Wage and Hour Archives

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.

Minnesota’s 2023 Legislative Session Brings Major Changes to Minnesota Employment Law

Gov. Tim Walz has signed or is expected to sign the Minnesota legislature’s Jobs and Economic Development and Labor Omnibus Budget Bill, bringing broad change to the Minnesota employment law landscape. Notably, the new law bans post-employment noncompete agreements in Minnesota, creates state-wide paid sick and safe time leave, prohibits restrictive franchise agreements, modifies wage disclosure protection law, provides additional protections for pregnant and nursing workers, prevents mandatory employer-sponsored meetings, and creates additional paystub requirements for construction workers, among other things. Gov. Walz signed the paid family and medical leave law, creating a new paid family and medical leave program funded by employer and employee payroll taxes and providing up to 12 weeks of paid leave in a single benefit year for an employee’s own serious health condition and up to 12 weeks of paid leave in a single benefit year for bonding, safety leave or family care, with a cap of no more than 20 weeks of total combined leave in any single benefit year. The Minnesota legislature also ended its 2023 session after passing a recreational cannabis law, amending the state’s drug and alcohol testing laws following the legalization of recreational marijuana, which is anticipated to be signed into law by Gov. Walz this week.

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California Pay Data Reports Due May 10, 2023

On May 10, 2023, employers must submit their pay data reports to the California Civil Rights Department (CRD). As previously reported here, Senate Bill 1162 amended Labor Code section 432.3 and Government Code section 12999 as part of California’s ongoing efforts to promote workplace pay transparency as a means to combat pay discrimination. Employers are required to comply annually with the obligation to not only report data for their W-2 employees, but also the new obligation to compile and report data for workers supplied by their labor contractors that are either working at, or assigned to, California locations.

Which employers must report?

Private employers with 100 or more employees (with at least one employee based in California) must file a “Payroll Employee Report.” New in 2023, all private employers with 100 or more workers hired through labor contractors in the prior calendar year (with at least one worker based in California) must file a “Labor Contactor Employee Report.”

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