Understanding State Mandated Retirement Plans

Understanding state-mandated retirement plans

State-mandated retirement plans are programs established by state governments to provide workers with access to retirement savings options, particularly when they lack employer-sponsored plans. These programs may include traditional pension plans or defined contribution plans such as 401(k)s or Individual Retirement Arrangements (IRAs). Employers in states with these mandates are required to either enroll their employees in the state’s program or offer an alternative qualifying retirement plan.

Several states, including California, Colorado and Connecticut, have implemented these programs with the goal of enhancing the financial security of their workforce. It is crucial for employers in states with mandated retirement plans to understand their obligations to either participate in the state program or provide their own qualifying plan.

To find additional information about state-mandated retirement plans, see state-mandated retirement plans in the Insperity® Help Center.

Washington Expands Paid Sick Leave

Washington expands paid sick leave

Starting Jan. 1, 2025, a new law signed by Washington Governor Jay Inslee will broaden the state’s paid sick leave law. The law will include more people in the category of “family member” and allow more situations for taking leave under the law.

Changes to paid sick leave

The amendment made the following expansions to the state of Washington’s paid sick leave requirements:

  • Expanding the definition of “family member” to include grandchildren, grandparents and individuals who reside in the employee’s home on a regular basis, or where the individual depends on the employee for care. This excludes those who reside in the residence with no expectation the employee will care for them.
  • Including a child’s spouse to the law’s definition of a “child;” and
  • Adding the closure of an employee’s place of work, their child’s school, or place of care due to the declaration of an emergency by the federal, local or state government.

Washington paid sick leave

Employees in Washington can earn one hour of paid sick leave for every 40 hours they work. The law covers almost all employers and employees who live in the state, and there are specific rules for ride-share drivers.

Get more information about Washington’s Paid Sick Leave bill here.

The information provided here is intended for informational purposes only and should not be construed as legal advice. We strongly recommend consulting with a qualified legal professional for any legal advice pertaining to your company.

Compliance Corner: California enacts workplace violence prevention requirements

Effective July 1, 2024, most California employers will be required to adhere to a comprehensive set of workplace violence prevention regulations.

The standard mandates that covered employers develop a comprehensive, accessible and written Workplace Violence Prevention Plan (WVPP), ensuring that employees and supervisors receive training on workplace violence issues. Furthermore, it necessitates the creation and maintenance of a detailed violence incidence log, alongside record-keeping of all training sessions and workplace incidents that involve violence.

Exceptions exist for California employers that are already required to comply with California’s existing workplace violence prevention standard for healthcare, as well as employees teleworking from a location of their choosing that is not controlled by the employer. These exceptions also apply to places of employment that are not accessible to the public and where there are fewer than 10 employees working at any given time.

Requirements include:

  • Designate individuals responsible for the plan.
  • Involve employees and authorized representative in plan development.
  • Coordinate the plan with other employers when necessary.
  • Review and revise the plan with employee involvement as needed.
  • Identify and address workplace violence hazards through inspections.
  • Provide initial and annual training.
  • Maintain records of hazard identification, evaluation and correction.
    • Save training records.
    • Keep a violence incident log.
    • Document workplace violence incident investigations.
    • Retain these records for at least five years and provide them to Cal OSHA upon request.

Additional information about the law and its requirements may be found on the State of California Department of Industrial Relations website.

The information provided here is intended for informational purposes only and should not be construed as legal advice. While every effort has been made to ensure the accuracy of the information, it is not guaranteed to be correct, complete or up to date. Legal matters often have specific individual circumstances that affect the appropriate course of action. As such, we strongly recommend consulting with a qualified legal professional for any legal advice pertaining to your situation.

Compliance Corner: New York City enacts Workers’ Bill of Rights

At the end of 2023, the New York City Department of Consumer and Worker Protection (DCWP) was directed by the City Council to establish a new employer requirement to inform employees in the city of their work-related rights under local, state, and federal law. The City Council’s ordinance directed DCWP to publish a comprehensive guide to workers’ rights and to develop a document for employers to notify employees of the existence of this guide. The new “Workers’ Bill of Rights” and “Your Rights at Work” posters were released on March 1.

