Quarterly HR Update – December 2024
2025 is on the horizon. We are about to close out another year – and an active one it has been!
Throughout 2024 we reported on a variety of legal updates and other HR matters. This Update focuses on a recap of many of those, as their effective dates of January 1, 2025 are finally approaching. We’ve included some recently announced updates as well to help ensure you know what is coming in the new year.
Please note this is a summary of upcoming changes and not an all-inclusive overview.
Legal Updates & Info
Under Federal Law…
Exempt Salary Threshold Blocked: Back in April the federal government announced changes to the federal exempt salary threshold effective July 1, 2024, with another change scheduled for January 1, 2025, and more changes every three years thereafter. Employers were left in a tricky spot – because litigation of the new law, to potentially block it, began at the same time employers were expected to comply. July 1st rolled around with no blocking of the change. Fast forward another few months and a block occurred! In November 2024, the U.S. District Court for the Eastern District of Texas vacated the rule, and all thresholds were set back to the 2019 thresholds.
Some important reminders:
- The 2019 exempt salary threshold is $35,568 annually.
- If you have employees in California, Washington, or any state that has a state-specific exempt salary threshold, this likely has no impact on your business because your state threshold likely already exceeds what was planned at the federal level.
- If you made adjustments to comply with the July 1, 2024 effective date, or made adjustments in anticipation of January 1, 2025 effective date, it’s likely best to leave those as-is.
Under Washington Law…
Overtime & Exempt Salary Threshold Changes: January 1st marks some wage-related changes for Washington employers. As we shared back in October, effective January 1, 2025, the minimum wage in Washington is increasing to $16.66 per hour. The minimum salary threshold for exempt employees under the “white collar” exemption is also increasing: $69,305.60 per year for small employers (up to 50 employees) and $77,968.80 per year for large employers (51 or more employees). For information on other city and county minimum wage changes within Washington, take a look at our recent article outlining those details.
Paid Sick Leave (PSL) Expansion: Back in June we shared the expanded sick leave reasons and amended definitions under Washington’s Paid Sick Leave law. Just a reminder, these are effective January 1, 2025. Please refer to our June article if you need a refresher.
Washington Saves Program: Back in March of this year, Governor Inslee signed a bill establishing the Washington Saves Program. While this change doesn’t take effect until July 1, 2027, important information was recently announced that we want to share. The Washington Department of Labor & Industries explains the program is “for employees without access to employer-sponsored retirement plans. Workers will save for retirement through automatic payroll contributions to an Individual Retirement Account (IRA). Starting in 2027, employees 18 years and older will be auto-enrolled in a Washington Saves IRA.” The L&I website provides details about covered employers and an overview of employer responsibilities that includes registering with Washington Saves, distributing program information/disclosures to employees, and enrolling employees, etc. There is a lot more to come on this – reach out with any questions!
2025 Non-Compete Enforceability Thresholds: Way back in 2019, we shared information regarding the enforceability of Noncompete Agreements in Washington based on various criteria, one of which was the employee’s salary, with annual increases to the threshold every. As we approach a new year, the salary requirement is about to increase again: as of January 1, 2025, the salary requirement will be $123,394.17. In simple terms, if the employee makes less than that figure, the agreement is not enforceable.
Under California Law…
Minimum Wage & Exempt Salary Threshold Changes: Similar to Washington, California has some wage-related changes for 2025. As we reported in September, effective January 1, 2025 the minimum wage for all California employers is $16.50 per hour and the minimum salary threshold for exempt employees under the “white collar” exemptions increases to $68,640 per year. For information on state and county minimum wage within California, this resource provides helpful information.
Model Whistleblower Poster: The Model Whistle Blowers Notice we mentioned in September is available! As a reminder, this isn’t a new posting requirement – it’s an existing requirement that wasn’t totally clear on what needed to be posted. While employers are not required to post the exact notice prepared by the Labor Commissioner, if employers chose to post the model poster, they will effectively be deemed in compliance with the posting requirement regarding whistleblower protections! The required information (provided via the Model Notice or in some other communication) must be posted by January 1, 2025.
Vacation and Paid Family Leave Benefits: AB 2123 was signed into law by Governor Newsom on September 24, 2024. Effective January 1, 2025, employers will no longer be allowed to require employees to use up to two weeks of company-provided vacation before PFL benefits can be received through the state. An article from Littler providers more information.
Worker Freedom from Employer Intimidation Act: SB 399, effective January 1, 2025, will prevent employers from engaging or threatening to discharge, discriminate, retaliate, or take adverse action against an employee who declines to attend or participate in meetings related to religious or political matters. These are often referred to as a “ban on captive audience meetings”. There is litigation brewing but for now, employers should be careful not to require attendance or participation at any such meeting.
Victims of Violence Leave: California recently passed a new law (AB 2499) which will have impact on some of the various leave entitlements in California, for employers with 25 or more employees. In short, workplace protections, including leave entitlements, are expanding for employees who are victims of crime or abuse. Current laws in California provide protections for crime or abuse victims due to domestic violence, sexual assault, or stalking. AB 2499 will expand the definition, using the term “qualifying acts of violence” (QAV) to include any act, conduct, or pattern of conduct related to injury, death, firearms/weapons, as well as perceived or actual threats to use force. AB 2499 also extends protections to any employee who has a family member who is a victim of a QAV. The duration of leave allowed is up to 12 weeks (if the employee is the victim) or, generally, up to 10 days (if the family member is the victim). The California Civil Rights Department (CRD) is expected to prepare a notice to employees regarding these protections; once available, employers will be required to provide the information to employees by July 1, 2025. We will send out a note when the form notice is available.
Drivers’ License Discrimination: SB 1100 was approved by Governor Newsom on September 28, 2024, which will require employers to ensure two requirements are met before specifying a driver’s license as a job requirement. The employer must 1) reasonably expect driving to be one of the job functions for the position and 2) reasonably believe that satisfying the job function using an alternative form of transportation would not be comparable in travel time or cost to the employer. Examples of “alternative forms of transportation” specified in the bill include taxi, carpooling, bicycling, walking, and using a ride hailing service. We recommend reviewing your job specifications to ensure this new requirement, effective January 1, 2025, is met.
Under Oregon Law…
Paid Leave Oregon (PLO): Paid Leave Oregon (PLO), also referred to as Paid Family Medical Leave Insurance (PFMLI), will provide eligible employees leave as of January 1, 2025, for time spent initiating the legal process required for the placement of a foster child or the adoption of a child.
Your HRT Northwest Team
Seattle: (253) 642-7372 | Portland: (503) 250-2853 | info@hrtnorthwest.com
This Update is not a full overview of all recent or upcoming legal changes. HRT Northwest is staffed by professionals in the field of Human Resources and business management. We are glad to help with your HR needs; however, we do not offer legal advice and our services are not a substitute for the help of a qualified attorney.