Compliance Corner

Under current law, Alabama exempts amounts paid to nonexempt employees as overtime compensation in accordance with the U.S. Fair Labor Standards Act (FLSA) from state income tax.  This tax exemption is in effect through June 30, 2025.   

Vermont has enacted legislation (S.135), which creates a state-sponsored retirement savings program. Covered employers that do not offer a retirement plan to employees must register or certify their exemption to the Vermont Saves program in a phased implementation beginning July 1, 2025 through July 1, 2026.

The New Jersey Supreme Court has ruled that workers’ commissions are counted as wages under the New Jersey Wage Payment Law. The ruling was issued on March 17, 2025.

Nebraska voters have approved a ballot initiative (Initiative Measure 436), which creates the Nebraska Healthy Families and Workplaces Act (the Act) and will provide paid sick time to employees. Employers must begin providing paid sick leave on Oct. 1, 2025.

Voters in Alaska have approved a ballot measure (Ballot Measure 1) that will require employers to provide paid sick leave to employees. The requirement takes effect July 1, 2025.

Missouri voters have approved a ballot initiative, Proposition A, which requires all employers to provide paid sick leave to employees. Proposition A will take effect on May 1, 2025.