Posted on December 02, 2020

IRS Letter Responds to Employee’s Preference for Driving During Pandemic

In a recent information letter concerning an employee who, due to COVID-19, was driving to work rather than using public transportation, the IRS said employees may apply unused commuter transit benefit amounts to parking benefits in certain circumstances. Specifically, the IRS letter states an employee “is not precluded from rolling over unused transit benefit amounts through the use of another qualified transportation fringe,” such as qualified parking, if the other fringe:

• Is offered by the employer’s plan; and
• Does not exceed the maximum monthly amount for the respective qualified transportation fringe benefit.

The letter sets forth the following additional limitations on such use:

• Amounts set aside under a compensation reduction agreement are not refundable other than by payment of another qualified transportation fringe under the employer’s plan; and
• The employee must have made a valid compensation reduction election (and not have been terminated) to use compensation reduction amounts for commuting expenses in future months.

© 2020 HR 360, Inc.

Posted on December 02, 2020

Regulations Take Effect Jan. 1 for Some Employers

The Colorado Department of Labor and Employment has adopted regulations for the state’s new paid sick leave law, the Healthy Families and Workplaces Act. A portion of the law took effect over the summer, expanding leave under the federal Families First Coronavirus Response Act. The law’s main paid sick leave provisions and the regulations take effect for employers with 16 or more employees on Jan. 1, 2021, and for all employers Jan. 1, 2022.

While much of the material in the regulations was provided by the Department of Labor and Employment in earlier Interpretive Notice & Formal Opinions, the regulations include new information, such as:  

• Employers should use federal Family and Medical Leave Act counting rules to determine whether they have 16 employees;
• Accrual of paid sick leave begins on the first day of employment or Jan. 1, 2021, whichever is later;
• Required elements of the written statement employers must give employees if they adopt an alternate leave policy;
• Documentation employers may request of employees for leave lasting four days or more; and
• Employees’ right to information about their amount of used and available leave.

© 2020 HR 360, Inc.

Posted on November 10, 2020

Florida Will See Two Minimum Wage Rate Increases in 2021

On Nov. 3, 2020, voters in Florida approved a constitutional amendment that will raise the state minimum wage rate each year until it reaches $15 per hour in 2026. Beginning in 2027, the state minimum wage rate will be adjusted annually by Florida’s Department of Economic Opportunity. 

The amendment did not change the tip credit Florida allows employers to deduct from their tipped employees. Since this credit will remain at $3.02, projected minimum wage rates for tipped employees are also included in the table below. 

Effective Date	New Minimum Wage Rate	Tipped Employee Wage
Jan. 1, 2021	$8.65 per hour	$5.63 per hour
Sept. 30, 2021	$10 per hour	$6.98 per hour
Sept. 30, 2022	$11 per hour	$7.98 per hour
Sept. 30, 2023	$12 per hour	$8.98 per hour
Sept. 30, 2024	$13 per hour	$9.98 per hour
Sept. 30, 2025	$14 per hour	$10.98 per hour
Sept. 30, 2026	$15 per hour	$11.98 per hour
Sept. 30, 2027	TBA	TBA

Next Steps for Employers 

Employers in Florida will need to adjust their payroll procedures to accommodate two minimum wage increases in 2021, the first on January 1, the second on September 30. 

Employers can also use this information to plan for annual minimum wage increases through 2026. 

© 2020 HR 360, Inc.

Posted on November 09, 2020

Employer and Employee Contributions Begin Jan. 1, 2023

On Nov. 3, 2020, Colorado voters passed Proposition 118, creating a paid family and medical leave (PFML) insurance program for workers in the state. The new program covers virtually all employers (including state but not federal government employers) and applies to workers who have earned at least $2,500 during a base period.

The program will be funded by premiums of 0.9% of an employee’s wages, shared evenly between employers and workers, and remitted by the employer beginning Jan. 1, 2023, to a newly created state Division of Family and Medical Leave Insurance. Employers with fewer than 10 employees are not required to contribute to PFML premiums.

Under the measure, paid leave becomes available to employees Jan. 1, 2024, for the following purposes:

• To care for a new child during the first year after the child’s birth, adoption or foster care placement;
• To care for a family member with a serious health condition;
• For the worker’s own serious health condition;
• For a qualifying military exigency; or
• Because the worker has a need for safe leave.

