HR Update: April 17th, 2023

Deadline Extended Until August 31, 2023 for Businesses to Comply with Connecticut’s Mandatory Retirement Program

Back in 2016, Connecticut enacted legislation that established the Connecticut Retirement Security Program, a state-run Individual Retirement Arrangement (IRA) program administered by the Office of the State Comptroller. After a slow start, this mandatory program officially launched in March 2022. The program requires that private-sector employers with five or more employees in Connecticut — at least five of whom have been paid more than $5,000 in the previous calendar year — join MyCTSavings if they do not already offer a qualified, employer-sponsored retirement plan for their employees. While employer registration opened April 1, 2022, compliance with the program was phased in based on the size of the business, starting with employers having more than 100 employees. The deadline for compliance for those under the last phase – small businesses with between 5 and 25 employees – has been extended until August 31, 2023. Learn More

Third Circuit Finds Deductions from Accrued PTO Do Not Violate Salary Basis Requirement for Exempt Employees

The Third Circuit recently highlighted the flexibility afforded to employers when providing fringe benefits to salaried exempt employees. In Higgins v. Bayada Home Health Care Inc., No. 21-3286, 2023 WL 2518345 (3d Cir. Mar. 15, 2023), the Third Circuit held that employer-provided paid time off (PTO) is a fringe benefit that is not part of an exempt employee’s “salary” for purposes of assessing compliance with the “salary basis” requirement for certain “white collar” exemptions under the Fair Labor Standards Act (FLSA). As a result, an employer may deduct from an exempt employee’s PTO bank based on the quality or quantity of the employee’s work without compromising the employee’s exempt status under the FLSA. Learn More

Changes to Florida’s Name, Image, and Likeness Rules

Name, Image and Likeness (NIL) opportunities have been a hot topic in college sports since the summer of 2021. In July 2021, the NCAA released an Interim NIL Policy. Before then, individual states had passed laws allowing college athletes to enter NIL deals. Florida was one of the earliest states to enact an NIL law. Passed in 2020, it went into effect in July 2021. Recent amendments to Florida’s NIL law will have a substantial impact upon businesses looking to enter NIL deals with athletes at Florida schools and upon Florida schools with intercollegiate athletic programs. Learn More

Pay Transparency Goes Primetime: Sweeping New Federal Legislation Proposed in Congress

New proposed legislation in the U.S. House of Representatives would require all employers nationwide – regardless of size or number of employees – to include the wage range in all job postings, provide wage ranges to applicants, and provide wage ranges to existing employees for their positions. Representative Eleanor Holmes Norton (D-DC) introduced H.R.1599, the “Salary Transparency Act,” on March 14, 2023. The Salary Transparency Act has been referred to the House Committee on Education and the Workforce. Learn More

Paid Sick and Safe Leave Blooms in Bloomington, MN with Release of Initial Rules

On March 31, 2023, Bloomington, Minnesota published “initial” rules implementing its Earned Sick and Safe Leave (ESSL) Ordinance, which will take effect on July 1, 2023. The ordinance will generally require employers to provide certain employees working in Bloomington with up to 48 hours of ESSL per year. The Bloomington ordinance is a near replica of the Minneapolis Sick and Safe Time Ordinance, which has been in effect since July 1, 2017. However, the rules emphasize some of the particular nuances of the Bloomington ordinance and how we anticipate it will be enforced by the City. Learn More

New York City Adopts Final Regulations on Use of AI in Hiring and Promotion, Extends Enforcement Date to July 5, 2023

After several rounds of public comment and revision, on April 5, 2023 New York City published final regulations implementing its first-in-the-nation ordinance that regulates the use of AI-driven hiring tools (Local Law 144 of 2021, or “NYC 144”). Initial regulations relating solely to the penalty schedule were issued a year ago, on April 27, 2022. New York City previously deferred enforcement of the law pending publication of final regulations. Now that the final rules have been published, enforcement of the law will begin on July 5, 2023. This gives employers less than three months to determine whether they are utilizing any AI-driven hiring or screening tools and, if so, take prescribed steps to ensure compliance. Learn More

Update on California’s Efforts to Regulate the Use of AI in Employment Decision-Making

California continues to take steps to regulate the burgeoning use of artificial intelligence, machine learning, and other data-driven statistical processes in making consequential decisions, including those related to employment. The California Civil Rights Council recently issued updated proposed regulations governing automated-decision systems. The agency had issued a working draft in March 2022. In addition to these regulatory efforts, California lawmakers have introduced two bills designed to further regulate AI in employment. Learn More