Each month, Optimum Employer Solutions gathers the latest updates and changes to federal and state employment law. Read on to learn how these changes may affect you, and how Optimum can help you ensure compliance.
HR Question
Question: How can an employee claim harassment when offensive jokes or other conduct are not directed specifically at them?
Read on to learn how employers are liable in these situations and the appropriate steps to prevent and correct harassment in the workplace.
Federal/State Updates
Judge Throws Out DOL Rule Raising Salary Threshold
On Friday, November 15, 2024, the U.S. District Court for the Eastern District of Texas struck down and vacated the US Department of Labor’s (“DOL”) 2024 overtime rule (the “2024 Rule”) that raised the salary threshold for “white collar” exemptions. The 2024 Rule implemented a three-staged increase to raise the salary threshold from $684 per week to $844 per week effective July 1, 2024, and then to $1,128 per week effective January 1, 2025. Thereafter, it was scheduled to increase every three years, beginning in 2027.
The court ruled the DOL exceeded its statutory authority when it enacted the 2024 Rule because “the minimum salary level imposed by the 2024 Rule ‘effectively eliminates’ consideration of whether an employee performs ‘bona fide executive, administrative, or professional capacity’ duties in favor of what amounts to a salary-only test.”
The court’s ruling, which is effective nationwide, means that the scheduled January 1, 2025, increase to $1,128 will not go into effect. In vacating the 2024 Rule in its entirety, the court also negated the July 1, 2024, increase that had previously gone into effect. This means that the salary threshold for employees to be classified as exempt under the federal executive, administrative, or professional exemptions reverts to the pre-July 2024 threshold of $684 per week.
Whether the DOL will appeal this decision remains to be seen. With the change in presidential administrations coming in January, the DOL’s new leadership is likely to drop any challenge and let the court’s decision stand. If you’re an employer who increased your exempt employees’ salaries to comply with the July 2024 adjustment and are considering lowering these employees’ pay, we recommend consulting with counsel first. Employers are reminded that several jurisdictions have salary thresholds higher than what is required federally, including California, Colorado, and New York, among others; these are unaffected by this court ruling.
DOL Issued Guidance for Employers and Using AI in the Workplace
The US Department of Labor recently issued guidance on principles and best practices for using AI in the workplace. The publication expands on the topics listed below to provide employers with a roadmap for the development and use of AI:
If you currently use AI, or are thinking about using it to streamline HR, you are encouraged to review the DOL guidance, as well as guidance issued by the DOJ related to how AI can lead to disability discrimination, and that issued by the EEOC related to using AI for assessing job applicants and employees.
2025 Minimum Wage Updates
Please click HERE to find the minimum wage updates, by state and locality, that will be going into effect on January 1st, 2025. We have also provided links to the state sites for reference.
All employees working in these locations (including remote workers) will need to be increased to the new minimum wage amounts to be in compliance. Please note that, based on these new rates, the exempt salary threshold has also increased for several states.
Your Optimum HR Professional will be providing affected employers additional details, as well as a list of all employees impacted by these new rates, within the next several weeks.
You can find the minimum wage update list HERE.
EEOC Ramps Up Enforcement of Pregnancy Discrimination Under PWFA
Just months after issuing its final rule implementing the Pregnant Workers Fairness Act (PWFA), the U.S. Equal Employment Opportunity Commission (EEOC) has initiated multiple actions against employers for allegedly violating the PWFA. Read more here.
Must Read if You Use 3rd Party Vendor to Monitor Employees
The Consumer Financial Protection Bureau (CFPB) recently issued guidance that takes an aggressive position regarding the scope of the Fair Credit Reporting Act (FCRA) as covering certain employee monitoring and assessment tools used for hiring and to gauge employee productivity. This development affects virtually every employer using third-party vendors for employee screening, monitoring, or assessment. Read more here.
Indefinite Remote Work Isn’t Necessarily a Reasonable Accommodation
On October 17, 2024, the U.S. District Court for the District of Kansas entered summary judgment in favor of the Unified Government of Wyandotte County/Kansas City, Kansas, as representative of the Kansas City Board of Public Utilities (BPU) and against a former employee, Jill Ann Rogers, on her claims for harassment, discrimination, and failure to accommodate under the Americans with Disabilities Act (ADA). Read more here.
California
California Released PAGA FAQs
The California Department of Industrial Relations recently published updated Frequently Asked Questions related to the Private Attorneys General Act (“PAGA”) and the recent amendments that impact PAGA claims after June 19, 2024. Read more here.
Massachusetts
Massachusetts’ Earned Sick Time Law Now Covers Pregnancy Loss
As of Nov. 21, 2024, Massachusetts employees may use earned sick time to address physical and mental health needs following a pregnancy loss or failed assisted reproduction, adoption, or surrogacy under an amendment to the Massachusetts Earned Sick Time Law. Read more here.
Missouri
Missouri Voters Pass Ballot Measure for Sick and Safe Leave, Minimum Wage Increase
Missouri voters have approved a state ballot measure that will increase the state minimum wage starting in 2025 and provide employees in the state with paid sick and safe leave, becoming one of the latest to join the growing list of states with some form of earned paid sick time. Read more here.
New York
New York Amends Constitution to Expand Equal Protection
On November 6, 2024, New Yorkers across the state voted “yes” on the Equal Rights Amendment, commonly known as Proposition 1. The newly passed Equal Rights Amendment expands New Yorkers’ constitutional civil rights and codifies protections against discrimination in the state constitution. Read more here.
Each month, Optimum Employer Solutions gathers the latest updates and changes to federal and stateemployment law. Read below to learn how these changes may affect you, and how Optimum can help youensure compliance. HR QuestionQuestion: An employee has requested a four-week medical leave to have major surgery. Do we have to hold his job for…
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Continue Reading Each month, Optimum Employer Solutions gathers the latest updates and changes to federal and stateemployment law. Read below to learn how these changes may affect you, and how Optimum can help youensure compliance. Question of the Month Question: An employee called out a few days ago by leaving a message with some vague informationabout being…
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