FLSA

DOL’s 2024 Rule Increasing Salary Thresholds for Overtime Exemptions Struck Down.

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On November 15, 2024, a Texas federal district court vacated an April 2024 final rule issued by the U.S. Department of Labor (DOL), which had increased the salary thresholds for exemptions from federal overtime requirements under the Fair Labor Standards Act (FLSA). Significantly, the court’s ruling struck down the DOL’s rule on a nationwide basis. On November 26, 2024, the DOL filed a notice of appeal of the court’s decision. For now, however, the DOL’s April 2024 rule does not apply. Notably, it is uncertain whether the incoming administration will even continue moving forward with the DOL’s appeal. As a …

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Checking In On The FTC’s Non-Compete “Ban”

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On October 18, 2024, the Federal Trade Commission (FTC) initiated an appeal with the U.S. Court of Appeals for the Fifth Circuit, contesting the ruling issued by a Texas district court on August 20 in Ryan, LLC v. FTC, which blocked the FTC’s rule banning non-competes. As it stands, however, the Texas district court’s decision blocking the FTC’s rule from going into effect remains operative. A timeline for that appeal process has not yet been set. In the meantime, the result of the recent Presidential election may mean a change in leadership at the FTC. It is possible (even likely) …

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FTC Rule Banning Non-Competes Vacated By Texas Court

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The Federal Trade Commission (FTC) Rule banning nearly all post-employment non-compete agreements has been vacated, so will not be going into effect on September 4, 2024. On August 20, 2024, the U.S District Court for the Northern District of Texas in Ryan, LLC v. FTC issued an Order on a Motion for Summary Judgment in which the Court vacated the FTC Rule. Specifically, the Court states: “The Court sets aside the Non-Compete Rule. Consequently, the Rule shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter.” This decision provides welcome clarity in …

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DOL Issues Guidance On Artificial Intelligence In Workplace

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On April 29, the Department of Labor’s Wage and Hour Division (WHD) issued Field Assistance Bulletin No. 2024-1 on “Artificial Intelligence and Automated Systems in the Workplace Under the Fair Labor Standards Act and Other Federal Labor Standards.”  The bulletin provides helpful guidance to employers who are presently using or considering using “artificial intelligence” or “AI” in the workplace to assist with managing employees. Likewise, employees should be aware of how the use of AI or other technologies may affect their rights in the workplace.    This guidance highlights the fact that employers’ legal obligations and responsibilities with respect to their …

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DOL Issues Final Rule Increasing Salary Thresholds for FLSA Exemptions

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On April 23, 2024, the U.S. Department of Labor (DOL) released its anticipated final rule impacting annual salary-level thresholds for exemptions to overtime requirements pursuant to the Fair Labor Standards Act (FLSA). In addition to increasing applicable earnings thresholds, the final rule also introduces a mechanism for automatically updating those thresholds on a going forward basis every three years. Presently, the salary threshold under the FLSA for executive, administrative, and professional employees is $684 per week, which annualizes to $35,568 per year. The threshold for highly compensated employees under the FLSA is currently $107,432 per year. Effective July 1, 2024, …

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U.S. Department of Labor Issues Final Rule on Independent Contractor Classification under the FLSA

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In January 2024, the Department of Labor (DOL) published a new final rule, effective March 11, 2024, revising the criteria for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The final rule rescinds the DOL’s rule issued in 2021, which emphasized two “core factors” as being potentially determinative of the proper classification. Those two “core factors” include (1) the nature and degree of the worker’s control over the work, and (2) the worker’s opportunity for profit. The new rule returns to a totality-of-the-circumstances analysis that was applied prior to the …

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