Effective January 1, 2018
Federal
Treasury Guidance for 2018 Withholding Calculations Expected Shortly
The Tax Cuts and Job Acts (the Act) authorizes the Treasury Department to permit employers to apply existing wage withholding rules and calculations throughout 2018. Although new federal income tax tables and rates will take effect on January 1, there may be a delay in release of withholding tax guidance from the U.S. Treasury Department for employers. In the meantime, the Internal Revenue Service (IRS) has explained that employers may use existing (2017) withholding tax tables and guidance until new guidance is released.
The IRS is reviewing the new tax law and preparing to implement provisions that will affect individuals, businesses and employers in the weeks and months ahead. Stay up to date on the 2018 federal withholding rules and other changes by reading the IRS e-News for Tax Professionals newsletter, following the IRS on Twitter at @IRSTaxPros and bookmarking the newsroom on IRS.gov.
Minimum Wage
Under federal law, employers must pay covered nonexempt employees a minimum wage of at least $7.25 per hour. An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the Federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the Federal minimum hourly wage, the employer must make up the difference.
Many jurisdictions have higher minimum wage rates, some of which will increase at the end of 2017 or start of 2018. Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage. In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails.
Please review the Eye on Washington article “Legislative Trends: Upcoming Increases to Minimum Wage Round-up – 2018”.
ARIZONA
Arizona Updates Frequently Asked Questions on Fair Wages And Healthy Families Act
The Arizona Industrial Commission of Arizona (ICA) issued a list of frequently asked questions (FAQs) on the “Fair Wages and Healthy Families Act” (Prop. 206). On May 19, 2017, the ICA updated the FAQs to include more information on both the minimum wage and earned paid sick time provisions.
CALIFORNIA
New California Employment Laws in 2018
The purpose of this report is to provide a summary of some of the major laws that may impact your operations and to help you plan and prepare for these new compliance challenges.
State Wide Ban on Salary History Inquiries Enacted in California
The fourth state to outlaw inquiries into an individual’s salary history. The new law continues the expansion of equal pay protections in California and furthers the state’s effort to address the gender pay gap by imposing additional restrictions on employers’ pre-employment communications with applicants for employment. In anticipation of the effective date, you should familiarize yourself with your new obligations under the law.
San Francisco Passes Lactation in The Workplace Ordinance
The Ordinance expands federal and California law regarding lactation in the workplace by requiring that nursing mothers be provided a room that is safe, clean, and free of toxic or hazardous materials to express milk. The room must also contain a surface to place a breast pump and other personal items, have a place to sit, and have access to electricity, a refrigerator, and a sink. The room may be used for multiple purposes, but employees must be put on notice that lactation takes precedence over other uses for the room.
California Provides Protections For Immigrant Employees
California Governor Jerry Brown signed 11 bills, making California a sanctuary state. The Immigrant Worker Protection Act (IWPA) is one of the 11 bill signed, and it is the most relevant to employers. With the signing of the IWPA, California became the first state to explicitly affirm the rights of immigrant workers at the worksite. The bill imposes an affirmative obligation on California employers to provide employees notification that the United States Immigration and Customs Enforcement agency (ICE) has determined they are lacking work authorization, thereby giving them advance warning that ICE may be considering their apprehension and removal from the U.S. through a workplace raid.
NEW YORK
Final New York Paid Family Leave Regulations Published
The Workers’ Compensation Board adopted the final regulations (published May 16, 2017), for New York’s new Paid Family Leave Benefits Law (PFL) on July 19, 2017. In addition to paid benefits, eligible employees have the right to a leave of absence and guaranteed reinstatement even if they are not protected by the Family and Medical Leave Act (FMLA). Employees can begin to exercise their right to benefits on January 1, 2018
VERMONT
Vermont Mandates Reasonable Accommodations for Pregnant Employees
Vermont amended its Fair Employment Practices Act (VFEP) to prohibit an employer from failing or refusing to reasonably accommodate an employee’s pregnancy related condition. The amendments establish that it is an unlawful employment practice for an employer to fail to provide a reasonable accommodation for an employee’s pregnancy-related condition, unless it would impose an undue hardship on the employer.
WASHINGTON
Paid Sick Leave
Starting January 1, 2018, employers in the state of Washington will be required to provide certain employees with paid sick leave. An employee shall accrue at least one hour of paid sick leave for every forty hours worked as an employee. Click here to review the complete details of Initiative Measure No. 1433.