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Labor Law Updates For July 2024

July 17, 2024/in Blog, HP Featured/by Inspiring HR

INFINITI HR is happy to provide Monthly State Law Updates as a service to our subscribers. These briefs provide a general description and are not meant to be all inclusive of compliance requirements.This list is not inclusive of all legislative changes for employers across the U.S. Other changes may have been addressed in previous updates, which can be access from our blog.

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.

CALIFORNIA

Unincorporated Los Angeles County Fair Chance Ordinance – Effective September 3, 2024

Employers of five or more employees located in and/or doing business within unincorporated areas of Los Angeles County must comply with the new Fair Chance Ordinance, which addresses use of criminal records the in hiring process.

The Ordinance has regulations similar to those in the City of Los Angeles and adds requirements to the state Fair Chance Act, including but not limited to:

Specific language regarding criminal records in job postings.
Written notice of intent to run background checks after conditional offer has been extended and what types of records will be reviewed.
Prohibition of inquiries around criminal history prior to obtaining a background check report.
Additional steps during the individualized assessment and applicant preliminary notification process.
Recordkeeping requirements of up to four years.

Employers are encouraged to review and update their hiring procedures to ensure compliance with the ordinance.

CONNECTICUT

Paid Sick Leave Updates – Effective January 1, 2025

As of January 1, 2025, the Connecticut Paid Sick Leave (PSL) law will impact employers with employees working in the state. Below is an overview of the updated requirements.

Covered Employer

Under the revised law, a covered employer will be defined as:

January 1, 2025 – An employer with 25 or more employees in the state.
January 1, 2026 – An employer with 11 or more employees in the state.
January 1, 2027 – An employer with 1 or more employees in the state.

Covered Employee

Currently, the PSL law requires employers to provide PSL to only “service” employees; however, the revised law will require employers to provide PSL to all employees, not just service employees. Employees will be eligible to use PSL once they have been employed for at least 120 days.

Accrual Rate

Employers who choose to set up their PSL plan as an accrual will be required to amend their current accrual rate from 1 hour for every 40 hours worked to 1 hour for every 30 hours worked. The maximum annual accrual will remain at 40 hours.

Defined Family Member

The revised law defines a “family member” as a spouse, child, sibling, grandparent, grandchild, parent, or any individual who is related to the employee by blood or affinity whose association to the employee is equivalent to a family relationship.

Permitted Reasons for Leave

The revised law adds to the qualifying reasons for leave and now provide PSL if an employee or employee’s family member is a victim of family violence or sexual assault, provided the employee is not the alleged perpetrator.

Other Changes

Employers can’t require employees to find a replacement for their scheduled shift(s).
Employers can’t require an employee to provide documentation for using PSL.
Required Notice: In addition to the required posting, employers will be required to provide a notice to existing employees, as well as new employees upon hire. The state will develop the notice closer to the effective date.

COLORADO

Age Discrimination Employment Law Change– Effective July 1, 2024

Under the Colorado Job Application Fairness Act (JAFA), employers are prohibited from asking candidates to disclose their age by way of asking for their date of birth, dates of graduation, or any other age-related date; however, employers may continue to ask if an employee is at least 18 years of age. Employers will be required to inform candidates that they can redact age-related information on application attachments, such as dates on a school transcript.

Exceptions to the law may apply when there is a:

Bona fide occupational qualification pertaining to public or occupational safety;
federal law or regulation requiring the information as part of candidate vetting; or
state or local law or regulation based on a bona fide occupational qualification.

It is recommended that employers review their applications and other hiring documents issued prior to an employment job offer being accepted and remove any references to age-related dates accordingly.

MINNESOTA

Earned Sick and Safe Time Clarifications – Effective January 1, 2024

Clarifications have recently been made to the January 1, 2024 ESST laws:

Employers must permit employees to use all paid leave, such as PTO, provided to them in accordance with the ESST law when the paid leave may otherwise be used for personal injury or illness.
Eligible employees now include new hires who are expected to work at least 80 hours in one year.
ESST must be paid at an employee’s “base rate,” which is now specifically defined.
Employers no longer need to list an employee’s ESST balance on an employee’s earning statement; however, employers are still required to provide this information in a reasonable format.
Employers can only require employees to provide reasonable documentation establishing their leave is covered by the ESST statute when the absence lasts for more than three consecutive scheduled workdays.
Employers are not required to permit employees to use ESST in increments smaller than 15 minutes.
Employees can use ESST leave for bereavement related reasons.

Employers are encouraged to review and update their existing Earned Sick and Safe Time policies and educate and train their managers regarding these updates.

Non-Competes and Non-Solicitation – Effective July 1, 2024

On July 1, 2024, all non-compete and non-solicitation provisions in contracts between a company and a customer will be banned in Minnesota. The law prohibits a company from preventing a customer from hiring or soliciting an employee of the company. Additionally, the law requires any company with existing agreements that violate the new law to provide notice to its employees of the new law and that its existing contract violates the new law.

There are exceptions for workers providing professional business consulting or computer software development.

Employers should update their handbook policies, new hire paperwork, and any other documents to remove any references to non-compete and/or non-solicitation policies.

Pregnancy Accommodation and Pregnancy & Parental Leave Changes – Effective August 1, 2024

Effective August 1, 2024, employers may not count any time an employee takes off work to attend prenatal care medical appointments against the employee’s 12-week leave entitlement under the pregnancy and parental leave law.

When an employee takes leave as a pregnancy accommodation or under the pregnancy and parental leave law, employers must maintain the employee’s coverage under any group insurance policy, group subscriber contract, or healthcare plan for the employee (and any dependents) as if the employee were still working. Employers can continue to require employees to pay their share of their premium of any such benefits.

Employers should review and update their pregnancy and parental leave policies and processes to ensure leave is recorded as appropriate, as well as ensure benefits are continued and premiums are paid.

Drug/Alcohol/Cannabis Testing Changes – Effective August 1, 2024

As of August 1, 2024, employers may use “oral fluid” (saliva) testing for drugs, alcohol or cannabis that does not require use of a testing laboratory. There are additional rules around detection levels, administering procedures, results communication, retesting requirements, and cost.

