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Commission pay is synonymous with outside sales positions, but are there other possibilities of commission pay beyond reaching sales quotas?

What is a Commission Payment?

Definition: Commission pay is any money paid to an employee for the sale of a product or a service on behalf of their employer. Commission payment can be a set percentage of sales or a flat dollar amount based on sales volume. The most common commission structures are:

• Base salary + commission. These employees often receive a base salary that is lower than market rate for their positions, with the understanding that this salary will be supplemented through commission earning opportunities. Example: loan officer.
• Straight commission. These employees do not have the “safety net” of a base salary. Here, all compensation comes from commissions. This structure does best with seasoned sales professionals and for positions that qualify as exempt under the Department of Labor’s Outside Sales Exemption. Example: real estate agent.
• Draw against future commission. This commission structure is a hybrid of the two described above. A minimum base salary is guaranteed each pay period, but that base salary is drawn against future commissions. Example: car sales.

Commission Payments: The Fine Print

Commission pay is not attractive to everyone. It adds an element of uncertainty to an employee’s income that can be off-putting to the risk adverse or sales professionals who are new to their careers. Employers should keep attuned to their market and to those companies they compete with for staff to gauge the compensation design that will attract the most qualified and promising employees and really grow their business.

Additionally, members of your sales teams employed in positions that do not qualify for the DOL’s sales exemptions must receive the equivalent of at least minimum wage for all hours worked in each pay period and overtime for all hours greater than 40 in a work week.

There is, however, some flexibility with the timing of commission payments. Commission can be paid in conjunction with an employee’s base salary (if applicable) or at a completely separate time. For example, it is perfectly legal for an employee to receive her salary bi-weekly and her commission payments monthly.

Commission Payment: The Possibilities

Commission pay is an effective incentive to increase productivity and the rate of a company’s growth, but unless you are managing a team of outside sales professionals, it likely not a tool in your current incentive program. But should it be? Possibly.

The Retail Exemption. The Department of Labor allows commission for retail employees through its Retail Exemption, an exemption that can free qualified employers from their overtime rate obligations if their retail employees have sufficient commission earnings. With this exemption, the earnings of non-exempt employees can be driven by their sales numbers through a legally vetted method that will not increase their overtime pay rate.

For purposes of this exemption, qualified employers are:

• retail and service establishments where 75% of the annual dollar volume comes from the sale of goods and/or services
• the company must be in a recognized retail sales or services industry
• resale establishments do not qualify

Taking the long view. Another option is a commission program designed to recognize contributions beyond monthly sales quotas, such as:

• teamwork that supports company sales goals
• customer satisfaction
• lead generation

These programs reward employees for creating an atmosphere where future and repeat business become reliable sources of company income.

Commission vs. profit sharing. Many employers look for ways to incentivize employees to meet or exceed company sales goals, but not all have employees who meet the traditional definition of sales. For these companies, a profit sharing plan might be a good compromise. Both commission and profit sharing programs are designed to motivate employees for their efforts in reaching sales and business growth goals. This, however, is where the similarities end.

• Commission plans are a significant part of a sales employee’s compensation, whereas a profit sharing plan is generally pain in addition to a full market rate salary.
• Commission payments are generally paid out monthly to enforce the strong connection between reaching sales goals and increasing income, whereas profit sharing plans are generally paid out once a year.
• Commission programs are designed as incentives for sales professionals, whereas profit sharing programs generally reward all employees to some degree.

As labor markets continue to tighten, employers must utilize every tool in their arsenal to recruit and retain the best and the brightest. Although commission programs are – and will continue to be -synonymous with outside sales positions, companies may need to embrace some out-of-the-box ideas to keep actual growth in line with their goals. Adding a commission or commission-like element for all employees can be an appropriate move for companies that believe every job and every employee impacts their bottom line.

Here is what the government has to say about Commission Pay regulations as well.

