On November. 1, 2024 ,the Internal Revenue Service issues a news release IR-2024-285, which announced 401(k) limit increases to $23,500 for 2025, (raised up from $23,000 for 2024.) IRA limit remains $7,000.

This news comes as a relief for many American workers who are looking to save more for retirement. The 401(k) limit is the maximum amount that an individual can contribute to their employer-sponsored retirement account in a given year, while the IRA (individual retirement account) limit is the maximum amount that an individual can contribute to their personal retirement account.

For 2025, the catch-up contribution limit for employees aged 50 and older participating in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan remains set at $7,500. Consequently, these participants can contribute up to $31,000 annually starting in 2025. Additionally, under the recent changes introduced by SECURE 2.0, employees aged 60, 61, 62, and 63 in these plans can benefit from a higher catch-up contribution limit of $11,250, up from the standard $7,500.

The increase in 401(k) contribution limits is important because it allows individuals to save more money towards their future. With the cost of living on the rise and uncertainty surrounding Social Security benefits, having a healthy nest egg for retirement has become crucial. By increasing the limit by $500 from the previous year, the IRS is giving Americans an opportunity to boost their savings even further.

You can read the complete news release issues by the Internal Revenue Service (IRS) by clicking here: 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000

On Tuesday, October 29, 2024 the U.S. Bureau of Labor Statistics released the October 2024 Job Openings and Labor Turnover Summary.

According to the U.S. Bureau of Labor Statistics, the number of job openings remained relatively stable at 7.4 million on the last business day of September. Hires also saw minimal change, totaling 5.6 million for the month. The total number of separations held steady at 5.2 million. Within this category, quits (3.1 million) and layoffs and discharges (1.8 million) showed little variation. This report provides estimates regarding the number and rate of job openings, hires, and separations across the entire nonfarm sector, categorized by industry and establishment size.

Job Openings

On the last business day of September, the number of job openings remained relatively stable at 7.4 million, although it represented a decrease of 1.9 million compared to the previous year. The job openings rate held steady at 4.5 percent for the month. Notable declines in job openings occurred in health care and social assistance (-178,000), state and local government (excluding education) (-79,000), and the federal government (-28,000). In contrast, there was an increase in job openings within the finance and insurance sectors.(+85,000). (See table 1.)

Hires

In September, both the number of hires and the hiring rate showed minimal change, remaining at 5.6 million and 3.5 percent, respectively.

(See table 2.)

Read the full press release here: https://www.bls.gov/news.release/jolts.nr0.htm

P.A. 103-0539 (HB 3129) (Rep. Canty, Sen. Pacione-Zayas)—EQUAL PAY ACT – PAY SCALE

Provides that it is unlawful for an employer with 15 or more employees to fail to include the pay scale for a position in any job posting.  Provides that if an employer engages a third party to announce, post, publish or otherwise make known a job posting, the employer shall provide the pay scale and benefits, or a hyperlink to the pay scale and benefits, to the third party and the third party shall include the pay scale and benefits, or a hyperlink to the pay scale and benefits, in the job posting. IML was neutral on the legislation.  Effective January 1, 2025.

The amendment provides language that Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes: Further amends the Equal Pay Act of 2003. Provides that an employer shall be liable for a third party’s failure to include the pay scale and benefits in a job posting. Provides that an employer shall announce, post, or otherwise make known all opportunities for promotion to all current employees no later than the same calendar day that the employer makes an external job posting for the position. Provides that an employer shall make and preserve records that document the pay scale and benefits for a position. Provides that the Department of Labor may initiate investigations of alleged violations of provisions concerning disclosing a pay scale in job postings. Provides that, if the Department determines that a violation occurred, the employer shall have 7 days upon receipt of notice of a violation from the Department to remedy the violation. Provides that the employer shall demonstrate to the Department that the violation has been remedied or the employer shall be subject to a civil penalty of $100 per day for each day that a violation continues after the 7-day notice period. Effective January 1, 2024 (rather than effective immediately).

Read the complete amendment here:  https://ilga.gov/legislation/BillStatus.asp?GA=103&SessionID=112&DocTypeID=HB&DocNum=3129

The Equal Pay Act Reporting Requirements in Illinois originally began on March 24, 2022 for Large Illinois Businesses.  Large businesses are defined as employers with 100 or more employees in Illinois during the reporting period. However, due to the COVID-19 pandemic, this requirement was delayed until January 1, 2023.

Illinois is taking a proactive stance in combating pay discrimination through the T-Pay Scale law. This legislation requires employers with 15 or more employees to include the pay scale for a position in any job posting. This means that potential applicants will have access to information about the salary range for a particular position before even applying.

The law also extends to third party job postings by requiring employers to provide the pay scale and benefits information to these platforms. This ensures transparency and equal opportunity for all job seekers.