TWO SIGNIFICANT EMPLOYMENT LAW RULES IMPACTING YOUR BUSINESS

I. FEDERAL TRADE COMMISSION ADOPTED A “FINAL RULE” ON APRIL 23, 2024, THAT EFFECTIVELY PROHIBITS THE USE OF ALMOST ALL NON-COMPETITION PROVISIONS IN EMPLOYMENT CONTRACTS.

This applies not only to new contracts being offered, but to existing non-compete agreements with non-senior executives. The rule requires employers to provide notice to current and former employees that any non-compete provisions in their contracts are no longer in effect.
There will still be legal challenges over the coming months to this strict and narrow rule, which may delay its implementation.
Exception: Existing non-competes with senior executives (defined as earning more than $151,164 annually and hold a position equivalent to a level of president, CEO or a position that has similar authority to those roles AND final authority to make policy decisions that control significant aspects of a business entity or a common enterprise are grandfathered and are still enforceable.
Keeping this in mind, depending on your business interests, the inclusion of a non-solicitation and/or confidentiality clause in your Employment Contracts may be advisable.

II. DEPARTMENT OF LABOR RAISES SALARY THRESHOLD FOR OVERTIME
The current “white-collar” ( Executive, Administrative, Professional, Outside Sales and Computer employees) overtime threshold is $684 per week ($35,568).
On July 1, 2024, there will be an initial threshold increase to $844 per week, equivalent to $43,888.
In addition, there will be another increase at the beginning of 2025, which will result in the threshold increasing to $1,128 per week, equivalent to $58,656.
Now is the time to review the classification of your non-exempt and exempt employees.

Attorney Helene Horn Figman combines specialized legal knowledge in employment law with the skills and perspectives uniquely suited to Human Resources Consulting www.figmanlaw.com

Information about her anti-harassment and anti-discrimination education programs can be found at www.workplaceawarenesstraining.com

This article has been prepared by the Law Offices of Helene Horn Figman, P.C. for general informational purposes only. It does not constitute legal advice and is presented without any representation of warranty whatsoever.

Contact Info:
Helene Horn Figman
Law Offices of Helene Horn Figman, P.C.
45 Bristol Drive, Suite 207S
South Easton MA
www.FigmanLaw.com
hfigman@figmanlaw.com
508-238-2700