By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Left arrow
Back
An image of a woman talking on a cell phone in an office with plants.An image of a woman talking on a cell phone in an office with plants.
An image of a woman talking on a cell phone in an office with plants.

A Year In Review: Key Accommodations Trends and Developments in the Legal Landscape

TL;DR In 2024, HR compliance saw major updates in pregnancy accommodations, pay transparency, and workplace safety, requiring HR leaders to update policies and procedures. Staying ahead of compliance issues through audits, employee training, and regular reviews of federal, state, and global laws is essential to avoid legal risks and promote an inclusive work environment.

Team Disclo
September 25, 2024

Introduction

As HR professionals, staying current with regulatory developments is essential to ensure compliance and mitigate risk. Over the past year, significant changes in employment laws and regulations have impacted how HR departments manage everything from employee benefits to workplace safety. In this comprehensive review, we will explore the key trends, changes, and best practices that HR leaders—particularly CHROs, VPs of HR, and HR Directors—must be aware of to navigate the complex landscape of HR compliance.

Significant HR Compliance Developments in 2024

Federal Updates in HR Compliance

The past year saw several critical updates in employment laws and regulations that every HR leader must consider. Two focus areas have been the Pregnant Workers Fairness Act (PWFA) and updates to the Americans with Disabilities Act (ADA).

Pregnant Workers Fairness Act (PWFA)

The PWFA, enacted in 2023, requires employers to provide reasonable accommodations for employees experiencing pregnancy-related medical conditions. This regulation impacts HR compliance, particularly for HR professionals handling accommodations and equal employment opportunities. HR teams must update their employee handbook and onboarding processes to reflect these new requirements.

ADA Accommodations and Disability Compliance

Updates to the ADA regulations have expanded employer responsibilities for accommodating workers with disabilities, including those with Long COVID and mental health conditions. HR professionals need to ensure their HR policies align with these regulations, avoiding non-compliance penalties that could result from improperly handling accommodation requests.

State and Local Law Changes

California, known for its strict labor regulations, introduced new laws around equal pay, requiring HR departments to conduct pay audits to identify and address wage disparities. Other states followed suit, implementing local pay transparency laws that demand compliance.

For example, minimum wage increases in states like California and New York have prompted HR leaders to reevaluate compensation structures, ensuring compliance with federal and local laws. Inconsistent overtime pay calculations for non-exempt employees can result in costly audits by the Department of Labor (DOL).

Key HR Compliance Issues and Trends

Workplace Safety and OSHA Compliance

Maintaining a safe work environment has become a critical focus for HR leaders. As workplace safety standards evolve, OSHA compliance remains a top priority. New regulations require HR departments to regularly review and update occupational safety measures, especially in industries with higher risks, such as healthcare and manufacturing. Compliance failures can lead to hefty fines and disrupt workplace operations.

In 2024, OSHA inspections increased, making it essential for HR leaders to ensure that workplace safety protocols are up to date. This includes reviewing training programs, conducting HR audits, and ensuring safety guidelines are outlined in the employee handbook.

FLSA and Wage-and-Hour Compliance

The Fair Labor Standards Act (FLSA) sets national standards for minimum wage, overtime pay, and child labor. In 2024, updates to the FLSA clarified the distinction between employees and independent contractors, making compliance even more critical for businesses relying on gig workers or freelancers. Misclassifying workers as contractors instead of employees can result in significant non-compliance penalties, impacting small businesses especially hard.

HR leaders must ensure that FLSA guidelines are followed meticulously, particularly around overtime pay calculations and time tracking for non-exempt employees. Reviewing company policies to reflect these changes and educating HR teams through webinars or internal training can help avoid compliance pitfalls.

FMLA and Leave Policies

The Family and Medical Leave Act (FMLA) continues to be an area where HR compliance issues frequently arise. Many companies struggle to accurately track leave and ensure that employees who qualify for FMLA are provided with appropriate time off. HR leaders should review their HR compliance checklist to verify that leave policies meet both federal laws and state mandates for sick leave, time off, and other protected leave categories.

EU Pay Transparency DirectiveGlobal Focus on Disability Protections and Awareness

Globally, the EU Pay Transparency Directive has introduced new challenges for multinational organizations. The directive mandates that employers provide pay transparency to eliminate wage gaps across gender, nationality, and disability status. This shift inclusion of disability status shines a spotlight on the global focus and ramps up the requirements for companies to provide adequate access to information for candidates and workers. 

Learn more about the EU Pay Transparency Directive

Best Practices to Maintain HR Compliance

Strengthening the ADA Accommodations Process

Given the increasing focus on disability accommodations, HR leaders should strengthen their ADA processes by:

Regular audits of the accommodation process help avoid legal complications and ensure that HR teams follow best practices in managing accommodation requests.

