2023 U.S. Employment Law Changes to Consider

The outbreak of COVID-19 resulted in significant changes in the work environment, such as a hybrid work culture and pay entitlements for COVID-19 patients, being upheld by US employment law. As the pandemic recedes, significant changes are being made to US labor law policies; policies that were religiously followed in 2022 will no longer be relevant in 2023. Read on to learn more about new and updated employment laws and changes employees should know about.

Federal Labor Law Changes

Employers must be fully aware of and abide by new employment laws. Here are some of the major changes to federal labor law that will come into effect in 2023.

Minimum Wage for Federal Contractors

• From January 1, 2023, the minimum wage for federal contractors will be adjusted yearly and announced at least 90 days before the new wage takes effect
• As of January 1, 2023, the minimum pay for tipped employees working as federal contractors must equal 85% of the indexed wage
• As of January 1, 2023, and for every succeeding year, the minimum pay for tipped employees working as federal contractors must equal 100% of the indexed wage

COVID-19 Workplace Alerts

• AB 2693 extends and modifies the rule that requires employers to alert employees if they’ve been exposed to COVID-19. The 2023 amendment to this law permits an employer to post notice of the exposure, rather than having to give written notice to employees. The notice must be posted prominently in all locations where notices are typically displayed for 15 days, and must  include the date when the employee contracted COVID-19
• Federal contractor tipped employees’ minimum pay must equal 85% of the indexed wage as of January 1, 2023.
• Federal contractor tipped employee minimum wage shall be 100 per cent of the indexed wage under this order beginning on January 1, 2024, every succeeding year.

COVID-19

AB 2693 extends and modifies the rule, requiring employers to alert employees about COVID exposure. The new employment law 2023 permits an employer to prominently post a notice indicating COVID exposure in all locations where notices are typically displayed along with the details of employees’ contracted date of COVID-19. This takes the place of giving employees the legally needed written notice.

Pay Transparency

An employer that owns an organization with more than 15 employees must disclose the pay scale for any job posting, regardless of whether the posting is internal or external. If outsourcing recruitment, the employer must disclose the pay scale to the third party recruiter,, and the recruiter must include the pay scale in the job ad

Cannabis Use Protection

To take any disciplinary actions against an employee for marijuana use, the employer must have independent proof of conduct or behavior showing the employee was intoxicated or under the influence of marijuana while doing work-related duties.

Employee Arbitration Agreements

In 2022, the Supreme Court ruled that employers can no longer order lawsuits filed by employees to arbitration, as was previously allowed under the Private Attorney General Act (PAGA).The court concluded that PAGA denied employees the right to file a representative claim (i.e., a claim on behalf of other employees).

State Employment Law Changes

The 2023 changes to state employment laws are described below.

Alabama Labor Law Changes

HB 272: Workplace Weapons
This new law outlines the circumstances under which an employee is permitted to retain firearms and ammunition in their vehicle parked in their employer’s lot. This law came into effect on Jan 1, 2023.

Arkansas Labor Law Changes

Employers of 4 or more employees must now pay a basic minimum hourly rate of $11.00, and premium pay after 40 weekly hours.

California Labor Law Changes

Mandatory Bereavement Leave Policies

• If an employee’s family member dies, , the employees can seek up to five days of bereavement leave. This policy applies if the deceased is the employee’s  spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law 
• Employees actively in service for the preceding 30 days are eligible for this leave. Bereavement leave must be taken within three months of the family member’s death
• You must pay for the same days as you previously offered if your company already has a bereavement leave policy that provides paid days off. The remaining five days won’t be paid if you pay less than five days.

Meal and Rest Break Compliance

• A thirty-minute dinner break is allowed for employees who work more than five hours daily.
  The employer can forego the meal break with the employee’s consent only when their work hours aren’t extended more than six hours
• Employees who work more than ten hours in a single day must be granted a second unpaid 30-minute meal break
• Employees can forgo the second meal break when their work hour isn’t extended more than twelve hours

California AB 257: Fast Food Industry – Regulation

The Fast Food Accountability and Standards Recovery Act has been established, forming the state Fast Food Council inside the Department of Industrial Relations. These authorities will impose minimum standards across the industry for pay, working hours, and other factors associated with fast-food restaurant employees’ health, safety, and welfare. This law was implemented as of January 1, 2023.

