January 2020 Newsletter

It’s a new year, and as is always the case, nothing remains the same for very long. Both federal and state governments have been very busy over the last several months enacting significant changes to a wide variety of laws and regulations which will have a large impact on all businesses.

Seven changes to keep an eye on this year.

1. Overtime Regulations

At the top of the list are the new changes to the overtime regulations. On January 1, 2020 new regulations went into effect which significantly change who is and who is not eligible to be paid overtime. According to estimates from the U.S. Department of Labor (DOL), 1.3 million workers will be changed from not being eligible to be paid overtime to a status of being required to be paid overtime whenever the individual works more than 40 hours within a one week period of time.

2. New W-4 Form

Upon employment, all newly hired employees must fill out a standard W-4 form. The 2020 W-4 form has been revised….significantly. All employees who are hired after January 1, 2020 must fill out the new form.

3. Changes in the National Labor Relations Act (NLRA)

Over the past year, President Trump appointed members of the National Labor Relations Board (NLRB), which has interpretive control over the National Labor Relations Act (NLRA); these members have been very busy rolling back and reversing significant decisions of the prior NLRB. This is good news for employers.

4. Definition of Employee vs. Independent Contractor

Many employers routinely and wrongly designate employees as Independent Contractors. Both the IRS and the DOL have established “tests” to help employers determine who is and who is not an Independent Contractor. It is very important for employers to get this designation right.

5. Asking Applicants about Previous Salaries

There is a growing trend among many state and local legislatures to pass laws which forbid employers from asking applicants about the salary they made with prior employers. Check your state or local laws on this issue.

6. Ban the Box

“Ban the Box” is another initiative which is being considered and passed by many state legislatures. Under this law, it would be illegal for an employer to ask any questions on applications or initial interviews pertaining to the applicant’s prior arrest or conviction records.

7. Cannabidiol (CBD)/Cannabis Legislation

Lastly, the rise of legal Cannabidiol (aka CBD) and its use in the workplace has come in direct conflict with many generally accepted workplace policies on drug detection and prevention. Employers should contact legal experts when faced with this dilemma to insure that they do not run afoul of state or local statutes. (See JER HR Group blog on this topic)