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Workplace Compliance News & Resources
for the Mid-Atlantic

Below is a round-up of workplace safety news for states in the Mid-Atlantic employers need to know to keep their business compliant.

Stay on top of safety and compliance the right way with this information but be sure to seek legal counsel when you’re looking for how these changes will directly impact your business. Wherever available, KPA products are updated with the latest government notices and posters for employers.

Delaware

Effective Immediately: Delaware Legalizes Recreational Marijuana

Who: Delaware employers

When: Effective immediately

On April 23, 2023, effective immediately, Delaware became the 22nd state to legalize recreational marijuana. Governor John Carney did not sign House Bills 1 and 2, but he did not veto them; thus, the decriminalization of recreational marijuana went into effect. Persons aged 21 and older may now possess and use one ounce of marijuana.

Employers do not have to allow workers to possess or use recreational marijuana in the workplace and may prohibit drug use by implementing the appropriate policies. Employers may perform drug tests and take disciplinary action based on positive drug tests.

The new law does not impact the existing law regulating the use of medical marijuana and does not change the rights of medical marijuana users.

How:

  • Review your workplace drug use and testing policies and update them as needed.

Additional Resources:

HB 1

HB 2

Effective July 1, 2022: Healthy Delaware Families Act Passed

Who: Delaware employers with 10 or more employees

When: Effective July 1, 2022

What: On May 10, 2022, Delaware Governor John Carney signed the Healthy Delaware Families Act into law. It provides covered employees paid leave benefits in these cases:

  • An employee has a serious health condition;
  • To care for a spouse’s, parent’s, or child’s serious health condition;
  • To bond with and care for a child in the first year after birth, adoption, or placement; and
  • To address the impact of a family member’s military deployment.

The benefit replaces up to 80% of the worker’s average weekly wage, with a minimum of $100 per week (or the employee’s full wage if less than $100) and a maximum of $900 per week. The employee may take up to 12 weeks per year for parental leave and up to six weeks per 24-month period for other qualifying reasons. An employee may take a maximum of 12 weeks in any given year.

The paid leave will be funded by contributions from employers and employees. Contributions will begin January 1, 2025. Employers may choose to pay the entire 0.8% payroll tax or withhold up to 50% of the required amount from employees’ paychecks. Employees will be able to use the job-protected paid family leave beginning January 1, 2026. Covered workers are those primarily reporting for work in Delaware who have worked for their employer for at least a year and have worked at least 1,250 hours in the previous 12 months.

Employers with 10 to 24 Delaware employees have to contribute to the leave program and provide parental leave. Those with 25 or more employees must  provide family caregiving and medical leave in addition to parental leave. Employers who are closed for 30 or more consecutive days during the year are exempt.

Violations include not providing required leave and retaliating for taking leave. Such violations are subject to damages, including lost wages, actual damages, liquidated damages, attorneys’ fees, and reinstatement.

The Delaware Department of Labor plans to release an employee notification poster, which employers must post. Employers must also provide a notice to new hires and employees who request leave.

How:

  • Review your policies and procedures and make any changes necessary in advance of the effective date to ensure compliance with the law.
  • Post the required employee notification poster when it is available on the Delaware Department of Labor website.
  • Plan to provide a notice to new hires and employee who request leave.

Additional Resources:

SB 1

Delaware Department of Labor

Effective Immediately: Delaware Issues Universal Face Mask Mandate

Who: Delaware employers and employees

When: Effective immediately

What:

Update 2/7/2022: Governor Carney has signed a fourth revision to the state emergency order to end Delaware’s universal indoor face mandate. The expiration to the mandate went into effect on February 11, 2022.

On January 10, 2022, Governor John Carney signed a revision to the Declaration of a State of Emergency the State of Delaware due to a Public Health Threat implementing a universal indoor face covering mandate. The mandate requires everyone over the age of 5 to wear a face mask within indoor public settings. Children between the ages of 2 through 5 are strongly encouraged to follow the indoor mask mandate.

The mandate was issued as a response to Delaware repeatedly surpassing its daily record number of reported cases of COVID-19 throughout January 2022.

The mask mandate extends to both privately and publicly owned buildings as well as public transportation and car service vehicles. Businesses are encouraged to post signage regarding the indoor mask requirement outside their building and provide disposal masks to any visitors, employees, contractors, and volunteers who may not have them.

Masking is not required for outdoor public spaces, houses of worship, and indoor open-plan or cubicle settings wherein people maintain six feet of distance between themselves and others when seated. Masking is also not required for those attending indoor restaurants and bars only while actively eating and drinking.

Reasonable accommodations for businesses can be requested for individuals who have a medical condition or disability that prevents them from wearing a mask. Businesses are not required to ask mask-less individuals to produce documentation verifying their stated condition. Reasonable accommodations include curbside pickup, delivery, or pick-up by appointment.

How:

  • Review your current policies and procedures and update them to comply with the current mandate.
  • Educate and inform your employees about state mandates and safety protocols.

Additional Resources:

Face Mask Sign

Printable Signs

Delaware COVID-19

Delaware Health and Social Services

Delaware Public Health Emergency Declarations

Washington, D.C.

Effectively Immediately: D.C. Publishes New Paid Family and Medical Leave Notice

Who: District of Columbia employers

When: Effective Immediately

The D.C. Department of Employment Services issued a new Paid Family and Medical Leave notice for 2024 to reflect the new maximum weekly benefit of $1,118. Employers must provide the notice to all employees and post the notice in a conspicuous place in the workplace by February 1, 2024.

The maximum weekly benefit increases every year in October in proportion to the annual average increase in the Consumer Price Index for All Urban Consumers for the Washington-Baltimore metropolitan area, as long as the Chief Financial Officer of D.C. certifies that the Universal Paid Leave Fund has enough funds to cover the maximum weekly benefit.

How:

  • Post the updated PFML notice and provide it to all employees by February 1, 2024.

Additional Resources:

D.C. Paid Family Leave

Notice to Employees

Paid Family Leave Information for Employers

Deadline Approaches (Aug. 31) for Sexual Harassment Prevention Training for Tipped Workers in D.C.

Who: D.C. employers

When: Provide training by August 31, 2023

Employers that have at least one tipped wage worker are covered by the District of Columbia’s Tipped Wage Workers Fairness Amendment Act. They must provide sexual harassment prevention training to all employees, managers, operators, and owners by August 31, 2023. Covered employers must provide training every two years.

New hires must take the training within 90 days of their hire date unless they received the training within the last two years. Managers must take the training live and in person. Employees, operators, and owners can take the training online or live and in person.

The training must include:

  • How to respond to sexual harassment;
  • How to intervene in sexual harassment; and
  • How to prevent sexual harassment by co-workers, management, and patrons.

Employers must also provide a sexual harassment prevention policy to all employees, post it in the workplace, and file it with the Office of Human Rights.

How:

  • Distribute your sexual harassment policy to all employees and post it in the workplace. File it with the Office of Human Rights.
  • Complete the training by August 31, 2023.

Additional Resources:

Sexual Harassment Prevention Training Compliance and Training FAQs

List of Certified Trainers

Tipped Wage Workers Fairness Act

Effective May 1, 2023: Washington, D.C. Minimum Wage Increase for Tipped Employees

Who: Washington DC employers with tipped employees

When: Effective May 1, 2023

On May 1, 2023, the Washington DC minimum wage for tipped employees will increase from $5.35 per hour to $6.00 per hour. On July 1, 2023, it will increase to $8.00 per hour. The tipped minimum wage was to go into effect on January 1, 2023, but emergency legislation by the council of the District of Columbia delayed the effective date to May 1, 2023.

How:

  • Post the District of Columbia Minimum Wage Poster.

Additional Resources:

Initiative 82

Emergency Legislation

District of Columbia Minimum Wage Poster

District of Columbia Minimum Wage Increase Notice

District of Columbia Office of Wage-Hour Compliance

Effective January 1, 2023: DC Eliminates Tip Credit

Who: District of Columbia employers

When: Effective January 1, 2023

District of Columbia voters passed Initiative 82, the Tip Credit Elimination Act, on November 8, 2022. The employer tip credit will be phased out starting on January 1, 2023, and will be completely eliminated by 2027. The purpose is to phase out the tip credit, which allows employers to rely on their employees’ tips to satisfy their obligation to pay the D.C. hourly minimum wage.