Employers with approved private plans may opt out of the program.

 

© 2020 HR 360, Inc.

Posted on October 28, 2020

Maximum Monthly Amounts Remain at $270

The IRS has released Revenue Procedure 2020-45, which includes cost-of-living adjustments for employee qualified transportation fringe benefits for the 2021 taxable year, along with annually adjusted numbers for 2021 for a number of other tax provisions. The combined monthly limit for transportation in a commuter highway vehicle and any transit pass remains unchanged from 2020 at $270. The monthly limit in 2021 for qualified parking is also unchanged from 2020, also at $270.

 

© 2020 HR 360, Inc.

Posted on October 27, 2020

Many Employee Contribution Limits Remain Unchanged

The IRS has announced the cost-of-living adjustments for 2021 that affect amounts employees can contribute to 401(k) plans and IRAs. The following amounts remain unchanged for 2021:

• The employee contribution limit for 401(k) plans will remain $19,500. The catch-up contribution limit for employees aged 50 and over also remains unchanged at $6,500.
• The employee contribution limit for IRAs will remain $6,000. The catch-up contribution limit for employees aged 50 and over also remains unchanged, at $1,000.
• The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans will remain $13,500.

Click here for more information.

© 2020 HR 360, Inc.

Posted on October 23, 2020

The New Standard Applies to All Employers Covered by the State OSHA Program

On Oct. 14, 2020, the Michigan Occupational Safety and Health Administration (MIOSHA) adopted an emergency COVID-19 workplace safety standard (the Standard) for all businesses covered by the OSHA-approved state program. 

MIOSHA adopted the Standard after the Michigan Supreme Court declared that Governor Whitmer’s emergency COVID-19 executive order was unconstitutional. The Standard incorporates the Governor’s COVID-19 executive order and establishes requirements for employers to control, prevent and mitigate the spread of COVID-19 among employees. 

The Standard also includes industry-specific requirements for:

• Construction
• Manufacturing
• Retail
• Restaurants and bars
• Healthcare
• In-home services
• Personal-care services
• Public accommodations
• Sports and exercise facilities
• Meat and poultry processing
• Casinos

The Standard became effective Oct. 14, 2020, and will remain in effect for six months. 

Employers subject to MIOSHA regulations should become familiar with this new Standard and implement workplace safety measures specific to their industries. Employers should also continue to monitor the MIOSHA and state COVID-19 websites for updates on workplace safety guidance and requirements. 

© 2020 HR 360, Inc.

Posted on October 22, 2020

Borrowers and Lenders May Rely on the Guidance Provided in the New FAQs

On Oct. 13, 2020, the Small Business Administration (SBA) published a new set of answers to frequently asked questions about the forgiveness of loans issued under the federal Paycheck Protection Program (PPP). 

The PPP was created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) as a response to the current COVID-19 pandemic and was designed to provide a direct incentive for employers to keep their workers on the payroll. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

By law, the PPP closed on Aug. 8, 2020. The PPP operated by issuing loans to small employers. These PPP loans may be forgiven if the employee retention and fund use criteria for these loans are met. 

The SBA, in consultation with the Department of the Treasury, is providing this guidance to address borrower and lender questions concerning forgiveness of PPP loans, as provided for under section 1106 of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act (Flexibility Act).  

Employers that received loans through the PPP should review these FAQs carefully as they submit their applications for forgiveness of these loans. PPP loans will be fully forgiven if the funds were used for payroll costs, interest on mortgages, rent and utilities.  

© 2020 HR 360, Inc.

Posted on October 22, 2020

New Regulations Would Increase the Agency's Authority to Enforce COVID-19 Safety Standards

On Sept. 17, 2020, the California Occupational Safety and Health Standards Board (the Board), part of the California Division of Occupational Safety and Health (Cal/OSHA), approved a petition to draft and submit for review a new COVID-19 emergency workplace safety standard (the Standard). The Standard would protect California workers not covered by the Aerosol Transmissible Disease standards (Section 5199) from exposure to COVID-19.  

