Posted on June 30, 2022

New Law and Rules Take Effect July 1

The New Mexico Department of Workforce Solutions has published regulations implementing the Healthy Workplaces Act, which goes into effect July 1. The regulations take effect on the same date.

Regulations

Among the points addressed by the regulations are that:

• Employers may limit the year-to-year carryover of unused leave to 64 hours.
• Employers must provide employees with a year-to-date written summary of earned sick leave accrued and used at least once every calendar quarter. This may be done electronically, and may be included on regular pay records or earnings statements provided to employees.
• “Foreseeable leave” for employees’ advance notice of leave means an employee is aware of the need to use leave seven or more days before use.
• Employees must be given 14 days from the date they return to work to provide documentation supporting a leave of more than two consecutive days.

The regulations additionally explain rates of leave pay for tipped and salaried workers and those paid on a task, piece or commission basis. The regulations also establish procedures for filing, reviewing and investigating complaints of employer violations of the law.

The Healthy Workplaces Act

Under the new law, all private employers in New Mexico are required to provide up to 64 hours of earned paid leave annually for reasons specified in the act.

Employer Resources

The department has published FAQs and a guide about the law, as well as a poster employers may use to satisfy their employee notice requirement. 

© 2022 HR 360, Inc.

Posted on June 29, 2022

Law Takes Effect Dec. 31, 2022

Philadelphia has passed an ordinance requiring covered employers to provide covered employees a mass transit and bicycle commuter benefit program, effective Dec. 31, 2022.

Covered Employers

Private employers are covered if they employ 50 or more covered employees for compensation. The law does not apply to government employers.

Covered Employees

The ordinance covers workers who performed an average of at least 30 hours of compensated work per week in Philadelphia, for the same employer, in the previous 12 months.

Commuter Transit Benefit

Covered employers must offer covered employees one or a combination of:

• A pre-tax payroll deduction for mass transit expense or qualified bicycle expenses, consistent with the IRS Code and at benefit levels at least equal to the maximum amount deductible for such programs under the Code; or
• An employer-paid benefit supplying a fare instrument (public transit pass, token, fare card or similar) for employees’ mass transit expenses, at benefit levels at least equal to the maximum amount that may be deducted for such programs pursuant to § 132(f)(2) of the Code.

“Mass transit expense” means expense incurred for a fare instrument or transportation in a commuter highway vehicle as defined in § 132(f)(5)(B) of the Code. “Qualified bicycle expense” means reasonable expenses of employees who regularly use a bicycle to commute, including the purchase, maintenance, repair and storage expenses related to bicycle commuting, as allowed under §§ 132(f)(1)(D) and (f)(5)(F) of the Code.

Employer Guidance

The City of Philadelphia will make compliance information and guidance materials available to covered employers.

Penalties

Employer violations are subject to fines. 

 

© 2022 HR 360, Inc.

Posted on June 28, 2022

Employers May Extend Deadline By Filing IRS Form 5558

Employers with employee benefit plans that operate on a calendar year basis must file their annual reports (Forms 5500) for 2021 with the Department of Labor by Aug. 1, 2022. An employer may extend this deadline by two and one-half months (until Oct. 17 2022) by filing IRS Form 5558 by Aug. 1, 2022.

Typically, the Form 5500 is due by July 31st for calendar year plans, with an extension deadline of Oct. 15th, but if the filing due date falls on a Saturday, Sunday or federal holiday, it may be filed on the next business day.

An employer must file a Form 5500 for each separate employee benefit plan that it maintains, unless a filing exemption applies. Welfare benefit plans are exempt if they are unfunded or fully insured and have fewer than 100 plan participants.

Employers with calendar year plans that do not qualify for the filing exemption should work with their service providers to complete their Form 5500 and file it by Aug. 1, 2022. Employers that need extra time should file Form 5588 by Aug. 1, 2022.

 

© 2022 HR 360, Inc.

Posted on June 23, 2022

The WinCo And Viking Decisions Set Limits On Wage Payment Claims In California

Two federal courts—the U.S. Supreme Court and the 9th Circuit Court of Appeals—recently ruled on cases involving wage claims by employees. These decisions set limits on wage claims in California. Judicial decisions are effective on the day they are issued and control legal interpretation until they are overruled by a higher court or overridden by new legislation. 

Preemployment Drug Tests

On June 13, 2022, the 9th Circuit Court of Appeals held in Johnson v. WinCo Foods, LLC (WinCo) that job applicants are not entitled to compensation for time spent undergoing drug testing as part of their job application process. The WinCo decision was issued on the ground that, under California law, this job applicant was not yet an employee when drug testing took place.

