employment law Archives - Lake Effect HR

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Lake Effect / employment law

Benefits Limits for 2023

Each year, the IRS sets new limits for employee benefits plans and retirement plans. Please see below for Lake Effect’s ready reference chart setting forth the Benefits Limits for the 2023 tax year. A PDF of this information is available on the here.

	2022	2023
Flexible Spending Accounts (FSAs)
Healthcare FSA max election (per year) (incl. LTD FSA)	$2,850	$3,050
Healthcare FSA max rollover	$570	$610
Dependent Care FSA max election (per year) (Single or Married Filing Jointly)	$5,000	$5,000*
Dependent Care FSA max election (per year) (Married Filing Separately)	$2,500	$2,500*

Transportation Benefits
Parking Account	$280/mo	$300/mo
Transit Account	$280/mo	$300/mo

High Deductible Health Plan Requirements to Contribute to an HSA
HDHP min annual deductible - Self-only	$1,400	$1,500
HDHP min annual deductible - Family	$2,800	$3,000
HDHP out-of-pocket max - Self-only	$7,050	$7,500
HDHP out-of-pocket max - Family	$14,100	$15,000
HSA max contribution limit - Self-only	$3,650	$3,850
HSA max contribution limit - Family	$7,300	$7,750
HSA catch up contribution limit (age 55+)	$1,000	$1,000

ACA Plan Limits
Maximum Out-of-Pocket (Self-only or Individual in a Family)	$8,700	$9,100
Maximum Out-of-Pocket (Family)	$17,400	$18,200

QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) – Max Employer contribution
To Individual	$5,450	$5,850
To Family	$11,050	$11,800

Salary Thresholds for Non-discrimination Testing
Highly compensated employees	$135,000	$150,000
Key employees	$200,000	$215,000

Retirement Plans (401(k), 403(b))
Max employee elective contributions for those 49 and younger	$20,500	$22,500
Max employer + employee contributions for those 49 and younger	$61,000	$66,000
Max employee catch-up contributions for those 50+	$6,500	$7,500
Max employee elective contribution plus catch-up for those 50+	$27,000	$30,000
Max employer + employee contributions for those 50+	$67,500	$73,500

Human Resources / Legal - 10/24/2022

EEOC Issues Updated “Know Your Rights” Poster

On October 19, the United States Equal Employment Opportunity Commission (EEOC) issued an updated "Know Your Rights: Workplace Discrimination Is Illegal" poster. The poster replaces the prior “EEO is the Law” poster. It summarizes federal employment laws and explains steps individuals can take if they believe they have experienced any form of prohibited discrimination. Employers must physically and/or virtually display the poster in a conspicuous location where notices to applicants and employees are usually posted. Organizations are well-advised to work with a reputable employment poster service to ensure compliance with all federal and state notice posting requirements. Your partners at Lake Effect HR & Law LLC can provide further guidance or answer specific questions.

Lake Effect is here to answer your questions about federal and state employment laws and posting requirements. We continue to monitor important legal and HR developments that affect employers. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Human Resources / Legal - 10/20/2022

Employers Face New Challenges Under Colorado’s Revised Non-Compete Law

Effective August 10, 2022, employers who aim to protect business interests by requiring employees in Colorado to sign non-compete and customer non-solicit agreements will face new challenges under amendments to Colorado's restrictive covenant law. Key provisions include the following:

Post-employment non-compete agreements, including customer non-solicitation agreements, are presumed void unless all of the following are established:
- For a non-compete agreement, the employee is “highly compensated” at the time of signing and termination, with annual earnings at or above the Colorado Department of Labor and Employment’s highly compensated worker threshold (currently $101,250 per year, to be increased each year);
- For a customer non-solicit agreement, the employee earns at least 60% of the highly compensated worker threshold (currently $60,750 per year, to increase each year);
- The agreement is for the purpose of protecting trade secrets; and
- The agreement is no broader than reasonably necessary to protect the employer’s interest in protecting its trade secrets.
Employers must provide a separate written notice of the terms of a non-compete and/or customer non-solicitation agreement:
- For a prospective employee, the notice must be given before the individual accepts a job offer.
- For current employees, notice must be given at least 14 days prior to the effective date of the agreement or the effective date of additional compensation or other change in conditions of employment that provides consideration for the agreement, whichever is earlier.
- Notices must be signed by prospective and current employees.
Non-compete and/or customer non-solicitation agreement with employees who primarily work or live in Colorado at the time of termination will be governed by Colorado law, and employers may not require employees to adjudicate them outside of Colorado.
The amendments apply to agreements entered into on or after August 10, 2022, but they do not apply retroactively to agreements signed before that date.
Violations of the amended law can result in penalties up to $5,000 per employee or prospective employee. The amendments also provide a private right of action to individuals, who may recover actual damages, declaratory/injunctive relief, and attorneys’ fees and costs.
The amendments do not affect employee non-solicitation agreements, restrictive covenants related to the sale of a business, agreements for the recovery of training and educational expenses, and “reasonable” confidentiality agreements, as defined by the statute.

If your organization has or plans to hire employees in Colorado, please reach out to your partners at Lake Effect to ensure you comply with the amended non-compete and customer non-solicitation agreement requirements.

