Workplace Law Update: 10 Essential Items on Your July To-Do List

Insights

7.01.24

It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan for compliance, here is a quick review of some critical developments we tracked in June and a checklist of the essential items you should consider addressing in July and beyond.

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Get ready for the post-Chevron reality limiting federal agency power. The Supreme Court just upended the legal world by significantly reducing the power of federal regulators and placing more authority in the hands of judges – a move that will have a major impact on workplace regulations for years to come. Here’s what you need to know about the momentous ruling and what it means for employers.

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Review your mid-year compliance checklist. Although January 1 is the most common effective date for new workplace laws, many also take effect on July 1. With so many laws kicking in this month, it can be hard to keep track of it all. Here’s a guide to some of the federal, state, and local laws you’ll need to comply with starting in July.

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Ensure pay practices align with Phase I of the new federal overtime rule. This major July 1 effective date means big changes for many employers. The DOL’s salary threshold for the so-called “white-collar” exemptions from federal OT requirements just rose to $43,888 (and will jump to nearly $59k at the start of 2025). Make sure you determine if this change makes any of your salaried workers newly eligible for overtime pay. Here are 10 steps you can take as you create your compliance strategy.

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 Follow legal battles over the new salary threshold. While Phase I of the new overtime rule took effect on July 1, a federal district court in Texas issued a very limited order on June 28 blocking the rule as it applies only to the state of Texas as an employer. Texas private employers and employers across the country still must comply unless and until a court says otherwise. Given the limited scope of the Texas order, we anticipate other lawsuits to be filed throughout the country seeking a broader injunction and a possible appeal to the 5th U.S. Circuit Court of Appeals in the Texas  You can read more about the legal challenges here.

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Stay tuned for updates on the FTC’s non-compete ban. As many employers know, the Federal Trade Commission (FTC) recently finalized a rule that will soon ban most non-competes nationwide. Business advocacy groups have already challenged the new rule and it may be blocked before it is scheduled to take effect on September 4. The court hearing the primary legal challenge has said it will rule on a motion to stay the FTC rule by July 3. Click here for a series of frequently asked questions about all aspects of the rule.

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Assess the impact of recent labor relations developments. The Supreme Court sided with Starbucks on June 13 in a case where the Labor Board tried to force the company to temporarily reinstate workers who were fired for hosting media interviews afterhours in a closed store. While the Supreme Court’s ruling is a win for employers, it serves as a reminder to review your workplace policies and practices. Click here to learn more about the ruling and the steps you can take to strengthen your employee relations program.

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Prepare for potential changes in California if PAGA reform becomes law. Gavin Newsom just unveiled groundbreaking proposed legislation that would provide significant reform to California Private Attorneys’ General Act – also known as PAGA – and offer much-needed relief to employers. Learn here about the 10 biggest changes included in this proposed PAGA reform.

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Rethink your tattoo and piercing policies. While visible tattoos, facial piercings, and bright hair colors were once largely viewed as taboo in the workplace, attitudes have changed significantly in recent years — which means you may have difficulty attracting and retaining top talent if you adhere to rigid rules of the past. Click here for your five-step guide to appearance policies and dress codes in the modern era.

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Review big settlement in gig economy lawsuit and its impact on employers. Uber and Lyft just reached a $175 million settlement with Massachusetts state prosecutors that permits their drivers to stay classified as independent contractors – not employees – but entitles the drivers to significant benefits. The settlement avoids a potentially negative decision as to the classification of rideshare drivers and preserves the flexibility of their independent contractor model. Click here to find out what this ruling means for employers.

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Prepare for pay transparency in the Green Mountain State. Vermont will soon join nine other states across the country that require employers to disclose compensation in job postings. Governor Phil Scott signed the bill into law on June 4 and it will take effect in July 2025 — which means employers should start preparing for new obligations. Here’s what employers in Vermont and across New England need to know about the new law.

We will continue to monitor developments related to all aspects of workplace law. Make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information. If you have questions, contact your Fisher Phillips attorney.

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