With the state having just experienced the first heat wave this summer, employers are facing the heat to finish some of their preparations for new laws and regulations that are scheduled to take effect.
Here are three areas to think about:
- Paid Sick Days – Governor Lamont recently signed legislation greatly expanding the state’s current paid sick days law. Currently, it applies in both the public and private sector to certain jobs. The bill that Governor Lamont approved, will apply this law to nearly every occupation (not just retail and service jobs) though seasonal employees and some temporary workers are exempt, effective January 1, 2025.
This will apply to employers with 25 or more employees effective January 1, 2025, though this threshold for coverage goes down to 11 employees on January 1, 2026 and 1 employee starting on January 1, 2027.
I’ve previously covered this in a prior post but for Connecticut employers, it’s time to think about what this will mean for your paid time off policies and procedures. - FLSA Exemptions – The Department of Labor’s Final Rule increasing the salary threshold for certain white collar exempt workers is scheduled to go into effect July 1, 2024. This means that effective July 1, 2024, the salary threshold (that is, the minimum salary level an employee needs to receive to be eligible for an overtime exempt) increases from $684/week to $844/week. It goes up to $1,128/week on January 1, 2025.
Or not.
There are a few lawsuits that have been filed seeking an injuction to prevent the rule from going into effect. It’s possible (probable?) that a court may issue an injunction in the next week, repeating history from 2016 when an injunction also went into effect near the end of the Obama presidency. For employers, preparations should be well under way to make sure you understand what positions may need to be moved to non-exempt but employers may want to wait another week or so before putting those plans into motion. - FTC Non-Compete Rule – The Federal Trade Commission’s final rule banning most non-compete agreements is scheduled to go into effect in early September 2024.
But again, this rule is being challenged in court. Last week, a judge in Texas indicated that she will make a decision by July 3 on a motion seeking an injunction blocking the rule.
What does this mean for employers? For now, employers can continue to use the documents that they have been using until we get some greater clarity.
If the rule does go into effect, employers should be midnful that for senior executives who are in a policy making position and who earn more than $151,164, existing non-competes can remain in force. But no other non-competes can.
In addition, for employees who will no longer have valid non-compete agreements, employers will have to provide individualized notice to each individual in a “clear and conspicuous” manner that the non-compete won’t be enforced. But again, that will only be done if the rule goes into effect.
For now, employers should be mindful of the new rule and start thinking about its strategy but await a decision from a court next month that may stop the rule from going into effect for now.