DOL | 2024 Exempt Salary Rule Thrown Out
On November 15, 2024, a federal court in Texas ruled that the Department of Labor had overstepped its authority with the most recent rule, increasing the minimum salary for exempt employees. The July 1 increases are void, the additional increase that would have taken effect on January 1, 2025, won’t happen, and the automatic increases that were scheduled to occur every three years are no more.
In short, the whole rule was thrown out, and the minimums have reverted to what they were before July 1, 2024. This means that most executive, administrative, and professional employees must be paid at least $684 per week ($35,568 annually) and not the $844 required by the now-defunct 2024 rule. Employees classified under the highly compensated employee exemption need to be paid at least $107,432 per year, as opposed to $132,964.
Action Items
If so inclined, employers can roll back changes they made to comply with the rule in July, although it will be very difficult to claw back those salary increases. Employers may halt any plans they had for the second increase in January. However, employers can’t retroactively reduce pay or change an employee’s classification.
Employees should be informed of any changes to their pay or classification before the changes take effect and in compliance with any applicable state or local laws, which may have specific notice requirements.
Employers should also consider the potential impacts on employee morale and do what they can to mitigate those that may be negative.
NLRB | Prohibits Captive Audience Meetings
The National Labor Relations Board (NLRB), which enforces the National Labor Relations Act (NLRA), recently decided that employers can’t require employees to attend captive audience meetings under the threat of discipline or discharge. The NLRA covers private employers of all sizes and protects nonsupervisory employees.
Captive audience meetings are mandatory meetings where employers present their views on unionization (and typically discourage employees from supporting union efforts).
However, the NLRB explained that employers can hold voluntary workplace meetings to express their views on unionization if, with reasonable advance notice, they inform employees that:
- The employer intends to express its views on unionization at a meeting that is voluntary for employees to attend,
- Employees won’t be subject to discipline, discharge, or other adverse action for not attending the meeting or for leaving the meeting, and
- The employer won’t keep records of which employees attend, fail to attend, or leave the meeting.
In addition to communicating this information, employers have to abide by the above statements in practice as well.
The new rule applied as of November 13, 2024. Employers should also review their state laws, which may have different requirements, to ensure compliance.
This decision is expected to face legal challenges, and the NLRB may reverse its opinion on the issue once it has a majority of members appointed by the new presidential administration.
Action Items
- Allow employees to opt out of any meeting covered by this decision
- Ensure that employees receive clear, advance notice for any voluntary meeting you hold about unionization that includes all the required details outlined in this decision
- Ensure supervisors understand these requirements
Resourcing Edge will share any developments if they occur.
DOL | Benefits Notification Timelines Relief Applies to Certain Disaster Areas
On November 7, 2024, the Department of Labor (DOL), the Treasury, and the Internal Revenue Service issued a joint notice extending certain employee benefits notification timeframes in FEMA-declared disaster areas of Florida, North Carolina, South Carolina, Georgia, and Tennessee due to Hurricane Helene and Hurricane Milton. The relief timelines vary by event and location.
The DOL news release includes resources and guidance.
USCIS | Backup E-Verify Records
USCIS announced that employers using E-Verify have until January 5, 2025, to download and retain records for cases last updated on or before December 31, 2014. After this date, USCIS will permanently dispose of these records, as required by federal regulations. For employers who enrolled in E-Verify in 2015 or later, this announcement has no effect until next year. For employers who enrolled before 2015, however, this could be problematic if they do not download for such items as an audit or for switching from paper I-9s to an electronic system.
USCIS | E-Verify+ Introduced-Alternative to E-Verify for Employers & Employees
The U.S. Citizenship and Immigration Services (USCIS) announced some new features of E-Verify+ that will be rolled out incrementally throughout the remainder of 2024. E-Verify+ is described as “service of E-Verify that streamlines employment eligibility verification by combining the Form I-9 and E-Verify into one seamless digital process.” The highlights include:
- notifying both the employer and prospective employee of their eligibility for employment, which relieves the employer from being the intermediary when a discrepancy is discovered between the eligibility data the employee entered/provided and official government records; and
- allowing workers to carry over their verification status to new employment by permitting employees to create their own account rather than solely relying on the employer’s account.
At this time, E-Verify+ does not replace the Form I-9, and it is not available for E-Verify employer agents, web services, and some federal contractors.
Federal Register | Federal Contractor Minimum Wage Increases for January 1, 2025
On January 1, 2025, the minimum wage for work performed on or in connection with federal contracts will increase as follows.
Contracts Covered by Executive Order 13658
The minimum wage will increase to $13.30 per hour and the minimum base wage for tipped employees will increase to $9.30 per hour.
Contracts Covered by Executive Order 14026
The minimum wage will increase to $17.75 per hour (for both tipped and non-tipped employees).
The Department of Labor has published helpful FAQs on Executive Order 13658 and Executive Order 14026. A side-by-side comparison of these executive orders, including the contracts covered by each, can be found here.
Notice of the minimum wage increase for contracts covered by Executive Order 13658 and Executive Order 14026 was published in the Federal Register on September 30, 2024.
