Compliance Update – In Case You Missed It!
Week of September 3, 2023
In the past week, there have been some significant developments that HR professionals will need to review.
Federal:
- In an anticipated move by the U.S. Department of Labor, proposed rules changing the salary threshold for employees exempt under the White-Collar Overtime Exemption were issued. The rules dramatically increase the salary basis threshold from $684 per week ($35,568 annually) to $1,059 per week ($55,068 annually). This is a 55% increase in pay. However, this figure could increase by the time final rules are issued. In addition, it increases the annual pay requirement for highly compensated employees from $107,432 to $148,988. Under the proposed rules, the salary basis threshold will automatically update every 3 years. Learn more by clicking here. All employers are encouraged to begin the process of identifying those exempt employees who are paid less than the proposed salary threshold, ensure they have a clear understanding of which of the five white-collar exemptions apply to each exempt employee, and begin conversations with their employment law attorney to strategize how the company will respond to this change and communicate it to employees.
- The 2022 EEO-1 Component 1 data collection will begin Tuesday, October 31, 2023, with the due date set for December 5, 2023. The EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, to submit demographic workforce data, including data by job category and sex and race or ethnicity to the EEOC. Although the current instruction booklet posted is for 2021 data, the EEOC anticipates the instruction booklet for 2022 data collection will be posted by September 6, 2023.
- Most employer handbooks will need to be reviewed and updated to comply with the latest National Labor Relations Board (NLRB) ruling on August 2 in Stericycle. In this ruling, employers must be able to justify their work rules before an unfair labor practice charge is filed. For those employers who remember the National Labor Relations Board rulings during President Obama’s administration, the scrutiny is very similar and focuses primarily on policies regarding confidentiality during harassment investigations, conflict of interest, and personal conduct. Using language similar to what was used a decade ago, the concern is the wording of certain policies could “chill” an employee’s right to engage in concerted, protected activity regarding working conditions. A more comprehensive article explains the changes and the pro-active steps employers should begin taking now. Even though your company may not be unionized, these rules still apply to private employers.
- The National Labor Relations Board was very busy this week, because in addition to the ruling in Stericycle, they have also ruled in Cemex Construction Materials Pacific, LLC to basically rewrite 50 years of precedent. In short, the NLRB changed union election law by favoring union representation through “card check” recognition or by way of a government mandated bargaining order rather than through secret ballot election, which has been the standard for decades. To read more about this ruling, click here.
State
- California – In case you missed it, in January 2023, a new law went into effect requiring businesses to allow individuals with certain medical conditions or who uses an ostomy device to use their toilet facilities, even if they don’t typically make those bathrooms available to the public. A business is subject to this requirement if it is open to the public for the sale of goods, has toilet facilities for its employees, and a public restroom is not readily available. For more information, click here.
- Florida – Florida’s minimum wage rate will increase $1 to $12 per hour beginning September 30. Employers will also be required to post the revised poster, which will generally become available on the day of or close to the effective date of the increase. Learn more
- Minnesota – The city of St. Paul has announced an increase to their minimum wage rate for large and macro employers to $15.57 beginning July 1, 2024, and January 1, 2024, respectively. For small businesses, the minimum wage rate will increase to $14 and for micro businesses to $12.25 beginning July 1, 2024. For more information, click here.
AAIM is your compliance solution to HR’s tough questions. If you have any questions about the changes in this article, please don’t hesitate to contact your Solutions Team at solutions.team@aamea.org.