Gratuities – Effective August 1, 2024

Beginning August 1, 2024, any tips or gratuities received by credit card or other electronic payment must be credited to an employee during the same pay period in which it was received, and it must be distributed in full to the employee no later than the next scheduled pay period.

Human Rights Act Updates – Effective August 1, 2024

The MN Human Rights Act has further defined certain protections under the law. As of August 1, 2024, employees with episodic disabilities are covered under disability protections, and familial status now includes caring for adults in addition to minors.

Job Posting & Pay Transparency – Effective January 1, 2025

Beginning January 1, 2025, employers with 30+ employees at one or more worksites in MN must disclose in each job posting the salary range and a general description of all the benefits and other compensation, including but not limited to any health or retirement benefits that will be offered to the applicant hired for the position.

Salary range means the minimum and maximum annual salary or hourly range of compensation for that job opportunity at the time it posts the job. The salary range can be based on the employer’s good faith estimate but cannot include an open-ended range. If an employer does not plan to offer a salary range for the position posted, the posting must list a fixed pay rate.

Posting means any solicitation intended to recruit applicants for a specific position, including third-party recruitment, and in electronic or hard-copy form.

UTAH

Sexual Misconduct Nondisclosures are Unenforceable – Retroactive to January 1, 2023

As of January 1, 2023, employers cannot enforce a nondisclosure agreement or clause about sexual misconduct as a condition of employment. In addition, employers are prohibited from retaliating against an employee after they allege sexual harassment or sexual assault or if they refuse to agree to a nondisclosure agreement or clause, or sign an employment contract with either, as an employment condition.

Within three days after entering it, employees can revoke a settlement agreement with a nondisclosure clause about sexual misconduct. They can also discuss sexual misconduct that they have experienced in a legal case against their attacker.

An employer who attempts to enforce a confidentiality clause in violation of this is liable for all costs, including reasonable attorney fees, resulting from legal action to enforce the confidentiality clause, and is not entitled to monetary damages resulting from a breach of a confidentiality clause.

Military Protections – Signed and Effective March 18, 2024

On March 18, 2024, employers of all sizes are now required to provide military leave and other employment rights as follows:

Provide up to five years of leave to employees who are members of a reserve component of the U.S. Armed Forces when they are ordered to active duty (including for training), inactive duty training, or state active duty.
Provide employees who are called to service in the Utah National Guard or the Utah State Defense Force with the same rights and protections provided by federal law for employees that are called to federal military service
Restore these employees to their job at the completion of their service with the seniority, status, rate of pay, and rate of vacation accrual that they would be entitled to under the Uniformed Services Employment and Reemployment Rights Act (USERRA)

Religious Accommodations – Effective May 1, 2024

Effective May 1, 2024, religious accommodation requirements now prohibit employers from making employees engage in “religiously objectionable expression” that would burden or offend the “employee’s sincerely held religious beliefs,” unless the accommodation would cause an undue burden.

“Religiously objectionable expression” is defined as “expression, action or inaction that burdens or offends a sincerely held religious belief, including dress and grooming requirements, speech, scheduling, prayer, and abstention, including abstentions relating to healthcare.” Employers with fewer than 15 employees are not required to provide scheduling accommodations.

Cybersecurity Protections – Effective May 1, 2024

As of May 1, 2024, employers who own or license computerized data that includes personal information concerning a Utah resident must conduct a reasonable and prompt investigation when there is a breach of system security to determine the likelihood that personal information has been or will be misused for identity theft or fraud purposes, and notify the resident accordingly.

Interested in other current employment trends? Click the link to view the recent blog: Labor Law Updates for June 2024 or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.

Labor Law Updates for June 2024

June 19, 2024/in Blog, HP Featured/by Inspiring HR

INFINITI HR is happy to provide Monthly State Labor Law Updates as a service to our subscribers. These briefs provide a general description and are not meant to be all-inclusive of compliance requirements. This list is not inclusive of all legislative changes for employers across the U.S. Changes may have been addressed in previous updates, which can be accessed from our blog.

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.

MARYLAND

Maryland Non-Compete Restrictions – Effective June 1, 2024 and June 1, 2025

A bill restricting the use of non-compete agreements and voiding current agreements in the veterinary fields goes into effect on June 1, 2024. A similar restriction impacts the medical field on June 1, 2025. These restrictions are separate from the recent Federal ban on non-competes, which is under legal review.

Maryland Pay Range Disclosure – Effective October 1, 2024

Beginning October 1, 2024, all Maryland employers will be required to include the reasonable minimum to maximum salary range, benefits, and other expected compensation for internal and external job postings. The range must be set in “good faith” based on at least one of the following:

Pay scales for the position
Previously determined wage range for the position
Wage range of individuals in a comparable position at the time of posting
The budgeted amount for the position.

Employers are expected to keep copies of postings for at least three years after the position is filled to demonstrate compliance with this new regulation. Employers are already prohibited from asking about current or prior salary, and while there are no provisions for private lawsuits in this new law, there are civil penalties of up to $600 per applicant per occurrence.

Maryland Paid Family Leave Implementation – Delayed

The implementation dates for the Maryland Paid Family Leave program have been pushed back to July 2025 for the tax increase and July 2026 for the paid benefits. Employers can opt out of this program by offering a comparable private plan to employees and splitting the cost with employees.

There are administrative updates to the information that must be included on paychecks and in anti-retaliation provisions in the state.

NEW YORK

New York Paid Lactation Breaks – Effective June 19, 2024

Effective June 19, 2024, New York employers will be required to provide a 30-minute paid break for employees each time they need to express breast milk for a nursing child. Employers must allow employees to use other paid break or meal time for time in excess of 30-minutes.

Employers are encouraged to review and update their existing break and meal period policies to ensure they are in compliance with the updated regulations.

