Workforce Bulletin

On May 20, 2025, Equal Employment Opportunity Commission (EEOC) Acting Chair Andrea Lucas announced that the 2024 EEO-1 Component 1 data collection is now open and will close on June 24, 2025. This gives covered employers just five weeks to file.

Overview of EEO-1 Reporting Obligations

The EEO-1 Component 1 Report, also known as the Employer Information Report, is a mandatory annual filing that captures workforce demographic data. Covered private-sector employers with 100 or more employees, and certain federal contractors with 50 or more employees meeting specific criteria, must submit demographic workforce information categorized by job classification, race/ethnicity, and sex. The data is used by the EEOC and, in years past, the Office of Federal Contract Compliance Programs (OFCCP) to support enforcement of federal anti-discrimination laws.

On November 21, 2024, legislation will take effect in South Carolina, making that state the latest jurisdiction to regulate earned wage access (EWA) programs. EWA programs are generally targeted towards lower-wage earners, allowing employees to obtain a portion of their paycheck before the employer’s scheduled payday. While EWA can be a lifeline for employees living paycheck to paycheck, consumer advocates worry that hidden and not-so-hidden fees associated with such programs could increase users’ aggregated debt, to the detriment of their long-term financial well-being.

To combat such concerns, states have begun to implement rules requiring employers and third parties offering EWA programs to abide by certain standards. States differ, however, on whether payroll advances though EWA programs should be treated as loans. Categorizing EWA advances in this way obligates employers and third-party providers to abide by a complex set of banking regulations. Thus, it is important for employers that offer or are considering an EWA program to understand the implications, which vary depending on the states where the employer does business.

How EWA Programs Work

Advances under EWA programs are either provided directly by employers as a benefit to employees or by third-party providers directly to consumers. If an employee opts to advance a portion of their paycheck through an employer-provided program, the employer or payroll provider reduces the subsequent paycheck amount on payday to recover the advance. If an employee enrolls in an EWA through a third-party provider, the provider removes the advanced amount from the employee’s direct deposit account on payday.

New Jersey has joined the growing ranks of jurisdictions that have enacted pay transparency laws. Senate Bill 2310 (“the Law”) was enacted on November 10, 2024, and approved on November 18, 2024 as Public Law 2024, chapter 91. The Law will take effect on June 1, 2025, i.e., “the first day of the seventh month next following the date of enactment,” and will require most New Jersey employers to disclose a wage or salary range and a general description of benefits and other compensation programs in their job postings and advertisements. The Law also will require covered employers to make “reasonable efforts to announce, post, or otherwise make known opportunities for promotion” to current employees, a feature that is not common in similar laws enacted by other jurisdictions.

Covered Employers

The Law applies to any employer that has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within the state.

Note that employers in Jersey City with five or more employees within Jersey City are already required to comply with that city’s ordinance mandating the disclosure of salary information in postings. This ordinance remains in effect, which means that Jersey City employers with five to nine employees that will be exempt from the state’s law must still comply with the city’s law.

With 2024 winding down, New York employers should be aware of the updates to the New York State Paid Family Leave (PFL) program that take effect in 2025.

As a reminder, PFL allows eligible employees to take up to 12 weeks of job-protected, partially paid time off within a 52-week period for permitted reasons, such as to bond with a newborn, care for a family member with a serious health condition or assist when a family member is deployed abroad on active military service.

As we noted in a bulletin post last year, New York has modified its program several times since establishing PFL in 2018. While PFL’s changes for 2025, as explained below, are ministerial, it should be noted that New York recently expanded other mandatory benefits, including the provision of paid lactation breaks and the addition of paid leave for prenatal care under the New York paid sick leave program. 

New York State has long required employers to support working mothers by providing certain accommodations for nursing employees. Last year, the State imposed a written lactation accommodation policy requirement on all employers, following the lead of New York City and California (among other jurisdictions) [see our Insight on the lactation accommodation legislation here]. As of June 19, 2024, employers’ obligations have again expanded: all New York State employers must provide 30 minutes of paid break time for employees to express breast milk for their nursing child for up to three years following the child’s birth.