The WinCo decision highlights the importance of the employment relationship between parties in a wage payment claim. It is also a reminder that wage payments should comply with state law once individuals are considered to be employed.

Arbitration of PAGA Claims

In Viking River Cruises, Inc. v. Moriana (Viking), the U.S. Supreme Court held that individual California Private Attorneys General Act (PAGA) claims can be subject to arbitration agreements between employers and employees under the Federal Arbitration Act (FAA).

However, the Viking decision involved a situation where a signed class action waiver existed between Viking and Moriana. The waiver stipulated that the parties could not bring any class, collective or representative PAGA actions in arbitration but required individual claims to be enforced.

The Viking decision has created some uncertainty on the relationship between PAGA claims, FAA arbitration agreements and the categorization of claims as individual or “non-individual.” Employers should continue to monitor legislative and judicial guidance to ensure compliance with both PAGA and the FAA

© 2022 HR 360, Inc.

Posted on June 23, 2022

Employer Retaliation Is Now Prohibited Regardless Of Whether There Is A Public Health Emergency 

On May 31, 2022, Colorado adopted Senate Bill (SB) 22-97 to expand whistleblower protections for workers. Before this law was adopted, state law provided protections for workers who raised a reasonable concern about health or safety related to a public health emergency. SB 22-97 expands the protection to all health and safety concerns, regardless of whether there is a declared public health emergency. SB 22-97 became effective on May 31, 2022.

Prohibited Retaliation

Colorado law prohibits employers from retaliating, discriminating or taking any adverse action against any worker who raises any reasonable concern in good faith about:

• Workplace violations of government health or safety rules; or
• Significant workplace threats to health or safety.

Workers are free to raise their concerns directly to their employers or their employer’s agent, other workers, government agencies or the public if the employer controls the workplace conditions giving rise to the threat or violation.

Unhindered Disclosures

In addition, state law specifically prohibits employers from requiring or attempting to require their employees to sign a contract or agreement that would limit or prevent the employees from disclosing information about the employers’ workplace health and safety practices or hazards.

A similar prohibition applies to workplace policies that would limit or prevent employees from raising concerns on workplace health and safety issues.  

© 2022 HR 360, Inc.

Posted on June 15, 2022

Changes Take Effect Jan. 1, 2023

Illinois has amended the state’s Child Bereavement Act and renamed it the Family Bereavement Leave Act. The amendments provide additional reasons for bereavement leave, including for the deaths of employees’ family members and for reasons relating to failed pregnancies, fertility treatments and adoptions. The changes take effect Jan. 1, 2023.

Covered Employers and Employees

As before the amendments, the law applies to covered employers and eligible employees under the federal Family and Medical Leave Act, which generally applies to private employers with 50 or more employees.

Reasons for Leave

Employees may take up to 10 work days of unpaid bereavement leave to:

• Attend the funeral or alternative to a funeral of a covered family member;
• Make arrangements necessitated by the death of the covered family member;
• Grieve the death of the covered family member; or
• Be absent from work due to a miscarriage, unsuccessful round of intrauterine insemination or of an assisted reproductive technology procedure, a failed adoption match or an adoption that is not finalized because it is contested, a failed surrogacy agreement, a diagnosis that negatively impacts pregnancy or fertility, or a stillbirth.

“Covered family member” means an employee's child, stepchild, spouse, domestic partner, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent or stepparent.

Employers may require reasonable documentation for leave; however, restrictions apply to documentation requirements for leave for reasons in category 4, above.

© 2022 HR 360, Inc.

Posted on June 09, 2022

Change Is a Result of Gas Price Increases

For the first time since 2011, the IRS has made a mid-year adjustment to the optional mileage rate used to calculate the deductible costs of operating an automobile for business and certain other purposes. The agency said the change is in recognition of recent gasoline price increases.

Rate Increase

In Announcement2022-13, released June 9, 2022, the IRS increased the standard mileage rate for the final six months of 2022, starting July 1. During that period, the standard mileage rate for business travel will be 62.5 cents per mile, up four cents from the rate effective at the start of the year.

The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up four cents from the rate effective at the start of 2022.

The rate for charitable organizations is set by statute and will remain unchanged at 14 cents per mile.

Background

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use, in lieu of tracking actual costs. It is based on the fixed and variable costs of operating an automobile, such as fuel, depreciation and insurance. The rate is also used as a benchmark by the federal government and businesses to reimburse their employees for mileage.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

© 2022 HR 360, Inc.

