Back to Blog

Navigate the Latest Payroll Compliance Changes with Greenshades

Lauren DeBisschop
Mar 29, 2024
10 min

Navigating the latest compliance updates in 2024 is crucial for businesses of all sizes. From updated wage theft prevention notices in California to new pay statement requirements in Minnesota, staying ahead of these developments is key to ensuring your business remains compliant and competitive.

Join us as we explain the specifics of these updates and how Greenshades can help simplify your compliance management.

Table of Contents:

California Updates to Wage Theft Prevention Notices

California has long required employers to provide most nonexempt workers with a Wage Theft Prevention Notice. With recent legislative changes, there's an expanded set of topics this notice must cover. It's crucial for employers to update their templates to stay compliant with California law.

What’s the purpose of the Wage Theft Notice?

The Wage Theft Notice serves as a formal written document that employers give to employees, usually when they're hired, detailing their rights under labor laws and specifics about their job. Its primary aim is to prevent wage theft, covering issues like non-payment or underpayment of wages, failure to pay overtime, and violations of labor standards.

What changes have been made?

As of January 1, 2024, California's ramped up its Wage Theft Prevention Act (WTPA) Notice requirements, requiring additional information to further protect labor rights. Key updates include:

  • Emergency or Disaster Declarations: Employers must now include information about any federal or state emergency or disaster declarations applicable to the county or counties where the employee is to be employed. They must have been issued within 30 days before the employee's first day of employment and may affect the employee's health and safety during their employment.
  • Expanded Paid Sick Leave Entitlements: The updated notice includes essential information concerning the entitlements of employees, with a focus on paid sick leave adjustments.

Minnesota Steps Up Pay Statement Transparency

Starting January 1, 2024, Minnesota employers are mandated to include additional information on employee pay statements, aimed at boosting transparency and ensuring employees are well-informed about their earnings and deductions.

What changes must be made?

  • Employers must list the basis of pay (e.g., hourly, salary).
  • The number of hours worked needs to be included for all employees, not just those paid hourly.
  • All types of paid time off (PTO) accrued and used during the pay period must be detailed.
  • Deductions made from pay must be itemized and explained.

Paying On-Demand: A State-by-State Debate

Several states are currently reevaluating their stance on pay-on-demand services. This model allows employees to access wages before the traditional payday, offering financial flexibility. While this can be beneficial for workers needing immediate funds, it also raises concerns about financial management and potential dependency on such services.  

States are debating whether earned pay advances are loans, leading to a variety of state laws. Nevada and Missouri are cracking down on fees, while others like Connecticut and California might call them loans, bringing hefty regulatory implications. States are still figuring out the best approach to keep things fair for workers without stifling the perks of immediate wage access.

As this is an evolving issue, further developments are expected as states work towards balanced legislation that safeguards both employee interests and the integrity of pay-on-demand services.

Having the right Earned Wage Access (EWA) partner is key to providing this benefit to your employees. Greenshades’ partners with EWA providers that ensure you stay in compliance. Learn more here.

Alabama Overtime is Now Non-Taxable

In 2024, the state of Alabama enacted a new tax policy that exempts overtime wages from state income tax for full-time, hourly employees. This legislative change was designed to provide financial relief to workers who often extend their regular working hours while fostering fair compensation practices and enhancing the economic well-being of its workforce.

Greenshades: Handle Compliance with Less Hassle

Effortlessly navigate the complexities of compliance with Greenshades Payroll, making your compliance management straightforward and hassle-free.

  • Real-Time Compliance: With automatic compliance updates within the system, stay on top of changes to all federal, state, and local regulations.
  • Seamless Integration: Eliminate manual data entry through effortless integration with various ERPs, improving operational efficiency.
  • Flexible Solutions: Reduce the need for manual adjustments and IT involvement by configuring our solution to your unique business needs.

Contact us today to take control of compliance with ease.

Our latest articles, opinions, and more
Get the latest updates from our company by subscribing to our newsletter. Stay up-to-date with our content, receive news about our products, and gain industry insights from our experts. Don't miss out on this valuable resource - sign up today!
By subscribing to our email updates, you agree with our Privacy Policy.
See the difference for yourself.
Get a demo