Over the past 12 months, many new and/or expanded employment laws and regulations have been adopted, affecting the way employers hire, pay, treat and provide benefits to their employees. Here's a look at three trends that are likely to continue in 2024.
#1: New and/or expanded leave requirements
Leave of absence requirements continue to expand dramatically. Here are some examples.
Leave employees can use for any reason
A few states and a couple of local jurisdictions have enacted laws that entitle employees to paid time off for any reason. We have listed these states and local jurisdictions in the table below.
State |
Which private employers must provide paid leave? |
|
Illinois (effective January 1, 2024) |
All employers must provide paid leave that employees can use for any purpose, unless the employer is covered by a municipal or county ordinance that is in effect on January 1, 2024 that requires employers to give any form of paid leave to their employees, including paid sick leave. |
|
Cook County, IL (effective December 31, 2023) |
All employers with at least one covered employee working in Cook County must provide paid leave that employees can use for any reason. |
|
Chicago, IL (effective July 1, 2024) |
All employers with at least one covered employee working in Chicago must provide both paid sick leave and paid leave that employees can use for any reason. |
|
Maine |
Employers with 10 or more employees must provide paid leave that employees can use for any purpose. |
|
Nevada |
Employers with 50 or more employees must provide paid leave that employees can use for any purpose. |
Paid family leave
A growing number of jurisdictions provide partial wage replacement when employees take leave for certain family or medical reasons. These Paid Family Leave (PFL) programs are typically funded through payroll deductions. Many of the laws establishing such programs also provide job protection for employees and impose other requirements on employers.
Currently, 15 states, one district and one local jurisdiction have enacted/created a PFL program.
|
Covered employers |
Jurisdictions with PFL program (as of January 1, 2024) |
|
All employers |
|
|
10 or more employees |
|
|
20 or more employees |
|
|
Voluntary |
*Contribution start date
With limited exceptions, covered employers must participate in the state/local PFL program, but employers may be allowed to provide coverage through a private insurance plan instead, as long as it meets all of the jurisdiction’s requirements. Check your state and local law for details.
Other states and local jurisdictions are likely to consider such programs this year.
Paid sick leave
Currently, 15 states, the District of Columbia, and about 20 local jurisdictions require employers to provide paid sick leave to employees.
In 2023, states and local jurisdictions continued to add new paid sick leave requirements or amend existing ones.
For example, Minnesota enacted legislation requiring employers to provide paid sick leave to employees beginning January 1, 2024. In response, the cities of Bloomington and Saint Paul in Minnesota amended their existing paid sick leave ordinances to more closely align with the state law.
In California, lawmakers enacted legislation that expanded the amount of paid sick leave to which employees are entitled and made other changes. Beginning January 1, 2024, California employees have the right to use to use up to 40 hours or 5 days (whichever is more) of paid sick leave per year under state law.
Bereavement leave
Some states require certain employers to provide bereavement leave. The table below lists some examples.
|
State |
Bereavement leave requirements |
|
California |
Effective January 1, 2023, California requires employers with five or more employees to offer up to five days of bereavement leave for the death of a family member. Unless the employer has an existing paid bereavement leave policy, the leave provided under law may be unpaid, but employees are entitled to use accrued sick leave or other paid time off for this purpose. California has also enacted legislation that requires employers with five or more employees to provide time off to employees who experience a covered reproductive loss event, such as failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction, provided the employee would have been a parent if the covered event were successful. The requirement takes effect January 1, 2024 and is separate and distinct from the state’s bereavement leave and other leave requirements. |
|
Illinois |
The state requires employers with 50 or more employees to provide up to two weeks of unpaid bereavement leave for employees who experience a death in the family. Notably, this law was expanded in 2023 to cover more family members and more situations. Covered employers should ensure that their policies and practices align with the amended law. The law was also amended for 2024 to establish that an employee may be eligible for a longer leave entitlement if they experience the loss of a child by suicide or homicide. |
|
Maryland |
Under the Maryland Flexible Leave Act, employers that have 15 or more employees and provide paid leave must allow an employee to use the leave after the death of a child, spouse or parent. Employers that don’t provide paid leave aren’t covered by the requirement. |
|
Oregon |
Under the Oregon Family Leave Act, employers that have 25 or more employees must provide at least two weeks of unpaid bereavement leave for the death of a family member. While the state has a paid family leave program, bereavement leave isn’t covered by it. |
|
Washington |
Under the state of Washington’s paid family leave law, almost all employees are entitled to up to seven days of wage replacement benefits after the death of a child, if the employee would have qualified for medical leave for the birth of the child or family leave to bond with the child after birth, adoption or foster placement. Employees may also be entitled to job protection, if the employer has 50 or more employees. |
If you are covered by a state bereavement leave requirement, make sure your policy and practices align with state law. Absent a state requirement, employers generally have broad discretion to decide whether, and to what extent, to offer bereavement leave.
Over the next year, other states and local jurisdictions could consider similar changes.