New York Paid Prenatal Leave – Effective January 1, 2025

Beginning January 1, 2025, all New York employers will be required to provide Paid Prenatal Leave (PPL) to eligible employees. PPL provides employees with up to 20 hours of paid leave to employees for healthcare services related to their pregnancy, including physical examinations and routine visits, medical procedures, monitoring, and testing.

Employees are provided 20 hours of PPL in a lump sum, which may be taken in one-hour increments. PPL is separate from all other paid and unpaid leaves. If an employee exhausts their PPL, they may request to use their accrued Paid Sick Leave (PSL).

New York COVID Paid Sick Leave – Expires July 31, 2025

On July 31, 2025, the mandated New York COVID Paid Sick Leave will expire, and employers will no longer be required to provide paid COVID leave to employees. As of July 31, 2025, employees will be permitted to use any accrued Paid Sick Leave for COVID purposes.

WASHINGTON, D.C.

Paid Family Leave Updated Poster – Effective Immediately

The DC paid family leave program has increased the maximum amounts provided, and a new poster is required. The poster should be made available to employees who indicate the need to take time off that may be covered by the paid family leave program.

Pay Transparency Provisions – Effective June 30, 2024

As of June 30, 2024, employers with one or more employees in Washington, DC have to complete a few steps, and are prohibited from taking some actions related to compensation and wage transparency:

Employers are required to disclose good faith and reasonable minimum and maximum wage rates in all internal and external job postings. Before the first interview, the employer must disclose “other benefits,” such as bonuses and healthcare benefits, that employees are likely to receive. Job applicants will be able to ask about this information if not provided. Finally, employers will be required to post a workplace notice about these rights, but that notice has not been released yet.
Employers are prohibited from asking about an applicant’s rate of pay from a prior employer, asking applicants about wage history by requiring it for an interview or offer, or asking about current or past wage history during the screening process. Employers are barred from prohibiting employee discussion about or disclosure of wages, and employees cannot be retaliated against for participating in wage discussions with other employees. Finally, employers are barred from discouraging employees from complaining or participating in an investigation relating to potential violations of this provision.

Interested in other current employment trends? Click the link to view the recent blog: Hiring for Skill and Culture in Today’s Job Market or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before.

Hiring for Skill and Culture in Today’s Job Market

June 13, 2024/in Blog/by Inspiring HR

The hiring world constantly evolves as new trends emerge to attract and retain talent. But how can small businesses discern which best practices to follow as they grow their team? Let’s explore the recent trend of skill-based hiring.

What’s Skill-Based Hiring?

Employers are moving away from traditional hiring criteria focused solely on background, experience, and knowledge. Instead, there’s a growing emphasis on finding candidates with the necessary skills who align with the company’s culture. It’s a shift from education to skills and from credentials to culture.

Why the Shift?

The job market has been tumultuous in recent years due to the pandemic, inflation, and other factors. As a result, there have been more job openings than available labor. We’re seeing individuals explore new industries rather than staying within a single sector, leading to a change in hiring priorities. This reflects a realization that a candidate’s skills, competency, and cultural fit or add can be just as important–or even more important–than their years of experience or credentials.

Some are calling this the start of a “skills-first” revolution. New and emerging technologies require employees to constantly upskill and reskill, making college degrees or past experiences less relevant than in the past. According to a report from Indeed that looked at educational requirements in U.S. job listings since January 2019, formal educational requirements have dropped significantly. This new skills-based mindset applies to current employees as well as new hires. Discover ways you can empower your team to grow their skills.

Positives of Hiring for Skill and Culture

Embracing this trend offers numerous benefits for employees and employers alike. Employees who click with the company’s mission and vision tend to be more engaged, productive, and loyal. When you hire based on outlook and potential, you can teach new hires and shape them to best fit the role. Consider each new hire a culture “addition” – someone who brings unique perspectives and enhances your organization’s dynamics.

Skills-first hiring also presents an opportunity for inclusivity and diversity within your workforce. This approach may open doors to candidates who you may not be able to reach through certain education or experience requirements.

Before you hire, are you certain that your stated culture is your company’s actual culture? Read more on how to avoid the common culture trap that creates a revolving door of talent.

Challenges to Consider

While hiring based on skill and culture has significant merits, there can be some obstacles. This hiring trend requires:

Thoughtful approach
Strong HR infrastructure
Clear awareness

One consideration is that these hires may need more guidance and support. Does your team have adequate resources and time for the necessary training and mentorship?

These new hires may take more time and financial investment upfront, which can be worth it but challenging if your team needs someone who can jump right into work. Be sure to communicate with your team, especially managers, about what they need in the role. Consider your company’s onboarding process and whether it accommodates this kind of hire and includes ways to set a new employee up for success.

Four Steps for Effective Hiring

As you navigate your hiring journey, remember to focus not just on resumes and credentials but on the individual behind them. Embrace diversity of thought and experience, and watch your company culture flourish. Try these four tips to give your hiring strategy a boost.

Develop a Strong Job Description: This sets the foundation of your hiring process. Prioritize a clear and comprehensive job description over posting something with too many buzzwords. Clearly outline the skills and attributes you seek in candidates.
Craft Tailored Job Postings: Align your postings with the job description, but take it a step further in the job listing. Talk about more than the job description but also the company and its culture; the type of person who would thrive in this role; and expectations for a new hire.
Formulate Interview Questions: Design interview questions that dive into skill sets and cultural alignment, allowing you to assess a candidate’s potential accurately. Think about questions that don’t focus on just their resume but can encompass who they are as a person and what they bring to the table.
Manage Expectations: Level-set expectations for the first days, weeks, and months so everyone is on the same page. Make sure managers know what skills the new hire is bringing to the table and where they might need more support. Encourage open dialogue about the process so everyone is aligned and supported. Monitor performance based on what was in the job description, instead of past expectations or employees.

Hiring for skill and culture represents a shift in recruitment strategies, but it can boost your team’s morale and productivity if you approach it the right way. Prioritize cultural addition and skills so your small business can build a team that thrives in today’s competitive landscape. While challenges exist, the investment in fostering a culture-aligned workforce yields long-term benefits for organizational success.

