HCM Legislation Year-End Review

We are nearing the end of 2021 and although COVID-19 legislation is still at the forefront of the legislative landscape, there have been numerous new laws or requirements that will become effective in 2022. Below are summaries of what to expect and prepare for beginning January 1, 2022, through June 30, 2022.

California Wage Theft Act

Effective January 1, 2022

• The bill amends the current law which classifies violations of specific wage and gratuity provisions as a misdemeanor and punishable by civil penalty and remedies for recovery of wages.
• The amendment makes intentional theft of wages, including gratuities and benefits, in an amount greater than $950 from one employee or $2,350 in aggregate from two or more employees in a consecutive 12-month period, grand theft.
• Independent contractors are included as employees.

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California Family Rights Act Amendments

Effective January 1, 2022

• When an employee requests an immediate right to sue alleging a violation by the employer, the department must notify the employee in writing of the requirement for mediation prior to filing a civil action, only if mediation is requested by the employer or employee.
• The bill will also require the employee to contact the department’s dispute resolution division, in the manner specified by the department, prior to filing an action and to indicate whether they are requesting mediation.

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California Minimum Wage Updates for people with Disabilities

• This bill amends the existing law that permits the Industrial Welfare Commission to issue an employee who is mentally or physically disabled, or both, a license authorizing the employment of the licensee for a period not to exceed one year from date of issue, at a wage determined by the commission that is less than the minimum wage.
• The amendments prohibit the issuance of new licenses from being issued after January 1, 2022.
• The license may only be renewed for existing license holders who meet required benchmarks.

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West Hollywood, California Paid/Unpaid Leave

• Effective for hotel employers on January 1, 2022, and all other employers on July 1, 2022.
• Ordinance requires employers to provide up to 96 hours of paid time off for full-time employees in a 12-month benefit period.
• Employers must also provide 80 hours of unpaid sick leave to full-time employees.

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District of Columbia FMLA Amendments

• The Universal Paid Leave Act will increase the amount of paid leave per fiscal year to six workweeks of medical leave and two workweeks of prenatal leave.

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Illinois Protected Time off for Victims of Domestic Violence

• Provides victims and family members of victims of violent crimes with unpaid leave and provides that victims of violent crimes will not be barred from collecting voluntary leave benefits.

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Illinois Equal Pay Certification

• The IDOL will contact employers to indicate when they must apply for the Equal Pay Certification, assigning a date between March 24, 2022, and March 23, 2024. 
• Employers with 100 or more employees in Illinois and are required to file an EEO-1.

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Minnesota Lactation Accommodation

• Clarifies that an employer cannot reduce an employee’s pay during lactation breaks.
• Requires an employer to provide reasonable accommodation to an employee for health conditions related to pregnancy or childbirth.
• Employers shall not require employees to take leave or accept an accommodation request.

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Colorado Vacation Pay-Out Requirements

• The updated Wage Protection Rules state that employers must pay out any accrued and unused PTO or Vacation hours.
• This does not include leave for specific circumstances such as bereavement leave or jury duty.
• The rule clarifies that employees cannot forfeit any accrued and unused PTO or Vacation time that is agreed upon in an employment agreement or policy.

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Connecticut Paid Family & Medical Leave Updates

Effective January 1, 2022

• Benefit payments begin for approved paid leave benefit applications.

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New York Paid Family & Medical Leave Updates

Effective January 1, 2022

• Eligible workers will have access to up to 12 weeks of job protected paid time off (PTO).
• The definition of family member will now include biological or adopted siblings, half-siblings, and step-siblings. 

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2022 Health FSA and Other Limits

• Health FSA, including a Limited Purpose Health FSA = $2,850/year
• Health FSA maximum carryover of unused amounts = $570/year
• Qualified Transportation plans = $280/month
• Qualified Parking plans = $280/month
• Excepted Benefit HRA remains $1,800/year
• Qualified Small Employer HRA (QSEHRA) increases to $5,450/year for single coverage and $11,050/year for family coverage

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2022 HSA Contribution Limits

• Self-only coverage = $3,650/year
• Family coverage = $7,300/year

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IRS Extends Date to Furnish 1095-B and 1095-C

• The IRS published an advance notice of proposed rule-making which provides an automatic 30- day extension to furnish the 1095-B and 1095-C to individuals.
• The proposed rules do not extend the due date to file with the IRS.
• Taxpayers can rely on the proposed rules for the calendar years beginning after December 31, 2020.
• The deadline (including the automatic extension) to furnish 2021 1095-C to employees is March 2, 2022.

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Rhode Island Extends Health Insurance Filing Deadline

• Rhode Island is extending the deadline to file the required health insurance reports with the Division of Taxation to March 31, 2022.
• At this time, the extension is only for the time to file with the agency.
• The deadline to furnish reports to employees remains January 31, 2022.

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For information from the 2021 Mid-Year Alert, click here.

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.