Petition 583

Petition No. 583 requests that the new workplace safety regulation:

• Establish a framework parallel to Cal/OSHA’s Injury Illness Prevention Program (IIPP), which requires a written employee protection plan; 
• Create procedures to identify and evaluate COVID-19 hazards and exposure risks, as well as procedures to control the hazard of exposure;
• Create procedures to respond to employees exposed to or diagnosed with COVID-19 and employees with COVID-19 symptoms; and 
• Establish a job hazard analysis to track modes of COVID-19 workplace transmission and adopt preventive measures to minimize risk.

Next Steps for Employers

Cal/OSHA and the Board will work together to submit a proposal for an emergency standard that covers all employees not covered by Section 5199. The proposal will be considered at the Nov. 19 Board meeting. 

The Board has expressed its opinion that the new regulations would facilitate compliance by providing clearer standards that employers and employees must follow. New regulations would also increase Cal/OSHA’s authority to enforce COVID-19 workplace safety standards.  

© 2020 HR 360, Inc.

Posted on October 22, 2020

Benefit Becomes Available Jan. 1

New York state has published frequently asked questions (FAQs) about its new paid sick leave (PSL) law, covering 11 different topic areas. Under the law, employees of covered employers will be able to take 40 - 56 hours of leave, depending on employer size, beginning Jan. 1, 2021. Employees began accruing leave on Sept. 30, 2020.

Answers about PSL use when an employer is closed due to a public health emergency (varies by circumstance) and telecommuting (can be offered as an alternative to using PSL), may be of special interest to employers during the COVID-19 pandemic. Workers are covered by the PSL law when physically working in New York, according to the FAQs, even if the employer is located somewhere else.

The FAQs were published on the state’s new PSL website, which includes additional employer resources.

© 2020 HR 360, Inc.

Posted on October 20, 2020

The New Rate Becomes Effective Jan. 1, 2021 

Florida has published new minimum wage posters announcing an $8.65 per hour minimum wage rate for 2021. Florida’s minimum wage rate is adjusted annually to reflect changes in the cost of living. However, employers should be mindful of local laws, ordinances and any rule or regulation that may increase an employee’s minimum wage rate.

Florida employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

Florida allows employers to pay their tipped employees a minimum wage rate of at least $5.63 per hour. 

A tipped employee is an employee who engages in an occupation where he or she customarily and regularly receives more than $30 per month in tips.  Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate. 

Posting Requirement

Employers must display the 2021 minimum wage poster in a location where employees can easily see it. The Florida 2021 minimum wage poster is available in English, Spanish and Creole.

© 2020 HR 360, Inc.

Posted on October 16, 2020

Amendments Take Effect Jan. 1

California has expanded its employee leave protections for victims of domestic violence, sexual assault and stalking to apply to a broader category of victims, in amendments that take effect Jan. 1, 2021.

All employers will be subject to the prohibition on discharge, discrimination or retaliation against employees who are victims of crime or abuse and take time off time off from work to seek relief to help ensure the health, safety, or welfare of the victim or victim’s child. (Currently, this protection extends only to employees who are victims of domestic violence, sexual assault, or stalking.)

In addition, the amendments expand the reach of the current law preventing employers with more than 25 employees from discharging, or discriminating or retaliating against, employees who take time off to seek specified services as a result of being a victim of domestic violence, sexual assault or stalking. The services include medical attention and psychological counseling, among others. Under the new amendments, these protections apply more generally to employees who are victims of crime or abuse.

The amendments define victim to mean the victim of crime or abuse that causes physical injury, or mental injury and the threat of physical injury. Victims also include employees whose immediate family member was killed in a crime. The protections apply regardless of whether anyone is arrested, prosecuted or convicted for the crime.

© 2020 HR 360, Inc.

Posted on October 15, 2020

The New Rate Becomes Effective Jan. 1, 2021 

Ohio has published a new minimum wage poster announcing an $8.80 minimum wage rate for 2021. Ohio’s minimum wage rate is adjusted annually to reflect changes in the cost of living. The state minimum wage rate applies to employers who gross $323,000 or more per year. 

Employers should be mindful of local laws, ordinances and any rule or regulation that may increase an employee’s minimum wage rate. Employees not subject to the state minimum wage rate must pay their employees a wage rate that is at least equal to the federal minimum wage rate of $7.25. 

