Federal Contractor Minimum Wage Increases
Beginning on January 1, 2023, the minimum wage for work performed on or in connection with federal contracts will increase as follows:
- For contracts covered by Executive Order 13658: the minimum wage will increase to $12.15 per hour and the minimum base wage for tipped employees will increase to $8.50 per hour.
- For contracts covered by Executive Order 14026: the minimum wage will increase to $16.20 per hour and the minimum base wage for tipped employees will increase to $13.75 per hour.
The Department of Labor has published helpful FAQs on Executive Order 13658 and Executive Order 14026. A side-by-side comparison of these executive orders, including the contracts covered by each, can be found here (though this document hasn’t been updated for 2023).
IRS Mileage Reimbursement Rate
The Internal Revenue Service (IRS) has not yet announced whether its optional standard mileage rate will change as of January 1, 2023. We’ll update the platform if the rate changes.
Federal: IRS Announces 401(k) Contribution Increases and More for 2023
On October 21, 2022, the IRS announced the following changes for 2023:
- The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans increase to $22,500, up from $20,500.
- The limit on annual contributions to an IRA increase to $6,500, up from $6,000. The IRA catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost of living adjustment and remains at $1,000.
- The catch-up contribution limit—for employees 50 and older who participate in 401(k), 403(b), and most 457 plans—increases to $7,500, up from $6,500. Participants in 401(k), 403(b), and most 457 plans who are 50 and older can contribute up to $30,000, starting in 2023. The catch-up contribution limit for employees 50 and older who participate in SIMPLE plans increases to $3,500, up from $3,000.
- The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver’s Credit all increased for 2023.
- Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) The phaseout ranges for 2023 are as follows:
- For single taxpayers covered by a workplace retirement plan, the phase-out range increases to between $73,000 and $83,000, up from between $68,000 and $78,000.
- For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range increases to between $116,000 and $136,000, up from between $109,000 and $129,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range increases to between $218,000 and $228,000, up from between $204,000 and $214,000.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
- The income phase-out range for taxpayers making contributions to a Roth IRA increases to between $138,000 and $153,000 for singles and heads of household, up from between $129,000 and $144,000. For married couples filing jointly, the income phase-out range increases to between $218,000 and $228,000, up from between $204,000 and $214,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
- The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $73,000 for married couples filing jointly, up from $68,000; $54,750 for heads of household, up from $51,000; and $36,500 for singles and married individuals filing separately, up from $34,000.
- The amount individuals can contribute to their SIMPLE retirement accounts increases to $15,500, up from $14,000.
Details on these and other retirement-related cost-of-living adjustments for 2023 are in IRS Notice 2022-55.
Federal: President Biden Signs the Speak Out Act
Effective December 7, 2022, and for claims filed on or after that date, the federal Speak Out Act prohibits judicial enforcement of a nondisclosure clause or non-disparagement clause agreed to before a dispute arises involving sexual assault or sexual harassment. The act doesn’t prohibit employers and employees from protecting trade secrets or proprietary information.
Federal: Use of Online Tracking Technologies by HIPAA-Covered Entities and Business Associates
On December 1, 2022, the Office for Civil Rights (OCR) released a bulletin about the use of online tracking technologies for entities and business associates (regulated entities) covered by the Privacy, Security, and Breach Notification Rules of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The bulletin defines tracking technology and how the HIPPA Rules apply:
- On user-authenticated webpages;
- On unauthenticated webpages;
- Within mobile apps; and
- To HIPAA compliance obligations for regulated entities when using tracking technologies.
Tracking technologies collect and analyze information about user interaction with websites or mobile apps. For example, a regulated entity hires a technology vendor to analyze user interaction with its website or app as part of its health care operations. The HIPAA Rules apply when information collected by that regulated entity—through the tracking technology or information disclosed to tracking technology vendors—includes protected health information (PHI).
Federal: Workplace Discrimination Poster Updated by EEOC
In October 2022, the U.S. Equal Employment Opportunity Commission updated its mandatory workplace poster from EEO is the Law to Know Your Rights: Workplace Discrimination is Illegal. Employers should update their poster with the new version (dated 10/20/22) and display it in the workplace.
The poster should be placed in a conspicuous location in the workplace where notices to applicants and employees are customarily posted. In addition to physically posting, covered employers are encouraged by the EEOC to post the notice digitally on their websites in a conspicuous location. In most cases, electronic posting supplements the physical posting requirement. In some situations (for example, for employers without a physical location or for employees who telework or work remotely and do not visit the employer’s workplace on a regular basis), it may be the only posting.