A new year means new Human Resources regulatory changes in employment law. Below is a sample of what you need to know (varies from state to state) about employment law to stay ahead of the curve
Dean R. Holland, CPA, MSA
2020 Human Resources Regulatory Changes to Employment Law
A new year means new Human Resources regulatory changes in employment law. Here’s a sample of what you need to know (varies from state to state) about employment law to stay ahead of the curve:
- Mothers Room: A separate place for mothers to express breast milk that is NOT a bathroom. They can take as many unpaid breaks as necessary to express breast milk up to a year after the birth of a child. Employers under 50 employees must prove this is an undue hardship to overcome the mandate. Civil penalties are $5,000 per violation.
- Paid Leave: Most states are enacting paid sick and family leave laws. Penalties typically are in the form of backpay calculations.
- Pregnancy and childbirth leave: Specific to recovery after birth and can be combined with FMLA leave.
- Pay Equity: During the interview process you are not allowed to ask for salary history. The goal here is to force employers to make salary offers based on the job description not what was earned previously. Violations and penalties can run from $100 to over $5,000.
- W4: The revised withholding tables required a change to this form. As a practice you may want all your employees to adjust their withholding based on the new form.
- Overtime: Exempt salary base increased from $455 per week to $684. You may also allow bonuses and commissions to satisfy up to 10% of the standard salary level in a 52-week period. Penalties are usually in the form of calculating the correction and back paying was is rightfully due.
- Worker Classification: W2 or 1099? To qualify for 1099 the employer must demonstrate a worker satisfies a 3-part test to meet this classification. Misclassifying employees as independent contractors and failing to provide W-2 forms can subject an employer to back taxes of as much as 41.5% of the contractors’ wages.
- Direct Deposit, ACH: Technology has made wage transmission faster. Offering pay as it is earned is trending.
- Sexual Harassment Prevention: Required annual training employers must implement that addresses these issues. Employers who do not provide compliant training will be subject to civil penalties, including a $500 penalty to businesses with less than 4 employees, or a $1,000 penalty to those with 4 or more employees. Penalties for subsequent violations can rise to $5,000 per violation.
- Marijuana Legalization: Employers need to think about their policies with regards to marijuana including risk mitigation, accommodations, and drug testing parameters. Penalties differ according to the occurrence.
- Human Rights: IDHR administratively dismisses the charge or portions of it if the lawsuit started in a federal or state court.
- School Leave: Formerly it was for teachers’ conferences and now it includes behavior conferences.
- Arrest Information: Employers may not disqualify applicants if the background check shows criminal history that is “no charge”, “expunged” or committed as a “juvenile”. These penalties are mitigated under discrimination charges handled by the EEOC and IDHR.
Holland & Company, CPAs has partnered with Essentials of Human Resources to help our business clients meet the demanding human resource requirements of today’s age. If your business can’t afford to hire a full-time HR person, why not utilize an outsourced HR consultant who can provide your business with years of experience for a fraction of the cost?
Essentials of Human Resources works with you to develop policies, strategies, and procedures for preventing employment claims from arising. By proactively working with us, you can minimize your chances of facing employment challenges in the first place, while putting measures in the place that will maximize your chances of success should a claim surface. Please call Judy Contreras at 630-890-5590 to schedule a consultation.