New changes to labor laws not only impact a business’s employees and bottom line, but also pose additional administrative burdens on an organization. Below is an outline of the key aspects of new regulations likely to affect your business and insights on how to navigate them effectively to ensure compliance and minimize disruptions to your operations.
New FLSA Salary Threshold
Employees making less than $58,656 may now be eligible for overtime.
The U.S. Department of Labor has increased the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold from $35,568 to $58,656 as of Jan. 1, 2025, for white-collar exemptions to overtime requirements. Effective July 1, 2024, the salary threshold will increase to $43,888. Employees making less than the salary-level threshold, such as hourly workers, can be eligible for overtime if they work enough hours.
Employers are now faced with the decision of whether to increase the salaries of employees who previously fell above the overtime threshold under the old standard but now fall below it under the new standard, thereby maintaining their exempt status. Alternatively, employers may opt not to raise these employees’ salaries, which would entail paying overtime when they work beyond 40 hours per workweek. Adjustments to schedules may be necessary for employees whose salaries remain below the new threshold to mitigate overtime expenses.
Clear communication is crucial when transitioning formerly exempt employees to nonexempt status, ensuring they understand the reasons behind the change. Also, employers should ensure legally compliant time-keeping systems are in place and supervisors are trained on how to manage schedules for overtime implications.
Louisiana Becomes the 28th Permitless Carry State
This update goes into effect on July 4, 2024.
Starting July 4, it will be legal for most people in Louisiana to carry a concealed firearm without a permit. After Louisiana’s recent enactment of permitless carry legislation, employers face the challenge of adjusting to a new landscape where individuals aged 18 and above can legally carry concealed handguns without a permit. Effective July 4, this law mandates that employers must grasp the intricacies of the legislation and devise careful strategies to maintain workplace security while upholding legal compliance. Read more at hrnola.com.
Ban on Non-Compete Agreements
News on protecting company secrets and keeping top talent.
The Federal Trade Commission (FTC) issued the Non-Compete Clause Rule on April 23, calling for a comprehensive ban on non-compete agreements nationwide. The FTC concluded that non-competes are an “unfair method of competition and therefore a violation of Section 5 of the Federal Trade Commission Act.” The FTC estimates that 18% of U.S. workers, or 30 million people, are covered by non-compete agreements.
What can employers do without a non-compete agreement? Strengthen your non-solicitation and confidentiality agreements and uphold them rigorously. Clearly communicate their terms and implications during signing and upon employee departure to ensure compliance. Implement additional restrictive covenants, such as agreements prohibiting employees from soliciting clients or colleagues.
U.S. Department of Education Releases Final Title IX Regulations
This provides vital protections against sex discrimination.
For over half a century, Title IX has been instrumental in advancing access to education for students nationwide. This commitment has led the U.S. Department of Education to unveil its Final Rule under Title IX, aimed at preventing sex-based discrimination in education programs or activities that receive federal financial support. These regulations prioritize educational equity and opportunity for students nationwide, fostering accountability, fairness, and empowerment for students and families alike.
What does this mean for organizations that must comply with Title IX? The rule clarifies the steps a school must take to protect students, employees and applicants from discrimination based on pregnancy or related conditions. And the rule protects against discrimination based on sex stereotypes, sexual orientation, gender identity and sex characteristics.
Schools must respond promptly to all complaints of sex discrimination with a fair, transparent and reliable process that includes trained, unbiased decisionmakers to evaluate all relevant and not otherwise impermissible evidence. Finally, schools are required to communicate their nondiscrimination policies and procedures to all students, employees and other participants in their education programs so that students and families understand their rights.
