Labor Law Updates for October – 2021

3/7/22: UPDATING BASED ON RECENT CHANGES. SEE BELOW.

INFINITI HR is happy to provide Monthly State Labor 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. Changes may have been addressed in previous updates, which can be accessed from our blog.

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 accessed online at: https://inspiringhr.com/blog.

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

Some of the notable upcoming State Changes in this issue are as follows:

FLORIDA

FL – Reporting Independent Contractors – October 2021

Florida businesses are now required to submit new hire information for their independent contractors to the Florida Department of Revenue.

Florida businesses that have paid an independent contractor $600 or more in a calendar year must submit new hire information within 20 days after their first payment to the independent contractor or the date on which the business and independent contractor entered into the contract, whichever is earlier.

For example, if a business (the “service recipient”) contracts with a painter on October 10 to paint its offices and makes the first payment to the painter on October 24, the business must submit information within 20 days of October 10.

If businesses (service recipients) report individuals electronically, the reports may be made in two monthly transmissions, but the transmissions may not be less than 12 days or more than 16 days apart.

The report must include the (i) name, (ii) address, (iii) social security number or other identifying number assigned to the individual under section 6109 of the Internal Revenue Code, (iv) the date services for payment were first rendered by the individual, and (v) the name, address, and employer identification number of the service recipient. Questions on reporting can be submitted to Florida New Hire Reporting Center at (850) 656-3343 or Toll-Free 1 (888) 854-4791 or email newhiresupport@floridarevenue.com.

Business should:

• Evaluate their existing independent contractor relationships and determine their reporting requirements under the new law; and
• Update their internal onboarding and reporting policies.

Given the mandatory reporting obligations to the state, it is also recommended that businesses consider performing an audit of their worker classifications to ensure that their independent contractors are properly classified.

ILLINOIS

IL – Work Authorization Status – Effective Immediately – All Employers

The Illinois Human Rights Act (IHRA) was amended, making it a civil rights violation for employers to discriminate against an employee or job applicant based on their federally authorized work status. This means that any person legally authorized to work in the United States, regardless of the length of their work authorization, is protected by the Illinois Human Rights Act.

This change in law aligns protections in the Illinois Human Rights Act with those already in federal law. The House Bill’s Declaration of Policy states that the purpose of this regulation is “to prevent discrimination based on the specific status or term of status that accompanies a legal work authorization.”

Because this amendment to the IHRA took effect immediately, Illinois employers should review their current policies and practices in order to comply with this recent amendment.

IL – “Association” Disability Discrimination – Effective Immediately – All Employers

The Illinois Human Rights Act (IHRA) was amended to include in the definition of disability discrimination the “unlawful discrimination against an individual because of the individual’s association with a person with a disability.” This definition brings Illinois’ law in line with the federal Americans with Disabilities Act (ADA). The difference, however, is that the ADA applies to employers with 15 or more employees and the IHRA defines employers as having one or more employees.

Because this amendment to the IHRA took effect immediately, Illinois employers should review their current policies and practices in order to comply with this recent amendment.

NORTH CAROLINA

NC – Payroll Practice Changes – Effective Immediately

The newly enacted revision to the North Carolina Wage and Hour Act (NCWHA) affects how employers address certain payroll practices. Employers must provide written notification of promised wages, payday, and place of payment to newly hired employees. Thus, an employer no longer has the option of orally notifying employees of promised wages. Employers must provide a written notice at least an entire pay period before making any changes in promised wages. Separated employees must submit a request in writing if they want their final paycheck mailed to them, and the paycheck must be sent using trackable mail.

Recommendation:

Employers should follow up all verbal offers of employment with an employment offer letter confirming the verbal offer with the new hire. When notifying employees of any adjustment to their wages employers need to create a written notice and ensure the employee initials or signs acknowledging the wage adjustment and the effective date. Employers may want to consider adding to their exit interview process with a terminating employee when and how their final payroll check will be distributed.

NC – City of Charlotte Non-Discrimination Ordinance – Effective January 2022

The City of Charlotte passed an ordinance extending nondiscrimination protections to employees working for employers with 15 or less employees located within the city limits of Charlotte. The ordinance prohibits discrimination in all employment practices based on race (including natural hairstyle), sex (including pregnancy, sexual orientation, gender identity and gender expression), gender, religion, national origin, ethnicity, age, familial status, veteran status, and disability. While employees will not have the right to bring a private civil lawsuit for violation of the ordinance, the ordinance subjects small businesses to new legal processes, ultimately increasing their risk of liability for alleged discrimination.

OREGON

OR – Oregon Family Leave Updates – Effective January 1, 2022

The state of Oregon is updating its Family Leave Act regulations to allow for: 1) a shorter eligibility period during specifically defined “public health emergencies”, 2) child home care to be listed as a qualifying reason to use leave for defined school and childcare closures and 3) explanation of eligibility requirements for those employees who leave a company and return within a defined period of time.

https://www.oregon.gov/boli/workers/pages/oregon-family-leave.aspx

PENNSYLVANIA

PA – Allegheny County Paid Sick Leave – December 15, 2021

Employers who have employees working in Allegheny County will be required to provide Paid Sick Leave under the following guidelines:

Employers with 26 or more employees: 

Employers must provide a minimum of one hour of PSL sick time for every 35 hours worked, up to 40 hours (5 days) per year. Employers must allow employees to rollover up to 40 hours of accrued but unused sick time into the next year or provide a lump sum of 40 hours at the beginning of calendar year.

Employees may use sick time for the following:

• for the diagnosis, care or treatment (including preventative care) of the employee’s own mental or physical illness, injury or health condition; or
• to care for a family with a mental or physical illness, injury or health condition or who needs medical diagnosis, care, or treatment (including preventive care) of same; or
• if the employee’s place of business is closed by order of a public official due to a public health emergency or an employee’s need to care for a child whose school or place of care is closed for that reason; or
• to care for a family member when it has been determined by the health authorities or a health care provider that the family member’s presence in the community would jeopardize the health of others because of the family member’s exposure to a communicable disease, whether or not the family member has actually contracted the communicable disease.

WASHINGTON

WA – Long Term Care WA Cares Fund – This was just pushed back – it will go into effect in 2023.

The state of Washington will be requiring employers to collect premiums for the new WA Cares Fund, which will provide Long Term Care benefits for qualifying employees starting in 2025. Employees who have private Long Term Care insurance may file individually for a permanent exemption from payroll deductions, making them also unable to apply for benefits. The program will allow for up to $36,500 in benefits (adjusted annually) for support and services such as in-home or facility care, transit coordination, environmental modifications and family caregiver assistance.

https://wacaresfund.wa.gov/employers/

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

Interested in other current employment trends? Click the link to view the recent blog: Your Checklist for Creating Highly Engaged Team Meetings or check back for more on human resources, payroll, insurance, and benefits.