EEOC Issues Final Regulations to Implement the Pregnant Workers Fairness Act

The Equal Employment Opportunity Commission (EEOC) has issued final regulations and Interpretative Guidance to implement the Pregnant Workers Fairness Act (PWFA). The PWFA went into effect on June 27, 2023. The PWFA requires that employers with at least 15 employees provide reasonable accommodations, absent undue hardship, to qualified employees and applicants with known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions.

The PWFA required the EEOC to publish final regulations by December 29, 2023. However, the EEOC did not issue final regulations until April 15, 2024.  The final regulations are slated to be published in the Federal Register on April 19, and will go into effect 60 days after publication.  The final regulations were issued after over 100,000 public comments were submitted in response to  the proposed regulations.

In the final regulations the EEOC clarifies, and in some instances, expands upon the circumstances in which an employer must reasonably accommodate an employee, absent undue hardship. The following is a list of some of the issues addressed in the 400+ pages of final regulations.

• Like the proposed regulations, the final regulations cover a wide range of conditions related to pregnancy, including, fertility and infertility treatments, carpel tunnel, menstruation, postpartum depression, lactation (including both breastfeeding and pumping in the workplace), changes in hormone levels, abortion, miscarriage, stillbirth, and preeclampsia.
• The final regulations significantly maintained the list of reasonable accommodation requests that will almost never impose an undue hardship, including permitting employees to carry or keep water nearby, take breaks as needed to eat and drink, and permitting work to be done while sitting instead of standing or vice versa.
• The final regulations clarify the definition of a “qualified individual” as one who can perform the essential functions in the near future.  In the case of a pregnant employee, the presumption is the employee can perform the essential functions “in the near future,” within 40 weeks of suspension of the job function.  For conditions other than current pregnancy, the regulations do not impose a 40-week limitation.  However, the final regulations clarify a request to indefinitely suspend an essential function is not “in the near future” so as to entitle an employee to an accommodation.
• The final regulations further restrict the documentation and information an employer may require to support a request.
• The final regulations state it is a best practice to provide an interim accommodation to an employee under the PWFA, and may mitigate against a claim of delay by an employee.
• The final regulations also clarify there is no right to a reasonable accommodation under the PWFA based upon an individual’s association with someone else who may have a PWFA-covered limitation, or even if the individual themselves has a physical or mental limitation arising out of someone else’s pregnancy, childbirth or related medical condition.
• The final regulations clarify that time for bonding or for childcare is not covered by the PWFA.
• The final regulations also include extensive Interpretative Guidance as an Appendix, which address the major provisions of the PWFA and explain and illustrate how the final regulations will apply.  

If you have any questions about the PWFA or the implications of the regulations for your organization please let us know.

New Florida Law Relaxes Work Restrictions for Older Teens

The Florida Legislature just passed a bill to loosen existing work restrictions for minors who are at least 16 years old. Governor DeSantis signed the bill on March 22, and it will take effect on July 1, 2024. You should note that both federal and state laws restrict the time of day and number of hours that minors can work, the type of work that minors can perform, and the equipment they can use. Although the federal Fair Labor Standards Act (FLSA) governs child labor and sets the minimum standards, states can enact more restrictive child labor laws. Florida is one of the states that has enacted more restrictive child labor laws — but the new legislation lightens up on restrictions for older teens, allowing those workers and their employers more flexibility. Here’s what employers need to know about HB 49 and the top five questions to consider when hiring teenagers.

The New Rules

• Under the new law, 16- and 17-year-olds will be allowed to work more than 30 hours per week when school is in session if a parent, guardian, or school superintendent fills out a waiver provided by the Department of Business and Professional Regulation and provides it to the employer.
• The new law also allows minors age 16 and up to work more than eight hours a day on holidays and Sundays during the school year. 
• Teens who are homeschooled or attend virtual school are permitted to work during school hours. 
• The bill also establishes 30-minute break requirements every four hours for teens working more than eight hours per day. The law continues to enforce civil fines of up to $2,500 per offense, and violations may even extend to criminal penalties amounting to a second-degree misdemeanor. 

5 Questions to Consider

If you’re thinking about hiring younger workers or increasing the hours that your minor employees work, you should ask yourself these five questions:

1. Does your local area have a large number of minors looking for work? In other words, will widening the net actually increase your applicant pool in a meaningful way?
2. Are your managers properly trained to understand and comply with the regulations governing youth employment?
3. Will you require minor employees to be at least a certain age? In many cases, the work restrictions for 16- and 17-year-olds are less significant than rules for younger teenagers – so you will likely have more flexibility when hiring older youth.
4. Are you hiring for jobs that are deemed “hazardous occupations” under federal or state law? If so, you should recognize that minors are excluded from working in certain occupations that are considered hazardous or injurious.
5. Does your timekeeping system allow you to put automated safeguards in place to prevent minors from working during prohibited hours or more hours than allowed? Properly programmed computers can eliminate human errors, especially when managers are distracted by other duties and may simply miss the fact a minor has not clocked out and gone home.

