With 2018 is coming to a close, there are several new laws that are becoming effective on January 1, 2019. See below for a brief synopsis of the upcoming laws along with federal, state, and local tax updates.

 

Effective January 1, 2019

 

 

Federal 2019 Inflation adjustments to contribution limits

• Health Savings Account (HSA) Contribution Limits: the annual contribution limit for self-only HSA is $3,500 and the Family contribution limit is $7,000.

 

• Click here for more information.

 

• Flexible Spending Account (FSA) Limits: employees can contribute up to $2,700 to their health FSAs, up from the 2018 limit of $2,650. The increase also applies to limited-purpose FSAs.

 

• Qualified Transportation Fringe Benefit Plan Limits: employees can contribute up to $265/month towards commuter and transit benefits and $265/month towards qualified parking benefits. This is a $5 increase for both types over 2018 amounts.

 

• Qualified Small Employer Health Reimbursement Arrangement (QSEHRA): employers will be able to reimburse up to $5,150 for single coverage and $10,450 for family coverages under a QSEHRA. This is a $100 increase for single coverage and $200 increase for family coverage.

 

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• PEAK ID:PCTY-66806

 

 

Delaware Sexual Harassment Training

• Requires employers with 50 or more employees to provide sexual harassment training to new employees within one year of employment, to existing employees within one year of the effective date of the act, and every two years thereafter.

 

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New York City Anti-Sexual Harassment Training

• All employees, including short-term or part-time employees, as well as independent contractors, are subject to the training requirements if they work more than 80 hours in a calendar year and work for at least 90 days. Thus, if an employee has worked fewer than 90 days or 80 hours in a calendar year, they are not subject to the sexual harassment training requirements.

 

• Employers may choose to develop their own training, as long as the training meets the minimum requirements of the Local Law 96, or they may choose to use the training that will be developed by The New York Human Rights Commission and The New York State Division of Human rights and the New York State Department of Labor.

 

• Effective date of April 1, 2019.

 

• Click here for more information

 

• PEAK ID: PCTY-65149

 

 

California Sexual Harassment Training Update

• Requires employers with five or more employees to provide at least two hours of sexual harassment training to all supervisory employees and at least one hour of sexual harassment training to all nonsupervisory employees by January 1, 2020, and once every two years thereafter.

 

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• PEAK ID: PCTY-64861

 

 

Oregon Equal Pay law expanded

• Prohibits employers from screening job applicants based on current or past compensation includes a prohibition on using anyinformation about an applicant’s past compensation, regardless of how the information was obtained, to determine a job applicant’s suitability or eligibility for employment.

 

• Expands upon the Equal Pay Law’s criteria for evaluating whether employees perform “work of comparable character” and thus should be paid the same absent the existence of one or more bona fide factors justifying any disparity

 

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Washington Paid Family and Medical Leave

• Requires employers to provide 12 weeks of paid time off for the birth/adoption of a child, or for the serious medical condition of the employee or the employee’s family members.

 

• There will be new payroll withholding rules in 2019, and employers will need to collect and remit Paid Family and Medical Leave premiums quarterly. The premium will be 0.4% of gross wages paid each quarter starting in 2019. The employer portion will be about 37% of the premium.

 

• Employers may withhold up to the remaining 63% of the premium from employee wages if they choose.

 

• The premiums are split into two parts, Family Leave and Medical Leave. Family Leave is 1/3 of the total premium, and Medical Leave is 2/3. The Family Leave premium is paid entirely by the employee. The Medical Leave premium is split; 45% paid by employee, 55% paid by employer.

 

• Click here for more information

 

• PEAK ID: PCTY-64126

 

 

Duluth, MN Paid Sick Leave

• Requires employers in Duluth with 5 or more employees to provide employees with one hour of earned sick and safe time for every 50 hours worked.

 

• Employee can accrue one hour of earned sick and safe time for every 50 hours worked.

 

• An employee can accrue up to 64 hours of earned sick and safe time per year. Employers will permit an employee to carry over up to 40 hours of earned but unused sick and safe time into the following year

 

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Michigan Paid Sick and Safe Time

• The Earned Sick Time Act requires all private employers with one or more employees to provide paid sick and safe leave.

 

• This law may be subject to amendment during the ongoing legislative session.

 

• Possible effective date of April 1, 2019.

 

• Click here for more information

 

• PEAK ID: PCTY-63996

 

 

Westchester County, NY Paid Sick Leave

• Requires covered employers to allow eligible employees to accrue one hour of earned paid sick time for every 30 hours worked up to 40 hours per year.

 

• Effective April 10, 2019.

 

• Click here for more information

 

• PEAK ID: PCTY-66351

 

 

California Lactation Accommodation Update

• Amends lactation accommodation provisions to require employers to provide a location other than a bathroom to express milk

 

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• PEAK ID: PCTY-64861

 

 

California Salary History Update

 • Amends the statewide salary history ban, adding guidance about the questions an employer may ask during an interview and when employers must disclose pay scales for positions.

 

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California Criminal History

• Creates additional exemptions to the restriction on inquiring about an applicant’s prior arrest and detention record.

 

• Click here for more information

 

• PEAK ID: PCTY-64861

 

 

Connecticut Salary History

• Prohibits an employer from inquiring about an applicant’s salary history before an offer of employment, unless the applicant voluntarily discloses such information.

 

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Hawaii Salary History and Wage Transparency

• Prohibits employers from inquiring about an applicant’s salary history or relying on that information when determining what compensation to offer the applicant.

 

• Click here for more information

 

• PEAK ID: PCTY-61392

 

 

 

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

 

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.