FAQ on Commission Pay

Q1: How can companies ensure equitable distribution of commission pay in team-based sales environments to foster collaboration rather than competition?
A1: In team-based sales environments, ensuring equitable distribution of commission pay requires a carefully structured commission plan that acknowledges individual contributions while incentivizing collective success. Employers should consider implementing a tiered commission structure that rewards team milestones in addition to individual performance metrics. This approach can mitigate the risk of fostering unhealthy competition, as it emphasizes the importance of teamwork and collective achievement. Regular team performance reviews and transparent communication of sales targets and achievements are crucial. Additionally, integrating customer satisfaction scores and feedback into the commission calculations can encourage team members to work together to not only meet sales goals but also enhance customer relationships, thereby aligning individual rewards with team success and overall company objectives.

Q2: What strategies can companies employ to minimize the potential negative impacts of commission pay on employee well-being and job satisfaction?
A2: To minimize the potential negative impacts of commission pay on employee well-being and job satisfaction, companies should adopt a holistic and supportive approach. This involves offering a base salary that ensures financial stability, coupled with a commission structure that rewards performance adequately. Providing comprehensive training and development opportunities can help employees enhance their skills and confidence in achieving sales targets. Employers should also foster an inclusive culture that values open dialogue, where employees can express concerns and suggest improvements to the commission structure. Additionally, incorporating non-financial rewards, such as recognition programs and career advancement opportunities, can further motivate employees beyond financial incentives. Regular review and adaptation of the commission program to meet the evolving needs of employees and the business are essential to maintaining a positive and productive work environment.

Q3: How can organizations balance the flexibility and motivation provided by commission pay with the stability and predictability that employees need, especially in volatile markets?
A3: Balancing the flexibility and motivation offered by commission pay with the stability and predictability desired by employees, especially in volatile markets, requires a strategic approach to compensation design. Organizations can achieve this balance by offering a solid base salary component that ensures financial security, coupled with a commission structure that allows for upside potential based on performance. Additionally, implementing a cap on commission earnings can prevent unsustainable expectations and maintain financial stability for the company. Offering a buffer, such as a draw against future commissions during slower sales periods, can also help smooth income fluctuations. Employers should ensure transparent communication regarding commission structures and potential market impacts, along with providing support systems such as stress management resources and financial planning assistance. Regularly reviewing and adjusting the commission structure in response to market changes and employee feedback can help maintain an effective balance between motivation and stability.

Q4: How does commission pay align with our organizational goals and culture?
A4: Commission pay can be a dynamic tool for driving performance that aligns closely with organizational goals, especially those related to growth and productivity. By incentivizing specific outcomes, commission structures can cultivate a high-performance culture. However, alignment depends on thoughtful implementation that considers the unique aspects of your company culture and objectives.

Q5: What commission structure is most effective for different roles?
A5: The effectiveness of a commission structure varies by role and industry. For roles directly influencing sales, a combination of base salary plus commission might offer stability and motivation. Straight commission suits seasoned professionals in high-earning potential roles. For roles with fluctuating sales, a draw against future commission could provide a safety net. Tailoring the structure to the role is key.

Q6: How might commission-based pay impact employee satisfaction?
A6: Commission pay introduces variability that might not appeal to everyone. Transparency, clear communication, and support systems can mitigate concerns. Offering training and gradual transition periods for those new to commission-based roles can also enhance satisfaction and confidence.

Q7: How does our commission pay structure compare with the market?
A7: Competitive analysis is crucial. Your commission structures should be attractive compared to market standards, considering both direct competitors and broader industry benchmarks. Adjustments might be necessary to ensure you’re offering compelling compensation packages that attract and retain the talent you need.

Q8: What are the legal considerations for commission pay?
A8: Compliance with minimum wage, overtime regulations, and the Department of Labor’s guidelines is non-negotiable. Structures must accommodate these legal requirements, including adherence to the Retail Exemption for qualified positions. Regular audits and legal consultations can help maintain compliance.

Q9: How can we design commission programs beyond sales quotas?
A9: Broadening commission criteria to include teamwork, customer satisfaction, and lead generation recognizes and rewards the diverse contributions employees make towards company success. Such programs can foster a more collaborative and customer-focused culture, driving sustainable growth.

