Category: Compliance

This change results in a three-month delay from the previous tentative opening date of April 2023. 

Updates regarding the 2022 EEO-1 Component 1 data collection, including the opening date, will be posted to EEOCdata.org/eeo1 as they become available.

California pay data reporting

California enacted legislation in 2020 requiring pay data reporting obligations for certain employers. In 2022, California expanded the legislation to require reporting of median and mean pay information.

The portal for submitting reports to the California Civil Rights Department (CRD) is now open and can be found on the Pay Data Reporting Portal. The deadline for submitting reports is May 10, 2023.

Illinois pay data reporting is in effect

Illinois joined California as the only other state that requires employers to collect and submit employee pay data to the state.  Pay data reporting began Jan. 1, 2023 and employers must obtain an equal pay registration certificate by March 24, 2024. Information about obtaining a certificate can be found on the Illinois Department of Labor website.

Running reports in isolved

For companies that have been tracking ethnic origin, gender and EEO classifications in isolved, the EEO1 Export is formatted as a comma-delimited (csv) file for upload to the EEO-1 Component 1 Online Filing System. This report is available on the Reports > Client Reports menu in the HR Compliance Reports category.

Establishments screen links work locations to EEO-1 reporting establishments

To use the isolved EEO1 Report or EEO1 Export, you need to link your work locations to EEO establishments and assign your company headquarters on the Establishments screen for accurate reporting.

California employers can use the CA Pay Data Report that is found under Reporting > Client Reports menu in the HR Compliance Reports category. 

Let’s talk privacy and biometric practices.

As technology continues to evolve, so does the use of our biometric data. Biometric data includes, but is not limited to, the usage of fingerprints, facial recognition and iris scans. This can also include the use of fingerprint and/or facial recognition while accessing smartphones and tablets.

Illinois, Maryland, Texas, New York and Washington are all states that have existing regulations in place regarding the use of biometric privacy, which can include time clocks. If you have employees in any of the states mentioned above or would like to learn more about best practices regarding biometric privacy, check out the resources available on our HR Support Center:

Collection of Biometric Data Laws for Illinois, Maryland, Texas, New York and Washington

Biometric Data Collection, Use Notice and Consent Form

Biometric Data Collection and Use Policy

The HR Support Center is intended for clients using Insperity’s Workforce Acceleration™ or Workforce Administration™ product offering. Customers of Insperity’s Workforce Optimization® solution should reach out to their Insperity HR specialist for guidance.

In 2023, nearly half of the country will see increased minimum wage requirements. Employers in several states must be aware that the minimum wage is rising across the country. Our HR Resource Center will help you through the changes that may affect your company:

• Download the State and Local Minimum and Tipped Wage Rates chart in effect as of Jan. 1, 2023. 
• View the Minimum Wage Map in the HR Resource Center for current and upcoming minimum wage changes in 2023.
  

Make sure you have updated your employees in isolved with the applicable minimum rates and salaries for 2023. Use the How do I find employees who are being paid below minimum wage? guide in the Insperity Help Center to identify employees who are paid below minimum wage, specifically when a location’s minimum wage is changed.

Key points to remember

• Minimum wage rates are based on your employees’ work location, not employer location.  
• Although minimum wage rates are based on an employee’s work location, they can sometimes vary by jurisdiction, employer size and/or industry. As such, your employees’ work locations have been configured based on your company’s specific business requirements. 
• To see accurate minimum wages listed on the Employee Salary/Hourly Rate List dashboard in isolved People Cloud, confirm your employees are assigned to the correct default work location on their General screen in Employee Maintenance.
  
• If you need to update the applicable minimum wage or your work locations, contact your Insperity payroll specialist.
• Where federal, state and local minimum wage apply, the Fair Labor Standards Act (FLSA) requires an employer to pay at the highest applicable hourly rate (e.g., if the employee works in San Jose, California, the employee should be paid at $17/hour on Jan. 1, rather than at the state wage of $15.50 or the federal wage of $7.25).

Insperity is here to help

If you have any questions or concerns about how this minimum wage change will impact your business, please contact your Insperity payroll specialist.

As stated in the Client Service Agreement (CSA), compliance with the FLSA and any similar state law is the client’s responsibility. By providing the information and suggestions contained in this communication, Insperity is not assuming any liability or responsibility for FLSA compliance and is not intending to amend or alter in any way the terms of the CSA.

