A Labor Compliance Roundup
Here’s a brief look at the latest labor compliance laws as of January 2024, including COVID-19 compliance, state and local initiatives, and more. While our roundup does not provide legal advice, it does offer insights into industry challenges and awareness of the many issues facing our industry. If you have questions or would like to learn more, contact us at compliance@castandcrew.com.
State and local laws
Alabama exempts overtime pay from state income tax, effective January 1, 2024 - June 30, 2025
Starting January 1, 2024, certain overtime payments to full-time hourly employees in Alabama are state tax-exempt for work exceeding 40 hours per week. This exemption is temporary, concluding on June 30, 2025, unless extended by the legislature. Additional information is available here.
California Paid Sick Leave expansion, effective January 2024
Effective January 1, 2024, California employees will gain additional Paid Sick Leave (PSL). The yearly usage limit increases to 40 hours or five days, up from 24 hours or three days. The accrual limit rises to 80 hours or 10 days, compared to the previous 48 hours or six days, with unused PSL carryover also raised to 80 hours. The accrual rate stays at one hour for every 30 hours worked. Additional information is available here.
California Reproductive Loss Leave, effective January 2024
On October 10, 2023, California Governor Gavin Newsom signed SB 848, expanding the Fair Employment and Housing Act (FEHA). The new law mandates employers to provide up to five days of protected leave for employees experiencing a reproductive loss, effective January 1, 2024. Previously, bereavement leave applied only to the death of a family member. Additional information is available here.
Chicago Paid Leave and Paid Sick and Safe Leave ordinance, effective July 2024
In November 2023, the Chicago City Council approved an ordinance enhancing paid sick leave requirements. Employers must now offer an extra 40 hours of paid leave for any purpose. Originally slated for December 31, 2023, the effective date was postponed to July 1, 2024, following amendments on December 7, 2023. Additional information is available here.
Colorado amendments to Equal Pay for Equal Work Act, effective January 2024
Colorado's recently passed Senate Bill 23-105 amends the Equal Pay for Equal Work Act, establishing new employer responsibilities and clarifying existing ones. The law now requires employers to internally announce job opportunities before selecting a candidate when posting externally. Announcements must include compensation details, benefits, and the application window closing date. Additional information is available here.
Edgewater, Colorado adopts minimum wage, effective January 2024
Edgewater, Colorado, is set to become the state's second locality, after Denver, to enact a minimum wage law. Ordinance 2023-07 goes into effect on January 1, 2024, covering employees expected to work at least four hours weekly within the city. Additional information is available here.
Hawaii transparency law, effective January 2024
Governor Josh Green of Hawaii has approved a pay transparency bill, known as 58 1057, which will take effect on January 1, 2024. This new law will mandate that employers in Hawaii with a minimum of fifty employees must provide information on job listings regarding the hourly rate or salary range that represents the anticipated compensation for the position. However, the disclosure requirement does not apply to internal transfers or promotions within the same employer, nor does it include public employee positions where compensation is determined through collective bargaining. Additional information is available here.
Illinois Paid Leave for All Workers Act, effective January 2024
Beginning January 1, 2024, the Paid Leave for All Workers Act allows employees to take leave for any reason. Covered employees accrue one hour of paid leave for every 40 hours worked, up to 40 hours per 12 months, starting from employment or January 1, 2024. Leave can be taken after 90 days of employment or by March 31, 2024, whichever comes first. Additional information is available here.
Illinois employers required to provide public transit benefits, effective January 2024
Effective January 1, 2024, employers in specified Illinois counties and townships must provide a pre-tax commuter benefit. This allows employees to use pre-tax funds for transit pass purchases via payroll deduction, applicable to services like the Chicago Transit Authority (CTA) or Regional Transportation Authority. Additional information is available here.
Illinois laws to be posted online or emailed to remote workers, effective January 2024
Effective January 1, 2024, Illinois employers must provide mandated notices to remote or traveling employees. Notices can be sent via email or posted on the employer's website or intranet regularly used for work-related communication. This amendment covers notices from the Illinois Minimum Wage Law, Illinois Equal Pay Act of 2003, Illinois Wage Payment and Collection Act, and Illinois Child Labor Law. Additional information is available here.
