Important Changes To Employment Law In 2020 You Should Know
With the start of each new year, we always find changes in employment laws. In the US, that can affect employees and job seekers at the federal, state and even at the local levels. It is always good to be knowledgeable about laws that impact you. Below you will find some of the significant changes starting on January 1, 2020.
Federal Laws
In the US, federal law applies throughout the United States. At the federal level, the government has rules which businesses operating in the US must follow.
Increased Minimum Annual Salary For Exempt Employees
Effective July 1, 2020, a final rule that amends the Fair Labor Standards Act (FLSA) goes into effect.
Increases the minimum annual salary for the vast majority of employees classified as “exempt” from $455 per week to $684 per week. A worker classified as “exempt” is not owed overtime for hours worked over 40 per week. Employers can count non-discretionary bonuses (bonuses paid at a set schedule and of amounts negotiated in advance) and any incentive payments, such as a commission, to account for at least 10% of the salary level test.
Highly compensated employees have a special section in the FLSA regulations. This category often includes computer professionals. The minimum salary to qualify increased for these workers from $100,000 to $107,432.
Redesigned W-4
According to the IRS, the new design hopes to simplify the process of completing it and increase the transparency and accuracy of withholdings. You will no longer see withholding allowances on the redesigned form. If you are currently employed, you will not need to complete a new W-4 — only if you are newly employed in 2020. See it here.
State Laws
Generally, due to the Supremacy Clause which states that federal law is the “supreme Law of the Land, state laws do not trump federal laws. There is an exception when it comes to labor laws. In cases where the state law provides the highest level of support for employees, the state law will supersede the federal law.
Minimum Wage
The federal minimum wage is $7.25 and has remained at that level since 2009. Many states have set their own minimum wage laws. With the start of each new year comes an increase in minimum wage thresholds in many states. The following states are set to increase their minimum wages on January 1.
Alaska-$10.19 per hour
Arizona-$12.00 per hour
Arkansas-$10.00 per hour
California-$13.00 per hour for businesses with 26 or more employees and $12.00 for 25 or fewer employees.
Colorado-$12.00 per hour
Florida-$8.56 per hour
Illinois-$9.25 per hour
Maine-$12.00 per hour
Massachusetts-$12.75 per hour
Michigan-$9.65 per hour
Minnesota-$10.00 per hour for large employers; $8.15 per hour for small employers
Missouri-$9.45 per hour
Montana-$8.65 per hour
New Jersey-$11.00 per hour, $10.30 per hour for seasonal and small employers
New Mexico-$9.00 per hour
New York-$11.80 per hour (effective 12/31/2019). The minimum wage for New York City small employers (with 10 or fewer employees) will rise to $15.00 per hour and Long Island and Westchester will rise to $13.00 per hour.
Ohio-$8.70 per hour
Rhode Island-$10.50 per hour
South Dakota-$9.30 per hour
Vermont-$10.96 per hour
Washington-$13.50 per hour; Seattle has a separate minimum wage based on the size of the employer and whether the employer pays $2.25 per hour toward benefits or the employee earns at least $2.25 per hour in tips.
Salary History Ban
There is growing momentum by states to prohibit the practice of potential employers asking candidates their salary history. This is an attempt to address pay inequity between employees of different gender and races doing the same type of work. On January 1, 2020, New Jersey (Assembly Bill 1094) and on January 6, 2020, New York (Salary History Bill) will prohibit the asking of the salary history of job applicants.
Artificial Intelligence and Video Interviews
Illinois enacted The Artificial Intelligence Video Interview Act that goes into effect on January 1. This law requires employers to provide candidates with information about artificial intelligence that is used as part of the hiring process. Specifically, this law is aimed at employers that record video interviews and use Artificial Intelligence analysis of those video interviews. This includes:
Notify each applicant before the interview that artificial intelligence may be used to analyze the applicant's video interview and consider the applicant's fitness for the position.
Provide each applicant with information before the interview explaining how the artificial intelligence works and what general types of characteristics it uses to evaluate applicants.
Obtain, before the interview, consent from the applicant to be evaluated by the artificial intelligence program as described in the information provided. An employer may not use artificial intelligence to evaluate applicants who have not consented to the use of artificial intelligence analysis.
Sharing videos limited. An employer may not share applicant videos, except with persons whose expertise or technology is necessary in order to evaluate an applicant's fitness for a position.
Upon request from the applicant, employers, within 30 days after receipt of the request, must delete an applicant's interviews and instruct any other persons who received copies of the applicant video interviews to also delete the videos, including all electronically generated backup copies. Any other such person shall comply with the employer's instructions.
Independent Contractors
California has enacted AB 5 which presumes that a worker is an employee of a business if the work is essential to the company’s core business, or if the supervisor directs the person on what and how to do the work, or if the worker has not established him or herself as an independent trade or business. This is an attempt to give workers the protection of an employee (such as worker’s compensation and unemployment insurance) and stop misclasification of workers as independent contractors. Several types of professionals - including doctors, lawyers, and graphic designers- were exempted from this legislation.
Lactation Accommodations
Employers are already required to provide nursing mothers an area other than a bathroom to pump milk and time to do so. In California, SB 142 will require lactating employees to also have access to a sink with running water and well as a refrigerator to store expressed milk.
Cannabis and Drug Testing
Nevada enacted AB 132 which prohibits employers from denying employment to a candidate due to a positive drug screen for marijuana with some exceptions, such as for a firefighter or emergency medical technician. Cannabis is legal in Nevada for recreational use
Paid Leave
Nevada is also requiring all private employers with 50 or more employees to provide employees with up to 40 hours of paid leave per benefit year. Nevada now joins California, Connecticut, District of Columbia, Massachusetts, New Jersey, New York, Oregon, and Rhode Island, as well as many municipalities, that have enacted paid leave laws.
Knowledge is power. Always keep informed about current laws that may impact you as an employee or job seeker
The information contained in this article is for educational and informational purposes only and is not intended as legal advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law.