February Updates

 

Dual Jobs Standard Reinstated for Tipped Positions

On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the Fifth Circuit overturned the DOL’s 2021 regulation regarding how employers pay wages for dual-job workers who receive tips. In 2021, the DOL issued a Final Rule allowing an employer to use the tip credit and pay a lower hourly rate only if the employee did non-tipped work for 20% or less of the work time, and said that the tip credit could not apply to any continuous amount of non-tipped work performed over 30 minutes in a daily shift. On December 16, 2024, to be consistent with the Fifth Circuit ruling, the DOL announced a technical rule to restore the original dual jobs regulation, which says that related duties in a tipped occupation do not need to be directed toward producing tips.

 

California Pay Data Portal is Now Open

California Gov’t Code § 12999 requires employers with 100 or more payroll or labor contractor employees, with at least one employee in California, to annually submit data on the pay, hours worked, and demographics of their employees to the California Civil Rights Department (CRD). Reports must be submitted to the CRD portal by May 14, 2025. There are updated Excel templates, instructions, user guide, employer handbook, and FAQs.

 

Illinois: Eliminates Subminimum Wages for Disabled Employees

Illinois’ Dignity in Pay Act, signed into law on January 21, 2025, mandates the phased elimination of subminimum wages for individuals with disabilities in Illinois by December 31, 2029. Employers currently using Section 14(c) of the Fair Labor Standards Act (FLSA) should begin planning for this transition to paying employees with disabilities at least the applicable state minimum wage, which is $15 per hour as of January 1, 2025. The Act establishes a transition grant program to assist employers in integrating individuals with disabilities into competitive employment. Employers must also stay informed about the five-year transition plan being developed by the state, which will provide support and benchmarks for eliminating subminimum wages.

 

Illinois: Update to Illinois Service Member Employment and Reemployment Rights Act

Effective January 1, 2025, HB 5640 adds the United States Space Force as an official branch of the Armed Forces covered under the Illinois Service Member Employment and Reemployment Rights Act (ISERRA). Employers should review and update their military leave policies accordingly.

 

Indiana: New Veterans Benefits and Services Poster

As part of SB 15 which was passed in 2024, the Indiana Department of Labor recently released the new Veteran Benefits & Services poster, which must be posted by employers with 50 or more full-time employees. This new poster contains information about substance abuse and mental health treatment, Indiana Bureau of Motor Vehicles information, minority veteran resources, legal assistance and more. The poster can be found here, and should be displayed in a conspicuous place where employees are sure to see it.

 

New Jersey: No Cause of Action for Applicants Under CREAMMA

On December 9, 2024, the Third Circuit Court of Appeals issued a decision in Erick Zanetich v. Walmart Stores providing some important guidance regarding New Jersey’s Cannabis Regulatory Enforcement Assistance and Marketplace Modernization Act (CREAMMA). The court ruled that the Act does not allow job applicants to bring a private cause of action if their job offer is rescinded due to a positive cannabis test, as the Act only protects current employees from such actions. Employers should be aware that while this ruling limits potential lawsuits from applicants, the issue may still be challenged in New Jersey state courts. Employers should continue to stay informed about how this evolving case law could impact their hiring policies related to cannabis use.

 

New York: Warehouse Worker Injury Reduction Act

Effective June 1, 2025, the New York Warehouse Worker Injury Reduction Act requires warehouse employers that directly or indirectly employ at least 100 employees at a single warehouse distribution center, or at least 1,000 employees at warehouse distribution centers statewide, to create an injury reduction program, train employees on ways to reduce injuries, and identify and minimize the risks of musculoskeletal injuries in the workplace. The injury reduction program must identify and minimize the risks of musculoskeletal injuries and disorders and contains five components: (1) worksite evaluation after engaging a qualified ergonomist to evaluate each job, process, or operation; (2) control of exposures that have caused or have the potential to cause musculoskeletal injuries and disorders; (3) employee training that includes injury reduction training covering musculoskeletal injuries and disorders; (4) on-site medical and first aid practices staffed according to New York State supervision requirements and with medical professionals operating within their legal scope of practice; and (5) employee involvement with employees and their designated representatives consulted before and during the development and implementation of the program. The requirement to enlist a qualified ergonomist is effective June 19, 2025.

 

New York: Expanded Worker’s Compensation Coverage to Include Stress Claims

Effective January 1, 2025, S.6635/A.5745 allows any employee to file for workers’ compensation for specific types of mental health injuries that are based on extraordinary work-related stress. The purpose is to expand to all workers the ability to receive PTSD coverage under workers’ compensation. Prior law only extended this coverage to first responders. Employees can seek a stress claim based on the usual workplace stress, but the stress has to be shown to be extraordinary. There is no guidance yet as to what constitutes “extraordinary” stress. This law is predicted to cause a significant increase in workers’ compensation claims. Employers should review their workers’ compensation policies to make sure coverage includes the new protections.

 

New York: Fashion Workers Act Enacted

Effective June 19, 2025, A05631/S09832, also known as the Fashion Workers Act, requires model management companies to register their businesses and be subject to several duties and responsibilities. A model management company is defined as any person or entity that: (1) is in the business of managing models participating in entertainments, exhibitions or performances; (2) procures or attempts to procure, for a fee, employment or engagements for models; or (3) renders vocational guidance or counseling services to models for a fee in New York. A model is “an individual, regardless of the individual’s status as an independent contractor or employee, who performs modeling services for a client and/or model management company or who provides showroom, parts, or fit modeling services.” Registration with the New York Department of Labor includes: (a) submitting business information, including addresses, tax identification numbers, and ownership details; (b) posting a $50,000 surety bond for companies with more than five employees; and (c) paying a registration fee based on company size. Duties owed to models include, but are not limited to, ensuring that the engagement opportunities pose no unreasonable risk of danger, using best efforts to procure opportunities, and providing models with final agreements that were negotiated with clients at least 24 hours prior to the start of a model’s services. Clients of model management companies also have specific duties and obligations to models. The Act contains a private right of action as well as joint employer liability.

 

Oregon: Increased Minimum Salary for Noncompete Agreements

In January, the Oregon Bureau of Labor and Industries (BOLI) announced its annual increase for the minimum salary required for a noncompete agreement to be enforceable. State law requires that the minimum amount increase annually based on the Consumer Price Index. The minimum salary must now exceed $116,427. Employers should review noncompete agreements and processes with legal counsel for compliance.

 

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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. © 2025 ManagEase