Ensuring Equal Pay Compliance

Incorporating pay equity into regular business operations is essential, particularly as equal pay laws expand. By conducting regular HR audits to analyze compensation structures, HR departments can identify disparities early and implement corrective measures. This proactive approach can help avoid costly lawsuits or regulatory investigations.

Healthcare and Employee Benefits Compliance

Ensuring compliance with health insurance and employee benefits regulations has become increasingly complex. HR professionals should stay informed of changes to the Affordable Care Act (ACA) and other healthcare-related laws that impact employee benefits eligibility and coverage.

Conducting periodic reviews of health insurance offerings and benefits administration processes will help prevent compliance gaps and improve employee retention.

Developing Comprehensive HR Policies

To ensure compliance, HR leaders must develop and maintain comprehensive HR policies covering all employment aspects, from onboarding to offboarding. These policies should clearly define procedures related to:

  • Workplace safety (OSHA compliance)
  • Employee classification (FLSA and independent contractors)
  • Anti-harassment and anti-discrimination laws (such as protections for gender identity, national origin, and disability)

Ensuring that all policies are regularly updated to reflect changes in employment laws will help HR professionals avoid compliance issues.

Consequences of Non-Compliance and Legal Risks

Failing to comply with applicable laws can result in serious consequences, including fines, lawsuits, and damage to the company’s reputation. Government agencies like the DOL, EEOC, and OSHA are increasing their scrutiny of workplace practices, making it essential for HR departments to stay ahead of compliance risks.

Non-compliance can lead to:

  • Fines for violations of labor laws such as the FLSA or OSHA standards
  • Legal action for discrimination or harassment claims under anti-discrimination laws or the ADA
  • Loss of trust from employees and stakeholders, negatively impacting retention and overall workplace morale

Conclusion: Preparing for 2025 and Beyond

As 2024 comes to a close, HR leaders must look ahead to evolving HR compliance issues. Staying informed on regulatory updates and investing in the proper HR management tools is crucial for avoiding non-compliance. HR professionals can create a more compliant and inclusive work environment by prioritizing workplace safety, employee benefits, and anti-discrimination initiatives.

For HR teams needing further guidance, attending webinars, engaging with compliance providers, and consulting with legal experts will be critical in navigating this complex and ever-changing landscape.

Related Resources

About Disclo

Built by 2x disability-focused founders, the software is a workplace ADA and PWFA accommodations platform for companies focused on making workplaces inclusive for everyone. Disclo is a HIPAA-compliant platform that requests, tracks, and manages workplace accommodations—all in one place. 

Disclo makes handling accommodations seamless by combining automation, in-app medical e-verification, out-of-the-box analytics (so you can auto-track against EEOC and ADA standards), and the ability to connect to any HRIS and ATS with pre-built integrations.

Strengthen workplace inclusivity and future-proof ADA and PWFA processes while establishing a digital paper trail for your organization. Learn more at disclo.com/demo.

Introduction

As HR professionals, staying current with regulatory developments is essential to ensure compliance and mitigate risk. Over the past year, significant changes in employment laws and regulations have impacted how HR departments manage everything from employee benefits to workplace safety. 

In this comprehensive review, we will explore the key trends, changes, and best practices that HR leaders must be aware of to navigate the complex landscape of HR compliance in relation to workplace accommodations.

Significant HR Compliance Developments in 2024

As of 2024, the EEOC has seen a significant rise in disability-related lawsuits with an emphasis on disability accommodation issues, including claims related to failure to provide reasonable accommodations for employees with disabilities. This increased litigation is part of a broader effort by the EEOC to combat systemic discrimination, especially in industries like hospitality, healthcare, and retail. Taking a look back at 2023, there was more than a 50% increase in EEOC filings (from fiscal year 2022), and the EEOC secured $535 million in settlements for workers alleging discrimination, with a significant portion related to disability discrimination cases.

OFCCP Compliance and Accommodations Management

With the rise in accommodation requests and disability disclosures, maintaining compliance with Section 503 of the Rehabilitation Act of 1973 has become increasingly complex for employers.

An accommodations management platform can help support OFCCP compliance by:

  • Documenting Accommodation Requests: Ensuring proper documentation of reasonable accommodation requests helps create a clear compliance record, reinforcing adherence to non-discrimination obligations.
  • Standardizing Processes: A centralized system ensures consistency in handling accommodation requests, reducing the risk of process variations that could lead to costly compliance issues.
  • Achieving Recruitment and Retention Goals: Effectively managing accommodations enables companies to meet the OFCCP’s objectives of increasing representation of individuals with disabilities in the workforce.
  • Monitoring and Reporting: These platforms provide detailed data on requests, actions taken, and outcomes, streamlining OFCCP reporting requirements, and supporting audit processes.
  • Reducing Compliance Risks: A structured approach ensures legal obligations are met, minimizing the risk of non-compliance, penalties, and sanctions.

