Roundup: Hawaii Pay Transparency, 401K Catch-up Contributions, 401K Withdrawals, AI in Employment Decisions, and Minnesota’s New Employment Laws
Welcome to Salary.com's Compensation and Pay Equity Law Review.
Our editor, employment lawyer Heather Bussing, is tracking legislation, cases, and analysis to give you the latest critical HR topics.
This week we're covering:
- Hawaii's new pay discrimination and pay transparency laws
- New rules on tax and 401(k) catch-up contributions
- Expanded penalty-free early withdrawals from 401(k)
- EEOC guidance on AI in employment decisions
- Minnesota just passed a bunch of new employment laws
Broadening Pay Discrimination Protections: Hawaii's Next
Paying someone less because of a protected factor is discrimination. It's already illegal everywhere there are employment discrimination laws. So, why include it in a pay transparency law?
Here’s a look at Hawaii's new pay discrimination and transparency law.
Rules on Catch-up Retirement Contributions Will Change for Higher Earners
For lawmakers, the great thing about payroll taxes is that they are much easier to collect from employers than from individual taxpayers. So, for higher earners, they are going to start collecting the taxes upfront for catch-up contributions and eliminate the option to make pre-tax contributions.
Read more about the new rules on tax and 401(k) catch-up contributions.
New Rules on Retirement Plans Expand Penalty-Free Withdrawals
It's all a bit of a gamble on when you are going to need it, what your income will look like then, and what your tax rate will be when you withdraw it. But it's getting a little easier to withdraw retirement contributions early.
Learn more about expanded penalty-free early withdrawals from 401(k).
Using AI in Employment Decisions Gets You More Information – And That May Be Biased Too
You cannot outsource responsibility or liability for employment discrimination. Artificial intelligence (AI) can do amazing things. But you cannot rely on AI predictions and recommendations as being more objective or "right." These tools offer opinions, not facts. And they are always missing context, care, and compassion.
Minnesota Increases Worker Protections for Sick and Parental Leave
The Minnesota Legislature has been busy addressing employment issues. New protections for sick and parental leave and for pregnant and nursing workers. And a new fund to help employers provide disability accommodations is coming too.
