After SECURE 2.0, State lawmakers are considering a range of bills that could affect the benefits field
“Clear employment law trends for 2023 have emerged. Some of the more significant trends reflect the country’s social and political atmosphere,” the authors of the study wrote.
As many in the benefits field adapt to the federal SECURE 2.0 Act, state legislatures have also been busy. This spring will see a number of proposals debated and some passed, which employers and brokers will have to consider as the regulatory landscape continues to evolve.
A new analysis from Littler Mendelson provides an overview of this state legislation, noting that some of the top issues have been reproductive health, the use of artificial intelligence in personnel decisions, pay transparency, family status and family caregiving discrimination, and vaccination mandates in the workplace.
“Clear employment law trends for 2023 have emerged. Some of the more significant trends reflect the country’s social and political atmosphere,” the authors wrote. “The COVID-19 pandemic continues to prompt legislation addressing the challenges of the return-to-work environment and employees’ desire to balance work and home life.”
Dobbs still having a big impact
The recent decision by the Supreme Court to overturn Roe v. Wade has led a number of state legislatures to address reproductive rights and insurance coverage in that area. The Littler analysis estimated that there are more than 150 bills pending in state legislatures related to the availability of reproductive health rights and services. “Specific topics covered by such legislation range from allowable health care coverage, discrimination protections based on reproductive health choices, civil procedure shield laws, and the availability of gender-affirming health care,” the authors wrote.
The article outlined how some states are considering bills that would either require or prohibit abortion coverage by employers. State lawmakers are also considering “shield” laws that would protect state residents from laws in other states concerning reproduction or gender-affirming care.
Adding to the complexity is the fact that state voters may be in disagreement with lawmakers in some states. Politico notes in an article on reproductive-rights legislation that activists are organizing ballot initiatives to protect abortion rights by constitutional amendments in some states, while at the same time those state legislatures are controlled by lawmakers who favor limiting or banning abortion outright.
Similar upheaval is likely in benefits related to gender-affirming care — since the issue has become a political football of sorts. The Littler article notes that state legislatures across the country have proposed more than 300 anti-LGBTQ laws in recent years, while some are considering bills to protect against discrimination for LGBTQ workers. Employers may have to navigate a minefield as Americans continue to disagree vigorously on these issues.
Pay transparency and AI in personnel decisions
Other slightly less political initiatives are being considered as well. The Littler article outlines new interest in pay and compensation transparency laws, which usually include requiring employers to disclose pay information for any job posting or advertising for the position. Notably, a change in New York state law suggests that employers with headquarters outside a state may still have to comply with new laws. The New York law says that employers must: “Disclose compensation or range of compensation for a job, promotion, or transfer opportunity that will physically be performed in New York, including for any employee physically located outside the state who reports to someone in New York.”
Laws are also being considered for employers who use artificial intelligence (AI) tools in systems that have an impact on hiring and promotion. “Some legislatures, concerned that these tools could be applied in a discriminatory fashion, have introduced bills that would make it unlawful to use a tool in a manner that is intentionally discriminatory or that is facially neutral but nonetheless could result in discriminatory impact,” the Littler article says. An article on the FrankCrum site notes that in New York City, “Employers that utilize AI decision-making tools in their hiring practices will have to provide notice to applicants of the technology and conduct independent audits to ensure that these tools do not have a discriminatory impact.”
Other issues that state lawmakers across the country are considering legislation on includes:
- Familial status – several states are considering legislation that would offer employment protections to workers who have family or caregiving responsibilities.
- Marijuana use — more states are getting on the marijuana legalization bandwagon, the Littler article notes, although one state, Oklahoma, recently rejected a ballot measure that would have permitted marijuana use.
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- Vaccinations – several states are considering legislation that would prohibit an employer from requiring employees to get a vaccination or disclose information about vaccination status.
- Paid family and medical leave — several states now have mandatory paid family leave laws, and industry observers expect other states to consider making the benefit mandatory.