The obligations are prescribed by an amendment to the State’s breastmilk expression law, New York Labor Law § 206-C (the “Law”), which was enacted as part of a package of legislation accompanying the New York State Budget for Fiscal Year 2024-2025, signed into law on April 20, 2024 by New York Governor Kathy Hochul. Shortly before the Law took effect, the New York State Department of Labor (NYSDOL) published new materials under the headline “Breast Milk Expression in the Workplace,” including general information about the Law, a policy statement, information sheets for employees and employers, and frequently asked questions (FAQs).

On April 23, 2024, the U.S. Department of Labor (“DOL”) announced a new final rule through which it has significantly raised the bar for businesses to continue to classify their employees as exempt from overtime pursuant to the executive, administrative and professional (“EAP”) and “highly compensated employee” exemptions. Specifically, the DOL announced substantial increases to the salary threshold requirements for these exemptions, which will take effect on a staggered basis on July 1, 2024, and again on January 1, 2025.  

The New Salary Thresholds

The salary ...

In a recent decision affirming summary judgment in favor of defendant Human Resources Agency of New Britain, Inc. (the “Agency”), the Connecticut Appellate Court (decision.pdf) provided employers with useful guidance about managing disabled employees who are also qualified medical marijuana users, and appropriately requiring reasonable suspicion drug testing.

Background

In early 2018, the Agency hired Alyssa Bartolotta (“Bartolotta”) as a teaching assistant in its early childhood division.  As part of her onboarding, Bartolotta acknowledged receipt of an ...

Employers grappling with the many questions related to bringing employees back into the workplace safely in the midst of the COVID-19 pandemic should pay close attention to the potential wage-and-hour risks attendant to doing so—including whether to pay employees for time spent waiting in line for a temperature check, verifying vaccination status, or completing other health screening inquiries.

Given the growing trend of COVID-19 lawsuits, ignoring these risks could leave employers vulnerable to costly class and collective action litigation.

What the Law Requires

Under ...

In a decision that seems like to be reviewed by the California Supreme Court or rejected by other California Courts of Appeal, one of California’s appellate courts has issued a perplexing decision holding that even employees whose claims are time-barred can file representative actions under California’s Private Attorneys General Act (“PAGA”).

In Gina Johnson v. Maxim Healthcare Services, Inc., the Fourth Appellate District held that the plaintiff could pursue PAGA claims on behalf of other employees even though her own claims were barred by the statute of limitations.

By Jeffrey Ruzal

President Obama has spent much of his second term zealously pursuing an increase to the current $7.25 federal minimum hourly wage. While it is not clear whether a federal wage hike is in the offing, many states have recently taken measures to increase their own minimum wage rates. Effective January 1, 2014, Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont and Washington have all increased their minimum wage rates. There are also five additional states, California, Delaware, Michigan ...

By Adam Abrahms

Outside of California, employers frequently enter into agreements with non-exempt salaried employees that provide for a set weekly salary that includes overtime for a specific number of hours and is based on a defined regular rate of pay.  For example, an employer may agree to pay an employee as salary of $950 a week for 45 hours of work resulting in the employee being paid $20/hour for the first 40 hours and time and half ($30) for the overtime hours.  These agreements typically provide that if an employee works more than the established hours, the employee would be paid ...

By Michael Kun and Betsy Johnson

In a much-anticipated decision, the California Supreme Court has expanded the scope of California’s complex wage-hour laws to non-resident employees who perform work in California.  While the decision leaves more than a few questions unanswered, it will require a great many employers to review their overtime and other payroll practices.  Perhaps just as importantly, it will likely open the door to lawsuits, including class actions, regarding  prior overtime and payroll practices.

The case, Sullivan v. Oracle, has had a tortured history.  In the ...