Quick Guide: HR Changes Affecting Businesses in 2024

For small business owners and managers, navigating human resources tasks can be daunting. However, it’s crucial to evaluate and adapt policies to comply with the new laws and requirements in effect this year. To help you get started, we’ve compiled this concise guide for 2024.

The largest labor law change to follow this year is the ban on non-compete agreements issued by the Federal Trade Commission. Set to take effect on September 4, the FTC rule would bar all U.S. employers from entering noncompete agreements with their workers. What is a “worker” according to the rule? Are there challenges to the ban? We covered this topic in depth in “What Does the Noncompetes Ban Mean for Small Businesses?”

Yet, a host of new changes have come in 2024 in Washington state and in federal employment laws.

New HR Issues in 2024

Washington’s Changes to Pre-Employment Drug Testing

Washington state now prohibits employers from making a hiring decision in the pre-employment process related to the applicant’s off-duty use of cannabis, according to law firm Gordon Rees Scully Mansukhani. The ban applies to all Washington employers, except state and local government employees.

“An employer may still conduct pre-employment drug testing for other drugs through methods that do not screen for non-psychoactive cannabis metabolites,” the firm explained in an employment law update. “An employer may also continue to enforce a drug and alcohol-free workplace and comply with other rights or obligations required by federal law or regulation. Employers may also continue to conduct testing post-accident, and when there is a reasonable suspicion of being under the influence while on duty.”

This law does not preempt requirements placed on employers receiving federal funding or as required by a federal contract.

Washington and Seattle Minimum Wage Increases

The Washington state minimum wage increased by $.54 per hour to $16.28 effective on January 1, 2024. The state minimum wage applies to workers 16 years and older. Employers can pay 85% of the minimum wage to workers ages 14-15, which is $13.84 in 2024, according to Gordon Rees Scully Mansukhani.

Seattle’s minimum wage for 2024 is $19.97 per hour for employers with 501 or more employees. Employers with 500 or fewer employees must also pay $19.97 per hour if:

• They do not contribute at least $2.72 per hour toward the employee’s medical benefits, and/or
• Their employees do not earn at least $2.72 per hour in tips.

Employers with 500 or fewer employees that meet the above compensation requirements must pay at least $17.25 per hour.

Employee Handbook Updates

The National Labor Relations Board (NLRB) issued a decision adopting a new legal standard requiring employer work rules “not dissuade employees from discussing the terms and conditions of their employment, including wages or other employer policies,” according to the law firm OGC.

According to its website, OGC encouraged employers to review and update all policies published in their handbook regarding social media use, disruptive or inappropriate conduct (both on and off duty), and civility and courtesy policies. Employers must now be more careful about limiting employees’ ability to discuss the terms and conditions of their employment.

Owners and managers cannot assume a handbook policy about employees’ ability to discuss wages or compensation is legal. The NLRB will review challenged policies “on a case-by-case basis,” OGC further explained on its website. “Broad disclaimers will [not] insulate their policies.”