As we approach the mid-year mark, several new workplace laws are set to take effect on July 1, 2024. These changes aim to improve worker rights and benefits across various states. This article will provide a comprehensive look at what employers and employees need to be aware of.
For additional information regarding workplace laws and to understand how this could impact your business, please contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
Federal
Overtime Rules
The Department of Labor (DOL) has introduced a new rule titled “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” which significantly increases the salary thresholds for overtime eligibility.
Standard Salary Level: The threshold for exempt employees will rise from $684 per week ($35,568 annually) to $843 per week ($43,888 annually) effective July 1, 2024. It will further increase to $1,126 per week ($58,656 annually) on January 1, 2025.
Highly Compensated Employees: The salary threshold for highly compensated employees will increase from $107,432 to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025.
This rule change will make millions of workers eligible for overtime pay starting in July 2024. Additionally, the rule introduces a mechanism for automatic updates every three years, based on the latest earnings data, to ensure the thresholds remain relevant with economic changes. These updates will begin on July 1, 2027, and then occur every three years thereafter.
With these changes, businesses must conduct a thorough evaluation of their workforce to determine which employees may transition from exempt to non-exempt status due to the new salary thresholds. This evaluation includes reassessing job classifications and roles within the organization. Employers should update payroll systems to reflect the new thresholds and prepare for potential increases in overtime payments. It is also essential to anticipate the financial implications on labor costs and assess their impact on staffing, pricing strategies, and overall operations.
For further details, please refer to our previous article: DOL Releases Final Rule on Overtime Salary Thresholds, Effective July 2024.
State
California
Mandatory Workplace Violence Prevention Plan
By July 1, 2024, California employers that are required to comply with SB 553 must implement their workplace violence prevention plans. Employers need to assess and resolve workplace violence hazards, train all employees, and implement investigation and record-keeping processes. Cal/OSHA has published a Model Written Workplace Violence Prevention Plan for General Industry (Non-Healthcare Settings) (“Model Plan”) to help employers meet these requirements.
For further details, please refer to our previous article: California's New Workplace Violence Prevention Mandate: Employers Must Know.
Healthcare Minimum Wage
SB 525 established a multi-tiered statewide minimum wage schedule for healthcare workers. Originally set to take effect on June 1, 2024, the implementation has been delayed by one month due to a significant budget shortfall. As a result, California's healthcare minimum wage increase will now take effect on July 1, 2024.
The new law mandates that many healthcare facilities pay their workers at least $21 per hour. Specific facilities, such as dialysis clinics and large healthcare systems, will be required to pay their workers as high as $23 per hour. This adjustment is a step towards providing hundreds of thousands of direct patient care providers, including nurses, physicians, and medical residents, with a pathway to a $25-per-hour minimum wage.
Update: Further Delay
The minimum wage increase is now delayed until at least October 15, 2024, under a new agreement with Gov. Gavin Newsom. Implementation depends on state revenue between July and September being at least 3% higher than current projections. This delay addresses budget concerns raised by the governor.
Colorado
Job Application Fairness Act
Colorado’s Job Application Fairness Act (JAFA) prohibits employers from asking about a prospective employee's age, date of birth, or dates of attendance at or graduation from educational institutions on initial job applications. This move aims to reduce age discrimination in hiring practices. Employers may request age verification under specific circumstances, such as bona fide occupational qualifications related to public or occupational safety, federal law requirements, or state and local regulations.
Employers need to update application forms, train HR staff, and regularly review hiring processes to ensure compliance.
Florida
Child Labor Law
On March 22, 2024, Florida Governor Ron DeSantis signed House Bill (HB) 49 into law, amending the state's Child Labor Law to allow 16 and 17-year-olds to work longer hours starting July 1, 2024. Key changes include:
Longer Workweeks: With parental or guardian permission, teens can now work over 30 hours per week during the school year.
Extended Daily Hours: They can work over 8 hours on school holidays, Sundays, and after 11 p.m. if they don’t have school the next day.
Seven-Day Workweeks: Teens can work seven days a week as long as total hours comply with weekly limits.’
Employers must ensure compliance with the Fair Labor Standards Act (FLSA) and maintain proof of age and written consent from both a parent and the school superintendent for teens working over 30 hours per week during the school session.
Preemption of Local Employment Regulations
CS/HB 433 introduces several pivotal provisions that employers must be aware of to ensure compliance and avoid potential legal pitfalls. One of the most noteworthy aspects of the new law is the preemption of employment regulations at the state level. Local governments in Florida will no longer have the authority to enact their own rules and ordinances concerning terms and conditions of employment. This includes areas such as minimum wage requirements, workplace benefits, heat exposure standards, and predictive scheduling for private employers.
Washington
Warehouse Employee Protections
Washington has joined New York and California in regulating warehouse worker productivity quotas, marking a significant step in state-level workplace regulation. This new law (House Bill 1762) will take effect on July 1, 2024, and imposes several key requirements on employers operating large warehouse facilities. Key requirements include integrating sufficient time for meal, rest, bathroom breaks, and travel time into productivity quotas, maintaining detailed records, and notifying employees of any changes to quotas promptly.
