Your business model is working. You are effectively predicting the needs of your clients, providing an excellent service or product and its business as usual. Or is it? Sometimes small business leaders miss a shift in employment regulation because they are doing exactly what they are supposed to do, focus on their primary business functions and productivity. However, it is imperative that you stay ahead of regulatory changes that may impact your workforce. Non-compliance may result in fines, penalties and disrupt your employees. With this knowledge, business owners must be vigilant and closely monitor developments.
IN EFFECT FOR KY: Pregnant Workers Act
Senate Bill 18, the Kentucky Pregnant Workers Act was signed earlier this year and became effective June 2019. In summary, employers with 15 or more employees are now required to provide reasonable accommodations to employees who are limited due to pregnancy, childbirth, and related medical conditions, unless it would impose an undue hardship on the employer to do so. The law includes lactation and the need to express breastmilk for a nursing child as a related medical condition that must be reasonably accommodated. In addition, employers are required to provide details of the regulation to employees. If you have any questions regarding the new Kentucky regulation or need assistance updating your handbook policies and notifying employees, Contact PEOPLE HR today to ensure you are complying with the scope of the new regulation.
UPCOMING FEDERAL: Overtime Rule Changes
The proposed changes drafted during the Obama era, were struck down swiftly after the Trump administration was elected. Under the current administration, the Department of Labor has been working on a new ruling that has just been released. The minimum salary threshold of $23,660 has just been raised to $35,568 effective January 1, 2020. Business owners should note meeting the salary threshold doesn’t automatically make an employee exempt from overtime pay; the employee’s job duties must primarily involve executive, administrative or professional duties as defined by regulation. Decision-makers should begin assessing their workforce to determine if their employees are correctly categorized as exempt or non-exempt based on job duties, and if the potential changes will impact your team and financials. PEOPLE HR provides a detailed job duties analysis to help businesses make these determinations and ensure compliance.
WATCH FOR FEDERAL or STATE: Paid Leave Laws
At the federal level, paid-family-leave proposal will need bipartisan support in a divided Congress so may not be passed anytime soon, despite gaining support. More local governments are considering their own ordinances however state legislatures may attempt to stop them from passing leave laws. Business Owners in Louisville Metro might recall the local ordinance to increase minimum wage, however the KY Supreme Court struck that down in 2016, asserting local government doesn’t have the right to set min wage. It is possible that any changes to Leave Laws in the state of Kentucky shall be treated in the same fashion and will need to go through the state legislature.