AAIM COMPLIANCE UPDATE – DECEMBER 2023

As 2023 begins to wrap up, this is a good time for businesses to ensure they’re prepared for new laws becoming effective January 1, 2024, and to ready themselves for what’s ahead. December can be an overwhelmingly busy time of year for the HR Department. AAIM stands ready to support its members. Your AAIM HR Advisor can assist you in finding the right solution at the right time for your team.

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Federal Updates

The IRS has announced its Patient-Centered Outcomes Research Institute (PCORI) fees for benefits plan year 10/1/23-10/1/24. Those fees will be $3.22 per average number of lives covered on the plan and will be due by July 31, 2024. PCORI fees were established under the Affordable Care Act. Learn more about PCORI fees on the IRS website.
The conflict between Israel and Hamas is leading to an escalation of antisemitism and religious discrimination in the workplace. Employers have an obligation to ensure that workplaces remain free from this discriminatory practice. You can learn more about the steps businesses can take to prevent this type of discrimination in this article.
The IRS has announced its 2024 adjusted limits for various benefits. Proc. 2023-34 includes updated information about Cafeteria Plans, Transportation Fringe Benefits, Adoption Assistance, and updated tax rate tables.
The IRS has issued proposed rules regarding long-term part-time employees under the Secure 2.0 Act. This summary spells out what the proposed rules may require of employers with respect to their 401(k) plans.
AI bias is still a concern for employers. Click here for the top 4 takeaways from the EEOC’s commissioner.

State Updates

California – Amendments to CA’s Paid Sick Leave Law go into effect January 1, 2024. The accrual cap is changed to an 80 hour or 10 day rolling accrual cap. Also, employees must be permitted to use up to 40 hours (5 days) of paid sick time per year. This article contains the highlights of what you need to know. Also of note is that CA will be looking more closely at misclassification of employees as independent contractors. Additionally, as of January 1, 2024, employers are prohibited from entering into or attempting to enforce post-employment noncompete agreements.

Illinois – IL’s Paid Leave Law goes into effect January 1, 2024. Final rules have been issued for this new law and employers may review FAQs on the IL Department of Labor website. As if that wasn’t enough, Chicago and Cook County have both revised their Paid Sick Leave requirements. This article will provide answers to your top 5 questions about Chicago’s New Paid Leave Requirements, and this article further summarizes the changes to these local laws.

Year-End Checklist

Wrap up 2023 action items for your retirement plans. This article contains a helpful checklist.
Update your payroll system to reflect current minimum wage rates for your state or local area and/or if you are a federal contractor subject to federal contractor minimum wage.
Update state and federal posters that may have changed recently or in conjunction with new laws becoming effective January 1.
Create and distribute updated or new policies to comply with new or revised laws, including paid leave, overtime, access to personnel files, workplace violence, etc.
Review any new state-law guidance regarding the use of noncompete agreements.
If your company uses the standard IRS mileage rate for expense reimbursement, update that rate to reflect 2024 IRS guidelines.

AAIM COMPLIANCE UPDATE – DECEMBER 2023

Federal Updates

State Updates

Year-End Checklist

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