Department of Defense Imposes Changes to Military SkillBridge Program

In August 2023, the U.S. Department of Defense (DOD) imposed new mandates on employers who participate in the SkillBridge internship program. The program, which began in 2011, provides service members with valuable civilian work experience through unpaid internships during their last 180 days of service, while the military continues to pay their wages and full benefits. Moving forward, the DOD will require SkillBridge employers to accept a minimum number of candidates annually based on the size of the business and to show a “high probability” that their SkillBridge interns will receive a job offer upon the completion of their internship. “High probability of employment” is defined as “75% or higher of [s]ervice members who successfully complete the program receive a qualifying offer of immediate post-service employment,” with a goal of 85% or higher.

 

FDIC Final Rule Prohibits Hiring or Continued Employment After Certain Convictions

Effective October 1, 2024, the Federal Deposit Insurance Corporation’s (FDIC) final rule updates Section 19 of the Federal Deposit Insurance Act to address the hiring or continued employment of individuals prohibited from directly or indirectly participating in the affairs of an FDIC-insured depository institution (e.g., banks). Among the significant changes made to Section 19 by the final rule are the following: (1) covered institutions must make a “reasonable, documented inquiry” when verifying an applicant’s criminal history to ensure that individuals with a covered offense are not hired or permitted to participate in the institution’s affairs without written consent from the FDIC; (2) offenses that occurred seven or more years ago, incarceration that was five or more years ago, or offenses that occurred when the individual was 21 years old or younger (which was 30 or more months ago) are no longer covered offenses restricted by Section 19; (3) de minimis offenses like the use of fake identification, shoplifting, trespassing, and fare evasion do not require a consent application from the FDIC for the applicant or employee to be employed by the institution; (4) the definitions of criminal offenses involving dishonesty and possession of controlled substances have been revised; (5) the treatment of expunged, dismissed, and sealed offenses has been revised; and (6) convictions and pretrial diversion programs for dishonesty, breach of trust, or money laundering in a foreign jurisdiction are still subject to Section 19 prohibitions regardless of any difficulty institutions may have conducting foreign criminal background checks. Penalties for Section 19 violations are $1 million per day. Covered employers should review the final rule in detail and update their background check screening procedures.

 

Federal Contractor Minimum Wage Increase for 2025

On September 30, 2024, the Department of Labor (DOL) published a notice in the Federal Register announcing that, beginning January 1, 2025, the Executive Order 14026 minimum wage rate will increase to $17.75 per hour (Minimum Wage for Federal Contracts Covered by Executive Order 14026, Notice of Rate Change in Effect as of January 1, 2025). This Executive Order minimum wage generally applies to workers performing work on or in connection with certain federal contracts that are entered into, renewed, or extended (pursuant to an option or otherwise) on or after January 30, 2022. Employers should prepare to increase employee wages as applicable.

 

NLRB: Grad Students are Employees if Compensated for Work

On August 9, 2024, the National Labor Relations Board (NLRB), in a case involving Pardee RAND Graduate School, stated there was no issue to review where a NLRB regional director found that graduate policy researchers were an appropriate bargaining unit. To determine whether graduate students are employees for purposes of the National Labor Relations Act (NLRA), the employer must look at whether the individual is performing work for which they are compensated.

 

California: Healthcare Worker Minimum Wage in Effect on October 16^th

As of October 16, 2024, the healthcare worker minimum wage is in effect. The minimum wage ranges from $18 to $23 per hour depending on the type of healthcare facility involved. Significantly, the minimum wage requirement applies to workers who provide “health care services” or “services supporting the provision of health care”, even to employees of contractors or subcontractors of covered health care facilities. The range of covered services is broad: patient care-related services including nursing; caregiving; services provided by medical residents, interns, or fellows; and services supporting patient care including technical and ancillary services; janitorial work, housekeeping; groundskeeping; guard duties; business office clerical work; food services; laundry; medical coding and billing; call center and warehouse work; scheduling; and gift shop work. Review the Labor Commissioner’s FAQs for more information.

 

San Diego, CA: New County Fair Chance Ordinance

As of October 10, 2024, employers located or doing business in unincorporated areas of San Diego County who employ five or more employees must follow background screening restrictions for applicants and employees who perform at least an average of two hours of work weekly within the unincorporated areas. Specifically, criminal history inquiries can only occur after a conditional offer of employment, individualized assessments must be in writing, and the position must be held open during the individualized assessment process. Employers should revise background screening processes for compliance.

