Nothing new under the sun, right? So it comes as no surprise that 2023 – like every year before it — saw a lot of action from state legislators making new employment laws and adding more requirements for business leaders.
Human Resources Compliance isn’t just a buzzy phrase I made up to define my business; it’s the shield that protected companies from getting smacked with penalties.
I love the HR compliance rollercoaster ride, but I sure can understand that business owners have enough drama to keep them up at night without worrying about how to comply with the ever-changing employment regulations.
Employment laws aren’t the same everywhere — so keeping up is the key to avoiding fines and legal headaches, especially when it came to taking care of workers and handling payroll.
Just so you’re familiar, let me catch you up on two of 2023’s HR compliance trends:
Pay Equity / Pay Transparency Laws
With the rise of remote work, it isn’t just about knowing the laws in your own state but also in the states where your remote team members are living and working.
One hot HR compliance trend was pay transparency laws, with some states making businesses throw open the curtain on their pay data and add salary ranges into job postings. And don’t even think about asking about salary history during the hiring process – it’s a big no-no.
Now, the tricky part was dealing with remote workers. Even if your state didn’t have strict pay equity laws, hiring remote folks means playing by the rules of their home state. The experts hinted that pay equity laws are gaining momentum, and we should brace ourselves for more states jumping on the bandwagon.
Penalties for messing up on pay equity and transparency laws are no joke. Illinois enacted a $10,000 fine for violations, and New York City upped the ante with penalties hitting $125,000 for not being honest about salary ranges. Plus, the possibility of class-action lawsuits is a real possibility, especially if your job posting lacks a salary range, leaving applicants in the dark.
Paid Family Leave
In 2023, not satisfied with the paid family leave requirements they enacted in the last few years, some states got creative with the definition of “family member,” going beyond the usual suspects like spouses and kids. New York expanded the list to include siblings with serious health issues, and California gave employees the power to pick someone who felt like family for medical leave.
When California adopts an employee-friendly law, it’s not long before many other US states start to want that law, too, so keep you eyes out how this may affect your business in 2024.
(And I’ll be keeping an eye out for you, too.)
Happy holidays, everyone!
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