The minimum hourly cash wage for tipped employees will increase from $5.35 to $6.00 an hour starting on January 1, 2023. By 2027, the minimum wage for tipped workers will be equivalent to D.C.’s minimum wage at that time.

How:

  • Update your payroll policies and systems to comply with the law.
  • Notify managers in D.C. locations of the upcoming changes to minimum wage for tipped workers.
  • Ensure that you have posted the Tipped Wage Workers Fairness Amendment Act Fact Sheet that explains workers’ rights under the Act.

Additional Resources:

Initiative 82

Tipped Wage Workers Fairness Amendment Act Fact Sheet

Complete by December 31: Sexual Harassment Training for Tipped Workers Required in D.C.

Who: D.C. employers with one or more employees

When: Complete training by December 31, 2022

D.C. employers with one or more employees must provide sexual harassment training to tipped workers by December 31, 2022, and post the Tipped Wage Workers Fairness Amendment (TWWF) Act Fact Sheet in the workplace. The Act does not apply to tipped workers if they receive cash wages at or above D.C.’s minimum wage.

The training must address a number of topics, including:

  • Equal Employment Opportunity;
  • Sexual harassment;
  • Strategies for how to respond to, intervene in, and prevent workplace harassment; and
  • How to report potential violations.

Employers must use a DCOHR-certified facilitator to provide the training to:

  • Non-manager new hires (in person or online within 90 days of hire);
  • Non-managers, owners, and operators (in person or online every two years); and
  • Managers (in person only, every two years).

Employers must certify that training has been completed within 30 days of completion.

Employers must use the Office of Human Rights TWWF Program Documentation and Certification Platform to submit related documentation and certify that they have complied with the requirements for posting the tipped wages fact sheet, updating their policies, completing the required training, and reporting the number of complaints for sexual harassment for 2020, 2021, and 2022.

Employers must establish a sexual harassment policy that includes information about how to report instances of sexual harassment to the employer and the DCOHR. Employers must distribute that policy to employees and post it in a location accessible to employees.

The Act’s requirements pursuant to the policy are retroactive. Employers have to certify that they had their sexual harassment policy in place in 2020 and 2021 and that all employees received the policy. Documents and certifications for 2020 and 2021 should have been submitted to the DCOHR by September 30, 2022.

Employers must report the number of sexual harassment complaints that occurred in 2020 and 2021 to the DCOHR by December 31, 2022. The deadline for reporting the number of 2022 sexual harassment complaints is March 1, 2023. Employers will be required to submit the number of complaints by the end of the year each successive year. Email Tipsdc@dc.gov with questions.

How:

  • Post the Tipped Wage Workers Fairness Amendment Act Fact Sheet that explains the workers’ rights under TWWF.
  • Submit your compliant anti-sexual harassment policy to the DCOHR.
  • Provide the anti-sexual harassment policy to all employees and post it in the workplace.
  • Provide the required training to all owners, managers, operators, and employees by December 31, 2022.
  • Report the number of 2020 and 2021 sexual harassment complaints to the DCOHR by December 31, 2022, and the number of 2022 complaints by March 1, 2023.

Additional Resources:

D.C. Law 22-196 Tipped Wage Workers Fairness Amendment Act of 2018

Tipped Wage Workers Fairness Amendment Act Fact Sheet

Office of Human Rights Tipped Wage Workers Fairness (TWWF) Program Documentation and Certification Platform

Trainers Certified in Sexual Harassment Prevention for the Tipped Wage Industry

Tipped Workers Fairness Act

Effective Immediately: D.C. Expands Antidiscrimination Protections

Who: D.C. employers

When: Effective immediately

The DC Act 24-491 was signed on July 25, 2022, and amends the District of Columbia Human Rights Act, effective October 1, 2022. The law expands the definition of “protected employee” to include:

  • Those who are working or seeking work as an independent contractor, and
  • Unpaid interns.

The amendment also adds homeless individuals, or individuals the employer “perceives” to be homeless under the protected classes in employment. Employers are prohibited from discriminating against any employee or applicant because of their homeless status. Discrimination includes the refusal to hire or otherwise unfairly discriminating with respect to compensation or the terms, conditions, or privileges of employment.

The law expressly prohibits workplace harassment on the basis of any protected characteristic. Harassment is defined as “conduct, whether direct or indirect, verbal or nonverbal, that unreasonably alters an individual’s terms, conditions, or privileges of employment, or has the purpose or effect of creating an intimidating, hostile, or offensive work environment.”

How:

  • Review your anti-discrimination policies and update them as needed to comply with the law.

Additional Resources:

D.C. ACT 24-491

District of Columbia Office of Human Rights Protected Traits in DC

Effective Immediately: D.C. Scales Back Non-Compete Ban

Who: D.C. employers

When: Effective immediately

On July 27, 2022, District of Columbia Mayor Muriel Bowser signed into law the Non-Compete Clarification Amendment Act of 2022. The effective date of the act was delayed to October 1, 2022, during which time the D.C. Council examined its impact on businesses. The law scales back many of the broad restrictions on non-compete agreements in the original Ban on Non-Compete Agreements Amendment Act of 2020.

The original bill prohibited the use and enforcement of non-compete agreements for all D.C. employees. It also banned policies that prohibited moonlighting or competitive activities or restricted employees from owning their own businesses. The new law rolls back several of those restrictions and states that non-compete agreements are enforceable only for those employees that earn less than $150,000 per year.

The law defines a non-compete provision as “a provision in a written agreement or a workplace policy that prohibits an employee from performing work for another … or from operating the employee’s own business.” Employers may still prohibit employees from:

  • Disclosing, using, selling, or accessing confidential or proprietary information, and
  • Working concurrently for another entity if the employer believes it could result in disclosure of such information or otherwise pose a conflict of interest.

Covered employees are those who work half or more of the time in D.C. or regularly spend a substantial amount of work time in D.C.

When employers present a non-compete agreement to a highly compensated employee, they must include specific information as described in the act and present it in writing at least 14 days before execution of the agreement or commencement of employment.

Employers must provide their policy provisions to current highly compensated employees, per Section 103a Disclosures to Employees provisions, within 30 days after October 1, 2022. They must also provide a notice to new highly compensated employees within 30 days of hire and when the policy is amended.

The notice for highly compensated employees must state: “The District’s Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-compete Agreements Amendment Act of 2020, under certain conditions. [Name of employer] has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES).”

The amendment contains an anti-retaliation provision. Violators may be assessed administrative penalties of $350 to $1,000 for each violation of the non-compete provisions and of $1,000 to $2,500 for each violation of the anti-retaliation provision, along with $500 to $1,000 in monetary relief for violations of the non-compete provisions.

How:

  • Review your compensation structures to determine which employees qualify as highly compensated.
  • Provide the required notice to highly compensated employees.
  • Review your non-compete agreements, employee handbook, and workplace policies to comply with the law.
  • Train managers, supervisors, and HR personnel on prohibited non-compete agreements.

Additional Resources:

B24-0256 Non-Compete Conflict of Interest Clarification Amendment Act of 2021

Section 103a Disclosures to Employees for specific details on the notice and policy requirements in the “Non-Compete Clarification Amendment Act of 2022”

Effective Immediately: District of Columbia Announces Paid Leave Amounts

Who: D.C. employers

When: Effective immediately

Effective October 1, 2022, pursuant to the Universal Paid Leave Emergency Amendment Act of 2022, D.C. paid leave increased as follows:

  • Qualifying family leave increased from 6 weeks to 12 weeks
  • Qualifying parental leave increased from 8 weeks to 12 weeks
  • Qualifying medical leave increased from 6 weeks to 12 weeks
  • Total leave within a 52-workweek period increased from 8 weeks to 12 weeks

Prenatal leave remains the same at 2 weeks. There is one exception to the 12-week per year maximum, and that is if the employee stacks 2 weeks of prenatal leave and 12 weeks of parental leave.

The Act eliminated the one-week waiting period to receive paid leave benefits and decreased the employer contribution rate to the Universal Paid Leave Fund from 0.62% to 0.26% of gross wages, effective for the quarter beginning July 1, 2022.

The extended paid leave is funded by a surplus in the District of Columbia’s Universal Paid Leave Fund.

 

How:

  • Post the Universal Paid Leave Act notice in the workplace and provide it to all new employees, to all employees once a year, and when an employee submits a paid family leave request.
  • Update your paid leave policies to comply with the law.

