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2023 HCM Year-End Legislative Updates

December 01, 2023

We are nearing the end of 2023 and there are numerous new laws or requirements that become effective in 2024. Below are summaries of what to expect and prepare for beginning January 1, 2024, through June 30, 2024.

Alert

Federal

2024 FSA and Other Plan Limits

  • Effective for plan years starting on or after January 1, 2024.
  • Refer to IRS Revenue Procedure 2023-23 for more information on Health Saving Accounts (HSAs), High Deductible Health Plans (HDHPs), and Excepted Benefit Health Reimbursement Arrangements (HRAs).
  • Refer to IRS Revenue Procedure 2023-34 for more information on Transportation limits, Medical Savings Accounts, and HDHPs.
  • Current Paylocity users can also refer to the following articles in PEAK for more information:
    • Health Savings Account Limits
    • 2024 Health FSA and Other Benefit Limits Announced
       

2024 Plan Limit Changes

Benefit Plan

2024

2023

Change

Health FSA

$3,200/year

$3,050/year

+ $150

Health FSA Carryover

$640/year

$610/year

+ $30

Qualified Commuter and Transit Benefits

$315/month

$300/month

+ $15

Qualified Parking

$315/month

$300/month

+ $15

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

$6,150/year for

single coverage

 

$12,450/year for

family coverage

$5,850/year for single coverage

 

$11,800/year for family coverage

+ $300

 

+ $650

Expected Benefit HRA (EBHRA)

$2,100/year

$1,950/year

+ $150

2024 HSA Annual Contribution Limits

Coverage Level

Amount

Self-Only Coverage

$4,150

Family Coverage

$8,300

Catch-Up Coverage (Age 55 or older)

$1,000

 

2024 HDHP Requirements

Coverage Level

Minimum Annual Deductible

Maximum Annual Out-of-Pocket Limit

Individual

$1,600

$8,050

Family

$3,200

$16,100

OSHA Electronic Reporting Final Rule

  • Effective January 1, 2024, employers in certain high-hazard industries with 100 or more employees are required to submit information from Form 300-Log of Work-Related Injuries and Illnesses and Form 301-Injury and Illness Incident Report.
  • Employers must include their legal company name when making the electronic submissions.
  • Refer to Federal Register Document 2023-15091 for more information.

National Labor Relations Board (NLRB) Joint-Employer Final Rule

  • Effective February 26, 2024, the NLRB will deem two or more employers to be joint employers when those employers possess the authority to control, or exercise the power of control over, the employees’ essential terms and conditions of employment.
  • The essential terms and conditions of employment include:
    • Wages, benefits, and other compensation
    • Hours of work and scheduling
    • The assignment of duties to be performed
    • The supervision of the performance of duties
    • Work rules and directions governing the manner, means, and methods of performance
    • The tenure of employment, including hiring and discharge
    • Working conditions related to the health and safety of employees
  • Refer to Federal Register Document 2023-23573 for more information.
     

California

Paid Sick Leave Amendments

  • Effective January 1, 2024, amendments change the use limit of Paid Sick Leave from 24 hours (3 days) to 40 hours (5 days) and expand the maximum balance an employee can have from 48 hours (6 days) to 80 hours (10 days).
  • An employer may still choose the accrual or frontloading method with the new increase in hours.
  • Refer to Senate Bill No. 616 or PEAK article: California Paid Sick Leave Amendments for more information.

Leave for Reproductive Loss

  • Effective January 1, 2024, employers with 5 or more employees must allow an eligible employee to use up to 5 days of already existing paid leave for a reproductive loss.
  • If there's no existing applicable leave policy, reproductive loss leave may be unpaid, except that an employee may use vacation, personal leave, accrued and available sick leave, or compensatory time off that is otherwise available to the employee.
  • The employer must allow the days an employee takes for reproductive loss leave to be nonconsecutive.
  • Refer to Senate Bill No. 848 for PEAK article: 2023 California Legislative Update for more information.

Ban on Non-Compete Agreements

  • Effective January 1, 2024, non-compete agreements are void and unenforceable.
  • Non-compete agreements entered into outside of California are not enforceable in California. 
  • Employers are prohibited from attempting to enforce a contract regardless of whether the contract was signed, and the employment was maintained outside of California.
  • Refer to Senate Bill No. 699Assembly Bill No. 1076, and PEAK article: 2023 California Legislative Update for more information.

