Managing Politics in the Workplace in an Election Year
Political discussions of any kind can cause stress for employees and employers alike. But in an election year, companies need to know their legal responsibilities, including requirements to notify employees of their right to leave for voting in some states.
Top Questions to Ask When Looking for a Benefits Broker to Partner With
Choosing the right health insurance broker for small and medium-sized business owners is essential, but it’s also a difficult task. It’s why we provided a detailed breakdown of how to assess services and ask the right questions to help business owners find the perfect benefits brokers for their business.
Why You Should Reevaluate Your Non-Compete Language
The FTC ruling was almost immediately challenged in court by Ryan LLC, the U.S. Chamber of Commerce, and a few other entities. On Wednesday, July 3, 2024, the U.S. District Court for the Northern District of Texas granted a preliminary injunction against the FTC for enforcing its non-compete rule.
However, the injunction was only granted on behalf of the plaintiffs in that case. Therefore, nationwide, the rule is still slated to go into effect on September 4, 2024. There is an additional case pending before another federal court which may result in a nationwide injunction. However, no ruling has been made in that case.
Evaluate your non-competes and other agreements that may contain non-compete language to determine your responsibilities should the ban go into effect. Contact us to learn how we can help your business remain compliant with legislative updates and all labor laws.
Additional 2024 Mid-Year Minimum Wage Updates
Stay in the know about the recently updated minimum wage requirements. For quick reference, the increases effective 7/1/2024 are as follows:
- Alameda, CAincreased to $17.00
- Berkeley, CAincreased to $18.67
- Emeryville, CAincreased to $19.36
- Fremont, CAincreased to $17.30
- Malibu, CA increased to $17.27
- Milpitas, CAincreased to $17.70
- Los Angeles, CA increased to $17.28
- Los Angeles County increased to $17.27
- Pasadena, CA increased to $17.50
- San Francisco, CAincreased to $18.67
- Santa Monica, CA increased to $17.27
- Chicago, IL (4 or more employees)increased to $16.20
- Chicago, IL (Tipped employees)increased to $11.02
- Montgomery County, MD (≥ 51 employees)increased to $17.15
- Montgomery County, MD (11 – 15 employees)increased to $15.50
- St Paul, MN(101 – 10,000 employees) increased to $15.57
- St Paul, MN (6 – 100 employees)increased to $14.00
- St Paul, MN (≤ 5 employees) increased to $12.25
- Nevadaincreased to $12.00
- Oregonincreased to $14.70
- Oregon (Urban)increased to $15.95
- Oregon (Non-Urban)increased to $13.70
- District of Columbiaincreased to $17.50
- Puerto Ricoincreased to $10.50
Keep up with these increases and implement payroll changes effectively by partnering with PrestigePEO today.
What to Know as the Supreme Court Overturns a Decades-Old Decision
Several monumental cases have been pending in front of the Supreme Court of the United States this term, one of which has been closely watched as potentially changing the regulatory framework upon which policy decisions are made and enforced in this country.
On Friday, June 28, 2024, the Supreme Court of the United States published its ruling on what has become known as the Chevron doctrine, overturning the 40-year-old landmark decision that required courts to give deference to a federal agency’s interpretation of a Congressional statute, when that statute was challenged as nebulous or in need of further interpretation. This new ruling now requires that courts “exercise their independent judgment when deciding whether an agency has acted within its statutory authority.”
The ruling now allows for any agency action or regulation that is challenged in court to be decided by judicial interpretation as to whether an agency’s authority has been properly delegated by statute, and if ambiguous, the courts will decide if the agency acted within its statutory authority instead of giving immediate deference to the agency’s interpretation of a law.
The burning question on every employer’s mind is how this ruling will impact their operations. The answer is significant. This new ruling will impact challenges to federal agency authority and rulemaking across all agencies, including those that affect the daily employee and employer relationships. These agencies include the Department of Labor, the National Labor Relations Board, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the Federal Trade Commission, the Office of Federal Contract Compliance, and the Department of Homeland Security, among others. Experts agree that the future is complicated as courts are now empowered to strike down agency rules and regulations much easier, which will create a patchwork of various new rules across states. This is likely to impact every imaginable federal agency rule, including but not limited to DOL wage and hour rules, overtime rules, salary threshold exemptions, EEOC’s impact on discrimination and harassment compliance and litigation measures, OSHA regulations related to workplace safety, and many others.
An immediate example of how this decision will impact employers comes from a June 30, 2024, district court ruling, wherein the State of Texas, as a governmental employer, previously challenged the Department of Labor’s new salary exempt threshold that went into effect on Monday, July 1, 2024. The district court temporarily suspended the rule as it applies to The State of Texas as an employer, finding that the State does not have to comply with the new overtime rules. The district court also agreedTexas will likely win its underlying legal challenge that the Department of Labor exceeded its rulemaking authority by requiring the increases to salary thresholds. This temporary suspension does not apply to all employers, including private employers in Texas, but only to The State of Texas as an employer, allowing Texas to avoid any wage increases to state employees while the underlying lawsuit remains pending.
Given the anticipated increase in litigation, employers must continue complying with all federal rules and regulations, including the DOL’s new salary threshold requirements, until further notice of applicable court rulings.
Make sure you follow all legislative updates and implement compliances best practices by partnering with a knowledgeable PEO.
Reminder: What to Know About the DOL’s New Salary Thresholds
On April 23, 2024, the U.S. Department of Labor (DOL) finalized the new salary requirements for workers considered “white-collar” salary exempt and highly compensated employees, with the first effective date of July 1, 2024. Employers nationwide should be reviewing their exempt employees’ salaries for compliance now if they have not already done so.
Salary exempt employees are workers who are otherwise exempt from the Fair Labor Standards Act’s minimum wage and overtime protections which require workers to be paid an overtime premium of 1.5 times their regular hourly rate of pay for all hours worked over 40 in a work week.
The exemption from this overtime payment applies to those workers that are employed in the bona fide executive, administrative or professional (EAP) capacity, otherwise known as the “white-collar” exemptions as well as the highly compensated employee (HCE) exemption.
New Thresholds and Deadlines
The DOL’s incrementally imposed new regulations will raise the salary threshold for workers classified as EAP exempt beginning on July 1, 2024, with another increase scheduled for January 1, 2025. The initial increased salary threshold is to $844 a week ($43,888 annualized) no later than July 1, 2024, with the second increase to $1,128 ($58,656 annualized) by January 1, 2025.
The HCE exemption will also see an incremental increase, with the first one to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025. Thereafter, all salary exempt classifications will automatically be updated and increase every three years beginning July 1, 2027, to reflect current earnings data and will be determined by applying to available data the methodology used to set the salary level in effect at the time of the update.
Although these new regulations have already faced multiple legal challenges, employers should remain vigilant about wage and hour compliance efforts.
Get regular updates and insights about salary threshold changes by working with PrestigePEO.
