North American Employment Law 2022 Updates
The past year was unlike any other. Due to the substantial focus on COVID-19 mandates, on both federal and state locality levels, the US employment law landscape looked remarkably different in comparison to previous years. In Canada, employment law continued to be protective towards employees. As the end of 2021 is approaching and North America is finding its way back to normalcy, there are various legal Canadian and US employment updates on the horizon we want to make you aware of coming into the new year.
If you are a client of PGC, we are here to help your business prepare for how it may be impacted by these changes. Here is a breakdown of important federal changes being implemented in the US in 2022.
US Employment Law 2022 Updates
US Paid Sick Leave
If you are a client of PGC, please refer to our updated Paid Sick Leave Guide, which provides a list of states and localities where paid sick leave is required in 2022.
Minimum Salary Exemption Requirements in 2022
The federal exemption requirement mandates that certain employees be paid a minimum salary of $684 weekly, or $33,696 annually, to be classified as exempt from overtime. The following states and localities have adjusted their minimum salary exemption requirements:
*The amount indicated for New York in 2022 has been proposed and is likely to be finalized through the appropriate legislation.
Hourly Computer Employee Exemption
The federal hourly exemption for employees in computer related occupations is $27.63 hourly, or $684 weekly, to be classified as exempt from overtime. The following states have adjusted their minimum salary exemption requirements for computer based employees in the US:
California: $50 hourly or $104,149.81 annually
Colorado: $28.92 hourly
Washington: $50.72 hourly
Restrictions on Private Employer Application Questions
Several clients have contacted us regarding the “Ban-the-Box" and ban on salary history laws that have sprung up in certain states. These laws prohibit private employers from asking applicants about their criminal history and previous salary in employment application questions.
It is important that you know whether these laws are applicable in the state you are operating in as you update your employment application procedures for 2022. You need to consider whether legal restrictions allow you to inquire about an applicant's history. Let’s explore these ‘ban’ US employment laws in a little more detail.
Ban-the-Box Laws 2022
Ban-the-Box laws prohibit employers from asking prospective candidates about their criminal history during the hiring process. These laws vary as to the stage of the hiring process in which employers may if ever, ask the applicant about their criminal history.
States implementing Ban-the-Box laws in 2022
There are currently 15 states that have ban-the-box laws applicable to private employers:
1) California
2) Colorado
3) Connecticut
4) Hawaii
5) Illinois
11) New Mexico
12) Oregon
13) Rhode Island
14) Vermont
15) Washington
6) Maine
7) Maryland
8) Massachusetts
9) Minnesota
10) New Jersey
Cities implementing Ban-the-Box laws in 2022
Additionally, there are 22 cities and localities that have ban-the-box laws applicable to private employers:
1) Austin
2) Baltimore
3) Buffalo
4) Chicago
5) Columbia (MO)
6) DeSoto (TX)
7) The District of Columbia
8) Kansas City (MO)
9) Los Angeles
10) Montgomery County (MD)
11) New York City
12) Philadelphia
13) Portland (OR)
14) Prince George’s County (MD)
15) Rochester
16) San Francisco
17) Seattle, Spokane (WA)
18) St. Louis, Suffolk County (NY)
19) Waterloo (IA)
20) Westchester County (NY)
Ban on Salary History Laws 2022
State and local governments are increasingly adopting laws that prohibit employers from requesting salary history information from job applicants.
States implementing salary history bans in 2022
The following states have enacted salary history bans applicable to private employers:
1) Alabama
2) California
3) Colorado
4) Connecticut
5) Delaware
6) Hawaii
7) Illinois
8) Maine
9) Maryland
10) Massachusetts
11) Nevada
12) New Jersey
19) New Jersey
20) New York
21) Oregon
22) Rhode Island
23) Vermont
24) Washington.
13) New York
14) Oregon
15) Rhode Island
16) Vermont
17) Washington.
