New Labor Laws Impacting Businesses in 2020

The year 2020 has started out unconventionally, to say the least. From a major drop in the stock market to the spreading pandemic of the coronavirus, a lot of uncertainty is playing into employer operations throughout the United States.

Noteworthy 2020 Labor Laws

But even without this uncertainty, employers are still having to navigate through a number of new labor laws impacting their day-to-day. Here are some noteworthy 2020 labor laws that you should be aware of.

Families First Coronavirus Response Act

Effective April 1, this new law provides paid leave, food assistance and tax credits to individuals in the United States affected by the coronavirus outbreak. This new law requires employers with fewer than 500 employees to provide 12 weeks of protected leave to eligible employees who are unable to work because their child’s school or place of care has been closed. Healthcare providers, which can include dentists, and small businesses with less than 50 employees, may be exempt from the new provision.

New Salary and Pay Range Disclosures

Employers are prohibited from collecting or seeking wage or salary history from potential employees in some states. Employers must disclose the position’s proposed minimum wage or salary upon demand. Compliance will require an alteration of hiring practices to make sure that applications and other hiring documents are up to date.

Non-Competes for Employees and Contractors

Employers cannot have non-compete agreements with employees earning less than $100,000 per year or independent contractors making less than $250,000 per year. Non-competes that are longer than 18 months are categorized as unreasonable. Employers need to make sure their contracts are fully updated and revised.

New Thresholds for Minimum Wage and Overtime

In a new rule from the U.S. Department of Labor, existing minimum wage and overtime thresholds for executive, administrative and professional employees have been updated under the Fair Labor Standards Act (FLSA). The standard salary level threshold increases from $455 to $679 per week. Compliance under this new law will require a review of employee compensation data, determination on how the rule will affect an employee base, and training of reclassified employees on company overtime policies and how to keep track of overtime.

The Important of EPLI

For businesses looking to steer clear of any potential lawsuits related to these new laws, updating or adding on employment practices liability insurance (EPLI) coverage can help. This coverage can cover businesses against wrongful termination, discrimination, breach of contract, sexual harassment, failure to promote, wage-and-hour-disputes, and more. Having EPLI will provide peace of mind against these updated and new laws that can cause some stress among employers looking to keep claims and liabilities low, especially in uncertain economic times like now.

Brynes Agency Is Your 2020 Labor Laws Guide & Trusted Insurer

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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