The law empowers the Washington State Department of Labor and Industries to investigate complaints, initiate its own investigations, and request self-audits from employers. Non-compliance can result in corrective orders, and there is a rebuttable presumption of retaliation if adverse actions are taken against employees within ninety days of protected activities.
Texas
Texas Data Privacy and Security Act
The Texas Data Privacy and Security Act (TDPSA) applies to "controllers"—businesses that determine the purpose and means of processing personal data—operating in Texas, excluding small businesses as defined by the US Small Business Administration. The TDPSA does not set a revenue threshold or minimum consumer count, thereby covering a broader range of businesses. Exemptions include state entities, nonprofits, HIPAA-covered entities, educational institutions, and others regulated by specific federal laws.
Texas residents gain significant rights over their personal data, including the ability to access, correct, and delete their data, obtain a copy, and opt-out of data processing for targeted advertising or sales. Businesses must limit data collection, implement robust security practices, obtain consent for processing sensitive data, and maintain transparent privacy policies.
The Texas Attorney General will enforce the TDPSA, with authority to investigate violations, issue demands, and impose penalties up to $7,500 per violation, with potential treble damages for willful violations. To comply, businesses should update privacy notices, establish consumer rights request processes, revise vendor contracts, and conduct data protection assessments. Proactive compliance is crucial for navigating the new regulations and ensuring data protection.
Nevada
Minimum Wage Increase
The Nevada Office of the Labor Commissioner has announced that the state's minimum wage will rise to $12 per hour on July 1, 2024, as mandated by Assembly Bill 456, passed in 2019. This final increase follows a series of annual 75-cent increments. Additionally, Nevada Ballot Question 2, passed in November 2022, has eliminated the two-tier minimum wage system, meaning the $12 minimum wage now applies to all employees, regardless of whether employers offer health benefits.
In conjunction with the minimum wage increase, Nevada's overtime regulations will also see significant changes. Employees earning less than $18 per hour will be eligible for overtime pay at 1.5 times their regular rate for any hours worked beyond eight in a 24-hour period or over 40 hours in a workweek. Those earning $18 per hour or more will qualify for overtime only after 40 hours of work in a week.
To comply with these new regulations, employers should update their payroll systems to reflect the increased minimum wage and revised overtime rules. Businesses might consider adjusting wages to meet the $18 per hour threshold to simplify overtime calculations. Additionally, employers must ensure that any third-party payroll services used are updated accordingly and review alternate work schedule agreements to align with the new legal requirements. Failure to comply can result in civil actions, back wages, and other legal penalties, making it crucial for employers to proactively adapt to these changes.
Connecticut
Voting Leave Law
The existing voting leave law will expire on June 30, 2024. Starting July 1, Connecticut employers will no longer be required to provide voting leave consisting of up to two hours of unpaid time off on the day of an election.
Municipal
New York City
Workers Bill of Rights
Effective July 1, 2024, New York City employers must comply with the posting and distribution requirements under the city’s “Workers’ Bill of Rights” law, enacted in December 2023. Employers are required to distribute the multilingual poster to all current employees and new hires and conspicuously post the information in workplaces and on any online systems used to communicate with employees. Employers that fail to do so could be subject to civil penalties after a first violation.
The New York Department of Consumer and Worker Protection (DCWP) has published the required poster, which features the words “Know your rights at work” in twelve different languages and includes a QR code directing workers to a “Workers’ Bill of Rights” page on the DCWP website containing information on local, state, and federal labor and employment laws.
Chicago
Paid Leave and Paid Sick and Safe Leave Ordinance
Effective July 1, 2024, Chicago employers must comply with the City of Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance. This requires providing up to 40 hours per year of paid leave and 40 hours per year of paid sick leave to eligible employees. The ordinance allows for the carryover of leave from year to year and includes posting and recordkeeping requirements. As the compliance deadline approaches, employers should review the final rules published on April 30, which provide clarity on key requirements such as denying leave requests, defining the 12-month benefit year, use of leave, and combined leave policies.
Conclusion
These new laws reflect ongoing efforts to enhance worker protections and streamline regulatory compliance across various states. Employers should stay informed and proactive in adapting to these changes to ensure compliance and support a fair and safe working environment.
For additional information regarding workplace laws and to understand how this could impact your business, please contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
Richard Liu, Esq. is the Managing Counsel of ILS. He serves clients as a management-side defense lawyer specializing in employment and business litigation. Richard is also an expert on litigation prevention and compliance. He regularly advises Fortune 500 companies and startups on employment, labor, and commercial matters.
Email: richard.liu@consultils.com | Phone: 626-344-8949
*Disclaimer: This article does not constitute legal opinion and does not create any attorney-client relationship.
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