California AB 1041: Protected Time Off – Scope of Coverage

This law helps employees include a “designated person” in the definition of a “family member” under the California Family Rights Act (CFRA) and the Healthy Workplaces, Healthy Families Act (HWHFA) of California. When requesting paid (HWHFA) or unpaid (CFRA) leave, employees must now name the specific person(s) for whom they wish to take time off.

California AB 1601: Worker Adjustment and Retraining Notification Act (WARN): Call Center Employees

Call centre employers must provide notice ahead of mass layoff, relocation or termination, as of Jan 1, 2023.

California AB 1632: Title III Accommodations

Businesses must allow members of the public who are affected by Crohn’s disease, ulcerative colitis, irritable bowel syndrome, or any other similar medical condition to use employee restrooms.

California AB 1720: Background Checks: Home Health Services

From January 1, 2023, a requirement that certain people working for home nursing institutions sign a statement disclosing any prior offenses has been removed.

California AB 1751: COVID-19: Workers’ Compensation

Starting January 1, 2023, the rebuttable presumption that an employee’s sickness or disorder caused by COVID-19 was acquired during the course of employment for purposes of receiving workers’ compensation benefits has been extended until January 1, 2024.

California AB 1788: Employer Liability – Human Trafficking

If a supervisory employee at a hotel knowingly ignores evidence of sex trafficking activity on the hotel premises, the hotel owner can be held accountable for human trafficking penalties.

California AB 2068: COVID-19: Workplace Posters

From January 1, 2023, employers are required to post specific COVID-19-related health and safety posters in certain other languages, in addition to English.

California AB 2134: Benefits: Reproductive Health

This new law applies to insurance companies and healthcare plans of religious employers that do not cover abortion and contraception. From January 1, 2023, written information on free abortion and contraception benefits and services offered via the California Reproductive Health Equity Program must be given to insured employees by these plans and insurers.

California AB 2183: Labor – Management Relations: Farm Workers

The Agricultural Labor Relations Voting Choice Act will come into power from January 1, 2023. This act offers agricultural employees the option of voting by mail in union representation elections that previously had to be held in person.

California AB 2223: Employer Liability – Reproductive Health

As of January 1, 2023, an individual is not allowed to be held accountable in civil or criminal court for their actions or inactions related to their pregnancy, or the actual, potential, or alleged outcome of their pregnancy, or for their actions to support or assist a woman or pregnant person who is exercising her reproductive rights

California AB 2282: Discrimination & Harassment: Hate Crimes

From January 1, 2023, the display of hate imagery is considered a part of hate crimes in workplaces.

California AB 2693: COVID-19: Exposure Notifications

This law extends the terms of Section 6409.6 of the California Labor Code (Duties of Employer When Notified of Potential Exposure to COVID-19) until January 1, 2024, which allows employers to publish a notice of potential COVID-19 exposure at the workplace (as well as on currently existing employee portals) rather than providing written notification.

California AB 2960: Civil Procedure

This law  pauses the statute of limitations period (tolls) for right-to-sue notice deadlines under the Fair Employment and Housing Act during required or optional dispute resolution processes, from January 1, 2023.

California SB 523: Protected Categories: Reproductive Health

This law expands mandated health plan coverage for contraceptives from January 1, 2023, and amends the Fair Job and Housing Act to outlaw employment discrimination based on a person’s reproductive health decisions.

California SB 731: Background Checks: Criminal

This amendment of the state penal code automatically seals the criminal records of  defendants for felony convictions made on or before January 1, 2005, providing they’ve completed their sentence, probation, supervision, parole, and any other requirements of their conviction, and have not received a new felony conviction for four years. This change doesn’t apply to serious crimes or registered sex offenders.

California SB 931: Labor-Management Relations

This change allows employee organizations to file complaints with the Public Employee Relations Board (PERB), alleging employer violations of Government Code section 3550, which forbids a public employer from discouraging public employees or applicants from joining or continuing to be members of an employee organization.

California SB 951: Protected Time Off FMLA Paid  

For claims filed on or after January 1, 2025, this change increases the wage replacement percentage for those receiving benefits under the family temporary disability insurance program.

California AB 984: Privacy: Surveillance

As of January 1, 2023, employees who drive fleet vehicles that include GPS position tracking must be informed about how they will be tracked, and are  permitted to turn off GPS during their off hours.