While HB 49 relaxes some work restrictions for minors, Florida employers should continue to ensure compliance with child labor laws by regularly reviewing hiring and employment practices with respect to minors, providing detailed training to managers, and performing internal audits to ensure compliance with both Florida and federal child labor laws.

Labor Department’s New Overtime Rule Likely Coming Soon: Your 8-Step Plan to Prepare

More of your employees may be eligible for overtime pay under a new rule that is likely to be finalized in April 2024 and could take effect soon. As proposed in August, the Labor Department intends to significantly raise the exempt salary threshold from about $35K to about $55K – meaning your workers will need to earn at least the new threshold to even be considered exempt from OT pay. The White House budget office recently announced that it is reviewing the rule, which is the final step before it is shared with the public. Although the final rule will likely face legal challenges, you can’t bank on a court halting its implementation. Moreover, the higher exempt salary threshold is expected to impact 3.6 million workers, which means you should start planning now. Here’s an eight-step action plan to help you prepare as the rule is finalized.

1. Review Pay Practices and Prepare for Compliance

Under the federal Fair Labor Standards Act (FLSA), employees generally must be paid an overtime premium of 1.5 times their regular rate of pay for all hours worked beyond 40 in a workweek — unless they fall under an exemption. One of the criteria to qualify for an exemption is earning a weekly salary above a certain level.

Currently, the salary threshold for exempt employees is $684 a week ($35,568 annualized). The DOL’s proposal, if finalized in its current form, would raise the rate to $1,059 a week ($55,068 annualized) or high depending on cost-of-living adjustments. The proposed rule would also automatically update the salary threshold every three years, which means you’d have to adjust your budget accordingly. These are big changes that will require some planning if you have exempt employees who earn less than the proposed amount.

2. Work Through Your Decision Tree

Start by creating a list of your exempt employees who currently earn between $35,568 and $55,068 a year. You will have to decide whether to raise their salary to meet the new threshold or convert them to non-exempt status. If you decide to convert them, there are many considerations to take into account and you should work with legal counsel to review:

• how much you will increase pay for affected employees;
• how you’ll calculate the “regular rate”;
• how you’ll handle incentives and bonuses;
• how you will track working hours; and
• how benefits will be affected.

Additionally, you may want to start tracking their actual hours worked now to help you understand the potential impact of converting to non-exempt status as those individuals will need to be paid overtime.

3. Consider the Impact on Employee Morale

Reclassifying employees to non-exempt could have a negative impact on morale. Many employees associate prestige with being classified as an exempt-salaried employee, they like the flexibility that comes with being salaried, and they don’t want to track and record their hours worked. Therefore, employees may view a switch to non-exempt status as a demotion. 

4. Plan to Provide Advance Notice of Changes

In addition to developing communications focused on employee relations and morale, you’ll want to provide a written communication to each employee about the specific changes to their compensation and what new responsibilities come with the changes, such as timekeeping and record keeping.

5. Review Your Policies on Company Equipment and Personal Devices

Do you have different policies for exempt and non-exempt employees when it comes to issuing company equipment and using personal devices? Exempt employees may have more leeway to use company laptops or their own personal devices – such as smartphones – to conduct business while traveling or outside of their regular office hours. You will have to determine how to address these policies moving forward.

6. Develop a Training Plan for Managers and Newly Non-Exempt Employees

It is recommended that you provide detailed training to newly reclassified employees and their managers prior to the changes taking effect. There’s a lot to learn. The specifics may vary from business to business, but you’ll want to cover scheduled hours, OT approval policies, timekeeping procedures, rules about meal and rest breaks, and more.

7. Ensure Exempt Employees Meet the Duties Test

Besides the salary test, exempt employees also need to satisfy certain duties requirements. Neither their job title nor job description alone determines whether an employee qualifies for a white-collar (or any other) exemption. This is a good opportunity to ensure they meet these standards as well.

8. Review Applicable State Laws

It is important to remember that other jurisdictions can have higher, stricter, or different wage and hour requirements. For example, some states already have a higher salary threshold for the white-collar exemptions than the FLSA’s $684 per week.

Conclusion

You can click here for a more detailed compliance plan and background about the federal overtime rule courtesy of Fisher Phillips LLP.