Posted on June 09, 2022

Employers That Own Or License Personal Information Of A Maryland Resident Must Implement Reasonable Security Procedures And Practices

On May 29, 2022, Maryland amended its Personal Information Protection Act (PIPA) to include genetic information in the definition of personal information. The amendments also reduce the data breach notification requirement from 45 to 10 days for businesses that maintain computerized data that includes personal information. The amendments become effective on Oct. 1, 2022.

Personal Information

Under PIPA, personal information includes any of the following when they are not encrypted, redacted or otherwise rendered unreadable or unusable:

• A user name or email address combined with a password or security question and answer that permits access to an individual’s email account;
• An individual’s first name or first initial and last name combined with other data elements; and
• Beginning Oct. 1, 2022, genetic information with respect to an individual.

For a detailed list of what qualifies as personal information under PIPA, employers can review the guidance published by the Maryland Office of the Attorney General.

Protection Requirements

Employers that own or license the personal information of a Maryland resident must implement (and maintain) reasonable security procedures and practices. These procedures and practices must be commensurate with the nature of the personal information and the nature and size of the employer.

Employers that determine a breach of system security has likely compromised personal information must first notify the Office of the Attorney General, then the affected individuals. Beginning Oct. 1, 2022, this notification must take place within 10 days.

 

© 2022 HR 360, Inc.

Posted on June 09, 2022

The Act Regulates Data Collection, Storage And Usage Of Personal Information And Creates New Consumer Privacy Rights 

On May 10, 2022, Connecticut adopted the Data Privacy and Online Monitoring Act (the Act) to regulate the collection, storage and usage of personal information and create new consumer privacy rights. The Act becomes effective July 1, 2023. Specifically, the Act: 

• Establishes a framework for controlling and processing personal data;
• Defines responsibilities and privacy protection standards for data controllers and processors; and
• Grants consumers the right to access, correct, delete and obtain a copy of personal data and opt out of the processing of personal data in certain circumstances. 

Affected Entities

The Act applies to persons or entities that conduct business in Connecticut, or produce products or services that are targeted to Connecticut residents, if they did either of the following during the prior calendar year:

Controlled or processed the personal data of at least 100,000 consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or

Controlled or processed the personal data of at least 25,000 consumers and derived more than 25% of their gross revenue from the sale of personal data.

Impact on Business

Entities subject to the Act should become familiar with their new obligations and prepare to comply by July 1, 2023.

© 2022 HR 360, Inc.

Posted on June 08, 2022

Employer Notice Requirement Takes Effect July 1

The Connecticut Department of Labor has published a model notice of employee rights under the Connecticut Family and Medical Leave Act (CT FMLA) and the Connecticut Paid Leave Act (CT PLA). Employers may use the model notice to satisfy the notice requirement taking effect on July 1, 2022.

Notice Requirement

Beginning July 1, 2022, employers must provide written notice to employees of their right to benefits under the CT PLA and the CT FMLA, both at the time of hiring and annually thereafter.

CT FMLA

The CT FMLA applies to businesses with at least one employee and provides up to 12 weeks of unpaid, job-protected leave during a 12-month period for specified family and medical reasons. It allows workers two extra weeks of leave for incapacity during pregnancy and 26 weeks in one 12-month period to care for a covered service member.

Employees are eligible for CT FMLA after three months of employment.

CT PLA

The CT PLA created an income replacement program for employees unable to work due to CT FMLA reasons and domestic violence-related reasons. Benefits are available for up to 12 weeks yearly (12 days for domestic violence reasons), with an additional two weeks for incapacity or medical treatment during pregnancy.

Employees are eligible for CT PLA benefits if they are currently employed or were employed within the 12 weeks immediately preceding leave. Minimum earnings requirements also apply.

© 2022 HR 360, Inc.

Posted on June 01, 2022

The Bill Also Creates New Employer Notification Requirements

On May 13, 2022, Illinois adopted Senate Bill (SB) 3146 to amend meal break provisions of and create notification requirements under the Illinois One Day Rest In Seven Act (ODRISA). The amendments will become effective on Jan. 1, 2023. 

Meal Breaks

Under ODRISA, every employer that requires employees to work for 7.5 hours must be given at least 20 minutes for a meal period, beginning no later than five hours after the start of the work period. 

The new law requires employers to provide their employees with additional 20-minute meal periods for every additional 4.5 continuous hours of work. The new law also clarifies that meal periods do not include reasonable time spent using restroom facilities.

