Are You Ready for Changing Employment Laws in 2023?

Employment laws are ever-evolving, and it can be overwhelming to keep track of all the changes. As a premier staffing agency, SSI People stays on top of changing laws and requirements to ensure compliance and mitigate risk. Are you aware of what’s changing and how to prepare?

If not, now’s the time to look into what’s to come to ensure you’re compliant with changes or new laws. While 2023 will bring many changes, we’ve rounded up some of the more prevalent ones to expect in the new year.

1. Pay Transparency

Job seekers have had enough of applying to open roles with no salary information. Thanks to changes to pay transparency laws in California, Rhode Island, and Washington, job seekers can now access pay scale (hourly or salary) information for job postings. Here’s a quick rundown of changes effective starting January 1, 2023.

  • California: California amended the Pay Transparency Law, which previously required employers to provide a pay scale to any job applicant or existing employee upon request. As part of the amendment, employers with more than 14 employees will also be required to include a pay scale for a role in any job postings. This includes job postings on third-party sites (like staffing agency sites).Organizations will also have to maintain job title and wage history records for every employee throughout their time at the company.
  • Rhode Island: The Rhode Island Equal Pay Law amendment (effective January 1, 2023) will require employers with one or more employees in the state to provide a wage range to job applicants who request it. The wage range is the budgeted amount for payment and how much the company plans to pay.The amendment also requires that if a current employee requests the wage range of their position during their employment, their employer must provide it. For existing employees, the wage range could also include the salary of other employees previously in the same position.
  • Washington: With new changes to the Washington Equal Pay and Opportunities Act, employers will need to share the salary range in job postings and a general description of benefits and other compensation. According to the amendment, this includes both discretionary and non-discretionary wages and benefits from the employer to the employee due to the employment relationship.

2. California Privacy Rights Act (CPRA)

The CPRA is a privacy law (going into effect on January 1, 2023) aimed at protecting individual data privacy rights. It differs from the existing California Consumer Privacy Act (CCPA) in that it no longer includes the employee exception. This means:

  • California employees, job applicants, contractors, beneficiaries, and emergency contacts have the same rights as any other consumer.
  • Employees can request that their employers disclose the personal information (PI) they collect on that specific employee and request that the information be deleted or corrected. Employees can also request that their employees don’t sell or share their PI.
  • Employees can access their personal information and know what PI is shared (and with whom).
  • Employers are required to provide notice of employee rights under CPRA and offer a way for employees to tell their employees about exercising these rights.

The CPRA also defines various types of personal information, differentiating between PI and sensitive personal identification.

3. Independent contractor (IC) classification

While changes to how companies identify independent contractors and employees haven’t been finalized, new employment laws related to this topic are something to look out for in the coming year. A new proposal is looking to change how organizations will approach IC status under federal wage law. It would:

  • Add a clarification on when workers should be classified as independent contractors vs. employees. Employees would enjoy the benefits afforded under the Fair Labor Standards Act, including overtime and a minimum wage.
  • Provide guidance to prevent misclassification of worker status.
  • Determining a worker’s status would “use a multi-factor economic realities test that considers factors of the working relationship to determine whether the worker is truly in business for themselves,” according to Bloomberg Law.
  • Considered factors will include the nature and degree of a worker’s control over the work; the worker’s opportunity for profit/loss based on personal investment or initiative; investments by the worker and the employer; the degree of permanence of the working relationship; the extent to which the work performed is an integral part of the employer’s business; and the degree of skill and initiative shown by the worker.

4. I-9 flexibility

The U.S. Department of Homeland Security (DHS) recently extended I-9 flexibility through July 31, 2023. This means that employees who don’t report to a physical location (like an office) regularly will remain exempt from the I-9 in-person verification requirements.

  • DHS is considering permanently adopting the remote verification process, but it hasn’t been confirmed.
  • Employers will still need to use the current I-9 form, even after its October 31, 2022 expiration date.
  • Proposed changes include alternate ways employers can verify documents in compliance with I-9 requirements, which would require updated instructions for the current version of the I-9 form.

Are you ready for new and updated employment laws?

New updates to employment laws and regulations continue to emerge as we near 2023, including all of the above. Are you ready? If you’re overwhelmed trying to keep up with changing laws or are worried your staffing agency won’t be compliant with the ever-evolving requirements, SSI People may be able to help.

We stay on top of amendments and new requirements to ensure compliance for both our clients and ourselves. So, if you’re looking to hire but want to ensure you’re working with a staffing company that is compliant and up-to-date with current laws, contact us today to see how we can work together to get you top-tier talent and be compliant.

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