 

Connecticut: Expanded Family Violence Victim Leave Law

Effective October 1, 2024, Connecticut’s Public Act 24-5 expands the circumstances under which employees can receive benefits under Connecticut’s Paid Leave Insurance Program. Specifically, the amended law will now allow victims of sexual assault to take leave from work for covered reasons and to receive paid benefits during that leave under the Connecticut Paid Leave statute. Previously, the program provided paid leave benefits to employees who take leave covered by the Connecticut Family and Medical Leave Act and to employees who are victims of family violence.

 

Massachusetts: 2025 PFML Contribution Rates and Benefits

Effective January 1, 2025, the contribution rate for Massachusetts employers with 25 or more employees (large employers) will remain at .88% of eligible wages. Large employers divide contributions between themselves and employees through payroll withholdings. Large employers can require up to 100% (0.18% of eligible wages) of the family leave contribution withheld from employees’ wages. Up to 40% (0.28% of eligible wages) of the medical contribution can be withheld from an employee’s wages. Small employers are employers with less than 25 employees. There is no obligation for small employers to pay the employer share of the medical leave contribution. Small employers must remit an effective contribution rate of 0.46% of eligible wages. In addition, the maximum weekly benefit in 2025 will be $1,170.64 per week which is an increase over the 2024 maximum benefit of $1,149.90. Updated required postings and notices have not yet been released. Employers should monitor the Massachusetts Department of Family and Medical Leave website for updates.

 

Massachusetts: Qualifying Reasons for Use of Earned Sick Time Expanded

Effective November 21, 2024, H4999 allows employees to use Massachusetts Earned Sick Time to “address the employee’s own physical and mental health needs, and those of their spouse, if the employee or the employee’s spouse experiences pregnancy loss or a failed assisted reproduction, adoption or surrogacy.” Employers will need to update their leave policies to include this additional use.

 

Michigan: Clarifications on Minimum Wage and Tipped Wages for 2025 and Beyond

On July 31, 2024, in Mothering Justice v. Attorney General, the Michigan Supreme Court found several legislative amendments affecting the state’s minimum wage, tip, and paid sick leave laws to be unconstitutional. This ruling left unanswered several questions and created new confusion regarding the minimum wage and minimum wage rates for tip-credit employees. Following a request for clarification from the State of Michigan and the Attorney General, the Court issued a new order with the following schedule for the new minimum wage, minimum cash wage, and tip credit rate.

 

Date	Minimum Wage	Minimum Cash Wage	Tip Credit
February 21, 2025	$12.48	$5.99 (48%)	$6.49
February 21, 2026	$13.29	$7.97 (60%)	$5.32
February 21, 2027	$14.16	$9.91 (70%)	$4.25
February 21, 2028	$14.97	$11.98 (80%)	$2.99
February 21, 2029	TBD	90% of Minimum Wage	TBD
February 21, 2030	TBD	100% of Minimum Wage	Prohibited

 

Mississippi: Electronic Filing of W-2 and 1099 Forms

On September 11, 2024, the state lowered the threshold for employers to file W-2 and 1099 forms electronically. Specifically, employers that file 10 or more W-2 or 1099 forms must file them electronically with the state Department of Revenue by January 31^st.

 

New Hampshire: Ban on Hairstyle Discrimination Takes Effect  

Effective September 1, 2024, New Hampshire’s HB 1169 creates a private cause of action for discrimination based on hairstyles related to a person’s ethnicity. This includes braids, locs, tight coils or curls, corn rows, Bantu knots, Afros, twists and head wraps.

 

Washington: Good Cause Exceptions for Unemployment Eligibility

Effective September 15, 2024, Washington amended its rule requiring individuals claiming unemployment benefits when they voluntarily leave work to show good cause. “Good cause” is now clarified to mean the following: (1) inaccessible care for a child or vulnerable adult; and (2) a change in a regularly scheduled shift or split shift of six hours or more. To show good cause for inaccessible care for a child or vulnerable adult means: (1) the employee left work primarily because of such caregiving inaccessibility; (2) the caregiving inaccessibility made it necessary for the employee to leave work; (3) the employee terminated  employment status and is not entitled to be reinstated to the same position or a comparable similar position; and (4) the employee made reasonable efforts to preserve employment prior to leaving work, including requesting changes in working conditions; changes to the work schedule that would accommodate the caregiving inaccessibility; or a leave of absence, notifying the employer of the reason(s) for the leave of absence before the date starting the leave of absence; and asking to be reemployed when  able to return to work.

 

 

 

 

 

 

---

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase