A new year brings new compliance updates for 2019. BlueFire HR has compiled resources to help you start the new year right!
- Labor Law posters – new labor posters are required for 2019. Posters should be prominently displayed in an area where all employees have access.
- CA Minimum Wage Increase – the new minimum rate for small employers (25 or fewer employees) is $11.00 per hour and the new minimum rate for large employers (25 or more employees) is $12.00 effective January 1, 2019. See the schedule of additional increases here.
- CA Salary Increase– the minimum salary required is tied to the state hourly wage so any increases to the hourly rate results in an increase to the minimum salary. The new salary for an exempt employee in CA is now $45,760 for small employers and $49,920 for large employers.
- State and Local Minimum Wage Increases – many states have a higher wage than the federal minimum wage. In addition many cities, particularly in CA have their own schedule for increases even higher than the state minimum. Employers generally must pay employees the highest minimum wage prescribed by federal, state and local law. Check out this summary to see what the new minimum rates may apply to your employees.
- Sexual Harassment Training – new regulations in CA requires employers with 5 or more employees to provide at least two hours of sexual harassment training to all supervisory employees AND at least one hour of sexual harassment training to all non-supervisory employees by January 1, 2020 and once every two years thereafter.
- Salary History Bans – over 10 states including CA, HI, NY, NJ and CT prohibit employers from inquiring about an applicant’s salary history or relying on this information when determining what compensation to offer the applicant. Check out this summary to see if a salary history ban is effective in your state.
- IRS Mileage Reimbursement Rate – increases to $0.58 per mile effective January 1, 2019.
- Retirement Plan Limit Increases – Employee 401(k) contribution limits increase to $19,000 for 2019. For participants aged 50 and over the additional “catch-up” contribution limit will remain at $6,000. You will need to update your HRIS and payroll systems with the new limits and inform employees to avoid any contributions over the new limits. This chart shows a summary of the new defined contribution plan limits for 2019 for most 401(K), 403(b) and 457 plans.
- Employee Handbooks – An employee handbook is a valuable resource for employers to communicate their policies but it’s critical to keep it up to date. We’ve identified a few areas to pay particular attention to including sexual harassment policies, sick leave and family leave policies and pay practices. Update your handbook for 2019.
BlueFire HR can help you stay in compliance with new regulations that can have a major impact on your business operations. Reach out today and see how we can help! For more information, please contact us at firstname.lastname@example.org, 773-793-1362 or at 888-892-9597.