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IMPORTANT! IRS Increases Mileage Rate on July 1st!
From July 1 through December 31, 2022, the IRS has increased the standard mileage rate from 58.5 cents to 62.5 cents per mile. Employers using the IRS rate should update expense reimbursement policies and procedures.
Form I-9 Remote Inspection Accommodation Extended to October 31, 2022
In order to accommodate social distancing and remote work during the pandemic, the U.S. Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement announced special rules in 2020 permitting employers to remotely inspect employee work authorization documents visually for purposes of Form I-9 compliance, with physical inspection delayed to a later date. This accommodation was set to expire on April 30, 2022 but was extended to October 31, 2022. This provision only applies to employers and workplaces that are operating fully remotely.
California: Gender-Based Corporate Board Law Struck Down
On May 13, 2022, a Los Angeles County Superior Court struck down SB 826 which required publicly held corporations headquartered in California to have female directors on their boards. However, the state is expected to appeal the decision.
Foster City, CA: Minimum Wage Increase July 1st
The Foster City, California City Council passed Ordinance No. 648, increasing minimum wage in the city to $15.75 per hour beginning on July 1, 2022, and then to $16.50 per hour on January 1, 2023. The minimum wage will then be increased each year after based on the Regional Consumer Price Index. All employers with employees who work within the geographic boundaries of Foster City are required to comply. Covered employers are required to provide employees with written notice of the minimum wage and their rights under the Ordinance at the time of hire. Employers must also prominently post the notification at their work site.
Connecticut: Employer-Sponsored Meetings Banned
As of July 1, 2022, SB 163 prohibits employer-sponsored meetings (aka “captive audience” meetings) where employees are typically required to be present to listen to an employer presentation regarding the employer’s opinion on religious or political matters (including discussions on joining a labor organization). The ban does not include communications necessary for employees to perform their jobs, certain communications in higher education, or certain communications limited to managerial and supervisory employees.
Georgia: Employment Defined; Local Laws Regulating Work Hours Preempted
As of July 1, 2022, two new employment laws change the definition of employment and preempt local governments from enacting laws regulating works hours. Georgia Act 809 expands the definition of employment to include any services performed by an individual for wages, making more workers eligible to claim unemployment benefits. Georgia Act 823 prevents local governments from passing laws that regulate work hours, employee scheduling, or employee output of private businesses. Local governments also cannot have their own minimum wage, overtime, or employee benefit laws.
Hawaii: Minimum Wage Increase in October!
Hawaii recently passed HB 2510, which will incrementally increase the state’s minimum wage requirement to $18.00 per hour in 2028. Beginning on October 1, 2022, the minimum wage will increase to $12.00 per hour. The minimum wage will then increase to $14.00 per hour on January 1, 2024, to $16.00 per hour on January 1, 2026, and finally settling at $18.00 per hour on January 1, 2028. The law also increased the hourly wage of tipped employees to $1.00 per hour beginning on October 1, 2022. The amount then increases to $1.25 per hour on January 1, 2024 and settles at $1.50 per hour on January 1, 2028.
Chicago, IL: Minimum Wage Increase July 1st
As of July 1, 2022, the minimum wage in Chicago is $15.40 per hour for employers with 21 or more workers, and $14.50 per hour for employers with 4 to 20 workers. Tipped workers have a minimum wage of $8.70 for employers with 4 to 20 workers, and $9.24 for employers with 21 or more workers. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.
Massachusetts: Supreme Court Increases Penalty for Late Final Wage Payments
On April 4, 2022, in Reuter v. City of Methuen, the Massachusetts Supreme Court expanded employer exposure if they are late paying employee wages. The ruling stated that any time an employee’s final payment of wages is late, that employee may recover treble damages (three times the actual damages) plus attorneys’ fees. Massachusetts’ law requires employers to pay employees their final wages on the date of termination. Employees who resign must be paid the next business day. Employers should implement final pay procedures to ensure compliance.
