Compliance & Policy

Legal/Compliance Roundup - December 2024

UPDATED ON
December 4, 2024
Jamie Polen
Jamie Polen
— Written By
Print Friendly and PDF

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.

EAP & Highly Compensated Exception Update

A federal court in Texas determined that the Department of Labor exceeded its authority last summer by increasing the minimum pay thresholds for employees to qualify under the executive, administrative, and professional and highly-compensated employee exceptions to minimum wage and overtime protections. 

Those minimum pay thresholds have reverted to their prior levels - back to $684 per week for the EAP exemption (down from $844 per week under the now defunct rule), and back to $107,432 per year for the HCE exemption (down from $132,964 per year under the now defunct rule). 

NLRB Says No Captive Audience Meetings on Unionization Issues

The National Labor Relations Board has issued a decision prohibiting employers from forcing employees under threat of punishment to attend meetings during which the employer will share views on unionization or its impacts. 

Employers are allowed, however, to convene employees and share their views on unionization and potential impacts so long as employees are not disciplined or adversely affected in any way for not attending (or leaving early). Employers should not even keep or maintain such attendance records.

You can read more here

State Spotlight

New York: New York employers that receive criminal history records for applicants and employees must now provide those applicants and employees with a copy of those records and a copy of the applicable New York corrections law as well as an opportunity to correct any inaccurate information that may be contained in those records. 

Further, beginning January 1, 2025, New York employers will be required to provide 20 hours of paid prenatal leave during a 52 week period. Also beginning in the new year, the characteristics to which equal protection was extended via in the New York State Human Rights Law and the resulting protections will become formally enshrined in the New York State Constitution. Those characteristics include: age, disability, ethnicity, gender identity, gender expression, national origin, pregnancy, and anything else related to reproductive healthcare.

IRS Publishes 2025 Annual Retirement Plan Maximums

  • The 401(k) annual contribution limit increases from $23,000 to $23,500.
  • The catch-up contribution limit stays unchanged at $7,500 for participants age 50 and over  
  • The SECURE Act 2.0 also instituted a new type of catch-up contribution, which enables participating people (age 60 to 63) to contribute up to $11,250 annually.

You can read more here

IRS Publishes 2025 Annual Benefit Maximums

  • The HFSA contribution max is $3,300 (maximum carryover is $650 for HFSAs with carryover features).
  • The QSEHRA max for total reimbursements is $6,350 for single coverage and $12,800 for family coverage.
  • The max employee tax credit for adoption assistance is $17,280, with additional conditions depending on employee salary range. 
  • The monthly parking and mass transit benefit max is $325. 

You can find the complete IRS 2025 benefit contribution limit list here.

Minimum Wage Increases for Federal Contractors

Beginning January 1, 2025, the minimum wage paid for work associated with federal contracts will increase.

The minimum wage that can be paid for work conducted in association with federal contracts covered by Executive Order 13658 will be $13.30 ($9.30 for tipped employees), while the minimum wage paid for work conducted in association with federal contracts covered by Executive Order 14026 will climb to $17.75 per hour for both tipped and non-tipped employees.

Additional guidance about which kinds of contracts are covered by which executive order can be found here

ACA Affordability Threshold Increase

Large employers with an average of 50 or more full-time employees or the equivalent are required to either offer employees minimal, affordable health coverage or they must pay a penalty in the event that an employee secures health coverage with a premium tax credit via the exchanges. 

In 2025, the threshold for what qualifies as affordable coverage increases from 8.39% to 9.02%, which means that an employee’s required contribution to the plan can be no more than 9.02% of their salary in order for the plan to be considered affordable, which allows employers to avoid potentially paying the penalty. 

You can read more about the affordability threshold here.

Want more insights on how your employee benefits compare to companies in your region, industry, and similar employer size?
Download Your Custom Benefits Report Now
See How Your Employee Benefits Compare

Next Up

The Employment Situation for December 2024
The latest economic release from the Bureau of Labor Statistics reports that the U.S. job market rebounded after a sluggish month in October to add 227 thousand new jobs last month as the unemployment rate ticked up slightly to 4.2%.
Introducing Insights+ The Next Evolution In Employee Benefits Evaluation & Value-Capture Tools
‍We are excited to announce the launch of Insights+, a service that enables employers to see exactly how their benefits measure up against the competition.
The Employment Situation for April 2024
The latest economic release from the Bureau of Labor Statistics reports that the U.S. added 303 thousand new jobs last month, while the unemployment rate ticked down to 3.8%.