Tipped Employees

Ohio allows employers to pay their tipped employees a minimum wage rate of at least $4.40 per hour. 

A tipped employee is an employee who engages in an occupation where he or she customarily and regularly receives more than $30 per month in tips.  Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate. 

Next Steps for Employers 

Ohio employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

© 2020 HR 360, Inc.

Posted on October 13, 2020

The New Rate Becomes Effective Jan. 1

Washington state has announced a $13.69 minimum wage rate for 2021. Washington’s minimum wage rate is adjusted annually to reflect changes in the cost of living. However, employers should be mindful of local laws, ordinances and any rule or regulation that may increase an employee’s minimum wage rate.  

• Tipped Employees: Although federal law allows for a lower minimum wage rate for tipped employees under certain conditions, Washington does not consider gratuities as part of an employee’s wages. Therefore, under state law, employers must ensure that their tipped employees receive the applicable minimum wage rate.
• Youth Employment: State law allows employers to pay workers who are 14 or 15 years of age 85% of the state minimum wage rate. For 2021, the youth employment rate will be $11.64 per hour.  
• Required Poster: Washington employers must display a minimum wage poster to notify their employees of their rights under state law. The Washington Department of Labor and Industry has published an updated minimum wage model poster employers can use to satisfy the poster requirement for 2021. 

Next Steps for Employers  

Washington employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

© 2020 HR 360, Inc.

Posted on October 13, 2020

The New Law Becomes Effective Jan. 1, 2021 

• Human resource employees who work for businesses that employ minors; and 
• Adult supervisors who are in direct contact with, and supervise, minors (for purposes of reporting sexual abuse). 

Mandatory Reporters

California law requires mandatory reporters to report child abuse or neglect. Reporting duties are triggered when mandatory reporters, during the scope of their employment, have knowledge of or reasonably suspect that a child is the victim of abuse or neglect. 

Failing to report child abuse or neglect as a mandated reporter is a crime punishable by a fine of $1,000, imprisonment for up to six months, or both. 

Required Training

Covered employers must provide these new classes of mandatory reporter employees with training to identify and report child abuse and neglect. They can satisfy this requirement by having their employees complete the general online training for mandated reporters offered by the Office of Child Abuse Prevention, part of the California Department of Social Services.

However, the absence of training will not excuse mandatory reporters from their duty to report child abuse and neglect. 

© 2020 HR 360, Inc.

Posted on October 09, 2020

New Employees Who Already Received the Required Training May Be Placed on Two-Year Schedule from Date of Last Training

Effective Sept. 28, 2020, California has amended its law that requires employers with five or more employees to provide sexual harassment prevention training to all new employees within six month of assuming a new position. 

Under the changes, an employee who has received the required training within the prior two years from a current, prior, alternate or a joint employer is not required to receive the training again until two years after the date of the prior training, as long as certain other requirements are met. These requirements include providing the employee with a copy of the employer’s written anti-harassment policy, obtaining acknowledgment of receipt from the employee, and placing the employee on a training schedule that ensures he or she receives the training two years after the prior training date. 

© 2020 HR 360, Inc.

Posted on October 09, 2020

Renewal Extends the Duration of Certain Coverage Mandates Related to the COVID-19 Pandemic

On Oct. 2, 2020, the Department of Health and Human Services (HHS) renewed its determination that a public health emergency exists as a result of the coronavirus (COVID-19) pandemic, effective Oct. 23, 2020. This public health emergency, originally declared to have existed as of Jan. 27, 2020, was previously renewed on April 21, 2020, and July 23, 2020.

This renewal extends the duration of a number of requirements related to the COVID-19 pandemic, including requirements under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief and Economic Security (CARES) Act. Among other things, these laws require group health plans to cover certain COVID-19-related diagnostic and preventive health services without cost-sharing or other barriers. These requirements are generally effective from March 18, 2020, through the duration of the HHS-declared public health emergency.

In general, a declared public health emergency lasts for 90 days or until HHS declares that it no longer exists, whichever occurs first. HHS may extend the public health emergency declaration for additional 90-day periods for as long as the public health emergency continues to exist.

