--- title: "A Year in Review: Law Changes Affecting Business Owners in 2020" description: From the KC Salary History Ban and medical marijuana to the new overtime rule and EEO-1 changes, 2019 was busy. Here's how HR will be impacted in 2020. image: https://blog.axcethr.com/hubfs/dec%2010%20blog%20image.png --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [Why Choose Axcet?](https://www.axcethr.com/why-axcet/) - [About PEOs](https://www.axcethr.com/why-axcet/about-peos/) - [PEO Cost](https://www.axcethr.com/peo-cost/) - [Switching PEOs](https://www.axcethr.com/switching-peos/) - [Certified PEO](https://www.axcethr.com/why-axcet/certified-peo/) - [HR Outsource Options](https://www.axcethr.com/why-axcet/outsourcing-options/) - [Client Reviews](https://www.axcethr.com/why-axcet/client-reviews/) - [PEO Services](https://www.axcethr.com/services/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Workers' Comp. and Employee Safety Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Expertise](https://www.axcethr.com/expertise/) - [PEO Expertise You Can Trust](https://www.axcethr.com/expertise/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [Subscribe to the Blog](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Blog](https://blog.axcethr.com) - [Schedule a Consultation](https://www.axcethr.com/schedule-consultation/) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [Client Reviews](https://www.axcethr.com/why-axcet/client-reviews/) - [Why Choose Axcet?](https://www.axcethr.com/why-axcet/) - [About PEOs](https://www.axcethr.com/why-axcet/about-peos/) - [Certified PEO](https://www.axcethr.com/why-axcet/certified-peo/) - [Options to Outsource Human Resources](https://www.axcethr.com/why-axcet/outsourcing-options/) - [Services](https://www.axcethr.com/services/) - [Complete List of Services](https://www.axcethr.com/services/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Risk Management](https://www.axcethr.com/services/risk-management/) - [Payroll Administration](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Expertise](https://www.axcethr.com/expertise/) - [Expertise You Can Trust](https://www.axcethr.com/expertise/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [Blog](https://blog.axcethr.com/) - [Subscribe to the Blog](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [About Us](https://www.axcethr.com/about-us/) - [Community Involvement](https://www.axcethr.com/about-us/community-involvement/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![fuel-blog-logo](https://blog.axcethr.com/hs-fs/hubfs/fuel-blog-logo.png?width=310&height=97&name=fuel-blog-logo.png)](https://blog.axcethr.com) Filter Blog by Topic - [Human Resources](https://blog.axcethr.com/topic/human-resources) - [Payroll Administration](https://blog.axcethr.com/topic/payroll-administration) - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) # A Year in Review: Law Changes Affecting Business Owners in 2020 By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Dec 11, 2019](https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020) 5 min read [0 comment(s)](https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020](whatsapp://send?text=https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020) - [mailto:?subject=A%20Year%20in%20Review:%20Law%20Changes%20Affecting%20Business%20Owners%20in%202020&body=https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020](mailto:?subject=A%20Year%20in%20Review:%20Law%20Changes%20Affecting%20Business%20Owners%20in%202020&body=https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020) ![dec 10 blog image](https://blog.axcethr.com/hs-fs/hubfs/dec%2010%20blog%20image.png?width=1000&name=dec%2010%20blog%20image.png) *updated January 14, 2020* We may have closed the books on 2019, but the key law changes passed last year took effect January 1, 2020 and will continue to impact business owners moving forward. From the Kansas City Salary History Ban and legal Medical Marijuana in Missouri to the DOL’s new overtime rule and EEO-1 reporting changes, one thing is for sure - it was another busy year. Here is a quick review of the year’s most notable law changes impacting business owners and HR professionals.  **Salary History Ban** In 2018, we blogged about the Salary History Ban in Kansas City impacting city departments only ([read more about it here](https://blog.axcethr.com/salary-history-bans-are-they-in-the-near-future-for-kansas-city-private-employers)) and suggested a Kansas City Salary History Ban for private employers may be on the horizon. And that is exactly what happened in 2019. In a move designed to close the gender pay gap, the Kansas City, Missouri City Council unanimously passed an ordinance that took effect October 31, 2019, to ban private employers with six or more employees from asking job applicants about their salary history. The ban prohibits employers from asking about a job applicant’s salary history; screening candidates based on their current or prior wages or other benefits; relying on an applicant’s salary history in deciding whether to make an employment offer or in determining an applicant’s salary, benefits or other compensation during the hiring process; and refusing to hire or otherwise discrimination against applicants who do not disclose their current or past wages, benefits or other compensation. Ordinance violations are punishable by a maximum fine of $500 or up to 180 days in jail. [![kansas city salary history ban takes effect october 31 2019](https://no-cache.hubspot.com/cta/default/2652187/896a1b57-d37a-4db6-b6d4-3327d0c861b4.