Quick Hits - October 26, 2022 - American Society of Employers - ASE Staff

EverythingPeople this week!

EverythingPeople gives valuable insight into the developments both inside and outside the HR position.

Latest Articles

Quick Hits - October 26, 2022

Daylight Savings Time ends November 6: When clocks are turned back an hour in the early morning on November 6th, workers on the midnight shift at that time will actually work an extra hour. Assuming that these workers are nonexempt employees, meaning that they are governed by the Fair Labor Standards Act (FLSA), they must be paid for all hours worked. The end of daylight savings time can have overtime pay implications as well. Generally, nonexempt employees are entitled to overtime pay for all hours in excess of 40 worked during the week. Employees who work an extra hour during the conversion to standard time may go over the 40-hour mark for the workweek and are thus entitled to the higher overtime pay rate for that time. For a copy of the ASE end of daylight savings time poster, click here.

New EEOC poster:  Last week, the EEOC issued a new update to their equal employment opportunity poster.  The EEOC released a new “Know Your Rights” poster, which updates and replaces the current “EEO is the Law” poster is available at https://www.eeoc.gov/poster.   The poster summarizes employment discrimination laws in plain language, which benefits employers and workers alike, and also explains that employees or applicants can file a complaint if they believe that they have experienced discrimination or retaliation. The new “Know Your Rights” poster includes the following changes: 

  • Uses straightforward language and formatting
  • Notes that harassment is a prohibited form of discrimination
  • Clarifies that sex discrimination includes discrimination based on pregnancy and related conditions, sexual orientation, or gender identity
  • Adds a QR code for fast digital access to the EEOC’s how to file a charge web page
  • Provides information about equal pay discrimination for federal contractors.

The new poster is available in English and Spanish and will be available in additional languages at a later date. You can purchase the updated all in one poster from ASE partner GovDocs at https://shop.govdocs.com/ and use the 15% discount code GN-ASE when checking out.

IRS reports new rates for flexible spending accounts in 2023: For the taxable years beginning in 2023, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements increases to $3,050. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $610, an increase of $40 from taxable years beginning in 2022. For tax years beginning in 2023, in order to qualify as a small employer health reimbursement arrangement (QSEHRA) under Code Sec. 9831(d), the total amount of payments and reimbursements for any year cannot exceed $5,850 (up from $5,450 in 2022) ($11,800 for family coverage, up from $11,050 in 2022). Source: Rev. Proc. 2022-38, I.R.B. 2022-45

IRS raises retirement savings for 2023: The employee contribution limit for 401(k) and similar workplace plans will jump $2,000 to $22,500 for 2023, the largest increase ever in terms of dollars and percentage.  The amount taxpayers can contribute to an individual retirement account will be $6,500 for 2023, up from $6,000. The limit hasn’t changed since 2019.  The 401(k) catch-up contribution amount allowed if you are 50 or older will rise $1,000 to $7,500 for 2023. The catch-up contribution limit for individual retirement accounts, which isn’t subject to inflation adjustments, remains at $1,000. For workers at companies that allow special after-tax contributions, and self-employed folks who have individual 401(k)s or SEP retirement plans, there is a total $66,000 plan contribution limit for 2023, up $5,000 from this year. That includes employee and employer contributions. With catch-up contributions on top, older savers can contribute up to $73,500 in 2023 to these plans. In 2023, the Roth IRA income range where eligibility phases out is between $218,000 and $228,000 for married couples filing jointly, up from between $204,000 and $214,000 this year. For singles and heads of household, the income range is between $138,000 and $153,000 in 2023, up from between $129,000 and $144,000 this year.  Source:  Wall Street Journal 10/21/22

Required bereavement leave in CA: AB 1949 was signed into law and creates protected bereavement leave under the California Family Rights Act (CFRA). As of January 1, 2023, AB 1949 makes it unlawful for an employer to refuse to grant an eligible employee the opportunity to take up to five days of bereavement leave upon the death of a family member. As does CFRA, this new requirement applies to employers with five or more employees. An employee is eligible for bereavement leave once they have been employed for at least 30 days prior to the commencement of leave. A qualifying family member includes a spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law as defined in the CFRA. The employee can use bereavement leave under AB 1949 for each qualifying occurrence, meaning each death of a qualifying member. There does not appear to be a limit for how many times an employee can be eligible for AB 1949 bereavement leave. The five days of bereavement leave does not need to be taken consecutively; they can be intermittent. The employee must complete the bereavement leave within three months of the family member’s date of death.  Paid bereavement leave is dependent on the employer’s policy.  Source: Littler 10/10/22

Be careful using TRAP agreements: Nearly 10% of American workers surveyed in 2020 were covered by a training repayment agreement, said the Cornell Survey Research Institute.  The practice, which critics call Training Repayment Agreement Provisions, or TRAPs, is drawing scrutiny from U.S. regulators and lawmakers. At the state level, attorneys general like Minnesota’s Keith Ellison are assessing how prevalent the practice is and could update guidance.  TRAPs have been around in a small way since the late 1980s, primarily in high-wage positions where workers received valuable training.  Ellison told Reuters he would be inclined to oppose reimbursement demands for job-specific instruction while it “could be different” if an employer wanted reimbursement for training for a certification like a commercial driving license that is widely recognized as valuable.  The Consumer Financial Protection Bureau has begun reviewing the practice, while the Justice Department and Federal Trade Commission have received complaints about it.  The use of training agreements is growing even though unemployment is low, which presumably gives workers more power, said Jonathan Harris who teaches at the Loyola Law School Los Angeles.  “Employers are looking for ways to keep their workers from quitting without raising wages or improving working conditions,” said Harris.  Source: Reuters 10/17/22

Filter:

Filter by Authors

Position your organization to THRIVE.

Become a Member Today