Interested in other current employment trends? Click the link to view the recent blog: What to Do When Compliance Disrupts Your Small Business Culture or check back for more on human resources, payroll, insurance, and benefits.

What to Do When Compliance Disrupts Your Small Business Culture

May 29, 2024/in Blog/by Inspiring HR

You’re reading an excerpt from a training hosted by our partner, Inspiring HR. See your dedicated HR Consultant for consultation and assistance with training needs.

COMPLIANCE: NECESSARY AND NOT NECESSARILY A CULTURE DISRUPTER
One of the consistent things we coach and consult our small business leaders on is addressing labor law compliance. Yet compliance often feels to our clients like a disruptor to the desired culture our clients want for their organizations. All the rules! All the technical mumbo-jumbo! All the new P’s and Q’s our leaders have to remember when working with and addressing employees.

It might feel easier to turn your head and ignore compliance and hope you don’t get caught in violation. That’s understandable.

However!

Our HR team teaches us that there’s a difference between what we’re required to do and what’s simply the right thing to do. That’s why in this article, we want to share how you can navigate compliance needs without disrupting your culture. In fact, your culture may thrive by applying a more proactive approach to adhering to labor laws.

COMPLIANCE CONCERNS: PLEASE GO AWAY!
In a recent survey conducted by Inspiring HR, they found that three labor law obligations had the most perceived challenges with regard to compliance and its potential negative impact on workplace culture:
1. Converting contractors to employees
2. Recategorizing employees as Non-Exempt (paid by the hour)
3. Employment eligibility: I9 within 3 days of the employee’s first day of employment

There are, of course, any number of labor law compliance challenges facing your company. A small example is posting current labor law posters in your company. Sure, the likelihood of someone from the Department of Labor popping by your company unannounced just to confirm you are displaying current labor law posters is pretty low!

But it’s a good example of having an intentional approach to compliance: what matters to your organization? What’s the risk of not complying? And, just as important: what’s the right thing to do? Particularly in gray-area judgement calls when it comes to the Fair Labor Standards Act (FLSA). From there, it comes down to what you want to do and how you’ll do it. HR is as much an art as it is a science. You have to make a judgment call on what works for your organization and the culture you seek to flourish.

REALITY CHECK FOR ASSESSING COMPLIANCE RISK
There are four essential risks to consider when assessing your risk for not being in compliance with labor laws:
1. What is the risk of an audit?
2. What is the risk of penalties? If so, how much?
3. What is the risk of legal costs?
4. What is the risk of a retaliatory ex-employee?

But I would challenge you to think bigger than this when making compliance decisions.

Many employees are learning more about rights and labor laws: from family members, colleagues, others in their profession, or doing their own research.

Ask yourself: do you want to open yourself up to breaking trust with employees? Do you want to field increasing complaints?

All this undermines your credibility: as decision-makers and as an organization. Those are negative dings on your culture.

THE CULTURE CLASH WITH COMPLIANCE
There are reasonable excuses to bristle with labor law compliance.

For example:
– Red tape and compliance complexity is a roadblock to addressing your business plan and goals.
– You don’t want compliance to mess with your culture: you have low employee turnover, so why mess with success?
– Compliance laws are difficult to explain or difficult to enforce.
– Employees may be unaware of their rights or simply don’t care.
– A “Why bother?” attitude: past complaints haven’t driven change and since nothing has changed, employees stopped speaking up.

Our partners have learned that many of these laws are complex to understand, let alone to follow! They also believe that nobody likes mandates, even those who are complying with them. We must find a better way to enact positive change than using mandates to drive change. (But that’s a topic for a different article!)

A CULTURE OF POSITIVE COMPLIANCE
What are some of the benefits of complying with labor laws? How would your organization benefit from compliance?

– Leading by example builds credibility
– Quality control and consistency and dependability
– Pride in your organizational ethics
– Employees can act and feel empowered
– Create a safe place for feelings where people are seen and heard
– Increased referrals of like-minded people and retention of great talent

SELLING COMPLIANCE CHANGE TO LEADERSHIP AND EMPLOYEES
Staying in compliance with labor laws doesn’t have to mean disrupting your workplace culture. In fact, done right, compliance can foster a stronger and more unified culture. That’s why it’s important to understand the intention of compliance laws.

For example, the Fair Labor Standards Act (FLSA) was first passed in 1938.
The original intent for the FLSA was to do away with the labor standards that were detrimental to the minimum standard of living necessary for “mandates, rules and regulations necessary for the health, efficiency, and general well-being of employees.”

Yes, the government seems at times to be out of date with regard to how organizations work and function today. Yet, the basic reason for the FLSA still rings true today. Most workplaces want to do right by employees to help support the “health, efficiency, and general well-being of employees.”

If your organization wants to be a great place to work and raise the standard of living for employees, then you may very well want to encourage more compliance for FLSA and compliance labor laws.

But how do you sell in change?

– Be a culture champion and weave in why complying to labor laws can foster a thriving culture.
– For those gray-area judgment calls: ask yourself, ask what is required to do versus what is the right thing to do?
– Make sure you’re credible: know the intent of the laws, communicate why you decided to comply and why compliance benefits the organization.
– Have a compliance plan! And, reward the right behaviors for following labor laws.
– Use the CAB approach to selling in change: What’s the Condition to address? What’s the Action we need to take? What is the Benefit to this change and desired outcome?
– Communicate well by knowing your audience and communicating to their needs and perspectives.

THREE STEPS TO COMMUNICATING COMPLIANCE CHANGE
When it comes to communicating compliance changes, remember these three steps.
1. Shift perceptions about the changes by using simple and positive messaging.
2. Keep people’s attention by connecting the policies to ethics, appealing to the greater good, and leading by example.
3. Empower employees by involving them in their change process.

And remember: there are no finish lines on the quest for improvement! Labor laws aren’t stagnant and your business isn’t stagnant. Keep advancing change in the workplace for the better.

