As previously reported, California law (AB 1228) will require fast food workers to be paid a minimum of $20 per hour effective April 1, 2024. The Labor Commissioner’s Office has posted a Fast Food Minimum Wage Frequently Asked Questions to address the new law. The FAQ provides that to qualify as an exempt employee, an employee must receive a salary of at least two times the state minimum wage and meet other specific requirements. The FAQ notes that for employees employed by a fast food restaurant, this means that the minimum salary amount is $83,200 starting on April 1, 2024. Further, a supplement to the minimum wage order should also be posted and can be found here. California employers with questions about AB 1228 should contact experienced counsel.
California Launches $18 Million Program Intended for Wage Theft Investigation
The California Department of Industrial Relations (DIR) and the Labor Commissioner’s Office launched a program creating opportunities for local prosecutors to obtain funding for wage theft prosecutions. The program, called the Workers’ Rights Enforcement Grant, will provide eligible prosecutors with two annual grant awards of $8,550,000 each, for a total of $18 million. The first grant cycle is 2024 – 2025, and the second is 2025 – 2026.
Continue Reading California Launches $18 Million Program Intended for Wage Theft InvestigationProposed Rule Would Impose Pay Transparency and Salary History Requirements for Federal Contractors
The Federal Acquisition Regulatory Council issued a Proposed Rule, “Pay Equity and Transparency in Federal Contracting,” on January 30, 2024. The Proposed Rule would amend the Federal Acquisition Regulations (FARs), which apply to federal government commercial contracts to be principally performed in the United States and its territories. The rule imposes three new requirements on federal contractors and subcontractors.
Read the full Update here.
Sick Leave Payout Rule for Washington Construction Workers Takes Effect
Certain construction workers and other employees in the construction industry must be paid the entire balance of accrued and unused paid sick leave if those workers separate from employment before they reach their 90th day of employment. This requirement, effective January 1, 2024, applies regardless of whether a worker’s separation is voluntary or involuntary.
Read the full Update here.
Washington, D.C., Set To Enact Wage Transparency Law
On January 12, 2024, Washington, D.C., joined the growing list of jurisdictions to enact wage transparency legislation when Mayor Muriel Bowser signed the Wage Transparency Omnibus Amendment Act of 2023 (the Act), formerly known as the Pay Scale and Benefits Disclosure Amendment Act. If the Act survives the 30-day congressional review period, during which Congress can vote to overrule it, the law will take effect June 30, 2024.
The new law applies to all employers with at least one employee in Washington, D.C. and requires employers to include pay ranges in job listings and disclose healthcare benefits information to applicants. The Act also prohibits employers from inquiring about an applicant’s salary history.
Continue Reading Washington, D.C., Set To Enact Wage Transparency LawBerkeley, California: New Frequently Asked Questions on the Fair Workweek Ordinance
On January 12, 2024, the Berkeley Fair Work Week Ordinance (Ordinance) became operative. As previously described, Berkeley, California, enacted an Ordinance that requires covered employers to provide work schedules to employees at least 14 calendar days in advance of a shift and provide 11 hours of rest between shifts, among other requirements.
Berkeley employers should determine if their business is a covered employer under the Ordinance and, if so, should prepare to comply with the requirements of the Ordinance. Berkeley has issued a Frequently Asked Questions (FAQs) document to assist employers in compliance. The FAQs provide further guidance on issues including covered employers, covered employees, the required advance notice of work schedules, right to rest, and predictability pay.
Berkeley employers are encouraged to contact experienced counsel with questions about Berkeley’s Fair Workweek Ordinance, any related policies and practices, or any other California wage-and-hour laws.
The IRS Issues 2024 Optional Standard Mileage Rates
The Internal Revenue Service (IRS) issued their 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. The applicable rates are as follows:
- Business use. The rate for business use of a vehicle has increased to 67 cents per mile, up by 1 1/2 cents from the 2023 rate.
- Medical or moving purposes. For those qualifying as active-duty members of the U.S. armed forces, the rate for medical or moving purposes is set at 21 cents per mile, a decrease of 1 cent from the previous year.
- Charitable organizations. The rate for driving in service of charitable organizations remains unchanged from 2023 at 14 cents per mile.
Employers with questions about reimbursement should contact experienced counsel with questions.
California Revises Frequently Asked Questions on Paid Sick Leave
The California Department of Industrial Relations (DIR) issued updated responses to frequently asked questions (FAQs) relating to the state’s amended paid sick leave law. As previously reported, California enacted SB 616, which expands the state law with respect to paid sick leave. The new law will be effective January 1, 2024, and increases the minimum amount of sick leave per year from 24 hours (or three days) to 40 hours (or five days). California’s labor commissioner also updated the paid sick leave poster and 2810.5 employee notice to reflect the new law’s requirements. The DIR’s FAQs page answers questions for employers regarding accrual methods, caps on paid sick leave, and how employers can transition their paid sick leave policies to comply with the new law. For example, the FAQs address what an employer must do to comply with the law on January 1, 2024, if the employer uses an accrual method and capped an employee’s yearly use of leave at three days or 24 hours: —”If an employer uses an annual start date other than January 1 and implements a 12‑month use cap, that cap must change to 40 hours or 5 days on January 1, 2024. For example, if an employer uses the 12-month period of May 1 – April 30 and implements a cap and an employee used 24 hours or three days before January 1, 2024, the employer must allow the employee to use an additional 2 days or 16 hours before April 30 if the employee has accrued that additional leave.”
Continue Reading California Revises Frequently Asked Questions on Paid Sick LeaveBiden Administration Announces April 2024 Release of Final Rule on FLSA Exemptions
On December 6, 2023, the Biden administration released its Fall 2023 Unified Agenda of Regulatory and Deregulatory Actions, which provides a semi-annual update on the federal government’s regulatory agenda and sets target dates for upcoming rulemaking. That update included the announcement that the U.S. Department of Labor (DOL) aims to release its final rule amending the so-called “white collar” exemptions under the Fair Labor Standards Act (FLSA), titled Defining and Delimiting the Exemptions for Executive, Administrative, Professional Outside Sales and Computer Employees, in April 2024. We provide a short synopsis of the proposed changes that would go into effect with that release.
Continue Reading Biden Administration Announces April 2024 Release of Final Rule on FLSA ExemptionsIllinois Minimum Wage Increases on January 1, 2024
On January 1, 2024, the Illinois Minimum Wage will rise to $14 per hour for individual who are 18 years and older. New employees in the first 90 days of employment over the age of 18 may be paid up to 50 cents less per hour. Youths under the age of 18 who work fewer than 650 hours per calendar year may be paid $12 per hour. Tipped employees may be paid 60% of the hourly minimum wage, which for 2024 will be $8.40. The state minimum wage applies to employers of four or more employees.
Continue Reading Illinois Minimum Wage Increases on January 1, 2024