News & Resources – Page 3

Updates to DC and Maryland Employment Laws (As of 6/4/24)

The DC and Maryland legislatures have introduced significant employment law changes. Learn more about the updates below, and contact us with any questions or need for support.

District of Columbia

Expanded Wage Transparency Laws

Starting June 30, 2024, DC wage transparency laws will expand upon its current regulations to cover:

Employers will no longer be able to screen applicants based on their wage history or request that applicants or past employers provide their wage history as a condition to be considered for employment. The rule does not prevent employers from asking as long as it isn’t a required answer.
Employers must inform applicants of eligible healthcare benefits prior to hiring them, and are encouraged to include this information on job listings.

Companies are required to display a notice about these changes in a physical or virtual location easily accessible to all employees.

New Voting Leave Regulations

On May 10, 2024, DC published new regulations on voting leave law, stating that workers do not have to provide more than 7 days’ notice to take voting leave unless an already existing policy requires more. The change requires employers to post the Time Off to Vote notice in a physical or virtual location easily accessible to all employees at least 60 days before all scheduled elections. If a notice is sent via email, employers must receive an acknowledgement of receipt.

MARYLAND

Paid Family and Medical Leave Insurance

Going into effect on October 1, 2024, Senate Bill 485 will bring substantial updates to the Paid Family and Medical Leave Insurance (FAMLI) program. Key changes include:

Contribution requirements now start on July 1, 2025, and benefit payments begin on July 1, 2026.
Employees must have worked at least 680 hours in the prior four quarters to qualify.
Set by Maryland’s secretary of labor by February 1, 2025, contribution rates include wages up to the Social Security wage base.
Employers opting out of the state program must use an approved private plan, subject to application and renewal fees.

Pay Transparency Law

Beginning on October 1, 2024, the Pay Transparency Law will require employers to disclose wage ranges, benefits, and other compensation details in job postings. Key details include:

The law applies to both public and internal job postings.
Employers must retain records of compliance for three years.

Enhanced Pay Stub Requirements

Maryland’s pay stub requirements have been updated to mandate more detailed earnings information, including the employer’s contact details, payment dates, hours worked, pay rates, and detailed deductions.

A state-provided pay stub template will be available. Non-compliance can result in penalties of up to $500 per employee.

Non-Compete Ban for Veterinary and Health Care Professionals

Coming into effect on January 1, 2024, non-compete agreements are banned for veterinary and healthcare workers earning less than 150% of the minimum wage.

We will continue to provide information on these changes and others as updates become available. If you have any questions on how you might be impacted or what policy changes your business needs to make, please contact me at edgar@officiumdc.com or schedule a time to talk here.

Recent Changes to U.S. Employment Laws & Regulations

The following HR compliance updates may impact your policies or operations.

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FTC BANS MOST NEW NONCOMPETE AGREEMENTS NATIONWIDE

The Federal Trade Commission has approved a final rule banning most new non compete clauses in employment contracts. The rule makes all existing noncompete agreements, except those covering senior executives and not-for-profit entities, unenforceable.

Senior executives are defined as those earning over $151,164 annually in a policy-making position.
The rule will likely go into effect on September 4, 2024, 120 days after its publication in the Federal Register, though delays are expected.
Employers should review their policies for compliance and consider alternatives such as non-solicitation or confidentiality clauses to protect business interests.

Our team will keep you updated as more information becomes available, but we recommend starting to consider how your current operations may be impacted, as the rule likely will remain in tact. Don’t hesitate to contact us with questions or for support in updating your current procedures.

NEW OVERTIME RULE RAISES SALARY LEVEL IN TWO PHASES

The U.S. Department of Labor has implemented a new overtime rule that will significantly increase the salary threshold for white-collar exemptions to overtime requirements in two phases:

Effective July 1, 2024, the FLSA’s annual salary-level threshold for white-collar exemptions to overtime requirements will increase from $35,568 to $43,888.
Effective January 1, 2025, the annual salary threshold will rise to $58,656.
The FLSA mandates overtime pay for the majority of employees and provides exceptions for certain job categories. Those employees who qualify for overtime pay are labeled as “nonexempt,” while those who do not qualify are termed “exempt.”

Employers are advised to budget for salary and overtime expenses, plan reclassification strategies, and consider compliance with state and local wage laws.

EXPECT MORE HR INVOLVEMENT IN JOB TRANSFERS

The U.S. Supreme Court recently ruled that employees who challenge a job transfer as discriminatory or retaliatory only need to demonstrate “some harm” rather than “significant injury” under the Civil Rights Act of 1964.

This ruling lowers the threshold for employees to show that a job transfer has impacted their working conditions when accusing their employer of discrimination.
Employers must carefully consider an employee’s job transfer and ensure that there are legitimate business reasons for such a decision.
Any complaints of discrimination must be promptly investigated.

