Eminent Future’s Post

Massachusetts employers: Pay Transparency requirements are coming. On July 24, 2024, the MA legislature passed a bill requiring employers with 25 or more employees in the Commonwealth to disclose salary range information on job postings and to provide pay range information to current employees in certain circumstances. The law also has other requirements related to EEO disclosures. The law will come into effect one year after being signed by the Governor (which is expected soon!) As an employer, how should you prepare for these changes? Reviewing your internal salary structures for consistency is a good start! It would also be wise to consider that while the definition of “pay range” in the statute does not appear to have monetary requirements, query whether posting a pay range of $50,000-$250,000 properly complies with the law. The focus needs to be on what you “reasonably and in good faith” expect to pay for the position. This will require risk management and common sense approaches. Need more information on this topic? My Seyfarth colleagues Jean Wilson and Barry Miller have you covered: https://lnkd.in/eAUjRTKz. #PayTransparency #TeamSeyfarth #SeyfarthOlympians

For those interested in or already in the Federal sector or in Federal Contracting, I came across this insightful article and thought it was worth sharing. "White House Pushes Pay Equity for Federal Employees and Contractors" Here is what stood out for me in the article: 1. OPM noted that salary history is not necessarily a good indicator of worker value, experience, and expertise, and it also may contain or exacerbate biases. 2. Under the proposed policy and the proposed regulatory amendments, contractors and subcontractors would also be required to disclose the compensation to be offered to the hired applicant in job announcements for certain positions. 3. “Inquiring into and relying on an applicant’s compensation history for making hiring and compensation decisions can perpetuate and compound existing pay disparities for workers who have experienced inequality in the past, such as women, workers of color, workers who entered the labor market during a recession, and workers who temporarily left the workforce due to caregiving responsibilities,” the DoL’s Office of Federal Contract Compliance Programs (OFCCP) #federaljobs #federalcontracting #transitioningmilitary #veteranjobs

Federally-regulated employers are at various stages of their respective journeys towards compliance with the new federal Pay Equity Act (the “Act”). In this HR Space bulletin, Jackie VanDerMeulen (she/her), Sophie Arseneault, Carl Trudeau and Rebecca Rossi review upcoming compliance deadlines and other go-forward obligations under the Act.

Federally-regulated employers are at various stages of their respective journeys towards compliance with the new federal Pay Equity Act (the “Act”). In this HR Space bulletin, Jackie VanDerMeulen, Sophie Arseneault, Carl Trudeau and Rebecca Rossi review upcoming compliance deadlines and other go-forward obligations under the Act: https://direc.to/mZnN. 

Federally-regulated employers are at various stages of their respective journeys towards compliance with the new federal Pay Equity Act (the “Act”). In this HR Space bulletin, Jackie VanDerMeulen (she/her), Sophie Arseneault, Carl Trudeau and Rebecca Rossi review upcoming compliance deadlines and other go-forward obligations under the Act.

Federally-regulated employers are at various stages of their respective journeys towards compliance with the new federal Pay Equity Act (the “Act”). In this HR Space bulletin, Jackie VanDerMeulen (she/her), Sophie Arseneault, Carl Trudeau and Rebecca Rossi review upcoming compliance deadlines and other go-forward obligations under the Act: https://direc.to/mZnN. 

Big changes are coming to how you post jobs and pay your employees! On October 1, 2024, Maryland’s Pay Transparency Law and Pay Stub and Pay Statement Law will go into effect, impacting wage disclosures and pay statements. Here’s what you need to know: Pay Transparency Law Employers must include wage ranges and a general description of benefits in all job postings, whether internal or external, and this applies even for remote roles. In addition to wage ranges, you’ll need to disclose potential bonuses, stock options, PTO, healthcare, and retirement benefits. This law aims to promote pay equity, and don’t forget—Maryland law prohibits asking for or verifying a candidate’s salary history during background checks. Pay Stub and Pay Statement Law Employers must provide new hires with a written notice that identifies their pay rate, how often they’ll get paid, and their leave benefits. Every payday, employers must issue detailed pay stubs or statements showing gross and net pay, hours worked, and any bonuses or commissions earned. Importantly, the pay stubs must also specify the frequency of pay to comply with the law. Failure to meet these requirements could lead to penalties of up to $500 per employee. Transparency is key—non-compliance can result in serious penalties. Be sure to check out my Forbes article for a comprehensive overview of both laws: https://lnkd.in/g5UBMgc8 I’ve also included links to guidance, FAQs, and sample templates prepared by the Maryland Department of Labor to help ensure compliance. Interested in learning more? The Maryland Department of Labor is hosting a webinar on September 25, 2024, at 10 a.m., providing an overview of both laws and a Q&A session. Register here: https://lnkd.in/gBS2nTmm #ComplianceUpdate #HRNews #Maryland #PayTransparency #PayEquity #Payroll #BackgroundChecks

