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February 3, 2023
As an employer, one of the toughest things to address is compliance with a patchwork of different laws at the local, state and federal levels. This year is no exception, with the topics of paid leave and criminal background checks coming to the fore in several states.
As outlined below, a number of states have enacted new laws pertaining to leave and background checks. Meanwhile, several other states are reviewing similar legislation, so it’s important for employers not to become complacent.
There is no federal law in the U.S. guaranteeing paid family and medical leave. Over the past year, conservative-leaning legislators in states like New Hampshire, Vermont and Virginia have championed voluntary paid leave options.
However, in 11 states — California, Colorado, Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Oregon, Rhode Island and Washington — most private sector employees are covered by state-run, mandated paid family and medical leave programs that are funded by payroll deductions.
Small employers with 9 or fewer employees aren’t mandated to cover the employer share of premiums. Benefits will begin to be paid out in Colorado on Jan. 1, 2024.
Oregon’s law affects employers with 25 or more employees. Benefits start to be paid out on Sept. 3, 2023.
Private employers in Michigan and Minnesota are both expecting state-sponsored paid family leave plans to be announced in 2023. In December 2022, a study panel established by the Maine state legislature prepared its final recommendations for a paid leave program.
In October 2022, a similar study panel established by the New Mexico state legislature prepared its report and recommendations for a paid leave program.
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The U.S. Equal Employment Opportunity Commission allows employers to inquire about an applicant’s or employee’s background, or to demand that a background check be done, with some exceptions related to medical and genetic information. But employers are not allowed to conduct background checks, or use the data gathered from them, in a way that intentionally or unlawfully “denies equal employment opportunity to anyone on a protected basis.”
Before performing a criminal background check using a third-party vendor or consumer reporting agency, employers must also be sure they adhere to certain notification requirements of the federal Fair Credit Reporting Act.
That said, an array of states and municipalities have recently passed ban-the-box legislation prohibiting employers from inquiring about a job candidate’s criminal background during the early stage of a job application.
Senate Bill 731 modifies the penal code to automatically erase criminal records for individuals convicted of crimes on or after January 1, 2005, provided they have fulfilled all the terms and conditions of their sentences and haven’t been convicted of another crime for a period of four years. Effective July 1, 2023, the law provides that some felony criminal records be automatically sealed, including arrests that do not end in conviction.
Ban-the-box measures that prohibit employees from inquiring into applicants’ criminal history and/or expunge certain criminal records altogether continue to be a hot topic among legislatures around the country. At the same time, there is a growing call nationwide for paid family and medical leave, and state legislators are expected to continue to introduce measures in response.
For employers wrestling with the ever-changing compliance landscape that such state laws present, HR outsourcing services can help. Instead of manually checking off boxes, outsourced HR professionals manage compliance so business owners feel confident and can focus on revenue-generating activities.
Tasnim Ahmed is a content writer at Escalon Business Services who enjoys writing on a multitude of subjects that include finops, peopleops, risk management, entrepreneurship, VC and startup culture. Based in Delhi NCR, she previously contributed to ANI, Qatar Tribune, Marhaba, Havas Worldwide, and curated content for top-notch brands in the PR sphere. On weekends, she loves to explore the city on a motorcycle and binge watch new OTT releases with a plateful of piping hot dumplings!
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