Q10: Should we consider profit sharing as an alternative to commission pay?
A10: Profit sharing can complement commission pay, especially in roles indirectly related to sales. It distributes rewards more broadly, aligning all employees towards the company’s success. Deciding between or combining these approaches depends on your strategic goals and the behaviors you wish to incentivize.

Q11: What are the long-term impacts of commission pay on our company?
A11: Long-term, commission pay can significantly influence company growth, employee engagement, and retention. Monitoring performance, adjusting strategies based on feedback, and ensuring the program evolves with your business are essential steps to maximizing its benefits.

Q12: How does commission pay fit into the overall compensation and benefits package?
A12: Commission pay should be one component of a holistic compensation strategy that includes base pay, benefits, and other incentives. Its design should reflect the overall value proposition you offer to employees, ensuring it supports not just recruitment but also long-term retention and satisfaction.

Q13: Are there innovative commission structures or incentives to explore?
A13: Absolutely. Exploring out-of-the-box ideas like gamification of sales goals, tiered commission rates, or bonuses for team achievements can inject creativity and renewed motivation. Tailoring these structures to fit your workforce and business model can set you apart as an employer of choice.

Click the link to view the recent blog: Why Small Businesses Need a Competency-Based Hiring Strategy 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 this topic, depending on where your business operates. It is strongly suggested you seek consultation or legal counsel before making decisions about policies.

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.

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

New Hampshire

Hairstyle Discrimination Protections – Effective September 1, 2024

Starting September 1, 2024, NH employers will be prohibited from discriminating against applicants and employees based on their protective hairstyle. Protected hairstyle is defined as an individual’s hair type or style, including braids, locs, tights, coils, or curls, cornrows, Bantu knots, Afros, twists, and head wraps.

Deceased Employee Wage Payments – Effective September 10, 2024

Beginning September 10, 2024, the maximum amount of a deceased employee’s wages that employers are permitted to pay directly to surviving family members will increase. The maximum amount will increase from $300 to $3,000. 

Guns in the Workplace – Effective January 1, 2025

As of January 1, 2025, all NH employers will be subject to new limitations regarding the storage of firearms in an employee’s personal vehicles while at work. Employers are prohibited from:

• requiring employees to disclose if they are storing a firearm and/or ammunition in their personal vehicle; and
• searching an employee’s personal vehicle for a firearm and/or ammunition.

OREGON

Minimum Wage Increase & Non-Compete Wage Threshold – Effective July 1, 2024

Effective July 1, 2024, the OR minimum wage rates and the non-compete compensation minimum are increasing. Employers are required to display an updated minimum wage poster in their workplace.

The minimum wage rates will increase as follows:

• $14.70 Standard
• $15.95 Portland Metro
• $13.70 Non-Urban

The non-compete wage threshold increases to $113,241 per year. Employers who utilize non-compete agreements must ensure employees subject to these agreements are meeting or exceeding the minimum salary. Please keep in mind that a national ban on non-competes is scheduled to become effective on September 5, 2024.

Changes to Paid and Unpaid Leave – Effective July 1, 2024

To eliminate redundancies between Paid Leave Oregon (PLO) and the Oregon Family Leave Act (OFLA), effective July 1, 2024, family leave and serious health condition leave will be solely covered under Paid Leave Oregon.

• OFLA no longer covers parental leave and serious health conditions.
• OFLA will now only offer a total of four weeks of bereavement leave rather than 12 weeks.
• Sick child leave under OFLA will be expanded to allow employees to take leave to care for a sick child regardless of whether the child has a serious health condition.
• Employees must be permitted to use any accrued paid benefits (paid vacation, paid sick) concurrently with PLO, not to exceed the employee’s regular full wage during the period of leave.
• Leave under PLO and OFLA can no longer be taken concurrently. However, leave under OFLA and PLO must still be taken concurrently with federal FMLA for covered employers.

Interested in other current employment trends? Click the link to view the recent blog: Hiring Interns and Seasonal Employees: A Guide for Small Businesses 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.

It feels like Artificial Intelligence (AI) is EVERYWHERE we turn! So, yes, this is another blog about what it means for your small business. Why? Because AI is revolutionizing many aspects of business, and HR is no exception. Instead of avoiding it, let’s tackle it head-on so you can learn ways to maximize it for your business, how to balance it with human expertise, and what mistakes to avoid. Human judgment offers an irreplaceable value, but AI can be leveraged to benefit you and your team. 

