Navigating July Compliance Updates
News July 2, 2024
Staying up-to-date with ever-evolving compliance regulations can feel overwhelming. AIM HR Solutions is here to simplify the process by providing you with all the latest updates, neatly compiled in one place. See below to learn more about compliance updates in July:
FLSA Overtime Rule: On April 23, 2024, the U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which took effect on July 1, 2024. The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism that provides for the timely and efficient updating of these earnings thresholds to reflect current earnings data. Despite efforts to block implementation, the Overtime Rule went into effect. Please note also that the recent Texas ruling is limited to the state as an employer, private businesses in Texas must comply with the new threshold.
Final Rule: Restoring and Extending Overtime Protections
Judge Issues Last-Minute Order Halting Overtime Rule for Texas State Workers Only: What Employers Need to Know
Act to Prevent Abuse and Exploitation: On June 20, 2024, Governor Maura Healey signed into law An Act to prevent abuse and exploitation, which seeks to prevent abuse and exploitation, strengthen protections for survivors, and enhance education for young people about the dangers of sexting and deepfakes.
Governor Healey Signs Bill Banning Revenge Porn, Expanding Protections Against Abuse and Exploitation
EEOC: The U.S. Equal Employment Opportunity Commission (EEOC) filed lawsuits against 15 employers, alleging the companies have repeatedly failed to submit mandatory federal workforce demographic reports. The companies—found across 10 states—include restaurants, retailers, and construction and logistics businesses. They have been charged with failing to submit mandatory EEO-1 data reports for 2021 and 2022. Federal law requires private employers with 100 or more employees and federal contractors with at least 50 employees to submit workforce data by job category and sex, race, or ethnicity to the EEOC. The workforce demographic data is used for a variety of purposes, including enforcement, analytics, and employer self-assessment.
EEOC Sues Employers for Not Filing EEO Reports
Pay Transparency: More details will be available by the end of legislative session on July 31 as we are waiting to see if it will pass or not.
IRS 5500 Form: The IRS, Department of Labor, and Pension Benefit Guaranty Corporation developed the Form 5500-series returns for employee benefit plans to satisfy annual reporting requirements under ERISA and the Internal Revenue Code.
Form 5500 Corner
- Due Date: The last day of the seventh month after the plan year ends (July 31) for a calendar year plan
- Extensions: Deadline to file for an extension on Form 5558 is January 1, 2025