HCM Mid-Year Review

June 22, 2020

Below are federal and state level summaries of what to expect and prepare for beginning July 1, 2020 through December 31, 2020.

Over the past four months much of the focus has been on Coronavirus legislation but there has been movement in other areas of employment law legislation that may have impact on your business.  Below are summaries of what to expect and prepare for beginning July 1, 2020 through December 31, 2020.

Federal - EEO- 1 Filing 

  • The 2019 EEO-1 filing date has been postponed. The EEOC is seeking approval to collect the component 1 data for the EEO-1 survey for 2019, 2020, and 2021. They are not seeking to collect component 2 pay data.
  • The opening of the collection, as well as the new deadline date, will be announced by posting a notice on the EEOC home page and sending a notification letter to eligible EEO-1 filers.
  • Click here for more information

Federal - Fluctuating Workweek Method of Computing Overtime

  • Effective date of August 7, 2020.
  • The Department of Labor is revising its regulation for computing overtime compensation of salaried nonexempt employees who work hours that vary each week (fluctuating workweek) under the Fair Labor Standards Act.
  • The final rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method of compensation, and that such payments must be included in the calculation of the regular rate as appropriate under the FLSA.
  • Click here for more information.
  • PEAK Article: PCTY - 88419

California – Secure Choice (CalSavers)

  • Registration deadline extended to September 30, 2020
  • Extension is for large employers with more than 100 employees
  • Click here for more information
  • PEAK Article: PCTY-88113

Colorado - Final Rules Implementing the COMPS Order

  • Effective July 15, 2020
  • Amends the required contents of a wage statement and requires employers to give employees access to wage records
  • Clarifies overtime and breaks for companions
  • Click here for more information.

Florida – Economic Development Incentive Recipients must use E-verify 

  • Effective July 1, 2020 applicants of an economic development incentive must provide proof that the business is registered with and uses the E-verify   
  • Employers must verify all newly hired employees.
  • Public employers or contractors or subcontractors,must verify employment eligibility, by E-verify beginning January 1, 2021. 
  • Private employers must useE-verify or other comparable methods to verify employment eligibility for employees beginning January 1, 2021. 
  • Click here for more information. 
  • PEAK ID: PCTY-86372 

Chicago, IL – Fair Workweek Ordinance

  • Effective date of July 1, 2020, except for safety-net hospitals that will be covered beginning January 1, 2021.
  • The ordinance covers scheduling requirements such as; initial estimate of hours at new hire, predictability pay, right to decline schedules, posting requirements of 10 days in advance of the first day of the new work schedule, choice of additional hours, and right to rest.
  • There are specific employee eligibility requirements.
  • A covered employer must have more than 100 employees globally, 50 of whom are covered employees under the ordinance, with the threshold for non-profits and restaurants raised to 250.
  • An emergency order was passed to provide exceptions to the obligation to pay predictability pay under the Fair Workweek Ordinance if the work schedule change is caused by certain circumstances, including a “pandemic.”
  • Click here for more information
  • PEAK Article: PCTY-77410

Chicago, IL - Chicago Paid Sick Leave Rules Updated

  • Effective July 1, 2020.
  • Employers may satisfy the workplace posting requirement through their usual methods of communication for such notices, whether by physical posting or electronic notice.
  • Employers may also satisfy the first paycheck individual notice requirement with either physical or electronic notice.
  • Employers must now provide individual notice to employees on an annual basis with their first paycheck on or following July 1.
  • New recordkeeping requirements for employers with tipped and non-tipped employees.
  • Click here for more information

Illinois - Sexual Harassment Training 

  • Every employer with employees working in the State of Illinois is required to provide employees with sexual harassment prevention training. Training for all employees must be completedinitially by 12/31/2020, and annually there-after. 
  • Supplemental training must be provided to restaurant and bar employees. 
  • Click here for more information. 
  • PEAKID: PCTY-78009 

Maryland – Restaurant Employer Tip Credit Statement 

  • Effective October 1, 2020 Restaurant Employers who use a tip credit, must provide employees a written or electronic wage statement and they must provide a written or electronic tip credit wage statement.  
  • Employers must show the employees’ effective hourly rate or pay, including employer paid cash wages plus all reported tips, for all tip credit hours worked for each workweek in the pay period.
  • Restaurant employers must provide each employee for whom they claim a tip credit, with a tip credit wage statement for each pay period that reflects all reported tips for tip credit hours for each workweek of the pay period.
  • Click here for more information.

Pennsylvania – Construction Industry Required to use E-verify

  • Effective October 1, 2020, the Pennsylvania Construction Industry Employer Verification Act prohibits an employer in the construction industry from knowingly employing unauthorized employees. The Act also requires employers to use the Federal E-Verify program.
  • Click here for more information.

