Legal/Compliance Roundup - August 2024

Each month, Mployer collects and presents some of the most relevant and most pressing recent changes in law, compliance, and policy in areas related to employee benefits, health care, and human resources. 

State Update

Minnesota: Beginning August 1, 2024 Minnesota employment law related on the topics of wage statement record keeping, continuation of pregnancy and parenting-related benefits, electronic tips, and drug testing via oral fluids have all been updated in accordance with the recently signed law SF 3852.

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Florida: On September 30, will increase from $12 to $13 dollars per hour (up to $9.98 for tipped employees).

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Oregon: On July 1, 2024 the minimum wage in the Portland Metro area increased to $15.95 per hour while the so-called “standard” counties saw their minimum wage rates climb to $14.70 and the minimum wage in nonurban counties rose to $13.70 per hour.

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Overtime/Minimum Wage Exemption Threshold Increases Began July 1, 2024

The Department of Labor recently increased the pay thresholds for Executive, Administrative, and Professional employees (EAP) including salaried computer workers, and Highly Compensated Employees (HCEs) to remain exempt from federal minimum wage and overtime laws.

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One month ago on July 1, 2024, the EAP exemption threshold rose from $35,568 to $43,888. That threshold number is also set to rise again the following year on January 1, 2025, when the EAP exemption minimum annual salary rises to $58,656, after which automatic increases will begin July 1, 2027 and every three years after that. 

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The increase in the minimum HEC exemption threshold follows a similar path, with the first increase up to $132,964 July 1, 2024 as well, before increasing again to $151,164 on January 1, 2025 and every three years after beginning on July 1, 2027. 

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The overtime and minimum wage exemption threshold for computer workers that are paid hourly remains at $27.63 per hour, while the threshold for computer workers paid on salaried basis is linked with the EAP minimum. 

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You can find more about these exemption threshold increases here. 

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HSA & HDHP Inflation Adjustments Announced

The IRS announced the 2025 adjustments to health savings account and high deductible health plans:

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The self-coverage limit increased by $150 to $43,00 while the family coverage limit increased by $250 to $8,550.

• There was a $50 dollar increase on the minimum annual HDHP deductible, bringing it up to $1,650, while the family coverage deductible rose by $100 up to $3,300. 
• The maximum yearly out-of-pocket expenses for single coverage HDHPs, including premiums, deductibles, and other related expenses) rose by $250, up to $8,300, while the family coverage equivalent increased by $500, up to $16,600

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You can read more about the adjustments here. 

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Pregnant Workers Fairness Act NOW IN EFFECT

The final regulations in support of the Pregnant Workers Fairness Act (PWFA) went into effect on June 18, 2024.

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Some of the accommodations that the final rule presumes to be reasonable absent an especially significant justification for denying the accommodation, including allowing pregnant employes to: 

• Take breaks to eat and drink;
• Keep water nearby;
• Use the restroom as needed; and
• Sit or stand as needed

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The rule also places a number of limitations for when employers can require supporting documentation in order for employees to request or receive accommodations under the rule, allowing employers to request such documentation only when it is reasonable under the circumstances.

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The final rule also requires accommodations for medical appointments, and defines certain terms broadly enough to require accommodations for medical care involving fertility, contraception, and situations when pregnancies abruptly end whether willfully or not. 

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You can find the final rule here.

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