Wage and Hour Archives

In 11th Hour Move, Michigan Legislature Adopts Amended Minimum Wage and Earned Sick and Safe Time Requirements

After years of uncertainty and a roller coaster of shifting requirements, Michigan employers will have clear guidance and finality on their minimum wage and paid sick and safe leave obligations with the enactment of these latest amendments. Even still, many Michigan employers will need to adjust their policies to comply with ESTA, and Michigan employers should continue to be mindful of this new landscape and further guidance from the Michigan Department of Labor and Economic Opportunity.

View the full article on the Faegre Drinker website.

Mexico’s 12 Percent Wage Hike Comes Into Effect January 1, 2025

The right to a minimum wage sufficient to meet the basic needs of workers is enshrined in the Mexican Constitution. Minimum wages in the country are set on a daily basis, ensuring workers receive a set amount for each day worked. On January 1, 2025, the Mexican minimum wage, which is set by the National Minimum Wage Commission (Comisión Nacional de los Salarios Mínimos or CONASAMI), received a considerable 12 percent increase nationwide.

With this increase, the nationwide minimum wage is now MXN $278.80 per day (or approximately USD $13.76) and the minimum wage for the Free Zone of the Northern Border (Zona Libre de la Frontera Norte or ZLFN), the area along the northern border of Mexico, which encompasses the states of Baja California, Sonora, Chihuahua, Coahuila, Nuevo León and Tamaulipas, is now MXN $419.88 per day (or approximately USD $20.72). The 12 percent increase will also apply to workers in 61 professions and trades who are entitled to special professional minimum wage. Specific professions impacted include construction workers, cashiers, agricultural laborers, domestic workers, and masons and bulldozer operators.

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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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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.