February Legal Updates

Massachusetts Employment Law Update

From my partner, Rachel Moynihan: MA’s new pay transparency law will be rolled out in phases starting this year. Beginning February 1, 2025, employers with 100+ employees will be required to submit demographic and wage data to the state, similar to the federal EEO-1 report. These private employers will need to file annual updates thereafter. The second phase, effective October 29, 2025, mandates that employers with 25+ employees disclose the salary range for any position in all job postings within MA, which includes internal promotions or transfers. Employers also must disclose pay ranges upon request, subject to certain limitations.

Additionally, all MA-based employees must be provided the updated Paid Family Medical Leave (PFML) notice. The new poster, available online through www.mass.gov, provides the new 2025 PFML contribution rates and advises of the recent change permitting leave to be "topped off" using any accrued paid leave, such as sick time or vacation time. Employers must ensure that this notice is posted in the workplace and/ or sent to remote workers. Employers should also confirm with their payroll provider that they are prepared to implement the 2025 contribution increase for all MA employees.

IL Human Rights Act Expanded

The IL Human Rights Act (IHRA) was updated as of January 1, 2025. Employers in IL may not discriminate against their employees based on “reproductive health decisions” or “family responsibilities.” And, employees now have two years to bring a discrimination charge the IL Department of Human Rights, an increase over the previous 300-day limit.

NY Handbook Update

Last week, in CompassCare et al. v. Hochul, the Second Circuit vacated a permanent injunction issued in April 2022 that blocked the requirement that NY employers include a notice in their employee handbooks regarding the prohibition on discrimination based on reproductive health care choices. As a result, will again be required to include such notice in their handbooks.

NJ Handbook Update

Dress Codes: The New Jersey Division of Civil Rights (“NJDCR”) announced it was unlawful for businesses open to the public to maintain gender-specific dress codes. Note that there is gender-neutral dress code requirement under the NJ Law Against Discrimination.

Employee Expense Reimbursement: unreimbursed business expenses may give rise to employer liability under the New Jersey Wage Payment Law. Be sure your reimbursement policy is compliant.

Out-of-state workers: The NJDCR issued guidance stating that the NJLAD applies to all employees of NJ-based employers, which includes all out-of-state and remote employees are covered under the NJLAD.

Family Leave: The NJDCR issued a Frequently Asked Questions. Be sure your leave policies are compliant with the NJ Family Leave Act.

FTC Appealed Noncompete Ruling

The Federal Trade Commission is asking the Fifth Circuit to reverse a lower court decision that the FTC acted outside its legal authority in prohibiting most worker noncompete agreements. The FTC argues that the ruling should not have extended beyond the parties challenging the ban, saying the lower court "compounded its errors by entering a universal vacatur of the rule."

Immigration Penalties Increase

On January 2, 2025 ICE announced in the Federal Register increased penalties under the Immigration Reform & Control Act:

Takeaway: it may be prudent to conduct an internal Form I-9 audit.

ME State Leave Being Challenged

Maine Chamber, Shipyard Challenge State Paid Leave Rule

The Maine State Chamber of Commerce and U.S. shipyard Bath Iron Works told a state court that certain provisions of the rule for the state medical leave program are illegal, arguing that employers will shell out conspicuous amounts into a fund they won't use.

Et Tu OSHA?

On January 9, 2025, the DOL release its annual inflation-adjusted OSHA civil penalties for 2025, which will go into effect for violations issued on or after January 15, 2025. The new maximum penalty amounts:

DOL: Managers Can't Get Tips For Occasional Shifts

Employees who meet managerial requirements under the FLSA and occasionally work shifts performing nonmanagerial duties can't participate in tip pools, the US DOL said.

SCOTUS Rules On OT Standard

The US Supreme Court ruled unanimously in favor of Maryland-based EMD Sales in declining to impose a clear-and-convincing standard for proving that workers are exempt from overtime requirements under the Fair Labor Standards Act, instead determining that the less stringent preponderance-of-the-evidence standard should apply.

Calling preponderance of the evidence the "default rule" of civil litigation, Justice Brett Kavanaugh wrote in his opinion for the court, "We are not persuaded by the employees’ policy-laden arguments for a heightened standard when an employer seeks to show that an employee is exempt."

Coming Soon: New OH Paystub Law

Effective April 8, 2025, the OH Pay Stub Protection Act goes into effect. The law requires employers to issue pay stubs that contain:

• the names of both the employee and the employer,
• the employee’s address,
• total gross wages during the pay period,
• total net wages during the pay period,
• the amount and purpose of each addition or deduction to wages, and
• the dates of the pay period.

For hourly employees, the pay stub must also include:

• total hours worked,
• hourly rate, and
• hours worked in excess of 40 hours in one workweek.

SCOTUS Declines to Biden's Contractor Wage Hike

The U.S. Supreme Court won't review President Biden's authority to raise the minimum wage for federal contract workers, the high court said Monday, shutting down a bid to overturn a Tenth Circuit decision.

IL Expands Access to Personnel Records

Effective January 1^st, the IL Personnel Records Review Act (PRRA) added three new categories of documents available to employees on request: (1) employment-related contracts or agreements that bind the employee, (2) employee handbooks that apply or applied to the employees, and (3) written employer policies or procedures that apply or applied to the employees.

The law applies to employers with 5 or more employees.

CT House Bill Would Exempt OT Pay

Connecticut would exempt employees' earned overtime pay from income tax under a bill introduced in the state House of Representatives.

SCOTUS To Review ACA Decision

The Supreme Court has agreed to review a decision by the US Court of Appeals for the 5th Circuit that struck down some Affordable Care Act preventive care requirements. The lower court sided with employers who objected to covering services such as HIV prevention and certain cancer screenings, citing religious and procedural issues.

The case is likely to be heard in the spring.