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/896a1b57-d37a-4db6-b6d4-3327d0c861b4) **Missouri Employers Prepare for Legal Marijuana** In November 2018, Missouri legalized marijuana for medicinal purposes putting business owners in a difficult spot and leaving them confused about their rights as an employer. Can a drug-free workplace even be enforced? What about drug testing? What can be done when an employee shows up to work high? In 2019, employers spent time reviewing their drug policies, training managers on how to identify marijuana impairment and how to handle accommodation requests, determining applicable U.S. DOT regulations, and double-checking for any government contracts. All of this will help to prepare employers for Spring 2020, the expected timeframe businesses will see the first of the medical marijuana cards among their employees and applicants.   [![Related Reading: Eight Things Employers Need to Know in an Era of Legal Marijuana](https://no-cache.hubspot.com/cta/default/2652187/b48847cf-12b9-463d-b938-30189b92d2a9.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/b48847cf-12b9-463d-b938-30189b92d2a9) Currently, the Missouri Department of Health and Senior Services is in the process of approving, or “scoring”, facilities applications based on the quality of anticipated service and ability to adhere to regulations. They have until December 31, 2019, to complete this step. The top-scoring applications will receive licensure and are expected to begin operating in January 2020. The industry is expected to top $100 million in sales by 2025. [![Related Reading: How Medical Marijuana Impacts Workplace Safety](https://no-cache.hubspot.com/cta/default/2652187/3df2e6f8-a2ba-49cf-ae0b-bb59fe372542.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/3df2e6f8-a2ba-49cf-ae0b-bb59fe372542) If you’re wondering just how big of an impact legal medical marijuana will have on Kansas City area employers, it is currently surpassing original forecasts. According to [St. Louis Post-Dispatch](https://apnews.com/article/marijuana-mo-state-wire-michael-brown-medical-marijuana-af33395d7b3e4644b437077a75913e7a), “Interest in medical marijuana use has far outpaced expectations only five months into Missouri’s new program.” Since July 4, 2019, Missouri issued almost 22,000 medical marijuana cards, a number that wasn’t expected to be reached until 2021, and that number is expected to grow, with clinics opening just to help people secure a card. The Missouri Medical Cannabis Trade Association is projecting ***at least*** 122,000 medical marijuana patients by the end of 2022.  [![Free white paper available for download discussing legal medical and recreational marijuana in the workplace.](https://no-cache.hubspot.com/cta/default/2652187/1026b247-8895-4936-b3f4-1a75e5ba4c22.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/1026b247-8895-4936-b3f4-1a75e5ba4c22) **DOL New Overtime Rule Finalized; Took Effect January 1, 2020** On September 24, 2019, the U.S. Department of Labor (DOL) announced its final “overtime rule” which ***took effect January 1, 2020***. Under the new rule, the minimum salary threshold for exempt executive, administrative and professional employees under the Fair Labor Standards Act (FLSA) increases making approximately 1.3 million American workers newly eligible for overtime pay. The new final overtime rule raises the “standard salary level” from the current level of $455 per week to $684 per week (equivalent to $35,568 per year), raises the total annual compensation level for “highly compensated employees” from the current level of $100,000 to $107,432 per year, allows employers to use non-discretionary bonuses and incentive payments to satisfy up to 10% of the standard salary level and revises the special salary level for workers in US territories and in the motion picture industry.  [![Related Reading: DOL New Ovetime Rule Takes Effect January 1, 2020](https://no-cache.hubspot.com/cta/default/2652187/a80202ce-8a0e-4fa9-a5d2-b4f4eba165f2.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/a80202ce-8a0e-4fa9-a5d2-b4f4eba165f2) **EEOC Announces it Will No Longer Collect Component 2 Pay Data** Businesses with 100 or more employees, as well as federal contractors with 50 or more employees, long have been required to submit annual Employer Information Reports (EEO-1 Reports), or surveys, disclosing the job category, race, sex and ethnicity of each of their employees. Then, in 2016, the Equal Employment Opportunity Commission (EEOC) announced it would require some employers to report W-2 wages and hours worked, or “Component 2” data, as well, so the Commission could identify pay gaps and investigate pay discrimination practices.  [![Related Reading - Compliance in 2020: New Year, New Payroll Changes](https://no-cache.hubspot.com/cta/default/2652187/fadc60cc-a85b-4842-b0cd-961e2d9320b2.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/fadc60cc-a85b-4842-b0cd-961e2d9320b2) While Component 2 data for 2017 and 2018 was still required to be submitted by September 30, 2019, the EEOC announced just ahead of the deadline (on September 11, 2019) that it would not seek approval from the Office of Management and Budget (OMB) to collect detailed employee compensation data (Component 2 data) on its Form EEO-1 in the future as the agency concluded the burden imposed on employers to gather the data outweighs its usefulness to the agency. The EEOC still plans to follow its longtime practice of collecting Component 1 data.  For employers required to submit Component 2 data, but who have failed to do so yet, the EEOC will continue to take all steps necessary to complete the data collection by January 31, 2020. This does not mean there are additional reporting requirements for those employers who have already submitted the data, but for those who have not yet filed, they should finalize their Component 2 reports ahead of the January 31, 2020 deadline.  [![Related Reading: EEO-1 Pay Data Requirements](https://no-cache.hubspot.com/cta/default/2652187/b5cfdd72-56cc-4ff7-8c89-d3faf4a8e9b1.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/b5cfdd72-56cc-4ff7-8c89-d3faf4a8e9b1) At Axcet HR Solutions, we’ve been managing human resources, benefits, payroll, safety and workers' compensation duties for small- to medium-sized businesses in the Greater Kansas City metro area for more than 30 years.  [![HR Headaches? Our Comprehensive HR Solutions can Help you Gain 40 Percent of Your Time Back.](https://no-cache.hubspot.com/cta/default/2652187/8425fef4-9497-4c72-8bdc-d148d0bb94c6.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/8425fef4-9497-4c72-8bdc-d148d0bb94c6) **Disclaimer**  The content offered is offered only as a public service and does not constitute solicitation or provision of legal advice.  This site should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter.   [![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman) Written by #### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years. As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow. With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges. Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management. Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR. Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce. Published in: PEO Insider and Ingram's Read more [View all posts →](https://blog.axcethr.com/author/jeanette-coleman) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [services HR Compliance](https://www.axcethr.com/services/human-resources/hr-compliance-specialist/) #### [Yanking out the Grapevine: How to Deal with Gossip at Work ![dec 13 blog image](https://blog.axcethr.com/hubfs/dec%2013%20blog%20image.webp)](https://blog.axcethr.com/yanking-out-the-grapevine-how-to-deal-with-gossip-at-work) #### [![dec 9 blog image](https://blog.axcethr.com/hubfs/dec%209%20blog%20image.png) 7 Steps to Create a Happy Workplace](https://blog.axcethr.com/7-steps-to-create-a-happy-workplace) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateModified" : "2023-08-03T18:01:59.742Z", "datePublished" : "2019-12-11T16:00:00.000Z", "headline" : "A Year in Review: Law Changes Affecting Business Owners in 2020", "image" : [ "https://blog.axcethr.com/hubfs/dec%2010%20blog%20image.png" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. Founded in Kansas City in 1988 with 35+ years of expertise.", "foundingDate" : "1988", "foundingLocation" : { "@type" : "Place", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" } }, "hasOfferCatalog" : { "@type" : "OfferCatalog", "itemListElement" : [ { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Comprehensive HR management services including recruitment, retention, performance management, and company culture development", "name" : "Human Resources Management" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Accurate payroll processing and payroll tax filing with dedicated payroll consultants", "name" : "Payroll Processing" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Group employee benefits management including health insurance evaluation, selection, and administration", "name" : "Employee Benefits Administration" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Workplace safety compliance and risk management solutions", "name" : "Risk Management" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Employment