Category: Compliance Corner

Chicago Paid Leave and Sick Leave

Under the Chicago Paid Leave ordinance, all employers in the city are required to offer both paid leave and paid sick leave to their workers.  The following are important details:

1. Eligibility: Employees who have worked a minimum of 80 hours for an employer within any 120-
   day timeframe in Chicago are entitled to benefits under this ordinance.
2. Accrual: For every 35 hours worked, employees earn one hour of paid leave, capping at 40 hours over a 12-month period.
3. Usage: Employees may use up to five days each of paid leave and paid sick leave annually.

Notice: Employers are required to prominently display a notice at all workplaces and incorporate it with the first paycheck issued to qualified employees.

This ordinance is designed to ensure employees have the ability to take leave for personal or medical needs, promoting a workplace that supports health and balance.

For more information: City of Chicago :: Paid Leave and Paid Sick Leave.

Illinois Captive Audience Law

The Illinois Captive Audience Law, officially known as the Worker Freedom of Speech Act, was signed into law by Governor JB Pritzker on Jul. 31, 2024.  This law prohibits employers from taking adverse actions against employees who refuse to attend employer-sponsored meetings or receive communications concerning the employer’s views on religious or political matters, including unionization.  The law aims to protect employees from being coerced into listening to their employer’s opinions on these topics and will take effect on Jan. 1, 2025.

Other states with similar captive audience laws include:

• Connecticut
• Maine
• Minnesota
• New York
• Oregon
• Washington

These laws generally prevent employers from disciplining or threatening employees who choose not to attend meetings where the employer discusses religious or political matters.  Some states also require employers to post notices informing employees of their rights under these laws.

Click here for more information.

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.

The non-compete rule refers to regulations that restrict or prohibit non-compete agreements, which are contracts preventing employees from working for competitors or starting a competing business for a certain period after leaving a job.

Latest Developments:  

• FTC’s Final Rule: On May 7, 2024, the Federal Trade Commission (FTC) published a final rule banning almost all non-compete agreements between employers and workers.  This rule aims to promote competition, increase worker wages, and foster innovation. 
• Court Challenges:  On July 3, 2024, a district court in Texas issued a preliminary injunction against the FTC’s rule, delaying its enforcement for certain plaintiffs. The court ruled that the FTC lacked the authority to issue such a sweeping ban and found the rule to be arbitrary and capricious. 
• Recent Rulings: On July 24, 2024, a federal judge in Pennsylvania upheld the FTC’s ban on non-compete agreements.  This ruling supports the FTC’s authority to enforce the ban, which aims to promote competition and protect workers’ rights. 
• Upcoming Legal Challenges: The legitimacy of the FTC’s regulation is expected to be resolved by superior judicial authorities, such as the U.S. Court of Appeals in the Third and Fifth Circuits.  The decisions in these legal battles will shape the enforceability of the rule across the country. 

Key Points: 

• The last rule from the FTC, banning most non-compete agreements regarding “workers,” pertains to any employment terms that deter, penalize, or prohibit a worker from pursuing work or establishing a business across the U.S. 
• The regulation makes allowances for existing agreements with senior executives, non-compete provisions associated with the sale of a business, and legal issues that began before the regulation takes effect on Sept. 4, 2024. 
• The rule requires that employers must issue notices to their employees who are under non-compete clauses, letting them know that these provisions are no longer enforceable. 
• Two lawsuits are contesting the rule, requesting a temporary hold on its start date.  Both cases are moving quickly through the courts, and their outcomes could significantly impact the implementation of the FTC’s non-compete rule. 
• If a stay is not issued by Aug. 1, 2024, employers should begin preparing for the FTC’s non-compete rule to take effect on Sept. 4, 2024.  This means that unless the court issues a stay, the rule will proceed as planned, and employers will need to comply with the new regulations. 

For additional details, please follow this link.  https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes  

This information is intended for informational purposes only and does not constitute legal advice.  The information contained herein is not a substitute for professional legal counsel.  For specific legal advice tailored to your situation, please consult your legal counsel. 

In a significant move aimed at safeguarding indoor workers, the California Division of Occupational Safety and Health (Cal/OSHA) has approved a long-awaited indoor heat illness standard, slated to go into effect Aug. 1, 2024.  This standard, designated as Section 3396, mandates crucial protections for workers in indoor environments where temperatures reach 87 degrees Fahrenheit or higher. 

Understanding the New Standard 

The Section 3396 standard requires employers to take proactive measures when indoor temperatures reach specific thresholds: 

• Temperature Thresholds: Employers must reduce room temperatures and provide cool-down options when indoor temperatures are at 87 degrees Fahrenheit or above. 
• Special Conditions: For workers wearing poorly ventilating protective clothing or those near heat sources, measures must be in place when temperatures hit 82 degrees Fahrenheit. 

Employer Responsibilities 

To comply with the new standard, California employers will need to implement several key measures: 

• Cool-Down Options: This includes providing access to cooler workspaces, air conditioning or fans, designated cool-off zones, and free access to cold water. 
• Heat Illness Monitoring: Supervisors are required to monitor conditions closely during heat waves, especially for new employees who are acclimatizing to the environment. 
• Emergency Response: Employers must establish procedures for responding to heat-related emergencies promptly, ensuring access to medical attention if needed. 

Training Requirements 

Both employees and supervisors must undergo training on heat illness prevention: 

• Employee Training: Covers risk factors, recognition of heat illness symptoms, procedures for accessing cool-down areas, and the importance of hydration. 
• Supervisor Training: Includes additional responsibilities such as implementing heat illness prevention procedures, monitoring weather conditions, and responding to potential heat-related emergencies. 

Exceptions and Rationale 

The standard does not apply to workplaces that do not reach the specified temperature thresholds indoors or to remote workplaces beyond employer control.  The initiative stems from California’s existing outdoor heat illness prevention standard, introduced in 2006, which previously did not extend protections to indoor workers. 

Why It Matters 

California’s move comes amid increasing concerns over worker safety in warmer climates, particularly after record-breaking temperatures in recent years.  Heat-related illnesses such as heat stroke and heat exhaustion pose severe risks to workers, with approximately 1,000 workers in California filing compensation claims annually due to heat exposure. 

Conclusion 

As California continues to lead in workplace safety regulations, the new indoor heat illness standard marks a critical step toward ensuring the well-being of indoor workers across various industries.  By implementing these measures, employers not only enhance workplace safety but also mitigate risks associated with heat-related illnesses, ultimately fostering a healthier and more productive workforce. 

For additional details, please follow these links: 

Comparison Chart of Indoor and Outdoor Heat Illness Prevention Standards 

dir.ca.gov 

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.

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.

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.

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.

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.

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.

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.

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.