Honigman LLP’s Post

For all the employers of exempt workers out there, now is the time to figure out whether you need to increase salaries or revise their classifications under the FLSA. The $43,888 yearly salary level takes effect on July 1--and while there's a chance that a court pushes the effective date, putting a plan for compliance together today is a smart move, even if you wait to roll it out! #employment #labor #FLSA #FairLaborStandardsAct #exemptstatus #salarybasis #FLSAaudit #whitecollarexemptions

The recently ruled white collar threshold has been challenged as the July 1 effective date approaches. The State of Texas and a coalition of business organizations have filed two separate legal challenges seeking to block the U.S. Department of Labor’s rule increasing the requisite salary level for the “white collar” exemptions from the federal Fair Labor Standards Act’s overtime rules. Click below to learn more! #Honigman #Labor #DOL

🚨 Legal Update: Federal Court Issues Partial Injunction to the Department of Labor's Salary Basis Rule... The DOL's new overtime rule, effective July 1, 2024, faced its first legal challenge, resulting in a narrow injunction by Judge Sean D. Jordan. This injunction only applies to State of Texas employees but may influence broader enforcement issues. Stay informed with our legal update by Erik Eisenmann, AJ Weissler, Scott Meyers, and Sarah Hamill: https://lnkd.in/gstN-kdC #OvertimeRule #LegalUpdate #EmploymentLaw

ALERT | This week the Wage and Hour Division of the DOL announced its Final Rule increasing salary thresholds for the Executive, Administrative, and Professional exemptions from overtime pay requirements under the Fair Labor Standards Act, as well as for the Highly Compensated Employee exemption. Read more in the latest alert by Brad Harvey: https://bit.ly/44dllf0. #FLSA #DOL #WageHourLaw

On June 28, 2024, a federal court in Texas enjoined the USDOL from enforcing its final rule increasing the salary threshold for the white collar overtime exemptions. The decision, while limited only to employees of the State of Texas, increases the chances that other legal challenges regarding the USDOL’s ability to enforce the final rule against private employers will be successful.  Saul Ewing LLP attorneys Jason Tremblay and Alex Reich summarize the decision in this WISE Blog: https://lnkd.in/e4u6HGBi

On Jan. 10, 2024, the U.S. Department of Labor (DOL) published its final rule (effective March 11) on distinguishing employees from independent contractors for purposes of minimum wage and overtime pay under the federal Fair Labor Standards Act (FLSA). By narrowing the scope of who is and is not a “contractor” under a new legal test, the final rule will have a significant impact on the estimated 59 million people in the United States who perform “1099 work” – and on employer budgets. Under the new rule, many workers currently treated as contractors will have to be reclassified as employees and, going forward, it will be more difficult to engage workers as independent contractors.

Employers with workers subject to the FLSA’s white-collar overtime exemptions should know about the Fifth Circuit’s latest ruling.   Yesterday, the appeals court upheld the U.S. Department of Labor's authority to impose minimum salary requirements for these exemptions. Although related to a 2019 increase, this ruling could impact the legal challenges to the increase that took effect in July.   The latest increase raised the minimum salary for employees meeting the white-collar exemption from $684 per week ($35,568 annually) to $844 per week ($43,888 annually), with another increase to $1,128 per week ($58,656 annually) on Jan. 1, 2025.   Phelps counsel Mark Fijman breaks down the court’s reasoning and what this could change for employers as they review affected employees’ salaries and classifications in our latest labor and employment alert. Read more here >> https://lnkd.in/dktHTffF

During a webinar on new federal labor and employment guidelines, Dinsmore attorneys Brian J. Moore and Esha Simon provided a comprehensive overview of three recent developments in the law:   ▶ Department Of Labor’s Rule on Overtime Exemptions (effective July 1, 2024) ▶ Department Of Labor’s Rule on Independent Contractors (effective March 11, 2024) ▶ Federal Trade Commission’s Rule Banning Most Non-Compete Agreements   Although the non-compete ban will not take effect until September of 2024, it is important for employers to start reviewing the new policy now to ensure compliance by the fall.   Watch below for a recap. You can find recent legal alerts on each development in the comment section.

Two major changes to employment law worth noting. The impact on all industries and professions will be significant. The FTC approved its final rule that essentially bars and invalidates noncompete agreements with almost all employees. There are some limited exceptions for senior executives, but this is a big change that will likely face some legal challenges. Without legal action or stay, the rule will go into effect within 120 days of its publication. The DOL announced its updated federal overtime rule, which raises the salary threshold for several exemptions by nearly 65%, up to $1,128/week (versus the current $685/week). Employers will be expected to comply as of January 1, 2025. If exempt employees are not receiving salaries of at least that level by then, they could lose their exemptions and become entitled to overtime.

Stage two of the Department of Labor’s (DOL) rule increasing the salary threshold for “white collar” employee exemptions is fast approaching. Employers have already weathered the first jump. On July 1 of this year, the minimum salary threshold for the executive, administrative, and professional exemptions from overtime pay requirements under the Fair Labor Standards Act (FLSA) rose from $684 per week ($35,568 annually) to $844 per week ($43,888 annually), and the minimum salary threshold for the “highly compensated” employee exemption rose from $107,432 per year to $132,964. The second hurdle is on the horizon. On January 1, 2025, the minimum salary threshold for the executive, administrative, and professional exemptions will rise again, from $844 per week to $1,128 per week ($58,656 annually), and, for highly compensated employees, will increase from $132,964 to $151,164 per year. As of this date, no court has stepped in to prevent this significant impending change.