Lake Effect is here to answer your questions about restrictive covenants and applicable state laws. We continue to monitor important legal and HR pments that affect employers. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Human Resources / Legal - 10/06/2022

COVID-19’S Continuing Workplace Impact: EEOC Revises Pandemic Guidance Again

On July 12, 2022, the EEOC issued updated COVID-19 guidance for employers, reflecting the ever-changing but persistent impact of the virus on the workplace. Key updates include the following:

Workplace COVID-19 testing
- Previously, employers could require COVID-19 testing (although it is a medical exam under the ADA) because the EEOC recognized that a person with the virus would pose a direct threat to the health of others.
- Under the revised guidance, employers may only mandate COVID-19 testing if they show that the testing is “job-related and consistent with business necessity.” (A.6.)
- Mandatory COVID-19 testing will meet the “business necessity” standard when it is consistent with current guidance from the CDC, FDA, and state and local public health authorities. Employers may also consider such factors as:
  - Community transmission rates
  - Vaccination status of employees
  - Possibility of breakthrough infections for fully vaccinated employees
  - Transmissibility of and severity of illness from current variants
  - Potential impact on the workplace if an employee enters with COVID-19 (A.6.)
- Antibody testing does not meet the ADA’s “business necessity” standard for a medical exam; employers therefore may not require such testing before allowing employees to re-enter the workplace. As the EEOC notes, an antibody test does not show whether an employee has a current infection, nor establish that an employee is immune to infection. (A.7.)
Hiring and job offers
- If an employer screens everyone for COVID-19 before allowing entry to the worksite, it can screen an applicant in the pre-offer stage who needs to be in the workplace. (C.1.)
- An employer can also screen applicants for COVID-19 symptoms after making a conditional job offer, as long as it does so for all applicants in the same job type. (C.1.)
- After an applicant has been offered a job, an employer may only withdraw that offer based upon the applicant’s positive COVID-19 test, symptoms, or exposure if: (1) the job requires an immediate start date, (2) CDC guidance recommends the person not be in proximity to others, and (3) the job requires such proximity to others, whether at the workplace or elsewhere. (C.4.)
Interactive process/ accommodation requests
- Delays in engaging in the interactive process and/or responding to employee accommodation requests are no longer acceptable unless an employer shows specific pandemic-related circumstances justified the delay. (D.17.)
Vaccinations
- Consistent with prior guidance, employers may require all employees to be vaccinated against COVID-19, subject to Title VII and the ADA’s reasonable accommodation requirements. Employers may also require proof of such vaccination. (K.1.)
- An employee’s vaccination status must be kept confidential and separated from the regular personnel file. However, an employer may share the vaccination information with other employees who need it to perform their job duties. Such employees also must keep the information confidential. (K.4.)

This is not a comprehensive list of the many issues covered in the updated COVID-19 guidance. Please reach out to your partners at Lake Effect HR & Law to ensure that your organization’s COVID-19 policies and practices are in full compliance with current EEOC guidelines. We are here to answer all of your questions about COVID-19 compliance and will continue to monitor important legal and HR developments in this area. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Legal - 07/21/2022

Chicago Expands Anti-Harassment Laws

Beginning July 2022, Chicago will require employers to provide employees with additional training, a new written policy, and a new posted policy on sexual harassment.

Human Resources / Legal - 06/01/2022

Biden Administration Bans Arbitration of Workplace Sexual Harassment Claims

On March 4, 2022, President Biden signed ithe “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act,” a new law banning mandatory arbitration for workplace sexual assault and sexual harassment claims. Arbitration is a form of dispute resolution outside of the court system. Many employment contracts broadly require employees to resolve claims against employers in arbitration.

This legislation makes language in existing and future employment contracts related to compulsory arbitration of sexual harassment and sexual assault claims unenforceable, at the option of the person bringing the claim. The law does not impact arbitration of other types of employment disputes, and applies to claims and disputes going forward, not past or pending claims. A person bringing a workplace sexual harassment or assault claim may still choose to resolve the claim through arbitration, or they may elect an alternative forum such as mediation, administrative agency proceedings, and/or state or federal court.

In light of this new law, employers should consider the following steps:

Review Employment agreements
Employers should review employment agreements for language about mandatory arbitration. We can assist in this review.
Evaluate voluntary mediation services
Nothing in the new legislature prohibits an employee from resolving disputes outside of court voluntarily. If disputes arise in the workplace, mediation is often a good option for all parties. Mediation is voluntary, confidential, and self-determined, meaning the parties come up with solutions to resolve the dispute. If you would like to learn more about Lake Effect’s mediation services, please contact us.
Reiterate your commitment to creating a harassment-free environment
Kindness is part of our mission and core values at Lake Effect. Our passion is helping employers cultivate kind environments, where workplace harassment has no place. Contact us to assist with leadership training, employee training, workshops, coaching, and other options that may fit your needs.