Bernalillo County, NM - Employee Wellness Act

  • Effective July 1, 2020.
  • Requires covered employers to provide paid time off that employees can use for any reason.
  • Applies to employers that must apply for a county business registration with at least two employees and a physical premise in the county’s unincorporated limits.
  • Specific notice requirements are required
  • Click here for more information.

New Jersey - Paid Family & Medical Leave

  • Effective July 1, 2020.
  • Workers will be able to claim up to 12 consecutive weeks of Family Leave Insurance benefits during a 12-month period (up from the current maximum of six weeks).
  • Workers who take intermittent days for caregiving or bonding will be able to claim benefits for up to 56 days, up from 42 days under the old law.
  • The maximum weekly benefit rate will be calculated at 85% of a claimant's average weekly wage, up to a maximum of $881 per week.
  • Workers with more than one job will have the option to take leave from one employer while continuing to work for another. Their weekly benefit rate will be based only on wages from the employment from which they are taking leave.
  • Click here for more information.

New York – Tip Credit for Miscellaneous Industries 

  • Beginning June 30, 2020 the tip credit for miscellaneous industries will be cut in half and the tip credit will have to be eliminated on December 31, 2020.  
  • This affects Nail Salon Workers, Hairdressers, Aestheticians, Car Wash Workers, Valet Parking Attendants, Door-persons, and Tow Truck Drivers. 
  • Click here for more information 
  • PEAK ID: PCTY-82234 

New York State – Paid Sick Leave 

  • Effective September 30, 2020
  • Employers must keep accurate payroll records showing the amount of sick leave provided to each employee.The records must be retained for at least 6 years.  
  • Employers with 100 or more employees: employees must be allowed to accrue and use up to 56 hours of paid sick leave.
  • Employers with between five and 99 employees, and employers with four or fewer employees and a net income greater than $1 million: employees must be allowed to accrue and use up to 40 hours of paid sick leave.
  • Employers with four or fewer employees and a net income less than $1 million: employees must be allowed to accrue and use up to 40 hours of unpaid sick leave.
  • Click here for more information
  • PEAK ID: PCTY-86456

New York – Prevailing Wage Workers Wage Theft Notice and Check Stub Requirements 

  • Effective June 23, 2020 
  • If an employer uses a wage supplement as a part of the prevailing wage, employers must provide additional information on the new hire wage theft notice including the hourly rate claimed, type of supplement, name and address of the entity providing the supplement, and any agreement requiring or providing the supplement and how a copy of the agreement can be obtained.  
  • The employer must also include on each wage statement the prevailing wage supplements claimed as part of prevailing wage requirements, and the type of each supplement claimed and the hourly rate for each; or the wage statement must be accompanied by a copy of the applicable “new hire notice”.
  • PEAK ID: PCTY-87744 

New York - Home Healthcare Aides Wage Theft Notice and Check Stub Requirements 

  • Effective October 1, 2020 
  • In addition to the existing requirements for the new hire wage theft notice, home healthcare employers must specify on a home care worker’s new hire form the benefits the employee is receiving under New York’s Wage Parity Law, including each type of benefit provided. 
  • Home healthcare employers must include the benefit portion of the minimum rate of home care aide total compensation, and each type of home care aide benefits provided on the wage statement for home healthcare 
  • PEAK ID: PCTY-87744 

Virginia – Check Stub Requirements 

  • VA legislature provided additional clarification on check stub requirements effective July 1, 2020.Employers are required to provide pay statements that clearly reflect the number of hours worked if the employee is paid either on an hourly basis or based on a salary that does not meet the salary level threshold for an exempt employee under the Fair Labor Standards Act. 
  • PEAK ID: PCTY-82137

Virginia – Pay Transparency Law

  • Effective July 1, 2020 Employers in Virginia are not permitted to discharge or take retaliatory action against an employee for discussing their wages or compensation with another employee.
  • The law does not apply to employees who have access to compensation information of other employees or applicants as a part of their essential job function, unless the disclosure is in response to a formal complaint or charge in connection with an investigation, or is consistent with a legal duty to disclose the information.
  • Additional information can be found here.

Washington – Overtime Updates 

  • Effective July 1, 2020 salary thresholds for overtime exempt employees will begin increasing and will continue to increase annually on January 1st through 2028. Employers should use the Federal weekly salary threshold of $684 until January 1, 2021, as it is more favorable than the Washington weekly salary threshold of $675.  
  • New requirements for white collar, computer professional, and outside sales person overtime exemptions are effective July 1, 2020. 
  • Click here for more information 
  • PEAK ID: PCTY-86175