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4 Compliance Trends to Know for 2022

Compliance’s evolving nature means we need to stay agile. Help your organization be proactive through Q2 2022 and beyond by understanding the newest updates to federal, state and local laws affecting employers. Catching up on these up-and-coming trends will help you get started.

State and local paid sick leave

Paid sick leave laws are continuing to gain traction across the country. Currently, 16 states and Washington, D.C. have enacted their own paid-sick-leave policies in some form. And some cities — such as Chicago, Minneapolis and Philadelphia — have passed similar laws.

These rules vary by state, but they often regulate similar factors, including:""

  • qualifying events
  • accrued time-off rates
  • maximum accrual limits
  • payment mechanisms
  • which employers are covered

The fine details of each of these policies are unique by jurisdiction. Understanding and adhering to the paid sick leave laws where you operate is crucial.

Remote work tax

By recruiting and hiring remotely, even businesses with one physical location may have a taxable presence in multiple states. Certain states offer credits if taxes are paid or withheld elsewhere, while others only impose wage taxes if an employer is conducting business or carries economic presence within them.

But the convenience of remote work isn’t without challenges. Today, more state and city officials are determining that having any wages paid to an employee working within the state is enough to trigger employer registration and withholding requirements.

Organizations considering a remote employee should first identify the possible cost and compliance requirements of doing so. And it’s important for employers to understand the unique tax laws of the jurisdictions where they have a physical presence and any state in which their employees work.

Sexual harassment

In March, the president signed a bill banning all pre-dispute arbitration agreements for sexual harassment and sexual assault claims.

Historically, these contractual clauses force an employee to settle disputes out of court and in lieu of filing a lawsuit through arbitration. The new law — also known as the “Me Too” law — allows for an individual to void such an agreement if it was signed before their sexual harassment or assault claim. While an employee still has the option for arbitration, should they choose it, this law leaves the option for a lawsuit.

Wage transparency

More states are introducing laws that condone greater visibility for wages, benefits and other forms of compensation in job postings.

In 2018, California was the first state to enact a wage transparency law. Soon after, more jurisdictions have followed its lead. Effective Jan. 1, 2023, a recent bill in Washington will require businesses of 15 or more employees to disclose an opening wage scale or salary range with any new job listing or internal transfer.""

New York City recently amended its wage transparency law, shifting the rule’s effective date to Nov. 1. This law requires any employer operating in the city with at least four workers — including independent contractors — to disclose minimum and maximum salaries with any new job advertisement. Additionally, Rhode Island will join the states with wage transparency laws in January 2023.

Given the rise of remote work and the varying nature of wage transparency laws, it’s crucial for a business to consider these rules in the states where they recruit and operate.

How we help

Paycom’s single, easy-to-use app for HR and payroll has powerful tools to help you reduce exposure to the audits and penalties surrounding employment laws. Paycom Learning, the intuitive training experience, delivers engaging content surrounding sexual harassment laws, data compliance and more. Plus, Paycom’s Government and Compliance tool helps you comply through:

  • a single system of record for FMLA data
  • real-time insight and reports
  • monitoring of new legislation and corresponding software enhancements

View our on-demand webinar for even more compliance updates and trends affecting your business in 2022 and beyond. And explore Paycom’s easy-to-use app to learn how it helps you comply while simplifying the lives of employees.

DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.