A Labor Compliance Roundup
Here's a quick overview of the latest labor compliance laws, including state and local initiatives. This roundup isn't legal advice but offers insights into industry challenges and key issues affecting our industry. If you have questions or would like to learn more, contact us at compliance@castandcrew.com.
State and Local Laws
California
California amends rules on required whistleblower notice, effective January 2025
On July 15, 2024, Governor Newsom signed AB 2299, requiring the State Labor Commissioner to create a standardized notice of employee rights and duties under whistleblower laws. Starting January 1, 2025, employers must display this notice, outlining these rights and responsibilities. More here.
California enacts legislation to clarify employment tax rules for loan-out companies, effective September 2024
On September 30, 2024, Governor Newsom signed Senate Bill 422, confirming loan-out companies as the employers for employment tax purposes of their employee-owners or members serving motion picture production companies. More here.
Protections for child social media influencers, effective January 2025
Two new laws protect child influencers and content creators. SB 764 requires parents of minors earning from online content to place part of their earnings in trust accounts. AB 1880 expands the Coogan Law to include minors on social media, mandating employers set aside at least 15% of their gross earnings in trust until adulthood. More information can be found here and here.
Changes to workers’ compensation notices, effective January 2025
Starting January 1, 2025, AB 1870 requires workers' compensation notices to inform employees of their right to consult a licensed attorney about their benefits. It also clarifies that attorney's fees are typically deducted from the employee's recovery. More here.
California expands protections and paid sick leave uses for crime victims, effective January 2025
Starting January 1, 2025, AB 2499 expands paid sick leave for employees or their family members who are victims of certain crimes. It requires employers to provide reasonable accommodations for victims of domestic violence, sexual assault, stalking, bodily harm, or incidents involving weapons or threats. The law prohibits retaliation against employees taking leave for these reasons and integrates unpaid leave protections into the Fair Employment and Housing Act, enforceable by the California Civil Rights Department. More here.
Paid family leave, effective January 2025
Effective January 1, 2025, AB 2123 bans employers from requiring employees to use up to two weeks of accrued vacation before accessing paid family leave (PFL) benefits, which support caring for ill relatives, bonding with newborns, or assisting military family members deployed overseas. More here.
Delaware
Delaware passes paid family and medical leave law, effective January 2025
Delaware’s Healthy Delaware Families Act, providing up to 12 weeks of paid family and medical leave per qualifying event, takes effect January 1, 2026. Funding begins January 1, 2025, through employer and employee contributions. More here.
Illinois
Illinois Child Labor Law of 2024
Illinois' Child Labor Law of 2024 strengthens minor employment restrictions and employer obligations. SB 3646 defines prohibited workplaces, sets age-specific work hours, mandates valid employment certificates, and enforces civil and criminal penalties for violations. More here.
Illinois amends the Secure Choice Savings Program, effective January 2025
Effective January 1, 2025, HB 4719 amends the Illinois Secure Choice Savings Program Act, allowing employers to create open enrollment periods or establish qualified retirement plans anytime. Automatic-enrollment payroll-deduction IRAs are no longer eligible as qualified plans. More here.
Illinois adds employment verification protections, effective January 2025
Effective January 1, 2025, SB 0508 strengthens employment protections for individuals flagged by systems like E-Verify due to identification discrepancies. Employers must notify employees of document deficiencies, provide original documents upon request within seven business days, and explain how to correct discrepancies. Employers cannot take adverse action based on a discrepancy notice and must inform employees within five business days (or a shorter timeframe) about the agency's notice and contesting period. Additionally, employers must notify employees of I-9 inspections within 72 hours, detailing the inspecting entity and inspection type. If an inspection reveals invalid documents, employers must notify the employee within five business days (or a shorter timeframe), outlining the findings and the employee's rights. More here.
Maine
Maine enacts paid family leave
Starting in 2026, qualified employees in both the private and public sectors will be entitled to 12 weeks of paid leave for family or medical reasons, including caring for a family member, managing an illness, or bonding with a new child. Payroll deductions will begin on January 1, 2025, with benefits available starting May 1, 2026. More here.
Massachusetts
Massachusetts enacts a new pay transparency and pay data reporting law, effective 2025
Starting July 31, 2025, private employers in Massachusetts with 25 or more employees must include pay ranges in all job postings and provide pay range information to employees offered promotions or transfers. They must also disclose pay ranges for any position upon request from current employees or applicants. Employers with 100 or more employees must submit annual EEO data to the state by February 1 each year, beginning in 2025. More here.
Massachusetts expands reasons for use of Earned Sick Time, effective November 2024
Effective November 21, 2024, Massachusetts expanded Earned Sick Time to cover employees' own health needs or those of their spouse related to pregnancy loss, failed assisted reproduction, adoption, or surrogacy. More here.
