FTC Issues Final Rule Banning Employee Noncompete Agreements

On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule prohibiting non-compete agreements, with some limited exceptions. The rule has already begun to face legal challenges, and if the rule does ultimately take effect, the earliest effective date would not be until at least late August 2024. Once effective, the rule would prohibit employers from entering into non-compete clauses with workers and enforcing existing non-compete agreements, unless they cover certain senior executives (workers who earn more than $151,164 annually and are in policy-making positions). Additionally, employers will need to provide notice to covered current and former workers that their non-competes are no longer enforceable.

Although there is no immediate action required, employers should review their non-compete agreements and discuss potential next steps with their employment counsel.

EEOC Issues Final Rule On Implementing the Pregnant Workers Fairness Act

The Equal Employment Opportunity Commission (EEOC) recently issued final rules regarding the implementation of the Pregnant Workers Fairness Act (PWFA), which originally took effect in June 2023. The final rules cover lactation support and other accommodations for expectant workers, including fertility and abortion care. The PWFA applies to employees and applicants and requires employers to provide accommodations for current, past, and potential pregnancy-related medical conditions, including miscarriage, abortion, and postpartum complications. The PWFA requires employers to provide reasonable accommodations similar to those under the Americans with Disabilities Act (ADA). Unlike the ADA, the PWFA may also require such accommodations on a temporary basis, even if the essential functions of the job cannot be performed. 

Employers should review and revise their policies and processes related to medical conditions covered under the PWFA and reasonable accommodations accordingly.

Department of Labor Finalizes Salary Threshold Increases for Overtime Exempt Employees

On April 23, 2024, the U.S. Department of Labor (DOL) released final rules regarding the minimum salary threshold to qualify for certain minimum wage and overtime exemptions under the Fair Labor Standards Act (FLSA), adjusted from those originally proposed in August 2023. The first salary requirement increases will take effect on July 1, 2024, bringing the minimum weekly salary to $844 (or $43,888 per year) for the executive, administrative, and professional (EAP) exemptions and to $132,964 per year for the highly compensated employee (HCE) exemption. Additional increases for the EAP and HCE exemptions will be effective January 1, 2025. The final ruling also requires future minimum exempt salary updates every three years, as determined by US wage data.

Employers should work closely with their employment counsel on how to prepare and comply with the new minimum exempt pay requirements for their specific employee population. Justworks PEO customers can access our in-house HR Consultants to discuss strategies for manager training and employee communication.

CDC Issues New Covid Guidelines for Return to Work

The Centers for Disease Control and Prevention (CDC) has updated its isolation guidance for COVID-19 cases. The updated guidance states that individuals who test positive for COVID-19 no longer need to isolate if they have been fever-free for 24 hours and have mild and/or improving symptoms. Employers may need to update their policies to reflect these changes, and should keep an eye on any other requirements that apply to their industry or area.