Laborsphere

The Post-Chevron World: 2024 Overtime EAP Exemption Rule Vacated

The Eastern District of Texas recently vacated the 2024 EAP Exemption to the Overtime Rule. That means that the 2019 salary threshold of $684/week for EAP employees and annual salary threshold of $107,432 for highly compensated employees are now in effect again. Employers no longer need to plan for the additional automatic salary threshold increase that was scheduled to be effective on January 1, 2025, and are no longer required to adhere to the previous increase that went into effect on July 1, 2024.

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Responding to the Vacated FLSA Salary Threshold Rule

Employers should consider the employee relations impact of making any changes, even if permissible, to previously implemented or announced salary increases to maintain the exemption from federal overtime and minimum wage law. Employers may also be required to provide advance notice of any wage change under applicable state law. In this second alert, we answer some FAQs.

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New Jersey Adopts Salary and Benefit Disclosure Requirements for New Job Postings, Promotions and Transfers

New Jersey Joins a Growing List of States Requiring Greater Pay Transparency

On November 18, 2024, New Jersey Governor Phil Murphy signed Senate Bill 2310 (S2310) into law requiring employers to provide notice of promotion opportunities to affected employees and disclose certain compensation and benefit information in postings for new job openings and transfer opportunities. The law will go into effect on June 1, 2025. New Jersey joins a growing list of states requiring pay transparency, including California, Colorado, Connecticut, Hawaii, Illinois, Massachusetts, Maryland, Nevada, New York, Rhode Island and Washington.

How Did We Get Here?

A version of the bill (A3937, 2022-2023) was originally introduced in the General Assembly during the legislature’s last session and received bipartisan support in the Assembly Consumer Affairs Committee. After the committee made substantial revisions, the bill ultimately died in the Assembly Appropriations Committee. The Senate companion bill (S3663, 2022-2023) expired in the Senate Labor Committee without a vote.

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UK Government Plans to Introduce the ‘Right to Switch Off’

The UK government has recently indicated that it intends to introduce the “right to switch off” for workers. This follows a global trend of similar legislation in other jurisdictions. As outlined in our earlier post on LaborSphere, a similar right has recently taken effect in Australia and is already standard in many European countries.

In its “Plan to Make Work Pay,” the government states that it intends to follow models such as those that are already in place in Ireland and Belgium, “giving workers and employers the opportunity to have constructive conversations and work together on bespoke workplace policies or contractual terms that benefit both parties.”

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Los Angeles County Fair Chance Ordinance – Summary of New Requirements

As of September 3, 2024, employers in the unincorporated areas of Los Angeles County must comply with the Los Angeles County Fair Chance Ordinance (FCO), which places restrictions on criminal background screening beyond those required by California’s Fair Chance Act (Fair Chance Act).

Background – the Fair Chance Act

The Fair Chance Act (also known as “Ban the Box” law) bans employers with five or more employees from including any question on a job application that asks about the applicant’s criminal conviction history. Covered employers also may not inquire about or consider an applicant’s criminal history until the applicant has received a conditional job offer. If an employer does conduct a lawful background check and decides to rescind an offer based on an applicant’s conviction history, the employer must (1) make an individualized assessment of whether the applicant’s conviction history relates to the specific job duties; (2) notify the applicant in writing of the preliminary decision; (3) grant the applicant at least five business days to respond before making a final decision; and (4) give the applicant an additional five business days to dispute the accuracy of their criminal history record and to seek evidence to support that contention. The Fair Chance Act also bans covered employers from considering certain convictions, including those that have been sealed, dismissed or expunged, and generally does not allow employers to consider arrests that did not result in convictions (subject to certain exceptions). Additional information published by the California Civil Rights Department regarding the Fair Chance Act can be found online.
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Texas Court Sets Aside FTC Noncompete Rule, With Nationwide Effect

On August 20, 2024, the U.S. District Court for the Northern District of Texas issued a memorandum opinion and order holding that the Federal Trade Commission rule banning post-employment noncompetes is “unlawful” and therefore must be “set aside.” This alert covers what employers need to know.

For the full alert, visit the Faegre Drinker website.