All posts by Legislative Update

DHS extended the H-1B Cap Gap period with a new rule, allowing students with pending or approved petitions to maintain work authorization.

Virginia SB 1057 clarifies certain words and changes the total wages that could be earned which may disqualify a claim for a week's benefits.

South Dakota SB 26 reduces employer contribution rates and increases the administrative fee rate for reemployment assistance.

Nebraska LB 297 provides that in tax year 2025 only, the category twelve employment security tax rate will be 0.48.

Montana HB 210 requires the state's Department of Labor and Industry to crossmatch unemployment benefits applicants with DMV records.

Disqualifies claimants from receiving unemployment benefits if they are under investigation for falsifying evidence to obtain or increase benefits.

Idaho HB 53 amends existing law to add certain definitions for the prevention and deterrence of unemployment insurance fraud.

Michigan SB 975 updates language for when an individual is presumed to have voluntarily left work if absent for three consecutive workdays.

Michigan SB 40 establishes weekly benefit amounts for each of an individual’s dependents, increasing the maximum weekly benefit amount and weeks available.

New E-Verify bills in Florida may change local requirements with stricter rules and harsher penalties for Form I-9 non-compliance.

Get an overview of everything you need to know for the key updates and changes of the 2025 Form W-2 recently released by the IRS.

Ohio's Pay Stub Protection Act requires employers to provide employees with access to a statement of their earnings and deductions.

On January 8, 2025, President Joseph R. Biden, Jr. declared a major disaster exists in the State of California ordering Federal aid. The aid is set to supplement State, tribal and local recovery efforts in areas affected by wildfires and straight-line winds.  President Biden’s declaration makes Federal funding available to those affected in Los Angeles County. Effective Date January 7, 2025 Implication to Stakeholders Business owners and residents who sustained losses in the designated areas may apply for disaster unemployment (DUA) benefits at www.disasterassistance.gov. Other ways to apply are by phone at 800-621-FEMA (3362) or by using the FEMA App. Recommended Action Employers should be aware of this so they can notify any employees who may be impacted and eligible for DUA. 

On December 24, 2024, President Biden signed HR 3797, the Paperwork Reduction Act, which deals with an alternative manner of furnishing health insurance coverage statements to employees—specifically the 1095-C.  (The 1095-C provides coverage information to employees regarding health insurance options offered by Applicable Large Employers). Key Changes of the Paperwork Reduction Act related to Affordable Care Act (ACA) reporting: Allows employers the option to use covered individuals' full name and date of birth if unable to collect TINs (for statements due in 2025) Increase from 60 to 90 days to respond to IRS Notices related to proposed assessments (beginning in 2025) This is a Federal change, so any states with paper furnishment requirements may still be in play Prior to this amendment, the 1095-C had to be furnished to each employee in hard copy format, with a due date that was permanently extended to an automatic 30-days beyond the January 31 due date, which for calendar year 2024 would be March 3, 2024. The new requirement states that an ALE normally required to furnish such statements would be allowed to furnish them in an alternate manner if they provide “clear, conspicuous and accessible notice” regarding how to request a copy and that notice must be provided “not later than the later of…” January 31 of the calendar year for which the return was required, or within 30 days of receiving the employee request. The newly signed measure retains the original effective date that shall “apply to statements for calendar years after 2023.” Employers awaiting IRS guidance may look to the process established for the 1095-B to guide their transition. We will continue to monitor for new legislation or publications in the event any dates related to this Paperwork Reduction Act are altered. It will be important to watch states react to the federal law, as several states have their own reporting requirements. Stay tuned to this space for updates on both federal and state ACA reporting requirements. The full language of the bill can be found here.

The IRS has unveiled a draft of the 2025 Form W-4 with several key updates and changes to improve clarity and usability for employees.

Delaware HB 433 changes the unemployment rate calculation from a benefit wage to a benefit ratio, making it more responsive to economic changes.

Proposition A in Missouri would adopt an Earned Paid Sick Time law for the state. Learn what this would mean for employers and employees.

Illinois Governor J.B. Pritzker recently signed Illinois Senate Bill 0508 into law. This new law amends the already existing E-Verify law by adding protection for employees experiencing negative results from E-Verify. The new requirements go into effect on January 1, 2025, but employers should expect some clarification surrounding the process from the Illinois Department of Labor, (IDOL), prior to that date. The law states that it does not require any employer to enroll in any electronic verification system, including E-Verify, but also contains some confusing language that appears to limit usage in the state by saying “an employer shall not impose work authorization verification or re-verification requirements greater than those required by federal law.”  This wording will likely be officially clarified before the effective date, as the intent is to allow voluntary participation while adding specific guardrails. While the law restates some previous E-Verify requirements, such as not taking adverse employment action based on a notification of discrepancy alone, it adds provisions for notifications to employees in the event the employer receives a “Notice of Inspection.”  A new template for a posting providing the required information is currently in development at the IDOL. Additionally, employers are now required to provide notice to employees within a specified timeline when discrepancies are identified. Employers must provide notice within a specified timeline of 5-7 working days depending on the nature of the discrepancy. There are penalties associated with violating this act, and if such a violation is deemed to include intent, penalties can range from $2,000-$5,000 for a first offense. We expect clarification on the poorly worded sections of the amendment as well as possible legal challenges for any E-Verify infringements prior to the effective date of January 1. Stay tuned for updates on this situation.