by Federal law is often the focus of attention when considering laws that affect people management. In recent years, however, states have increased their oversight and legislation regarding the employment relationship. It is time to monitor what the states are considering. All but five states will have legislatures in session during all or part of the first quarter of 2024. Human resources professionals should monitor what is being proposed and what is being enacted in the states where their companies have employees.
Issues to Watch For:
A strong indicator of what legislation may be up for consideration is to look at trends in other states. Topics getting attention around the country include:
Paid Leave: In recent years, more than a dozen states have adopted laws that require private industry employees to receive paid leave. How employees are paid under the law differs between states. Some states require that employers of designated sizes or industries provide paid leave. Other states have set up paid leave programs similar to unemployment compensation programs, where the employee applies to the state for payment. These programs are funded by the contributions of employers or of employers and employees.
Wage Theft/Pay Transparency: Several states have enacted so-called ‘wage theft’ or ‘pay transparency’ laws, which require specific pay-related notices to be provided to employees. A growing number of pay transparency laws require employers to disclose pay or at least pay ranges in job ads.
Non-Compete Agreements: For many years, only a few states, such as California and North Dakota, had laws invalidating employee agreements that prohibited employees from working for a competitor after they left the first employer. The number of states making such agreements unenforceable in recent years has increased. Other states have narrowed the groups of employees who may be subject to non-compete agreements based on wage type or annual wage.
“Captive Meeting” Prohibition: Recently, states have begun to consider limiting when an employer can lawfully require employees to attend meetings addressing specific issues such as religion, politics, union organizing, etc. The proposed and enacted ‘captive meeting’ laws prohibit employers from requiring attendance even when employees are paid for their time at the meeting. New York, Minnesota, Connecticut, and Oregon are among the states with laws already addressing the issue.
Monitoring Suggestions:
- If your company has someone whose job includes legislative monitoring, express your interest in staying current on specific topics or human resources issues.
- Use the resources through the Society of Human Resources Management or similar HR-industry sources that regularly report on state legislative activity.
- State legislatures often have online monitoring tools that anyone can access to track bills of interest.
- Keep leadership aware of legislative trends related to people management appearing in your company’s operational footprint and in the states near the footprint.
Companies differ in how or whether they will become involved in responding to legislative proposals of business interest. Clarify with senior leadership how it wants to address legislative concerns in people management and who has the authority to speak on behalf of the company for this purpose.
