreement that outlines the work duties, hourly wage, and other terms and conditions of employment. It is important to ensure that such written agreements and employment practices are consistent with the law.
New York
New York City Workers’ Bill of Rights
On July 1, 2024, New York City passed legislation that requires private employers to provide employees with an “Employee Bill of Rights” (Bill). Information regarding Paid Sick and Safe Leave, paid family leave, and safe and healthy workplace conditions are provided in the Bill. Each employee should be provided with a copy of the Bill, and it must also be displayed in a prominent location within the workplace.
The Bill itself is a scannable QR code that directs employees to the Department of Consumer and Worker Protection’s website, which contains an outline of City, State, and federal laws that govern employment in New York City. Employers with multilingual employees can provide the Bill in the employee’s preferred language.
If employers have not already done so, displaying the poster, and providing each employee with a copy of the Bill are crucial steps to be compliant with the latest New York City law. For more information on this regulation, please refer to our February 21, 2024, article here.
New York State Paid Lactation Breaks
As of June 19, 2024, the Nursing Mothers in the Workplace Act was updated. Employers are expected to provide lactating employees with a 30-minute paid break to express breast milk whenever the employee has a reasonable need to do so. With the law placing no cap on how many breaks an employee is entitled to, employers may potentially have to provide multiple paid breaks throughout the workday.
Finding a lactation spot that is in close proximity to the work area, shielded from view, and well-lit are all requirement employers must provide lactating employees during their nursing time. To be compliant with the latest amendment to this New York State regulation, employers are expected to update their nursing policies to reflect the required 30-minute paid break. For more information on the amendment to the nursing law in New York State, please review our June 10, 2024, article here.
Oregon
Changes in Family and Medical Leave Laws
Oregon has recently amended the Oregon Family Leave Act (OFLA) to eliminate qualifying reasons for leave that overlapped with the state’s Paid Leave Oregon (PLO). As of July 1, 2024, OFLA leave can no longer be taken to care for a family member with a serious health condition (with an exception for childcare) or to receive treatment for the employee’s own serious health condition. Instead, these types of leave will be available under PLO. OFLA will only be available for pregnancy-related disabilities, bereavement, the need to effectuate the legal process to foster or adopt a child, to care for a child with a serious health condition, or to care for a child whose school or daycare has been closed due to a public health emergency.
Lastly, if Oregon employers have not already done so, they are urged to update their leave policies to reflect the reduced coverage in OFLA and notify employees of these updates as soon as possible. These updates should also reflect an employee’s right to apply for benefits under PLO, as well as their ability to use accrued paid sick leave or paid vacation leave in addition to PLO.