5. The FLSA’s White Collar Exemption
DOL Finalizes Substantial Increase to Salary Threshold for FLSA White-Collar Exemption
By Charles E. McDonald, III, Keith E. Kopplin, and Zachary V. Zagger
April 23, 2024
In fifth place this year, is the U.S. Department of Labor’s (DOL) ill-fated final rule to raise the minimum salary threshold to qualify for certain overtime exemptions under the Fair Labor Standards Act (FLSA). The rule would have increased the weekly salary threshold to $1,128 by January 1, 2025, and the annualized salary threshold for highly compensated employees to $151,164, with updates every three years based on wage data. If they were to take effect, these changes would expand the number of employees eligible for overtime pay.
In the months following, the new rule was challenged in three federal courts. Then, on June 28, a federal court in Texas granted the state’s request for a preliminary injunction to block the new rule. A few weeks later, another federal court in Texas denied a preliminary injunction to block the DOL’s new rule. Finally, a federal judge in the Eastern District of Texas struck down the rule on November 15. As a result, the salary threshold exempt status reverted back to the 2019 rule, which set the executive, administrative, and professional (EAP) exemption at $684 per week, or $35,568 annually, and the “highly compensated employee” (HCE) exemption at $107,432 per year.
Ogletree Deakins’ Wage and Hour Practice Group continues to monitor developments regarding the white-collar exemption and provide updates on the Wage and Hour blog as additional information becomes available.
4. Maryland’s Wage Transparency Law
Maryland’s New Wage Transparency Law to Take Effect on October 1, 2024
June 24, 2024
Maryland’s recently enacted Wage Range Transparency Act amended the state’s Equal Pay for Equal Work law to require employers to disclose wage ranges in job postings and upon request. The new law, which took effect on October 1, 2024, mandates that employers provide wage information, a general description of benefits, and any other compensation offered for positions. This legislation aimed to strengthen wage discrimination protections and align Maryland with other states that have implemented similar wage transparency requirements.
Ogletree Deakins’ Washington, D.C., office continues to monitor developments and publish relevant updates on the Maryland, Pay Equity, and Wage and Hour blogs.
3. New York’s Salary Basis Thresholds
Reminder for New York State Employers: Salary Basis Thresholds Increased for 2024
By Joseph B. Cartafalsa and Zachary V. Zagger
February 7, 2024
In late 2023, the New York State Department of Labor approved new minimum salary thresholds for exempt executive and administrative employees, effective December 31, 2023, with further increases planned through 2026. The new thresholds are now $1,200 per week for New York City and surrounding counties, and $1,124.20 per week for the rest of the state. Additionally, starting March 13, 2024, the salary threshold for exemptions from pay frequency laws increased from $900 to $1,300 per week.
For more information, the Ogletree Deakins Client Portal provides subscribers with timely updates on wage and hour laws, including minimum wage. Ogletree Deakins’ New York office continues to monitor developments and provide updates on the New York and Wage and Hour blogs.
2. The 2024 H-1B Registration Period
USCIS Announces FY 2025 H-1B Registration Period and New Beneficiary-Centric System
February 1, 2024
On January 30, 2024, the U.S. Citizenship and Immigration Services (USCIS) started the year with an announcement that the H-1B cap registration period for fiscal year (FY) 2025 was to run from March 6 to March 22, 2024. The agency also announced the implementation of a new beneficiary-centric system to ensure equal chances of selection for all beneficiaries, regardless of the number of registrations submitted on their behalf and that the H-1B registration fee will remain steady at $10 for FY 2025 (rather than increasing to the proposed $215).
In April, USCIS announced the lottery results, and released data indicating that the number of H-1B registrations submitted for the FY 2025 H-1B cap significantly decreased. A second H-1B lottery was completed on August 5, and on December 2, the agency announced that it received enough petitions to meet the congressionally mandated caps for H-1B visas for FY 2025.
Ogletree Deakins’ Immigration Practice Group continues to monitor developments and publish relevant updates on the Immigration blog.
1. Non-Compete Agreements
By Scott R. McLaughlin, Christine Bestor Townsend, and Tobias E. Schlueter
May 24, 2024
On May 7, the Federal Trade Commission (FTC) shook the world of non-compete agreements by publishing a rule banning such agreements and requiring employers to refrain from enforcing them. As employers started planning for a September 4, 2024, effective date (which never came to pass), one federal district court granted a preliminary injunction staying enforcement of the rule, while another federal district court denied a motion for preliminary injunction, and later, yet a third federal court sided against the rule. On August 20, the first of these three courts entered a final judgment directing that the final rule not be enforced. On October 18, 2024, the FTC filed a notice of appeal to challenge this ruling.
For now, the FTC non-compete ban remains enjoined, but Ogletree Deakins’ Unfair Competition and Trade Secrets Practice Group continues to monitor developments and provide updates on the Unfair Competition and Trade Secrets blog as additional information becomes available.
Key Takeaways
Employers keeping track of the non-compete rule and the DOL’s white-collar exemption salary thresholds will want to keep a close eye on agency and court action in these areas—especially as the new administration takes office. If the past is any indication, these two topics may end up on our unwrapped lists for 2025.
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