Employers, particularly those in the agricultural, hospitality, manufacturing, food processing, and construction industries, should be prepared for stepped up immigration enforcement by the new Trump administration. Key Trump officials have indicated that a dramatic increase in worksite enforcement on immigration, including surprise raids of companies employing unauthorized immigrant workers is in the offing.
President-Elect Trump’s first term in office provides some insight into what to expect in the new term. During the 2016-2020 period:
ICE enforcement of I-9 compliance was at an all-time high;
ICE I-9 audits increased to 5,981 in FY2018 and 6,450 in FY2019;
ICE’s goal in FY2020 was 12,000 to 15,000 audits, but this target was curtailed by the pandemic;
By comparison, the Bush and Obama administrations averaged 3,000 to 3,500 audits a year;
ICE raids of employers resumed in 2018 after 10 years of no ICE raids; during the 1st raid conducted in April 2018 in Tennessee, ICE detained 100+ employees. The last reported raid was in July 2020.
With this in mind, it may be prudent for employers to prepare in advance by:
Conducting an internal I-9 audit now. Employers may correct any substantive errors found and avoid and/or mitigate the penalties for those errors prior to being the target of a raid or audit;
Ensuring staff are properly trained and supervised on the preparation and maintenance of Form I-9 to reduce the risk of making common I-9 mistakes;
Developing internal proper procedures and perform regular self-audits;
Considering whether enrolling in E-Verify, administered by SSA and USCIS, may be advantageous. E-Verify streamlines employment eligibility verification and provides a near immediate determination of whether an applicant is authorized to work in the United States;
Ensuring all employees hired have a complete I-9 Form; and
Avoiding paying employees in cash.
ACA Reporting Requirements Less Burdensome for 2025 and Beyond Under New Laws
Two new laws aimed at reducing employer Affordable Care Act reporting burdens will be effective for employers reporting in 2025 (for calendar year 2024). They are the Paperwork Reduction Act (PBRA) and the Employer Reporting Improvement Act (ERIA).
Paperwork Burden Reduction Act
Effective for the 2024 reporting year, employers are no longer required to distribute Form 1095-C to all full-time employees (and plan sponsors of self-insured plans do not have to distribute Form 1095-B to individuals). Instead, these forms only need to be provided upon request. In order for employers to take advantage of this new rule, employers must:
Provide a “clear, conspicuous, and accessible notice” to employees informing them that they can request a copy of the Form 1095-B or 1095-C. (The PBRA states that the IRS may publish regulations relating to the time and manner of this notice. At this time, there is no model notice.)
Upon receipt of an employee request, distribute the form within 30 days or, if later, by January 31st. Electronic distribution is permitted if the employee consents (which is valid until withdrawn in writing).
Employers must still prepare and file Forms 1095-C and 1095-B with the IRS each year (generally due to be filed with the Form 1094-C/1094-B transmittal form by March 31).
The Employer Reporting Improvement Act
Under the Employer Reporting Improvement Act, effective for the 2024 reporting year:
Employers and plan sponsors issuing Form 1095-C for self-insured plan coverage of spouses and dependents can use the individual’s full name and date of birth if their social security number (SSN) or other taxpayer identification number (TIN) cannot be obtained. This change eases the burden on employers who have experienced problems obtaining the necessary TIN from nonresident aliens with no SSN or TIN. The new rule avoids the need for employers to establish reasonable cause before they are able to use a date of birth.
Employers now have 90 days (rather than the previous 30-day deadline) to respond to an initial letter from the IRS regarding a proposed penalty assessment for an ACA coverage failure under Internal Revenue Code Section 4980H (known as an IRS Letter 226-J). The new 90-day response deadline will apply to all Letters 226-J sent to employers on or after January 1, 2025.
There is now a six-year statute of limitations for penalty assessments related to Section 4980H coverage failures. Previously, the IRS took the position that there was no statute of limitations.
Applicable Large Employers (ALEs) must still file Forms 1094-C and 1095-C with the IRS by March 31, 2025, if filing electronically (February 28, 2025, if filing by paper).
Connecticut General Assembly Kicks Off New Session with Several Proposed Workplace Bills
The 2025 session of the Connecticut General Assembly convened on Wednesday, January 8th. It will adjourn on June 4, 2025. The Labor and Public Employees Committee is one of the few committees to already have introduced proposals for bills this session. Among them:
Proposed Senate Bill 222: An Act Concerning the Advance Notice of the Need to Use Paid Sick Leave
This bill would amend the new Connecticut Sick Day Law to again require employees to provide advanced notice of the need for Sick Leave to their employer, if such leave is foreseeable.
