Alexandra Schwartz, MBA’s Post

Many states and local jurisdictions require employers to provide advance notice about pay changes. Several of these laws specify the amount of notice required. For example, Missouri generally requires at least 30 days' notice before a reduction in pay. Some states require advance notice but don't specify how much time is required. Check your state and local law to ensure compliance. In the absence of a specific notice requirement, consider providing notice at least seven days before the change becomes effective.

NO MORE NON-COMPETES?! Yesterday (and shortly after DOL unveiled a new rule raising the minimum salary threshold to qualify for certain overtime exemptions under the Fair Labor Standards Act), the Federal Trade Commission (FTC) adopted a final rule that effectively prohibits the use of almost all non-compete clauses. Please check out this informative article on the topic, stay tuned for updates, and feel free to reach out to me or any of my Ogletree Deakins colleagues with any questions or concerns.

USDOL New Independent Contractor Rule Immediately Challenged in Court By Jacob Claveloux On January 10, 2024, the United States Department of Labor once again issued a new Rule regarding Independent Contractor status, after having their prior 2021 Rule blocked by a federal court in 2022. The new Rule (https://lnkd.in/gt-Sb-9d), like the 2021 version, is aimed at limiting the circumstances under which businesses can classify workers as independent contractors, rather than employees, with the Department stating that the “final rule will reduce the risk that employees are misclassified as independent contractors”. The Final Rule, unless overturned, would go into effect March 11, 2024.   The DOL’s new Rule is being seen as concerning to many of the same industries (including healthcare, construction, and transportation) that were troubled by the prior DOL rule. So, it is not surprising that some potentially affected companies including Uber, Lyft, the American Trucking Associations, and the Retail Industry Leaders Association, have already filed suit, before the same court that previously dismissed the DOL’s 2021 rule. That action https://lnkd.in/e9_ZWGcR), is being filed as a motion to lift the previously issued stay put in place by the Fifth Circuit Court of Appeals in the 2022 challenge and remand the case back to the District Court to consider the new DOL Rule in light of their prior holding overturning the 2021 Rule. The Coalition is asking the court to “act expeditiously” given the March 11 intended implementation.   This is not legal advice and is attorney advertising.

MAJOR CHANGE TO FLSA EXEMPTIONS Effective July 1, 2024 a new rule from the Department of Labor increases the minimum salary that employees must earn to be exempt under the Executive, Administrative, and Professional exemptions of the FLSA as follows: ·      As of July 1, 2024, the minimum salary earned by employees increases from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). ·      As of January 1, 2025 the minimum weekly salary will jump to $1,128 per week ($58,656 annually). ·      Beginning July 1, 2027 and every three years thereafter, the minimum salary will increase by amounts to be determined. The salary requirements of the Highly Paid Professional (HPP) exemption will also increase. The HPP minimum salary will escalate as follows: ·      As of July 1, 2024, the minimum salary earned by HPP employees will increase from $107,432 to $132,964 annually. ·      As of January 1, 2025 the minimum salary will increase to $151,164 annually. ·      Beginning July 1, 2027 and every three years thereafter, the minimum salary will increase by amounts to be determined. Legal arguments over exemptions are complex and expensive. Blogs pitching legal services can be annoying, but this is work that employers should do with their counsel. The DOL has posted information on these changes here:

Earlier this month, the DOL released new guidance on the employee vs independent contractor classification. This link will provide a few different articles with more information. From the Small Entity Compliance Guide; To analyze if a worker is an employee or independent contractor, the final rule provides six factors that businesses and workers should consider when analyzing the economic realities of the working relationship. These factors, described in the economic reality test of the final rule, are: (1) opportunity for profit or loss depending on managerial skill; (2) investments by the worker and the potential employer; (3) degree of permanence of the work relationship; (4) nature and degree of control; (5) extent to which the work performed is an integral part of the potential employer’s business; and (6) skill and initiative.

Harpst Becker Legal Update April 25, 2024 – FTC Scraps Noncompetes; DOL Hikes Exempt Employee Salary Amount Noncompete agreements have been a common tool in employment relationships, restricting employees from working for competitors or starting their own competing ventures after leaving a company. However, yesterday the Federal Trade Commission (FTC) issued a final rule that bans noncompete agreements for most workers, marking a significant shift in employment practices. Lawsuits have already been filed challenging this sweeping change, and there’s still a possibility that a court could block or delay the effective date. Employers can get ahead of deadlines by starting preparations now to ensure compliance with the new salary thresholds when (and if) they go into effect. For more information – visit our website: https://lnkd.in/eRqsVmg5

An excellent summary of the finalized DOL rules on employee vs. independent contractor. As a heads up, these rules take effect March 11, 2024 https://lnkd.in/e7iPsYuq

✋ Hold up, are you currently working for a staffing firm? Are you a 1099? If you replied "yes" to both, it's crucial for you to familiarize yourself with the Final Rule regarding independent contractor status (1099). Click the link below to learn more! At LGC, you never have to worry about not receiving pay, benefits, or support. You can trust that we will make sure you are covered so you can work when and how you want. #EmploymentLaw #IndependentContractors #EmployeeRights #1099 #LGCstaffingfirm

Were you confused about DOL's 2021 ruling regarding "employee" vs. "independent contractor"? Clarification is coming effective March 11, 2024. Does your business need help classifying your team legally? Let's talk! Schedule a discovery call with our team and learn what you might not know about FLSA and the upcoming changes. Here's an article regarding the new regulation and a link to schedule a call! https://bit.ly/39MS12q

The final rule for what classifies someone as a "contractor" is coming soon (but here's a sneak peek). On March 11th, you can expect the U.S. Department of Labor to enact a transformative final rule on this classification criteria. This article has an overview of the new rule. #IndependentContractors #gigwork