Government Liaison Officer Report - October 2024

Federal

-Fifth Circuit Vacates 2021 DOL "80/20/30" rule for tip credits and tipped employees

• Removes the limitation where employers could not utilize a tip credit when a tipped employee performed non-tip producing work more than 20% of their time or for 30 consecutive minutes

-2025 Social Security wage base announced to increase to $176,100

Tri-State Area

Indiana

• 10/1 Indiana County rate changes: Decatur (16) to 2.45%, Fayette (21) to 2.82%, Fulton (25) to 2.88% & Henry (33) to 2.02%. See updated Indiana Departmental Notice 1

Kentucky

• Winchester, KY rate increase from 2.0% to 2.15% effective 10/1/24

Outside of Tri-State

-Alabama updates definition of overtime used for exempt wages from “hourly employee hours over 40” to follow the FLSA overtime definition eff. 10/1. See agency FAQs

•Definition change expands overtime exempt wages to include salary non-exempt employees

-Irondale, AL rate decrease from 0.75% to 0.5% effective 10/1/24

-Maryland Pay Transparency changes effective 10/1 – salaries/pay ranges required in job postings & increased pay statement data elements required

Government Liaison Officer Report - July 2024

Federal

-REMINDER DOL Final Overtime Rule effective 7/1/24 white collar exempt wage threshold increasing from $684/week to

$844/week. Additional increase to $1,128/week eff. 7/1/25

  Legal challenges continue, currently on hold for Texas state employees

-Supreme Court overturns Chevron rule that previously allowed federal agencies to interpret ambiguous laws; agency rules will

be more subject to court challenges & employers will need to follow court rulings as they develop

Tri-State Area

Ohio

• Updated withholding formula, top tier rate decrease effective 7/1/24
• Bellefontaine increase to 1.6% 7/1, NEW RITA taxes eff. 7/1 Blanchester (1%), College Corner (1%), Glenmont (1%), Holmesville (1%)

Kentucky

• Bourbon County increase to 1.25%, Flemingsburg increase to 1.5%, Grant County increase to 2.5% & Warsaw increase to 1.75% all eff. 7/1

Outside of Tri-State

-REMINDER States and territories with minimum wage increases effective 7/1/2024: District of Columbia, Nevada*, Oregon and Puerto Rico

*Nevada daily overtime in a rolling 24hr span owed for employees making $18/hr or less

-DC Paid Family Leave employer contribution rate increased from .26% to .75% effective 7/1/24

-States with mid-year withholding changes: Georgia (7/1), Idaho (5/21), Kansas (7/1), Utah (6/1) & Virginia (4/1)

  Changes passed awaiting updated agency guidance: Arkansas, Colorado, South Carolina

-Vermont Child Care Contributions began 7/1 (employer tax of .44%, can withhold up to .11% from employees)

Government Liaison Officer Report - May 2024

Federal

-DOL Final Overtime Rule released April 23, 2024; white collar exempt wage threshold increasing from $684/week to

$844/week eff. 7/1/24. Additional increase to $1,128/week eff. 7/1/25

         Increase in threshold impacts an estimated 3.6 million workers

-The EEOC opened 2023 EEO-1 Data Collection on 4/30/24; deadline for submission is 6/4/2024

         NOTE – EEO-1 Sample Report has removed the numerical digits from the job categories

-Biden vetoed the measure to block the NLRB joint employer rule, House failed to override veto. Legal challenges expected

to continue

Tri-State Area

Ohio

• Bellefontaine, OH rate increase from 1.333% to 1.6% effective 7/1/2024

Outside of Tri-State

-States and territories with minimum wage increases effective 7/1/2024: District of Columbia, Nevada, Oregon and Puerto

Rico

-Chicago Paid Leave accrual changes effective 7/1/2024; 40 hours sick leave & 40 hours paid leave for any use both earned

at 1 hour for every 35 worked

-NY State passed first of its kind paid prenatal leave (effective 1/1/2025) for healthcare services relating to pregnancy

-Pay transparency laws (wage ranges in job postings) required for D.C. eff. 6/30/24, Maryland eff. 10/1/24 & Illinois eff.

