Compliance Stuff

  The California Civil Rights Council has been working on proposed regulation revisions to include automated decision-making in the requirements under the Fair Employment and Housing Act. The Council met on October 17, 2024, for public comment on  the most recent version of the regulations  and voted to extend the comment period to 30 days, though typically the period is only 15 days. Here are some of the highlights of the proposed regulations:  Definitions An automated decision system (ADS) is defined as a “computational process that screens, evaluates, categorizes, recommends, or otherwise makes a decision or facilitates human decision-making that impacts applicants or employees.” the definition excludes word processing software, spreadsheet software, and map navigation systems. Adverse impact (or disparate impact) includes the use of a facially neutral practice that may create a substantial disparity in the rate of selection in hiring, promotion, or other employme...

Despite some recent positive signs for the U.S. economy, many companies still face the prospect of reductions in force (RIFs), which can be challenging and involve complex processes that require careful planning and compliance with a myriad of laws and regulations. Quick Hits Documenting both the business reasons for a RIF and the objective criteria used to select employees for termination is crucial to mitigating the ris k of discrimination claims and other legal challenges. Employers may want to note the various federal and state legal requirements, such as the WARN Act and any applicable mini-WARN acts when planning and executing a RIF. According to recent figures released by the U.S. Bureau of Labor Statistics, the U.S. economy added 254,000 jobs in September 2024 as the unemployment rate dropped to 4.1 percent from 4.2 percent. Also, in September, the Federal Reserve cut its interest rate for the first time in more than four years in an effort to keep the U.S. job market strong wh...

  With the election drawing near, questions about voting leave laws are becoming more frequent. Employers must understand a patchwork of state laws that regulate voting leave, political speech in the workplace, and related issues . As election season approaches, we are considering some of the intricacies of voting leave laws throughout the United States. Quick Hits As Election Day—Tuesday, November 5, 2024—draws near, employers are considering their leave obligations. Various state, local, and municipal election-related laws have implications for multistate employers’ compliance plans. Notice posting and political speech laws also have implications for employers’ compliance plans. Leave Obligations There are three key issues employers may need to address when considering voting and election leave— posting notices, types of leave, and requests for leave . Posted Notices Some states require employers to post notices informing employees about their voting leave rights. California and ...

The White House’s lead regulatory office is reviewing a proposed rule that would upgrade the cybersecurity protections required under the Health Insurance Portability and Accountability Act (HIPAA). The White House Office of Information and Regulatory Affairs (OIRA) received the proposed rule on Oct. 18. The changes to the HIPAA security rule will “improve cybersecurity in the health care sector by strengthening requirements for HIPAA regulated entities to safeguard electronic protected health information to prevent, detect, contain, mitigate, and recover from cybersecurity threats,” according to a rule  abstract  published by OIRA. OIRA is charge of reviewing major agency rulemakings before they are published. Once the HIPAA updates clear White House review, the Department of Health and Human Services would be able to release the Notice of Proposed Rulemaking for public comment. Source(s): Federal News Network , received on October 24, 2024; reginfo (abstract) , accessed on ...

Diversity, equity, and inclusion programs are facing scrutiny across the country, causing some employers to scale down their DEI initiatives or drop them altogether. As companies face pressure and increasing legal challenges, you may wonder how to approach workplace inclusivity – or if you should do so at all. But despite the current climate, DEI programs have clear benefits for businesses and their workforces, and many reports show that most corporate leaders plan to continue or even grow their DEI efforts. We’ll explain how these programs are being challenged and give you five takeaways for maintaining an effective and legal DEI program. What’s Going On? A growing number of large U.S. companies have announced cuts to their existing DEI efforts in response to public backlash and a new wave of lawsuits claiming that corporate DEI programs are discriminatory and can create a hostile work environment. For example,  Lowe’s decided in August  to pare down its DEI policies by com...

  E-Verify+ is a new voluntary employee verification process that allows employees to complete their Forms I-9 through E-Verify. The process has benefits and detriments, so employers invited to participate in the program should discuss E-Verify+ with their immigration counsel to determine whether it is right for their organization. The USCIS recently introduced E-Verify+, which aims to streamline the employment eligibility verification by combining Form I-9 and E-Verify into a seamless digital process. E-Verify+ has employees complete their Form I-9 directly through E-Verify, thereby reducing the burden on employers. The USCIS has been working on E-Verify+ for a couple of years, although it was previously referred to as E-Verify NextGen. In some ways, E-Verify+ stems from the  flexibilities introduced for Form I-9  completion during the pandemic and the  new alternative procedures  using virtual verification for reviewing an employee’s documentation. In both i...

  Paid Family and Medical Leave premium rates are changing starting Jan. 1, 2025. Premiums, collected from employees and employers through quarterly reporting, fund the Paid Leave program. By law, we recalculate the Paid Leave premium rate annually in October. We adjust the premium rate based on premiums contributed and benefits paid during the previous year. Starting Jan. 1, 2025: The premium rate will increase to  0.92% . Employers will pay  28.48%  of the total premium and employees will pay  71.52% . Businesses classified by the Employment Security Department as having fewer than 50 employees for the 2025 calendar year are not required to pay the employer portion of the premium. However, you must still collect the employee premium or pay employees’ premiums on their behalf. Next steps for employers Notify your employees the new rate applies to wages paid on or after Jan. 1, 2025. We will update the employer toolkit, mandatory poster and paystub insert in ear...

Financial institutions, insurance companies, and other businesses regulated by the New York Department of Financial Services (NYDFS) may need to take additional steps to comply with certain NYDFS cybersecurity regulations scheduled to take effect on November 1, 2024. Quick Hits Certain requirements of the amended NYDFS cybersecurity regulations will take effect on November 1, 2024. Covered entities may need to update their policies and procedures, including with respect to corporate governance, encryption, incident response and business continuity plans, system testing, and employee training. On March 1, 2017, the NYDFS enacted comprehensive cybersecurity regulations for financial services companies and other covered entities. The cybersecurity regulations were most recently amended on November 1, 2023, with a series of rolling effective dates beginning on December 1, 2023. Several provisions of the amended cybersecurity regulations will take effect on November 1, 2024, with others com...

  As artificial intelligence reshapes the business landscape, the SEC is gearing up for a new era of oversight. With a handful of cases already on the books and warnings from top officials, the message is clear: AI isn’t just disrupting industries — it’s disrupting regulatory enforcement. From startup pitches to shareholder meetings, Wolters Kluwer’s Mark S. Nelson unpacks the SEC’s sharpening focus on AI. March 2024 marked the dawn of the  SEC’s  awakening to the myriad enforcement issues the agency can pursue regarding  artificial intelligence (AI) . The SEC has brought a small number of enforcement cases thus far. The question is whether this is the beginning of a selective process to pursue the worst bad actors or the beginning of a torrent of enforcement. SEC Chairman Gary Gensler has warned of AI enforcement risk, and Gurbir Grewal, recently departed enforcement head, also  spoke  of this risk: “While perhaps not quite yet a perfect storm, there’s ce...