Additional Resources:

DC Universal Paid Family Leave

Universal Paid Leave Act Notice to Employees

Effective September 11: Washington D.C. Bans Discrimination Against Employees for Personal Marijuana Use

Who: Washington D.C. employers

When: Effective September 11, 2022

What: On July 13, 2022, Governor Mayor Muriel Bowser signed the Cannabis Employment Protections Amendment Act of 2022 into law. It goes into effect 60 days after July 13, 2022, after a congressional review.

The law bans employers from taking adverse action against an employee or refusing to hire an applicant on the basis of their off-duty use of a marijuana, their status as a medical cannabis program patient, or a failed marijuana test, without evidence of on-the-job impairment. Adverse action includes termination, suspension, demotion, or refusal to promote. It protects recreational and medical marijuana users.

Impairment is specifically defined in the law as the “employee manifests specific articulable symptoms while working, or during the employee’s hours of work, that substantially decrease or lessen the employee’s performance of the duties or tasks of the employee’s job position, or [that] . . . interfere with an employer’s obligation to provide a safe and healthy workplace as required by District or federal occupational safety and health law.”

The law contains a number of exceptions, including federal employees, employees of D.C.’s courts, public safety workers, people who care for others, many healthcare jobs, positions that work with heavy equipment, workers who frequently work near power or gas utility lines, and work that involves handling hazardous materials. It also excludes those jobs where following the law would be in violation of federal guidelines.

Employers may ban possession and usage at the workplace, and take adverse action against workers who are under the influence of marijuana while at work. They may implement workplace policies that require post-accident and reasonable-suspicion drug testing for cannabis and other drugs.

Employers have 60 days after the law’s effective date to provide a notice to employees of their rights under the law, which positions the employer has designated as safety sensitive, and the employer’s protocols for testing for alcohol or drugs. Employers must provide the same notice annually thereafter, and to new hires.

Employees have up to a year from the violation to file a complaint with Washington D.C.’s Office of Human Rights. Employers who are found to be in violation of the law are subject to fines up to $5,000 per violation, depending on employer size, plus the employee’s lost wages and attorney’s fees. Employers may also be mandated to hire or reinstate the employee. More than one violation in a year subjects the employer to double fines. Lastly, the employee may file suit in court once they have exhausted their administrative remedies with the Office of Human Rights.

How:

  • Provide notice of employees’ rights to employees, and provide to all new hires.
  • Update your drug use and drug testing policies and procedures to comply with the law.

Additional Resources:

Bill 24-109

D.C. Office of Human Rights (OHR)

Effective July 1, 2022: District of Columbia Increases Paid Sick Leave

Who: District of Columbia employers

When: Effective July 1, 2022

What: The District of Columbia’s paid sick leave is increasing effective July 1, 2022. Under the District’s Universal Paid Leave Fund regulations, the leave was to increase gradually over a period of time. The Fund quickly developed a significant surplus, however, so the amount of leave is increasing as follows:

  • Parental leave: from 8 weeks to 12 weeks
  • Family leave: from 6 weeks to 12 weeks
  • Medical leave: from 6 weeks to 12 weeks
  • Prenatal leave: remains the same at 2 weeks

The overall cap is 12 weeks of Universal Paid Leave per employee per year. Due to the surplus, the employer payroll tax is decreasing from 0.62% to 0.26%.

How:

  • Update your paid leave policies and procedures to comply with the law.
  • Monitor the D.C. Paid Family Leave website for the updated Paid Family Leave Notice and post in the workplace.

Additional Resources:

D.C. Paid Family Leave

Maryland

Effective Immediately: Maryland Releases Draft FAMLI Regulations

Who: Maryland employers

When: Effective immediately

On January 29, 2024, the Maryland Department of Labor released draft regulations for the state’s paid family and medical leave insurance (FAMLI) law and is accepting comments from the public. The draft regulations include extensive changes to or clarification of:

  • Definitions,
  • Contributions,
  • Reporting deadlines,
  • Requirements to establish an equivalent-private insurance plan,
  • The claims process,
  • When an employee can take concurrent leave,
  • The timelines for receiving benefits, and
  • The dispute resolution process.

In this draft, contributions would be pushed back from October 1, 2024, to July 1, 2025. Employees could start to receive benefits on July 1, 2026, instead of January 1, 2026. Employees in Maryland can qualify for up to 12 weeks of paid family and medical leave and an additional 12 weeks of paid parental leave.

These draft regulations are not the proposed final regulations, as the agency intends to go through at least one more round of public comment.

How:

  • Read the draft regulations and submit your comments to policy@maryland.gov.
  • Monitor for updates to the draft regulations.

Additional Resources:

Draft Regulations

Effective January 1, 2024: Maryland Increases Minimum Wage

Who: Maryland employers

When: Effective January 1, 2024

With the passage of the Fair Wage Act of 2023 on April 11, 2023, Governor Wes Moore is ramping up minimum wage faster than Maryland employers expected. It was supposed to have indexed increases through 2026 (dependent upon employer size). The new law increases minimum wage to $15.00 per hour effective on January 1, 2024, for all employers, regardless of size.

The new law also eliminates any additional future increases absent new legislation.

How:

  • Post an updated minimum wage poster in the workplace.

Additional Resources:

SB 555

Maryland Minimum Wage and Overtime Law – Employment Standards Service (ESS)

Maryland Minimum Wage and Overtime Law Poster

Effective Immediately: Maryland Expands Anti-Discrimination Law

Who: Maryland employers

When: Effective immediately

Effective October 1, 2022, the state of Maryland has made three changes to expand its anti-discrimination protections.

First, there is now a lower standard to prove harassment—it no longer has to be severe or pervasive. Those words have been removed from the definition of harassment and sexual harassment. Sexual harassment is defined as conduct “that consists of unwelcome sexual advances, requests for sexual favors, or other conduct of a sexual nature.”

Now, harassment is defined as unwelcome and offensive conduct when the conduct is based on a protected class and:

  • Submission to the conduct is explicitly or implicitly made a term or condition of an individual’s employment;
  • Submission to or rejection of the conduct is used as the basis for employment decisions affecting that individual; or
  • The conduct creates a working environment a reasonable person would perceive as abusive or hostile based on the totality of the circumstances.

Second, employers with 15 or more employees must now provide reasonable accommodation to applicants with disabilities, except in cases where they can prove the accommodation causes undue hardship.

Third, the law stays the time for individuals to file a civil lawsuit alleging an unlawful employment practice while their administrative charge or complaint is pending. Previously, a worker had to timely file in accordance with the applicable statute of limitations even if their administrative charge or complaint was pending.

How:

  • Update all policies and employee handbooks to include the revised definitions of harassment and sexual harassment, along with information about reasonable accommodation for applicants with disabilities.
  • Update your training materials with the new definitions of harassment and sexual harassment.
  • Document the circumstances surrounding disciplinary actions and employee separations in a timely fashion.
  • Train hiring managers on reasonable accommodation under federal and state law.
  • Train managers on how to identify, respond to, and prevent unlawful harassment.

Additional Resources:

SB 450

HB 78

Effective July 1: Maryland Employers Required to Submit Sexual Harassment Survey

Who: Maryland employers with 50 or more employees

When: Effective July 1, 2022

What: In accordance with the Disclosing Sexual Harassment in the Workplace Act of 2018, which became effective on October 1, 2018, employers must disclose information about sexual harassment settlements before July 1, 2022.

Employers must provide:

  • The number of settlements made after an employee’s allegation of sexual harassment;
  • The number of times the employer paid a settlement to resolve a sexual harassment allegation against the same employee over 10 years (if there is an answer provided here, the employer must disclose whether they took employment against said individual); and
  • The number of settlements that included a provision that both parties keep the settlement terms confidential.

The law sunsets on June 30, 2023, unless renewed.

How:

  • Provide the survey to the Commission on Civil Rights by the July 1, 2022, deadline.

Additional Resources:

HB 1596

“Disclosing Sexual Harassment in the Workplace Act of 2018” Employer Disclosure Survey

Howard County, Maryland Releases Minimum Wage Poster

Who: Howard County, Maryland employers

When: Effective immediately

What: Howard County, Maryland released new Minimum Wage and Overtime posters—one in English and one in Spanish—that reflect the new minimum wage effective April 1, 2022. The new minimum wage is $12.50 per hour for small employers and $14.00 per hour for large employers.

Small employers are those with 14 or fewer employees, those with tax-exempt status, those that provide home health services, and certain food service facilities. Large employers are all others except U.S., state, or local governmental entities.

