The new year is upon us—and with its arrival come a host of new laws and regulations that are taking effect for 2023. Staying on top of these updated or changed requirements will ensure your organization stays in compliance with all new laws—so you can run your business with confidence. 

A review of your employee handbook and Human Resources policies is essential at the start of any new year, and especially now that so many changes are kicking in come January 1. Keep in mind that even if your state’s laws have not changed for this year (yet!), it pays to be aware of trending new laws elsewhere, so you can prepare now to be ready should similar changes come to your state.

Here’s a recap of some of the most important HR law changes you need to know about for 2023.

What’s New at the Federal Level?

Respect for Marriage Act

Made official when President Biden signed it on December 13, 2022, the Respect for Marriage Act requires federal and state governments to recognize all marriages that are considered valid under existing state laws, while also allowing for nonprofit religious organizations to exercise freedom of religion when offering or declining services in conjunction with the celebration of a marriage. 

Employers should review any employee benefit plans and policies to ensure that all married couples are receiving equal treatment. This, of course, is a perfect opportunity to review Equal Employment Opportunity compliance and offer training to ensure all protected categories, including sexual orientation and gender identity, are properly addressed.

Speak Out Act

Enacted on December 7, 2022, the Speak Out Act makes it easier for employees to bring attention to issues such as sexual harassment and assault in the workplace by limiting the scope of non-disclosure and non-disparagement agreements. General pre-dispute arbitration agreements, which have been used by employers in the past to preemptively address such issues, may not be enforceable in sexual harassment or sexual assault situations. 

Employers should work with an employment lawyer to review and revise any standard employment documents that include broad non-disclosure and/or non-disparagement provisions, such as employment agreements, confidentiality agreements, and employee handbooks and policies.

New State Laws to Know About

State and Federal Labor Law Posters

Certain federal and state labor law regulations enforced by the U.S. Department of Labor require that notices be posted where employees can easily see them. These posters should be reviewed yearly and updated to the latest version if applicable. To aid with compliance, the DOL provides free electronic copies of these notice posters, some of which are available in languages other than English as well.

These regulations include rights under the Family and Medical Leave Act, Fair Labor Standards Act (minimum wage), industry-specific regulations such as for agricultural workers and those working at companies that hold a government contract, location-specific regulations such as for employees in American Samoa and the Northern Mariana Islands, and more.

Not all regulations may apply to an individual company, depending on various state laws, number of employees, and other factors. A review of what’s required can be helpful, starting at the DOL’s website. Our team can help answer more specific questions as well.

Privacy Laws

With data protection and privacy such a significant concern in the digital age, many states have been working toward stronger regulations that affect how companies maintain and protect people’s information. 

Taking effect on January 1, 2023, is the California Privacy Rights Act, which significantly expands the privacy and information security obligations of employers doing business in California. In addition, AB 951 takes effect on January 1, requiring employers with fleet vehicles to disclose the use of GPS tracking location technology and allow employees to disable tracking in their off-hours. These new laws require substantial updates to employers’ HR policies and practices.

In Virginia, the Virginia Consumer Data Protection goes into effect on January 1, 2023, as well. Intended to offer consumers better protection in the event of data breaches, companies must provide consumers certain controls over their personal data. Employers will benefit from updating any training and policies to ensure compliance. 

Other states that have enacted laws that go into effect later in 2023 include the Colorado Privacy Act (July 1, 2023); Connecticut’s Act Concerning Personal Data Privacy and Online Monitoring (July 1, 2023); and the Utah Consumer Privacy Act (December 31, 2023). And states like Virginia have existing obligations such as the correction of data that employers should be aware of. Employee policies and training should be reviewed to ensure staff members know what is expected of them in terms of privacy and data compliance.

Minimum Wage Increases

While the federal rate for minimum wage remains steady at $7.25 per hour for now, many states have set their own minimum wage standards to help account for cost-of-living increases and inflation. So, be sure to review salary ranges and compensation policies as they relate to the states where your company does business.

Some of these wage standards vary by industry as well. In California, for example, new standards have been set for 2023 in regard to minimum wage, working hours, and other conditions related to the health, safety, and welfare of fast-food restaurant workers. Wage garnishments and wage transparency changes are also in effect in California.

At Who’s Your HR?, we can evaluate all the wage standards, industry requirements, and exceptions to be sure your organization is in compliance in this area for the new year.

Hiring Veterans

In Alaska, House Bill 125 passed on November 7, 2022—this new law extends private-sector employer hiring preferences to include military spouses, dependent children, and surviving spouses of deceased service members. Employers in Alaska should review hiring standards and policies to account for these changes.

Human Trafficking

In both California and Virginia, new laws go into effect in 2023 around this significant and serious issue. California’s AB 1788 holds hotel employers liable for human tracking penalties if a supervisory employee knew about or acted with reckless disregard for sex trafficking activity, while in Virginia, HB 258 requires hotel employees to complete a training course to identify instances of human trafficking. Employers in the hotel industry should therefore update training and other policies to support these new, stringent laws.

Other Changes at the State Level—Particularly in California

California, in particular, has numerous employment law changes rolling out in 2023—including protected time-off requests; worker adjustment and retraining notification; Title III accommodations for people with certain medical conditions; worker’s compensation related to COVID-19; reproductive health benefits; and much more. Employers in several industries, including call centers, fast food, home health services, hotels, and many others are affected—so it’s important to have a full policy and procedures review if you do business in California.

Employers in Every State Should Review for Compliance with Local, State, Industry and Federal Regulations

Even if you don’t do business in the states that are highlighted above, laws in your state may have changed. Regulations by municipality and industry may have changed too. We can help review your particular state and industry to ensure you’re in full compliance for 2023.

Drug and Alcohol Testing Updates

At the federal level, the FAA has confirmed that for 2023, random testing for aviation employees will remain at 25 percent of safety-sensitive employees for random drug testing and 10 percent of safety-sensitive employees for random alcohol testing. At the state level, California’s new laws prohibiting discrimination against those who use cannabis in their off-hours doesn’t go into effect until January 1, 2024.

But as the landscape of drug and alcohol testing and workplace requirements is constantly in flux, an annual review of policies and procedures around hiring, testing, and compliance on the job is well advised. Note that in states like California, new 2023 laws around background checks and criminal records of prospective and current employees may also come into play.

Laws We Expect to Pass This Year

New Exempt Salary Threshold and Overtime Rules

Throughout 2022, the Department of Labor has indicated it would be releasing a proposal for a potential increase in the exempt salary threshold under an anticipated new federal overtime rule. As of now, these changes are still pending, but now that the midterm elections are over, it is likely the exempt salary threshold will be raised in 2023. Employers may want to consider their budget around salaries and overtime, as well as related policies, to be able to accommodate these anticipated changes. 

Ensure Full Compliance with New Laws—and Run Your Business with Confidence

So many HR laws are changing this year, or are on the near horizon, that it’s a smart idea to review all your employee policies, handbooks, and training now, at the start of 2023. Making updates in a timely fashion ensures your organization stays compliant and is protected against the penalties for violating this year’s laws.

At Who’s Your HR?, we’re experienced and knowledgeable about the best ways to adapt HR policies so that your business runs smoothly, stays in alignment with all legal obligations, and sets up employees for success.

Contact us at 539-215-8868 to schedule a consultation about new employment-related laws and how they impact your HR policies. We’ll make sure you’re addressing these requirements so that you’re fully compliant and positioned for HR success in 2023 and beyond!