By July 1, 2024, employers must comply with the following requirements:

  • Post the notice poster released by DCWP in a location visible to employees; businesses that operate online and cannot physically post the notice must post online where employees can see
  • Post the notice poster to an intranet or mobile app if either is used to communicate to employees on a regular basis
  • Provide a copy of the notice poster to every existing employee
  • Provide a copy of the notice poster to every new employee on or before their first day of work
  • Ensure that the notice is translated into any language spoken as a primary language by at least five percent of employees

Penalties for noncompliance will be $500 after the initial violation, and violations must be corrected within 30 days of receiving notice by DCWP.

A copy of the poster and additional information about the Workers’ Bill of Rights may be found here.

The information provided in this document does not, and is not intended to, constitute legal advice. Instead, all information, content and materials available here are for general informational purposes only. If you require legal advice, we strongly recommend that you consult with a qualified attorney. Only your individual attorney can provide personalized advice tailored to your specific situation and jurisdiction. This document should not be relied upon as a substitute for professional legal counsel.

Compliance Corner: New York to require paid lactation breaks

Included in the 2025 New York state budget is a provision that requires all New York employers, regardless of size, to provide a paid 30-minute break for employees to express breast milk at work up to three years after childbirth.  The employee may also use existing paid or unpaid break or mealtime for breast milk expression in excess of 30 minutes. The law does not explicitly cap the number of paid 30-minute lactation breaks per workday. Employers are required to provide lactation breaks when the employee has a reasonable need to express breast milk. The new requirement is effective June 19, 2024.

Prior to this new requirement, New York employers were only required to provide reasonable unpaid lactation breaks. It is recommended that employers change their lactation accommodation policies to reflect the new paid break requirement. The model policy developed by the New York Department of Labor has not yet been updated to reflect this change.

For additional information and updates from the State of New York regarding lactation in the workplace, please visit https://dol.ny.gov/breast-milk-expression-workplace.  You can also obtain updates on such requirements through the HR Resource Center here.

The information provided in this document does not, and is not intended to, constitute legal advice. Instead, all information, content and materials available here are for general informational purposes only. If you require legal advice, we strongly recommend that you consult with a qualified attorney. Only your individual attorney can provide personalized advice tailored to your specific situation and jurisdiction. This document should not be relied upon as a substitute for professional legal counsel.

Compliance Corner: White-collar exemption update

Recent ruling: Changes to salary thresholds for exempt employees

Get ready for some game-changing news! We’re diving into the latest updates to the white-collar exemption under the Fair Labor Standards Act (FLSA).

What’s new?

  1. Increased minimum salary
    • Effective July 1, 2024, the minimum salary level for executive, administrative or professional employees to be classified as exempt has risen from $684 per week ($35,568 per year) to $844 per week ($43,888 per year).
    • On Jan. 1, 2025, this minimum salary will increase to $1,128 per week ($58,656 per year).
  2. Highly compensated employee (HCE) exemption
    • The annual compensation threshold for the highly compensated employee exemption has also been adjusted.
    • Starting July 1, 2024, the threshold is $132,964, which will increase to $151,164 on Jan. 1, 2025.
    • HCE exemption applies to employees earning above this threshold.
  3. Automatic updates
    • Going forward, the salary thresholds will be automatically updated every three years.
    • Starting July 1, 2027, and every triennial cycle thereafter, the thresholds will adjust based on changes in worker salaries.

What clients need to know

  • Review employee salaries
    • Clients should review their employees’ salaries to ensure compliance with the new thresholds.
    • If an employee’s salary falls below the minimum, consider reclassifying them as non-exempt and paying overtime as required.
  • Evaluate job duties
    • Remember that salary alone does not determine exempt status.
    • Employees must also meet the “duties” tests specific to their job category (executive, administrative, professional or computer employee).
  • Stay informed
    • Keep an eye on future updates. The automatic triennial adjustments will provide predictability for planning.

The recent changes to the white-collar exemption aim to strike a balance between fair compensation and workforce management. As a client, understanding these updates is essential to avoid legal pitfalls and ensure compliance.

Find more information about the white-collar exemption in the HR Resource Center.

