What do employers need to keep on their radar in terms of compliance issues for 2023? Littler, one of the nation’s preeminent employment law firms, is a source we turn to frequently on employment law matters and trends, so we were happy to see their recent post Ones to Watch: Legislation Landscape for 2023. In this excellent summary, they identify and offer an overview of emerging compliance issue trends for 2023, informed by legislative activity in the first quarter:
Hot topics this year include workplace freedom of speech, reproductive health, the use of artificial intelligence in personnel decisions, pay transparency, family status and family caregiving discrimination, sexual orientation and gender identity discrimination, prohibitions against antisemitism, marijuana legalization, and COVID-19 and non-COVID-19 vaccination mandates in the workplace.
Authors Maureen H. Lavery and Hannah T. Stilley frame each of these issues and discuss specific state legislative activity for each. This is an excellent summary that will get you up to speed on these key topics.
Another overview that we found helpful is Extensis HR’s post New Employment Laws 2023: What SMBs Need to Know, in which ExtensisHR’s Senior Director of Training and Compliance addressees six key regulatory issues that should be on your radar for all small and medium businesses. These include:
- Minimum wage regulations
- Pay transparency laws
- Employee leave rules
- Artificial intelligence (AI) regulations
- Non-compete agreement limitations
- Marijuana laws
She discusses each and points to examples or initiatives in various states.
Minimum Wages in 2023
More than 20 states have either already increased or will increase minimum wages on 2023. While most increases went into effect at the beginning of the year, at least 4 states have upcoming increases. Here are good sources for staying on top of state minimum wage laws.
- DOL: State Minimum Wage Laws
- The Economic Policy Institute: Minimum Wage Tracker
- Littler: Minimum Wage, Tipped and Exempt Employee Pay Increases on January 1, 2023
- ADP: Your Guide to 2023 Minimum Wages
- Paycor: Minimum Wage by State 2022 and 2023 Increases
Pay Transparency laws
One of the hot issues in 2022 was pay transparency. In 2023, the push for related legislation is accelerating. Gov.docs lists the following states and municipalities where laws already exist in their recently updated post on Pay Transparency Laws:
- California – effective Jan. 1, 2023
- Colorado – effective Jan. 1, 2021
- Connecticut – effective Oct. 1, 2021
- Maryland – effective Oct. 1, 2020
- Nevada – effective Oct. 1, 2021
- Jersey City, N.J. – effective April 13, 2022
- Ithaca, N.Y. – effective Sept. 1, 2022
- New York City – effective Nov. 1, 2022
- Westchester County, N.Y. – effective Nov. 6, 2022
- Cincinnati – effective March 13, 2020
- Toledo, Ohio – effective June 25, 2020
- Rhode Island – effective Jan. 1, 2023
- Washington – effective Jan. 1, 2023
As for upcoming laws that under consideration in 2023, the Littler article at the top of this post identifies states to watch:
In 2021 and 2022, a handful of jurisdictions amended their pay equity laws to foster greater pay transparency by requiring employers to disclose the rate of pay or a range of pay rates in any job posting or advertisement for a position. In 2023, the floodgates have opened with about a quarter of U.S. states and major cities having introduced similar legislation, including Alaska, the District of Columbia, Georgia, Hawaii, Illinois, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Jersey, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Vermont, Virginia, and West Virginia.
In addition to those states, Littler says that three jurisdictions that currently have pay transparency laws on the books – New York state, New York City. and Colorado – have introduced bills in 2023 that would expand current disclosure obligations.
Follow our blog for more on regulatory and compliance issues as the year progresses.
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