Civil Penalties

The new law clarifies that meal break requirement violations are subject to civil penalties. The severity of the penalty depends on employer size (measured by the number of employees) and the number of days and weeks of noncompliance.

New Notification Requirements

SB 3146 also requires employers subject to ODRISA to post and maintain a poster that summarizes ODRISA requirements and information on how employees can submit a complaint. The poster must be displayed in an area where other required workplace posters are displayed. SB 3146 charges the Illinois Department of Labor to create this poster.

SB 3146 specifically indicates employers may provide this poster to remote or traveling employees via email or a website that employers regularly use to communicate work-related information.

© 2022 HR 360, Inc.

Posted on June 01, 2022

Employers Need To Accurately Identify And Account For Missed Meal And Rest Periods

On May 23, 2022, in Naranjo v. Spectrum Security Services Inc. (Naranjo), the California Supreme Court unanimously held that meal and rest period premium pay is subject to the same wage statement and final pay requirements as other wages earned by employees. 

Background

Under state law, an employer must compensate an employee with one additional hour of pay for each workday the employee misses a meal or rest break. This premium must be paid at the employee’s regular wage rate.

The dispute in Naranjo arose when Gustavo Naranjo was terminated from his position as a guard at Spectrum Security Services Inc. (Spectrum) after he abandoned his post to take a meal break. Spectrum required employees to remain on duty during meal periods. Naranjo sued, claiming Spectrum violated state wage and hour laws by failing to: 

• Compensate employees with premium pay for missed meal and rest periods;
• Accurately report these premium payments in wage statements; and
• Pay these premiums in a timely manner upon termination. 

Impact on Employers

The Naranjo decision clarifies that employers must ensure that meal and rest period premium pay is accurately and timely included in wage statements and employee final paychecks. 

In practice, this also means that employers in California need to ensure that their payroll, time tracking and wage payment processes accurately identify and account for missed meal and rest periods.

© 2022 HR 360, Inc.

Posted on June 01, 2022

Employers In South Carolina Will No Longer Be Able To Claim This Federal Exemption After Aug. 1, 2024

On May 11, 2022, South Carolina adopted a joint resolution (SJR 533) that will prohibit paying employees with disabilities wages below the minimum wage rate. The resolution becomes effective on Aug. 1, 2024. 

Subminimum Wages for Employees With Disabilities

Under the federal Fair Labor Standards Act (FLSA), employers may pay wages below the current federal minimum wage rate to individuals whose earning or productive capacity is impaired by a physical or mental disability. In order to use this exemption, employers must: 

• Obtain a subminimum wage certificate from the U.S. Department of Labor (DOL) before paying subminimum wages; and
• Ensure that subminimum wages are paid at wage rates commensurate to the workers’ individual productivity.

Employers can find more information on federal requirements for subminimum wages for employees with disabilities on the DOL’s Fact Sheet #39: The Employment of Workers with Disabilities at Subminimum Wages.

State Prohibition

South Carolina does not have a minimum wage law. As a result, the FLSA dictates minimum wage requirements in the state. However, because SJR 533 provides a greater benefit to employees with disabilities, employers in South Carolina will no longer be able to claim the federal minimum wage exemption after Aug. 1, 2024.

Employers in the state should evaluate how this measure may impact their operations and prepare to phase out subminimum wages for employees with disabilities by the deadline.  

© 2022 HR 360, Inc.

Posted on May 31, 2022

Contributions Begin Jan. 1, 2023

The Oregon Employment Department has announced that the contribution rate for the state’s paid family and medical leave program will be 1% when contributions begin Jan. 1, 2023. 

Contribution Rate

Starting Jan. 1, 2023, workers will pay 60% and employers will pay 40% of the combined contribution rate of 1% of employee wages up to $132,900.  (Employers may pay the employee portion as a benefit for their employees.) Contributions are a payroll tax and will be included in combined payroll forms. Employers will deduct employees’ paid leave contributions from paychecks, then report wages and pay both the employee and employer contributions through the combined payroll reporting process.

The Oregon Employment Department is charged with setting the contribution rate for paid family and medical leave every year, up to 1% of employee wages. The department’s announcement said the contribution rate is expected to decrease in the future as the state fund that provides revenue for the program becomes solvent.

Oregon Paid Family and Medical Leave

Oregon paid family and medical leave will provide workers with cash benefits during family, medical or safety-related leave, beginning Sept. 3, 2023. Employers with fewer than 25 employees are exempt from contributing to the program; however, if they do contribute, they may apply for a grant to offset leave costs.

