Labor & Employment Developments Blog

The Department of Labor (DOL) announced on April 23, 2024, a final rule that expands the compensation threshold for exemption eligibility under the Fair Labor Standards Act (FLSA). On July 1, 2024, most salaried workers who earn less than $43,888 per year will become eligible for overtime pay under the final rule, which increases the salary threshold from $35,568 to $43,888 per year. This threshold will increase again on January 1, 2025 to $58,656 per year.

Yesterday, the Federal Trade Commission (“FTC”) announced its long-anticipated final rule finding that the vast majority of non-compete agreements constitute unfair methods of competition, and are thus invalid. An estimated 30 million employees are covered by non-compete agreements, representing nearly one in five U.S. workers. Thus, this announced rule has the potential to significantly impact the labor market, as well as cause a shift in employers’ business strategies.

On April 15, 2024 the Equal Employment Opportunity Commission (EEOC) announced its finalized regulations of the Pregnant Workers Fairness Act (PWFA). Effective last year, the PWFA requires employers to provide reasonable accommodations to employees and applicants with known physical limitations related to pregnancy, childbirth, or related medical conditions. But while the law went into effect on June 27, 2023, the EEOC is just now announcing its final rule providing guidance as to how this law will be interpreted and administered.