Learn how Disclo’s Accommodations Management Platform can support compliance needs at your organization — request a demo today.

Federal Updates in HR Compliance

The past year saw several critical updates in employment laws and regulations that every HR leader must consider. Two focus areas have been the Pregnant Workers Fairness Act (PWFA) and updates to the Americans with Disabilities Act (ADA).

Pregnant Workers Fairness Act (PWFA)

The PWFA, enacted in 2023, requires employers to provide reasonable accommodations for employees experiencing pregnancy-related medical conditions. 

The PWFA went into effect on June 27, 2023 and on April 15, 2024 the EEOC issued its final regulation to carry out the law. The final regulation went into effect on June 18, 2024. These updates included:  

  • Provision of Accommodations: Employers must offer reasonable accommodations for employees experiencing pregnancy, childbirth, or related medical conditions (e.g., postpartum recovery, lactation), unless doing so would cause significant difficulty or cost for the business.
  • Prohibiting Discrimination: The law forbids discrimination against employees or job candidates due to pregnancy or childbirth-related conditions. This includes unfair hiring practices or denying necessary workplace adjustments.
  • Undue Hardship Clause: If providing accommodations creates excessive hardship on the business—considering factors like company size and resources—employers may be exempt from compliance.
  • Interactive Communication: Employers are required to collaborate with employees in a timely and effective dialogue to identify reasonable accommodations tailored to their needs.
  • Company Size: The law applies to businesses with 15 or more employees, extending protection to both part-time and full-time staff.
  • Workplace Flexibility: The PWFA ensures that all employees, whether they work remotely, in-office, or under a hybrid model, are eligible for the same protections and accommodations.
  • Protection from Retaliation: Employers are prohibited from retaliating against employees for seeking accommodations or exercising their rights under the PWFA.
  • EEOC Oversight: The Equal Employment Opportunity Commission (EEOC) is responsible for enforcing the PWFA, ensuring compliance, and addressing any violations.

→ Key takeaway: Given the recency and the broad coverage of the law, this will only continue to increase the volume and complexity of accommodation requests and the burden on HR.

This regulation impacts HR compliance, particularly for HR professionals handling accommodations and equal employment opportunities. HR teams must update their employee handbook and onboarding processes to reflect these new requirements.

ADA Accommodations and Disability Compliance

Updates to the ADA regulations have expanded employer responsibilities for accommodating workers with disabilities, including those with Long COVID and mental health conditions. HR professionals need to ensure their company policies align with these regulations, avoiding non-compliance penalties that could result from improperly handling accommodation requests.

Want to conduct an internal accommodations assessment? Download this free template and start your internal audit today.

State and Local Law Changes

California, known for its strict labor regulations, introduced new laws around equal pay, requiring HR departments to conduct pay audits to identify and address wage disparities. Other states followed suit, implementing local pay transparency laws that demand compliance.

For example, minimum wage increases in states like California and New York have prompted HR leaders to reevaluate compensation structures, ensuring compliance with federal and local laws. Inconsistent overtime pay calculations for non-exempt employees can result in costly audits by the Department of Labor (DOL).

Starting in 2024, New York expanded its Paid Family Leave (PFL) coverage to include more familial relationships, such as siblings. This impacts how HR leaders approach leave management and benefits administration in the state of New York.

Key HR Compliance Issues and Trends

Workplace Safety and OSHA Compliance

Maintaining a safe work environment has become a critical focus for HR leaders. As workplace safety standards evolve, OSHA compliance remains a top priority. New regulations require HR departments to regularly review and update occupational safety measures, especially in industries with higher risks, such as healthcare and manufacturing. Compliance failures can lead to hefty fines and disrupt workplace operations.

In 2024, OSHA inspections increased, making it essential for HR leaders to ensure that workplace safety protocols are up to date. This includes reviewing training programs, conducting HR audits, and ensuring safety guidelines are outlined in the employee handbook.

FLSA and Wage-and-Hour Compliance

The Fair Labor Standards Act (FLSA) sets national standards for minimum wage, overtime pay, and child labor. In 2024, updates to the FLSA clarified the distinction between employees and independent contractors, making compliance even more critical for businesses relying on gig workers or freelancers. Misclassifying workers as contractors instead of employees can result in significant non-compliance penalties, impacting small businesses especially hard.

HR leaders must ensure that FLSA guidelines are followed meticulously, particularly around overtime pay calculations and time tracking for non-exempt employees. Reviewing company policies to reflect these changes and educating HR teams through webinars or internal training can help avoid compliance pitfalls.

