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Paychex Identifies Top 5 Regulatory Issues for Employers to Watch in 2024

By: via 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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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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