18) Nevada
Cities implementing salary history bans in 2022
The following city and localities have enacted salary history bans applicable to private employers:
6) Puerto Rico
7) San Francisco
8) Suffolk County (NY)
9) Toledo
10) Westchester County (NY)
1) Albany County (NY)
2) Cincinnati
3) Kansas City (MO)
4) New York City
5) Philadelphia
Canadian Employment Law 2022 Updates
It shouldn’t come as a surprise that Canada traditionally takes a protective approach towards employee rights; and so as expected for 2022, Canadian law makers continue efforts to safeguard employee rights. Next year, Canadian laws will continue to regulate matters tied to employees’ compensation, accommodation rights, restrictive covenants, and severance and termination.
Candian Province-Specific Employment Law Updates
Ontario
COVID-19 Employment Law Updates in Ontario
All remaining public health and workplace safety measures will be lifted by March 2022. According to Ontario’s plan to safely re-open, starting January 17, 2022, various space settings will be evaluated and restrictions will be lifted based on the level of risk in each setting. Ontario’s Plan to Safely Reopen Ontario and Manage COVID-19 for the Long Term is available on their website.
Bill 43, Minimum Wage Increase in Ontario 2022
Ontario has proposed a minimum wage increase in response to the considerable increases in the cost of living due to the pandemic. If passed, the general minimum wage would increase from $14.35 CAD to $15.00 CAD per hour, effective January 1, 2022. Bill 43, Build Ontario Act (Budget Measures), 2021 was referred to the Standing Committee on Finance and Economic Affairs on November 18, 2021. We will provide updated information if the bill passes and if it impacts any of your workers.
Bill 27, Working for Workers Act, 2021
On November 30, 2021, the province announced the passing of Working for Workers Act, 2021. The Act will amend the province’s current Employment Standards Act, 2000 (ESA), as well as other statutes. The most significant changes to the ESA include the following:
Disconnecting from Work Policy in Ontario
The act would require employers with 25 or more employees as of January 1 of any year to ensure that, before March 1 of that year, to provide a written policy for all employees with respect to “disconnecting from work.”
Disconnecting from work is defined as “not engaging in work-related communications” to be “free from the performance of work” after working hours. Employers would be required to provide a copy of the policy within 30 days of preparing it, or, within 30 days of any changes to an existing policy. Additionally, employers would be required to provide the policy to new employees within 30 days of their hire. A Disconnecting from Work Policy will be required by covered employees six months from the date that the bill becomes a law.
Non-Compete Agreements: The Act would prohibit employers from including non-compete provisions in any employment contract, or any other contract, with the employee, with limited exceptions.
Any non-compete agreement entered in violation of the Act would be rendered void. However, employers would still be permitted to protect their intellectual property through narrower clauses.
Establishing a Licensing Framework for Recruiters and Temporary Help Agencies: The Act proposes to establish a licensing framework for temporary help agencies (“THAs”) and recruiters. The Act would require THAs and recruiters to apply for licenses to operate in the province and prohibit individuals without a license from operating or acting as a THA or recruiter.
THAs and recruiters would be vetted before being issued a license to operate, and a refusal of the issuance or renewal of a license is permissible if there is sufficient evidence proving the THA or recruiter will not conduct itself with honesty and integrity and in accordance with the law. For further information, please visit the news release announcing the framework.
British Columbia
Minimum Wage in British Columbia 2021
On June 1, 2021, the province increased its general minimum wage from $14.60 CAD per hour to $15.20 CAD per hour.
Paid Sick Leave in British Columbia 2022
On November 24, 2021, the province announced a permanent standard of five days of paid sick leave per year, effective January 1, 2022. This paid sick leave will not be limited to reasons related to COVID-19. The province has not yet issued any further details of the regulation. We will provide additional information on the specific aspects of the regulation as they are published.
Any Questions on Canadian and US Employment Law 2022 Updates?
If you are a client of PGC, please contact your business manager if you have any questions on any US employment law updates.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.