Hot U.S. News - HR | Business
Are you staying on top of your HR/business compliance strategies?
These two news stories and my employer strategies are a must-read.
🚫 Most Noncompetes Banned Nationwide
On Tuesday, April 23, 2024, the U.S. Federal Trade Commission (FTC) approved banning most new noncompete clauses in employment contracts—a ruling affecting millions of workers. The ruling makes noncompetes unenforceable except for those covering senior executives defined as a “policy-making position” worker earning more than $151,164 annually. The ruling goes into effect 120 days following publication in the Federal Register. However, legal challenges could delay the ruling.⏳
Check out the FTC’s announcement here.
💸 Minimum Salary Increased for Overtime Exemption
The U.S. Department of Labor (DOL) announced a final ruling to increase the salary threshold exemption for overtime by +60%. The ruling has a two-part approach with the first increase taking effect from July 1, 2024, where the threshold salary will rise from $35,568/year ($684/week) to $43,888/year ($844/week), and the second increase will take effect on January 1, 2025, when the threshold salary will increase to $58,656/year ($1,128/week). In addition, the Highly Compensated Employee exemption will increase to $132,964/year on July 1, 2024, and then to $151,164/year on January 1, 2025. Employees must be paid at least the minimum threshold salary and meet specific duties tests to qualify for the salary exemption. If they do not meet these requirements, they must be paid 1.5 times their regular hourly rate for any hours worked beyond 40 in a workweek. However, legal challenges could delay the ruling. ⏳
Check out the DOL ruling here.
✨ Employer Strategies ✨
🤝 Partner with HR to develop your customized strategy, which could include tapping into legal.
🔊 Communicate with employees openly and frequently (they’re likely already talking about this).
🤔 Noncompete Ban: Assess who qualifies as a “senior executive” subject to the noncompete agreement and who doesn’t. Determine what, if anything, needs to be changed internally or updated to protect the company while complying with the law. Evaluate and update employee retention and engagement strategies to retain team members and ensure continued success.
💸 Salary Exemption Threshold: Evaluate the available budget options, such as paying for overtime or adjusting salaries. Decide which roles, if any, will need to be reclassified from salaried (exempt) and provide training for the reclassified employees. Determine the effective date of any change(s) and align it with the DOL date(s) while also assessing whether any modifications need to be made to the compensation ranges.
👀 Keep an eye on both rulings as they could evolve.
🌟Retaining top-performing team members is a key to company success. Employers who prioritize reviewing their policies and retention strategies can protect their company and create a positive work environment that inspires their team members. For a thoughtful, innovative, and people-centered approach to your HR and achieving these goals, please contact me at rachel@rwgordonconsulting.com for a free consultation. 🌟