law compliance, regulatory reporting, and guidance from employment law attorneys", "name" : "HR Compliance & Legal Support" } } ], "name" : "HR Solutions Services" }, "keywords" : "PEO, Professional Employer Organization, HR Solutions, Human Resources Outsourcing, Payroll Services, Employee Benefits, Kansas City PEO, Small Business HR, Mid-Sized Business HR, HR Consulting, IRS Certified PEO, CPEO", "knowsAbout" : [ "Human Resources Management", "Professional Employer Organization", "PEO Services", "Payroll Processing", "Employee Benefits Administration", "Risk Management", "HR Compliance", "Health Plan Management", "Talent Recruitment", "Performance Management", "Workplace Safety", "Employment Law Compliance" ], "legalName" : "Axcet HR Solutions", "logo" : { "@type" : "ImageObject", "url" : "https://www.axcethr.com/wp-content/uploads/axcet-logo.png" }, "memberOf" : { "@type" : "Organization", "name" : "IRS Certified Professional Employer Organizations" }, "name" : "Axcet HR Solutions", "numberOfEmployees" : { "@type" : "QuantitativeValue", "value" : "50-200" }, "sameAs" : [ "https://blog.axcethr.com" ], "slogan" : "HR Support That Drives Success", "url" : "https://www.axcethr.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020#article", "@type" : "BlogPosting", "alternativeHeadline" : "updated January 14, 2020 We may have closed the books on false", "articleBody" : "updated January 14, 2020 We may have closed the books on 2019, but the key law changes passed last year took effect January 1, 2020 and will continue to impact business owners moving forward. From the Kansas City Salary History Ban and legal Medical Marijuana in Missouri to the DOL’s new overtime rule and EEO-1 reporting changes, one thing is for sure - it was another busy year. Here is a quick review of the year’s most notable law changes impacting business owners and HR professionals. Salary History Ban In 2018, we blogged about the Salary History Ban in Kansas City impacting city departments only (read more about it here) and suggested a Kansas City Salary History Ban for private employers may be on the horizon. And that is exactly what happened in 2019. In a move designed to close the gender pay gap, the Kansas City, Missouri City Council unanimously passed an ordinance that took effect October 31, 2019, to ban private employers with six or more employees from asking job applicants about their salary history. The ban prohibits employers from asking about a job applicant’s salary history; screening candidates based on their current or prior wages or other benefits; relying on an applicant’s salary history in deciding whether to make an employment offer or in determining an applicant’s salary, benefits or other compensation during the hiring process; and refusing to hire or otherwise discrimination against applicants who do not disclose their current or past wages, benefits or other compensation. Ordinance violations are punishable by a maximum fine of $500 or up to 180 days in jail. Missouri Employers Prepare for Legal Marijuana In November 2018, Missouri legalized marijuana for medicinal purposes putting business owners in a difficult spot and leaving them confused about their rights as an employer. Can a drug-free workplace even be enforced? What about drug testing? What can be done when an employee shows up to work high? In 2019, employers spent time reviewing their drug policies, training managers on how to identify marijuana impairment and how to handle accommodation requests, determining applicable U.S. DOT regulations, and double-checking for any government contracts. All of this will help to prepare employers for Spring 2020, the expected timeframe businesses will see the first of the medical marijuana cards among their employees and applicants. Currently, the Missouri Department of Health and Senior Services is in the process of approving, or “scoring”, facilities applications based on the quality of anticipated service and ability to adhere to regulations. They have until December 31, 2019, to complete this step. The top-scoring applications will receive licensure and are expected to begin operating in January 2020. The industry is expected to top $100 million in sales by 2025. If you’re wondering just how big of an impact legal medical marijuana will have on Kansas City area employers, it is currently surpassing original forecasts. According to St. Louis Post-Dispatch, “Interest in medical marijuana use has far outpaced expectations only five months into Missouri’s new program.” Since July 4, 2019, Missouri issued almost 22,000 medical marijuana cards, a number that wasn’t expected to be reached until 2021, and that number is expected to grow, with clinics opening just to help people secure a card. The Missouri Medical Cannabis Trade Association is projecting at least 122,000 medical marijuana patients by the end of 2022. DOL New Overtime Rule Finalized; Took Effect January 1, 2020 On September 24, 2019, the