NEW PREGNANT WORKERS FAIRNESS ACT REGULATIONS

On April 15, 2024, the EEOC issued its final rule implementing the Pregnant Workers Fairness Act. The final rule will become effective on June 18, 2024, and will require covered employers to provide reasonable accommodations to qualified employees or applicants with known limitations due to pregnancy, childbirth, or related medical conditions. Accommodations can include:

Physical adjustments, such as providing a stool or lightening manual labor
Telecommuting
Going on leave
Nursing during work hours
Changing work assignments

Employers are not required to provide accommodations if they would cause an undue hardship on their business.

IN CASE YOU MISSED IT: NEW UPDATE BLOCKS RECENT NLRB JOINT EMPLOYMENT RULE

You may have received an update from us in the beginning of the year concerning an upcoming change to joint employment regulations. Recent litigation has prevented the new rule from becoming effective for the time being, and we will keep you updated as we learn more.

Fostering Safety for LGBTQIA+ Employees

Cultivating a safe and inclusive work environment for LGBTQIA+ employees is critical for fostering a sense of psychological safety – an essential ingredient for high-performing teams.

Managers and leaders play a pivotal role in ensuring that LGBTQIA+ employees feel valued and respected. Here are a few tips from the Officium team on how you can achieve this:

Become Familiar With Psychological Safety

Psychological safety is a concept that allows all team members to feel secure enough to take risks and be vulnerable without fear of negative consequences in the workplace. This is particularly important for LGBTQIA+ employees, who may feel the need to hide or protect aspects of their identity to avoid stigma and exclusion. It can be a significant barrier to feeling fully integrated into the team.

Leaders Should Set The Standard

It’s up to leaders of the organization to normalize inclusive practices like using pronouns, educating themselves on bias and microaggressions, and being respectful to all.

Address Microaggressions or Blatant Discrimination Immediately

The psychological impact of being a victim of microaggressions, discrimination and harassment can be detrimental to a person’s mental health and self esteem. It’s critical that all situations undermining someone’s identity be addressed immediately with proper repercussions that instill feelings of safety. These moments should be used to educate and reinforce the importance of respectful communication.

Respect Privacy and Autonomy

Allow employees to disclose their identities if and when they should choose to. Never assume or pressure individuals to come out or discuss their personal lives. This rings true both in and out of the workplace.

Be an Active Ally

Employers who prioritize equity and inclusivity should actively support their LGBTQIA+ employees by educating themselves about the culture and challenges, and publicly standing against discrimination.

Provide Equitable Benefits

HR policies should never depict bias towards any group, and all employees should feel they are benefiting from their company’s benefits offerings.

With these actions, leaders can create a workplace where LGBTQIA+ employees feel a strong sense of belonging. This, in turn, leads to greater engagement, commitment, and innovation. The ultimate goal is a work environment where everyone feels free to be their authentic selves, contributing fully to the team’s success.

If you have any questions surrounding this topic or would like to establish more inclusive policies, please contact me at edgar@officiumdc.com or schedule a time to talk here.

Here’s Why Skills-Based Hiring May Be Your Company’s Key to Success

In the fast-evolving landscape of recruitment, traditional hiring practices are increasingly being recognized as outdated and ineffective. With global unemployment projected to reach 208 million, despite a vast pool of job seekers, it’s obvious that a new approach is needed. This is where skills-based hiring comes in.

Skills-based hiring, also known as a skills-first approach, focuses on evaluating candidates based on their skills, capabilities, and talents instead of their educational background or degree.

Traditional hiring protocols often rely on screening tools that prioritize keywords and educational qualifications, which can sometimes be misleading and discriminatory. Resumes may not accurately reflect a candidate’s abilities, leading to missed opportunities for talented individuals. Skills-based hiring, on the other hand, allows recruiters to assess candidates directly based on their relevant skills, fostering a more accurate and fair selection process.

Skills-based hiring is gaining traction for several reasons, including:

Efficiency: By focusing on specific required skills, employers can streamline the hiring process, reducing time and resources spent on evaluating candidates who may not have the necessary skills.

Accuracy: Skills-based hiring allows employers to target candidates who have the exact skills needed to perform the job effectively, increasing the likelihood of finding candidates who can hit the ground running and contribute to the company’s success from day one.

Diversity and Inclusion: Skills-based hiring can help mitigate bias in the hiring process by focusing on objective criteria rather than subjective factors like pedigree or personal connections. This can lead to a more diverse workforce, as candidates from various backgrounds have an equal opportunity to demonstrate their skills.

Future-Proofing: In a rapidly evolving job market, skills-based hiring enables employers to identify candidates with transferable skills that can be applied to new roles or technologies as they emerge. This helps future-proof the workforce and ensures that employees remain relevant and valuable in the long term.

