2018 Mid-Year Review

This year has brought many legislative changes, here’s a look back at the items that have become effective in the last six months, and a reminder about those items set to become effective in the last half of 2018.

Effective January 1 – June 30

• State of Washington Paid Sick Leave

◦ Most employees must accrue paid sick leave at a minimum rate of one hour of paid sick leave for every 40 hours worked. This includes part-time and seasonal workers

◦ Paid sick leave must be paid to employees at their normal hourly compensation

◦ Employees are entitled to use accrued paid sick leave beginning on the 90th calendar day after the start of their employment

◦ Unused paid sick leave of 40 hours or less must be carried over to the following year

◦ Click here for more information

• New York Paid Family Leave

◦ Both full-time and part-time employees are eligible if they work 26 or 52 consecutive weeks or days

◦ Employees are eligible for up to 8 weeks of leave with pay set at 50% of the employee’s average weekly wage

◦ Employers are permitted, but not required, to take deductions ($1.65) from employees pay

◦ Seasonal employees are eligible to complete a waiver relieving them from making contributions for paid family leave benefits

◦ Click here for more information

• New York City Predictive Scheduling

◦ Applies to both Fast Food and Retail employees

◦ Employers must provide a written good-faith estimate of schedule at time of hire

◦ Schedules must be posted 14 days in advance

◦ Penalties will be put into place for changing a schedule after it has been posted

◦ Click here for more information

• California Paid Family Leave

◦ Working parents will now be able to take twelve weeks of unpaid job-protected leave to bond with their newborns

◦ Eligibility: more than 12 months of service with the employer, worked at least 1,250 hours during the previous 12 month period, and works at a worksite where the employer has at least 20 employees within a 75 mile radius

◦ Click here for more information

• California Salary History

◦ Applies to all employers and prohibits inquiries into, and reliance on, an applicant’s salary history

◦ Click here for more information

• California Ban the Box

◦ Extends statewide ban-the-box law to employers with 5+ employees

◦ Permits criminal history inquiry only after conditional offer of employment

◦ Requires individualized assessment and written notice if applicant is disqualified

◦ Click here for more information

• California Anti-Harassment Training

◦ Requires employers with 5+ employees to post notice regarding transgender rights

◦ Also requires employers with 50+ employees to provide training addressing harassment based on gender identity, gender expression, and sexual orientation

• Maryland Data Breach Notification Law

◦ Amends existing notification law to expand the definition of protected personal information and adds notice duties, including where email access is disclosed

• Chicago Hands Off, Pants On Ordinance

◦ Requires hotel employers to provide a “panic button” to any hotel worker who works alone in rooms without other employees present (like guest rooms or restrooms).

◦ A panic button is a portable emergency contact device that a hotel worker can quickly activate to summon prompt, on-scene assistance by a hotel security officer, manager or other appropriate hotel staff member designated by the hotel employer

◦ Click here for more information

• Maryland Paid Sick Leave

◦ Employees qualify for sick leave under the ordinances if they work regularly at least 12 hours a week for a covered business

◦ Employees accrue one hour of paid sick leave for every 30 hours worked or the employer may choose to frontload 40 hours at the beginning of each year

◦ Employees can carry over up to 40 hours to the subsequent 12-month period

◦ Click here for more information

• New York City Paid Sick Leave Amendments

◦ Expands the law to allow paid leave to be used by employees when they or their family members are victims of domestic violence matters (which include disorderly conduct, harassment, and other offenses), sexual offenses, stalking, and human trafficking

◦ Expands definition of ‘family member

◦ Click here for more information

• San Francisco Updated Paid Sick Leave Rules

◦ Updates rules such as; covered employees and employers, rate of pay, breaks in service, employee verification, notice, and documentation

◦ Click here for more information

• California Overtime Pay on a Flat Lump Sum Bonus

◦ A flat sum bonus should be factored into an hourly employee’s regular pay by dividing the amount of the bonus by the total number of non-overtime hours actually worked during the relevant pay period.  The outcome should then be multiplied by the overtime rate (example; 1.5 or time and a half) to get what overtime the employee is owed

◦ Click here for more information

Effective July 1 – December 31

• Rhode Island Paid Sick Leave

◦ Effective July 1, 2018.

◦ The law requires employers with 18 or more employees in Rhode Island to provide paid sick and safe time. Employers with fewer than 18 employees are required to provide unpaid leave

◦ Employees accrue leave for all hours paid, not just worked hours

◦ Employees accrue one hour of paid sick leave for every 35 hours worked

◦ Employers can cap the accrual of paid sick leave at 24 hours per 12-month period in 2018, 32 hours in 2019, and 40 hours in the years to follow

◦ Click here for more information

• New Jersey Equal Pay Law

◦ Effective July 1, 2018

◦ Employees will be entitled to an equal rate of pay (including benefits) for “substantially similar” work

◦ Differential in rate of pay will be lawful if the employer can demonstrate that it results from (1) a seniority system, (2) a merit system, or (3) one or more bona fide, legitimate factors

◦ Pay equity claims may be brought on the basis of race, ethnicity, disability, age and gender

◦ Click here for more information

• Massachusetts Equal Pay Law

◦ Effective July 1, 2018

◦ The act limits the wage-related information that employers may obtain from job applicants, and makes it generally illegal for an employer to pay employees of one gender lower compensation than another gender for comparable work

◦ The act makes it illegal for an employer to limit employees from disclosing information about their own wages or discussing another employees wages

◦ Click here for more information

• Western Springs, IL Paid Sick Leave

◦ Effective July 1, 2018

◦ City voted to opt-in to follow Cook County’s paid sick leave policies

◦ Click here for more information

• Austin, Texas Paid Sick Leave

◦ Effective October 1, 2018

◦ Employees qualify for sick leave under the Ordinance if they perform at least 80 hours of work in a calendar year for a covered business

◦ Employees accrue one hour of paid sick leave for every 30 hours worked.  Employers do have the option to frontload the hours at the beginning of the calendar year.

◦ The law permits businesses with 15 or more employees to cap the accrual of paid sick leave at 64 hours per 12-month period based on a 12-month period

◦ Employees can carry over up to 64 or 48 hours (depending on employer size) to the subsequent 12-month period

◦ Click here for more information

• New York State Anti-Harassment Training

◦ Effective October 7, 2018

◦ Employers are required to distribute a written anti-harassment policy in the workplace and conduct annual anti-harassment training for all employees

◦ Click here for more information

• New Jersey Paid Sick Leave

◦ Effective October 29, 2018

◦ Law applies to all employers with the state of New Jersey

◦ Employees accrue one hour of paid sick leave for every 30 hours worked. Employers do have the option to frontload 40 hours at the beginning of the calendar year

◦ Employees can accrue up to 40 hours in a 12-month period and can carry over all accrued, unused sick time up to 40 hours

◦ The employer does have the option to pay out all or partial unused sick time at the end of the 12-month period. If the employee agrees to payment within 10 days from the employers offer then the employer is not required to carry over that time

◦ Click here for more information

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 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.