Paychex Identifies Top 5 Regulatory Issues for Employers to Watch in 2024
December 06 2023 - 10:00AM
Business Wire
AI, privacy, and wage and hour regulations are
critical topics for employers heading into the new year
Paychex, Inc., a leading provider of integrated human capital
management software solutions for human resources, employee
benefits, insurance services, and payroll, today released the top
five regulatory and compliance-related topics employers should be
monitoring heading into 2024. The annual Paychex list is intended
to keep business leaders up to date on the regulatory changes that
are most likely to impact them in the coming year and why.
“We consistently hear from our customers that tracking and
complying with changing regulations is one of their top pain
points,” said Frank Fiorille, Paychex vice president of risk,
compliance, and data analytics. “Some items on this year's watch
list, such as AI, will introduce both opportunities and
complexities for business leaders to manage. Others, like wage and
hour regulations or OSHA standards, will require employers to
double-down on requirements.”
The in-house compliance team at Paychex continually monitors
laws and regulations at federal, state, and local levels that
inform educational content available to customers and updates built
into Paychex Flex®, the company’s cloud-based SaaS solution.
Paychex has identified the following topics that employers should
pay close attention to in 2024:
- Artificial intelligence (AI) regulations: The Biden
Administration’s Executive Order on AI established standards for
developing and utilizing this emerging technology. Now, Congress
and state-level officials have indicated an interest in
establishing guardrails for the responsible use of AI in the coming
year.
- Data privacy and cybersecurity: Five state-level
consumer data privacy laws were enacted in 2023, adding California,
Colorado, Connecticut, Utah, and Virginia to the list of states
with unique data-related legislature on the books. The list will
continue to expand in 2024, with at least five more states –
Florida, Montana, Oregon, Texas, and Washington – passing privacy
laws that will take effect in the coming year.
- Wage and hour laws: More than twenty new minimum wage
increases will take effect on January 1, 2024, which may affect
employers operating in those states or in multiple regions. Fair
scheduling ordinances recently took effect in certain
jurisdictions, as have laws eliminating sub-minimum wage rates and
tip credits. Additionally, the U.S. Department of Labor (DOL) is
poised to announce its final overtime rule.
- Workplace safety/OSHA: Workplace safety standards will
be updated in 2024 as a revised rule requiring designated
high-hazard industries with 100 or more employees to submit reports
on injuries and illnesses electronically. Meanwhile, regulations
regarding extreme heat have also taken effect in some states, with
OSHA signaling its intention to explore a federal response to
increasingly severe weather.
- Retirement: With further SECURE 2.0 provisions taking
effect in 2024, retirement legislation will continue to be a focus
in the new year. Clarifying guidance is expected for several
provisions, including student loan matching contributions. At the
state level, Maine, New York, and New Mexico are all expected to
launch state-facilitated workplace retirement programs in the
coming year.
Other areas of regulatory interest for business leaders include
family and medical leave regulations and recently updated
electronic work verification systems. For more information, read
Top Regulatory Issues of 2024: Businesses Should Know and Prepare
WORX article.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company
delivering a full suite of technology and advisory services in
human resources, employee benefit solutions, insurance, and
payroll. The company serves approximately 740,000 customers in the
U.S. and Europe and pays one out of every 12 American private
sector employees. The more than 16,000 people at Paychex are
committed to helping businesses succeed and building thriving
communities where they work and live. To learn more, visit
paychex.com.
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Chelsea Wernick Public Relations Program Manager II +1 (585)
216-2974 cwernick@paychex.com @Paychex
Colleen Bennis Matter Communications Account Director +1 (585)
666-9510 cbennis@matternow.com
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