Q3 2024 Compliance Changes: A Review Report

August 12, 2024

Keeping up with compliance requirements is essential yet challenging for businesses of all sizes. This quarterly update provides a comprehensive overview of recent federal and state legal developments that impact businesses across all major verticals.

The CBC Health Insurance Marketplace for Costco Members wants to keep you informed about some of the key highlights of the compliance changes.

Federal Developments

FTC’s Noncompete Agreement Ban: What You Need to Know

As of May 7, 2024, the Federal Trade Commission (FTC) has enacted a rule banning most noncompete agreements, set to take effect on September 4, 2024. This significant change aims to increase employee mobility by prohibiting employers from enforcing noncompete clauses. Businesses should begin preparing for this transition by reviewing their current agreements and adjusting their practices. It is crucial to note that ongoing legal challenges could influence the final implementation of this rule. Employers should stay updated on any changes or delays resulting from these legal disputes.

Updated HSA Limits for 2025

The IRS has announced new, inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) for 2025, effective from May 9, 2024. These adjustments impact the maximum HSA contribution limits, deductible requirements for HDHPs, and out-of-pocket expense caps. Employers offering HDHPs should update their plans and communications to reflect these new limits, ensuring employees are informed about the increased contribution opportunities.

Enhanced Privacy Protections for Reproductive Health Care

A new rule from the U.S. Department of Health and Human Services (HHS), effective December 23, 2024, will strengthen privacy protections under the HIPAA Privacy Rule. This rule prohibits the disclosure of protected health information (PHI) related to lawful reproductive health care. Employers with self-insured or fully insured health plans must revise their HIPAA policies and educate their teams about these enhanced privacy measures to ensure compliance.

OSHA’s Proposed Heat Safety Standard

On July 2, 2024, OSHA proposed a new standard aimed at preventing heat-related injuries and illnesses. This proposed regulation will apply across various sectors, including general industry, construction, maritime, and agriculture. Employers will need to develop and implement plans to manage heat hazards. As this proposal may face legal challenges, businesses should monitor developments and be prepared for potential adjustments to their heat safety practices.

EEOC’s Updated Guidance on Workplace Harassment

The EEOC’s new guidance, published on April 29, 2024, outlines how it will enforce equal employment opportunity laws concerning workplace harassment. This guidance emphasizes the need for employers to update their harassment policies and procedures. Ensuring that your organization’s practices align with these guidelines will help mitigate risks and foster a respectful work environment.

DOL’s Insight on AI and Wage Compliance

The DOL's Field Assistance Bulletin No. 2024-1, released on April 29, 2024, addresses the use of artificial intelligence (AI) in the workplace. This bulletin highlights potential compliance risks under the Fair Labor Standards Act associated with AI tools. Although FABs are not legally binding, they provide valuable insights into how the DOL interprets and enforces wage and hour laws in the context of AI.

State Law Developments

Minnesota: Comprehensive Employment Law Revisions

Minnesota has rolled out several significant changes to its employment laws, effective from mid-2024 and beyond. These updates include a ban on restrictive employment covenants and expanded protections for pregnancy and parental leave. By January 1, 2025, Minnesota will also require pay ranges in job postings and eliminate minimum wage tiers. If you operate in Minnesota, now’s the time to adjust your practices to comply with these new requirements.

Minnesota: Revised Sick Leave and Paid Leave Laws

Minnesota’s new law, effective immediately, mandates that employers provide written updates on earned sick and safe time (ESST) balances. Additionally, significant changes to the paid family and medical leave program will come into effect on January 1, 2026. Employers should review and update their leave policies to comply with these new requirements.

Connecticut: Expands Paid Sick Leave Coverage

Connecticut’s recent legislation, effective May 21, 2024, broadens the scope of the state’s paid sick leave program to cover nearly all workers by 2027. The law introduces incremental coverage expansion and other adjustments to existing PSL requirements.

Vermont: Pay Transparency Law

Starting July 1, 2025, Vermont will require employers with five or more employees to include compensation ranges in job advertisements for positions based in Vermont or remotely located for a Vermont office. This new law aims to promote pay transparency and equity.

Maryland: Enhanced Pay Transparency Requirements

Maryland’s updated pay transparency regulations, effective October 1, 2024, expand upon the Equal Pay for Equal Work Act. Employers must now disclose wage ranges in all job postings for positions performed in Maryland. This update affects all employers, regardless of size, and emphasizes the need for clear and consistent compensation practices.

Keeping pace with compliance changes can be a complex task, but staying informed and proactive is key to avoiding legal pitfalls. As regulations evolve, both small and large businesses must adapt to maintain compliance and protect their operations.

Regularly reviewing and updating your policies in light of these changes will not only ensure you meet legal requirements but also demonstrate your commitment to fair and respectful workplace practices. If you need assistance or have questions about how these updates affect your business, don’t hesitate to reach out to us today.

Brought to you by the insurance professionals at Custom Benefit Consultants, Inc.

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