Note that this public health emergency declaration is separate from the COVID-19 National Emergency declared by the President, which impacts the end of the “outbreak period” (beginning March 1, 2020) for deadlines related to HIPAA special enrollment, COBRA continuation coverage and other employee benefit plan deadlines.

 

© 2020 HR 360, Inc.

Posted on October 06, 2020

The New FAQs Clarify When Employers Must Report COVID-19 Hospitalizations and Fatalities

The Occupational Safety and Health Administration (OSHA) has published two additional answers to its list of COVID-19 frequently asked questions (FAQs). The new answers clarify when employers must report COVID-19 in-patient hospitalizations and fatalities.

Reporting Hospitalizations

OSHA requires employers to report in-patient hospitalizations only if the hospitalization occurs within 24 hours of an exposure to COVID-19 in the workplace. As a result, employers must report COVID-19 hospitalizations only if the hospitalizations are: 

• For in-patient treatment; and 
• The result of a work-related case of COVID-19.  

The report must be submitted within 24 hours of the time the employer determines there was an in-patient hospitalization caused by a COVID-19 case. Hospitalization for diagnostic testing or observation only is not "in-patient" hospitalization.

Reporting Fatalities

OSHA requires employers to report fatalities that occur within 30 days of an exposure to SARS-CoV-2 in the workplace. 

Fatality reports must be submitted within eight hours of the time the employer learns that the fatality took place and that it was due to a work-related exposure.

Recording Requirements 

These FAQs address only reporting requirements for COVID-19. Employers can review their COVID-19 recording requirements on OSHA's website. 

© 2020 HR 360, Inc.

Posted on October 06, 2020

The State Salary Level Will Reach $875 per week by 2022

On Oct. 2, 2020, the Pennsylvania Department of Labor and Industry (DLI) announced a new overtime rule that increases the salary threshold that must be satisfied for executive, administrative and professional (EAP) employees to qualify for an overtime wage payment exemption. 

The EAP Exemptions

The Pennsylvania Minimum Wage Act provides employers with an exemption from overtime pay for EAP employees. To qualify for these exemptions, employees must meet certain tests regarding their salary level and job duties.

Effective Oct. 3, 2020, the minimum salary required for the state Wage Act EAP overtime exemptions will match the level required for EAP overtime exemptions under the federal Fair Labor Standards Act: $684 per week ($35,568 annually). The state salary levels will then increase to: 

• $780 per week ($40,560 annually) on Oct. 3, 2021; and
• $875 per week ($45,500 annually) on Oct. 3, 2022.

Starting in 2023, the salary level will adjust automatically every three years.

The new overtime rule allows up to 10 percent of these thresholds to be satisfied by nondiscretionary bonuses, incentives and commissions that are paid annually, quarterly or more frequently.

Complying with Overtime Exemptions

Being paid a salary, on its own, does not automatically qualify employees for an EAP exemption. Employees must satisfy every term and condition of an applicable exemption. Similarly, actual job responsibilities, rather than job title, determine an employee's exemption status. 

© 2020 HR 360, Inc.

Posted on October 01, 2020

Hazardous Heat Exposure Can Occur Indoors or Outdoors Under the Right Conditions

OSHA has also issued guidance on safety protocols employees can use when wearing cloth face coverings in hot, humid indoor and outdoor work conditions. Wearing face coverings has become necessary in multiple industries because of the current COVID-19 pandemic. According to OSHA, hot and humid working conditions can pose a respiratory hazard to workers and account for 50 to 70% of all outdoor fatalities in the workplace. Hazardous heat exposure can occur indoors or outdoors, and can occur during any season if the conditions are right.

OSHA’s guidance provides best practices to reduce the risk of heat-related illness or injuries while wearing cloth face coverings, including:  

• Allowing employees to use personal cooling systems; 
• Considering alternatives to wearing face coverings;
• Monitoring weather conditions and scheduling strenuous activities during cooler parts of the day; and
• Continuing to use administrative and engineering safety controls in addition to cloth face coverings.  

Employers should train their employees on how to prevent heat-related illnesses and stay safe during the COVID-19 pandemic. Employers should also consider making the indoor and outdoor best practices publications available to their employees. 

© 2020 HR 360, Inc.