California Privacy Rights Act of 2020: Data Privacy  

This law significantly broadens the privacy and information security obligations of most companies conducting business in California, necessitating considerable adjustments to current HR Individuals’ personal information handling policies, procedures, and practices. It also creates the Privacy Protection Agency to carry out state legislation governing the privacy of customer data.

California SB 1044: Protected Time Off: Non-Retaliation  

An employer from disciplining a worker for failing to show up for work or quitting during a crisis situation. From January 1, 2023, this law forbids denying a worker access to a mobile device during a crisis situation.

California SB 1093: Home Care Agencies: Background Checks

As of January 1, 2023, candidates for home healthcare licenses can submit requests for transfer of criminal record clearance online. This law also removes the need for candidates to submit government-issued identification during the transfer request.

California SB 1126: Benefits: 401K/Retirement/Pension

A payroll deposit retirement savings arrangement must be implemented by employers with one or more employees, who do not currently offer a retirement savings program by December 31, 2025. This bill also broadens the “eligible employer” definition under the CalSavers program to include those with one or more employees.

California SB 1162: Wage Transparency

Companies with 15 or more employees must now disclose a position’s pay scale in its job posting. This law also requires employers with 100 or more contracted employees to submit separate yearly pay data reports about the contracted employees.

Alaska Labor Law Updates

Minimum Wage Update

This update raises the minimum wage for employees to $10.85 per hour, effective January 1, 2023.

Alaska HB 125: Hiring: Veterans Preference

This law increases the preference private sector employers must give to military spouses and dependent children, including surviving spouses of dead service members.

Arizona Labor Law Updates

Minimum Wage Update

This update raises the minimum wage for employees to $13.35 per hour, effective January 1, 2023.

Background Checks: Criminal

This update enables a person to request that all case files of criminal offenses be sealed if they were any of the following:

• Charged with a crime that was later dropped or resulted in a not guilty verdict at trial
• Charged with a crime later dropped or resulted in a not guilty verdict at trial
• Arrested for a crime that was later dropped or resulted in a not guilty verdict at trial.

Colorado Labor Law Updates

Minimum Wage Update

This update raises the minimum wage for employees to $13.65 per hour, effective January 1, 2023.

Colorado: Amendments to Paid Sick Leave Pay Calculation

Effective January 1, 2023, regulations changed regarding how employers calculate the rate of pay when employees use paid sick and safe leave and/or public health emergency leave.

Colorado SB 22-161: Wage Theft

The penalties for businesses that don’t pay their employees on time have increased, and the Colorado Department of Labor and Employment’s Division of Labor Standards and Statistics is now permitted to investigate wage claims brought by a group of similarly situated individuals. Additionally, there are now limitations on how much an employer can be reimbursed for in court fees when a lawsuit against them is successfully defended. The changes also tighten restrictions on businesses’ power to take money out of an employee’s final paycheck to pay for unreturned company property. Minor clauses entered into effect on August 10, 2022, but the majority of the revisions go into effect on January 1, 2023.

Connecticut Labor Law Changes

Minimum Wage Updates

• This update raises the minimum wage for employees to $14.00 per hour, effective January 1, 2023
• In restaurants and hotel restaurants, for the 7th consecutive day of work, premium pay is required at time and one half the minimum rate
• The Connecticut minimum wage is scheduled to increase to $15.00 per hour on June 1, 2023
• The Connecticut minimum wage rate now automatically increases to 0.5 percent above the rate set in the Fair Labor Standards Act if the federal minimum wage rate equals or becomes higher than the State minimum

District of Columbia Labor Law Updates

District of Columbia Tipped Wage Workers Fairness Amendment Act: Sexual Harassment Training

Businesses covered under this act with tipped staff are required to provide a certified report of sexual harassment claims for the calendar years 2020 and 2021 by December 31, 2022, along with a copy of their sexual harassment policy. The deadline for submitting harassment claims originating in 2022 is set for March 1st, 2023. From its original deadline of December 31, 2022, the DC Office of Human Rights has proposed that it move the completion date for sexual harassment training to March 2023.

*Note that a referendum initiative for tip workers in 2022 might render these requirements unnecessary.

District of Columbia B24-0916: Disability Insurance

This law prohibits using a marijuana test as a hiring requirement unless certain conditions are met.

The anticipated effective law for this law is November 17, 2022, following the mayor’s approval, a 60-day congressional review period, and publication in the DC Register. 

*Note that until and unless it is funded by being included in an authorised budget, which cannot be established at this time, this legislation will not be in effect and enforced.