The new Sick Day Law, which became effective on January 1, 2025 for employers with 25 or more employees, prohibits employers from requiring advanced notice of the need for leave. This was a change from the previous Sick Day Law, which allowed employers to require up to 7 days advanced notice of the need for Sick Leave when the need for leave was foreseeable.
Many employers in attendance at our Sick Day Law seminars indicated the notice prohibition would create operational issues—particularly in industries where staffing is critical—such as home health care and assisted living. While Proposed SB 222 does not provide any further specifics on how much advanced notice can be required, its introduction suggests lawmakers have heard employers’ concerns.
Proposed Senate Bill 8: An Act Concerning Protections for Workers and Enhancement of Workers Rights
This proposal would allow union workers to collect unemployment benefits while on strike. Typically, the matter of pay for striking workers is between the union and its members. Unions have tried---and failed—for years to get legislation passed that would instead have either taxpayers or businesses foot the bill. The General Assembly came close last year by passing a measure that would have used taxpayer money to establish a striking workers assistance fund. The bill was ultimately vetoed by Governor Lamont. This year, Senate Bill 8 proposes paying striking workers through unemployment benefits funded by taxes paid by employers.
The bill also proposes limiting the extent to which certain warehouse distribution centers can require employees to meet “unreasonable production quotas” and proposes to “protect worker’s rights.” Because this is a proposal for a bill, rather than a full bill, there aren’t further details on what this would entail.
Proposed Bill 225: An Act Lowering the Contribution Cap of the Paid Family and Medical Leave Insurance Program
This bill would reduce the FMLA deduction from employees’ checks from the current 0.5% to 0.4% to pay for the Paid Family and Medical Leave Insurance Program. Under the 2019 Connecticut Paid Family and Medical Leave law, employees are required to contribute 0.5% of their pay towards the Paid Family and Medical leave program up to the Social Security contribution cap. The Paid Leave Authority can adjust the contribution rate, but not above 0.5%.
Proposed Senate Bill 225 would reduce the maximum contribution cap from 0.5% to 0.4%. The proposal does not indicate when this would become effective, if passed. The current contribution rate for 2025 is 0.5% of wages up to the Social Security wage contribution cap of $176,100. Accordingly, an employee’s maximum contribution to the state plan this year will be $880.50 (up from $843 in 2024).
Proposed Bill 228: An Act Expanding Workers’ Compensation Coverage for Post Traumatic Stress Injuries
This proposed bill would amend the workers’ compensation statutes to allow certain first responders to collect workers compensation for Post-Traumatic Stress injuries resulting from witnessing an injury that does not result in the death of a person or the loss of a vital body part of body function.
We’ll keep you updated on these and all legislative developments as this session progresses through Client Advisories.
OSHA Issues New PPE Fit Requirements for Construction Industry
Under a new rule effective December 12, 2024, employers in the construction industry must ensure all Personal Protective Equipment (PPE) properly fits the employee. While this revision does not introduce a new requirement, it clarifies the existing obligation and brings the construction standard in line with OSHA’s standards for general industry and shipyards, both of which already specify that PPE must fit properly.
Specifically, the rule provides that construction employers must ensure PPE:
Is of safe design and construction for the work to be performed; and
Is selected to ensure that it properly fits each affected employee.
This includes universal-fit items, like adjustable helmets and gloves, as well as non-universal-fit items that may need to be tailored for individual workers.
Employment Law Q&A
Q: We want our hourly employees to show up for work on Saturday mornings just in case we need them. No one works more than 3 hours on Saturday. We give them a flat bonus of bonus of $150.00, whether they work 10 minutes or three hours on a Saturday morning. One of the employees said that the $150.00 has to be included in their overtime calculation. Is that right?
A: Yes, unless your $150.00 payment is a “discretionary bonus,” although it doesn’t sound like it is. A discretionary bonus is one where the bonus is not in the form of a promise or policy causing the employee to expect such payment, the employer reserves the right to not pay the bonus, and the employer determines how much the bonus will be.
Nondiscretionary bonuses must be included in the regular rate of pay. The "regular rate" is an average derived by dividing total money earned by the employee in the pay week (including straight time for overtime) by the number of hours in which that pay was earned.
Unfortunately, if you are paying $150.00 for a short period of work, say ½ hour on Saturday morning, that drives up the average hourly rate for that week.
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