Welcome to the backstitch HR law blog, a series where we provide the latest updates on upcoming and recently in-effect legislation. Our blog series will provide short snippets of State, Federal, and Global changes in HR and employment law, so your organization can continue to stay up to date in the legal world.
In March of 2020, the congress passed the Family First Coronavirus Response Act to help provide relief for American Workers during the novel COVID-19 pandemic. The Act originally required businesses smaller than 500 employees to offer 80 hours expanded paid leave and up to 10 weeks partial paid family leave due to lack of resources such as daycares and schools. On Wednesday July 8, the IRS issued new guidance aimed to help clarify the Act’s requirements.
Under the new guidance, employers are required to report to employees sick leave wages and family leave wages by which they were paid. These amounts then will be indicated on either Box 14 of W-2 forms or in an attached financial statement.
This guidance was also designed to help employees and self-employed individuals gain the necessary information to file for their own tax credit accurately. For more information, visit https://www.irs.gov/pub/irs-drop/n-20-54.pdf
As of July 1st, 2020, 24 states have increased their minimum wage requirements. This list has increased since the first minimum wage changes made on January 1, 2020. These changes were made depending on factors such as cost of living or and previously approved legislations and ballot initiatives.
*California: $13.00 is the rate for California employers with 26 or more employees. Employers with less than 25 employees have a minimum wage of $12.00.
*Minnesota: the $10.00 is for large employers only (companies that gross more than $500,000 a year.
*Nevada: Nevada employees who are offered health insurance are paid the updated $8.00. Employees not offered health insurance are paid $9.00 as of July 1, 2020.
Make sure your company will be compliant with these new updates to avoid costly penalties and lost productivity. Follow this series to ensure your company is compliant with the many employment law changes happening in the future.