U.S. Department of Labor (DOL) announced its final “overtime rule” which took effect January 1, 2020. Under the new rule, the minimum salary threshold for exempt executive, administrative and professional employees under the Fair Labor Standards Act (FLSA) increases making approximately 1.3 million American workers newly eligible for overtime pay. The new final overtime rule raises the “standard salary level” from the current level of $455 per week to $684 per week (equivalent to $35,568 per year), raises the total annual compensation level for “highly compensated employees” from the current level of $100,000 to $107,432 per year, allows employers to use non-discretionary bonuses and incentive payments to satisfy up to 10% of the standard salary level and revises the special salary level for workers in US territories and in the motion picture industry. EEOC Announces it Will No Longer Collect Component 2 Pay Data Businesses with 100 or more employees, as well as federal contractors with 50 or more employees, long have been required to submit annual Employer Information Reports (EEO-1 Reports), or surveys, disclosing the job category, race, sex and ethnicity of each of their employees. Then, in 2016, the Equal Employment Opportunity Commission (EEOC) announced it would require some employers to report W-2 wages and hours worked, or “Component 2” data, as well, so the Commission could identify pay gaps and investigate pay discrimination practices. While Component 2 data for 2017 and 2018 was still required to be submitted by September 30, 2019, the EEOC announced just ahead of the deadline (on September 11, 2019) that it would not seek approval from the Office of Management and Budget (OMB) to collect detailed employee compensation data (Component 2 data) on its Form EEO-1 in the future as the agency concluded the burden imposed on employers to gather the data outweighs its usefulness to the agency. The EEOC still plans to follow its longtime practice of collecting Component 1 data. For employers required to submit Component 2 data, but who have failed to do so yet, the EEOC will continue to take all steps necessary to complete the data collection by January 31, 2020. This does not mean there are additional reporting requirements for those employers who have already submitted the data, but for those who have not yet filed, they should finalize their Component 2 reports ahead of the January 31, 2020 deadline. At Axcet HR Solutions, we’ve been managing human resources, benefits, payroll, safety and workers' compensation duties for small- to medium-sized businesses in the Greater Kansas City metro area for more than 30 years. Disclaimer The content offered is offered only as a public service and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter.", "author" : { "@id" : "https://blog.axcethr.com/author/jeanette-coleman#author", "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateCreated" : "2019-12-11", "dateModified" : "2023-08-03", "datePublished" : "2019-12-11", "description" : "updated January 14, 2020 We may have closed the books on 2019, but the key law changes passed last year took effect January 1, 2020 and will continue to impact business owners moving forward. From the Kansas City Salary History Ban and legal Medical Marijuana in Missouri to the DOL’s new overtime rule and EEO-1 reporting changes, one ...", "editor" : "Jeanette Coleman, SPHR & SHRM-SCP", "genre" : "Human Resources and Employee Management", "headline" : "A Year in Review: Law Changes Affecting Business Owners in 2020", "image" : "https://cdn2.hubspot.net/hubfs/2652187/dec%2010%20blog%20image.png", "keywords" : "Human Resources, Compliance, employee overtime, missouri medical marijuana employment, missouri medical marijuana employer rights, HR Compliance, HR compliance issues, top HR compliance issues, Kansas City Salary History Ban, new overtime law 2019, KC salary history ban, missouri medical marijuanas, kansas city medical marijuana, dol overtime rule, new employment laws 2019, 2019 employment law updates, eeoc component 2 data", "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020", "@type" : "WebPage" }, "publisher" : { "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hs-fs/hubfs/axcethr_logo_white.png?width=225&name=axcethr_logo_white.png" }, "name" : "Axcet HR Solutions" }, "url" : "https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020", "wordCount" : "6640" } ``` ```json { "@context" : "https://schema.org", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.axcethr.com/", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/", "name" : "Insights", "position" : 2 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/tag/human-resources", "name" : "Human Resources", "position" : 3 }, { "@type" : "ListItem", "item" : "https://blog.axcethr.com/a-year-in-review-law-changes-affecting-business-owners-in-2020", "name" : "A Year in Review: Law Changes Affecting Business Owners in 2020", "position" : 4 } ] } ```