As we progress through 2024, staying informed about the latest HR and employment law updates is crucial for employers and HR professionals. Recent changes in overtime regulations, noncompete agreements, and independent contractor classifications significantly impact workforce management and compliance. This blog provides an overview of these updates to help you navigate the evolving legal landscape. However, the nuances of these laws can be complex. Consulting with a Panther Workforce Solutions (PWS) representative can offer tailored guidance to ensure your organization remains compliant and optimizes its HR practices.
3 Updates From the Department of Labor that You Should Take Note of:
1. Overtime Rule Raises Salary Threshold
In a significant update, the U.S. Department of Labor (DOL) has increased the salary threshold for overtime eligibility. This rule, implemented in two phases, raises the salary level by Jan 1, 2025. This change means more employees will qualify for overtime pay, impacting workforce budgeting and payroll processes (SHRM).
2. FTC Bans Most Noncompete Agreements
The Federal Trade Commission (FTC) has introduced a sweeping rule banning most new noncompete agreements nationwide. This rule, set to take effect 120 days after publication, invalidates existing noncompete clauses except for senior executives earning over $151,164 annually, including other requirements. The FTC argues that noncompete agreements suppress wages and limit job mobility, thus violating Section 5 of the FTC Act (SHRM). There is surely more to come on this ruling.
3. Independent Contractor Rule Impacts
The U.S. Department of Labor has revised the criteria for classifying independent contractors, emphasizing the “economic reality” test. This update aims to clarify which workers are considered employees versus independent contractors, affecting compliance and payroll management for companies utilizing gig and freelance workers. The new rule focuses on the degree of control and dependence in the working relationship.
These updates underscore the evolving nature of employment law and its impact on HR practices. Organizations must stay informed and adapt their policies to ensure compliance and optimize their workforce management strategies.
Panther Can Help Keep You In Compliance
Keeping up with HR and (the many other 2024) employment law changes is essential for maintaining compliance and effective workforce management. The updated overtime rule, the FTC’s ban on most noncompete agreements, and revised independent contractor classifications represent substantial shifts in the legal framework governing employment. While this summary offers key updates, each organization’s situation is unique. For detailed advice and clarification on how these laws affect your business, consulting a PWS representative is highly recommended.
For more information on how Panther Workforce Solutions can help your organization enhance its HR capabilities, visit Panther Workforce Solutions. Our commitment to nurturing a diverse supply chain and delivering innovative workforce solutions can transform your HR operations and support your business goals. Contact our team today to learn more.