Employees will be eligible for 12 weeks of benefits per year, with an additional two weeks of benefits for pregnancy-related leave. An employee can take a total of 16 weeks a year under the program in any combination of paid and unpaid leave (18 weeks if pregnancy-related leave is also taken). Leave under the program is job-protected. 

© 2022 HR 360, Inc.

Posted on May 26, 2022

Mental Health Conditions Can Be FMLA Serious Health Conditions

The Wage and Hour Division of the U.S. Department of Labor (DOL) has released new resources on workers’ rights to leave for mental health conditions under the federal Family and Medical Leave Act (FMLA). In a press release, the DOL said it published the new guidance in recognition of Mental Health Awareness Month.

New DOL Fact Sheet and FAQs

The new guidance includes:

• Fact Sheet #28O: Mental Health Conditions and the FMLA
• Frequently asked questions (FAQs) on the FMLA’s mental health provisions

Mental Health as a Serious Health Condition

An eligible employee may take FMLA leave for their own serious health condition or to care for a spouse, child or parent because of their serious health condition.

The new resources make clear that mental health conditions are considered serious health conditions under the FMLA if they require inpatient care or continuing treatment by a health care provider, such as an overnight stay in a treatment center for addiction or continuing treatment by a clinical psychologist. Chronic conditions such as anxiety, depression, or dissociative disorders that cause occasional incapacitated periods and require treatment at least twice a year fall under the “continuing treatment” definition.

The FAQs provide additional examples of situations that qualify for FMLA leave, including treatment sessions for anorexia nervosa and caring for an adult child whose mental health condition is a disability under the Americans with Disabilities Act.

© 2022 HR 360, Inc.

Posted on May 24, 2022

Additional Minimum Wage Increases And Relief Package Are Being Considered to Combat Inflation Struggles

California’s minimum wage rate is set to increase to $15 per hour for all workers on Jan. 1, 2023. However, the state is considering additional minimum wage increases and other measures to combat inflation struggles. 

Scheduled Minimum Wage Rate Increase

On Jan. 1, 2023, California’s minimum wage rate will increase to $15 for employers with 25 or fewer employees. The rate is already $15 for employers with 26 or more employees. However, state law allows for an additional increase when inflation in the state is at or above 7%. As a result, California’s governor has announced that the state minimum wage rate is projected to increase to $15.50 per hour for all workers, regardless of employer size.

Ballot Initiative for $18 Minimum Wage Rate

In addition, California has introduced a ballot initiative—the Living Wage Act of 2022—proposing to gradually increase the state minimum wage until it reaches $18 per hour by 2025. According to news sources, proponents of this ballot initiative have already gathered a sufficient number of signatures to allow this proposal to be included in the November 2022 ballot. If the initiative is approved, California’s minimum wage rate will increase to $15 per hour for employers with 25 or fewer employees and $16 per hour for employers with 26 or more employees on Jan. 1, 2023.

Inflation Relief Package

California’s governor is proposing an inflation relief package to address high inflation costs facing state residents. The proposed package would allocate $18.1 billion in the form of tax refunds, emergency rental assistance, utility bill subsidies, free public transportation, health care coverage aid, child care assistance for low-income families and measures to curb or pause increasing fuel costs.

© 2022 HR 360, Inc.

Posted on May 24, 2022

Starting Aug. 5, Tipped Employees Must Earn At Least $135 Per Month

On May 7, 2022, Pennsylvania amended its minimum wage regulations to update the tipped employee exemption and employer requirements for tip pooling. An additional amendment to the state’s overtime laws also clarifies that the regular wage rate for nonexempt salaried employees is the amount of remuneration divided by 40 hours. The amendments will become effective on Aug. 5, 2022. 

Tipped Employees

Pennsylvania’s minimum wage rate is $7.25 per hour. State law allows employers to pay tipped employees a cash wage of $2.83 per hour, as long as the employee’s tips, when added to the cash wage, are at least equal to the state’s minimum wage rate. Currently, tipped employees in Pennsylvania must earn at least $30 per month in tips to qualify for this exemption. Starting Aug. 5, 2022, the monthly tip threshold for tipped employees will be $135.

Tip Pooling

Pennsylvania is incorporating by reference the federal standards related to tip pooling (see 29 CFR 531.54). In addition, affected employees must receive written notice of tip pooling arrangements at or before the time employers make an employment offer or at least one pay period before the tip pooling arrangement takes effect.

