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Updated: June 30, 2020
Seems like July is the new January when it comes to rolling out employment laws, because many new and updated laws and regulations are going live this summer. Some expand upon or amend previous regulations and others create substantial new penalties if a business falls out of compliance. We’ve listed all the July 1, 2020 changes to payroll and HR laws by state below (plus some federal updates), so you can quickly find the ones that apply to your business. We’ve also included a few that go into effect later this summer so you can get ready now.
Remember, a whole host of new minimum wage laws also went into effect on July 1.
Law | Summary | Effective date |
Employee Benefits Security Administration Final Rule | The final rule establishes a new, voluntary safe harbor for retirement plan administrators who want to use electronic media to provide covered documents to covered individuals — rather than sending paper documents through the mail. The law allows two optional methods for electronic delivery:
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July 27, 2020 |
Wage and Hour Division Final Rule | Allows employers to pay bonuses or other incentive-based pay to salaried, non-exempt employees whose hours vary from week to week. The final rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method under the Fair Labor Standards Act (FLSA). | August 27, 2020 |
This July, there are notable employment law changes in eight states: California, Colorado, Illinois, Iowa, New Jersey, Oregon, Virginia, and Washington, DC. If you live in a different state, it’s possible there are additional laws or regulations that have been updated, so you may want to check with an employment law expert if you have any questions.
Law | Summary | Effective date |
Expansion of Paid Family Leave benefits | Paid Family Leave benefits are extended to a maximum of eight (8) weeks. Employees are eligible for these benefits from California’s state disability insurance (SDI) program:
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July 1, 2020 |
Law | Summary | Effective date |
Colorado Overtime and Minimum Pay and Standards Order #36 Rules | The Colorado Department of Labor and Employment (CDLE) will raise the overtime exempt employee minimum salary threshold to $35,568.
Exemptions include:
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July 15, 2020 |
Law | Summary | Effective date |
Illinois Workplace Transparency Law | The original law went into effect on January 1, 2020, and it prohibits any “contract, agreement, clause, covenant, waiver or other documents” from restricting an employee from reporting allegations of unlawful conduct to federal, state, or local officials for investigation. In other words, employers may not compel an employee to keep silent about alleged unlawful employment practices in the workplace.
Beginning July 1, 2020, and every July 1 after that, employers that have had at least one (1) adverse judgment or ruling against it in the preceding calendar year must disclose it to the Illinois Department of Human Rights including the total number of final, non-appealable judgments or final, non-appealable administrative rulings entered against the employer in which there was a finding of sexual harassment or unlawful discrimination. |
July 1, 2020 |
Illinois Hotel and Casino Safety Act | The Act requires that downstate hotel and casino employers provide employees working alone in guest rooms, restrooms, or the casino floor with panic buttons that summon help to the employee’s location when the employee “reasonably believes that an ongoing crime, sexual harassment, sexual assault, or other emergency is occurring in the employee’s presence.” These devices must be provided to the employees at no cost.
The Act also requires hotels and casinos to create and implement a written sexual harassment policy to protect the employees against sexual assault and sexual harassment by guests. |
July 1, 2020 |
Chicago Fair Workweek Ordinance — Predictive Scheduling | Predictive scheduling is giving advance notice of schedules to employees. It’s designed to eliminate “on-call” scheduling, posting and changing schedules without advance notice, or scheduling back-to-back closing and opening shifts.
Chicago’s Fair Workweek Ordinance requires employers to post schedules 10 days in advance for employees paid less than $26/hour or $50,000/year.
The law applies to businesses in building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services AND with at least 100 employees. Nonprofit organizations with more than 250 employees are required to comply and restaurants with at least 30 locations and 250 employees are covered by the law.
Covered employees must be given:
Note: the Chicago City Council passed an anti-retaliation ordinance that prohibits adverse actions against employees unable to work for reasons due to COVID-19. |
July 1, 2020 |
Chicago Paid Sick Leave Ordinance | The Paid Sick Leave ordinance mandates that all Chicago businesses provide paid sick leave to employees. Any employee who works at least 80 hours for an employer in Chicago within any 120-day period is covered by the ordinance and is eligible for paid sick leave. Employees begin to accrue paid sick leave on the first calendar day after they begin their employment. For every 40 hours worked, employees accrue one (1) hour of paid sick leave.
Employees can use the Paid Sick Leave they’ve earned when they or a family member is sick, injured, receiving medical care, or is a victim of domestic violence or a sex offense. They can also use Paid Sick Leave when their place of work has been ordered to close due to a public health emergency, or they need to care for a child whose school has been ordered to close due to a public health emergency.
Applies to all employers with at least one covered employee, whether or not the employer has a Chicago worksite.
Hours worked outside Chicago do not count towards the accrual of Paid Sick Leave.
Note: An employee who receives a salary and is exempt from overtime accrues one hour of Paid Sick Leave for each week of employment unless the salaried position is for an amount different from 40 hours worked per week, in which case the rate of accrual shall be 1 hour for every 40 hours of salaried work.
Employers should keep track of hours worked by non-salaried employees in order to ensure proper accrual.
Records related to paid sick leave usage, rates of pay, hours worked and wage deductions must be kept for at least five (5) years, and made available for inspection upon request by the Department of Business Affairs and Consumer Protection.