Wage Theft Notice Additions

  • Effective January 1, 2024, at the time of a hiring, an employer shall provide to each employee a written notice in the language the employer normally uses to communicate about employment-related information to the employee, containing employment specific information. The legislation requires additional items.
  • Refer to Assembly Bill No. 636 for more information.

Berkeley Fair Workweek Ordinance

  • Effective January 12, 2024, eligible employers with 10 or more employees within the City of Berkeley must:
    • Provide advance notice of schedules
    • Provide predictability pay for last-minute schedule changes
    • Offer the option for employees to decline back-to-back shifts without adequate rest
    • Offer any additional hours that become available to existing part-time employees
  • Refer to the city's Workforce Standards and Enforcement page for more information.
     

Colorado

Pay Transparency Amendments

  • Effective January 1, 2024, employers must include a pay range and benefits in job postings for new positions and promotion opportunities.
  • Employers must make reasonable efforts to announce promotional opportunities, job openings, and pay ranges for the openings, to all Colorado employees prior to making a promotion decision.
  • Employers are required to disclose compensation ranges for Colorado jobs or jobs that could be performed in Colorado, including remote jobs.
  • Employers are prohibited from seeking the wage rate history of a candidate or to require salary disclosure as a condition of employment.
  • Refer to Senate Bill No. 19-085 for more information.
     

Illinois

Paid Leave for All Workers Act

  • Effective January 1, 2024, nearly all covered Illinois employers are required to provide eligible employees with up to 40 hours of paid leave per 12-month benefit period, to be used for any reason.
  • Upon the effective date of this Act, or when employment begins – whichever is later – eligible employees will accrue one hour of paid leave for every 40 hours worked.
  • The Act does not preempt the Chicago Paid Sick Leave Ordinance or the Cook County Earned Sick Leave Ordinance.
  • Refer to the state Department of Labor's Paid Leave for All Workers Act page or PEAK article: Illinois Paid Leave for All Workers Act for more information.

Child Bereavement Leave Amendments

  • Effective January 1, 2024, employers with 250 or more full-time employees must provide a maximum of 12 weeks of unpaid leave if the employee experiences the loss of a child by suicide or homicide.
  • Employers with at least 50 but fewer than 250 full-time employees are required to provide a maximum of 6 weeks of unpaid leave if the employee experiences the loss of a child by suicide or homicide.
  • Refer to Senate Bill No. 2034 or PEAK article: Illinois 2023 Legislative Updates for more information.

Employee Organ Donor Leave Amendments

  • Effective January 1, 2024,  employers with 51 or more employees who have been employed full-time for a period of 6 months are required to provide up to 10 days of paid time off in any 12-month period to serve as an organ donor or bone marrow donor.
  • Refer to House Bill No. 3516 or PEAK article: Illinois 2023 Legislative Updates for more information.

Work Related Labor Posters

  • Effective January 1, 2024, employers must notify employees who do not typically report to a physical workplace via email, company website, or company intranet of the notices required under the following Illinois acts:
    • Minimum Wage Act
    • Equal Pay Act
    • Wage Payment and Collection Act
    • Day and Temporary Laborer Act
    • Child Labor Act
  • Refer to House Bill No. 3733 or PEAK article: Illinois 2023 Legislative Updates for more information.

Equal Pay Act – Pay Scale Amendments

  • Effective January 1, 2024, an employer or employment agency must disclose in each public and internal posting for each job, promotion, transfer, or other employment opportunity the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation to be offered for the job, promotion, transfer, or other employment opportunity.
  • An employer must announce, post, or otherwise make known all opportunities for promotion to all current employees on the same calendar day and prior to making a promotion decision.
  • Refer to House Bill No. 3129 or PEAK article: Illinois 2023 Legislative Updates for more information

Victims Economic Security and Safety Act (VESSA) Amendments

  • Effective January 1, 2024, VESSA is amended to allow employees to take a total of up to two workweeks (10 workdays) of unpaid leave for specified reasons relating to a family or household member who is killed in a crime of violence.
  • The leave must be completed within 60 days after the date on which the employee receives notice of the death of the victim.
  • Refer to House Bill No. 2493 or PEAK article: Illinois 2023 Legislative Updates for more information.

