2020 U.S. Compliance Updates
There’s a LOT to take in when it comes to US compliance, especially after the 2020 updates were released, but that’s why we’re here – to simplify it! Here’s a breakdown of some of the main changes you need to know for 2020.
Independent contractors ABC Test California: California recently passed Assembly Bill 5 (AB5), which is estimated to convert 65% of the state’s ICs to W2s as of January 1st. Get up to speed on what these changes mean here.
DOL Increases salary level for overtime: The minimum yearly salary for overtime eligibility has increased from $23,660 to $35,568 beginning January 1st. Exempt employees must be paid a minimum of $684 per week.
Salary history bans. Mind your Ps and Qs in New Jersey, New York State, and Cincinnati, Ohio – these three jurisdictions have joined the many others that have already instituted salary history bans. Employers based there will be prohibited from inquiring into or requesting a job applicant’s salary history to determine the compensation or meet a minimum requirement to be interviewed as of January 1st.
Minimum wage increases: Yearly rate increases are coming in 2020 for New York, California, and Chicago. New York – for employers outside of New York City, the minimum wage is $11.10 per hour. Beginning on January 1st, all employees in New York City must be paid a wage of at least $15.00 per hour.
HSA increases: The IRS has announced increased limits for health savings accounts (HSA) for 2020. Participants with self-only health coverage will rise by $50, with a $3,550 contribution limit. HSAs linked to family coverage will have their contribution limit increased by $100, and a $7,100 annual limit. Individuals 55 years or older will receive the same Contribution and Out-of-Pocket Limits of $1000.
Commuter benefits increase: Commuter benefits are offered to employees who take public transportation or pay for parking pre-tax savings. The IRS has increased these pre-tax limits to $270 for both mass transit and parking in 2020.
Sexual harassment: Several states have taken action to provide stronger prevention practices in the workplace. These legislation efforts require employers to provide sexual harassment training for employees and supervisors. Requirements vary by state, which includes: Maine, Connecticut, California (on hold until 1/1/21), New York, Illinois, and Delaware.
If you have questions on any of the above American compliance laws, feel free to reach out!
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.