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Providing People Solutions |
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Providing People Solutions |
On Friday, November 15, 2024, a federal judge struck down the U.S. Department of Labor’s planned January 1, 2025, increase to the white-collar overtime exemption salary basis thresholds. Additionally, this ruling also invalidated the increase that went into effect on July 1, 2024. As of now, the salary basis threshold has reverted to the 2020 standard of $684 per week ($35,568 annually).
The Federal Trade Commission (“FTC”) had planned to implement a comprehensive ban on non-compete clauses starting September 4, 2024. This rule was designed to prohibit employers from entering into non-compete agreements with workers, including senior executives, to promote fair competition and increase worker mobility.
However, a recent development has altered this course. On August 21, 2024, a federal judge in Texas blocked the FTC’s nationwide ban on non-competes, ruling that the FTC exceeded its statutory authority and did not provide sufficient evidence to justify such a sweeping ban. This decision has put the implementation of the rule on hold, pending further legal proceedings.
Overview of Proposed Changes to Overtime Exempt Salary Levels
On April 23, 2024, the United States Department of Labor published its final rule amending the overtime regulations under the Fair Labor Standards Act (“FLSA”). Specifically, the final rule increases the salary thresholds required for employees to be classified as exempt from overtime requirements.
New Thresholds and Effective Dates:
The new salary threshold increases will be implemented in two (2) phases.
As of August 1, 2023, the United States Citizenship and Immigration Services (“USCIS”) began accepting the new Form I-9, superseding the previous version revised in 2019.
Until October 31, 2023, either the old Form I-9 or the new Form I-9 will be accepted. After October 31, 2023, only the new Form I-9 will be accepted. Submitting an outdated or incorrect Form I-9 after October 31, 2023 will result in penalties. To avoid these penalties, it is important to become familiar with the new Form I-9 prior to this deadline.
The new Form I-9 updates the technological sophistication and greatly streamlines the entire process. Some highlights include:
On June 27, 2023, the Pregnant Workers Fairness Act (“PWFA”) went into effect. The PWFA is a federal law that requires covered employers (public or private sector employers employing at least 15 employees) to provide a reasonable accommodation to employees and applicants who are pregnant, or have limitations related to pregnancy or childbirth. The law does not replace existing federal, state, or local laws which are more protective of workers affected by pregnancy, childbirth, and related medical conditions.
We appreciate your business, and we wish you nothing but the best for Christmas and the New Year holidays.
2025 will be an epic year and we can’t wait to work with you to continue the magic.
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