Two new laws will take effect next year that restrict how employers may respond to worker off-duty cannabis use.  One law will restrict employers’ ability to ask about prior cannabis use in the hiring process, and the other will limit employer actions based on positive marijuana drug tests.

Philip M. Berkowitz talks about background checks and “Ban-the-Box” laws that financial services organizations must comply with when hiring.

Global Banking & Finance Review

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Illinois state and local legislatures kept busy in 2023 with the enactment of numerous new labor and employment laws, including significant changes to paid and sick leave for employees and new protections for temporary laborers and independent contractors. While some laws took effect during 2023, implementation of others was pushed to 2024. These are some significant employment law changes requiring employer compliance in the new year.

IL Paid Leave for All Workers Act

Mike Paglialonga and Stephen Fuchs talk about the complicated patchwork of “clean slate” laws that multistate employers must consider when hiring.

SHRM Online

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The Prince George’s, Maryland County Council recently enacted Bill CB-019-2024, amending the county's Fair Criminal Record Screening Standards. Effective September 16, 2024, the ordinance—renamed “Access to Employment for Returning Citizens”—significantly restricts employers' ability to conduct criminal background checks on job applicants. Changes to the law include a smaller threshold for employer coverage, expanded limitations on employer inquiries into applicant criminal histories, and expanded protections for employees.

Employer Coverage Threshold

The pandemic seems not to have slowed down state and local lawmakers.  Indeed, over 100 new labor and employment laws and ordinances are scheduled to take effect between July 1, 2021 and November 1, 2021.

2022 is coming to a close, and the new year will be here before we know it.  While many states, cities and counties seem to be willing to pass employment laws and regulations at any time, the first day of a new year is still the number one day for new employment laws to take effect. 2023 will be no exception. 

LaToi Mayo, Kellan Coffey and Amanda Combs discuss the new Kentucky laws that focus on measures to attract businesses, increase workforce participation and increase economic growth.

The Lane Report

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Three new rules will take effect this year that alter the overtime wages subject to Alabama withholding tax and employers’ requirements in reporting those newly exempt wages. On October 31, 2023, the Alabama Department of Revenue’s Income Tax Administration issued three final rules that take effect December 3, 2023, and will cover all tax years beginning after December 31, 2023, and ending prior to June 30, 2025.  Notably, the entirety of overtime wages paid to full-time hourly employees will be excluded from Alabama withholding tax.

Janell Ahnert and Tucker Crain discuss new rules in Alabama that change the overtime pay exemption calculation and impart new reporting requirements on Alabama employers through at least June 30, 2025.

SHRM Online

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In Escano v. Innovative Financial Partners, LLC,¹ a magistrate judge held that the defendants’ decision to withhold funds from a payment required under a settlement agreement when the plaintiff refused to provide a Form W-9 did not violate the agreement.

The new tax year is swiftly approaching, along with new statutory rates, limits and changes to employment law in England and Wales that HR practitioners should be aware of. 

Annual rates and limits increases

The usual annual updates to the statutory rates and limits will come into effect in early April 2024.

Here are the key changes:

We recently reported on the saga that followed the Constitutional Court's ruling of February 8, 2024 on the conditions for applying the partial exemption from payment of withholding tax for employers organizing shift work (CIR/92, art. 275/5). 

The ruling of February 8, 2024, had given rise to fears among many employers whose successive shifts fluctuate in size that they would simply lose the tax advantage, which can represent a reduction of 10 to 15% in the wage costs associated with shift workers. 

Bradford Kelley and Mike Paglialonga explain the basics of wage and hour laws and why it’s critical for business owners to ensure their business complies with federal, state and local laws and regulations.

American Drycleaner

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Bradford Kelley and Mike Paglialonga explain the basics of wage and hour laws and why it’s critical for business owners to ensure their business complies with federal, state and local laws and regulations.

American Drycleaner

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Rebecca Goldstein talks about new workplace violence prevention laws in California and New York.

Bloomberg Law

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Bradford Kelley, Sean O’Brien and Alice Wang discuss a new AI framework from the U.S. Department of Labor and what it means for employers. (Subscription required)

Law360

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Jim Paretti offers his opinion on how things have gone in interactions with the U.S. Equal Employment Opportunity Commission during the pandemic.

Law360 Employment Authority

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Michael Lotito writes about unions and their allies’ attempts to sneak parts of the Protecting the Right to Organize (PRO) Act into the budget bill.

The Wall Street Journal

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In light of President Biden signing the Speak Out Act, Elizabeth A. Lalik, Lauren M. Bridenbaugh and Jim Paretti say this is a good time for employers to review their policies and practices for handling sexual harassment incidents that fall under all applicable federal and state statutes.

EHS Today

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Jim Paretti says several new bipartisan laws focused on issues women experience in the workplace may move employers to work on preventing instances that would violate the new measures.

Bloomberg Law

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Angel Valverde presents issues for development of international arbitration in the U.S., as there are no visas that specifically allow a foreign national to be employed as an arbitrator, attorney or expert witness in an arbitration proceeding.

International Law Quarterly

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Traditionally, January 1 has been the key date for which employers must prepare to implement new labor and employment compliance obligations for new laws passed within the previous year.  For the past several years, we have reported on employment and labor laws taking effect mid-year. Increasingly, new compliance challenges are not taking a summer vacation.

California’s legislature covered a wide array of labor and employment law topics this legislative session. The laws discussed below were signed into law by Governor Newsom and will become effective on January 1, 2024 unless otherwise noted.  This Insight includes highlights of new laws affecting employers and is not intended to cover every new state and local law that was enacted this session.

Employers should begin reviewing these requirements to help ensure compliance with these new laws. Time to update those Employee Handbooks and train the management team!

On May 3, Governor Ron DeSantis signed into law SB 2006 (codified as Section 381.00316, Florida Statutes).  The law prevents business entities from requiring that patrons or customers provide documentation certifying COVID-19 vaccination or post-infection recovery to enter or obtain service from a business in Florida. It also prohibits educational institutions from requiring students or residents, and governmental entities from requiring persons, to provide vaccination passports or proof of post-infection recovery.

Montana Senate Bill 248 went into effect on June 1, 2023. This law allows student-athletes to earn compensation from Name, Image, and Likeness (NIL) endorsement deals and is part of a trend of NIL legislation being passed by states that allow student-athletes to monetize endorsement deals.

Maryland has enacted a law allowing student-athletes to earn compensation from name, image, and likeness (NIL) endorsement deals. The law, Md. Code Ann., Educ. § 15-131, went into effect on July 1, 2023, and is part of a continuing trend of states implementing legislation allowing student-athletes to monetize endorsements.

Jim Paretti says two U.S. Supreme Court rulings on discrimination law that changed how employers evaluate religious accommodation requests and ended affirmative action in higher education will affect employers for years to come.

Law360 Employment Authority

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Since 2006, public employers in New York have been required to implement programs to prevent and minimize workplace violence.¹ Public school employers, including public school districts, New York City public schools, Boards of Cooperative Education Services (BOCES), and County Vocational Education and Extension Boards, were previously exempted from the law.

The federal government, states, counties, and cities were active again this year passing workplace legislation intended for the most part to protect employees, creating new compliance obligations for employers. Littler’s Workplace Policy Institute (WPI) has been tracking these laws as they worked their way through the legislative and regulatory processes required for these changes to go into effect. Below is our annual summary of new laws and regulations employers will have to take into account in the first quarter of 2024.