IRS Announces 2025 Decreases for Employer Shared Responsibility Payments

On February 12, 2024, the IRS released Rev. Proc. 2024-14 to provide the adjusted excise tax amounts under the Affordable Care Act’s Employer Shared Responsibility provisions (also known as the ACA Pay or Play Penalty) for 2025.

For background, employers with more than 50 full-time employees (including full-time equivalent employees) are subject to the ACA Pay or Play Penalty under Section 4980H of the Internal Revenue Code (the “Code”). Employers subject to ACA Pay or Play may be liable for a penalty if they do not offer minimum essential coverage to a sufficient number of full-time employees, or if minimum essential coverage is offered to the required number of full-time employees, but that coverage is not affordable.

2025 Adjusted Penalty Amounts

• The adjusted amount penalty for purposes of Section 4980H(a) of the Code is $2,900 (a $70 decrease from 2024)
• The adjusted amount penalty for purposes of Section 4980H(b) of the Code is $4,350 (a $110 decrease from 2024)

Benefit Questions or Claims Assistance Needed? AAG Can Help!

During this episode of Myra’s Minutes, we discuss ways to navigate the confusing world of insurance benefits and claims with AAG on your side.

You can view this short video here. 

Reminder: OSHA 300A Logs Must Be Posted By Feb 1st

All OSHA 300A logs must be posted by February 1st in a visible location for employees to read. The logs need to remain posted through April 30th.

Please note the 300 logs must be completed for your records only as well. Be sure to not post the 300 log as it contains employee details.
The 300A log is a summary of all workplace injuries, including COVID cases,  and does not contain employee specific details. The 300A log is the only log that should be posted for employee viewing.

Please contact our office if you need a copy of either the OSHA 300 or 300A logs.

10 Tips for Addressing Workers’ Heightened Holiday Stress

The holidays aren’t all parties and presents or candy canes and champagne. For workers, this time of year—brimming with looming end-of-year deadlines, financial and social obligations, and more—can cause a serious decline in mental well-being.

Research shows the majority of U.S. workers (61%) say their mental health is negatively impacted during the holiday season, with 44% feeling more stressed than usual and 17% reporting a decline in their overall well-being. That’s on top of the high levels of stress and burnout workers are already experiencing. According to recent study conducted by Aflac, well over half of U.S. employees (57%) are experiencing at least a moderate level of burnout.

One of the reasons why burnout and workplace stress intensifies during the holiday season is because of the pressure to meet year-end deadlines during a shortened work month. Additional family, financial and personal obligations also exacerbate burnout symptoms and workplace stress at the end of the year.

That heightened stress will likely make its way into the office—creating not only unproductive and unhealthy employees, but also ones who may not feel valued by their employer and are therefore more likely to leave.

That’s why, experts said, it’s in employers’ and HR leaders’ best interest to address the issue by touting available benefits, helping manage workloads and rethinking holiday celebrations, among other steps.

Employers and HR leaders need to help address this time of high stress and anxiety because first and foremost, employees are people first and workers second. High stress and anxiety can lead to burnout, illness and more. As for the employer piece, intense stress and anxiety can result in poor productivity, errors, lower morale and engagement, and more.

Here are 10 ways to help, according to HR and benefits experts.

1.Remind employees about financial education offerings to assist them with holiday budget concerns. Many employees are already stressed about finances—long-lasting high inflation has pushed financial wellness to an all-time low for many so the holidays, which are associated with gifts, extra commitments and travel that drive up spending, can cause greater stress for employees.

A September survey by Paycom found that three in four Americans say they must make accommodations to afford increased holiday expenses, including having side hustles or seasonal jobs, taking on credit card debt or payday loans, and saving throughout the year.

Many organizations offer financial wellness programs for employees, so HR leaders may want to send out information about available resources that employees can access to help with budgeting, saving and more.

Organizations should also look at their pay processes and make sure employees are paid on time and correctly for any end-of-year bonuses, regular salary and overtime hours.

2. Check in about workload—especially regarding end-of-year deadlines. The end of the calendar year is especially busy for many employees, and in some sectors, it might even be the busiest time of the year. “As the end of the year approaches, employees are trying to finalize budgets, wrap up projects, meet goals and tie up loose ends,” said Jennifer Moss, author of The Burnout Epidemic: The Rise of Chronic Stress and How We Can Fix It (Harvard Business Review Press, 2021). That’s why it’s vital that managers talk with employees about their workload and try to come up with solutions together about how to manage it, she said.

From now until the end of the year, managers should frequently check in with employees so they feel seen and heard.