Florida Labor Law Updates

Florida: Miami Beach CROWN Act: Hairstyle Discrimination

This law forbids job discrimination based on protective or natural hairstyles, typically associated with racial and national identity.

Hawaii Labor Law Changes

• This update raises the minimum wage for employees to $12.00 per hour, effective January 1, 2023
• An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the state minimum wage and overtime law
• Domestic service workers are subject to Hawaii’s minimum wage and overtime requirements. Act 248, Regular Session 2013
• The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the state wage rate is higher than the federal rate

Illinois Labor Law Updates

Amendment to Bereavement Leave

Effective January 1, 2023, Illinois amended the scope of the Child Bereavement Leave Act (CBLA), and renamed it to Family Bereavement Leave Act (FBLA). The amendment to the act includes two changes:

1. Expanded definition of family leave.

2. Inclusion of fertility-related loss.

Additional Meal Breaks For Longer Shifts

Effective January 1, 2023, an employee who works in excess of 7.5 continuous hours shall be entitled to an additional 20-minute meal period for every additional 4.5 continuous hours worked. A meal period shall not include reasonable time spent using the restroom facilities.

One Day Rest In Seven Act

Effective January 1, 2023, every employer shall allow every employee at least 24 consecutive hours of rest in every consecutive 7-day period, in addition to the regular period of rest allowed at the close of each working day. The amendment effectively deletes the concept of the “calendar week”.

Illinois SB 1480 and SB 1847: Pay Data Reporting

This law imposes new certification and wage data reporting requirements, as well as comparable reporting duties, on businesses that now submit EEO-1 reports to the state of Illinois.

*Note that these regulations took effect in 2021, but will start being enforced as of January 1st, 2023.

Illinois SB 3616: Hairstyle Discrimination

The Illinois Human Rights Act is modified to forbid discrimination by employers based on certain protected characteristics, including race. This change broadens the definition of “race” to encompass characteristics related to race, such as protective hairstyles like braids, locks, and twists, as well as hair texture.

Maine Labor Law Updates

Maine HP 160-LD 225: Wage & Hour: Vacation Payout

The state’s wages statute has been amended to ensure that all unused paid vacation accrued pursuant to the employer’s vacation policy, on and after January 1, 2023, shall be reimbursed to the employee upon cessation of employment. The amendment requires private employers with 11 or more employees to pay all unused vacation to an employee at the end of employment, regardless of the employer’s policy. Payment must be made in full no later than the employee’s next regular payday. The revisions went into effect on July 19, 2022, though the operating date is January 1, 2023.

Minnesota Labor Law Changes

The update raises the minimum wage for employees to $10.59 per hour, effective January 1, 2023.

Small employer (enterprise with annual revenues of less than $500,000)

This update raises the minimum wage for employees to $8.63 per hour, effective January 1, 2023.

The minimum wage is adjusted annually based on a set formula.

Employees under 18 years may be paid $8.63 per hour

Montana Employment Law Updates

Business with gross annual sales of more than $110,000:

The update raises the minimum wage for employees to $9.95 per hour, effective January 1, 2023.

Business not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less:

Basic Minimum Rate (per hour): $4.00
Premium Pay After Designated Hours 1: Weekly – 40

A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. However, if an individual employee is producing or moving goods between states or otherwise covered by the federal Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana’s minimum wage.

The minimum wage is adjusted annually based on a set formula.

New Jersey Labor Law Updates

Effective January 1, 2023, the minimum wage for employees increased to $14.13 per hour.

New Jersey SB 315 (AB 3684): Business Restructuring: Health Care Industry

Specific healthcare organizations’ sale agreements must adhere to collective bargaining agreements and maintain employee salary and benefits.

New York Labor Law Updates

New York SB 2928: Protected Time Off: Scope of Coverage

Siblings are considered to be family members for the purposes of paid family leave.

New York: NYC Int. No. 1894-2020: Artificial Intelligence (AI) & Robotics

This law mandates that if a candidate has been analyzed using an automated employment decision tool, the employer must notify that applicant.

New York: NYC Int. No. 0134-2022: Wage Transparency

This update introduces a private right of action for employees, clarifies the professions for which salary ranges in the city wage transparency legislation must be publicized, and moves the implementation date to November 1, 2022.

