The Federal DOL Salary Rule in Effect for Private Employers
The first increase in the new minimum salary thresholds for exempt executive, administrative, professional, and highly compensated employees takes effect today, July 1, 2024.
Under the new rule, exempt executive, administrative, and professional (EAP) employees must be paid at least $844 per week ($43,888 per year). Employees exempt under the highly compensated employee (HCE) exemption must make at least $844 per week on a salary basis and at least $132,964 per year in total compensation.
A Small Exception
On June 28, 2024, a federal judge in Texas issued an injunction that stops the application of the rule to the state government of Texas as an employer (e.g., the employees of the Texas Department of Transportation or Texas Workforce Commission are not subject to the new rule). Private employers are not affected by the injunction. For more information on this exception, see THE BRIEFCASE, the new addition to the Resourcing Edge monthly compliance communication.
Federal HIPAA Privacy Rule Update
The Department of Health and Human Services (HHS) published an update to the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule on April 26, 2024. The final rule, originally drafted in 2023 after the U.S. Supreme Court decision in Dobbs v. Jackson Women’s Health Organization, addresses the use and disclosure of protected health information (PHI) for reproductive health data and is effective on June 25, 2024. Covered entities, including self-funded group health plans, should review their policies, procedures, and business associate agreements to determine where modifications are needed to ensure compliance.
The final rule prohibits the use or disclosure of PHI by a covered entity (a healthcare provider, health plan, or healthcare clearinghouse), or the business associate of a covered entity, from the following:
- Conducting a criminal, civil, or administrative investigation into or imposing liability on any person for merely seeking, obtaining, providing, or facilitating reproductive healthcare where it is lawful.
- Identifying any person for the purpose of conducting such investigation or imposing liability.
The prohibition applies where a regulated entity (e.g., a covered entity or their business associate) has reasonably determined one or more of the following conditions exist, as stated in an HHS fact sheet:
- The reproductive health care is lawful under the law of the state in which such health care is provided under the circumstances in which it is provided. For example, if a resident of one state traveled to another state to receive reproductive health care, such as an abortion, that is lawful in the state where such health care was provided.
- The reproductive health care is protected, required, or authorized by Federal law, including the U.S. Constitution, regardless of the state in which such health care is provided. For example, if use of the reproductive health care, such as contraception, is protected by the Constitution.
When a regulated entity receives a request for PHI potentially related to reproductive healthcare, a new signed attestation must be obtained. Regulated entities must comply with the new rule by December 23, 2024, and revise their notice of privacy practices by February 16, 2026.
Resourcing Edge will provide updates when HHS publishes the sample language for the attestation and notices.
Non-Competes Banned
On April 23, 2024, the Federal Trade Commission (FTC) announced a final rule which bans almost all noncompete clauses nationwide. The final rule was published in the Federal Register on May 7, 2024 and is effective on September 4, 2024.
The rule will ban all new noncompete clauses as of the rule’s effective date and will also make existing noncompete clauses void, except for those with senior executives that are in effect as of September 4, 2024. Employers will be required to provide written notice to affected workers if they are subject to noncompete clauses that are no longer enforceable.
Additional information about the final rule (including the final rule itself), employee model notices, and FAQs can be found on the FTC’s Noncompete Rule page.
Additionally, you can stay caught up on Recent Court & Administrative Decisions, which are now included in the new section of our monthly compliance communication entitled THE BRIEFCASE. While there, you can see which other government agency recently joined the FTC in its attack on noncompete and nonsolicitation provisions.