Managers can say something like, “I want to check in to see how you’re doing. It’s such a hectic time of year and stress can become more intense than usual. How are you? How can I best support you?” Employers should be open to hearing their workers’ concerns—maybe they need more flexible schedules right now; maybe they need additional help—perhaps tapping resources from other departments who have lighter workloads this time of year.

3.Think about mental health help. HR and benefits leaders would be well-served to ramp up communication about mental health tips, as well as resources available through the company. HR leaders might want to send messages to employees to encourage them to take advantage of wellness programs such as employee assistance programs.

4.Encourage employees to take paid time off (PTO)—and actually step away from work. Utilizing PTO is vital in helping employees take a breather, recharge and come back to the office ready to work and be productive. The majority of workers (65%) admit to working on their days off to solve time-sensitive deliverables or to support their manager or other co-workers who ask questions or require their response.

Employers should reassure workers they don’t have to work on their days off. Bosses should lead by example and not check emails while they’re out of the office to set the message of truly unplugging. In turn, this means when they know their workers are on personal time or holiday time out of the office, bosses should not reach out to their direct reports and expect them to respond.

By having bosses do this, they can put a worker’s mind at ease. They can feel that their boss truly supports their taking time off without any negative ramifications. It can also help alleviate the stress and anxiety workers feel to constantly work 24/7 during a time of year that’s intended for people to slow down and pause.

In the long term, advocating for employees to enjoy time off can help strengthen retention and boost productivity when they return to work after a break feeling recharged.

5.Talk about health concerns and good practices. COVID-19, flu, RSV (respiratory syncytial virus) and other illnesses are spreading rapidly right now, which can be a stressor for employees—especially those who work in an office near other people or have a holiday party to attend. HR leaders might want to tell their workforce about potential ways to combat virus spread and encourage them to use PTO or to work remotely when they’re sick to “help avoid spreading illness, which can increase stress”.

Likewise, it might be a best practice to not make an office holiday party mandatory to ease concerns of workers who might be concerned about catching COVID-19 or other illnesses.

6.Consider offering a companywide break. PTO is helpful, but a companywide break—when a company shuts down most of its operations and allows employees to take the same time off can be a big help in reducing employee stress.

It also appears to be a growing trend, especially around the holidays: According to Sequoia Consulting Group, an HR consulting and services company based in San Francisco, 35% of companies give employees the week between Christmas and New Year’s Day off.

While this may take significant planning, employers can get ready to do it next year.

7.Give employees a choice when it comes to holiday gatherings. Holiday parties can be fun and a great morale booster—but they can cause stress for workers already stretched thin with lots of commitments or for any employee who would prefer to skip out on big events due to illness concerns.

Check in with your people to find out if they are still on board with the big holiday party or if they want to do something else this year. Go with the majority, but if there are people who might feel left out, offer a different option. Organizations should ensure that events are accessible by having spaces that consider employees with disabilities. Neurodiverse employees, for instance, may need spaces that respect sensory sensitivities.

It can appear tone-deaf if employees are feeling constantly under-resourced and exhausted from burnout, and the cost of the holiday party could have paid for those resources. Just because it comes out of another budget, it doesn’t mean employees won’t notice.

8.Offer opportunities to volunteer or give back. Giving back and helping others during this time of year may boost employees’ feelings of happiness. Employers can offer employees an opportunity to volunteer or participate in charitable giving. Employers can also consider offering workers a day of PTO to volunteer for a cause they are passionate about.

Offering employees an opportunity to give back to their communities can also bolster a sense of community and well-being.

9.Remember that employee situations are unique. The holidays can be a joyful time of year for many people, but they can be especially rough for many others. 

The holidays can be hard for people—particularly if they are attached to grief. It may feel like the pandemic is in the rearview, but the catastrophic impacts are still felt by many, especially at this time of the year. Also, the holiday season can feel exclusive for anyone who doesn’t celebrate it. Plus, loneliness is at an all-time high during the holiday season, which can make people feel even more excluded. Employers need to be sensitive to the unique experiences everyone is going through.

Employers and HR leaders could benefit from training managers to recognize the signs of high stress and anxiety among their workforces. These signs include but are not limited to absenteeism, irritability, lack of concentration and lower work quality, as well as withdrawn behaviors.

10.Celebrate employees during the holidays. Some employers give gifts to employees—from larger things such as an end-of-year bonus and extra PTO to smaller things such as a gift card or other present. But gifts are not the only way to celebrate employees. Recognizing their contributions, even with a letter or in-person praise, can boost employee confidence.

Celebrating employees during the holidays—in large and small ways—is important. It doesn’t have to be an extravagant holiday party; simply thanking employees for their efforts over the past 12 months can help to build morale.