#2 Increased pay requirements
Minimum wage
On January 1, 2024, more than 20 states and nearly 40 local jurisdictions increased their minimum wages. Read our recent Tip of the Week to see more details on those increases.
And, some states and local jurisdictions scheduled their changes for another point during the year. The table below lists some examples of locations with changes coming during 2024.
Date |
State, district and local jurisdictions |
|
March 1 |
In New Mexico: Santa Fe |
|
July 1 |
District of Columbia |
|
Sept. 30 |
Florida |
Overtime exemption
The federal Fair Labor Standards Act allows for exemptions from the federal overtime (and minimum wage) requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). To be considered "exempt," these employees must generally satisfy three tests:
- Salary-level test: Employers must pay employees a salary of at least $684 per week. The FLSA's minimum salary requirement is set to remain the same to start 2024, but the United States Department of Labor (DOL) has published a proposed rule that would increase the minimum salary requirement sometime in 2024 (see below).
- Salary-basis test: With very limited exceptions, the employer must pay employees their full salary in any week they perform work, regardless of the quality or quantity of the work.
- Duties test: The employee's primary duties must meet certain criteria.
On August 30, 2023, the DOL released the proposed rule that, if finalized, would increase the minimum salary required to $1,059 per week in order for administrative, professional and executive employees to be considered exempt from the FLSA overtime pay requirements.
The proposed rule was open for public comment until November 7, 2023. The DOL will now review the comments before issuing a final rule, which is expected sometime in 2024 (the DOL has indicated a tentative timeframe of April 2024). The final rule is likely to be challenged in court. We will be monitoring the status of the proposed rule closely and updating our FLSA and Overtime Exemption Rule Guide as developments unfold.
Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Generally, if state law is more protective (i.e., requires a higher salary amount or has duties tests that are more difficult to satisfy), then state law should be followed. Six states have minimum salary requirements for overtime exemption that both exceed the current federal level and increased on January 1, 2024. The changes are summarized in the table below.
|
State |
Minimum salary requirement for overtime exemption in 2024 |
|
Alaska |
$938.40 per week |
|
California |
$1,280 per week |
|
Colorado |
$1,057.69 per week |
|
Maine |
$816.35 per week |
|
New York |
$1,200 per week in New York City and Nassau, Suffolk, and Westchester Counties. $1,124.20 per week in upstate New York (that is, areas other than New York City and Nassau, Suffolk, and Westchester Counties). |
|
Washington |
$1,302.40 per week |
|
Note: The above salary thresholds apply to only certain exemptions, and the state’s duties tests must also be satisfied to be classified as exempt from overtime. See your state rules for details. In Colorado and certain other states, an exempt employee’s salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Employers may want to consult legal counsel about how this rule may impact them. |
#3: More pay transparency rules
Many states and local jurisdictions have enacted legislation related to pay transparency. For example, several states and local jurisdictions now require private sector employers to disclose the pay range for a position to an applicant or employee. Here are some examples of laws that require such disclosures.
|
State or local jurisdiction |
Covered employers |
Pay disclosure requirements |
|
California |
All |
|
|
Colorado |
All |
In each posting for each job opening, an employer must disclose:
Note: The state recently issued new guidance on the requirements. *Through July 1, 2029, employers physically located outside of Colorado with fewer than 15 employees working remotely in Colorado are only required to provide notice of remote job opportunities. |
|
Connecticut |
All |
Employers must:
|
|
Hawaii |
50 or more employees |
Effective January 1, 2024, employers must disclose in job listings an hourly rate or salary range that reasonably reflects the actual expected compensation for the position. |
|
Illinois |
15 or more employees |
Effective January 1, 2025, employers must include in any job posting the pay scale and benefits for the position. The requirement for job postings only applies to positions that:
|
|
Maryland |
All |
Upon request, an employer must provide an applicant with the wage range for the job for which the applicant applied. |
|
Nevada |
All |
Employers must:
|
|
Jersey City, New Jersey |
Employers with five or more employees |
Employers that use any print or digital media circulating within the city to provide notice of employment opportunities must disclose a minimum and maximum salary and/or hourly wage, including benefits, in the posting or advertisement. |
|
New York |
Employers with four or more employees |
When advertising a job, promotion, or transfer opportunity, employers must state the minimum and maximum annual salary or hourly wage for the position. |
|
New York City, New York |
||
|
Ithaca, New York |
||
|
Albany County, New York |
|
|
|
Cincinnati, Ohio |
Employers with 15 or more employees |
Upon request, employers must provide the pay scale for a position to an applicant who has received a conditional offer of employment. |
|
Toledo, Ohio |
||
|
Rhode Island |
All |
Employers must:
|
|
Washington |
Employers with 15 or more employees |
In each posting for each job opening, employers must disclose the wage scale or salary range and a general description of all benefits and other compensation. |
Expect to see more states and local jurisdictions consider joining the trend in the coming months.
Conclusion
As 2024 progresses, watch for developments closely and review your workplace forms, policies, practices and training to help ensure compliance when changes occur.