The information provided in this document does not, and is not intended to, constitute legal advice. Instead, all information, content and materials available here are for general informational purposes only. If you require legal advice, we strongly recommend that you consult with a qualified attorney. Only your individual attorney can provide personalized advice tailored to your specific situation and jurisdiction. This document should not be relied upon as a substitute for professional legal counsel.

Compliance Corner: Overtime exemptions under the Fair Labor Standards Act (FLSA)

The FLSA overtime rule decides whether employees qualify or do not qualify for overtime pay. Employees who are exempt do not get overtime pay for hours worked over 40 in a workweek because of their type of work and how much they are paid. Employees who are nonexempt must be paid one-and-a-half times their regular rate for any hours worked above 40 in a workweek.

On April 23, 2024, the Department of Labor issued a final rule that raised the salary-level threshold for white-collar exemptions from $684 a week to $844 a week, starting from July 1, 2024, and then to $1,128 a week, starting from Jan. 1, 2025. The final rule is expected to give overtime protections to about 4 million workers who are not currently covered under federal law.

An employee’s salary level alone does not determine their exemption from overtime pay; their main job responsibilities must also fall under the executive, administrative or professional categories outlined by the rules.

Under the April 2024 final rule:

  • The overtime rule increases the standard salary threshold levels in two stages. Workers who make less than $43,888 annually ($844 a week) by July 1, 2024, would qualify for overtime pay, regardless of their manager or professional status. The salary-level threshold goes up to $58,656 a year ($1,128 a week) by Jan. 1, 2025. The salary threshold adjusts automatically every three years.
  • Up to 10% of the standard salary level can be met by nondiscretionary bonuses and incentive payments (including commissions) that are paid yearly or more often.
  • To qualify as highly compensated employees under the special rule, workers would need to make a total annual pay of at least $151,164 (with a minimum of $1,128 paid every week on a salary or fee basis).
  • The final rule is effective in phases, with one effective date of July 1, 2024, and a second effective Jan. 1, 2025.

Read more at Biden-Harris administration finalizes rule to increase compensation thresholds for overtime eligibility, expanding protections for millions of workers | U.S. Department of Labor (dol.gov) and the HR Resource Center DOL Increases Exempt Employee Minimum Salaries.

The information provided here is intended for informational purposes only and should not be construed as legal advice. While every effort has been made to ensure the accuracy of the information, it is not guaranteed to be correct, complete or up to date. Legal matters often have specific individual circumstances that affect the appropriate course of action. As such, we strongly recommend consulting with a qualified legal professional for any legal advice pertaining to your situation.

Compliance Corner: Understanding the Pregnant Workers Fairness Act

The Pregnant Workers Fairness Act (PWFA) is a U.S. law designed to eliminate discrimination and ensure workplace accommodations for workers with known limitations related to pregnancy, childbirth or related medical conditions. Here are some key points about the PWFA:

  • The PWFA requires a covered employer to provide a “reasonable accommodation” to a qualified employee’s or applicant’s known limitations related to, affected by, or arising out of pregnancy, childbirth or related medical conditions unless the accommodation causes the employer an “undue hardship.”
  • This act applies only to accommodations. Other laws that the Equal Employment Opportunity Commission (EEOC) enforces make it illegal to fire or otherwise discriminate against employees or applicants based on pregnancy, childbirth or related medical conditions.
  • The PWFA does not replace federal, state or local laws that are more protective of workers (used here to mean job applicants and employees) affected by pregnancy, childbirth or related medical conditions.
  • This act applies to private and public sector employers (state and local governments) with 15 or more employees. It also applies to Congress and federal agencies, as well as to employment agencies and labor organizations.
  • The PWFA went into effect on June 27, 2023. On April 15, 2024, the EEOC issued its final regulation to carry out the law. The regulation goes into effect on June 18, 2024. You can find a summary of the regulation here.
  • On April 25, 2024, 17 states jointly filed suit in federal court to halt implementation of the rule. Litigation is ongoing, and the status of the rule is uncertain, pending its outcome. 

Find additional information in the HR Resource Center under Pregnant Workers Fairness Act – Final Regulations Published.

