On Dec. 6, 2023, the U.S. Equal Employment Opportunity Commission (EEOC) published its regulatory agenda for the first time in two years. This is likely due to the recent confirmation of the agency’s newest commissioner Kalpana Kotagal, whose appointment gave Democrats the majority on the EEOC’s five-member commission for the first time during the Biden administration, breaking the panel’s partisan gridlock. The U.S. Department of Labor (DOL) also released its regulatory agenda on Dec. 6. These agendas were part of the Fall 2023 Unified Agenda released by the White House, outlining President Joe Biden’s policy plans for federal agencies.
The EEOC’s regulatory agenda highlights its primary goals for 2024, including finalizing agency regulations to implement the Pregnant Workers Fairness Act. The agency indicated that it plans to implement this act by Dec. 29, 2023.
The DOL has also identified significant regulatory changes, including its final rules on overtime exemptions, independent contractors, heat illness prevention and mental health parity in health plans. On Aug. 30, 2023, the DOL published a proposed overtime rule to increase the salary level for white-collar exemptions under the Fair Labor Standards Act. The proposal also included mechanisms that would allow the agency to automatically update the white-collar salary level thresholds every three years without having to rely on the rulemaking process. The deadline for submitting comments on the proposed rule was November 7, 2023. According to the DOL’s recently published regulatory agenda, the final overtime rule will be issued in April 2024.However, these projections are subject to change.
Federal agencies are expected to finalize their highest-priority rules between April and June of next year. Potentially impacted employers will want to follow the EEOC and DOL rulemaking process closely. However, employers are not obligated to make changes until the DOL and EEOC’s proposed regulations are finalized.
On Dec. 20, 2023, the IRS issued Notice 2024-2, providing guidance in the form of questions and answers with respect to various provisions of the legislation known as the “SECURE 2.0” Act.
The Consolidated Appropriations Act of 2023 was signed on Dec. 29, 2022, which is an omnibus bill that includes the SECURE 2.0 legislation, referred to as such because it builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The legislation is intended to increase employees’ retirement savings and makes numerous important changes that employers should be aware of. A section-by-section summary of the legislation can be found here.
Under Section 501 of SECURE 2.0, the plan amendment deadline for SECURE Act and SECURE 2.0 Act provisions is the last day of the first plan year beginning or after Jan. 1, 2025 (or Jan. 1, 2027, in the case of certain collectively bargained or governmental plans). The new guidance extends the plan amendment deadlines under Section 501.
In addition to extending plan amendment deadlines under Section 501, Notice 2024-2 addresses issues under the following sections of the SECURE 2.0 Act:
The Treasury Department and the IRS invite comments and suggestions on the guidance, which should be submitted on or before Feb. 20, 2024.State Compliance Updates
The following changes to Colorado employment laws apply to employers of all sizes as of January 1, 2024.
The state now requires employers to notify employees about all job opportunities (not including career development or progressions) in advance of filling them even if all employees currently earn more than the wage offered. The notification needs to include the rate or range of pay, a general description of other benefits or compensation for this position, and the date the application window is expected to close. For employers with no physical location in Colorado and 14 or fewer remote employees in the state, only remote job opportunities must be shared.
Employers also have new post-selection notice responsibilities. Within 30 days of the selected candidate starting the job, employers must communicate the following information to the employees that will regularly work with that individual:
Finally, all eligible employees must be notified of a position’s requirements for career progression when it’s regular or automatic and based on time or other objective metrics; for example, when a junior stylist is automatically promoted to senior stylist after one year in the role. Employees must also be told the pay, benefits, full- or part-time status, duties, and access to advancement.
The possession and use of psilocybin in certain quantities and settings is now legalized in Colorado. Employers do not have to allow or accommodate its use or possession in the workplace. Employers may want to consider how to respond to certain drug test results and whether the response is potentially harmful to those with disabilities or may limit your candidate or employee pool.
The state’s paid Family and Medical Leave Insurance Program (FAMLI) benefit payments will be available to employees in the new year. The state manages the program, as well as payouts, but employers must offer job protection when employees are on a FAMLI qualifying leave. You can learn more on the Colorado Family and Medical Leave page.
Colorado’s minimum wage will increase to $14.42 per hour. The minimum base wage for tipped employees will increase to
$11.40 per hour. The minimum salary for exempt executive, administrative, or professional employees will increase to
$1.057.69 per week, or $55,000 per year. The minimum annual salary to use the “highly compensated employee” exemption will increase to $123,750 per year. The minimum rate for exempt computer employees who are paid on an hourly basis will be
$33.17 per hour.
Denver’s city and county minimum wage will increase to $18.29 per hour. The minimum base wage for tipped employees will increase to $15.27 per hour.
The city of Edgewater will have its own minimum wage of $15.02 per hour. The minimum base wage for tipped employees will be $12 per hour. Employers are required to post a notice in English and Spanish. Compliant language can be found on page 4 of the ordinance in ALL CAPS.
Unincorporated Boulder County will have its own minimum wage of $15.69 per hour. The minimum base wage for tipped employees will be $12.67 per hour. For a list of unincorporated areas that the minimum wage law applies to, see Boulder County’s website.
Employers are required to post a notice in English and Spanish in a prominent place that is easily accessible to all employees. If displaying a physical notice isn’t feasible, or an employee doesn’t have a regular workplace or job site, employers need to provide the required information on an individual basis, in an employee’s primary language, and in a form that is reasonably conspicuous and accessible. The county hasn’t provided specific language but posting page 3 of the ordinance will likely suffice.
Posters are available by clicking here.
The following are modifications to previous Orders presented in Order #39 (this is a general summary of significant changes in language and does not include all instances of modifications):
Tipped employees definition changed:
Employers must provide written notice of the availability of federal and state earned income tax credits and federal and state child tax credits at least once annually. Employers may send the written notice to employees electronically, including via e- mail or text message. The written notice must be in English and any other language the employer uses to communicate with employees. For the Colorado template for this notification, please click here.
1/31 – File and Furnish Forms W-2
1/31 – File and Furnish Forms 1099-NEC, Nonemployee Compensation 1/31 – 2024—File Form 941, Employer’s Quarterly Federal Tax Return
1/31 – File Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
2/1 – Post OSHA Form 300A (Summary of Work-related Injuries and Illnesses)
2/15 – Request a new W4 form Employees Claiming an Exemption from Withholdings for 2023
2/28 – File ACA Forms 1094-C and 1095-C (Paper Filing Deadline) – most employers are required to file electronically 2/28 – File ACA Forms 1094-B and 1095-B (Paper Filing Deadline) – most employers are required to file electronically 2/29 – Submit the Medicare Part D Disclosure to CMS (Calendar-year Plans Only)
3/1 – Provide ACA Form 1095-C to Employees 3/1 – Provide ACA Form 1095-B to Employees 3/2 – Submit Electronic Reports to OSHA
3/31 – Deadline for Filing the EEO-1 Report With the EEOC
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