As the days grow longer and the call of sandy shores fills the air, June offers the ideal chance to delve into the latest Compliance trends shaping the employment landscape. Let’s ensure you’re ready to bask in the sunshine and smoothly navigate any regulatory ripples that may arise this summer.
Check out our Compliance podcast on these updates at Two-Minute Tuesday Tip: June Compliance Refresh.
Legislation: What’s New and What’s Next?
California: Healthcare Minimum Wage Delay
California recently passed SB-828, which delays the implementation of the new healthcare minimum wage to July 1, 2024. The bill was passed on May 30, by both the assembly and Senate and signed by the governor on May 31. Originally, the healthcare minimum wage law was set to begin on June 1. It’s been delayed to allow the state more time to implement the minimum wage schedules. Lawmakers are dealing with a projected state budget deficit in the billions, and this adjustment provides additional flexibility.
California Pay Statements: Naranjo v. Spectrum Security Services
On May 7, the California Supreme Court issued an opinion in the case of Naranjo v. Spectrum Security Services in favor of the employer. The court held that the “good faith” defense applies to claims seeking to impose penalties under California Labor Code Section 226 for noncompliant wage statement. Therefore, an employee must show that an employer’s failure to comply with Section 226(a) was both knowing and intentional in order to obtain statutory penalties.
Colorado: Artificial Intelligence Act
On May 17, Governor Jared Polis signed the Colorado Artificial Intelligence Act. Similar to the European Union Artificial Intelligence Act, this regulates the use of high-risk AI systems (HRAIS). For employers, recruiters, and human resource professionals, HRAIS are defined to include an artificial intelligence system that makes, or is a substantial factor in making, a consequential decision, such as a decision on employment or a job opportunity.
Companies that use HRAIS will be required to take the following actions:
- Notify consumers if a system makes a consequential decision about them.
- Notify people who interact with a covered system that they are engaging with AI
- Implement appropriate risk management policies and programs
- Complete impact assessments regarding the known and foreseeable risks of the system.
Connecticut: Sick Leave
On May 6, the Connecticut legislature passed a bill amending a number of key aspects of the Connecticut statewide Paid Sick Leave law. The bill was signed into law by Governor Ned Lamont on May 21. The changes include:
Employer Coverage
The current law covers employers with 50 or more employees. The amended law will gradually increase this until January 1, 2027, when the coverage threshold drops to employers with one or more employees.
Notice to Employers
The current law allows employers to require up to 7 days' notice for foreseeable absences. The amended law removes the employer notice and documentation requirement, and specifically states that employees cannot require documentation to establish the leave is taken for a covered purpose.
New Hire Waiting Period
Current law allows waiting periods of up to 680 hours of employment and imposes a requirement that employees work an average of 10 hours per week in the most recent quarter. The amendments remove the 680 hour requirement and the 10 hours per week requirement. Instead, it applies a single requirement that employees can use available sick leave beginning on their 120th day of employment.
Accrual
Employees currently accrue sick time a rate of at least one hour of paid sick leave for every 40 hours worked. The amendment changed the accrual rate to one hour of paid sick leave for every 30 hours worked.
Exempt employees will accrue sick time under the presumption that they work 40 hours per week, unless they have a normal workweek that is less than 40 hours.
Frontloading
Employees may carry over 40 hours of unused paid sick leave to the following year. The amended law allows employers to frontload paid sick leave in lieu of the carryover if the frontloaded sick leave meets the requirements and is immediately available to the employee.
The bill may be found online on the Connecticut General Assembly website.
Los Angeles County: (Unincorporated Areas) Fair Workweek Ordinance
Los Angeles County has passed a fair workweek ordinance that covers unincorporated areas of Los Angeles County (areas not otherwise covered by cities such as the City of Los Angeles, City of Santa Monica, City of Long Beach, etc.). LA County's fair workweek law closely mirrors the ordinance that the City of Los Angeles passed in 2022.
Maryland Pay Transparency
Effective October 1, 2024, employers in Maryland must disclose in each public or internal job posting the salary range, general description of benefits, and any other compensation offered for the position. If a job opportunity is not posted and available to an applicant, the employer is required to disclose to the applicant the same information: (1) before a discussion of compensation is held with the applicant; and (2) at any other time on request of the applicant.
More details on Maryland's amended law may be found here.
Minnesota Pay Transparency
Effective January 1, 2025, employers with 30 or more employees in Minnesota will be required to include a minimum and maximum pay range or fixed pay rate in all job postings, a description of all benefits and other compensation to be provided, including any health or retirement benefits.
For further information, including the bill text, visit the Minnesota Legislature website.
As we wrap up this compliance journey, let's remember that just like a perfect summer day, staying compliant is all about enjoying the ride. Soak up the sunshine, ride the waves of regulation with ease, and keep the summer vibes alive in your workplace. Until next time, stay compliant, stay cool, and keep shredding those waves of change.