The Rise of AI in HR

AI is transforming HR, offering new tools and efficiencies, from automating routine tasks to enhancing recruitment processes. While AI technology is increasingly used in HR functions and capabilities, it’s not a one-size-fits-all solution. Each business has unique needs, and leveraging AI without losing the human touch requires a nuanced understanding. By balancing it with human judgment, small businesses can navigate this evolving landscape effectively and set their team up for success. 

Key Considerations

While we’re seeing a rise in artificial intelligence across a variety of businesses, HR is a unique sector that requires specific considerations. While HR leaders look forward to benefits of using AI, such as increased productivity and collaboration, there are also concerns about bias, errors, privacy, and security.

Understanding Non-Discriminatory Factors: AI can help streamline hiring, but it must be used carefully to avoid discrimination. Federal and state laws protect various classes, including race, color, religion, and more. Some states offer additional protections, so it is essential to stay informed about the latest labor law updates. For instance, Colorado recently passed the Colorado Artificial Intelligence Act that was designed to protect against algorithmic discrimination. This occurs when the system disfavors an individual or group on the basis of protected characteristics, leading to unlawful employment decisions.

Balancing Efficiency and Human Judgment: While AI can handle yes/no questions and draft documents, it cannot replace the nuanced judgment required in HR. Recognize that while it can help filter potential candidates’ resumes based on job requirements, it can’t successfully navigate legal landmines throughout the hiring process. A human touch is necessary to evaluate cultural fit (or organizational fit) and other subjective factors, especially with an increase in skill-based hiring today.

Training and Upskilling Your Workforce: AI is only as good as the people who use it. If you plan to integrate AI into your team’s work, start by establishing and communicating a Use Policy. Set clear expectations about how and when it is acceptable to use. Then, think about proper training and how to invest in upskilling your workforce to ensure they can effectively utilize AI tools. This will help improve efficiency and employee engagement. 

Four Practical Tips for Incorporating AI in HR

If you feel like it makes sense for you and you’re ready to incorporate AI into your small business, try these four tips to get you started. 

1. Start Small and Scale Up

Begin by integrating into specific HR tasks, such as resume screening or drafting offer letters. Monitor the results, adjust until you have the desired outcomes, and gradually expand AI’s role as you and your team become more comfortable with the technology. 

2. Ensure Human Oversight

Always have an HR professional review AI-generated insights. AI can provide valuable data, but decisions should ultimately be made by experienced HR personnel who can interpret and apply this information contextually.

3. Stay Informed and Compliant

Regularly update your knowledge about relevant laws. INFINITI HR provides Monthly State Law Updates as a service to subscribers. Compliance is crucial to avoid legal pitfalls and ensure fair treatment of all employees. Always refer to reliable sources, such as the EEOC’s guide on employment discrimination

4. Talk with Your Team 

Introducing AI requires careful consideration about how it will impact your team. Change in the workplace always requires a strategy to navigate transitions. Communicate clearly with your team about the benefits and limitations of AI. Address their concerns and provide training to ease the transition. Create space for a dialogue with your team so you can understand their experience using AI and how they’d like to use it moving forward. Don’t work in a vacuum; partner with your IT counterpart to discuss risks and how to best transform your HR processes.

What’s the Future of HR Look Like?

The future of HR will likely involve a blend of AI and human expertise. AI can handle repetitive tasks and provide data-driven insights, but human judgment is essential for interpreting these insights and making strategic decisions. The responsibility for compliance, security, and strategy falls to human oversight. By understanding your risk tolerance and incorporating AI thoughtfully, you can improve efficiency without sacrificing the personal touch that is crucial in HR.

INFINITI HR can help you adapt to industry changes and stay ahead, ensuring you always have the personal expertise required.

 

Interested in other current employment trends? Click the link to view the recent blog: Wading Into Changes in the Workplace – Without Worry! or check back for more on human resources, payroll, insurance, and benefits.

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.