Extra, Extra, read all about it... Good news for some (mainly employers). Bad news for others (mainly employees). On November 15, 2024, a federal court in Texas ruled that the Department of Labor had overstepped its authority with the most recent rule, increasing the minimum salary for exempt employees. 𝐓𝐡𝐞 𝐉𝐮𝐥𝐲 1 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐬 𝐚𝐫𝐞 𝐯𝐨𝐢𝐝, 𝐭𝐡𝐞 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐭𝐡𝐚𝐭 𝐰𝐨𝐮𝐥𝐝 𝐡𝐚𝐯𝐞 𝐭𝐚𝐤𝐞𝐧 𝐞𝐟𝐟𝐞𝐜𝐭 𝐨𝐧 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 1, 2025, 𝐰𝐨𝐧’𝐭 𝐡𝐚𝐩𝐩𝐞𝐧, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐚𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐜 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐬 𝐭𝐡𝐚𝐭 𝐰𝐞𝐫𝐞 𝐬𝐜𝐡𝐞𝐝𝐮𝐥𝐞𝐝 𝐭𝐨 𝐨𝐜𝐜𝐮𝐫 𝐞𝐯𝐞𝐫𝐲 𝐭𝐡𝐫𝐞𝐞 𝐲𝐞𝐚𝐫𝐬 𝐚𝐫𝐞 𝐧𝐨 𝐦𝐨𝐫𝐞. 𝐈𝐧 𝐬𝐡𝐨𝐫𝐭, 𝐭𝐡𝐞 𝐰𝐡𝐨𝐥𝐞 𝐫𝐮𝐥𝐞 𝐰𝐚𝐬 𝐭𝐡𝐫𝐨𝐰𝐧 𝐨𝐮𝐭, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐦𝐢𝐧𝐢𝐦𝐮𝐦𝐬 𝐡𝐚𝐯𝐞 𝐫𝐞𝐯𝐞𝐫𝐭𝐞𝐝 𝐭𝐨 𝐰𝐡𝐚𝐭 𝐭𝐡𝐞𝐲 𝐰𝐞𝐫𝐞 𝐩𝐫𝐢𝐨𝐫 𝐭𝐨 𝐉𝐮𝐥𝐲 1, 2024. This means that most executive, administrative, and professional employees need to be paid at least $684 per week ($35,568 annually), and not the $844 required by the now-defunct 2024 rule. Employees classified under the highly compensated employee exemption need to be paid at least $107,432 per year, as opposed to $132,964. 𝐀𝐜𝐭𝐢𝐨𝐧 𝐈𝐭𝐞𝐦𝐬 If so inclined, employers can roll back changes they made to comply with the rule in July and halt any plans they had for the second increase in January. However, they can’t retroactively reduce pay or change an employee’s classification. Employees should be informed of any changes to their pay or classification before the changes take effect, and this should be done in compliance with any applicable state or local laws, which may have specific notice requirements. Employers should also consider the potential impacts on employee morale and do what they can to mitigate any negative ones. If nothing else, explaining that changes are due to fickle federal law and the needs of the business will help employees understand that your decisions aren’t arbitrary. ********* HR Girlfriends Consulting is ready to help your organization or small business prepare for what's ahead in 2025. While the salary threshold changes are no longer on the table, there are plenty of other regulations you should be prepared for (every state has its own 2025 laws to implement). [email protected] (844) 474 - 4757 Office HRisEasy.com

ATTN Employers: Illinois Pay Range Disclosure begins in January, meaning companies will have to disclose salary ranges in job postings. #lavellelaw attorney Lance Ziebell explains the implications for both compliance and strategic workforce management. https://bit.ly/3YqMzwl #IllinoisPayRangeDisclosure #IllinoisEqualPayAct #employer #employmentlaw 

Millions of workers will have more freedom over where they work should a recent Federal Trade Commission ban on nearly all noncompete agreements take effect. In interviews with The WSJ, workers largely cheered the new rule. They say they are already thinking about ways a ban on noncompetes could help them and others change jobs and earn more. Many major employers, on the other hand, are fighting the decision with a challenge in federal court filed by the U.S. Chamber of Commerce and backed by the Business Roundtable, which represents chief executive officers of some of the country’s biggest employers. Some employers are also preparing to change the way they train and pay their workers. The ban is set to go into effect at the end of August, but could be delayed or struck down by lawsuits. The new rules shift the balance of power between U.S. workers and their bosses yet again, following years of workplace clashes over remote work and pay, as well as a wave of resignations and layoffs. Employees say noncompetes have kept them tied to bad bosses or unreasonably limited their career mobility. Businesses say they need noncompetes to protect trade secrets and other confidential information, including customer lists and financial data. Noncompete clauses in employment contracts have proliferated in recent years. They prohibit people across industries and pay grades—from fast-food workers to medical doctors—from easily moving to other employers or starting new ventures of their own. Under the new FTC ruling, noncompete agreements will become unenforceable, with exceptions for many senior executives in a policymaking position. The FTC’s ban on noncompete agreements would throw a uniform layer over the patchwork of state laws. Five states—California, Minnesota, Colorado, North Dakota and Oklahoma—have already banned all or nearly all noncompetes, according to Mercer, a benefits consulting firm. Several other states have put restrictions on noncompetes, such as allowing them only for employees who earn over a certain pay threshold. One push behind partial bans on noncompetes has been to allow lower-wage workers, such hair stylists, to switch jobs if they can make more money elsewhere. Noncompete clauses have been effectively unenforceable in California for decades, freeing workers to jump to rivals and allowing companies to poach talent at will. Many leaders in the tech sector have attributed much of the success of Silicon Valley to talent that’s unfettered by noncompetes. Many Massachusetts tech workers, and some employers, have long cited the state’s enforcement of noncompetes as one reason the Greater Boston area often loses employees and startups to Silicon Valley—none bigger than Meta. The ban on noncompetes doesn’t stop companies from using other techniques, including pay raises and retention bonuses, to retain employees or protect trade secrets, employment lawyers say.