November 2023 Update on Compliance: Keeping You in the Loop

A gavel appears in the foreground with a hand holding a pen behind it.

Navigating the latest in employment regulations doesn't have to be a chore. In this inaugural roundup, we're unpacking updates in compliance across the U.S. and Canada, all designed to keep you ahead of the curve. From tax form tweaks to sweeping legislative changes, we've got the need-to-know details. Let's explore what's new and what's next for your business.

Legislation: What’s New and Next?

Canada Reporting of Offer of Dental Care

Starting from the 2023 tax year, there's an update on the T4 and T4A slips. Payers are now required to fill in an additional box with a code that details the type of dental coverage offered to the recipient. Whether it's direct dental insurance or the choice of dental benefits through a Health Spending Account or a Flexible Benefits Plan, this new field is all about what's offered, not the specific circumstances of the recipient or the selections they've made.

Canada – Déclaration de l’offre de soins dentaires

A compter de l’année d’imposition 2023, les feuillets T4 et T4a contiennent une nouvelle case ou le payeur devra inscrire un code identifiant le niveau de couverture dentaire offert au bénéficiaire. Que ce soit une couverture dentaire, un compte de soins de santé ou un régime flexible, il est question de ce qui est offert et non de la situation personnelle ou de la couverture choisie par le bénéficiaire.

California Expands Paid Sick Leave

On October 4, 2023, Governor Gavin Newsome signed into law an expansion of California’s paid sick leave. This law increases the annual amount of California paid sick leave from 24 hours to 40 hours per year for eligible employees, and increases the sick leave accrual cap per employee from 48 hours to 80 hours. The law is effective on January 1, 2024.

California Prohibits Non-Compete Agreements

Non-compete clauses? California says, "No more!" The new legislation significantly restricts the use of non-compete agreements, declaring them illegal except under certain conditions. If you have employees who were onboarded after January 1, 2022, and are subject to these agreements, they may need to be notified that their non-compete clauses are no longer enforceable. Any impacted employees are required to receive a personalized notice by February 14, 2024, to their last known postal and email addresses.

Massachusetts Amends State Paid Family Leave Program

Take note of the latest updates to Massachusetts’ Paid Family and Medical Leave (PFML) program that may impact your payroll and benefits policies. The state is now letting employees stack up their leave, using both PFML and accrued paid leave together for full wage recovery. Furthermore, starting from January 1, 2024, if you're an employer with 25 or more employees, the PFML contribution rate will be set at 0.88% of employee wages

Chicago Eliminates Tip Credit for Tipped Employees                              

The Chicago City Council voted to eliminate the tip credit for tipped employees. As of July 1, 2028, the standard minimum wage will be applicable to all employees, including tipped employees. While the tip credit will be eliminated, employees who are customarily tipped are still allowed to receive and retain tips.                     

Colorado Retroactively Eliminates the Subminimum Wage for Disabled Employees

Colorado became the latest state to ban subminimum wages for individuals with disabilities, backdated to July 2023. Colorado’s action continues a trend of state and local jurisdictions eliminating subminimum wages.

U.S. Federal Fast Facts

Social Security Wage Base Increase

The Social Security wage base increases to $168,600 in 2024. Employees who earn $168,600 in 2024 will be subject to $10,453.20 in Social Security tax.

401(k) Limits for 2024

The 401(k) limit for 2024 will be $23,000, an increase from $22,500 in 2023. The catch-up contribution limit for employees 50 years and older will be $7,500. Employees at least 50 years old will be able to contribute a total of $30,500 in 2024.

EEO-1 Filing Portal Open until December 5

The clock’s ticking! The EEO-1 filing portal is open until December 5, 2023. Got 100 employees or more? It's time to report on your workforce demographics.                                              

Secure Act 2.0 Resources

Buzzing about the Secure Act? We’ve created a dedicated Secure Act Resources page with all the intel you need. Check it out and keep those questions coming.

That’s it for now! Keep it locked in for updates each month. We're always here to navigate these changes together. 

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