New IRS Filing Threshold for 2023 Forms

The Internal Revenue Service (IRS) recently released draft instructions for preparing, distributing and filing 2023 Forms 1094-B/C and 1095-B/C. These instructions largely mirror guidance the IRS has published in previous years, except that the electronic filing threshold has been reduced from 250 forms to 10 forms aggregate.

For 2022 filing, employers could mail their Forms 1094 and 1095 to the IRS if their submission included fewer than 250 forms. For ACA filing for 2023 and future years, employers that cumulatively submit at least 10 forms to the IRS, including W-2s, 1099s, ACA forms 1094/1095, and other common form series, the employer must now file all of those forms electronically.

For example– if you are an employer who issues five Forms W-2 for 2023, four 1095-B forms for 2023, and one 1094-B Form for 2023, this is a sum collectively of 10 total forms and this employer must file all of these forms electronically with the IRS when its due in 2024.

This change result from a final regulation the IRS issued earlier this year that officially reduced the electronic filing threshold for many forms.

Employers that have historically submitted their Forms 1094/1095 to the IRS by paper will need to consider overall how many forms they will be filing with the IRS (not just Forms 1094/1095) in 2024 to determine whether they can continue to file via paper. Even if your carrier prepares you with paper copies of your 1094/1095 forms as a courtesy for submission to the IRS, you will still need to evaluate if you need to file those electronically in 2024.

Ultimately the 10 form aggregate threshold will necessitate electronic filing for nearly every employer. Anyone who has traditionally paper filed their ACA forms to consider contracting with a vendor or speak with their payroll company to see if they can confidentially e-File on their behalf in 2024.

The IRS guidance regarding the filing threshold is available online at https://www.govinfo.gov/content/pkg/FR-2023-02-23/pdf/2023-03710.pdf

2024 Health FSA Limit Increased

The IRS has released Revenue Procedure 2023-34 confirming that for plan years beginning on or after January 1, 2024, the health FSA salary reduction contribution limit will increase to $3,200.

The adjustment for 2024 represents a $150 increase to the current $3,050 health FSA salary reduction contribution limit in 2023.

What About the Carryover Limit into 2025?

The indexed carryover limit for plan years starting in calendar year 2024 to a new plan year starting in calendar year 2025 will increase to $640.

• Carryover Limit from a Plan Year Starting in 2023 to a Plan Year Beginning in 2024: $610
• Carryover Limit from a Plan Year Starting in 2024 to a Plan Year Beginning in 2025: $640

Other Notable 2024 Health and Welfare Employee Benefit Amounts

• Dependent Care FSA: The dependent care FSA limit remains fixed (with no inflation adjustment) at $5,000.
• HSA Limits: The IRS released the significantly increased 2024 HSA limits back in May. The individual contribution limit will be $4,150 (up from $3,850) and the family contribution limit will be $8,300 (up from $7,750).
• ACA Employer Mandate Affordability: The 2024 affordability safe harbor percentage decreases dramatically to 8.39% (down from 9.12%). This sets the federal poverty line affordability safe harbor at a $101.93 maximum monthly employee-share of the premium for the lowest-cost plan option at the employee-only tier.
• ACA Pay or Play Penalties: The 2023 annualized employer mandate pay or play penalties will increase to $2,970 (the Section 4980H(a) “A Penalty”) and $4,460 (the Section 4980H(b) “B Penalty”) annualized.
• ACA Reporting: The deadline to furnish 2023 Forms 1095-C to employees will be March 1, 2024. Last year, the IRS finalized regulations making permanent the 30-day extension from the otherwise standard January 31 deadline. Although the 30-day extension typically results in a March 2 deadline, that date is moved up to March 1 in 2024 because it is a leap year.
  Keep in mind that IRS did not extend the good faith enforcement safe harbor from penalties for incorrect or incomplete information on the Forms 1094-C and 1095-C (generally $310 per return in 2024).
  The Form 1094-C and copies of the Forms 1095-C must be filed electronically with the IRS by April 1, 2024 (March 31 is a Sunday). As a result of newly finalized IRS regulations, virtually all employers will need to file electronically. This will generally require engaging with a third-party vendor that can complete the electronic filing.
• PCORI Fee: The IRS recently released the July 2024 PCORI fee for plan years that end on or after October 1, 2023, and before October 1, 2024 (including 2023 calendar plan years) at $3.22 per covered life.

Tips to Battling Holiday Stress

Did you know that 88% of Americans report feeling stressed at some point during the holidays. During this episode of Myra’s Minutes, we share tips on how to battle holiday induced stress this season.

You can view this short video here.