Employers with tipped and non-tipped employees must identify whether an employee is tipped, non-tipped, or performs duties of tipped and non-tipped positions in their records. |
July 1, 2020 |
Law | Summary | Effective date |
Waterloo, Iowa: Ban the Box Ordinance | Covered employers may not inquire about an applicant’s criminal records prior to issuing a conditional offer of employment, unless criminal history is voluntarily disclosed by the applicant before an offer.
Employers also are prohibited from making any employment decision based on:
In addition, an employer may only rescind a conditional offer of employment based on a criminal record if they have a legitimate business reason which, according to the ordinance, means:
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July 1, 2020 |
Law | Summary | Effective date |
Expansion of Insurance Benefits: New Jersey Family Leave Insurance (NJFLI) | Paid leave benefits increase to 12 weeks for consecutive leave within a 12-month period. For intermittent leave, state insurance benefits will increase from 42 to 56 days in a 12-month period. The cap on the weekly benefit amount has been raised to 85% (up from 66.6%) with a weekly maximum benefit of $859.00 per week in 2020.
Employees who are covered by family leave insurance can apply for benefits to:
Additional updates:
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July 1, 2020 |
Law | Summary | Effective date |
Oregon Predictive Scheduling | The law requires employers to provide written work schedules at least 14 days in advance. The law also requires employers to provide a good faith estimate of hours upon hiring and a rest period of at least 10 hours between shifts (or time-and-a-half pay if the employee agrees to forgo the rest period). | July 1, 2020 |
Law | Summary | Effective date |
Virginia Presumption of employee status and misclassification of employees | Any individual who performs services for payment is presumed to be an employee unless the business can prove the individual is an independent contractor based on IRS guidelines.
Prohibits employers from classifying workers as “tipped employees” if the worker is prohibited from soliciting tips. The guidance suggests that the new misclassification laws create a private cause of action for individuals to bring claims against employers.
Note: Some provisions of the law do not take effect until January 1, 2021 |
July 1, 2020 |
Expansion of Discrimination and the Virginia Human Rights Act: the Virginia Values Act | Prohibits discrimination in public employment, public contracting, public accommodation, apprenticeship programs, housing, banking, and insurance on the basis of sexual orientation, gender identity, and veteran status.
The update adds new language to include that discrimination on the basis of race includes discrimination because of an individual’s hair style, type, or texture.
Before these updates, the Virginia Human Rights Act mainly applied to employers with more than five and fewer than 15 employees. However, the new rules apply to all employers with 15 or more employees. |
July 1, 2020 |
Accommodations for pregnancy, childbirth, lactation and the Virginia Values Act | The law requires employers to “make reasonable accommodation to the known limitations of a person related to pregnancy, childbirth, or related medical conditions, unless the employer can demonstrate that the accommodation would impose an undue hardship on the employer.” Employers of five (5) or more employees must comply. Examples of accommodations include more frequent or longer breaks.
The law prohibits employers from retaliating against employees for requesting or using a reasonable accommodation for pregnancy or related conditions. Employers must post information regarding these rights:
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July 1, 2020 |
Virginia prohibition of low-wage non-compete agreements | Bans all non-competition agreements that are entered into on or after July 1, 2020 applicable to “low-wage employees — those who earn less than the average weekly wage of the Commonwealth (currently estimated at $1,107/week) and independent contractors who are compensated for services at an hourly rate less than the median hourly wage for all occupations as set by the U.S. Bureau of Labor Statistics ($19.63 per hour as of 2019).
This does not include workers who are predominantly paid through bonuses and commissions, as opposed to a base salary or hourly rate. |
July 1, 2020 |
Virginia penalties for non-payment of wages | Increases the potential penalties that may be imposed on employers who fail to pay employee wages properly. The law allows the employee to sue for the amount of wages due, plus 8% interest and reasonable attorney’s fees.
Note: if the employer knowingly fails to pay the employee correctly, the law allows for recovery of three times the amount of wages owed, plus 8% interest and fees.
The Virginia Commissioner of Labor and Industry is also authorized to investigate and institute proceedings, including on behalf of multiple employees. |
July 1, 2020 |
Virginia Wage transparency protection from retaliation | Employees are protected when they inquire about, discuss or disclose information about their own or any other employee’s wages, or when they file a complaint with the Department of Labor alleging a violation of this law.
The new law does not apply to “employees who have access to the compensation information of other employees or applicants… as part of their essential job functions who disclose the pay of other employees or applicants to individuals who do not otherwise have access to compensation information,” unless that disclosure is in response to a formal complaint or charge, made in connection with an investigation, proceeding, hearing or action, or is consistent with a legal duty to disclose the information. |
July 1, 2020 |
Law | Summary | Effective date |
Universal Paid Leave Amendment Act | The Act provides government-administered paid leave to DC employees including:
Employers must maintain all records relating to employee leave (including payroll records and notices provided) for a minimum of three (3) years.
Wherever possible, employees must provide ten (10) days of advance written notice to their employers of the need to take paid leave. If they have a qualifying event, employees may file a claim for paid leave benefits with the Department of Employment Services. |
July 1, 2020 |
Most jurisdictions have done a good job communicating these updates to employers, but if you’re feeling a little overwhelmed by it all, reach out to your HR or payroll service provider to see how they can help make sure you’re getting right. For more useful guides, check out our Payroll 101 resources or our informative articles about HR for small businesses.
Every effort has been made to provide the most up-to-date and accurate information. This article will be updated as additional updates are made available.
This information is not to be taken as tax, legal, benefits, or HR advice. Since rules and regulations change over time and can vary by location, please consult a lawyer or HR expert for specific guidance for your business.
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