In accordance with Council Bill No. 82-2021, minimum wage will increase to $16.00 per hour in increments over four years for large, small, and government employers. The next scheduled step for private employers is on January 1, 2023, to $13.25 per hour for small employers and $15.00 per hour for large employers.

How:

  • Post the Maryland Minimum Wage and Overtime Howard County Poster in English and Spanish.

Additional Resources:

Bill 82-2021

Maryland Department of Labor Maryland Minimum Wage and Overtime Law – Employment Standards Service

Maryland Minimum Wage and Overtime for Howard County Poster English

Maryland Minimum Wage and Overtime for Howard County Poster Spanish

New Jersey

Effective Immediately: New Jersey Releases Guidance on Unemployment Insurance Reporting Obligations

Who: New Jersey employers

When: Effective immediately

The New Jersey Department of Labor released guidance to help employers understand the steps they need to take to comply with the amended unemployment insurance law. The agency has not yet provided official instructions of what employers must submit to the New Jersey Division of Unemployment when an employee is separated from employment but is in the process of creating an online form for employers to use.

Employers need to register online at Employer Access and give the agency an email address, which—for the time being—satisfies the requirement for an employer to communicate with the agency only through electronic means. The agency recognizes that it has not given clear instructions and so does not expect employers to submit information about separations that result in unemployment insurance for the employee, other than the date upon which the unemployment will begin.

The agency has indicated that it will be lenient in its enforcement of the amended law until it gives clear instructions, including enforcement of the new seven-day limit for employer appeals.

How:

  • Register with Employer Access.
  • Monitor for the release of the online form, instructions, and any additional guidance.

Additional Resources:

CHAPTER 120

Get started with Employer Access

FAQs about new changes to the NJ Unemployment Compensation Law

Effective August 5, 2023: New Jersey Enacts Protections for Temporary Workers

Who: New Jersey employers

When: Effective August 5, 2023

On February 6, 2023, New Jersey Governor Phil Murphy signed the Temporary Workers’ Bill of Rights, with most provisions going into effect on August 5, 2023. The law provides protections for temporary workers assigned by a temporary help service firm (i.e., a staffing firm or a temp agency) if they fall into one of nine U.S. Department of Labor Bureau of Labor Statistics categories.

The requirements that go into effect on August 5, 2023, are:

  • Equal pay: Temporary workers must be paid at least the same average rate of pay and have access to the same benefits (at the average cost of those benefits or the cash equivalent of them) as the regular employees.
  • Wage payment: Employers must give temporary workers a daily work verification form to complete, must pay wages every other week upon request by the worker, and must pay for a minimum of four hours of work if they do not give the worker any work to do (unless they send the worker to another location to perform work, in which case they must pay for a minimum of two hours of work). Staffing agencies must give each temporary worker a detailed itemized statement on their paystub or on an approved form.
  • Transportation fees: Staffing firms and employers are prohibited from charging temporary workers any fees for transporting them to or from designated work sites.
  • Recordkeeping: Staffing agencies must keep specific records for temporary workers for six years. Employers must provide specific information to the staffing firm no later than seven days after the last day of the workweek in which the worker performed any work.
  • Regulations on staffing agency agreements with their clients: Employers must reimburse agencies payroll taxes associated with services performed by temporary workers. There can be no restrictions on the employer’s ability to hire a temporary worker as a permanent employee. The agency can charge a fee up to the daily commission rate they would have received for that worker’s work over a 60-day period.
  • Private right of action and statute of limitations: The parties may file a lawsuit within six years of a violation. Agencies and employers are jointly and severally liable for violations.

Staffing agencies may be fined administrative penalties of $500 to $5,000 for violations. All staffing agencies in New Jersey must register with the New Jersey Department of Labor and Workforce Development (DOL). Violations of the temporary worker protection provisions may result in that registration being revoked or denied.

How:

  • Review your hiring and employment procedures and practices and update as needed to comply with the law.
  • Review your staffing agency–employer agreements to ensure compliance with the law.
  • Train affected personnel on the provisions of the law.

Additional Resources:

Assembly Bill 1474 Temporary Workers’ Bill of Rights

Effective July 31, 2023: New Jersey Amends Unemployment Law

Who: New Jersey employers

When: Effective July 31, 2023

On November 3, 2022, Governor Phil Murphy signed amendments to R.S.43:21-6, New Jersey’s Unemployment Compensation Law, effective July 31, 2023. The law changes the reporting requirements for employers any time an employer operating in New Jersey discharges an employee. The employer must now immediately and simultaneously electronically submit a copy of Form BC-10 to the New Jersey Department of Labor and Workforce Development (NJDOL) when they submit the form to the employee—whether or not the employee files for unemployment insurance benefits. The NJDOL will provide a new form with directions that detail the specific benefit information employers must provide, which they will use to make a benefit determination.

In addition, the process for the unemployment benefits determination has changed:

  • The NJDOL must now make the initial determination within three weeks of the claim date.
  • The NJDOL must consider the employer’s separation information when making a claim, give the claimant a copy of the separation information the employer gives to the agency, and give the claimant a chance to respond.
  • NJDOL’s Division of Unemployment and Temporary Disability Insurance now must notify the claimant’s employers and obtain any missing separation information within 7 calendar days of receiving the separation information or the date of the claim, whichever comes first.
  • If the employer does not respond within 7 days, the NJDOL will make a determination based on available evidence. If the employer submits the information late, the NJDOL can alter the amount, but the amounts paid before the alteration are incontestable.
  • If a benefits overpayment resulted only from the employer’s failure, the claimant is not liable for repayment. If the overpayment was the NJDOL’s error, they will deduct the overpayment from unemployment benefits upon the next separation if it occurs within four years. If it was the claimant’s error, they must repay the overpayment.
  • Previously, claimants and employers had seven days from receipt of notice of the determination (or 10 days from the notice mailing date) to appeal the initial determination. Now, claimants have 21 days from the mailing date and employers have 7 days from confirmed receipt by any means, including by email. Appeals after that time period are now prohibited.

Penalties for failure to provide separation information have increased to $500 or 25% of the amount fraudulently withheld, with each withholding of a material fact and each day counting as a separate offense.

How:

  • Review and update your unemployment policies to comply with the law.
  • Provide the BC-10 notice to employees and a copy to the New Jersey Department of Labor and Workforce Development (NJDOL).
  • Monitor the NJDOL website for the release of formal directions for Form BC-10.

Additional Resources:

Chapter 120

Instructions for claiming unemployment benefits Form BC-10

New Jersey Division of Unemployment Insurance

Effective Immediately: New Jersey Extends Unemployment Benefits to Striking Workers

Who: New Jersey employers

When: Effective immediately

Governor Phil Murphy signed A4772/S3215 on April 24, 2023, effective immediately. The law amends R.S.43:21-5 and extends unemployment insurance (UI) benefits for workers that strike or participate in labor disputes. The law applies retroactively to January 1, 2022, for claims that were filed by that date.

The purpose is to provide fair access to unemployment benefits to those who are trying to obtain better working conditions, pay, and/or benefits and encourage employers to come to the bargaining table sooner rather than trying to “wait out” workers who are not collecting a paycheck or UI benefits.

The amendment allows for the distribution of UI benefits during a lockout even when there was no strike immediately preceding the lockout. Workers are now eligible for UI benefits 14 days after a strike begins—reduced from the previous 30 days—and the state will now pay UI benefits immediately if an employer hires replacement workers (permanent or temporary). Lastly, the amended law provides for no disqualification of benefits if the dispute is because the employer failed to comply with an agreement between the parties.

How:

  • Comply with the unemployment insurance benefits amendments.

Additional Resources:

A4772/S3215

New Jersey Division of Unemployment Insurance

Effective Immediately: New Jersey Amends Mini-WARN Act

Who: New Jersey private employers with 100 or more employees

When: Effective immediately

On January 10, 2023, Governor Phil Murphy signed Assembly Bill 4768 into law (an amended Worker Adjustment and Retraining Notification Act, or mini-WARN Act), effective April 10, 2023. The law requires New Jersey private employers with 100 or more employees nationwide to give employees notice of a mass layoff and to pay severance.

The amendments include:

  • Part-time employees are included in the “100 or more” employees when considering who’s a covered employer.
  • The layoff count is now 50 part-time or full-time employees working at or reporting to any location statewide, which eliminates the site-specific count.
  • The notice period is now 90 days rather than 60 days. Noncompliance is penalized by adding four more weeks of severance pay.
  • Employers must pay one week’s salary for each full year of employment as severance pay, whether they give proper notice or not.

