Legislative Updates

The Internal Revenue Service (IRS) announced that the affordability percentage will be 9.02% for 2025.  The affordability percentage is used to determine the threshold at which the cost of health insurance coverage is considered affordable under the Affordable Care Act (ACA).  Coverage will be considered affordable if an employee's self-only coverage does not exceed 9.02% of household income for 2025.  The 2024 affordability factor was 8.39%.  

The US Court of Appeals for the Fifth Circuit recently struck down the DOL's 2021 regulation which set strict limits on the amount of time tipped employees could spend performing work not related to generating tips.  The DOL issued a final rule in 2021 (often referred to the 80/20 rule) which limits the amount of time an employee can spend on work that does not generate tips to 20% of their hours in a workweek.  The ruling is considered a win for the restaurant and hospitality industry.  

On 8/20/24, a Federal Judge in Texas ruled in favor of barring the Federal Trade Commission's non-complete rule which was scheduled to go into effect on 9/4/24.  The ruling means that businesses do not need to comply with the FTC's rule which banned non-compete agreements.  Judge Ada E. Brown for the US District Court said indicated that the FTC lacks statutory authority in the matter.

USCIS recently updated the Form I-9 Form to extend the expiration date to 5/31/2027.  The edition of the Form I-9 is dated 8/1/23 which may also have an expiration date of either 7/31/26 or 5/31/27.  Employers are encouraged to update their forms to the version with the 5/31/27 expiration date.  However, either form may be used until the expiration date.  

On July 25th, the Employer Participation in Repayment Act (H.R. 9164/S. 4778) was introduced which would permanently allow employers to voluntarily provide up to $5,250 of tax-free student loan repayment educational assistance to employees under IRS Code Section 127.  The current benefits are set to expire on January 1, 2026.  

The US Department of Labor released a proposed rule earlier this month that will protect workers against heat related injuries if it is finalized.  The proposed rule would require employers to develop an injury and illness prevention plan to control heat hazards in workplaces affected by excessive heat.  Employers would need to evaluate heat risks and implement requirements for drinking water, rest breaks and of indoor heat.  Training would need to be provided by employers as part of the plan.  Employers would also need to have a plan in place to respond to worker experiencing heat-related symptoms.  The public is encouraged to submit comments on the rule in the Federal Register and anticipates a public hearing after the written comment period.

The Supreme Court issued a ruling today in a case with Starbucks that the National Labor Relations Board (NLRB) did not use the correct standard when they sought an injunction after Starbucks fired 7 workers who claimed they were fired in retaliation for union-organizing in Memphis.  The injunction allowed the fired workers to return to their jobs during an NLRB investigation.  The court ruled that the NLRB should have used a stricter four-factor test instead of the relaxed two-factor test when applying for an injunction which could make it more difficult to return employees to work during investigations.       

The IRS recently announced the annual limits for Health Savings Accounts and High-Deductible Health Plans (HDHP) for 2025 which are listed below.

Health Savings Accounts

• 2024 Employee Only: $4,150
• 2025 Employee Only: $4,300

• 2024 Family: $8,300
• 2025 Family: $8,550

High-Deductible Health Plans Minimum Deductible Amounts

• 2024 Employee Only: $1,600
• 2025 Employee Only: $1,650

• 2024 Family: $3,200
• 2025 Family: $3,300

High-Deductible Health Plans Annual Out-of-Pocket Expense Maximums

• 2024 Employee Only: $8,050
• 2025 Employee Only: $8,300

• 2024 Family: $16,100
• 2025 Family: $16,600

On April 29th, the US Equal Employment Opportunity Commission (EEOC) published final guidance on harassment in the workplace titled, "Enforcement Guidance on Harassment in the Workplace."  The last time the EEOC issued guidance on workplace harassment was in 1999.  The updated guidance addresses how harassment based on race, color, religion, sex, national origin, age disability or genetic information is defined under EEOC statutes.  It also includes over 70 examples of unlawful harassment and shows how employees may be subjected to harassment by coworkers, supervisors, customers and other third parties.  The EEOC structured the guidance into three parts: 1) Covered Bases and Causation 2) Discrimination with Respect to a Term, Condition or Privilege of Employment 3) Liability.  The EEOC also published several educational resources on their website.  

On April 23, 2024, the Federal Trade Commission issued a final rule which bans noncompete agreements.  Per the FTC's press release, the new rule will "protect the fundamental freedom of workers to change jobs, increase innovation, and foster new business formation."  Under the new rule, existing noncompete agreements will no longer be enforceable.  However, existing noncompetes for senior executives earning more than $151,164 per year and are "policy makers" are still enforceable.  Employers are no longer able to enter into noncompete agreements with senior executives moving forward.  Employers will need to provide notice to workers with an existing noncompete that the agreement will not be enforceable.

FTC's press release: FTC Announces Rule Banning Noncompetes | Federal Trade Commission