REMEMBER: YOU’RE THE EXPLAINER IN CHIEF
Compliance and labor laws are complex! That’s why we encourage our small business leaders to consider themselves “Explainer in Chiefs.”

Here are a few helpful strategies to become a better Explainer in Chief:
– Gain trust by being relatable and credible.
– Reduce complexity and remove what is unnecessary in the explanation and communication.
– Seek varying perspectives to create a more engaged and connected workforce that embraces compliance.
– Encourage questions and feedback: it’s how your employees will feel heard and understand the key messages and path ahead.
– Be reasonable and respectful: compliance can be a thorny issue, so remove antagonism or standoffishness from the conversation.
– Be transparent, kind and consistent: in all your communications and engagement, including compliance!

FINAL THOUGHTS
We’re here to help you with HR: from compliance to culture. Contact your dedicated HR Consultant for assistance, today!

Interested in other current employment trends? Click the link to view the recent blog: Workplace Safety Tips For A Productive Environment or check back for more on human resources, payroll, insurance, and benefits.

Labor Law Updates for May 2024

May 9, 2024/in Blog/by Inspiring HR

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.

CALIFORNIA

California Workplace Violence Prevention Plan Resources – Effective July 1, 2024

As of July 1, 2024, most California employers will be required to have a Workplace Violence Prevention Plan in place. Employers who are exempt from this requirement are as follows:

Worksites of 10 or fewer employees and that are not accessible to the public.
Workers who are working from their location of choice that is not controlled by their employer, such as a home office.
Healthcare employers, which already have Workplace Violence Prevention Cal/OSHA requirements in place.

MASSACHUSETTS

Massachusetts Paid Family & Medical Leave Updates Notices and Poster – Effective January 1, 2024

The Massachusetts Family and Medical Leave (MA PFML) has released an updated workplace poster, which reflects the 2024 contributions and benefit increases. The poster must be displayed in a location where all employees can easily access it.

MA PFML now allows employees to “top off” their partial wage replacement with company provides paid leave. As a result, the MA PFML updated the required employee notice to include information regarding the usage of other available paid leaves, such as PTO, vacation, and/or sick leave. The required notice also includes detailed information regarding MA PFML usage, wage replacement, and contributions.

Employers must display the updated poster in the workplace where all employees have access to it. Employers must also provide the applicable required notice to each employee upon hire and upon request.

FEDERAL

Exempt Minimum Salary Threshold – Changes begin July 1, 2024

The U.S. Department of Labor released its final rule on overtime protections that will increase the salary thresholds required to exempt a salaried bona fide executive, high-level administrative, or professional employee from federal overtime pay requirements. There are already legal challenges to the increase; however, it is recommended that employers prepare for the increase to take effect while monitoring for updates.

Currently, there are two minimum salary levels:

$684 a week ($35,568 annually) for the Executive, High-Level Administrative, and Professional (EAP) exemption
$107,432 for the Highly Compensated Exemption (HCE).

Effective July 1, 2024, the EAP minimum will be $844 a week ($43,888 annually). The HCE minimum will be $132,964 annually.

Effective January 1, 2025, the EAP minimum will be $1,128 a week ($58,656 annually). The HCE minimum will be $151,164.

If the rule is not altered after litigation, the minimum salary levels would automatically update every three years based on earnings data, starting on July 1, 2027.

PLEASE NOTE: State and Local exempt salary levels may already be higher than the above Federal amounts.

The minimum salary is only 1 of 3 requirements for an employee to qualify for an EAP exemption:

be salaried, meaning that they are paid a fixed amount that is generally not subject to reduction (the “salary basis test“);
be paid at least a specific salary amount (the “salary level test”, described above); and
primarily perform executive, high-level administrative, or professional duties, (the “duties test“).

Nothing in the new Rule changes the salary basis test or the duties test.

Employers are encouraged to audit exempt employees’ positions to ensure they are meeting the duties test. For those that qualify earning less than $58,656, either their salaries will need to be increased to continue to qualify for the exempt status, or affected employees will need to be changed to a non-exempt status, begin recording their hours of work, and be eligible for overtime when working over 40 hours in a workweek.

Non-Compete Ban – Effective September, 2024

The Federal Trade Commission (FTC) has adopted a comprehensive ban on non-competes effective in September 2024. Under the new ban, nearly all new non-compete agreements will be banned, and many existing non-compete clauses or agreements will be void.

The new rule prohibits employers from asking employees to sign new non-compete agreements, and will require employers to notify current and former employees who have signed non-competes that they are no longer bound by such agreements, except for “senior executives.” The FTC defines the term “senior executive” as workers earning more than $151,164 annually who are in a “policy-making position.”

Under the new rule, employers can continue to ask employees to sign confidentiality agreements protecting company trade secrets, proprietary information, and client lists.

Unless successfully legally challenged, this rule is anticipated to go into effect on September 4, 2024.

Interested in other current employment trends? Click the link to view the recent blog: Workplace Discrimination, Harassment, and Bullying Explained or check back for more on human resources, payroll, insurance, and benefits.

Workplace Discrimination, Harassment, and Bullying Explained

May 8, 2024/in Blog/by Inspiring HR

For a small business, company culture matters. Even more importantly, companies have to foster a positive and respectful work environment to protect both employees and the business itself.

To successfully navigate the complexities of workplace behavior, it’s important to understand that discrimination, harassment, and bullying are NOT the same things. Continue reading to learn more, and download our quick-read comparison chart to keep on-hand for teaching opportunities.

Discrimination, Harassment, Bullying: What’s the Difference?

Discrimination, harassment, and bullying are often used interchangeably, but they have distinct differences. Discrimination and harassment have legal implications under anti-discrimination laws like Title VII of the Civil Rights Act of 1964. Bullying, on the other hand, may not necessarily violate these laws but still warrants prompt intervention to maintain the positive workplace culture you’ve worked hard to create.

