Employment laws and regulations are constantly changing, and it’s important that companies keep a pulse on the many updates, amendments, and new policies going into effect. In this blog, we’re sharing some of the state and federal employment law issues and updates we’re watching this year. 

Disclosing Pay in Job Postings 

To increase pay transparency and pay equity, some states have adopted and are considering new policies that require employers to disclose pay ranges in job postings. In a recent Broadleaf LinkedIn poll, 67 percent of respondents said they were monitoring employment law updates around disclosing pay in job postings  

As of September 17, 2023, New York State employers with four or more employees must include a salary or salary range in their job postings for all jobs to be performed, at least in part, in the state of New York. However, this law does not apply to jobs posted by temporary help firms on behalf of other employers. 

In Washington, D.C., a new law requiring employers to disclose salary ranges for advertised positions will go into effect on June 30, 2024. 

Employers in Colorado, California, and Washington are already required to disclose pay ranges to prospective employees. 

Cannabis Testing 

As of January 1, 2024, California and Washington have new laws that restrict pre-employment cannabis testing. Recreational and medical use of marijuana is legal in both states. 

The Washington law prevents most employers from denying someone a job based on a drug screening that turns up traces of cannabis. The law excludes law enforcement agencies, fire departments, 911 dispatch centers, airlines, and any other “safety-sensitive position for which impairment while working presents a substantial risk of death.” Federal employees who work in Washington State are also excluded and can still be disqualified from jobs based on pre-employment screenings since cannabis remains illegal under federal law.  

Individuals can still be tested for cannabis use while they are employed in the event of a workplace accident or if an employer suspects on-the-job impairment. 

Similarly, the California law prohibits employers from discriminating against applicants or employees for (1) the use of marijuana “off the job and away from the workplace” and (2) for an employer-required drug screening test that finds the person to have non-psychoactive cannabis metabolites in their system. 

Applicants and employees can still be disqualified, disciplined, or terminated based on test results that show present impairment and/or the presence of the psychoactive chemical compounds of marijuana, according to the California Labor & Employment Law Blog. 

Employees in the construction and building industries are excluded from the law, as well as those hired for positions that require federal background and clearance checks. 

Notifying Employees of New Job Opportunities 

Colorado’s pay transparency law has been amended, effective January 1, 2024, to require employers to share more information with current employers about new job opportunities as they become available. It also extends the period for which employees can obtain back pay for wage disparity violations. 

Employers in Colorado were already required to notify workers of promotion opportunities but now must “announce, post, or otherwise make known” any “job opportunity” that arises. Under the updated law, employers are also required to notify employees about new hires they’ll be working with regularly within 30 days of filling the position. 

On the Horizon: Bans on Non-Competes 

The Federal Trade Commission (FTC) is expected to finalize its ban on non-complete clauses this April. The proposal, which was released last year, would ban non-compete agreements that restrict mobility among employers. According to the FTC, non-competes suppress wages, stifle innovation, and make it harder for entrepreneurs to start new business—and eliminating them would increase U.S. workers’ earnings by $250 billion to $296 billion annually. 

Experts say that unless the rule is significantly scaled back, it will likely face litigation. 

The Broadleaf team will continue to monitor the laws and regulations that impact employers. To stay up to date on news, trends, and updates impacting employers, subscribe to our monthly newsletter.