How:

  • Review your policies and procedures to ensure compliance with the amended law.
  • Provide the WARN Act notice at least 90 days before conducting a mass layoff or terminating employees.

Additional Resources:

AB 4768

New Jersey Department of Labor & Workforce Development Layoffs and Closings

N.J. Stat. § 34:21-1

Effective May 7, 2023: New Jersey Temporary Workers Bill of Rights Notice and Retaliation Provisions Going into Effect

Who: New Jersey employers that employ temporary workers

When: Effective May 7, 2023 (notice and anti-retaliation provisions)

On February 6, 2023, New Jersey Governor Phil Murphy signed the Temporary Laborers’ Bill of Rights, which helps ensure that temporary workers have certain protections at work. It is one of the first equal pay laws in the nation that requires employers to pay temporary workers the same average rate of pay as they do to permanent employees, plus the average cost of benefits or the cash equivalent thereof. The law becomes effective August 5, 2023, and the notice and anti-retaliation provisions go into effect May 7, 2023.

The law applies only to temporary workers in certain categories—those considered to be at the greatest risk of exploitation.

Temporary help firms must provide a written statement to temporary laborers in English and the worker’s primary language that includes certain information. The New Jersey Department of Labor and Workforce Development (DOL) will publish a model notice. The notice must contain:

  • Name of the temporary worker;
  • Name, address, and telephone number of the firm or the firm’s agent, the workers’ compensation carrier, the worksite employer or third-party client, and the DOL;
  • Name and nature of the work to be performed;
  • Wages;
  • Name and address of assigned worksite;
  • Transportation offered, if any;
  • Description of the position and requirements for clothing, protective equipment, training, licenses, or supplies, and who is to provide and pay for those items;
  • Meals and equipment offered, and the cost to the worker;
  • Schedule for multi-day assignments;
  • Amount of sick leave the worker is entitled to and its terms of use.

The firm must give temporary workers 48 hours’ advance written notice “when possible” if the work schedule, shift, or location for a multi-day assignment changes.

Also going into effect on May 7, 2023, are the requirements for itemized statements and an approved work verification form for single-day assignments. The verification form must contain the date, temporary laborer’s name, work location, and hours worked that day.

The firm must provide an itemized statement on the worker’s paycheck stub or on an approved form that contains:

  • Name, address, and telephone number of each third-party client where the temporary laborer worked;
  • Number of hours worked at each third-party client each day during the pay period;
  • Wage rate for each hour worked;
  • Total earnings for the pay period;
  • Amount of each deduction; and
  • The current maximum placement fee that the firm may charge a client to directly hire the worker; and
  • The total amount charged to the client for the worker during each pay period as compared to the total compensation cost for the worker, including the cost of benefits provided.

Temporary help firms that violate the notice requirements may be assessed a $500 penalty for the first violation and up to $1,000 for each additional violation.

The anti-retaliation provisions also go into effect on May 7, 2023. Temporary help firms may not retaliate against temporary laborers for exercising their rights. Adverse action within 90 days of a worker exercising their rights raises a rebuttable presumption of retaliation. A worker who succeeds in a court case is entitled to the greater of all legal or equitable relief or liquidated damages equal to $20,000 per incident, reinstatement, and attorneys’ fees and costs.

How:

  • Review your payroll practices and agreements and update them as needed to comply with the law.
  • Coordinate with temporary staffing firms to ensure they are complying with the law.
  • Post the notice once it is released by the New Jersey Department of Labor and Workforce Development.
  • Train personnel on the provisions of the law.

Additional Resources:

Assembly Bill 1474 Temporary Workers’ Bill of Rights

New Jersey Department of Labor and Workforce Development Website

Effective April 10, 2023: New Jersey Passes WARN Law

Who: New Jersey employers with 100 or more employees

When: Effective April 10, 2023

Governor Philip D. Murphy signed Assembly Bill 4768—amending the Worker Adjustment and Retraining Notification (WARN) Act—into law on January 10, 2023. It goes into effect on April 10, 2023. Some of the changes include notice obligations, mandatory severance pay, a different threshold for mass layoffs, a new definition of covered employer, and a new definition of “establishment.”

The amendments change who is considered a covered employer by specifying that the law applies to employers with 100 or more full-time or part-time employees nationwide. Before, it was only full-time employees.

The single-site analysis method of determining whether the a “mass layoff” has occurred, which triggers the advance-notice requirement, has been eliminated. Now, the law is triggered when an employer lays off 50 or more full-time or part-time employees at or reporting to any or all of the employer’s New Jersey locations. In addition, the amended law eliminates the stipulation that a layoff is a triggering event only when at least a third of the workforce is affected.

The original WARN Act required employers to give 60 days’ advance notice of a qualifying event (i.e., shutdown, transfer, or layoff). The employer had to pay severance only if they violated the 60-day rule. The amended law requires employers to give 90 days’ advance notice of termination AND they must pay severance equal to one week’s salary for every full year of employment. These rules apply even when the employer complies with the notice requirements. If employers do not comply with the 90-day notice requirement, they must pay an additional four weeks of severance. The only exception to the notice requirement is in the case of a natural disaster.

Employers need to be mindful of the differences between the state and federal WARN Acts and comply in all cases.

How:

  • Determine whether the law now applies to you considering the new definition of the 100-employee threshold.
  • Plan triggering events well in advance and comply with the 90-day notice requirement.

Additional Resources:

Senate Bill 3162

AB 4768

Effective Immediately: New Jersey Releases Drug Testing Guidance

Who: New Jersey employers

When: Effective immediately

On September 9, 2022, the New Jersey Cannabis Regulatory Commission (NJ-CRC) issued interim guidance to employers regarding using Workplace Impairment Recognition Experts (WIREs). The interim guidance is “intended to serve as guidance until the NJ-CRC formulates and approves standards for WIRE certifications.”

The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) requires employers to conduct a “physical evaluation” of an employee using a WIRE to determine whether the employee is impaired prior to conducting most marijuana drug testing. CREAMMA requires that NJ-CRC prescribe standards for “WIRE certification, to be issued to full-or part-time employees, or others contracted to perform services on behalf of an employer, based on education and training in detecting and identifying an employee’s usage of, or impairment from, a cannabis item or other intoxicating substance, and for assisting in the investigation of workplace accidents.”

The interim guidance states that employers should take the following steps in order to demonstrate sufficient physical impairment to take adverse action against that employee for suspected cannabis use. Note that an employee is currently not required to follow these steps:

  • Designate a staff member (or third-party contractor) to assist with making determinations of suspected cannabis use. The staff member should be sufficiently trained to determine impairment and be qualified to complete the Reasonable Suspicion Observation Report.
  • Complete NJ-CRC’s Reasonable Suspicion Observed Behavior Report form. Note that employers are not required to use this form. The employer should create standard procedures for completing this form.
  • Conduct a “cognitive impairment test, a scientifically valid, objective, consistently repeatable, standardized automated test of an employee’s impairment, and/or an ocular scan, as physical signs or evidence to establish reasonable suspicion of cannabis use or impairment at work.”

Nothing in CREAMMA or the guidance prohibits an employer from implementing drug-free workplace policies.

How:

  • Consult with legal counsel to ensure you are in compliance.
  • Review your hiring practices, drug-testing policies, and drug-free workplace policies and update as needed to comply with the law and guidance.
  • Use the Reasonable Suspicion Observation Report or prepare your own form, along with a standard operating procedure for how to complete the form.
  • Train managers and HR personnel on the requirements of the law.
  • Designate and train staff or a third party to conduct impairment assessments and complete the behavior report.

Additional Resources:

New Jersey Cannabis Regulatory Commission Guidance on Workplace Impairment

New Jersey Cannabis Regulatory Commission

Reasonable Suspicion Observed Behavior Report

Remote Worker Posting Requirements Finalized for New Jersey Law Against Discrimination and New Jersey Family Leave Act

Who: New Jersey employers

When: Effective immediately

What: On August 1, 2022, New Jersey Division of Civil Rights adopted final regulations for posting and distributing posters related to the state’s Law Against Discrimination (NJLAD) and Family Leave Act (NJFLA). Employers may satisfy the state’s posting requirements by posting the posters on the employer’s Internet or intranet site where all employees can access them. In addition, employers must distribute copies of the posters to each employee on an annual basis (on or before December 31), and upon an employee’s first request.