Employers that permit patrons to pay tips by credit card or other noncash forms of payment must pay their tipped employees the full amount of the tip authorized by the patron without deducting any processing fees or costs charged to employers.

Employers must also notify patrons of service charges by providing notice in a statement, contract or agreement with the patron and on any menu provided to the patron. The notice must state that the administrative charge is for the administration of the banquet and does not include employee tips.

© 2022 HR 360, Inc.

Posted on May 20, 2022

Employers Must Make Payments to Charities by Jan. 1, 2023

Employee leave donated through employer-based programs to aid victims of the Russian invasion of Ukraine will not be taxed as income of the donor employees, according to recent guidance from the IRS.

Employer-sponsored Leave-based Donation Programs

Employer leave-based donation programs allow employees to forgo vacation, sick or personal leave in exchange for cash payments made by their employers to charitable organizations described in section 170(c) of the IRS Code. The donated leave is taxable to donor employees unless the IRS makes an exception, which it sometimes does in response to specific situations, as it now has for the war in Ukraine.

IRS Notice 2022-28

In recognition of the widespread loss of human life and other losses caused by the Russian invasion of Ukraine this year, the IRS issued Notice 2022-28 on May 19, 2022. The notice states that employers’ cash payments for Ukraine victim relief made in exchange for vacation, sick or personal leave their employees elect to forgo will not be treated as employee wages or compensation, or otherwise included in employees' gross income, if the payments are:

• Made to a Section 170(c) organization to aid victims of the Russian invasion of Ukraine that began Feb. 24, 2022 (what the IRS terms the “further Russian invasion of Ukraine”); and
• Paid to a Section 170(c) organization before January 1, 2023.

Employers should not include the amount of qualified employer leave-based donation payments in Box 1, 3 or 5 of the donor employee’s Form W-2.  

Employees may not claim a charitable contribution deduction under section 170 for the value of the forgone leave; however, employers may deduct donation payments under the rules of section 170 or section 162 if the employer otherwise meets the requirements of either section.

 

© 2022 HR 360, Inc.

Posted on May 18, 2022

Only Certain Industries Affected

Utah has enacted a law limiting employers’ liability for hiring employees with criminal backgrounds for certain jobs. The law became effective May 4, 2022; it expires July 1, 2025.

Liability Limit

The new law bars legal action against employers in specified industries for negligently hiring an employee with a criminal record. For the immunity to apply, the employer must be in an industry or business related to:

• Automotive repair and maintenance;
• Construction;
• Culinary arts;
• Manufacturing;
• Oil, gas or mining;
• Retail sale of goods or services; or
• Transportation of freight, merchandise or other property by a commercial vehicle.

“Employer” means a person, including the state and any political subdivision of the state, that employs one or more employees.

Exceptions

The liability limit does not apply if the employer knew or should have known about the employee’s conviction, and the conviction made the employee’s hiring or continued employment illegal. The immunity also doesn’t cover instances where the hiring constituted willful misconduct or gross negligence. Additionally, the law does not apply in cases of misuse of funds or property, if the employee had a prior conviction for fraud or misuse of funds and it was foreseeable that the position would involve managing funds or property.

© 2022 HR 360, Inc.

Posted on May 17, 2022

Employers May Choose to Pay Employee Wages Through Deposit or Payroll Card (in Some Cases) at Their Discretion

On May 5, 2022, Oklahoma adopted senate bill (SB) 1345 to allow employers the option of paying employee wages through payroll cards. SB 1345 becomes effective on Nov. 1, 2022.

State Wage Payment Requirements

Oklahoma law requires employers to pay wages in lawful U.S. currency or through electronic means. Every employer-issued check, cashier’s check, draft, time check, store order or scrip must be redeemable on demand and at face value (with no discount or fee to the employee).

Employers must reimburse their employees for any fees or costs they incur because of dishonored employer-issued checks within 14 days of receiving notice that the employer’s bank refused to honor the check.

SB 1345 Provisions

The new law allows employers in the state to pay all wages due to their employees on payday through:

• Deposit at predesignated financial institutions of their employees’ choice; or
• A payroll card account if employees do not consent or designate a financial institution for deposit.

SB 1345 specifies that employers may opt to pay employee wages through deposit at their discretion. 

Under this law, “financial institution” means a bank, savings bank, savings and loan association, or credit union whose deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration or any successor institution. “Payroll card” means a card or other device used by an employee to access wages from a payroll card account.   

© 2022 HR 360, Inc.