California Agency Proposed Earned Wage Access Regulations
The California Department of Financial Protection and Innovation (DFPI) issued proposed regulations that would govern earned wage access.
California regulators plan to subject earned-wage access firms, income share agreement providers, and other fintech lenders to the state’s consumer financial protection laws and regular examinations. The proposed regulations define income-based advances and would require providers to register with, and submit annual reports to, the DFPI. The proposed regulations aim to cover various EWA models.
This story was sourced from DFPI website, Bloomberg News, and Payroll.org.
Maryland Delays Paid Family and Medical Leave Program
The Maryland Family and Medical Leave Insurance (FAMLI) program will be delayed by one year, with new start dates for employer withholding and employee benefits.
Employers must begin withholding contributions for the program on October 1, 2024 (previously October 1, 2023). The amount withheld for contributions will be capped at 1.2% of an employee’s income, up to the social security wage base. Employers with 15 or more employees must pay 50% of contributions but may agree to pay more if notice is given to employees. Employers will be required to provide employees notice of changes to withholding rates set by the Maryland Secretary of Labor.
Employees may access benefits beginning January 1, 2026 (previously January 1, 2025). Benefits will be capped at 100% of an employee’s average weekly wage. The employee’s average will be compared to the state average to determine exact benefit amounts.
The FAMLI program was also expanded to cover bonding time with new children and to include domestic partners as covered family members. Employers cannot require that other paid leave be used before or at the same time as FAMLI leave, unless an employee agrees.
This story was sourced from Payroll.org.
Revised Utah Withholding Tables Effective
Utah’s withholding guide was updated April 11 by the state tax commission, with the changes taking effect June 1, following a decrease to the state’s income tax rate.Including revised percentage method and wage bracket withholding tables
The tax rate was decreased to 4.65%, from 4.85%, in a bill (HB 54) signed March 22 by Gov. Spencer Cox (R). Other changes in the guide were made to the withholding schedules.
This story was sourced from Payroll.org and Bloomberg.
Changes To Illinois Paid Leave
On March 13, 2023, Illinois Governor J. B. Pritzker signed the Paid Leave for All Workers Act (the Act). The Act is the first statewide paid leave law in Illinois; it mandates paid leave “for any reason” for employees. The new Act, including the leave accrual requirements, will take effect on January 1, 2024.
Illinois employers should review their current policies and procedures for compliance.
Employees will accrue one hour of leave per every 40 hours worked. After accruing leave for 90 days – beginning either on January 1, 2024, or the first day of employment (whichever is later) – employees may begin using their accrued time off. Employees can use up to 40 hours of leave in a 12-month period.
Employees must be paid their full hourly rate for time off under the new law. Tipped employees must receive at least the minimum wage. Up to 40 hours of accrued but unused time may be carried over to the next year. Employers may elect to frontload time, making at least 40 hours of leave available to employees January 1, 2024, on the first day of employment, or at the beginning of a new year. If an employer front-loads, then it will not be required to carry over unused time to the following year.
Employers will be required to maintain records as well as provide employees with applicable notices.
This story was sourced from Payroll.org, illinois.gov and www.klgates.com.