Employers may distribute the posters to employees by email; in printed form, such as a flyer given at a meeting or along with paychecks; in the employee manual; in new hire packets; or on an employee-accessible Internet or intranet site if the employer notifies the employee that the poster has been posted on the site.

Finally, the Division of Civil Rights requires employers to post a notice regarding the New Jersey Law Against Discrimination in places of public accommodation in a place where the public can see it, such as the lobby or main entrance of an office.

How:

  • Post the required New Jersey Law Against Discrimination and Family Leave Act posters; size must be 8 ½” by 11” if posting in the workplace physically.
  • On an annual basis, distribute the required New Jersey Law Against Discrimination and Family Leave Act posters to employees physically or electronically.

Additional Resources:

Final Regulations

New Jersey Law Against Discrimination in Employment Poster

New Jersey Family Leave Act Poster

New Jersey Law Against Discrimination in Places of Public Accommodation Poster

State of New Jersey Department of Law & Public Safety Required Posters

New Jersey Solicits Comments on Posting Requirements for Remote Workers

Who: New Jersey employers

When: Comments due by May 20, 2022

What: On March 22, 2022, the New Jersey Division on Civil Rights (DCR) released proposed regulations that would help employers meet posting requirements for remote workers. The agency is soliciting comments on the proposed regulations from the public until May 20, 2022.

Because more workers are working from home or somewhere other than the employer’s worksite, the DCR is proposing that employers can satisfy the posting requirements for the state’s Law Against Discrimination (LAD) and Family Leave Act (NJFLA) by posting on the employer’s Internet or intranet site. All employees would have to be able to access the site, and employers would customarily have to post the required notices there.

The proposed regulations would expand notice requirements by requiring employers to distribute copies of the posters to each employee on an annual basis, on or before December 31 and upon an employee’s first request. The employer would have some discretion as to how to accomplish the distribution: by email; in printed form as a flyer given at a meeting or along with paychecks, employee manuals, or new hire packets; or on an employee-accessible Internet or intranet site if the employer gives notice to the employee that the poster has been posted on the site. The agency will review all comments before releasing the final version.

How:

  • Submit your comments by May 20, 2022.
  • Watch for release of the final regulation and poster.

Additional Resources:

Proposed Regulations

April 18: New Jersey Employers Must Notify Employees about GPS Tracking

Who: New Jersey private employers

When: Effective April 18, 2022

What: Effective April 18, 2022, Assembly Bill A3950 requires employers to notify employees in writing before using GPS tracking devices in vehicles or devices the employees operate. The law defines GPS tracking devices as electronic communications devices or electronic or mechanical devices used solely to track the movement of a vehicle, person, or device. Electronic communications devices include cell phones, computers, personal digital assistants, and all similar devices the employee uses. The rule applies to employer-owned vehicles and employees’ personal vehicles.

For first-time violations of the law, an employer faces a fine of up to $1,000. For subsequent violations, the fine may be up to $2,500.

How:

  • Create a written notice to give to employees who use vehicles or devices that are or will be tracked via GPS tracking devices. Clearly explain your tracking practices. Have employees sign an acknowledgment of receipt of the notice.
  • Review and update your employee handbook and policies to ensure employees understand how you are tracking the vehicles and devices they use.

Additional Resources:

A3950

Effective Immediately: New Jersey Requires Vaccination for Health Care Workers

Who: New Jersey health care employers and employees

When: Effective immediately

What: As of January 19, 2022, the state of New Jersey requires that all individuals who work in a health care facility, nursing home, or prison must be fully vaccinated against COVID-19. Under EO 283 New Jersey health care workers must have received two doses of a COVID-19 vaccine by February 28, 2022. Those who work in nursing homes and prisons are required to have received two doses of a COVID-19 vaccine by Match 30, 2022.

Per the executive order, workers will no longer have the option to submit a negative COVID-19 test in lieu of vaccination.

Those workers who are currently eligible will be required to receive a booster shot by February 28, 2022, or until three weeks following their eligibility date. Workers who do not comply with this order may face disciplinary action on the part of their employers, including termination from employment.

Affected workers under the EO are defined as full-time employees, part-time employees, contractors, and individuals who provide operational, custodial, or administrative support.

Exemptions for this requirement are in place for those who have not received vaccination for medical reasons or religious objections.

How:

  • Review your current policies and procedures and update them to comply with the order.
  • Educate and inform your employees about state orders and safety protocols.

Additional Resources:

Executive Order No. 283

New Jersey COVID-19 Vaccine Healthcare Provider Frequently Asked Questions

Official Site of the State of New Jersey COVID-19 Resources

State of New Jersey Department of Health

Pennsylvania

Effective Immediately: Pennsylvania Updates Criminal Record Expungement Law

Who: Pennsylvania employers

When: Effective immediately

On December 14, 2023, Pennsylvania State Governor Josh Shapiro signed HB 689 into law, effective February 12, 2024. The new law gives employers immunity from claims related to the hiring of a person when the employer knows the person had an expunged criminal record. This clarifies that employers will not be liable for claims related to the lawful use of criminal record history information or knowledge of a candidate’s expunged records.

The law also extends automatic expungements to pardons. Additionally, individuals who meet certain requirements and are free from conviction for seven years can petition for limited access to their criminal records; previously, the minimum was 10 years.

How:

  • Update your background check practices to comply with the law.
  • Update your procedures for processing information a candidate voluntarily gives about their post-conviction relief.

Additional Resources:

HB 689

Effective Immediately: Philadelphia Strengthens Its Ban the Box Law

Who: Philadelphia employers

When: Effective immediately

On December 20, 2023, Philadelphia Mayor Cherelle Parker signed Bill 230571 into law, which amended the Fair Criminal Record Screening Standards (“Ban the Box”) Ordinance, effective January 19, 2024. The purpose of this law is to reduce discrimination against and promote hiring of qualified ex-offenders.

The law prohibits employers from:

  • Inquiring about an applicant’s arrests and convictions on an employment application;
  • Inquiring about arrests that didn’t result in a conviction;
  • Making employment decisions based on arrests that didn’t result in a conviction; and
  • Rejecting an applicant or employee based on a conviction that resulted in exoneration.

The amendment defines exoneration as the reversal or vacating of a conviction by pardon, acquittal, dismissal, or other post-conviction re-examination of the case by the court or other government official.

How:

  • Review the amended law and update your employment applications to comply.
  • Review your background check policies and practices and update them to comply with the law.

Additional Resources:

Bill 230571

Chapter 9-3500

City of Philadelphia Fair Criminal Record Screening Standards Ordinance

Effective May 3, 2023: Pennsylvania Amends Data Breach Law

Who: Pennsylvania public employers and contractors

When: Effective May 3, 2023

On November 3, 2023, Governor Tom Wolf signed SB 696 into law, which goes into effect May 3, 2023. It amends Pennsylvania’s Breach of Personal Information Notification Act, which addresses the security of computerized data and requires notification of residents whose personal information data was or may have been disclosed due to a breach of a system’s security.

The amendments updated the definition of “personal information” to a person’s first name or initial and last name in combination with:

  • Social security number,
  • Driver’s license number,
  • State identification card number,
  • Financial account number,
  • Credit or debit card number in combination with a required access or security code or password,
  • Health insurance or medical information, and
  • Usernames and email addresses in combination with a password or security question and its answer.

“Personal information” excludes publicly available information that is lawfully made available to the general public from federal, state, or local government records or widely distributed media.

The amended law specifies that notification is required after the “determination” of a breach, which is defined as “a verification or reasonable certainty that a breach of the security of the system has occurred.”

The amendments add timelines and reporting notice requirements for state agencies, state contractors, public schools, counties, and municipalities. In the case of a data breach, state agencies and state contractors must notify impacted individuals and the Office of the Attorney General via email or another method of electronic notification within seven business days. Public schools, counties, and municipalities must notify their county’s district attorney’s office within three days and notify impacted individuals within seven days.

The amendments allow for electronic notice if it “directs the person whose personal information has been materially compromised by a breach of the security of the system to promptly change the person’s password and security question or answer, as applicable or to take other steps appropriate to protect the person’s online account to the extent the entity has sufficient contact information for the person.”

State agencies must now include language in their contracts with “state agency contractors” that ensures compliance with the law. If a state agency contractor discovers a breach, they must notify the affected state agency as soon as is reasonably practicable but no later than the time period specified in the contract.

