Compliance Corner

As previously announced and as described in the ADP TotalSource's Insights and Solutions bulletin, in June 2023, Alabama enacted House Bill 217  (HB 217 or the Bill), which excludes from gross income for state income tax (SIT) purposes amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40 hours in a week.  This exclusion goes into effect for overtime wages paid beginning Jan. 1, 2024, and is currently scheduled to end on June 30, 2025.

Oregon has enacted legislation (Senate Bill 907), which further protects employees from hazardous work conditions. Senate Bill 907 takes effect on Jan. 1, 2024.

Employees receiving Paid Family and Medical Leave (PFML) benefits in Massachusetts are entitled to supplement their PFML benefits with available accrued paid leave. The change is effective for PFML applications filed on or after Nov. 1, 2023. The state also announced that the contribution rate for 2024 will increase.

The Illinois Department of Labor has published guidance on the Paid Leave for All Workers Act which requires employers to provide employees with up to 40 hours of paid leave that they may use for any reason. The law takes effect Jan. 1, 2024.

The California Department of Industrial Relations has announced an increase to the pay rates that computer software employees and physicians must receive in order to be exempt from overtime. Additionally, the minimum salary required for the administrative, professional, and executive overtime exemptions will also increase. These new rates take effect on Jan. 1, 2024.

California has enacted legislation that expressly prohibits an employer from requesting information from an applicant relating to the applicant’s prior use of cannabis. The legislation (Senate Bill 700) takes effect Jan. 1, 2024.

Oregon has enacted legislation (House Bill 3028), which adds protections for an employee that is appointed to a board, commission, council, or committee. House Bill 3028 is effective immediately.