Illinois’ Child Extended Bereavement Leave Act, effective January 2024
Governor J.B. Pritzker signed the Child Extended Bereavement Leave Act on August 4, 2023. Effective January 1, 2024, the act allows employees unpaid leave to grieve the loss of a child due to suicide or homicide. Additional information is available here.
Employee Blood and Organ Donation Leave Act, effective January 2024
Illinois passed HB 3516, obligating private employers with 51 or more employees to offer paid organ donation leave. Employees can take up to 10 days within a 12-month period for organ donation. Additional information is available here.
Illinois Labor Dispute Act amended, effective January 2024
Governor J.B. Pritzker of Illinois approved bills HB 2907 and HB 3396 on June 9, 203, enhancing protections for striking workers. These changes limit defensive actions for employers during picketing, cap damages recoverable from labor disputes (HB 2907) and classify obstructing picketing as a Class A misdemeanor with a $500 minimum fine (HB 3396). Effective January 1, 2024. Additional information is available here and here.
Indiana enacts new tax legislation, effective January 2024
Indiana Governor Eric Holcomb signed SB 419 on May 4, 2023. Effective January 1, 2024, this law exempts non-resident employees from Indiana adjusted gross income for services rendered in Indiana for 30 days or less in a calendar year. The exemption is applicable if the employees were not Indiana residents throughout the year. Additional information is available here.
Minnesota Earned Sick and Safe Leave, effective January 2024
Minnesota has implemented a statewide Earned Sick and Safe Leave ordinance for employers with one or more employees, effective January 1, 2024. Employees accrue one hour of leave for every 30 hours worked, capped at a maximum of 48 hours annually. Additional information is available here.
Rhode Island Payment of Wages Act amendment, effective January 2024
Starting January 1, 2024, an amendment to the Rhode Island Payment of Wages Act introduces criminal liability for wage and hour violations by employers. Penalties include fines and potential jail time. Employers failing to pay wages exceeding $1,500 knowingly and willfully may face felony charges. The law emphasizes timely payment of wages, imposing a maximum penalty of three years imprisonment and / or a fine up to $5,000 for violators. Additional information is available here.
New York bans employers from requiring disclosure of personal social media login credentials, effective March 2024
On September 14, 2023, Governor Kathy Hochul of New York signed a bill into law prohibiting employers from requesting or mandating employees' social media log-in credentials. The law, effective March 12, 2024, safeguards individuals from retaliation for refusing to disclose such information. Exceptions exist for employees managing company-sponsored accounts with prior notice. Employers can access the devices provided under agreed-upon conditions, excluding personal content. Additional information is available here.
Federal laws
IRS announces 2024 retirement plan limits
Starting in 2024, the IRS permits employees to contribute up to $23,000 to 401(k), 403(b), and most 457 plans. The catch-up contribution limit for those fifty and older remains $7,500. IRA annual contribution limit is raised to $7,000, with the catch-up contribution for those fifty and over remaining at $1,000. Additional information is available here.
2024 W-4
The IRS has recently published the updated version of the Form W-4 for the year 2024. A notable change on the 2024 Form W-4, particularly for individuals with multiple jobs or married couples who both work, is found in Step 2. Previously designated for future use, Option (a) in Step 2 now provides a useful link to the IRS’s Tax Withholding Estimator. This tool assists individuals in determining the appropriate amount of tax to withhold from their paychecks. The form is available here.
COVID-19 updates
California workplace outbreak reporting requirements expire December 31, 2023
Effective January 1, 2024, California's Labor Code section 6409.6, mandating workplace COVID-19 exposure notifications, will expire. Despite this, Cal / OSHA's COVID-19 non-emergency regulations still require employers to promptly inform employees and contractors of close contact with a COVID-19 case. Additional information is available here.
New York State’s Paid Vaccine Leave expires December 31, 2023
The law granting extra paid time off for private employees in New York State to receive COVID-19 vaccinations will expire on December 31, 2023. Governor Cuomo signed the law on March 12, 2021, and it remains in effect until the specified date. Additional information is available here.
We’re here to help
Stay tuned for future updates on developments affecting employees and workplace policies. If you have any questions, please reach out to compliance@castandcrew.com.
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