Any entity that maintains, stores, or manages computerized data on behalf of the Commonwealth of Pennsylvania must develop and annually review and update policies regarding encryption and other security measures and transmission of data by state agencies.

How:

  • Update your policies to comply with the law.
  • Review and update your incident response plans.
  • After determining there was a data breach, notify affected individuals within the required time period.

Additional Resources:

SB 696

Effective December 31, 2022: Philadelphia Enacts Commuter Benefit Requirement

Who: Philadelphia, Pennsylvania private employers with 50 or more employees

When: Effective December 31, 2022

The Philadelphia City Council passed the Employee Commuter Transit Benefit Programs law on June 22, 2022. Employers with 50 or more employees must offer a transportation benefit plan that complies with Internal Revenue Code Section §132(f) to covered employees, effective December 31, 2022.

The benefit is one funded through pre-tax payroll deductions or paid for by the employer, or a combination. Benefits funded through payroll deductions (as allowed under the Internal Revenue Code §132(f)(1)(D), and (f)(5)(F)) are:

  • Mass transit expenses, such as the cost of a pass, token, or other fare instrument;
  • Expenses related to transportation in a commuter highway vehicle; and
  • Qualified bicycle expenses, including reasonable expenses for the purchase, maintenance, and storage of a bicycle used for commuting.

An employer may choose to pay for a fare instrument or combine that employer-paid benefit with the benefits funded by payroll deductions.

Employees that qualify are those that have worked an average of 30 hours a week in Philadelphia for the same employer in the last 12-month period. Unpaid interns, volunteers, and unpaid apprentices do not qualify for benefits.

For the tax years 2018 through 2025, reimbursement for qualified bicycle expenses are taxable income for employees and deductible expenses for employers.

Employers who do not provide the commuter benefit program face a fine of $150 to $300 per day.

How:

  • Develop a commuter benefit program before the December 31, 2022, deadline.

Additional Resources:

Bill No. 220337

Effective August 5: Pennsylvania Adopts New Rules for and Calculating Overtime and Paying Tipped Workers

Who: Pennsylvania employers

When: Effective August 5, 2022

What: After a period of public comment, the Pennsylvania Department of Labor and Industry adopted a rule that amends the Pennsylvania Minimum Wage Act (PMWA). The Independent Regulatory Review Commission approved the final rule on March 21, 2022, and it is effective August 5, 2022. The amendment impacts overtime calculations for salaried nonexempt employees and payment of tipped workers.

The rule prohibits employers from using the “fluctuating workweek” method of calculating overtime. Under the fluctuating workweek approach, employers would divide the employee’s salary by all hours worked that week and use that rate as the regular rate to calculate the 50% overtime premium. Instead, the new law requires employers to calculate overtime by dividing the total weekly compensation (this includes salary, bonuses, and any other compensation that must be included in the regular rate) by 40 and pay overtime at 1.5 times that rate for each hour worked beyond 40 during the workweek.

The new law also makes multiple changes to existing laws related to compensating tipped workers. First, the definition of a tipped employee has been changed to: one who is paid below the state’s minimum wage (currently $7.25 per hour) and spends no less than 80% of their time on tipped work and does not perform “tip-related” work for a continuous period of time that exceeds 30 minutes.

The rule updates the amount of tips an employee must earn per month before the employer may take a tip credit from $30 to $135 per month. Only when the worker earns the minimum in monthly tips may the employer pay less than the minimum wage (per-hour tipped rate is currently $2.83).

The rule incorporates by reference the federal tip pooling regulations in 29 C.F.R Section 531.54, which means:

  • Employers that take a tip credit must limit the top pool to employees who customarily and regularly receive tips;
  • Employers that don’t take a tip credit may include dishwashers, cooks, and other employees who do not customarily and regularly receive tips in the tip pool; and
  • Employers, supervisors, and managers may not receive tips from a tip pool.

Other changes to tipped worker compensation are:

  • Employers may not deduct credit card processing and other fees from employee tips;
  • Employers with tip pools must maintain a record of the names and positions of the tip pool participants, and how much in tips they receive;
  • Service charges are distinct from tips. Employers that charge “service charges” and distribute those to employees must consider them wages, include them in the regular rate of pay, and not use them to satisfy the tip credit; and
  • Employers that levy a service charge for a banquet, special function, or package deal must notify patrons in writing that the charge is for administration and does not include a tip; the billing statement must have separate line items for tips and service charges.

How:

  • Review your policies and procedures and update them as necessary to comply with the law.

Additional Resources:

Final Rule

Pennsylvania Bulletin

Pennsylvania Rules and Regulations

Effective Immediately: City of Pittsburgh Issues Employer Guidance Related to Victims of Domestic Violence

Who: Allegheny County, Pennsylvania employers with 26 or more employees

When: Effective immediately

What: Effective December 15, 2021, private employers that are situated or doing business in Allegheny County, Pennsylvania, and have 26 or more employees must provide paid sick leave for covered employees. The Allegheny County City Council approved the ordinance known as the Paid Sick Leave law on September 14, 2021, and County Executive Rich Fitzgerald signed it into law on September 15, 2021. The law does not apply to any municipality within Allegheny County that has already enacted its own paid sick leave law, as long as that law is at least as stringent as the new County ordinance.

When determining whether an employer is covered, the employer should count all employees. However, only employees who perform work within Allegheny County boundaries for at least 35 hours in a 12-month period are eligible to receive the sick leave benefit. Independent contractors and seasonal employees are not covered.

Employers must accrue one hour of paid sick time for every 35 hours worked within Allegheny County, beginning December 15, 2021, or the employee’s hire date if hired after December 15. Employees may start taking sick leave on the 90th calendar day after their hire date. The cap on annual accrual and usage is 40 hours.

Acceptable reasons for taking sick leave are:

  • The employee’s (or employee’s family member’s) mental or physical illness, injury, or health condition, including diagnosis, treatment, and preventive medical care;
  • Closure of the employee’s place of business because of a public health emergency;
  • The need to care for a child whose school or place of care has been closed because of a public health emergency; or
  • The need to care for a family member when health authorities or a health care provider have determined the family member’s presence creates a risk to the community due to exposure to a communicable disease, whether or not the family member has contracted the disease.

Family member includes any child (biological, adopted, foster, stepchild, child of domestic partner, legal ward, or child to whom the employee stands in loco parentis), sibling (biological, foster, or adopted), spouse or domestic partner, parent (biological, foster, adoptive, stepparent, or legal guardian of employee or employee’s spouse or domestic partner), grandparent (or spouse or domestic partner of grandparent), grandchild, and person the employer gave the employee permission to care for using sick time.

Employees must request to use sick time. If they know how much time they’ll need, they should inform the employer. When the need to take time is foreseeable, they should give the amount of notice the employer requires—which can be up to seven days. If the need is unforeseeable, the employee must give notice as soon as possible. If there is no advance notice policy, employees must request to use leave at least one hour before their shift starts.

An employer may either frontload all 40 hours at the beginning of the year and not carry over unused sick time or carry unused time over, up to a cap of 40 hours. Employers can choose whether or not to pay out unused sick time upon separation. If the employer rehires an employee within six months, the employer must reinstate unused sick leave for immediate use, unless that leave was paid out at separation.

Employers must give employees notice of their right to sick leave and post the employee notification poster by March 10, 2022. This requirement applies even in cases where the employer provides their own equivalent paid leave policy or a collective bargaining agreement exists.

An employer may request reasonable documentation of the need for leave if the employee takes three or more days, but may not require an explanation of the exact nature of the illness.

Paid sick time must be paid at an employee’s base rate of pay, and the employer must provide the same benefits while the employee takes sick leave.

Employers have to keep records of hours worked and sick leave taken for two years. They must also use a reasonable system to notify employees of their available paid sick time.

Employers may not retaliate against an employee for exercising their rights under the law, and the ordinance creates a rebuttable presumption of retaliation for any adverse employment action taken within 90 days of an employee using leave. Employers cannot be fined for violations of the new law until December 15, 2022 (one year after its effective date of December 15, 2021).

How:

  • Provide the Alleghany County Paid Sick Leave Notice to employees and post it in the workplace by March 10, 2022.
  • Review and update your paid sick leave or PTO policies.
  • Train HR personnel, managers, and supervisors on the new law.

