The Latest Labor Compliance Updates - July 2023

Here is a brief look at updated Labor Compliance laws as of July 2023. We cover everything from COVID-19 compliance to state and local initiatives. While our “Roundup” does not provide legal advice, it does seek to alert our customers to the myriad of issues and challenges that arise in our industry. If you have any questions or would like to learn more, connect with us at [email protected].

New State and Local Laws Across the United States

Illinois Paid Leave for All Workers Act, effective January 2024

The Paid Leave for All Workers Act was signed by Governor J.B. Pritzker of Illinois on March 13, 2023. Employees are permitted to take leave “for any reason of their choosing” under the Act. A minimum of one hour of paid leave must be accrued for every 40 hours worked by the covered employees beginning January 1, 2024, or when employment begins, for a total of 40 hours of paid leave per 12-month period. After 90 days of employment with the employer, or March 31, 2024, whichever comes first, employees can begin taking leave. Additional information is available here.

Florida E-Verify law, effective July 2023

On May 10, 2023, Florida Governor Ron DeSantis signed SB 1718 into law. The legislation requires that all private employers in Florida with 25 or more employees must use the E-Verify system in addition to completing Form I-9 for new employees hired on or after July 1, 2023. Employers are required to keep copies of supporting documentation for employment eligibility verification for 3 years. In the event that the Department of Economic Opportunity determines that an employer failed to use the E-Verify system as required 3 times in a 24-month period, the department will impose a $1,000 daily fine until the noncompliance is remedied, which can also lead to suspension of employer licenses after multiple findings of noncompliance. Penalties will go in effect on July 1, 2024. Additional information is available here.

Bloomington, MN Earned Sick and Safe Leave, effective July 2023

Bloomington, MN has enacted a new Earned Sick and Safe Leave ordinance for all employers with 5 or more employees, effective July 1, 2023. The Earned Sick and Safe Leave provisions do not preempt other local paid and sick leave and safe time laws in the state. Employees will accrue 1 hour of leave for every 30 hours worked, up to an annual accrual cap of 48 hours. Additional information is available here.

Minnesota Earned Sick and Safe Leave, effective January 2024

Minnesota has enacted a statewide Earned Sick and Safe Leave ordinance for all employers with 1 or more employees, effective July 1, 2023. Employees will accrue 1 hour of leave for every 30 hours worked, up to an annual accrual cap of 48 hours. Additional information is available here.

Washington Cares Fund, effective July 2023

The WA Cares Fund is a mandatory long-term care insurance benefit established by Washington state law in 2019. Contributions to the WA Cares Fund begin July 1, 2023. The WA Cares Fund will be supported by a premium paid by employees. Employees should start seeing a WA Cares Fund premium deduction on their paystubs beginning in July 2023. Benefits will be available to eligible employees beginning July 1, 2026. Additional information is available here.

New Federal Labor Laws in the United States

I-9 COVID-19 temporary flexibilities expire, effective July 2023

U.S. Immigration and Customs Enforcement has announced that the temporary COVID-19 accommodations for Form I-9 will end on July 31, 2023. After the COVID-19 flexibilities are rescinded, employers who have been performing remote I-9 inspections using the temporary policy will need to revert to pre-covid requirements, including but not limited to remote workers. Employers will have until August 30, 2023, to physically inspect original documents and update Form I-9 for employees whose documents were inspected remotely during the temporary COVID-19 flexibility. Additional information is available here.

Pregnant Workers Fairness Act

The PWFA requires employers with at least 15 employees to provide reasonable accommodations to pregnant employees and job applicants with temporary physical or mental limitations due to pregnancy, childbirth, or related conditions unless the accommodation would cause the employer an undue hardship. Additional information is available here.

COVID-19 Updates 

The City of Los Angeles ended the COVID-19 local emergency, effective February 2023

The City of Los Angeles’ COVID-19 local emergency ended on February 1, 2023, triggering the sunset provision of its supplemental paid sick leave ordinance, which came to an end two weeks later on February 15, 2023. Employers are no longer required to provide supplemental paid sick leave to their employees. Additional information is available here.

Los Angeles County ended the COVID-19 local emergency, effective March 2023

The supplemental paid sick leave ordinance in Los Angeles County came to an end on April 14, 2023, two weeks after the end of the Covid-19 local emergency on March 31, 2023. Employers are no longer required to provide supplemental paid sick leave to their employees. Additional information is available here.

Colorado COVID Public Health Emergency Leave expiration, effective June 2023

With the ending of the national COVID-19 Public Health Emergency, employers in Colorado are no longer obligated to provide employees with the supplemental PHE Leave as of June 8, 2023. Additional information is available here.