Hurry Up (But Also Wait): The DOL’s Final Rule for Overtime Exemptions and Likely Legal Challenges

Employers should review their existing exempt workers’ salaries and identify whether any increases may need to be made to comply with the rule’s increases. They should also, though, keep an eye on any challenges that are filed, and be prepared to adjust and adapt as needed.

To view the full alert, visit the Faegre Drinker website.

Illinois Federal Court Temporarily Enjoins Key Amendment to the Illinois Day and Temporary Labor Services Act

In August 2023, Illinois Governor Pritzker signed sweeping amendments to the Illinois Day and Temporary Labor Services Act (DTLSA) that imposed new obligations on both the day and temporary labor service agencies employing covered laborers and the clients to whom those agencies contract for temporary labor. Recently, one of those amendments (indeed the key amendment) was temporarily enjoined by an Illinois federal court, calling into question the future impact such amendments will have on the temporary labor market.

As way of background, the 2023 amendments to the DTLSA included, most significantly, a requirement that laborers assigned to a client for more than 90 calendar days (in any 12-month period, whether consecutively or intermittently) must be paid, by the temporary agency, at least the rate of pay and equivalent benefits as the lowest-paid directly hired employee of the client with the same level of seniority at the client and performing the same or substantially similar work. Agencies may alternatively pay “the hourly cash equivalent of the actual cost benefits” in lieu of providing equivalent benefits.  The Illinois Department of Labor (IDOL) defined benefits as including health care, vision, dental, life insurance, retirement, leave, other similar employee benefits, and other employee benefits as required by State and federal law.  The pay and equivalent benefits obligation was one of several obligations placed on covered agencies and the clients with whom they contract. These amendments were due to take effect immediately and the IDOL passed emergency rules to provide guidance to employers on compliance.  However, in September 2023 the Joint Committee on Administrative Rules (JCAR) objected to those rules. And then in November 2023, Governor Pritzker signed a new amendment to the DTLSA to delay the effective date of these new obligations until April 1, 2024.

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Don’t Labor Under New Laws

California is a state of perpetual motion when it comes to new and evolving employer regulations. While most of the 305 bills introduced in the last legislative session mentioning “employer” did not pass the Legislature, many did and were signed into law by Gov. Gavin Newsom. With that comes more rules and risks for employers dealing with non-compete agreements, anti-discrimination, Labor Code enforcement, workplace safety, leaves of absence and a plethora of minimum wage increases.

To borrow from Kelly Clarkson, “… what doesn’t kill you makes you stronger, stand a little taller …”

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State & Local Employment Law Developments: Q4 2023

As we witnessed in the first, second and third quarters of 2023, state and local governments continued to increase workplace regulations in the fourth quarter of the year. Read our update for an overview of recent and upcoming legislative developments to help you and your organization stay in compliance.

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U.S. Supreme Court to Clarify Whistleblower Statutes Regarding Employee’s Burden of Proof

The U.S. Supreme Court will decide in Murray v. UBS Securities, LLC whether a whistleblower must prove that an employer acted with “retaliatory intent” to be protected under the Sarbanes-Oxley Act. The Court’s decision will settle a split between the circuit courts, which will impact how employers defend against Sarbanes-Oxley Act retaliation claims.

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