Labor Law Updates For July 2024

INFINITI HR is happy to provide Monthly State Law Updates as a service to our subscribers. These briefs provide a general description and are not meant to be all inclusive of compliance requirements.This list is not inclusive of all legislative changes for employers across the U.S. Other changes may have been addressed in previous updates, which can be access from our blog.

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.

CALIFORNIA

Unincorporated Los Angeles County Fair Chance Ordinance – Effective September 3, 2024

Employers of five or more employees located in and/or doing business within unincorporated areas of Los Angeles County must comply with the new Fair Chance Ordinance, which addresses use of criminal records the in hiring process.

The Ordinance has regulations similar to those in the City of Los Angeles and adds requirements to the state Fair Chance Act, including but not limited to:

• Specific language regarding criminal records in job postings.
• Written notice of intent to run background checks after conditional offer has been extended and what types of records will be reviewed.
• Prohibition of inquiries around criminal history prior to obtaining a background check report.
• Additional steps during the individualized assessment and applicant preliminary notification process.
• Recordkeeping requirements of up to four years.

Employers are encouraged to review and update their hiring procedures to ensure compliance with the ordinance.

CONNECTICUT

Paid Sick Leave Updates – Effective January 1, 2025

As of January 1, 2025, the Connecticut Paid Sick Leave (PSL) law will impact employers with employees working in the state. Below is an overview of the updated requirements.

Covered Employer

Under the revised law, a covered employer will be defined as:

• January 1, 2025 – An employer with 25 or more employees in the state.
• January 1, 2026 – An employer with 11 or more employees in the state.
• January 1, 2027 – An employer with 1 or more employees in the state.

Covered Employee

Currently, the PSL law requires employers to provide PSL to only “service” employees; however, the revised law will require employers to provide PSL to all employees, not just service employees. Employees will be eligible to use PSL once they have been employed for at least 120 days.

Accrual Rate

Employers who choose to set up their PSL plan as an accrual will be required to amend their current accrual rate from 1 hour for every 40 hours worked to 1 hour for every 30 hours worked. The maximum annual accrual will remain at 40 hours.

Defined Family Member

The revised law defines a “family member” as a spouse, child, sibling, grandparent, grandchild, parent, or any individual who is related to the employee by blood or affinity whose association to the employee is equivalent to a family relationship.

Permitted Reasons for Leave

The revised law adds to the qualifying reasons for leave and now provide PSL if an employee or employee’s family member is a victim of family violence or sexual assault, provided the employee is not the alleged perpetrator.

Other Changes

• Employers can’t require employees to find a replacement for their scheduled shift(s).
• Employers can’t require an employee to provide documentation for using PSL.
• Required Notice: In addition to the required posting, employers will be required to provide a notice to existing employees, as well as new employees upon hire. The state will develop the notice closer to the effective date.

COLORADO

Age Discrimination Employment Law Change– Effective July 1, 2024

Under the Colorado Job Application Fairness Act (JAFA), employers are prohibited from asking candidates to disclose their age by way of asking for their date of birth, dates of graduation, or any other age-related date; however, employers may continue to ask if an employee is at least 18 years of age. Employers will be required to inform candidates that they can redact age-related information on application attachments, such as dates on a school transcript.

Exceptions to the law may apply when there is a:

• Bona fide occupational qualification pertaining to public or occupational safety;
• federal law or regulation requiring the information as part of candidate vetting; or
• state or local law or regulation based on a bona fide occupational qualification.

It is recommended that employers review their applications and other hiring documents issued prior to an employment job offer being accepted and remove any references to age-related dates accordingly.

MINNESOTA

Earned Sick and Safe Time Clarifications – Effective January 1, 2024

Clarifications have recently been made to the January 1, 2024 ESST laws:

• Employers must permit employees to use all paid leave, such as PTO, provided to them in accordance with the ESST law when the paid leave may otherwise be used for personal injury or illness.
• Eligible employees now include new hires who are expected to work at least 80 hours in one year.
• ESST must be paid at an employee’s “base rate,” which is now specifically defined.
• Employers no longer need to list an employee’s ESST balance on an employee’s earning statement; however, employers are still required to provide this information in a reasonable format.
• Employers can only require employees to provide reasonable documentation establishing their leave is covered by the ESST statute when the absence lasts for more than three consecutive scheduled workdays.
• Employers are not required to permit employees to use ESST in increments smaller than 15 minutes.
• Employees can use ESST leave for bereavement related reasons.

Employers are encouraged to review and update their existing Earned Sick and Safe Time policies and educate and train their managers regarding these updates.

Non-Competes and Non-Solicitation – Effective July 1, 2024

On July 1, 2024, all non-compete and non-solicitation provisions in contracts between a company and a customer will be banned in Minnesota. The law prohibits a company from preventing a customer from hiring or soliciting an employee of the company. Additionally, the law requires any company with existing agreements that violate the new law to provide notice to its employees of the new law and that its existing contract violates the new law.

