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Important Mid-Year Legislative Updates
On the federal level:
Starting July 1st, millions of “white collar” exempt employees received a raise as the federal government increased the minimum salary level for exempt employees from $684 to $844 per week. This translates to $35,568 per year and $43,888 per year. The change includes executive, administrative, professional, outside sales, and computer employees.
This is the first of two steps to increase the salary threshold. The second step takes place on January 1, 2025, when the weekly minimum salary level increases from $844 to $1,128 (or from $43,888 to $58,656 per year).
LATEST UPDATE: On June 28, 2024, A judge for the U.S. District Court for the Eastern District of Texas blocked the enforcement of the new U.S. Department of Labor rule to increase the minimum salary thresholds for the Fair Labor Standards Act’s white-collar overtime exemptions against the state of Texas. The order is limited to enjoining enforcement of the rule against the state of Texas as an employer.
Also, federal contractors and sub-contractors had until July 1, 2024 to certify that their affirmative action plans are compliant with federal requirements. If you are an existing contractor and missed this deadline, the likelihood of an audit by the federal agency greatly increases. Fisher Phillips outlines the compliance requirements in a recent article that you can read here.
At the state level:
Maryland’s Paid Family Medical Leave (PFML) program start has been delayed. Maryland is one of four states with a PFML program. It was initially slated to begin contributions on 10/1/2024, with benefits starting 1/1/2026. Contributions will now begin 7/1/2025, with benefits starting 7/1/2026. There are also a number of state tax table changes going into effect on July 1, 2024. These include Georgia, Ohio, Utah and Idaho.
California increased its healthcare minimum wage as of July 1st. Senate Bill 525 establishes a far-reaching minimum wage schedule based on how the healthcare facility is classified. The classification is determined by facility size, type, location, and governmental payor mix percentage. According to the National Law Review, “The law applies to ‘covered health care employee,’ which also encompasses a broad array of positions, from patient care roles like nurses and physicians to support positions such as janitors and clerical workers. The law’s coverage extends to contracted or subcontracted employees when the healthcare facility has control over their wages, hours, or working conditions. The law, however, excludes outside salespersons, public sector employees not primarily involved in healthcare, and delivery or waste collection workers not directly employed by the healthcare facility.” Depending on the facility and roll, the minimum wage is increasing to as much as $18 to $25 per hour starting July 1, 2024. Click here to read more.
For many non-healthcare employers, California has implemented a new Workplace Violence Prevention Program, which also went into effect on July 1, 2024. The new program requires employers to create and implement a written Workplace Violence Prevention program, which includes training and recording incidents of violence. You can read about the new program requirements and how to be in compliance by clicking here.
In Florida, beginning July 1st a Florida law will block specific local workplace rules, including those related to heat safety and “predictive scheduling.” Employers will need to turn to state and federal agencies for guidance on these issues instead. Also, Florida has loosened work restrictions for minors as young as age 16 beginning July 1st.
Also as of July 1st, Texas has enacted new legislation related to consumer data privacy and security. Businesses are required to take steps to secure consumer data and privacy including updating privacy website notices and conducting data protection assessments.
Meanwhile, Nevada’s new minimum wage law recently went into effect which raised the minimum wage to $12 per hour and no longer offers the option of reducing the minimum wage by $1 per hour if qualifying health benefits are included.
In Connecticut, starting July 1st employers are no longer required to give employees two hours of unpaid time off to vote on the day of an election.
Also, Washington has enacted a new state law aiming to protect warehouse employees. This law specifically addresses production quotas in that it requires employers to consider several factors when setting them, as well as protections for warehouse employees. Click here for more detailed information.
At the local level:
Several California localities have increased their minimum wage beginning July 1, 2024, including the City of Los Angeles, San Francisco, Santa Monica, West Hollywood, and more. For a complete list of the municipalities and their new minimum wages, click here.
Chicago, IL passed an ordinance which requires employers to provide a certain amount of paid sick leave and paid leave for any reason. Beginning July 1st or whenever the employee starts employment (whichever is later), the covered employee (one who works 80 hours for an employer in any 120-day period while physically present within the city of Chicago) will accrue one hour of Paid Sick Leave and one hour of Paid Leave For Any Reason for every 35 hours worked.
Employers in New York City had until July 1st to provide their employees with a copy of the “Workers Bill of Rights.” This outlines the rights and protections of employees under federal, state, and local laws. It must also be given to all new hires on their first day of employment.
Looking ahead to 2025:
Health Savings Account (HAS) annual contribution limits are increasing in 2025. For individuals with self-only coverage with a high deductible plan, the annual contribution limit is increasing to $4,300. For individuals with family coverage with a high deductible plan, the annual contribution limit is increasing to $8,550.
TRICOM will continue to provide links to legislative updates on our home page at TRICOM.com.
Sources:
https://payroll.org/news-resources/news/news-detail/2024/06/24/employers-should-check-salary-thresholds-for-exempt-employees-before-july-1
https://www.alight.com/library/us-states-and-federal-absence-management-changes-may-2024
https://www.fisherphillips.com/en/news-insights/employer-cheat-sheet-for-workplace-laws-taking-effect-july-1.html
https://www.fisherphillips.com/en/news-insights/faqs-texas-passes-consumer-privacy-legislation.html
https://www.fisherphillips.com/en/news-insights/chicagos-new-paid-leave-requirements-to-take-effect-july-1.html
https://www.fisherphillips.com/en/news-insights/employer-cheat-sheet-for-workplace-laws-taking-effect-july-1.html
https://www.irs.gov/pub/irs-drop/rp-24-25.pdf