The information provided here is intended for informational purposes only and should not be construed as legal advice. While every effort has been made to ensure the accuracy of the information, it is not guaranteed to be correct, complete or up to date. Legal matters often have specific individual circumstances that affect the appropriate course of action. As such, we strongly recommend consulting with a qualified legal professional for any legal advice pertaining to your situation.

Compliance Corner: Utah, Florida and Indiana amend child labor laws

Utah, Florida and Indiana have enacted amendments to their child labor laws, adjusting the regulations concerning hours and times that minors are permitted to work.

Understanding the laws

  • Utah
    • Effective May 1, 2024, Utah has amended its child labor laws for minors under 16 years of age.
    • Under the amendment, minors under 16 years of age are not permitted to work:
      • More than three hours in one school day
      • More than 18 hours in one school week
      • More than eight hours in one calendar day
      • More than 40 hours in one calendar week
      • Before 7 a.m. or after 7 p.m.
    • Minors under 16 years old may work until 9 p.m. beginning on June 1 and ending on Labor Day.
  • Florida
    • Effective July 1, 2024, Florida has amended its child labor laws for some minors.
    • Under the amendment, minors 16 and 17 years of age are permitted to work:
      • More than 30 hours per week during the school year with a signed consent form from a parent, custodian or superintendent
      • More than eight hours a day on holidays and Sundays during the school year
      • Before 6:30 a.m. and after 11 p.m. when there’s no school the following day
      • Seven days a week but restricted to eight-hour days
    • Minors 16 and 17 years of age must receive a 30-minute meal period for every four hours of work if they work eight or more hours.
    • Minors under 15 years of age can work longer than 15 hours a week (up to 40) when school isn’t in session.
  • Indiana
    • 14- and 15-year-olds can work until 9 p.m. on days preceding school between June 1 and Labor Day.
    • Previous restrictions regarding time and hour restrictions for minors 16 years and older have been removed.

Remember to make HR personnel and supervisors aware of these amendments. In the event of a conflict between federal and state child labor laws, employers should adhere to the law that offers the greatest level of protection for minors.

The information provided here is intended for informational purposes only and should not be construed as legal advice. While every effort has been made to ensure the accuracy of the information, it is not guaranteed to be correct, complete or up to date. Legal matters often have specific individual circumstances that affect the appropriate course of action. As such, we strongly recommend consulting with a qualified legal professional for any legal advice pertaining to your situation.

Compliance Corner: California increases health care minimum wage

UPDATE 07/01/ 2024:  The previous effective date of July 1, 2024 for an increase in the California health worker minimum wage is void. Per the terms of an agreement between state legislators and the governor, the state’s health worker minimum wage will be delayed until at least October 15, 2024. The increase will only take effect if state revenue between July and September is at least 3% higher than expected under existing projections. If state revenue does not rise to this threshold level, the effective date of the minimum wage increase will be pushed back further to January 1, 2025

UPDATE:  On Friday, May 31, the California Governor signed into law a one-month delay in the effective date of the healthcare minimum wage increase originally meant to take effect June 1. The new effective date of the increase will be July 1, 2024, and any June 1 dates for incremental minimum wage increases in the law will be changed to July 1. This bill is effective immediately.

An increase to the statutory minimum wage for health care workers in California will go into effect June 1, 2024. Simultaneously the definition of “health-care” positions subject to the increase will be greatly expanded. The intended goal of the changes is to help solve the shortage of health-care workers in the state, but the law does increase the financial burden on employers in the field.

What employers are subject to the increase?

  • A facility or other work site that is part of an integrated health-care delivery system
  • Licensed general acute-care hospitals
  • Licensed acute psychiatric hospitals
  • Special hospitals
  • Licensed skilled nursing facilities, if owned, operated or controlled by a hospital or integrated health-care delivery system or health-care system
  • Patients’ homes when health-care services are delivered by an entity owned or operated by a general acute-care hospital or acute psychiatric hospital
  • Licensed home health agencies
  • Clinics, including specialty-care clinics, dialysis clinics, psychology clinics, outpatient clinics, clinics operated or affiliated with any institution teaching a recognized healing art, and/or nonprofit clinics that conduct medical research and health education and provide health care to its patients through a group of 40 or more physicians and surgeons, who are independent contractors representing not less than 10 board-certified specialties, and not less than two-thirds of whom practice on a full-time basis at the clinic
  • Licensed residential-care facilities for the elderly, if affiliated with an acute-care provider or owned, operated or controlled by a general acute-care hospital, acute psychiatric hospital or the parent entity of a general acute-care hospital or acute psychiatric hospital
  • Psychiatric health facilities
  • Mental-health rehabilitation centers
  • Community clinics, intermittent clinics or publicly operated clinics
  • Rural health clinics
  • Urgent care clinics
  • Ambulatory surgical centers
  • Physician groups
  • County correctional facilities that provide health-care services
  • County mental-health facilities