New York: Mandatory Reproductive Rights Notice Struck Down
On March 29, 2022, in CompassCare v. Cuomo, a New York District Court blocked the 2019 requirement that employers provide a reproductive rights notice to employees in their employee handbooks. There, faith-based employers claimed the law was contrary to their First Amendment Rights. Ultimately, the court said there were less restrictive ways to achieve the state’s goal of notifying workers of their rights.
Ohio: Incorporates FLSA Overtime and Claim Rules
As of July 6, 2022, SB 47 adopts language mirroring Sections 2 and 4 of the Portal to Portal Act under the Fair Labor Standards Act (FLSA) which states that employers are not required to pay overtime wages for certain activities (e.g., commuting to work, activities occurring before or after their principal work activities, or insignificant periods of time spent after work hours). The bill also adopts the FLSA’s “opt-in” requirement for employees who want to join a collective action for an employer’s failure to pay overtime or minimum wage under state law.
Allegheny County, PA: Paid Sick Leave Amended to Exclude Certain Employees
As of April 15, 2022, Allegheny County amended its Paid Sick Days Law to exclude certain employees. The law, which previously excluded independent contractors and state and federal employees, now also excludes any member of a construction labor union covered by a collective bargaining agreement. A construction labor union is defined as a “labor union that represents, for purposes of collective bargaining, employees involved in the work of construction, reconstructions, demolition, alteration, custom fabrication, or repair work and who are enrolled or have graduated from a ‘registered apprentice program.’”
Rhode Island: Cannabis Legalized for Adult Recreational Use
Rhode Island recently passed the Rhode Island Cannabis Act (Act) which legalizes cannabis for adult recreational use beginning December 1, 2022. Despite the new law, employees will not be allowed to smoke or vaporize cannabis in the workplace. In addition, the Act does not require employers to accommodate the medical use of cannabis in the workplace, which includes remote locations. Employers may still implement and/or enforce workplace drug policies that prohibit the possession or use of cannabis in the workplace. Employers are also not prohibited from refusing to hire, discharge, discipline, take other adverse employment actions because of a violation of a workplace drug policy.
Employer group health plan and workers’ compensation plans are also not required to reimburse employees for the costs associated with medical use of cannabis. Employers with employees in “safety-sensitive” positions cannot prevent those employees from using cannabis while off-duty. However, they can ensure that employees are not working while under the influence. Employers are encouraged to train frontline supervisors to identify employees that may be under the influence of cannabis or otherwise impaired on the job.
South Carolina: Workers With Disabilities Must Receive Minimum Wage
As of May 23, 2022, SB 533 prohibits employers from using a loophole under the federal Fair Labor Standards Act to pay workers with disabilities less than minimum wage. The bill also creates a task force to create a transition plan that will phase out subminimum wage in the state by August 1, 2024 for employers with an existing Section 14(c) certificate allowing them to pay subminimum wage.
Tennessee: Enacts CROWN Act Protections
As of July 1, 2022, SB 136 prohibits employers from discriminating against individuals based on ethnicity or physical or cultural characteristics associated with a certain hair texture and protective hairstyles, including, but not limited to, braids, locks, and twists.
Texas: Commission Pay May be Owed After Termination
On May 20, 2022, in Perthius v. Baylor Miraca Genetics Lab., LLC, the Supreme Court of Texas said that where a commission contract is silent on when commissions are earned and owed, the procuring-cause doctrine controls. In other words, an employee may be entitled to a commission if they are the “proximate and but-for cause” of the sale, even after the individual’s employment is terminated.
Washington: New Job Posting Requirements
Washington recently amended its Equal Pay and Opportunities Act to require employers to include certain information in job postings. Beginning January 1, 2023, employers with 15 or more employees must state the wage scale or salary range for the job, all benefits, and any other compensation offered. Violations are subject to actual and statutory damages, civil penalties, interest, and attorneys’ fees and costs. Employers should review compensation structures to prepare to comply.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2022 ManagEase