New York: Westchester County Ordinance No. 2022-119: Wage Transparency

This change makes it illegal for an employer to publish an ad for a job, promotion, or transfer opportunity without mentioning the starting and maximum pay range for the position.

North Carolina Employment Law Changes

This update raises the minimum wage for employees to $7.25 per hour, effective January 1, 2023.

Premium pay is required after 45 hours a week in seasonal amusement or recreational establishments.

North Dakota Labor Law Changes

This update raises the minimum wage for employees to $7.25 per hour, effective January 1, 2023.

Ohio Employment Law Changes

Employers with annual gross receipts of $372,000 or more:

This update raises the minimum wage for employees to $10.10 per hour, effective January 1, 2023.

Employers with annual gross receipts under $372,000:

Basic Minimum Rate (per hour): $7.25
Premium Pay After Designated Hours: Weekly – 40
The minimum wage is adjusted annually based on a set formula.

Oregon Labor Law Updates

Paid Family & Medical Leave

The Oregon Employment Department (OED) has published the rules governing Oregon’s new Paid Family and Medical Leave Insurance (PFMLI) program. Beginning from January 1, 2023, the PFMLI program will be funded by employer and employee contributions, in the form of payroll deductions. And, employees will be eligible to take up to 12 weeks of paid time off for family or medical leave or to address a domestic violence situation, from September 3, 2023.

Oregon HB 4086: Workers Compensation: Anti-Retaliation

This change increases the scope of the anti-retaliation provisions of the workers’ compensation statute and defines “beneficiary,” “child,” and “dependent.”

Oregon HB 4138: Notifications: Temporary Disability Benefits

This law allows employers to stop paying out benefits for temporary disability only after giving notice. This written notice must explain why the benefits are being terminated.

Oregon SB 1515: Protected Time Off: FMLA Paid

The term “benefit year” has been changed for the purposes of the paid family and medical leave insurance program.

Oregon SB 1586: Nondisclosure Agreements

This change clarifies provisions prohibiting employers from signing nondisclosure agreements that include, but are not limited to, terms addressing sexual assault, harassment at work, and discrimination.

Pennsylvania: Law, Ordinance or Regulation

Pennsylvania: Philadelphia Ordinance No. 220337: Benefits: Transportation

This law imposes a benefits program for mass transport and bicycle commuting on employers with 50 or more employees.

Rhode Island Labor Law Updates

Effective January 1, 2023, the minimum wage for employees increased to $13.00 per hour.

Rhode Island HB 5261 / SB 270: Wage Transparency & Salary History

This change prohibits asking about a candidate’s prior earnings, or basing employment or wage decisions on them. It requires companies to post a compensation range for each position and forbids wage discrimination.

Rhode Island SB 2548: Benefits: Reproductive Health

This change creates a special enrollment option that enables pregnant employees to sign up for health insurance at any time after their pregnancy begins.

Utah Island Labor Law Updates

Utah SB 39: Tax Withholding

This law changes the responsibility of the employer for certain non-resident employees’ withholding.

Texas Labor Law Changes

This update raises the minimum wage for employees to $7.25 per hour, effective January 1, 2023.

The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.

The Texas State minimum wage law does not contain current dollar minimums. Instead the state adopts the federal minimum wage rate by reference.

Virginia Labor Law Updates

Effective January 1, 2023, the minimum wage for employees increased to $12.00 per hour.

Virginia HB 258: Hospitality: Human Trafficking Training

This change demands training for hotel staff on recognizing human trafficking indicators.

Virginia HB 2307 / SB 1392: Data Security Breach Notification

This change gives individuals some control over their personal information by establishing the Consumer Data Protection Act. The law clearly exempts data that is processed or retained in the course of a person applying to, being hired by, or acting as an agent or contractor of a controller, process, or other entity, provided that the data is used and gathered in the context of that work.

Washington Labor Law Updates

Washington SB 5761: Wage Transparency

This change mandates that employers give a thorough description of benefits in employment advertisements, along with details on hourly or salary pay.

Washington Final Rule re Employer Quarterly Tax Reports

This law requires businesses to include the Standard Occupational Classification code or job title of each employee in their quarterly tax returns.

Washington 2023 Non-Compete Enforceability Thresholds (Annual Announcement): Noncompete Agreement

This change increases the non-compete enforceability threshold for employee earnings to account for inflation, using the consumer price index.

Note that the overtime premium rate is one and one-half times the employee’s regular rate, unless otherwise specified.

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