Federal Updates

• NLRB Extends Effective Date of Joint-Employer Rule: The National Labor Relations Board (NLRB) has extended the effective date of its new joint-employer rule to February 26, 2024, to address legal challenges. The rule will apply to cases filed after this date.
• What Employers Can Learn From the OpenAI Drama: The recent upheaval at OpenAI, where CEO Sam Altman was removed and then reinstated following employee backlash, highlights the importance of understanding employee sentiment, respecting their leverage, and being aware of legal protections for concerted activities. Employers should consider these factors when making major decisions.
• The New Year Brings New Leave Laws: Starting January 1, 2024, several new leave laws will take effect across various states. These include expanded paid sick leave in California, family and medical leave insurance in Colorado, and paid leave for all workers in Illinois. Employers need to prepare for these changes to ensure compliance.

State and Local Updates

• Changes to Alabama Tax Laws Impose New Reporting Requirements on Employers: Alabama has clarified the types of overtime wages exempt from state withholding and introduced new reporting requirements. Employers must report exempt overtime wages monthly or quarterly and include these wages on employees' annual W-2 forms.
• Alaska’s Minimum Wage Will Increase in 2024: Alaska's minimum wage will increase from $10.85 to $11.73 per hour starting January 1, 2024, in line with inflation adjustments based on the Consumer Price Index.
• California Computer Software Employees and Physicians Overtime Exemption Rates for 2024: Effective January 1, 2024, the minimum hourly rate for computer software employees to qualify for overtime exemption will be $55.58, with a minimum monthly salary of $9,649.96 and an annual salary of $115,763.35. For licensed physicians and surgeons, the minimum hourly rate will be $103.75
• Connecticut Businesses Will Receive a 10% Decrease in Workers’ Compensation Rates in 2024: Connecticut will reduce workers' compensation insurance rates by nearly 10% starting January 1, 2024. This marks the tenth consecutive year of rate decreases, reflecting a decline in workplace injuries and claims.
• Florida Approves a 15.1% Decrease in Workers’ Compensation Insurance Rates for 2024: Effective January 1, 2024, Florida will reduce workers' compensation insurance rates by 15.1%. This decrease applies to both new and renewal policies, aiming to lower insurance costs for employers.
• Time to Prepare for the New Year: Illinois’ Pretax Commuter Benefits Law Goes Into Effect in 2024: Beginning January 1, 2024, Illinois employers in certain counties and townships with 50 or more employees must offer pre-tax commuter benefits. This allows employees to use pre-tax dollars for transit passes, reducing taxable wages.
• Maine’s Mandatory Retirement Savings Program: What Employers Need to Know: Maine has implemented the Maine Retirement Investment Trust (MERIT), a state-run retirement savings program requiring employers with five or more employees to facilitate automatic payroll deductions into Roth IRAs for employees. Employers must register with MERIT by specific deadlines in 2024 and ensure compliance with contribution and notification requirements.
• Michigan’s Right-to-Work Repeal Now Effective Mid-February: Michigan's repeal of its right-to-work law will take effect on February 13, 2024, earlier than initially expected. This change will allow unions to require all workers in unionized workplaces to pay fees for representation.
• New Jersey Workers’ Compensation Rates to Fall 3.9% for 2024: New Jersey will reduce workers' compensation and employer liability insurance rates by 3.9% starting January 1, 2024. This decrease is based on recent financial and statistical data and aims to lower insurance costs for employers.
• New York Employment Legislation Update: A Preview of 2024: New York will see several employment law changes in 2024, including increases in minimum wage, adjustments to tip credits, meal credits, uniform allowances, and updates to paid family leave benefits. Employers must also comply with new social media disclosure rules and increased salary thresholds for certain exemptions.
• New York Enacts Statewide ‘Freelance Isn’t Free Act’: Effective May 20, 2024, New York's new law provides protections for freelance workers, including requirements for written contracts, timely payment, and protection against retaliation. The law aims to ensure fair treatment and payment for freelancers.
• Revisions to New York Unemployment Notice to Take Effect: Starting November 13, 2023, New York employers must provide written notice to employees about their right to file for unemployment benefits upon separation, reduction in hours, or any interruption in employment. This notice must be on a specific Department of Labor form.
• Texas Bans Covid-19 Vaccine Mandates for Employees and Contractors: Starting February 6, 2024, Texas will prohibit private employers from requiring COVID-19 vaccinations for employees, contractors, and job applicants. The law also prevents employers from taking adverse actions against individuals who refuse vaccination.