2024 HCM Mid-Year Legislative Updates

At A Glance

Several new laws or requirements will become effective in the second half of this year. Here's what to expect and prepare for beginning July 1, 2024, through December 31, 2024.

Effective July 1, 2024

Federal Department of Labor Final Rule on Overtime Exemption

• Employees exempt from the FLSA under the “white-collar” or Executive, Administrative, or Professional (EAP) exemptions will have a new salary threshold level of $844 per week (or $43,888 annually), up from the prior level of $684 per week (or $35,568 annually). 
• Highly Compensated Employee (HCE) minimum annual compensation will increase to $132,964. 
• This Final Rule has been challenged in the federal court system, so additional developments could impact the implementation of new requirements.
• Another increase to these levels will occur on January 1, 2025. 
• For more information, refer to the Final Rule or our Department of Labor Final Rule on Overtime Exemption article in PEAK.

Colorado Job Application Fairness Act

• Employers are prohibited from inquiring about a prospective employee’s age, date of birth, and dates of attendance at or date of graduation from an educational institution on an initial employment application. 
• For more information, refer to Colorado Senate Bill 23-058.

DC Minimum Wage Increase Impacts on Tips

• Any business that has moved away from the tip credit and now pays all of its employees the D.C. minimum hourly rate is no longer covered by the Tipped Wage Workers Fairness Amendment Act (TWWFAA), and therefore not required to provide the corresponding training, submit their sexual harassment policy, and submit reporting information online. 
• For more information, refer to the Department of Employment Services’ Public Notice or our 2024 DC Updated Minimum Wage and Tipped Wage Workers Fairness Act Update article in PEAK.

Chicago Paid Leave and Paid Sick Leave

• Employers must provide two leave policies to employees working within the city of Chicago.
  • Paid Leave: Employees will be eligible for 40 hours of paid leave.
  • Paid Sick Leave: Employees will be eligible for 40 hours of paid sick leave.
• For more information, refer to the city’s Office of Labor Standards or our Chicago Paid Leave and Paid Sick Leave Ordinance article in PEAK.

Chicago Tip Credit Elimination

• Beginning July 1, 2024, employers with covered employees may only take a reduced tip credit until the tip credit is fully eliminated on July 1, 2028.
• For more information, refer to the city's new substitute ordinance or our Chicago Tip Credit Elimination article in PEAK.

Maryland Paid Family and Medical Leave (PFML) Amendments

• PFML will be funded through a payroll contribution split between employers and employees. 
• Contributions will begin on July 1, 2025, while employee benefits will begin on July 1, 2026. 
• For more information, refer to the state’s Family and Medical Leave Insurance page or our Maryland Paid Family and Medical Leave article in PEAK.

Oregon Paid Family Leave Amendments

• Senate Bill 1515 eliminates many of the redundancies between the Oregon Family Leave Act (OFLA) and Paid Leave Oregon (PLO).
• For example, the bill eliminates duplicate coverage of the same qualifying events and clarifies the use of other leaves while receiving PLO benefits. 
• For more information, refer to the state’s Paid Leave Oregon website.

Effective September 1, 2024

Texas Workplace Violence Prevention Plan

• Healthcare facilities shall adopt, implement, and enforce a written workplace violence prevention plan to protect healthcare providers and employees from violent behavior and threats of violent behavior occurring at the facility.
• For more information, refer to Section 331.004 of the Texas Health and Safety Code.

Effective September 3, 2024

Los Angeles County Fair Chance Ordinance for Employers

• Employers are prohibited from inquiring about an applicant’s past convictions until after an offer of conditional employment has been made. 
• For more information, refer to the county’s Department of Economic Opportunity.

Effective October 1, 2024

Maryland Paystub Requirements

• Employers must provide written notice upon hire that includes pay rate, regular paydays, and leave benefits. 
• Employers must also provide the following information on each pay statement:
  • The employer’s name, as registered with the state, telephone number, and address.
  • Number of hours worked, unless the employee is overtime exempt.
  • Date of payment with the pay period’s beginning and end dates
  • Rate of pay (gross and net pay), all deductions, additional bases of pay (e.g., bonuses, commissions, etc.) 
  • Piece rates of pay and number of pieces completed at each rate.
• For more information, refer to Maryland Senate Bill 0038 or our Maryland Check Stub Requirements article in PEAK. 

Maryland Pay Transparency

• Employers must include both of the following:
  • Wage range
  • A general description of benefits and any other compensation offered for the position.
  • The information must be posted in all public and internal job postings for roles that will be physically performed (at least partially) within the state.
• For more information, refer to Maryland House Bill 649.

Maryland New Hire Notice

• Employers must provide written notice of all the following at the time of hiring:
  • The rate of pay of the employee
  • The regular paydays the employer sets
  • Leave benefits
• For more information, refer to Maryland Senate Bill 0385.

Effective November 15, 2024

New York Clean Slate Act

• Employers are prohibited from inquiring about sealed records or discriminating against applications or employees based upon sealed records.
• For more information, refer to New York Senate Bill S7551A.

For more information, refer to the 2023 HCM Year-End Legislative Updates alert or our 2023 Human Capital Management (HCM) Year-End Review article in PEAK.

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.