Key Labor Laws Employers Need to Watch in 2024
We update this article every year. You can find our posts on 2023 laws here, 2022 laws here and 2021 laws here .
As we move further into 2024, several significant changes in labor laws are reshaping the employment landscape. Employers must stay informed and adapt to these new regulations to ensure compliance and maintain a positive work environment. Here’s a comprehensive overview of the key labor laws to watch this year:
FTC Ban on Non-Compete Clauses
The Federal Trade Commission (FTC) has introduced a groundbreaking rule banning non-compete clauses in employer-employee contracts. This change aims to enhance job mobility and foster competition across industries.
Key implications for employers:
- Review and revise existing contracts to remove non-compete clauses
- Develop alternative strategies to protect intellectual property and trade secrets
- Focus on creating positive work environments and competitive compensation packages to retain talent
New Overtime Rule
The Department of Labor has updated overtime regulations, significantly impacting salary thresholds for overtime eligibility.
Important changes:
- Effective July 1, 2024: Most salaried workers earning less than $844 per week are eligible for overtime pay
- Effective January 1, 2025: The threshold increases to $1,128 per week
- The salary threshold for highly compensated employees (HCEs) also increases
Employer actions:
- Review and adjust salaries of exempt employees
- Update payroll systems to accommodate new overtime rules
- Conduct a financial impact analysis and adjust budgets accordingly
Regular Updates to Overtime Thresholds
Starting July 1, 2027, the Department of Labor will update salary thresholds for overtime eligibility every three years based on current wage data.
Employer considerations:
- Stay informed about upcoming threshold changes
- Regularly review and adjust exempt employee salaries
- Plan for potential increases in labor costs
Enhanced Gig Worker Protections
New regulations extend protections to gig workers, including minimum wage guarantees and access to certain benefits.
Employers should:
- Review worker classifications to ensure compliance
- Update policies and employee manuals to reflect new protections
- Budget for potential increases in operational costs
Expanded Family and Medical Leave
Many jurisdictions are expanding paid family and medical leave benefits, including longer leave durations and broader qualifying events.
Employers need to:
- Revise family leave policies to comply with new requirements
- Implement or upgrade leave management systems
- Clearly communicate changes to employees
Pay Transparency Laws
An increasing number of states and localities are enacting pay transparency laws, requiring employers to disclose wage ranges in job postings and during the hiring process.
Steps for compliance:
- Update job postings and recruitment materials to include salary ranges
- Implement systems to track and report wage data
- Ensure compliance with both federal and state-specific pay transparency laws
NLRB’s Updated Joint-Employer Standard
The National Labor Relations Board has broadened its joint-employer standard, making it easier for workers to claim joint-employer status.
Implications for employers:
- Review contracts with third-party entities (e.g., staffing agencies, subcontractors)
- Enhance compliance programs to monitor labor law adherence across all employment relationships
- Adjust operational practices to limit potential joint-employer designations
Conclusion
As labor laws evolve, employers must remain vigilant and proactive in adapting their policies and practices. Regularly reviewing and updating HR policies, ensuring compliance with new regulations, and effectively communicating changes to employees are crucial steps in navigating this changing landscape.
By staying informed and implementing best practices, employers can avoid legal pitfalls and create a more equitable and positive work environment for their employees.
We recommend consulting with legal counsel and visiting authoritative sources such as the Department of Labor , the National Labor Relations Board, and the Equal Employment Opportunity Commission for more detailed information on these and other labor law changes.