Overall, skills-based hiring aligns with the modern workplace’s demand for agility, efficiency, and diversity, making it an attractive approach for many employers.

If this is a strategy you’re interested in learning more about, please contact me at edgar@officiumdc.com or schedule a time to talk here.

Recruiting for a Diverse Future

Establishing a diverse workforce isn’t only an ethical choice, but a good business decision, as research has consistently shown that diverse teams regularly outperform homogeneous workforces when it comes to problem-solving and decision-making.

While there are many perks to cultivating a diverse team, one main finding is that diversity of thought fosters creativity and innovation, as team members have the ability to use their individual experiences and backgrounds to approach complex problems from different angles, offering unique solutions and exciting new opportunities for success.
Another positive is that diverse hiring strategies broaden the talent pool.

When recruiters remove bias, it opens the door for highly talented and actively looking candidates from a variety of age, race, gender, ability and skill groups that could be a team’s missing piece. This not only enhances the quality of hires, but also promotes a more inclusive and equitable workplace culture which can boost a brand’s reputation and set them apart from competitors.

Last but not least, being intentional about diversity in hiring can improve employee engagement and retention, as employees may feel more valued and engaged when they see themselves represented in the workplace. When individuals feel that their presence and contributions are appreciated, it can lead to higher levels of job satisfaction and loyalty.

However, recruiting with diversity and equity in mind requires proactivity. For example:

Companies should establish clear diversity goals like improving diversity in leadership roles

Recruiters/hiring managers should participate in implicit bias training to mitigate any unconscious biases that could influence their decision-making

Companies should differentiate their efforts by attending career fairs targeted towards minority groups, advertising openings on platforms catering to diverse communities, and sharing their DEI commitment in job listings

These examples are just the beginning of a long list of strategies to diversify your workforce. I’d love to share additional ways to incorporate more inclusive and intentional hiring practices into your processes.

Please contact me at edgar@officiumdc.com or schedule a time to talk here.

The Rise of Clean Slate Laws in the U.S.

A glimmer of hope is emerging for individuals with backgrounds through the introduction of clean slate laws. With nearly 100 million individuals in the U.S. living with various forms of records, predominantly stemming from minor infractions like arrests and nonviolent misdemeanors, the need for reform is long overdue.

The two laws that are leading the way towards change are the Clean Slate Act of 2023 and the Fresh Start Act.

The Clean Slate Act aims to help individuals clear their federal records, and the Fresh Start Act proposes federal funding to bolster the implementation of state-level record clearance laws. These initiatives, though distinct in their approaches, share a common goal: to provide a second chance to those burdened by past transgressions.

Unlike traditional expungement processes, which often entail complex legal procedures and hefty fees, clean slate laws offer a streamlined pathway to record-clearing. By automating the clearance process based on predefined waiting periods and crime-free behavior, these laws aim to alleviate the burden on individuals seeking redemption.

As society and the modern workplace lean into inclusivity and fairness, clean slate laws represent hope for millions striving to rebuild their lives.

If you have any questions surrounding this topic, please contact me at edgar@officiumdc.com or schedule a time to talk here.

Navigating the Political Minefield: Can Your Job Survive Your Beliefs?

In the age of social media activism, it’s easy to forget that publicizing our political beliefs can have serious consequences, particularly in the workplace.

Technically, there’s no federal law protecting employees from political discrimination. In fact, in most states, you can legally be terminated if your employer doesn’t agree with your political beliefs.

When it comes to your legal protections, it’s important to understand the difference between affiliation and action, and there’s a fine line between discriminating against someone for their political beliefs as opposed to their political actions. The former targets who you vote for, while the latter takes aim at what you do to support your cause, like attending rallies or posting on social media. Some states protect you on both fronts, and others may only cover one.

While it may be legal to be terminated for how you lean politically, it may not be the best move in workplaces hoping to foster a culture that promotes inclusivity and embraces diversity – integral characteristics of a healthy work environment.

As we head into an election year, it’s so important to lead with empathy and for employers to be transparent about any possible repercussions that may arise around political activities inside and outside of the workplace.

If you have questions about how to navigate political conflicts at work or would like assistance drafting employee policies surrounding this topic, please contact me at edgar@officiumdc.com or schedule a time to talk here.

New DC Laws on the Expansion of Minimum Wage and Pay Transparency

This year, the District of Columbia has introduced significant new laws concerning the local minimum wage and pay transparency. These changes signal a big step forward for fair compensation and equity for D.C. workers. As an employer, it’s important to ensure that you are aware of these updates and implement them properly into your business operations.

The Expansion of D.C.’s Minimum Wage

Signed on January 10th, the new amendment on minimum wage extends coverage of the previously established law to include individuals working two or more hours a week in the District of Columbia.

Prior to this change, the minimum wage law primarily covered workers who spend over 50% of their working time in D.C. and those based in the city. Now, even folks who spend limited time in the area will be entitled to these protections and benefits for the hours they have worked within the district.