Discrimination

Discrimination is when someone in a protected class is targeted and treated unfairly. A protected class is a group of people sharing a common characteristic who are legally protected from being discriminated against because of that trait. Protected class characteristics include*:

Race
Color
Religion
National origin
Disability
Veteran status
Genetic information
Sex, including:
- Pregnancy, childbirth, and related medical conditions
- Sexual orientation
- Gender identity
Age (40 and older)

*federal protections only, ask your HR consultant for state-specific protections.

Discrimination can manifest in various forms, including unequal pay, denial of promotions, hiring bias, and other unfavorable treatment around layoffs, benefits, training, or opportunities.

It’s also illegal to discriminate in response to an employee filing a charge, reasonably opposing discrimination, or participating in a discrimination lawsuit, investigation, or proceeding. Discrimination can also include any kind of negative behavior, interference, or threats when an employee exercising their rights regarding disability discrimination or pregnancy accommodation

The U.S. Equal Employment Opportunity Commission (EEOC) enforces Federal laws that protect employees from discrimination including:

Current employees
Former employees
Temporary employees
Managers
Job applicants

Here are just some examples of what discrimination in the workplace looks like.

A high-performing employee constantly receives strong reviews from leadership but isn’t promoted as quickly as her male counterparts. When she asks her boss about why this is, he says she is too needy and whiny.
A candidate is applying for a job and mentions in passing that he and his husband plan to adopt a baby. After mentioning his husband, the offer was rescinded citing “unforeseen circumstances.”
A new dress code is enforced that prohibits any kind of head coverings and scarves of any kind with no exceptions, despite one team member who wears religious head coverings.

Harassment

Harassment is a form of discrimination that includes unwelcome, severe, and pervasive behavior targeting protected characteristics, and creating a hostile or intimidating work environment. Harassment can be verbal, physical, or visual—for example, derogatory remarks, slurs, posting offensive symbols directed at specific groups, offensive jokes, or even unwanted sexual advances. Harassment is considered illegal when it creates a hostile work environment due to its frequency or could result in an adverse decision related to employment, such as being fired or demoted.

Harassment can include unwelcome behavior such as:

Repeatedly asking a coworker on a date despite being told no
Making inappropriate jokes about a colleague’s body and using lewd, suggestive language
Unfairly criticizing someone’s lack of skills, citing their age as a problem, and leaving them out of projects or events
Intentional misgendering or referring to a non-binary coworker as “it” instead of using they/them pronouns

Bullying

Bullying is not just for kids at school! Unfortunately, it often happens to adults in workplaces too. Bullying is when someone uses aggressive acts or comments meant to intimidate, humiliate, or embarrass someone. It’s more than a mean moment—bullying is defined as repetitive with ongoing actions or a pattern of behavior.

While bullying isn’t illegal, it’s still incredibly detrimental to your company’s culture. It needs to be addressed early to prevent driving away your talented employees! Consider what steps you can take to create a positive culture committed to kindness and discourage bullying of any kind. Beyond the law, do what’s right for your team and create a healthy environment for everyone to succeed.

Addressing Workplace Behavior

So how can you help create a workplace free from discrimination, harassment, and bullying? This is where HR best practices come into play. It’s essential to establish clear policies and procedures and make sure your company culture is healthy and positive. Inspiring HR consultants recommend that small businesses consider the following proactive steps:

Educate Employees: Train employees on recognizing, preventing, and reporting discrimination, harassment, and bullying. Make sure they understand the difference between the three and know company policies and procedures, including how to report claims of such behavior.
Promote Inclusivity: Foster a culture of respect and inclusivity where all employees feel valued and supported regardless of their background or characteristics. A great way to do this is to listen to your team with an Employee Culture and Engagement Survey. Inspiring HR helps you ask the right questions for your unique team. Reach out to get started with an experienced HR consultant.
Respond Promptly: Take all complaints of discrimination, harassment, or bullying seriously. Investigate promptly and impartially and create a sense of transparency and trust with the team. Encourage open communication and provide support to victims.

Eligible INFINITI HR clients are provided a Hotline service to offer employees a safe space to report incidents of discrimination, sexual harassment, or hostile work environments. By giving your company an avenue to report to a third-party investigation team rather than management, you are providing your employees with the invaluable resource of a swift, thorough, and impartial investigation.

Enforce Policies Consistently: Consistently enforce workplace policies and take appropriate disciplinary action against offenders. This sends a clear message that such actions will not be tolerated, no matter who commits the offense. It doesn’t matter how talented these toxic employees are, it’s harmful to your culture and other employees to let poor behavior go unchecked.

Unsure about how to handle workplace harassment, need guidance on creating effective policies, or looking for help having tough conversations or making hard decisions? Your dedicated HR consultant can help by offering tailored solutions for small businesses to address issues and create a workplace where everyone feels respected, valued, and empowered to succeed. Infiniti HR also offers hotline assistance for active concerns of harassment and discrimination. See your HR consultant for more details.

For more information on harassment in the workplace, you can visit the EEOC website. They provide valuable resources and guidance on identifying, preventing, and addressing workplace harassment.

Interested in other current employment trends? Click the link to view the recent blog: From Chaos to Clarity: HR Solutions to Workplace Madness or check back for more on human resources, payroll, insurance, and benefits.

From Chaos to Clarity: HR Solutions to Workplace Madness

April 16, 2024/in Blog/by Inspiring HR

There’s nothing more worrisome than conflict in the workplace! In the wild world of small business HR, every day brings a new adventure in terms of workplace dynamics. Supportive HR management can help find preventative policies, peaceful resolutions, and positive solutions.

Let’s explore some real-life examples of HR disasters and stories of workplace madness. We’ll offer insights into what went wrong and share what HR strategies could’ve made it all go differently. It takes a little bit of collaboration, emotional intelligence, decision-making, and effective communication – and perhaps some HR expertise – to make it happen.

Fake Identity

Imagine a scenario where an employee receives a text message from his manager looking for help. Or so he thought! The manager’s message said she was stuck in a meeting and needed him to purchase five $200 digital gift cards for a client. The message said she would pay him back within 24 hours. The employee tried to be helpful and assist his boss. Sadly, he used his personal funds to purchase and send the gift cards as instructed.

