Minimum Wage Increase
Since the federal minimum wage rate has remained unchanged since 2009, many states decided to take action. Based on the Consumer Price Index (CPI), 26 states will be increasing their minimum wage rates in 2020.
To comply with labor laws, be sure to post updated Labor Law Posters detailing the new minimum wages. If your company operates in specific cities that have City Minimum Wage Updates, you’re required to post updated City Labor Law Posters as well.
The changes go into effect by January 1. Note that some states, such as California and Maryland, have a varying minimum wage based on the number of employees. Other states, like Minnesota and Ohio, use gross receipts to determine small and large businesses, which minimum wage rates are based on. States such as Arizona may have a varying minimum wage for tipped and nontipped employees. New Jersey has varying minimum wage rates for seasonal, small, and agricultural employers.
Being aware of these changes helps you maintain compliance with minimum wage laws to avoid legal consequences. Contact your local state agency for more information regarding your State Minimum Wage.
Paid Sick Leave and Family and Medical Leave Laws
Many paid sick leave and family and medical leave laws will be changed in 2020. For instance, Nevada will allow paid leave for any reason. Massachusetts is offering paid family and medical leave with benefits becoming available for use in January and July 2021. New York is increasing its paid leave laws in 2020 and 2021.
Paid leave provides options for employees to better manage their health and wellbeing. For instance, paid maternity leave allows mothers to physically recover from giving birth while still receiving income. This reduces the stress of adding a baby to the family and paying bills while thinking about how and when to transition back into the workforce. Paid family leave allows caring for a sick or seriously ill family member while still being able to pay bills and come back to work.
For millions of Americans, taking unpaid leave isn’t an option. The mortgage or rent, household expenses, car payments, and medical bills would become delinquent. As a result, millions of employees would be forced to return to work rather than care for themselves and their families. This is why paid leave is vital to your employees’ health and wellbeing.