January 2024 Compliance Update: New Year, New U.S. Laws

Blocks that read 2 0 2 3 are displayed on a blue backdrop. A hand reaches in from right to flip the 3 block to 4 so it reads 2024.

January is a perfect time for a fresh start and the perfect time to catch up on the latest compliance updates reshaping the employment landscape in various U.S. states. As we step into this new year, let's ensure you're well-informed and ready to navigate the changes ahead. 

Legislation: What’s New and Next?

California Publishes Updated Wage Notices

Under the California Wage Theft Protection Act, it's now mandatory for employers to provide new hires with a comprehensive written notice at the start of their employment. This notice should cover essential details like wage rates and paid sick leave entitlements, and must be presented in the primary language used for workplace communications. The Labor Commissioner has provided a template for the wage notice, streamlining the process for employers to comply with these requirements.

Florida Employers E-Verify Requirements 

Beginning July 1, 2024, if the Department of Commerce determines that a Florida-based employer failed to use the E-Verify system, as required, three times in any 24-month period, they will impose a fine of $1,000 per day until the employer provides sufficient proof that the non-compliance has been satisfied. Non-compliance is grounds for suspension of all licenses issued by a licensing agency. Any penalty-related questions should be directed to the Florida Department of Revenue or the Department of Commerce.

Certification should occur no later than the last day of the month following the quarter in which the first reemployment tax return or report is due in a calendar year. If you’re an employer who relies on UKG to file your reemployment tax return or report, please note that UKG does not have the legal authority to certify use of E-Verify on your behalf.

New York City Requires Employee Bill of Rights

New York City approved a new ordinance mandating employers display a "Workers Bill of Rights." Employers will be required to publish the Workers Bill of Rights by July 1, 2024. Additionally, it's required that new hires receive this Bill of Rights before starting their job.

New York Governor Vetoes Ban on Non-Compete Agreements

New York made the news when its governor vetoed a bill that would have banned non-compete agreements. The bill had been passed by New York’s House and Senate, and the veto came as a surprise. Employers with New York employees should monitor this issue, as similar legislation banning non-competes is expected to be introduced in 2024.

Chicago Delays Paid Sick Leave Ordinance

In December’s blog post, we shared that the city of Chicago passed a paid sick leave ordinance. On December 13, 2023, Chicago’s City Council voted to delay the paid sick leave ordinance’s effective date to July 1, 2024.

This ordinance initially required employees to work a minimum of two hours within Chicago's boundaries over a two-week period to be eligible for paid sick leave; however, the requirement has been updated to employees working 80 hours within the city over a 120-day period. Alongside this, there's a one-year grace period until July 1, 2025, before employees can legally challenge an employer's failure to provide paid sick leave.

Colorado Enforces Equal Pay Regulations

As of January 1, 2024, Colorado is enforcing new regulations under its Equal Pay for Equal Work Act. Employers are required to inform their Colorado employees about job openings on the same calendar day the opening is made and prior to any selection for the open opportunity. Notices must be made to Colorado employees regardless of the job's location. Each job posting must include a deadline for application submissions, or a note if applications are ongoing. 

Additionally, upon selecting a candidate, employers must inform their workforce about the new hire, detailing the candidate's name, previous and new job titles, and information for employees to show interest in future similar opportunities.

U.S. Federal Fast Facts

Department of Labor Overtime Exemptions Rule 

In December 2023, the U.S. Department of Labor announced an anticipated change to the Fair Labor Standards Act (FLSA) overtime exemptions. Scheduled for April 2024, the update is set to increase the minimum salary threshold for executive, administrative, and professional exemptions from $684 weekly ($35,568 annually) to $1,059 weekly ($55,068 annually). 

2024 Form W-4 Released                                                                                                 

The 2024 version of the W-4 was published. There are not substantive changes to the form. Minor changes include references to the IRS Tax Withholding Estimator

Staying informed is key to navigating ever-changing employment laws. Let's step into this new year with confidence, knowledge, and tools to embrace these changes. Check in next month for more updates.