There are exceptions for workers providing professional business consulting or computer software development.

Employers should update their handbook policies, new hire paperwork, and any other documents to remove any references to non-compete and/or non-solicitation policies.

Pregnancy Accommodation and Pregnancy & Parental Leave Changes – Effective August 1, 2024

Effective August 1, 2024, employers may not count any time an employee takes off work to attend prenatal care medical appointments against the employee’s 12-week leave entitlement under the pregnancy and parental leave law.

When an employee takes leave as a pregnancy accommodation or under the pregnancy and parental leave law, employers must maintain the employee’s coverage under any group insurance policy, group subscriber contract, or healthcare plan for the employee (and any dependents) as if the employee were still working. Employers can continue to require employees to pay their share of their premium of any such benefits.

Employers should review and update their pregnancy and parental leave policies and processes to ensure leave is recorded as appropriate, as well as ensure benefits are continued and premiums are paid.

Drug/Alcohol/Cannabis Testing Changes – Effective August 1, 2024

As of August 1, 2024, employers may use “oral fluid” (saliva) testing for drugs, alcohol or cannabis that does not require use of a testing laboratory. There are additional rules around detection levels, administering procedures, results communication, retesting requirements, and cost.

Gratuities – Effective August 1, 2024

Beginning August 1, 2024, any tips or gratuities received by credit card or other electronic payment must be credited to an employee during the same pay period in which it was received, and it must be distributed in full to the employee no later than the next scheduled pay period.

Human Rights Act Updates – Effective August 1, 2024

The MN Human Rights Act has further defined certain protections under the law. As of August 1, 2024, employees with episodic disabilities are covered under disability protections, and familial status now includes caring for adults in addition to minors.

Job Posting & Pay Transparency – Effective January 1, 2025

Beginning January 1, 2025, employers with 30+ employees at one or more worksites in MN must disclose in each job posting the salary range and a general description of all the benefits and other compensation, including but not limited to any health or retirement benefits that will be offered to the applicant hired for the position.

Salary range means the minimum and maximum annual salary or hourly range of compensation for that job opportunity at the time it posts the job. The salary range can be based on the employer’s good faith estimate but cannot include an open-ended range. If an employer does not plan to offer a salary range for the position posted, the posting must list a fixed pay rate.

Posting means any solicitation intended to recruit applicants for a specific position, including third-party recruitment, and in electronic or hard-copy form.

UTAH

Sexual Misconduct Nondisclosures are Unenforceable – Retroactive to January 1, 2023

As of January 1, 2023, employers cannot enforce a nondisclosure agreement or clause about sexual misconduct as a condition of employment. In addition, employers are prohibited from retaliating against an employee after they allege sexual harassment or sexual assault or if they refuse to agree to a nondisclosure agreement or clause, or sign an employment contract with either, as an employment condition. 

Within three days after entering it, employees can revoke a settlement agreement with a nondisclosure clause about sexual misconduct. They can also discuss sexual misconduct that they have experienced in a legal case against their attacker. 

An employer who attempts to enforce a confidentiality clause in violation of this is liable for all costs, including reasonable attorney fees, resulting from legal action to enforce the confidentiality clause, and is not entitled to monetary damages resulting from a breach of a confidentiality clause.

Military Protections – Signed and Effective March 18, 2024

On March 18, 2024, employers of all sizes are now required to provide military leave and other employment rights as follows:

• Provide up to five years of leave to employees who are members of a reserve component of the U.S. Armed Forces when they are ordered to active duty (including for training), inactive duty training, or state active duty.
• Provide employees who are called to service in the Utah National Guard or the Utah State Defense Force with the same rights and protections provided by federal law for employees that are called to federal military service
• Restore these employees to their job at the completion of their service with the seniority, status, rate of pay, and rate of vacation accrual that they would be entitled to under the Uniformed Services Employment and Reemployment Rights Act (USERRA)

Religious Accommodations – Effective May 1, 2024

Effective May 1, 2024, religious accommodation requirements now prohibit employers from making employees engage in “religiously objectionable expression” that would burden or offend the “employee’s sincerely held religious beliefs,” unless the accommodation would cause an undue burden.

“Religiously objectionable expression” is defined as “expression, action or inaction that burdens or offends a sincerely held religious belief, including dress and grooming requirements, speech, scheduling, prayer, and abstention, including abstentions relating to healthcare.” Employers with fewer than 15 employees are not required to provide scheduling accommodations.

Cybersecurity Protections – Effective May 1, 2024

As of May 1, 2024, employers who own or license computerized data that includes personal information concerning a Utah resident must conduct a reasonable and prompt investigation when there is a breach of system security to determine the likelihood that personal information has been or will be misused for identity theft or fraud purposes, and notify the resident accordingly.

Interested in other current employment trends? Click the link to view the recent blog: Labor Law Updates for June 2024 or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.