What Went Wrong: The employee did not stop to check with his manager to confirm the messages were from her. With no policy in place for purchase requests like this, the employee thought he was helping his boss and following her instructions.

What Could’ve Gone Differently: Instead of spiraling into chaos, a proactive approach is needed! Cyber security training and a comprehensive handbook could have empowered employees to identify and thwart such threats, safeguarding both their finances and the company’s reputation. Proper policies for purchase requests also make it easy to flag scams.

Repulsive Revenge

One employee’s impulsive act of anger left everyone suffering. After hours, this employee dumped a bottle of stinky blue cheese dressing all over a coworker’s desk space. The next morning was an upsetting discovery for everyone in the workplace. Not only was the evidence visible (and smellable) to everyone but the angry employee recorded it all on video to show off her revenge.

What Went Wrong: Clearly, there was not enough of a focus on employee culture that could have revealed underlying tensions. Without interventions to prevent such destructive behavior, angry employees create their own (often messy) outlets to express their frustration.

What Could’ve Gone Differently: Get a pulse on your employee culture BEFORE a workplace madness situation arises. A culture engagement survey gives insight into your workplace culture and how employees are feeling. One-on-one meetings with employees offer team members to share how they’re doing, vocalize concerns, and brainstorm solutions.

The Demotion Dilemma:

A successful employee received a promotion to a new role as manager. But after a few weeks, it was clear he was struggling with some parts of the role. Enough so that leadership was considering a demotion as the entire team was growing increasingly frustrated.

What Went Wrong: While the employee was fantastic in his previous role, he lacked the right skills required for the work that came with his promotion. Without helping the team level up their skills, an organization can’t expect top performers to move up and take on more responsibility successfully.

What Could’ve Gone Differently: Instead of resorting to punitive measures, reframing the situation and offering a tailored role that aligns with the employee’s strengths could have preserved morale and productivity, demonstrating a commitment to employee growth and retention. “Your dedicated HR Consultant can assist you in finding positive solutions to challenges.”

So how can HR professionals avoid these workplace failures and help your team reach their full potential?

Customized Solutions: Recognize that no two employees or situations are identical. A tailored approach is needed to address workplace challenges effectively.
Proactive Collaboration: Foster a culture of open communication and collaboration to prevent conflicts and mitigate potential risks.
Emotional Intelligence: Approach difficult conversations with empathy and composure, focusing on constructive solutions.
Continuous Improvement: Embrace a mindset of ongoing learning and development. Take feedback to heart for positive change and enhanced employee performance.
Change the Narrative: Shift from reactive responses to proactive strategies, reframing challenges as opportunities for growth and improvement.

These are merely a few of many, many stories of workplace madness! Every person in an HR department has stories to share. These can serve as powerful reminders of the pivotal role HR consultation plays in forming supportive infrastructure and shaping an organization’s culture. Many HR best practices, especially in small businesses, come from experience. Prioritize collaboration, emotional intelligence, and effective communication for smooth sailing. Your business can navigate challenges with resilience and grace to transform crises into catalysts for positive change and long-term success.

Interested in other current employment trends? Click the link to view the recent blog: Winning Against Workplace Madness or check back for more on human resources, payroll, insurance, and benefits.

Winning Against Workplace Madness

March 27, 2024/in Blog/by Inspiring HR

Are you tired of the workplace madness fouling up your small business game plan? For small business owners, fostering a positive work environment is key to winning big! Learn five winning moves you can add to your HR playbook to minimize the madness and maximize success.

Five Steps to a Slam Dunk Small Business 🏀

Through collaboration with your dedicated HR consultant, you can navigate the challenges of workplace madness together and cultivate a culture of collaboration, accountability, and productivity.

Hire the Right Person

It all starts with finding the perfect fit for your team. Every team member matters! Remember the EOS (Entrepreneurial Operating System) principle of “right people in the right seats.” It all starts with accurate job descriptions that outline expectations and responsibilities. Utilize strategic interviewing techniques to assess candidates’ skills, experiences, and cultural fit. When you prioritize alignment from the start, the team’s success becomes an easy layup. Recruiting today may look a little different but you can still hire your best-fit candidate.

Set Clear Expectations

Shoot for transparency to avoid misunderstandings, promote productivity, and foster a positive work environment. Communicate rules and regulations upfront. Clearly define expectations regarding work arrangements (in-person, remote, or hybrid), behavior, and attire. Continuously updating your employee handbook and holding regular one-on-one meetings to ensure the whole team is aware of the latest policies and procedures. When everyone knows the game plan, it’s easier to score big wins together.

Embrace Accountability

Accountability isn’t just about holding others responsible; it starts with leading by example. Fulfill your own commitments and hold yourself accountable for outcomes. It’s a two-way street so you want expectations to be clearly defined and consistently enforced. Establish transparent accountability measures for employees, emphasizing a culture of ownership and responsibility. Treat your employees like the competent adults they are, but ensure that expectations are met and actions have consequences.

Evaluate Your Culture

An organization’s culture shapes the atmosphere and attitudes within the workplace. Take a step back to assess the bigger picture – what values and behaviors define your company culture? Are your values reflected in daily operations? Values can anchor your playbook and bring the team together, even if there are disagreements or personality conflicts. Regular engagement surveys can offer insights into employees’ perceptions and identify areas for improvement. A positive workplace culture isn’t just a buzzword or popular trend – it’s strategically important for your small business’ success.

Seek Expert Guidance

When workplace madness threatens to disrupt your team’s rhythm, don’t hesitate to call in reinforcements. Your HR Consultant can provide unbiased advice and guidance. Avoid knee-jerk reactions by seeking logical advice and exploring proactive solutions. Adopt a proactive approach to prevent issues from escalating, defuse tensions, and get your team’s eyes on the ball.

With all this in mind, it’s worth a quick note from the sidelines. Workplace environments undergo change every day. Growing pains can be normal or the occasional “airball.” But when chaos starts to brew, make it a point to monitor and pivot. Maybe this is an HR opportunity to update expectations with team, set some new goals, or retire the overused moves from your playbook.