1/1/25 & Minnesota 1/1/25

Government Liaison Officer Report - April 2024

Federal

-The National Labor Relations Board’s (NLRB) joint employer rule faces continued legal challenge as the Senate approved a measure to block the regulation. President Biden is expected to veto the Senate resolution.

•   The joint employer rule changes when two companies share union obligations & liability for labor violations

-The EEOC to open 2023 EEO-1 Data Collection 4/30/24

Tri-State Area

Ohio

• RITA to require work from home indicator for remote employees as part of employer file effective Q2 2024

 

Outside of Tri-State

-California Pay Data Reports Due May 8 2024 (https://calcivilrights.ca.gov/paydatareporting/ )

-California FAST Act increased minimum wage for quick service industry effective 4/1/24 ($20 per hour); exceptions were passed for quick service within theme parks, hotels, airports & stadiums

-Virginia withholding formula updated effective 4/1/2024 with an increased standard deduction amount

-Virginia governor vetoes bills for paid family & medical leave & pay transparency mandates

Government Liaison Officer Report - March 2024

Federal

-IRS released final 2024 versions of 941, 944 and 1099R

• COVID related credits and line items removed

Tri-State Area

Ohio

•Marion, OH retroactively changed reciprocity credit to 100% back to 1/1/2023

•South Bloomfield & Urbana OH joined RITA effective 2/1/2024

•Washingtonville OH joining RITA effective 4/1/24; rate increasing from .5% to 1% eff. 4/1/24

•Ohio Supreme Court upheld Schaad v. Alder ruling that allowed temporary taxation by municipalities based on employer location rather than employee physical remote location during the pandemic

 

Outside of Tri-State

-Pennsylvania passed Act 34 of 2023 last December, quietly changing the taxation of Dependent Care Assistance from taxable to exempt for PA state and PA earned income taxes backdated to the start of 2023. PA Dept of Revenue just posted guidance on correcting 2023 in late February 2024

-Massachusetts released updated guidance on calculating the new surtax on supplemental wages

-Michigan Appeals Court ruled income tax cut is temporary

Government Liaison Officer Report - February 2024

Federal

-DOL Issued final rules on worker classification including a new FAQ section; final rule is eff March 11

-Reminder: IRS lowered the threshold for electronic filing to 10 forms in 2024

-Three States & US Virgin Islands face 2024 FUTA Credit Reduction

  -California, Connecticut & New York

-Most defaulted student loan garnishments remain canceled through Sept 2024

Tri-State Area

Ohio

• Effective 1/1/2024, individuals under 18 are exempt from Ohio Municipal taxes 
• • Does not include School District taxes

 

Outside of Tri-State

-California 2023 Pay Data Report due May 8, 2024 with minor changes from previous year. New templates, instructions &

FAQs available on calcivilrights.ca.gov/paydatareporting/

-Colorado Paid Family Leave changed their wage definition for 2024 to include pre-tax amounts; previously followed the

unemployment wage definition

Government Liaison Officer Report - October 2023

Federal

•SSA released 2024 Social Security wage base ($168,600)

•Reminder Employers must use the new I-9 form starting with employees hired Nov 1 and after

•EE0-1 2022 Data Collection to open October 31, 2023

•DOL new overtime salary exemption threshold open for comments until November 7th

•Increase threshold to $55,068 for white-collar exemption to overtime

•IRS delayed enforcement of Secure 2.0 Section 603 until 2026

•Sec 603 - Requiring catch-ups to be Roth for individuals who earn $145,000 or more in the prior calendar year

Tri-State Area

Ohio

•Ohio released an updated withholding guide reflecting recent tax cuts; withholding change is effective Nov 1 2023

Indiana

•Five Indiana Counties changed rates effective 10/1/23

•Adams (1.6%), Clinton (2.65%), Dearborn (1.4%), Henry (1.8%) & Vanderburgh (1.25%)

Outside of Tri-State

•California required sick leave increasing from 3 days (24 hours) to 5 days (40 hours), carryover increasing from 48 hours to 80 hours effective 1/1/2024

•Colorado Paid Family & Medical Leave changing wage definition to include pre-tax deductions eff. 1/1/2024

•Illinois – Cook County/Chicago area will require commuter/transportation benefits for employers with 50 or more employees within the Cook County transit area eff. 1/1/24