
As the year winds down, organizations, media companies, and various services are busy putting together their annual “best of” lists across a range of topics, from music and television to literature and dining experiences.
For those interested in the key changes in employment law that are on the horizon for 2024, here are four significant developments to keep an eye on.
Changes to Salary Thresholds Under the Fair Labor Standards Act
In April 2024, the Department of Labor (DOL) proposed a significant update to the salary threshold for overtime exemptions under the Fair Labor Standards Act (FLSA).
The intended increase would raise the salary cap for white-collar workers from $36,000 to $44,000 starting July 1, 2024.
Then, on January 1, 2025, that figure was set to rise further to $59,000.
There was also a plan to adjust the threshold for those deemed highly compensated to $151,164.
If implemented, these changes would have allowed more workers to qualify for overtime pay.
However, this proposal faced a significant setback.
A federal judge in Texas ruled against the DOL’s recommended changes on November 15, 2024, effectively reinstating the 2019 salary threshold rates.
Thus, the old exemption limits returned to $35,568 for white-collar employees and $107,432 for highly compensated workers, permitting businesses to retract salary increases they had perhaps already anticipated.
The FTC’s Regulation on Non-Compete Agreements
In a noteworthy move in May 2024, the Federal Trade Commission (FTC) took steps to ban non-compete clauses altogether, requiring employers to stop enforcing such agreements.
This ruling was set to take effect in September 2024, and the National Labor Relations Board signaled its willingness to work alongside the FTC to tackle the widespread use of non-compete contracts.
Yet, similar to the DOL’s fate regarding salary thresholds, the FTC’s initiative quickly fell into extended legal turmoil and is currently on hold.
As of October, the FTC’s appeal against a ruling that challenged its regulation is still pending, leaving the final outcome uncertain.
New Guidelines on the Pregnant Workers Fairness Act
The Pregnant Workers Fairness Act (PWFA) was designed to protect the rights of pregnant workers, especially relating to necessary accommodations in the workplace.
In April 2024, the Equal Employment Opportunity Commission (EEOC) released new guidance that became effective in June.
The EEOC clarified that employees might require accommodations even for temporary physical limitations, as long as there’s an intent to resume their full job functions later.
Importantly, the protections under the PWFA extend beyond pregnancy and childbirth issues; they also cover matters like lactation, nausea, abortion, and pre-eclampsia.
Despite facing initial legal challenges from a group of state attorneys general, these guidelines held strong.
Another landmark development came in June 2024 when the U.S. Supreme Court delivered a verdict in Loper Bright Enterprises v. Raimondo, which effectively dismantled the Chevron doctrine that had stood for four decades.
This doctrine previously required courts to defer to federal agencies’ reasonable interpretations of unclear laws.
With this change, federal courts are now expected to scrutinize agency regulations more closely than before.
The loss of Chevron deference may profoundly alter how key federal labor organizations, such as the National Labor Relations Board (NLRB), the DOL, and the FTC operate moving forward.
As political winds shift with new presidential administrations, labor and employment laws are likely to evolve.
Employers should remain proactive and informed about these significant 2024 developments while preparing for the changes that 2025 may bring.
Source: Natlawreview