Navigating Legal Changes in the HR Landscape

As we move further into 2023, it’s important for employers to stay on top of key HR and legal developments that emerged during Q1. These updates span various areas of HR, from employee classification to workplace safety, and will have lasting impacts on your organization throughout the year. At Rook Consulting, we’re here to help you navigate these changes with ease. Let’s take a look at the most important HR-related legal updates from Q1 2023.



1. New Federal Overtime Exemption Rules

One of the most significant changes in Q1 2023 was the update to the federal overtime exemption rules under the Fair Labor Standards Act (FLSA). The U.S. Department of Labor (DOL) proposed changes to the salary threshold for employees to qualify for exemption from overtime pay.

Key updates:

• Increased Salary Threshold: The DOL proposed raising the salary threshold for exempt employees from $35,568 per year to $55,000 per year. This means that more employees will be eligible for overtime pay unless they meet specific job duties and salary criteria.
• Reclassification of Employees: As a result of the proposed rule change, many employees who were previously classified as exempt may need to be reclassified as non-exempt and receive overtime pay.

What employers should do:

• Review Employee Classifications: Employers should assess their current employee classifications to determine if any employees are affected by the new salary threshold. Make sure your employees who may no longer meet the exemption criteria are reclassified accordingly.
• Update Compensation Structures: You may need to adjust salaries for employees who are on the cusp of the new threshold in order to maintain their exempt status. Alternatively, prepare for overtime pay for those who will be reclassified.

2. Expanded Paid Leave Laws in Several States

Q1 2023 saw significant developments in paid leave laws at the state level, as more states began to adopt or expand paid sick leave, family leave, and other forms of paid time off. These laws aim to provide greater support to workers for health-related reasons, family care, and other personal matters.

Key updates:

• Connecticut: Connecticut expanded its paid family and medical leave program, offering a broader range of benefits and increasing the number of weeks employees can take for family-related leave.
• Oregon: Oregon introduced a new statewide paid sick leave law that allows workers to earn paid sick leave based on their hours worked. This law also now applies to all businesses, including small employers.
• New York: New York expanded its paid family leave program, increasing the amount of time employees can take off to care for a newborn or a family member with a serious health condition.

What employers should do:

• Update Leave Policies: Employers should ensure that their paid leave policies reflect the latest state requirements. This includes making sure that employees are aware of their eligibility and how to apply for leave.
• Ensure Compliance Across Locations: If your business operates in multiple states or municipalities, it’s important to stay up to date with local paid leave laws to avoid penalties and ensure equal treatment for all employees.

3. Salary Transparency Laws on the Rise

In Q1 2023, more jurisdictions passed or enforced laws requiring employers to provide salary transparency in job postings and hiring processes. This is part of a nationwide push to address wage inequality and promote fairness in hiring practices.

Notable updates:

• California: California continued to enforce its salary transparency law, which requires employers with 15 or more employees to disclose the salary range for all job postings.
• Colorado: Colorado’s salary transparency law was further strengthened, requiring employers to include compensation information not only in job postings but also when making offers to candidates.
• New York City: New York City introduced a law requiring salary range disclosure in all job advertisements, including those for remote positions.

What employers should do:

• Revise Job Postings: Employers should review their job postings and ensure that compensation information is included, as required by law. This can include the base salary as well as additional forms of compensation like bonuses and benefits.
• Review Compensation Practices: Use salary transparency as an opportunity to review your compensation structures to ensure they are equitable. Conduct pay audits to avoid any disparities that could lead to legal challenges or employee dissatisfaction.

4. Updated Workplace Safety Standards

Q1 2023 also saw updates to workplace safety standards, particularly in response to the ongoing effects of the COVID-19 pandemic and the evolving expectations around employee health and safety. The Occupational Safety and Health Administration (OSHA) continued to adapt guidelines to address safety concerns in various industries.

Key updates:

• Updated COVID-19 Guidelines: OSHA continued to revise its COVID-19 guidelines, reducing some restrictions but still emphasizing the importance of maintaining certain safety measures in high-risk environments such as healthcare settings and public-facing jobs.
• Mental Health and Safety: OSHA also issued guidance encouraging employers to focus on mental health as part of their workplace safety programs, recommending resources for employees experiencing stress or burnout.

What employers should do:

• Review Safety Protocols: Employers should regularly assess and update their workplace safety protocols to reflect the latest OSHA guidelines. This includes continuing to monitor COVID-19 safety measures in relevant industries.
• Integrate Mental Health into Safety Programs: Consider integrating mental health resources into your overall safety programs. Ensure that employees have access to support for stress management and mental well-being.

How Rook Consulting Can Help

As you can see, the first quarter of 2023 brought significant legal changes that will impact businesses across the country. Whether it's adapting to new wage regulations, expanding paid leave programs, or complying with salary transparency laws, staying ahead of these changes is crucial to maintaining a compliant and effective HR strategy.

At Rook Consulting, we specialize in helping businesses like yours navigate complex HR challenges. If you need assistance reviewing your policies, ensuring compliance with new laws, or implementing best practices, we are here to help. Reach out today to learn how we can support you in achieving your HR goals and maintaining a positive, compliant work environment.