What employees are subject to the increase?

  • An employee of a health-care facility employer who provides patient care, health-care services, or services supporting the provision of health care, which includes, but is not limited to, employees performing work in the occupation of a nurse, physician, caregiver, medical resident, intern or fellow, patient-care technician, janitor, housekeeping staff person, groundskeeper, guard, clerical worker, nonmanagerial administrative worker, food service worker, gift shop worker, technical and ancillary services worker, medical coding and medical billing personnel, scheduler, call center and warehouse worker, and laundry worker, regardless of formal job title.
  • It could also include a contracted or subcontracted employee when:
  • The employee’s employer contracts with the health-care facility employer, or with a contractor or subcontractor to the health-care facility employer, to provide health-care services or services supporting the provision of health care, and
  • The health-care facility employer, directly or indirectly, or through an agent or any other person, exercises control over the employee’s wages, hours or working conditions. However, “covered health-care employee” includes all employees performing contracted or subcontracted work primarily on the premises of a health-care facility to provide health-care services or services supporting the provision of health care.

How does the law change nonexempt status?

The law also increases the salary threshold for health-care workers to be deemed exempt from minimum wage and overtime requirements. Health-care workers must now earn a monthly salary of no less than 150% of the health-care worker minimum wage or 200% of the state minimum wage for all workers, whichever is greater, in order to be considered exempt.

When does the law take effect, and for whom?

  • Increases to both the minimum wage and the exempt salary base are done incrementally according to the size of the health-care employer.
  • The following are the four tiers of employers subject to different timing requirements:
Large employers and integrated health systemsDefined as covered health-care facilities that: (1) have 10,000 or more full-time equivalent employees; (2) are part of an integrated health-care delivery system or health-care system with 10,000 or more full-time equivalent employees; (3) dialysis clinics; (4) or facilities owned, affiliated or operated by a county with a population of more than 5,000,000 as of Jan. 1, 2023
Step-up periodHourly minimum
June 1, 2024 to May 31, 2025$23/hr
June 1, 2025 to May 31, 2026$24/hr
June 1, 2026 and after$25/hr
HospitalsDefined as any hospital that (1) has a high governmental payor mix; (2) is an independent hospital with an elevated governmental payor mix; (3) is a rural independent covered health-care facility; or (4) is a covered health-care facility that is owned, affiliated or operated by a county with a population of less than 250,000 as of Jan. 1, 2023
Step-up periodHourly minimum
June 1, 2024 to May 31, 2033$18/hr with 3.5% increases annually
June 1, 2033 and after$25/hr
ClinicsDefined as clinics, including: (1) primary care clinics, (2) non-governmental free clinics; (3) community clinics and any associated intermittent clinic; (4) rural clinics; and (5) urgent- care clinics owned and/or affiliated with community or rural- care clinics
Step-up periodHourly minimum
June 1, 2024 to May 31, 2026$21/hr
June 1, 2026 to May 31, 2027$22/hr
June 1, 2027 and after$25/hr
All other health-care facilitiesDefined as any covered health-care facility not listed above
Step-up periodHourly minimum
June 1, 2024 to May 31, 2026$21/hr
June 1, 2026 to May 31, 2028$23/hr
June 1, 2028 and after$25/hr

The information provided in this document does not, and is not intended to, constitute legal advice. Instead, all information, content and materials available here are for general informational purposes only. If you require legal advice, we strongly recommend that you consult with a qualified attorney. Only your individual attorney can provide personalized advice tailored to your specific situation and jurisdiction. This document should not be relied upon as a substitute for professional legal counsel.