Day and Temporary Labor Services Act Amendments

  • Effective April 1, 2024, the “Equal Pay for Equal Work” provisions will apply to workers that are assigned to work for third party client employers for more than 90 calendar days in any 12-month period. A day in which any work is performed counts toward the 90 calendar days.
  • Workers that have met the 90-day threshold must earn a rate of pay, with equivalent benefits, as the lowest paid employee that is directly hired by the client employer at the same level of seniority doing the same or similar work.
  • The state Department of Labor has provided emergency and proposed rules to further define equivalent benefits to include health care, vision, dental, life insurance, retirement plans, both paid and unpaid leave, or other similar benefits.
  • Refer to Public Act No. 103-0437 or PEAK article: Illinois Day & Temporary Labor Services Act Amendments for more information.

Chicago Transportation Benefit Program

  • Effective July 1, 2024, employers with 50 employees or more in the six-county Chicago area must provide their full-time employees with pre-tax public transit benefits after 120 days of employment.
  • Refer to the Transportation Benefits Program Act or PEAK article: Illinois 2023 Legislative Updates for more information.

Chicago Paid Leave and Paid Sick and Safe Leave Act

  • Effective July 1, 2024, any employer who employs at least one person within the City of Chicago must comply with this ordinance.
  • Employers must provide two leave policies:
    • 40 hours of Paid Leave
    • 40 hours of Paid Sick and Safe Leave
  • Refer to the city's Business Affairs and Consumer Protection website or PEAK article: Chicago, Illinois Paid Leave and Paid Sick and Safe Leave for more information.

Evanston Fair Workweek Ordinance

  • Effective January 1, 2024, the Evanston Fair Workweek Ordinance will apply to employers of more than 15 employees in the hospitality (hotels and lodgings), food service and restaurant, retail, warehouse services, building services, and manufacturing industries.
  • Any employees who qualify for minimum wage and perform at least two hours of work in a workweek in Evanston will be subject to the ordinance.
  • The Ordinance requires certain employers to:
    • Provide employees with 14 days’ notice of their work schedules
    • Compensate employees for changes or cancellations to their scheduled shifts that occur with less than 14 days’ notice
    • Offer additional hours to existing employees before hiring new part-time employees
    • Provide additional pay for employees who agree to work “clopening” shifts that start less than 11 hours after the last shift ended
  • Refer to the city's Fair Workweek page for more information.
     

Minnesota

Earned Sick and Safe Leave Act

  • Effective January 1, 2024, Minnesota employers must provide all employees with up to 48 hours of earned sick and safe leave annually.
  • Employees may accrue up to 48 hours of ESSL per year under the statute.
  • Employees accrue a minimum of one hour of ESSL for every 30 hours worked.
  • The law does not preempt local sick and safe leave requirements.
  • Refer to the state Department of Labor and Industry's Earned Sick and Safe Time page or PEAK article: Minnesota Earned Sick and Safe Leave for more information.

Bloomington Paid Sick and Safe Leave Amendments

  • Effective January 1, 2024, the Bloomington Earned Sick and Safe Leave ordinance is amended to:
    • Remove the size requirement and apply requirements to all employers
    • Align leave reasons to Minnesota's Earned Sick and Safe Time law
    • Permit frontloading 48 hours if unused leave is paid out at the end of the year or 80 hours if not
    • Permit workers to take paid time off upon hire (currently, after 90 days of employment)
  • Refer to the city's Earned Sick and Safe Time (ESST) page or PEAK article: Bloomington, Minnesota Paid Sick and Safe Leave for more information.

Rhode Island

Payment of Wages Act

  • Effective January 1, 2024, employers that violate Rhode Island’s wage payment laws are subject to a fine of at least $400 for each separate offense.
  • Employers that knowingly and willingly violate state law for regular wage payments, wage payments for deceased employees, and wage payments upon termination of employment are guilty of a felony if the amount of wages owed exceeds $1,500. They may also be subject to a $5,000 fine, imprisoned for up to three years, or both.
  • Refer to the Payment of Wages Act's text for more information.


Note: Refer to our HCM Mid-Year Review alert or PEAK article: 2023 Human Capital Management (HCM) Mid-Year Review for information on new laws or requirements that have become effective since June 30, 2023, or will become effective before January 1, 2024.

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.

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