Global Focus on Disability Protections and Awareness

Globally, the EU Pay Transparency Directive has introduced new challenges for multinational organizations. The directive mandates that employers provide pay transparency to eliminate wage gaps across gender, nationality, and disability status. This shift inclusion of disability status shines a spotlight on the global focus and ramps up the requirements for companies to provide adequate access to information for candidates and workers. 

In addition to the EU Pay Transparency Directive, in 2024, Canada expanded obligations under the Accessible Canada Act (ACA) for federally regulated employers, increasing requirements for accessibility in workplace accommodations and services.

→ Learn more about the EU Pay Transparency Directive and the Accessible Canada Act (ACA).

Curious to see how accommodations can support your employees?

Schedule a free demo today.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Best Practices to Maintain HR Compliance

Strengthening the ADA Accommodations Process

Given the increasing focus on disability accommodations, HR leaders should strengthen their ADA processes by:

Regular audits of the accommodation process help avoid legal complications and ensure that HR teams follow best practices in managing accommodation requests.

→ Download the Internal Accommodations Assessment Template to quickly kick-start your audit today.

Healthcare and Employee Benefits Compliance

Ensuring compliance with health insurance and employee benefits regulations has become increasingly complex. HR professionals should stay informed of changes to the Affordable Care Act (ACA) and other healthcare-related laws that impact employee benefits eligibility and coverage.

Conducting periodic reviews of health insurance offerings and benefits administration processes will help prevent compliance gaps and improve employee retention.

Developing Comprehensive HR Policies

To ensure legal compliance and cultivate a positive work environment, HR leaders must create and maintain thorough HR policies that encompass all aspects of the employee lifecycle—from onboarding to offboarding. Key areas to focus on include (non-exhaustive):

  • Workplace Safety: Implement policies that ensure compliance with OSHA regulations and promote a safe working environment.
  • Employee Classification: Clearly define procedures for classifying employees according to FLSA guidelines and manage independent contractors properly.
  • Anti-Harassment and Anti-Discrimination: Develop robust policies that address protections under Title VII, ADA, PWFA, and other anti-discrimination laws, including measures to prevent and respond to harassment and discrimination.
  • Reasonable Accommodations: Outline processes for providing accommodations under the ADA, PWFA, and other relevant laws. 
  • Leave Policies: Include clear procedures for managing various types of leave, such as FMLA, sick leave, and paid time off.
  • Remote and Hybrid Work: Establish guidelines for remote and hybrid work arrangements, including communication expectations and equipment use.
  • Data Privacy: Address how employee data will be protected, adhering to regulations like HIPAA, GDPR, or CCPA.

Regular updates to these policies are essential to reflect changes in employment laws and regulations, helping HR professionals mitigate compliance risks and uphold best practices.

Consequences of Non-Compliance and Legal Risks

Failing to comply with applicable laws can result in serious consequences, including fines, lawsuits, and damage to the company’s reputation. Government agencies like the DOL, EEOC, and OSHA are increasing their scrutiny of workplace practices, making it essential for HR departments to stay ahead of compliance risks.

Non-compliance can lead to:

  • Fines for violations: Penalties for non-compliance with standards set by laws like the FLSA and OSHA, and potential legal consequences for discrimination claims enforced by the EEOC.
  • Legal action: For discrimination or harassment claims under anti-discrimination laws or the ADA.
  • Loss of trust: From employees and stakeholders, negatively impacting retention and overall workplace morale

Conclusion: Preparing for 2025 and Beyond

As 2024 comes to a close, HR leaders must look ahead to evolving HR compliance issues. Staying informed on regulatory updates and investing in the proper HR management tools is crucial for avoiding non-compliance. HR professionals can create a more compliant and inclusive work environment by prioritizing workplace safety, employee benefits, and anti-discrimination initiatives.

For HR teams needing further guidance, attending webinars, engaging with compliance providers, and consulting with legal experts will be critical in navigating this complex and ever-changing landscape.

Related Resources

About Disclo

Built by 2x disability-focused founders, the software is a workplace ADA and PWFA accommodations platform for companies focused on making workplaces inclusive for everyone. Disclo is a HIPAA-compliant platform that requests, tracks, and manages workplace accommodations—all in one place. 

Disclo makes handling accommodations seamless by combining automation, in-app medical e-verification, out-of-the-box analytics (so you can auto-track against EEOC and ADA standards), and the ability to connect to any HRIS and ATS with pre-built integrations.

Strengthen workplace inclusivity and future-proof ADA and PWFA processes while establishing a digital paper trail for your organization. Learn more at disclo.com/demo.

Share this article
Related Articles

Collect, verify, and manage workplace accommodations all in one place.

Disclo helps you manage health disclosures and accommodation requests — while staying compliant with HIPAA and ADA regulations.

Let's Disclo!

Schedule a 30-minute demo with a member of our team.
We respect your data. By submitting this form, you agree that we may use ​this information in accordance with our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.