Lake Effect is here to answer your questions about compliant employment agreements and workplace dispute resolution. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

Human Resources / Legal - 03/07/2022

Dane County Face Covering Emergency Order #7

Public Health Madison & Dane County has issued Face Covering Emergency Order #7. The new order is effective February 1, 2022, and remains in place until March 1, 2022. The only change from the previous Order #6 (see Lake Effect’s summary of the previous orders here) is the extension of time.

Lake Effect is here to answer your questions about how local and state public health orders apply to employers. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Legal - 01/26/2022

OSHA Formally Withdraws COVID-19 Vaccination and Testing ETS

On the heels of the US Supreme Court’s recent ruling blocking enforcement of its COVID-19 Vaccination and Testing Emergency Temporary Standard (ETS), OSHA issued a statement formally withdrawing the ETS as an enforceable temporary standard effective January 26, 2022. OSHA stated that it will continue to pursue the ETS as a proposed rule and focus on finalizing a permanent COVID-19 Healthcare Standard. OSHA continues to encourage COVID-19 vaccination of workers to minimize workplace health risks posed by the virus.

For a complete discussion and history of this issue, please see Lake Effect’s prior blogs on the ETS and the Supreme Court's recent decision.

Lake Effect is here to answer your questions about COVID-19 compliance and will continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Legal - 01/25/2022

Supreme Court Decision on Vaccine Mandate

Supreme Court: OSHA Exceeded Its Authority by Requiring Large Employers to Adopt Mandatory Vaccination Policies, But Healthcare Providers Can Require Employee Vaccinations

On January, 13, 2022, The US Supreme Court issued its much anticipated decision on two Biden Administration initiatives aimed at increasing COVID-19 vaccination rates across the nation: (1) OSHA’s Emergency Temporary Standard, which requires large employers (100+ employees) to adopt mandatory vaccination policies; and (2) the Center for Medicare and Medicaid Services’ (CMS’) Interim Final Rule, which requires certified healthcare entities to mandate employee vaccinations. For a detailed discussion of OSHA’s ETS for large employees, please see Lake Effect's prior blog on this topic.

As to the first, the Supreme Court reinstated a nationwide stay of OSHA’s ETS, finding that parties challenging OSHA’s vaccine mandate will likely prevail on the merits of the case. The Supreme Court explained that OSHA is tasked with regulating workplace health and safety. However, allowing OSHA to regulate the hazards of Americans’ daily lives would significantly expand its regulatory authority in a manner not authorized or intended by Congress. Under the Supreme Court’s ruling, the case will be sent back to the Sixth Circuit for a final decision on the merits, and OSHA cannot enforce the ETS in the interim. Given the Supreme Court’s decision, however, it is highly unlikely that the Sixth Circuit will uphold the ETS.

As to the second initiative, the Supreme Court upheld CMS’ ability to enforce its vaccination mandate for certified health care providers. The Court found that the US Secretary of Health and Human Services is authorized to impose detailed conditions on the receipt of Medicare and Medicaid funds, and those conditions are often aimed at preventing and controlling the transmission of communicable diseases. The Court concluded that requiring healthcare providers to mandate employee vaccinations as one such condition is well within the authority of CMS.

What Should Employers Do Now?
At this time, large employers need not implement OSHA’s detailed vaccination and testing requirements, and it is highly unlikely that the ETS will be upheld at all. However, employers of any size may lawfully implement their own vaccination and testing policies, as long as accommodations for eligible employees are granted in accordance with Title VII (religion) and the ADA (disability).

CMS can enforce its Interim Rule as to covered healthcare provider employers nationwide. Although further litigation on the Rule is likely, covered healthcare providers should prepare to meet upcoming compliance deadlines in January and February 2022.

Lake Effect is here to answer your questions about federal, state, and local regulations that impact employers across all industries. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

COVID-19 Resources / Legal - 01/14/2022

CDC Shortens Recommended COVID-19 Isolation and Quarantine Periods

On December 27, 2021, the US Centers for Disease Control and Prevention (CDC) revised recommendations for people who test positive for or are exposed to COVID-19. The updated guidelines reflect recent evidence that transmission of the now-prevalent Omicron variant typically occurs 1-2 days prior to the onset of symptoms and 2-3 days after. The recommendations are also aimed at returning people to work as quickly and safely as possible in the face of nationwide staffing shortages. The CDC’s updated recommendations provide:

After positive COVID-19 test (regardless of vaccination status)	Isolate at home for 5 days If you have no symptoms or symptoms have fully resolved after 5 days, you may leave your home but continue to mask for 5 more days.
After COVID-19 exposure for people who are not vaccinated or who are more than 6 months out from their second dose of vaccine and not yet boosted	Quarantine for 5 days and then mask for 5 more days If quarantine is not feasible, mask for 10 days. *Note:* the day of exposure is considered day zero (0)
After COVID-19 exposure for people who are boosted or completed the primary Pfizer or Moderna vaccine series within the last 6 months, or who completed the J&J vaccine series within the last two months	Mask for 10 days *Note:* the day of exposure is considered day zero (0)
After COVID-19 exposure (regardless of vaccination status)	If possible, take a COVID-19 test on day 5 following exposure. If you develop symptoms at any time during the quarantine or masking period, get a test and begin isolation at home. *Note:* the day of exposure is considered day zero (0)