The following HR compliance updates may impact your policies or operations.
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FTC BANS MOST NEW NONCOMPETE AGREEMENTS NATIONWIDE
The Federal Trade Commission has approved a final rule banning most new non compete clauses in employment contracts. The rule makes all existing noncompete agreements, except those covering senior executives and not-for-profit entities, unenforceable.
- Senior executives are defined as those earning over $151,164 annually in a policy-making position.
- The rule will likely go into effect on September 4, 2024, 120 days after its publication in the Federal Register, though delays are expected.
- Employers should review their policies for compliance and consider alternatives such as non-solicitation or confidentiality clauses to protect business interests.
Our team will keep you updated as more information becomes available, but we recommend starting to consider how your current operations may be impacted, as the rule likely will remain in tact. Don’t hesitate to contact us with questions or for support in updating your current procedures.
NEW OVERTIME RULE RAISES SALARY LEVEL IN TWO PHASES
The U.S. Department of Labor has implemented a new overtime rule that will significantly increase the salary threshold for white-collar exemptions to overtime requirements in two phases:
- Effective July 1, 2024, the FLSA’s annual salary-level threshold for white-collar exemptions to overtime requirements will increase from $35,568 to $43,888.
- Effective January 1, 2025, the annual salary threshold will rise to $58,656.
- The FLSA mandates overtime pay for the majority of employees and provides exceptions for certain job categories. Those employees who qualify for overtime pay are labeled as “nonexempt,” while those who do not qualify are termed “exempt.”
Employers are advised to budget for salary and overtime expenses, plan reclassification strategies, and consider compliance with state and local wage laws.
EXPECT MORE HR INVOLVEMENT IN JOB TRANSFERS
The U.S. Supreme Court recently ruled that employees who challenge a job transfer as discriminatory or retaliatory only need to demonstrate “some harm” rather than “significant injury” under the Civil Rights Act of 1964.
- This ruling lowers the threshold for employees to show that a job transfer has impacted their working conditions when accusing their employer of discrimination.
- Employers must carefully consider an employee’s job transfer and ensure that there are legitimate business reasons for such a decision.
- Any complaints of discrimination must be promptly investigated.
NEW PREGNANT WORKERS FAIRNESS ACT REGULATIONS
On April 15, 2024, the EEOC issued its final rule implementing the Pregnant Workers Fairness Act. The final rule will become effective on June 18, 2024, and will require covered employers to provide reasonable accommodations to qualified employees or applicants with known limitations due to pregnancy, childbirth, or related medical conditions. Accommodations can include:
- Physical adjustments, such as providing a stool or lightening manual labor
- Telecommuting
- Going on leave
- Nursing during work hours
- Changing work assignments
Employers are not required to provide accommodations if they would cause an undue hardship on their business.
IN CASE YOU MISSED IT: NEW UPDATE BLOCKS RECENT NLRB JOINT EMPLOYMENT RULE
You may have received an update from us in the beginning of the year concerning an upcoming change to joint employment regulations. Recent litigation has prevented the new rule from becoming effective for the time being, and we will keep you updated as we learn more.
We will continue to provide information on these changes and others as updates become available. If you have any questions on how you might be impacted or what policy changes your business needs to make, please contact me at edgar@officiumdc.com or schedule a time to talk here.