As we step into the new year, the ever-changing landscape of U.S. employment laws brings forth a myriad of adjustments that employers and employees alike must be cognizant of. The aftermath of the COVID-19 pandemic continues to reverberate, prompting significant modifications to federal and state labor regulations. From minimum wage adjustments and COVID-19 workplace alerts to groundbreaking cannabis use protections and the intricacies of pay transparency, the year 2023 unfolds with a host of legislative updates.
This comprehensive guide aims to unravel the complexities of the altered legal landscape, providing insights into federal labor law amendments and delving into specific changes at the state level across the United States. From California’s extensive range of labor law adjustments to unique updates in Alaska, Arkansas, and beyond, this compilation serves as a roadmap for employers and employees navigating the nuanced realm of employment laws in the United States for the year 2023.
Federal Labor Law Changes
Minimum Wage for Federal Contractors
- Starting January 1, 2023, the minimum wage for federal contractors will be adjusted yearly.
- Tipped employees working as federal contractors must receive a minimum pay equal to 85% of the indexed wage as of January 1, 2023, and 100% starting January 1, 2024.
COVID-19 Workplace Alerts
- AB 2693 extends and modifies the rule for employers to alert employees about COVID-19 exposure.
- Employers can post a notice of exposure instead of providing written notice, with details posted prominently for 15 days.
Pay Transparency
- Employers with over 15 employees must disclose pay scale for job postings, internally or externally.
- Third-party recruiters must also include pay scale information in job advertisements.
Cannabis Use Protection
- Disciplinary actions for marijuana use require independent proof of intoxication or influence during work-related duties.
Employee Arbitration Agreements
- Following a 2022 Supreme Court ruling, employers can no longer mandate employee lawsuits to arbitration under the Private Attorney General Act (PAGA).
State Employment Law Changes
Alabama Labor Law Changes
- HB 272 outlines conditions allowing employees to retain firearms and ammunition in employer lots, effective January 1, 2023.
Arkansas Labor Law Changes
- Employers with 4 or more employees must pay a minimum hourly rate of $11.00 and provide premium pay after 40 hours.
California Labor Law Changes
- Multiple changes, including bereavement leave policies, Fast Food Industry Regulation, protected time off scope, background check adjustments, and COVID-19 workers’ compensation extension, among others.
Alaska Labor Law Updates
- Minimum wage increases to $10.85 per hour as of January 1, 2023.
Arizona Labor Law Updates
- Minimum wage increases to $13.35 per hour as of January 1, 2023.
- Background checks allow sealing files for certain criminal offenses.
Colorado Labor Law Updates
- Minimum wage increases to $13.65 per hour as of January 1, 2023.
- Amendments to paid sick leave pay calculation.
Connecticut Labor Law Changes
- Minimum wage increases to $14.00 per hour as of January 1, 2023.
- Premium pay required for the seventh consecutive day of work in restaurants and hotel restaurants.
- Minimum wage to increase to $15.00 per hour on June 1, 2023.
District of Columbia Labor Law Updates
- Sexual harassment training requirements for tipped wage workers.
- Marijuana tests prohibited as a hiring requirement.
Florida Labor Law Updates
- Miami Beach CROWN Act forbids job discrimination based on protective or natural hairstyles.
Hawaii Labor Law Changes
- Minimum wage increases to $12.00 per hour as of January 1, 2023.
- Guaranteed monthly compensation of $2,000 exempts employees from state minimum wage and overtime law.
Illinois Labor Law Updates
- Bereavement leave amendment, additional meal breaks, and one day of rest in seven act.
- Pay data reporting requirements for certain businesses.
- Hairstyle discrimination protections added.
Maine Labor Law Updates
- Paid vacation payout requirements for unused vacation accrued on and after January 1, 2023.
Minnesota Labor Law Changes
- Minimum wage increases to $10.59 per hour as of January 1, 2023.
Montana Employment Law Updates
- Minimum wage increases for businesses with gross annual sales over $110,000.
New Jersey Labor Law Updates
- Minimum wage increases to $14.13 per hour as of January 1, 2023.
- Healthcare organizations’ sale agreements must adhere to collective bargaining agreements.
New York Labor Law Updates
- Paid family leave covers siblings.
- Regulations on AI and robotics use in employment decisions.
- Wage transparency legislation amendments.
North Carolina Employment Law Changes
- Minimum wage increases to $7.25 per hour as of January 1, 2023.
- Premium pay required after 45 hours a week in seasonal amusement or recreational establishments.
North Dakota Labor Law Changes
- Minimum wage increases to $7.25 per hour as of January 1, 2023.
Ohio Employment Law Changes
- Minimum wage increases for employers with annual gross receipts of $372,000 or more.
- Minimum wage remains $7.25 for employers with annual gross receipts under $372,000.
Oregon Labor Law Updates
- Introduction of Paid Family and Medical Leave Insurance (PFMLI) program.
- Amendments to workers’ compensation anti-retaliation provisions.
Pennsylvania Labor Law Updates
- Philadelphia Ordinance mandates benefits program for mass transport and bicycle commuting for employers with 50 or more employees.
Rhode Island Labor Law Updates
- Minimum wage increases to $13.00 per hour as of January 1, 2023.
- Prohibition of asking about a candidate’s prior earnings.
- Special enrollment option for pregnant employees for health insurance.
Utah Island Labor Law Updates
- Changes to employer responsibilities for non-resident employees’ withholding.
Texas Labor Law Changes
- Minimum wage remains $7.25 per hour as of January 1, 2023.
Virginia Labor Law Updates
- Minimum wage increases to $12.00 per hour as of January 1, 2023.
- Hospitality industry requires human trafficking training for staff.
Washington Labor Law Updates
- Wage transparency mandates detailed benefits description in employment advertisements.
- Non-compete enforceability thresholds increased for employee earnings.
Disclaimer: This article provides general guidance and information. HR managers should consult with legal experts to ensure compliance with federal, state, and local laws when implementing these strategies.