Labor & Employment Law Update

The Federal Trade Commission (FTC) voted 3-2 on April 23 to issue its final noncompete rule.  The Rule becomes effective in 120 days. However, it already has been challenged in federal court in the State of Texas, and more suits are anticipated. There are serious concerns as to whether the FTC has the authority to regulate this area of the law.  

On April 23, 2024, the United States Department of Labor (DOL) announced its final rule, amending the minimum salary levels necessary for employees to be considered exempt from the overtime requirements under the Fair Labor Standards Act (FLSA) “White Collar” (executive, administrative, and professional) exemptions. The final rule is set to  take effect on July 1, 2024.

1. Higher Salary Threshold for OT Exempt Employees… The annualized salary level for anyone classified as exempt from OT pursuant to the FLSA’s white-collar exemptions (executive, administrative, professional) must be no less than $43,888 ($844/week) by July 1, 2024 and must then be no less than $58,656 ($1,128/week) by January 1, 2025.  Automatic escalators are now built into establishing minimum salary thresholds to meet the OT exemption for white-collar salary exempt workers.

On April 19, 2024, the Equal Employment Opportunity Commission (EEOC) published the final rule and interpretive guidance for implementation of the Pregnant Workers Fairness Act (PWFA). The final rule becomes effective June 18, 2024.

Join Julie Proscia and Sara Zorich on April 24 at 10 AM as they discuss the trends of these new pay transparency laws.

In August 2023, the US Department of Labor (DOL) announced a proposed rule that became final last week, giving employees the ability to designate essentially any third-party as their “authorized representative” during OSHA workplace safety inspections --- even union reps and community organizers. This rule goes into effect on May 31, 2024. 

As legalization of cannabis has spread, profits have grown in the 25 states that allow for the retail sale of cannabis for recreational use, and labor unions have found great opportunity for getting a lift from the cannabis industry -- no pun intended.  Eight of those 25 states have passed legislation that encourage or even require cannabis industry employers to enter into labor peace agreements (LPA), often referred to as “neutrality agreements,” with labor unions, as a condition of obtaining or renewing a cultivation or dispensary license.

The National Labor Relations Board (NLRB) issued a controversial rule change to its longstanding “joint employer rule” in October of 2023, which dramatically lowered the thresholds by which a company could be deemed jointly liable and responsible under the National Labor Relations Act (NLRA) for another company’s unfair labor practices or collective bargaining obligations. In effect, the new rule could make unrelated, separate companies jointly responsible for violations of another employer under the NLRA.

The Illinois’ Genetic Information Privacy Act (“GIPA”) has been Illinois law for over twenty years. Yet, only in the last year or two has there been an explosion of lawsuits being filed against companies in various industries, all alleging violations of the statute. 

CAL/OSHA recently issued guidance on its Workplace Violence Prevention mandates that were created and implemented on September 30, 2023 when Governor Newsom signed Senate Bill 553 (SB 553) into law and which go into effect on July 1, 2024.