New Laws & Regulations for Business Owners in 2024

At the start of 2024, significant laws affecting certain businesses came into effect.

As a business owner, understanding these changes is vital for staying compliant and making informed decisions. 

We’ve compiled a list of some of the most meaningful small business law changes you should know about. Let's look at what you need to do to keep your business on the right track this year. 

Data Broker Registration Laws & California’s Delete Act

These two legislative developments impact data privacy and consumer rights.

Data Broker Registration

Data broker registration laws have been enacted in a number of states over the last several years. For example, Vermont’s law came into effect in 2019.

These laws typically require companies that act as data brokers to register with the state they do business in.

Examples of data brokers include:

• Marketing and Advertising Companies
• Background Check Services
• Consumer Data Resellers
• Internet and Technology Companies

California’s Delete Act

California’s new law takes data broker regulation a step further. It requires that data brokers implement mechanisms that allow consumers to request the deletion of their personal information in a simple, streamlined process.

The Delete Act is one among several modifications to legislation enacted in 2018, and it is anticipated to be completely detailed and put into effect by the middle of 2026.

What to Do If You’re a Data Broker

If your business is considered a data broker, you'll need to determine if state registration and other requirements apply to your business.

California SMB owners looking for more information on the Delete Act can consult the Attorney General’s website.

Increased Documentation and Reporting Requirements for Small Business Loans

The Consumer Financial Protection Bureau (CFPB) is behind a new initiative to increase documentation and reporting requirements for small businesses applying for bank loans.

The new reporting requirements aim to gain more information about who banks are loaning money to in order to identify potential discrimination.

What This Means for SMB Owners

Although the law primarily affects the banks that are doing the lending, it will also mean that SMB owners will be required to provide more detailed information, such as business affiliates and controlling members, among other items when applying for loans.

For more information on the CFPB and these changes, check out their website.

NLRB’s Joint-Employer Rule

This rule expands liability for unfair labor practices.

The rule was enacted by the National Labor Relations Board (NLRB) and is set to come into effect on February 26, 2024.

The Joint-Employer Rule clarifies what constitutes a joint-employer relationship, which is critical to determining liability for labor law violations and collective bargaining obligations.

Who is Impacted?

In short, this rule may affect any business arrangement where more than one business entity exerts control over the terms and conditions of employment of a group of workers. This may include businesses that use:

• Contract Labor
• Staffing Agencies
• Franchisor-Franchisee Relationships

If you believe you may be involved in a joint-employer relationship with another business entity, you should review the new rule carefully and, if necessary, seek expert advice on its application to your situation.

EU-US Data Privacy Framework

The Data Privacy Framework was developed through negotiations between EU and US officials and is considered a successor to the Privacy Shield Framework, which was struck down by the EU High Court in 2020.

The primary goal of the Framework is to provide a legal mechanism for transferring personal data from the EU to the US while ensuring that the data protection rights of EU citizens are respected and complied with under EU law.

Who is Impacted?

Any business involved in processing data between the US and the EU may be affected by this framework.

In particular, businesses that rely on transatlantic data flows for their operations should become familiar with the framework. That includes businesses involved in:

• Cloud Services
• Social Media
• E-Commerce

SMB owners in these industries who are looking for guidance on how to comply with the new framework should reference the FTC’s website.

No Need to Report Digital Transactions Over $600 Just Yet

SMB owners who frequently use Venmo, Zelle, or PayPal may remember that back in 2021, the American Rescue Plan Act was passed. The act lowered the reporting threshold for transactions on these platforms from $20,000, and at least 200 transactions down to just $600, regardless of the number of transactions.

The good news (for now) is that the proposed change, which was supposed to take effect in 2024, has been delayed.

As of the writing of this blog, the IRS has not announced a definitive new date for when the requirement will take effect.

In spite of this delay, it’s advisable for SMB owners to begin preparing for the change by maintaining clear records of all transactions and staying up to date with the IRS and the platforms in question.

25 States Are Raising Their Minimum Wage in 2024

If you operate in any of these 25 states, be aware that the minimum wage increased to:

*This is before a planned inflation adjustment, which is TBD.

Stay Updated with BBSI

As an industry-leading PEO, we make it our business to help SMB owners across the country with time-consuming tasks like HR, payroll, and workers’ compensation, in addition to business strategy.

If you’re looking for a PEO partner to help your business grow, find a BBSI location near you, and let’s get started.