Please note the list below is not intended to be comprehensive. Our team is constantly monitoring for updates that may impact organizations across the country.
In this edition of Regulatory Roundup, your guide to the world of compliance, we look at the changes across the nation and among four states that are now in place, effective Jan. 1:
California
Illinois
Minnesota
Washington
Federal updates
Employees may add an extra $100 annually to their health care flexible spending accounts (FSA) for a maximum of $2,850. This limit also revises the annual carryover limit to $570. View the IRS’s official statement for more details.
The amount of wages eligible for the Social Security tax rises to $147,000. This shift is projected to raise the average monthly benefit for SSI recipients to $1,657. Read the official press release to learn more.
California
Assembly Bill 1003 redefines the intentional theft of an employee’s wages in excess of $950 ($2,350 for two or more workers) as grand theft.
Assembly Bill 1033 requires employers to grant up to 12 weeks of PTO for any employee caring for a parent-in-law with a serious medical condition covered under the California Family Rights Act.
Senate Bill 62 provides new guidance for the garment manufacturing industry related to recordkeeping, liability for contracted manufacturers and the definition of “garment manufacturing” itself.
Senate Bill 639 phases out the subminimum wage for persons with disabilities.
Senate Bill 657 allows remote workers to electronically receive legally required notices and documents.
Illinois
House Bill 53 requires that employers who solely use artificial intelligence to determine if an applicant qualifies for an interview must document and report demographic information to the state in order to prevent potential racial bias through the use of automation.
Minnesota
Senate File 9 included changes to the nursing mothers statute and the Women’s Economic Security Act (WESA) pregnancy accommodations statute requiring organizations of 15 or more employees to reasonably accommodate health conditions related to pregnancy and child birth upon request. The changes also prohibit any employer from not paying an employee who needs periodic, reasonable breaks to express milk.
Washington
Seattle’s minimum wage rises to $15.75 for small employers (a business with 500 or fewer employees, if the employees earn $1.52 per hour in tips or if the employer pays $1.52 per hour toward medical benefits) and $17.27 for large employers. Visit the city’s Office of Labor Standards’ website for more details.
All agriculture and dairy workers are eligible for overtime. Visit the state’s website to learn more.
Additionally, read our detailed summary of new minimum wage laws in all 50 states.
DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.