Federal Updates

• DOL Reminds Employers of Responsibility to Pay Cleanup, Recovery Workers Proper Wages in Helene’s Aftermath: In the aftermath of Hurricane Helene, the U.S. Department of Labor reminds employers of their responsibility to pay cleanup and recovery workers proper wages. The DOL emphasizes compliance with the Fair Labor Standards Act, including minimum wage, overtime, and recordkeeping requirements.
• Five Fundamentals for Form I-9 Compliance: Employers should ensure they are using the correct version of Form I-9, update internal I-9 policies, implement annual compliance training, confirm E-Verify policies, and conduct annual internal I-9 audits. These steps help maintain compliance with employment eligibility verification requirements.
• DOL’s Wage and Hour Division Publishes New Minimum Wage for Federal Contractors: Starting January 1, 2025, the minimum wage for federal contractors will increase to $17.75 per hour. This change is part of Executive Order 14026, which aims to ensure fair compensation for workers on federal contracts.
• Employers, Be Aware of Voting Leave Laws for Your Mid-Atlantic Employees: Employers in the Mid-Atlantic region should be aware of varying voting leave laws. For example, Maryland allows up to two hours of paid leave for voting, while West Virginia provides up to three hours. Other states like Delaware, New Jersey, Pennsylvania, and Virginia do not have specific voting leave laws.
• DOL to Hold Online Seminars for Federal Contractors on Prevailing Wage Requirements in Fiscal Year 2025: The U.S. Department of Labor will offer online seminars in 2025 to educate federal contractors on prevailing wage requirements under the Davis-Bacon Act and Service Contract Act. These seminars aim to improve compliance and will be held on multiple dates throughout the year.
• EEOC Identifies Practices to Improve Quality of Merit Final Agency Decisions Drafted by Contractors: The EEOC has released a report identifying best practices for improving the quality and timeliness of merit final agency decisions (FADs) drafted by contractors. Recommendations include starting the contracting process early, providing clear instructions, and maintaining regular communication.
• Time to Think About Updating Handbooks and Personnel Policies: Employers are encouraged to review and update their employee handbooks and personnel policies annually to ensure compliance with new laws and reflect current workplace practices. This includes updating policies on leaves of absence, wage and hour regulations, and workplace accommodations.

State and Local Updates

• California Mandates Greater Administrative Collaboration on the Enforcement of Workplace Discrimination Laws: California's Senate Bill 1340 mandates the Civil Rights Department to collaborate with local agencies to prevent and eliminate unlawful practices. This law allows local agencies to handle discrimination complaints, potentially providing quicker and more localized responses. The changes take effect on January 1, 2025.
• Understanding California’s Freelance Worker Protection Act—What Employers Need to Know: California's Freelance Worker Protection Act, effective January 1, 2025, requires written contracts for freelance services valued at $250 or more. The contracts must include details such as the scope of work, payment terms, and deadlines. The law also prohibits retaliation against freelancers for asserting their rights.
• New California Law Restricts Driver’s License Requirements in Job Postings: Effective January 1, 2025, California's Senate Bill 1100 makes it unlawful to require a driver’s license in job postings unless driving is an essential job function that cannot be performed by alternative means. This law aims to reduce discrimination against individuals without driver’s licenses.
• California Announces Increase in Compensation Rate for Computer Professional Exemption in 2025: Effective January 1, 2025, the minimum hourly rate for computer software employees to qualify for overtime exemption will increase to $56.97, with a minimum monthly salary of $9,888.13 and an annual salary of $118,657.43.
• Colorado Requires Holiday Incentive Pay to Be Included in the Regular Rate of Pay: The Colorado Supreme Court ruled that holiday incentive pay must be included in the calculation of the regular rate of pay for overtime purposes. This decision ensures that employees receive fair compensation for holiday work.
• Idaho’s Workers’ Compensation Rates to Decrease: Idaho will reduce workers' compensation rates by an average of 6.7% starting January 1, 2025. This marks the eighth consecutive year of rate decreases, reflecting improvements in claims costs and frequency.
• Maryland Employers: Six Must-Know Employment Law Changes: Maryland has introduced several new employment laws, including pay transparency requirements, updates to the Family and Medical Leave Insurance (FAMLI) program, expanded anti-discrimination protections, workplace safety standards for heat stress, and restrictions on noncompete agreements for certain healthcare professionals.
• Maryland’s Heat Stress Regulation Took Effect Sept. 30: Maryland's new Heat Stress Regulation, effective September 30, 2024, requires employers to protect employees from heat hazards when the heat index is 80°F or higher. Employers must develop a Heat Illness Prevention and Management Plan, provide sufficient drinking water, and implement rest break schedules, among other measures.
• Massachusetts Updates Paid Family and Medical Leave Contribution Rates, Maximum Weekly Benefits for 2025: Starting January 1, 2025, Massachusetts will maintain the employer contribution rate for Paid Family and Medical Leave (PFML) at 0.88% of eligible wages. The maximum weekly benefit amount will increase to $1,170.64.
• New York State Cybersecurity Regulations Take Effect on Nov. 1: New York's updated cybersecurity regulations, effective November 1, 2024, require financial institutions and other regulated entities to enhance their cybersecurity policies, including corporate governance, encryption, incident response, and employee training.
• 2025 New York Paid Family Leave Contribution Rate, Maximum Weekly Benefits: Starting January 1, 2025, New York's Paid Family Leave (PFL) program will see updates. The employee contribution rate will increase to 0.388% of gross wages per pay period, with a maximum annual contribution of $354.53. The maximum weekly benefit will rise to $1,177.32, reflecting 67% of the New York State Average Weekly Wage (NYSAWW) of $1,757.19.
• North Carolina Allows Employers to Recoup Wage Overpayments: North Carolina has enacted a law permitting employers to recoup wage overpayments from employees without needing advance authorization. This can be done through deductions from future wages, provided the overpayment resulted from a miscalculation or error.
• Vermont Announces Minimum Wage Increase Starting January 2025: Effective January 1, 2025, Vermont's minimum wage will increase from $13.67 to $14.01 per hour. The tipped minimum wage will also rise from $6.84 to $7.01 per hour.
• Washington’s Minimum Wage Going Up to $16.66 Per Hour in 2025: Washington's minimum wage will increase to $16.66 per hour on January 1, 2025. This adjustment is based on the Consumer Price Index and reflects rising costs of living.