This law does not include employees who work across multiple states in the same week, as employers are only required to pay employees the minimum wage in each specific state they are conducting their work in.

Another key update that will come into effect on July 1, 2024 is an hourly rate increase to $17.50 per hour (a 50 cent increase) for non-tipped employees and $10.00 per hour (a $2 increase) for tipped employees.

Pay Transparency Laws

Earlier this year, the Wage Transparency Omnibus Amendment Act was signed in D.C. law. The act mandates increased transparency in hiring practices and offers greater protections for employees.

Set to take effect on June 30, 2024, businesses with at least one employee in D.C. will be required to display pay ranges and prospective benefits information within their job postings.

The new regulation does leave room for interpretation, as it is not yet clear whether the act covers jobs outside of D.C., including remote positions; a caveat that I believe will soon be addressed along with other clarifications.

In a step toward promoting equity in hiring, the law also prohibits employers from requiring applicants to disclose their wage history to avoid decision making based on their past income.

Employers will be required to post a notice highlighting the act in their workplace to inform workers of their new protections.

If you have any questions about these changes or would like assistance in reviewing and updating your policies to ensure compliance, please contact me at edgar@officiumdc.com or schedule a time to talk here.

Deepfake Scams: Safeguarding Your Workplace

As employers become increasingly reliant on artificial intelligence (AI), cyber-criminals have found new ways to negatively exploit this technology. One of the most alarming examples is the rise of deepfake scams, where unsuspecting individuals are manipulated into handing over sensitive information or funds, resulting in sophisticated attacks on a company’s finances and operations.

Hackers are utilizing AI-generated deepfake content such as convincing audio and visual simulations of corporate executives. An example of this is a real-life situation in which an individual deceived an employee via a fabricated video call where they believed they were engaging with their company leaders. Unaware of the scheme, this call resulted in the employee initiating a bank transfer of over $25 million at the “executives” request, leading to extreme financial loss for the company. Unfortunately, this type of attack is not uncommon.

Protecting against this form of fraud requires heightened awareness and proactive measures within organizations, as well as the implementation of strong authentication systems. If you believe you are experiencing a deepfake scam, it’s crucial to take immediate action by consulting your legal team and law enforcement.

As the threat of AI-generated scams continues to increase, companies should remain vigilant and proactive in their approach to cybersecurity. Employers may also benefit from educating employees on potential or known scams, and seeking legal guidance on how to react to possible strikes.

If you have any questions about this increasingly relevant issue or want to talk through strategies to safeguard your business, don’t hesitate to contact me at edgar@officiumdc.com or schedule a time to talk here.

Benefits and Introduction of Hybrid Work Models

Post-pandemic, 74% of U.S. companies have opted to incorporate hybrid workplace models. This modern landscape isn’t one-size-fits-all, and is instead, company-specific and promotes a human-centric approach that’s focused on flexibility, collaboration, autonomy and empathetic leadership.

Studies show that hybrid schedules also address the shortcomings of remote work experienced during the pandemic such as trouble managing workplace culture, decreased engagement, inability to establish and maintain relationships, and poor access to support from leadership.

In addition to these factors, a hybrid workplace landscape in many ways has had a positive impact on long-standing workplace accessibility and equity issues for workers with disabilities and medical conditions, those with caregiver responsibilities, and more.

Hybrid work models don’t look the same at every company, and they shouldn’t. Each company comes with their own workplace culture and employment needs. However, there are a few popular formats, including:

Designing an environment that promotes safety and inspiration. This may include offering a variety of comfortable or private workspace options, access to team-building opportunities such as a pingpong table or outdoor picnic spaces, and free energy-boosting refreshments such as coffee/tea and healthy foods.

Mandating that employees be present in the office a set number of days per month chosen by them. This provides workers with the flexibility to choose a schedule that works for them and their responsibilities outside of the workplace such as childcare and medical appointments.

Hosting company or team-wide meetings and opportunities/training for career advancement in the workplace to encourage relationship building and connectivity.

Despite the aforementioned benefits of hybrid work, it can still be met with some hesitancy, especially when transitioning back from a fully remote environment. Because of this, it’s important that:

Employers are intentional and transparent with employees about the reason and desired outcomes for incorporating a hybrid schedule.

Employers aim to support employees with barriers and hardships that returning to the office might bring, such as transportation expenses, travel time, childcare costs and family responsibilities. To combat this, companies should consider providing paid parking, flexible schedules, transit passes, childcare stipends, etc.

Hybrid work structures will likely be the way of the future, as studies show that this type of schedule results in increased productivity, company loyalty and overall well-being of employees from all levels. If you’re considering establishing a hybrid work model and would like to discuss examples and a format that might work best for your company, please reach out to edgar@officium.dc or schedule a meeting here.