Quarterly HR Update – December 2022

Another Year Comes to a Close…

We have made it to the last month of 2022…does it feels like the year went by in the blink of an eye?

With the New Year approaching we found there are a LOT of new and/or amended laws to keep track of. We know keeping all the pieces of the puzzle together can be tricky, so this Update focuses on recent legal updates and those on the very near horizon for 2023.

Please note this is a summary of major changes for 2023 and not an all-inclusive overview.

Under Federal Law…

Federal “Know Your Rights” Poster: The Equal Employment Opportunity Commission (EEOC) recently replaced the “EEO is the Law” poster with a “Know Your Rights” poster. If you haven’t posted the new version yet, we recommend doing so. Versions are available in English and Spanish.

In Oregon…

Oregon Paid Family Medical Leave Insurance (PFMLI): We shared some information in an August article on the January 1, 2023 contribution rates for PFMLI so Payroll Departments could start necessary preparations. While PFMLI benefits won’t actually start until September 2023, employers are required to post the PFMLI Model Notice as of January 1, 2023. Multiple language versions of the Model Notice can be accessed here. In addition to posting the notice, if you have remote staff, the notice should be emailed.

In Washington…

Pay Transparency: Our May article provided information about Pay Transparency requirements, effective January 1, 2023, under the Equal Pay & Opportunities Act. On November 30, 2022, Washington’s Department of Labor & Industries issued Administrative Policy ES.E.1, outlining more details about the requirements. First, the Act outlines employee and job applicant rights, as follows:

Employers must provide equal pay to similarly situated employees.
Employers must not limit or provide career advancement opportunities based on gender.
Employers cannot prohibit employees from discussing wages, nor can employers take adverse action against an employee for discussing wages or exercising rights under the Act.
Employers cannot seek salary history of an applicant.

Second, the Act outlines pay transparency requirements, as follows:

A “wage scale or salary range” and “general description of benefits” must be disclosed in all job postings and disclosed to an employee who is offered a different position.
“Wage scale or salary range” means “the most reasonable or genuinely expected range for compensation, extending from lowest to highest pay.” The information cannot be open-ended (i.e. “saying $50,000 and up” or “up to $50,000” is not permitted).
“General description of benefits” means “a general description of all reasonable and expected benefits” including health insurance, retirement, time off, leaves, and fringe benefits. While the monetary value of benefits is not expected to be required, details including the actual amount of days off, the company’s specific holidays, and the specific types of health insurance offered (e.g. medical, dental, vision) are likely to be required.

Minimum Wage Changes: Washington State and the City of Seattle are increasing their minimum wage rates for 2023, as follows:

Washington State’s minimum wage increases to $15.74 per hour.
The City of Seattle’s minimum wage increases, depending on employer size and other factors, as follows:
- For large employers (501 or more employees): minimum wage increases to $18.69 per hour.
- For small employers (500 or less employees) who do not pay at least $2.19 per hour toward the employee’s medical benefits and/or the employee does not earn at least $2.19 per hour in tips: minimum wage increases to $18.69 per hour.
- For small employers (500 or less employees) who DO pay at least $2.19 per hour toward the employee’s medical benefits and/or the employee DOES earn at least $2.19 per hour in tips: minimum wage increases to $16.50 per hour.

Exempt Employee Salary Threshold: It’s time for another salary threshold increase for exempt employees, effective January 1, 2023. Recall back in the summer of 2020, Washington rolled out an implementation schedule to start adjusting the minimum salary thresholds required for overtime-exempt employees through 2028. Effective January 1, 2023, the minimum salary threshold for exempt employees in Washington increases to $1,101.80 per week ($57,293.60 per year) for small employers (one to 50 employees) and $1,259.20 per week ($65,478.40 per year) for large employers (51 or more employees). Exempt employees who qualify for exemption under the computer professional exemption and are paid an hourly rate, must be paid $55.09 per hour as of January 1, 2023.

2023 Non-Compete Enforceability Thresholds: Taking us way back to 2019, we shared information regarding the enforceability of Noncompete Agreements in Washington based on various criteria, one of which was the employee’s salary. The salary requirement for 2023 is now $116,593.18 – which means the agreement is not enforceable, simply based on salary alone, if the employee makes less than that figure.

In California…

Pay Transparency: Senate Bill 1162 requires California employers to provide more Pay Transparency as of January 1, 2023; the law also expands current Pay Data Reporting obligations for some employers as of May 2023. Our article in October outlines some details and recommendations.

California Privacy Rights Act: While the rules have yet to be finalized, the January 1, 2023 effective date for the California Privacy Rights Act (CPRA) is fast approaching. To provide some quick background: the California Consumer Privacy Act (CCPA) was enacted in 2018, which had only limited applicability to HR data. The California Privacy Rights Act (CPRA) amends the CCPA and is the first law in our country to impose broad data protection obligations on employers in regard to “personal information”. If you haven’t already, we recommend seeking the advice of a qualified California attorney to help navigate this law.

Bereavement Leave Protections: California AB 1949, applying to employers with five or more employees, provides unpaid bereavement leave entitlements to eligible employees, as of January 1, 2023. Eligible employees (those who have been employed for at least 30 days prior to the leave) are allowed to take five days (consecutive or intermittent) of unpaid bereavement leave, within the first three months of the death of a covered family member.

“Designated Person” Leave: California AB 1041 expands the definition of “family member” under the CFRA and California’s Paid Sick Leave law (referred to as the Healthy Workplaces Healthy Families Act, HWHFA) as of January 1, 2023. While both amended laws will permit an employer to allow only one designation per employee in a twelve month period, each amended law provides their own definition of a “designated person”:

Under CFRA: “any individual related by blood or whose association with the employee is the equivalent of a family relationship.”
Under the Sick Leave Laws (HWHFA): “a person identified by the employee at the time the employee requests paid sick days.” Blood relation is not required, and neither is the need to be an “equivalent of a family relationship”.

Phew, you made it. If you have questions about any of this information, please reach out – we are happy to help.

HRT Northwest: Your Northwest HR Team

Seattle: (253) 642-7372 | info@hrtnorthwest.com

This Update is not a full overview of all 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.