Massachusetts paid Family Leave Update, effective January 2025
On November 13, 2024, the DFML released updated Rate Sheets reflecting the 2025 PFML contribution rate of 0.88%. Massachusetts employers must distribute the 2025 Rate Sheets to all employees using a verifiable method, though signed acknowledgments are not required. The DFML also issued an updated poster for employers to display, showing the new maximum weekly benefit of $1,170.64 (up from $1,149.90 in 2024). Employers must provide updated Notices to new employees within 30 days of hire, with employees acknowledging receipt via a signed form. A copy of the rate sheet and updated notice are on our website here. Additional information can be found here.
Michigan
Michigan minimum wage and paid sick leave update, effective January 2025
Starting in 2025, Michigan employers will see updates to wage rates and paid sick leave requirements following the Michigan Supreme Court's reinstatement of the 2018 minimum wage and paid sick leave ballot initiatives. The Michigan Department of Labor announced minimum wage increases, beginning January 1, 2025, to $10.56 per hour and $4.01 for tipped workers, with another increase on February 21, 2025, to $12.48 per hour and $5.99 for tipped workers. Annual increases will continue until reaching $14.97 per hour and $11.98 for tipped workers by February 21, 2028. Employers must also comply with the Earned Sick Time Act (ESTA), replacing the Paid Medical Leave Act (PMLA), which extends coverage to all employers with at least one employee. Small businesses (fewer than 10 employees) face reduced obligations. Employees will accrue one hour of paid sick leave for every 30 hours worked, with no cap on accrual and a maximum usage limit of 72 hours per year (40 hours for small businesses). Unused sick leave will carry over annually, and it must be paid at the employee’s normal wage or the Michigan minimum wage, whichever is higher. Amendments are in progress, and updates will be provided. More information can be found here and here.
New Jersey
New Jersey businesses with 25+ employees must offer retirement savings plans, effective September 2024 and November 2024
In New Jersey, employers with at least 25 employees and in business for two years must enroll employees in the “RetireReady NJ” program if they don’t offer a qualified retirement plan. Employees can opt out or adjust contributions anytime. Businesses with 40+ employees must comply by September 15, 2024, while those with 25 to 39 employees must comply by November 15, 2024. Employers with existing retirement plans must certify their exemption with RetireReady NJ. More here.
Washington
Washington expands paid sick leave, effective January 2025
Washington's SB 5793, effective January 1, 2025, expands paid sick leave (PSL) to cover local, state, or federal emergencies, including natural disasters and public health crises. The definition of "family member" now includes anyone who lives with the employee and depends on them for care, allowing PSL for their medical needs. More here.
Federal Laws
SECURE 2.0 Act, effective January 2025
Starting in 2025, the SECURE 2.0 Act requires employers with new 401(k) or 403(b) plans, established after December 29, 2022, to automatically enroll all new employees at a minimum 3% contribution rate, increasing by 1% annually until reaching at least 10%. This shift to automatic enrollment reverses the traditional approach for employee-contribution plans, where employees were required to opt in to participate. The Act exempts businesses with fewer than 10 employees or those operating for less than three years. The Act also introduces "super catch-up" contributions for individuals aged 60 to 63, allowing an additional $10,000 (or 150% of the regular catch-up amount) annually to their 401(k) plans, beyond the standard $7,500 catch-up limit for those aged 50 and older. More here.
Fifth Circuit overturns DOL’s 80/20/30 Rule on tip regulations, effective August 2024
On August 23, 2024, the US Court of Appeals for the 5th Circuit overturned the Department of Labor's (DOL) 80/20/30 Rule, which governed tip regulations under the Fair Labor Standards Act. The court found the DOL's rules inconsistent with the FLSA and in violation of the Administrative Procedures Act. As a result, the 80/20/30 Rule, which limited tipped employees' time on non-tipped work, is now invalid nationwide. More here.
Federal judge blocks overtime rule increase, effective immediately
A federal judge has blocked the Department of Labor's final overtime rule, which raised the salary threshold for "white-collar" exemptions from $35,568 to $43,888 on July 1, 2024, and planned to increase it to $58,656 on January 1, 2025. The threshold is now reverted back to $35,568. The Department of Labor may still appeal the ruling, and we will provide updates as they become available. More here.
Canadian Laws
Ontario’s Bill 190, Working for Workers Five Act, effective October 2024
Ontario's Bill 190, the Working for Workers Five Act, received royal assent on October 28, 2024, amending the Occupational Health and Safety Act (OHSA) and Employment Standards Act (ESA). The OHSA now excludes offices in private residences from the "industrial establishment" definition and expands "workplace harassment" and "workplace sexual harassment" to include virtual activities. The ESA allows employers to request evidence for sick leave without requiring a health practitioner's certificate and increases the maximum fine for individual violations from $50,000 to $100,000. Additional changes include updated recordkeeping, job vacancy disclosure requirements, and obligations for maintaining clean washrooms, with some provisions taking effect later. More here.
Manitoba amends its Employment Standards Code, effective November 2024
Manitoba has amended its Employment Standards Code through Bill 9, extending the duration of leave for serious injury or illness from 17 weeks to 27 weeks. Employees on leave or who have notified their employer of their intention to take leave are now entitled to up to 27 weeks of leave. More 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.