10 Laws Employers Need to Know About in 2023
As HR’s influence expands across business, those decisions are increasingly subject to government regulation. The good news is, in 2023 and 2024, new laws taking effect will guide employers to make better, more conscientious decisions that respect and protect workers.
Federal Laws and National Implications
1. The Pregnant Workers Fairness Act
Passed in the eleventh hour as part of the omnibus spending bill in December 2022, the Pregnant Workers Fairness Act (PWFA) requires employers to provide reasonable accommodations to pregnant workers while on the job.
Employers will already be familiar with the language of this law because it’s based on the Americans with Disabilities Act (ADA). It’s expected to take effect in June 2023.
HR Dive created a helpful guide on what employers should know about the PWFA, including this:
Employers also may need to keep in mind that the PWFA ensures that the responsibility of determining proper accommodations belongs to the expecting employee and their doctor . . . ‘paternalistic accommodations are officially codified as an absolute no-go.’”
2. The NYC anti-bias-in-hiring law
Tech tools that rely on artificial intelligence for sourcing and vetting job candidates are increasingly popular among hiring companies, but just because something uses data to recommend decisions, it doesn’t mean those are good decisions. In some cases, these tools are powered by pseudoscience or flawed data, other times by 100-proof snake oil.
New York City is aiming to mitigate the bias and risks of using this technology for hiring and firing decisions. A new law, expected to take effect in April 2023, will require such tools to undergo third-party bias audits.
The law applies to both employers and employment agencies, and, according to Littler, requires that:
Any such tool undergo an annual, independent “bias audit,” with a publicly available summary
Employers provide each candidate (internal or external) with 10 business days’ notice prior to being subject to the tool
The notice list the “job qualifications and characteristics” used by the tool to make its assessment
The sources and types of data used by the tool, as well as the applicable data-retention policy, be made available publicly (or upon written request from the candidate)
Candidates be able to opt out and request an alternative selection process or accommodation
3. New pay transparency laws
New laws passed in California and New York City require employers to publish estimated pay ranges on job postings.
These laws apply to many employers that aren’t located in CA or NYC: If the advertised job can be done by a worker in NYC or in the state of California, you’ll have to comply.
California’s new law also requires employers with 100 or more employees to file employee compensation data (that includes demographic information of workers) with the state Department of Fair Employment and Housing.
4. A federal ban on non-compete clauses
To be clear: This is not yet a law. Rather, in January 2023, the U.S. Federal Trade Commission proposed an end to non-compete clauses in employment agreements.
According to Nik Polpi at TIME, “Roughly 30 million people—about one in five American workers—are bound to non-compete clauses across a variety of jobs, including hairstylists, doctors, and even sandwich makers. These workers are often forced to remain in their current jobs, which may pay less than other companies, or risk being shut out of their industry altogether.”
There’s no bill yet, but the idea has a great deal of support from the public. Employers should keep an eye out for updates.
New State Laws and Regulations
5. Colorado FAMLI Act
Employers in Colorado should start planning for the paid Family and Medical Leave Insurance act (FAMLI), which will be enforced beginning in 2024.
According to Mercer, “Beginning in 2024, the program will provide eligible employees partial wage replacement for 12–16 weeks of leave, depending on the circumstances. Employees will be able to take paid leave for many of the same reasons permitted under the federal Family and Medical Leave Act (FMLA). The program also will extend paid leave so victims of domestic violence, sexual assault or stalking can handle related issues.”
6. Rhode Island Pay Equity Act
A new law that took effect in Rhode Island on January 1, 2023, prohibits employers from requesting or using an applicant’s wage or pay history to set a salary range for a job offer.
According to the Center for American Progress, the use of salary history in hiring and compensation decisions “relies on false assumptions and biases about the relationships among salary, worker value, and market value, rendering it ineffective as well as harmful. In addition to perpetuating wage disparities, reliance on prior salary is unnecessary given other available, less bias-informed factors that employers could use to gauge a candidate’s value. Moreover, salary history can provide a convenient rationale for employers who seek to justify pay disparities or depress wages.”
7. Miami Beach CROWN Act
In October 2022, the Miami Beach City Commission voted unanimously in favor of the CROWN Act, which prohibits race-based hair discrimination.
According to a press release from the commission, the new law prohibits “discriminatory practices in housing, employment, public services, funding or use of city facilities based on the texture or style of a person’s hair. The new ordinance applies in cases where hair is commonly associated with a particular race or national origin, such as Black communities.”
A page about the CROWN Act by the Legal Defense Fund states that black women “are more likely to be sent home from the workplace because of their hair” and “80% of African American women felt they needed to switch their hairstyle to align with more conservative standards in order to fit in at work.”
8. Illinois Family Bereavement Leave Act
The Illinois Family Bereavement Leave Act (FBLA) took effect on January 1, 2023.
The new law is an expansion of the existing Child Bereavement Leave Act (CBLA) and requires employers to provide unpaid leave for absences after loss of pregnancy, unsuccessful IVF treatment, unsuccessful adoption or surrogacy, or a medical diagnosis that affects the pregnancy.
According to a press release from the state, the new law also guarantees “leave time after the loss of family members previously not covered by the CBLA, including spouses, domestic partners, siblings, grandparents, and stepparents. Employees may take up to two weeks, or 10 working days, of unpaid leave time for any of the events covered by the FBLA to grieve, to attend a funeral, or to make arrangements necessitated by the death of the family member.”
9. New York Breastfeeding Law
The state of New York has expanded accommodations for breastfeeding workers while on the job.
According to a release from governor Kathy Hocul’s office, the law “requires all employers in New York to ensure that pumping spaces are convenient and private, as well as include seating, access to running water and electricity, and a working space. It will also require employers to develop and implement a written policy regarding employee rights when breastfeeding in the workplace. The new legislation will ensure that all employees across the state will receive the same basic accommodations that public employees currently receive.”
10. Philadelphia Transportation Law
A new law in Philadelphia, PA, requires employers with 50 or more employees to offer commuter benefits through “a pre-tax payroll deduction for mass transit or qualifying bicycle expenses, or via an employer-paid benefit where companies supply workers with a public transit key card for commuting expenses,” reports Laura Smythe for the Philadelphia Business Journal.
Emily McCrary-Ruiz-Esparza is a freelance reporter based in Richmond, VA, who covers the future of work and women’s experience in the workplace. Her work has appeared in the Washington Post, Fast Company, Quartz at Work, and Digiday’s Worklife.news, among others.
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