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May 2024 Compliance Updates: FTC Bans Noncompete Agreements & More

May 15, 2024 6:08:54 AM

Federal

FTC Bans Noncompete Agreements

On April 23, 2024 the Federal Trade Commission finalized its ruling banning noncompete agreements, and making any existing noncompete agreements unenforceable, for all workers except those deemed “senior executives”.

FTC Bans Noncompete Agreements - Visual CTA

DOL Rescinds ACA Grouping Provision Effecting Small Businesses

On April 29, 2024, the Department of Labor rescinded regulations adopted in 2018 that expanded the formation and use of Association Health Plans (AHPs). The agency is finalizing this rule effective within 60 days of its publication in the federal register.

DOL Rescinds ACA-Skirting Health Plan Rule - Visual CTA


New Taxes

Vermont Child Care Contribution (VT CCC)

Beginning July 1, 2024, Vermont employers and self-employed individuals will begin making contributions of 0.44% on wages, and a 0.11% self-employment income tax, to the Vermont Department of Taxes for the Child Care Contribution Special Fund. All wages that are subject to Vermont income tax withholding are subject to the VT CCC tax.

This tax will be reported and paid with Vermont withholding taxes. The quarterly withholding form will be updated to incorporate these changes and will be available to file beginning with the 3Q24 filing period. Semiweekly, monthly, and quarterly withholding taxpayers are required to begin making CCC payments after July 1, 2024, according to their established withholding payment schedule.

No action required at this time. Additional information for reporting, payment, and tax code setup will be released once finalized by the agency.

Delaware Paid Family Leave (PFML)

  • Contributions to begin January 1, 2025
  • Benefits to be available January 1, 2026

Participation in Delaware Paid Leave is mandatory for businesses with 10 or more employees. Delaware Paid Leave offers paid leave to employees who have been employed for at least one year and work at least 1,250 hours with a single employer.

Key Dates

  • September 1, 2024 to December 1, 2024 – Opt-In/Opt-Out opens for employers who wish to use a private plan to opt-out and for small groups to opt-in to Delaware Paid Leave. Private plans must be approved by the state.
  • January 1, 2025 – Payroll deductions for Employers who require their employees to share in the cost of the plan begins.
  • April 30, 2025 – First Due Date for PFML contributions and reporting.
  • January 1, 2026 – Employees can begin to submit claim applications for payment.

No action is required at this time. Additional information to come once finalized by the agency.

Agency Website: Delaware Paid Leave Is Coming - Delaware Department of Labor


State Updates

New York

Under Senate Bill (S) 8305C, pregnant employees in New York will soon be entitled to paid leave for prenatal care and paid lactation breaks, as a result of two new laws signed by Gov. Kathy Hochul.

Prenatal Leave Law

Employers will be required to provide up to 20 hours of paid prenatal leave in a 52-week period. Employees will be able to use the leave for pregnancy-related health care such as physical exams, medical procedures, monitoring and testing, and discussions with health care providers related to a pregnancy. The prenatal care leave is in addition to other leave available to New York employees, such as paid sick and safe leave and paid family leave. Unused leave does not need to be paid out upon an employee's departure from an organization.

Effective date: January 1, 2025

Paid Lactation Break Law

Employers will be required to provide paid break time of up to 30 minutes each time an employee needs to pump or express milk for up to three years following the child's birth. Employees must also be permitted to use existing paid break or meal time for time beyond the 30 minutes. Current law requires only that an employer provide "reasonable unpaid break time" and allow the use of existing paid break or meal time to express breast milk.

Effective date: June 19, 2024

Additionally, with these new laws, the state will sunset the COVID-19 sick leave requirements as of July 31, 2025.

Click here to learn more. 

Portland, Oregon

Portland, OR to increase the minimum wage requirement to $15.95 effective July1, 2024.

No action required at this time.

South Carolina

The state of South Carolina began requesting SOC codes with tax reporting starting with the 1Q24 filing. The SOC codes will be mandatory with the 2Q24 tax filing. Missing SOC codes will result in rejected tax filings, which will delay posting with the agency and cause potential late filing penalties, in addition to potential penalties for missing SOC codes as determined by the agency.

Action Required: Please review your employees’ tax set up to ensure the correct SOC code is listed for reporting. Use the link below to view the agency code descriptions.

Click here to learn more. 

Click here to view SOC Code descriptions