Noteworthy Employment Laws in Effect in 2023

Susan Baird Motschiedler

Employers should be aware of two new laws, effective 2023:

1.?Pregnancy Workers Fairness Act (PWFA)

Pregnancy discrimination is currently prohibited under 1.) the Pregnancy Discrimination Act (PDA), which modified Title VII of the Civil Rights Act of 1964, and 2.) under the Americans with Disabilities Act (ADA). The PDA requires covered employers to treat employees affected by pregnancy, childbirth or related conditions the same as other similarly situated employees.?The ADA, in turn, requires employers to provide reasonable accommodations for certain conditions that qualify as a disability and are related to pregnancy, though it does not require any accommodation for many common pregnancy-related conditions that do not qualify as a disability. The PWFA adds an additional layer of protections to cover those pregnancy-related conditions that are not covered under the ADA.?

The PWFA applies to employers with 15 or more employees, goes into effect June 27, 2023, and requires covered employers to provide reasonable accommodations for “the known limitations related to pregnancy, childbirth and related medical conditions of a qualified employee.”?Like the ADA, the standard applies “unless [a] covered entity demonstrates that the accommodation would impose an undue hardship on the operation of the business.” The PWFA specifically prohibits employers from the following:

• Requiring a covered employee to accept an accommodation other than a “reasonable accommodation arrived at through the interactive process”
• Requiring covered employees to take leave when another reasonable accommodation could instead be provided?
• Denying “employment opportunities” to covered employees “based on the need” to “make reasonable accommodations”
• Taking adverse actions against covered employees requesting reasonable accommodations
• Retaliating against any employee for reporting or opposing unlawful discrimination under PWFA

Employers should take steps now to ensure they will be in compliance with the PWFA on the effective date by doing the following:

• Train supervisors and HR professionals on the PWFA, including recognizing potential requests for accommodation
• Review and update accommodation policies to comply with the PWFA
• Analyze accommodations the employer could potentially provide to pregnant employees for common pregnancy related issues

2.?Utah’s Mobile Workforce Income Tax Amendments

S.B. 39 was passed during the 2022 legislative session and addresses the tax and withholding for a non-resident employee earning wages inside Utah. The law went into effect on Jan.1, 2023, and provides an exemption from state tax for nonresidents who meet certain qualifications and who work in the state of Utah for 20 or fewer days during a taxable year. The law also modifies employers’ withholding obligations for a qualifying nonresident.

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