We wanted to share with you some critical changes that have happened in the areas of employment law. We want to assure you we are here and on top of all of these. We will be working with you to review how these are impacting your team and any changes that need to be made.
DOL – threshold to qualify for Exempt level (Executive, Administrative and Professional exemptions), in addition to passing the responsibility test, has increased the salary threshold to $58,656 annually. If you have employees who are classified as exempt, but making less than this, you will have to reclassify them and pay them OT when eligible or increase their pay to above the threshold. This assumes they pass the responsibility test for Exempt in addition to the increased wages. This is effective July 1, 2024 with a twostep change. Exempt Changes:
- July 1, 2024 the threshold is $43,888
- Jan 1, 2025 the threshold is $58,656
- DOL – For highly compensation employees, the new increased threshold is $151,164.00
Highly Compensated Changes:
- July 1, 2024 is $132,96
- Jan 1, 2025 is $151,164
- FTC Bars Noncompete. It has voted to make all noncompetes invalid, unless covering Senior Level Executives. This change also requires all employers with current noncompetes to notify employees that the noncompete clauses are no longer in effect.
- Pregnant Workers Fairness ACT – requires employers with at least 15 employees or more to make accommodations if a person can perform the essential functions of the job. Goes into effect June 18, 2024. The law covers a non-exhaustive list of possible circumstances that fall within the broad definition of pregnancy, childbirth or related medical conditions.
We are happy to assist with an audit on your current positions that are classified as Exempt currently. We can assist with identifying those employees who now need to be classified as non-exempt our team will work with you on communication and time keeping options.
As always, we are here to support you and your growth!