Leave the workplace madness behind and score big by implementing these steps! With strategic human resource management and the right game plan, your small business can thrive and turn madness into magic.

Interested in other current employment trends? Click the link to view the recent blog: Your Listening Era: Employee Engagement Surveys or check back for more on human resources, payroll, insurance, and benefits.

Your Listening Era: Employee Engagement Surveys

March 11, 2024/in Blog/by Inspiring HR

Have you heard rumblings your employees may be feeling frustrated? You may hear things through the grapevine and notice less engaged employees, or even more turnover than usual. We know navigating these murky waters can be unsettling (and downright confusing!), but our most significant advice is to take your employee’s feelings into consideration and to ask, not assume.

You trust your employees to get their jobs done, so trust them to provide you with their perspective on how things are going. Before you initiate this candid conversation, here are a few things to keep in mind:

Exit stage left: your assumption era.
Enter stage right: your listening era.
On deck: your communication era.

You’ve heard the age-old advice to listen to understand, not to respond. We’re here to help you do that and move into your new era.

So, how does it work and what are employee engagement surveys? What’s the difference between employee satisfaction and employee engagement surveys?

From strategy to execution, we are your right-hand partner with many HR services that will provide you with key findings and recommendations for growth.

HERE ARE THE TWO MOST IMPORTANT ELEMENTS WE LOOK AT DURING A SURVEY PROJECT:

Ask questions you want honest answers to. Really. If you’re unable to make changes or your company isn’t in the mindset to focus on a particular topic, then now is not the time to seek employee perspectives about those things. And that’s okay.
After the survey is completed, communicate. Let your staff know what you heard and how you’ll address their concerns and help them grow.

Now that we’ve laid the groundwork, here’s a question to get you thinking even harder about your employee engagement survey strategy. If an A+ employee was walking out the door, what would you ask them?

THIS IS THE STARTING POINT FOR YOUR EMPLOYEE ENGAGEMENT SURVEY.

Here are six simple prompts that can be answered via a rating system, which gives you real data to measure. Open-ended questions are always helpful for context, so ensure a good mix of rating and open-ended questions. Here are five prompts and one open-ended question to help you get started:

I would recommend this company as a great place to work.
I know what to do to be successful in my role.
I am given timely, specific, and actionable feedback.
I am comfortable being my authentic self here.
The leaders here keep me informed about what’s going on.
What two changes would you make if you could wave a magic wand?

What is the goal? A more engaged culture and employees who feel seen, heard, and valued. When you create this culture, your employees will tell you exactly what they need to achieve your desired results

The intent is to use this as an opportunity for regular cadence of future employee experience surveys, tracking your progress on culture goals.

Building the culture you want will take time. This requires all involved parties to effectively collaborate and advance this work together with mutual understanding and commitment to growth and development, knowing that this will require tough conversations and endurance.

Interested in other current employment trends? Click the link to view the recent blog: Building a Strong HR Foundation: A Must-Watch Interview or check back for more on human resources, payroll, insurance, and benefits.

February 2024 Legal Updates

February 29, 2024/in Blog/by Sarah Frye

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.

Some of the notable recent and upcoming state changes in this issue are as follows:

ILLINOIS

Cook County, IL Paid Leave for All Workers – Effective December 31, 2023

Effective December 31, 2023, any employer with employees working in Cook County will be required to provide their employees with paid leave.

Employers must provide employees with 1 hour of paid leave for every 40 hours worked.

The paid leave will be able to be used for any purpose and employees will not be required to provide a reason for leave or documentation of the need for leave;
However, employees may be required to provide seven days’ notice if the need for leave is foreseeable.
Employers will be required to post a notice in physical or electronic format summarizing the requirements of the ordinance or face stiff monetary penalties. Enforcement of the ordinance will not begin until February 2024.

Illinois Transit Commuter Pre-Tax Benefits & Paid Leave Reminder – Effective January 1, 2024

On 1/1/2024, employers with 50 or more employees in Illinois must allow employees who commute to work on public transportation to set aside pre-tax dollars to cover commuting costs. This benefit must be offered to employees working 35 hours per week or more, starting on the employee’s first full pay period after 120 days of employment. This ordinance covers commuters several different counties/townships.

Illinois – State Paid Leave

Effective January 2024, all Illinois employers will be required to provide their employees with paid leave.

The paid leave will be able to be used for any purpose and employees will not be required to provide a reason for leave or documentation of the need for leave;
However, employees may be required to provide seven days’ notice if the need for leave is foreseeable.
Employers will be required to post a notice in physical or electronic format summarizing the requirements of the Act or face stiff monetary penalties. The Illinois Department of Labor (IDOL) is developing the notice, which I will forward once it is released. We expect this posting to be ready close to the end of 2023.

CALIFORNIA

CONNECTICUT

COLORADO

MINNESOTA

UTAH

MARYLAND

NEW YORK

WASHINGTON, D.C.

What’s Skill-Based Hiring?

Why the Shift?

Positives of Hiring for Skill and Culture

Challenges to Consider

Four Steps for Effective Hiring

Discrimination, Harassment, Bullying: What’s the Difference?

Discrimination

Harassment

Bullying

Addressing Workplace Behavior

Fake Identity

Repulsive Revenge

The Demotion Dilemma:

Five Steps to a Slam Dunk Small Business 🏀

Hire the Right Person

Set Clear Expectations

Embrace Accountability

Evaluate Your Culture

Seek Expert Guidance

HERE ARE THE TWO MOST IMPORTANT ELEMENTS WE LOOK AT DURING A SURVEY PROJECT:

THIS IS THE STARTING POINT FOR YOUR EMPLOYEE ENGAGEMENT SURVEY.

ILLINOIS

Cook County, IL Paid Leave for All Workers – Effective December 31, 2023

Illinois Transit Commuter Pre-Tax Benefits & Paid Leave Reminder – Effective January 1, 2024

Illinois – State Paid Leave

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