New legislation in Illinois, effective Jan. 1, 2023, gives employees the right to a day of rest every workweek, along with meal and rest breaks during daily work shifts.

Employers will have to provide nonexempt employees with at least 24 consecutive hours off of work in each consecutive seven-day period instead of each calendar week. There are exemptions, including for supervisors and employees who work 20 hours or less per week. Exception permits can be obtained from the Illinois Department of Labor for employees to work on the seventh day if the employee agrees on a voluntary basis.

Employees who work more than 7.5 hours in a row will be entitled to an additional 20-minute meal break for every 4.5 hours worked.

Employers must post a notice about these rights in a conspicuous location at work. For employees who don’t regularly report to the workplace, employers must provide the notice by email or on an internal website that the employer regularly uses to communicate work-related information. This should be something that all employees can regularly access.

Insperity Workforce Acceleration can help

Insperity® Workforce Acceleration™ technology makes it easy. You can share the required information with your Illinois employees:

• As an announcement on the Company Messages page
  Employees automatically receive notifications in the Adaptive Employee Experience (AEX) or ESS Classic View when you post new announcements. You can use eligibility rules so just Illinois employees can view the announcement or receive the notification. Employees using ESS Classic View on desktops can view the announcement on the Company Information page.
• Employee Messages page
  Employees automatically receive notifications in the Adaptive Employee Experience (AEX) or ESS Classic View when you post new messages. You can use eligibility rules to limit access to the message and just send notifications to your Illinois employees.
• Mass Email feature
  Employees will receive the email message at the address they used to register for self-service. You can use eligibility rules to send emails to just your Illinois employees. You can easily view the send status and resend emails from the Self-Service Management dashboard.
• allow you to include short messages that will be printed on employee check stubs and online pay vouchers. While the full text is too long for the paystub, you can include a short reminder directing employees to view the notice.

For assistance configuring message templates, email templates or paystub notifications, contact your Insperity payroll specialist.

More information on ODRISA, including exemption permits, can be found on the Illinois Department of Labor website.

As stated in the Client Service Agreement (CSA), compliance with the FLSA and any similar state law is the client’s responsibility. By providing the information and suggestions contained in this communication, Insperity is not assuming any liability or responsibility for FLSA or state compliance and is not intending to amend or alter in any way the terms of the CSA.

Please be aware of the new paid family leave if you have employees in Colorado, Oregon and New Hampshire.

Colorado has approved a state-run Paid Family and Medical Leave Insurance (FAMLI) program for 2023. The FAMLI program will ensure all Colorado workers have access to paid leave. For more information on the Colorado FAMLI, visit Colorado Paid Family and Medical Leave Insurance (FAMLI) in the Insperity Help Center or the Colorado Family and Medical Leave Insurance Program website.

For employers doing business in Oregon, Paid Leave Oregon is a 2023 program that ensures access to paid leave for family or medical leave, or to address a domestic violence situation. Information can be found on the Insperity Help Center, Paid Leave Oregon and the state website State of Oregon Paid Leave Oregon.

Unlike other states with mandatory paid family and medical leave programs, effective Jan. 1, 2023, New Hampshire allows employers and employees to opt into a voluntary state-paid family and medical leave plan under the Granite State Family Leave Plan program. For more information, visit New Hampshire Paid Family and Medical Leave.

On Jan. 5, the Federal Trade Commission (FTC) proposed a rule to prohibit employers from using noncompetition agreements. According to the FTC, the proposed rule would:

• Make it illegal for an employer to have a noncompete with a worker.
• Require employers to rescind existing noncompetes and actively inform workers that they are no longer in effect.
• Apply to independent contractors, unpaid interns and anyone who works for an employer – whether paid or unpaid.
• Generally, not apply to other types of employment restrictions, like non-disclosure agreements. However, other types of employment restrictions could be subject to the rule if they are so broad in scope that they function as noncompetes.

You can review the proposed rule here and submit a public comment by following the instructions in the proposed rule. The comment period is open through March 10, 2023.

Keep in mind that this is a proposed rule, so we don’t know if or when it will be adopted and, if so, whether the adopted rule will differ from the proposed rule. While we track whether noncompete agreements are limited or prohibited federally and at the state level, we can’t otherwise advise on using, drafting, or enforcing noncompetes.

If you’re interested in using noncompete agreements with employees, you should consult with an employment attorney who practices in your state.