Employment laws change frequently and we want to make sure our clients are keeping up with legal developments that could impact them. Below we’ve summarized the most important changes in the states where most of our clients’ employees are concentrated.?
These updates are for informational purposes only and do not constitute legal advice. You should always reach out to us for support and counsel that is tailored to the particular circumstances of your company, including its size, location, and business.?
Please reach out to Brie ([email protected]) with any questions about these changes and action you need to take.?
- Federal Minimum Salary Increase:?
- Effective July 1, 2024, the salary threshold for exempt employees - those who are not eligible to receive overtime - will increase to $43,888 annually. It will increase again on January 1, 2025 to $58,656 annually.?
- Action Items: Employers should review exempt employees' annual salaries and determine if there are any employees who fall under the new thresholds. For these individuals, the company must either raise their salary to maintain their exempt status, or classify them as non-exempt and notify them of their eligibility to earn overtime.? Many states (including New York and California) have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. If state law is more protective than Federal (i.e., requires a higher exempt salary amount), then state law should be followed.?
- FTC Ban on Non-competes?
- The noncompete ban is scheduled to take effect on September 4, 2024 and would render all non-competes for current, former, and future employees void, with a few narrow exceptions. The FTC’s reasoning for the non-compete ban is based on the reasoning that non-competes unlawfully stifle competition and depress wages, and that banning non-competes would encourage competition, innovation, and increased wages.?
- Earlier this month, a federal court temporarily enjoined the ruling from taking effect, but only for the specific plaintiffs in the case (a tax software provider and the US Chamber of Commerce). The court said they will issue a permanent ruling by the end of August.
- Action Items: Employers will need to revise their offer letters and employment documents to potentially remove non-compete provisions for incoming employees. Employers should review existing employees' documents to determine which agreements will remain in effect once the ban takes effect and create a communication plan to notify employees of which provisions are void and which are still effective once the ban is effective. It is important to note, there are certain exceptions for existing agreements with “senior executives” and for non-competes entered into as part of the bona fide sale of a business.
- California Employers Must Provide Leave for Reproductive Loss?
- Effective 1/1/2024, eligible employees can take up to five days of leave following a reproductive loss event (a failed adoption or surrogacy, a miscarriage or stillbirth, or an unsuccessful assisted reproduction). The leave must be completed within three months after the event. In the event of multiple reproductive loss events within a 12-month period, they can take up to 20 total days of leave within a 12-month period.
- Action Item: Employers should make sure this new basis for leave is specifically referenced in their employee handbook or policy manual.?
- California Requires Workplace Violence Prevention Training
- Employers are required to develop and train employees on a workplace violence prevention plan. Training must be completed by July 1, 2024 and for all new employees as they are hired.?
- The law does not apply to (i) employees who work remotely 100% of the time or (ii) places of employment with less than 10 employees working there at any time, if the workplace is not accessible to the public.?
- Action Item: Determine if this applies to your workplace and if so, implement a Workplace Violence Prevention Plan and train employees accordingly.?
- Colorado Employers May Not Ask About Age in Hiring
- Effective July 1, 2024, the Equal Pay for Equal Work Act prohibits employers from seeking to learn an employee's age during the application and interview process.?
- Action Items: Update any application materials that contain questions that would reveal an employee's age. Train managers not to ask applicants any questions that could reveal their age. For example, do not ask applicants for their date of birth, dates of attendance/graduation at a school, or other similar inquiries that would disclose age. The employer may still request additional application materials, such as school transcripts, but must notify applicants that they may redact age-related information prior to submission.
- Chicago Implements Paid Safe Leave
- Effective July 1, 2024, employees who work in Chicago are now eligible for 40 hours of paid safe leave, which can be used for a variety of reasons relating to domestic violence, sexual assault, or sex trafficking.?
- Action Item: Employers should update their policies to reflect that employees in Chicago (and other jurisdictions where applicable) are entitled to take up to 40 hours of paid safe leave.?
- Rhode Island Employers Subject to Criminal Penalties for Wage and Hour Violations
- Effective January 1, 2024, employers that knowingly and willfully violate wage and hour laws may be convicted of a criminal felony. An employer who violates the wage and hour laws may be criminally prosecuted and face imprisonment for up to three years and/or a fine of up to $5,000.?
- Action Item: Employers should review their practices for payment of wages and review independent contractors to determine if any contractors are misclassified.
- NYC Worker Bill of Rights
- Effective July 1, 2024, all New York City employers (any employer with at least one employee who primarily works within New York City) must provide their employees with a copy of the New York City Worker Bill of Rights poster. Employers who fail to comply with these requirements face civil penalties, which can escalate for repeated violations.
- Action Item: Make arrangements to distribute the notice to all employees and build into your onboarding process.?
