Federal Compliance Update: New Overtime Rules & Non-Competes Are Banned
Summary
The Department of Labor (DOL) announced the Final Rule: Restoring and Extending Overtime Protections on April 23, 2024. Employers should begin to prepare for this change by reviewing exempt employees whose salaries fall between the current $35,568 and the new thresholds. On April 23, 2023, the US Federal Trade Commission (FTC) approved a proposed Final Rule banning nearly all new noncompete clauses in employment agreements. The Final Rules does allow continued enforcement of existing non-competes entered into prior to the effective date if the employee meets the definition of a “senior executive.” Upon the effective date, the Final Rule voids all existing non-compete clauses for individuals who are not considered senior executives. If there’s any good news regarding these announcements, it’s that Human Capital Management technology can help employers adapt to the outcomes with minimal disruption.
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