Additional Resources:

Ordinance

Alleghany County Paid Sick Leave Notice

Allegheny County Paid Sick Leave County Website

Guidelines for Administering the Allegheny County Paid Sick Leave Ordinance

Paid Sick Leave FAQs

Who: Allegheny County, Pennsylvania employers with 26 or more employees

When: Effective immediately

What: Effective December 15, 2021, private employers that are situated or doing business in Allegheny County, Pennsylvania, and have 26 or more employees must provide paid sick leave for covered employees. The Allegheny County City Council approved the ordinance known as the Paid Sick Leave law on September 14, 2021, and County Executive Rich Fitzgerald signed it into law on September 15, 2021. The law does not apply to any municipality within Allegheny County that has already enacted its own paid sick leave law, as long as that law is at least as stringent as the new County ordinance.

When determining whether an employer is covered, the employer should count all employees. However, only employees who perform work within Allegheny County boundaries for at least 35 hours in a 12-month period are eligible to receive the sick leave benefit. Independent contractors and seasonal employees are not covered.

Employers must accrue one hour of paid sick time for every 35 hours worked within Allegheny County, beginning December 15, 2021, or the employee’s hire date if hired after December 15. Employees may start taking sick leave on the 90th calendar day after their hire date. The cap on annual accrual and usage is 40 hours.

Acceptable reasons for taking sick leave are:

  • The employee’s (or employee’s family member’s) mental or physical illness, injury, or health condition, including diagnosis, treatment, and preventive medical care;
  • Closure of the employee’s place of business because of a public health emergency;
  • The need to care for a child whose school or place of care has been closed because of a public health emergency; or
  • The need to care for a family member when health authorities or a health care provider have determined the family member’s presence creates a risk to the community due to exposure to a communicable disease, whether or not the family member has contracted the disease.

Family member includes any child (biological, adopted, foster, stepchild, child of domestic partner, legal ward, or child to whom the employee stands in loco parentis), sibling (biological, foster, or adopted), spouse or domestic partner, parent (biological, foster, adoptive, stepparent, or legal guardian of employee or employee’s spouse or domestic partner), grandparent (or spouse or domestic partner of grandparent), grandchild, and person the employer gave the employee permission to care for using sick time.

Employees must request to use sick time. If they know how much time they’ll need, they should inform the employer. When the need to take time is foreseeable, they should give the amount of notice the employer requires—which can be up to seven days. If the need is unforeseeable, the employee must give notice as soon as possible. If there is no advance notice policy, employees must request to use leave at least one hour before their shift starts.

An employer may either frontload all 40 hours at the beginning of the year and not carry over unused sick time or carry unused time over, up to a cap of 40 hours. Employers can choose whether or not to pay out unused sick time upon separation. If the employer rehires an employee within six months, the employer must reinstate unused sick leave for immediate use, unless that leave was paid out at separation.

Employers must give employees notice of their right to sick leave and post the employee notification poster by March 10, 2022. This requirement applies even in cases where the employer provides their own equivalent paid leave policy or a collective bargaining agreement exists.

An employer may request reasonable documentation of the need for leave if the employee takes three or more days, but may not require an explanation of the exact nature of the illness.

Paid sick time must be paid at an employee’s base rate of pay, and the employer must provide the same benefits while the employee takes sick leave.

Employers have to keep records of hours worked and sick leave taken for two years. They must also use a reasonable system to notify employees of their available paid sick time.

Employers may not retaliate against an employee for exercising their rights under the law, and the ordinance creates a rebuttable presumption of retaliation for any adverse employment action taken within 90 days of an employee using leave. Employers cannot be fined for violations of the new law until December 15, 2022 (one year after its effective date of December 15, 2021).

How:

  • Provide the Alleghany County Paid Sick Leave Notice to employees and post it in the workplace by March 10, 2022.
  • Review and update your paid sick leave or PTO policies.
  • Train HR personnel, managers, and supervisors on the new law.

Additional Resources:

Ordinance

Alleghany County Paid Sick Leave Notice

Allegheny County Paid Sick Leave County Website

Guidelines for Administering the Allegheny County Paid Sick Leave Ordinance

Paid Sick Leave FAQs

Philadelphia Employers May Not Conduct Pre-employment Marijuana Testing

Who: Philadelphia, Pennsylvania employers

When: Effective January 1, 2022

What:

The Philadelphia, Pennsylvania City Council approved an ordinance—Chapter 9-4700 of the Philadelphia Code—which Mayor Jim Kenney signed into law on April 28, 2021. The law goes into effect on January 1, 2022. It prohibits employers, labor organizations, and employment agencies from requiring an applicant to submit to drug testing for marijuana as a condition of employment except as otherwise provided by law.

There are some exceptions:

  • Positions that require a commercial driver license;
  • Positions in law enforcement;
  • Positions that require the employee to supervise or care for children, the disabled, or other vulnerable persons;
  • Positions in which the employee could significantly impact the health or safety of other employees or members of the public;
  • When a federal or state statute, regulation, or order requires it for purposes of safety or security;
  • When testing is required according to a federal contract or grant; and
  • When a collective bargaining agreement allows it.

How:

  • Review hiring and drug-testing policies, protocols, and forms to ensure compliance with the law.
  • Train HR personnel, recruiters, managers, or anyone involved in the hiring process on the new law.
  • Monitor for regulations that will provide employers with more information on the law.

Additional Resources:

Bill No. 200625

Effective Immediately: Philadelphia Pandemic Paid Sick Leave Reenacted

Who: Philadelphia employers and employees

When: Effective immediately

What: On March 9, 2022, Philadelphia mayor Jim Kenney amended section 9-4116 for the COVID-19 paid sick leave, requiring employers with 25 or more employees to provide up to 40 hours of leave. The legislation requires employers to provide employees with their regular rate of pay and regular benefits while they make use of the extra PTO.

Per the amendment, employees can request paid time off if they or a family member has been exposed to COVID-19. Employees can also utilize this PTO in order to:

  • Recover from illness related to COVID-19.
  • Receive vaccination against COVID-19.
  • Recover from a COVID-19 vaccination illness or injury.
  • Care for a family member who has fallen ill from COVID-19.
  • To care for children during COVID-19-related school and child care facility closures.

This program extends to qualifying full-time, part-time, and union employees. To qualify for COVID-19-related PTO, employees must spend 51% of their time physically working in Philadelphia or currently telecommute from outside the city as a result of COVID-19.

Employers are required to keep records of at least 2 years for payments made and hours worked in regard to employees who take leave.

The PTO provided by Philadelphia’s COVID-19 sick leave must be used before employees take the additional sick leave provided by their employers.

Employers are required to post the COVID-19 Pandemic Paid Sick Leave Notice to Employees in their workspace and provide electronic copies of the notice to remote employees.

This law went into effect on March 10, 2022, and is currently set to expire on December 23, 2023.

How:

Review and revise your current paid sick leave policies according to the new law.

Additional Resources:

Philadelphia 2021 Public Health Emergency Leave Amendment

COVID-19 Pandemic Paid Sick Leave Notice to Employees

City of Philadelphia COVID-19 Pandemic Paid Sick Leave Resources

Responding to COVID-19 in Pennsylvania

Pennsylvania Department of Health

Pennsylvania Governor Proclamations

Philadelphia Employers May Not Conduct Pre-employment Marijuana Testing

Who: Philadelphia, Pennsylvania employers

When: Effective January 1, 2022

What:

The Philadelphia, Pennsylvania City Council approved an ordinance—Chapter 9-4700 of the Philadelphia Code—which Mayor Jim Kenney signed into law on April 28, 2021. The law goes into effect on January 1, 2022. It prohibits employers, labor organizations, and employment agencies from requiring an applicant to submit to drug testing for marijuana as a condition of employment except as otherwise provided by law.

There are some exceptions:

  • Positions that require a commercial driver license;
  • Positions in law enforcement;
  • Positions that require the employee to supervise or care for children, the disabled, or other vulnerable persons;
  • Positions in which the employee could significantly impact the health or safety of other employees or members of the public;
  • When a federal or state statute, regulation, or order requires it for purposes of safety or security;
  • When testing is required according to a federal contract or grant; and
  • When a collective bargaining agreement allows it.

How:

  • Review hiring and drug-testing policies, protocols, and forms to ensure compliance with the law.
  • Train HR personnel, recruiters, managers, or anyone involved in the hiring process on the new law.
  • Monitor for regulations that will provide employers with more information on the law.

Additional Resources:

Bill No. 200625

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