Labor & Employment Law Update

Join us on Wednesday, July 31 at 10AM CT as we present a timely webcast for employers, discussing the rising cost of health care plans.

The webcast will cover:

• Addressing GLP-1 coverage and mental health needs
• Compliance considerations for spousal incentives
• Considerations for alternative contribution structures and wellness incentives

Cultivate a thriving culture and drive your business to new heights by transforming your managers into dynamic leaders. Amundsen Davis's Leadership & Management Training Series is perfectly crafted for ambitious mid to senior-level managers from any sector to thrive. Join us this fall for our virtual series meant to help future leaders learn the ins and outs of compliance and management, whether you are developing policies, recruiting new talent, or handling employee issues.

On June 24, 2024, a federal district court judge enjoined parts of the United States Department of Labor’s August 23, 2023 prevailing wage rule that greatly expanded the definition of “construction” on federal prevailing wage projects. Such expansion of what constitutes covered “construction” work on federal prevailing wage projects was never contemplated by the actual federal prevailing law itself (the Davis-Bacon Act or DBA). In a fairly scathing rebuke of the US DOL’s 2023 rule, the court found “…[the US DOL]… usurped Congress’ law-making power and attempted substantive amendments to the DBA. Presidents and their agencies act ultra vires and do violence to the Constitution when they attempt to unilaterally amend Acts of Congress to suit their policy choices…” Interestingly, the court’s decision came before the US Supreme Court eliminated the Chevron deference doctrine. 

On July 3, 2024, a federal judge in Texas issued a preliminary injunction that stays the US Federal Trade Commission’s (FTC) near-total ban on non-compete agreements for the named plaintiffs seeking to invalidate the ban which is set to take effect on September 4, 2024. 

A federal judge in Texas denied a private company’s request to halt the U.S. Department of Labor’s FIRST PHASE of its new FLSA salary level rule. As you recall, the first phase of the new rule went into effect on July 1, 2024.

The court’s ruling means that the salary level for white-collar FLSA exempt employees must be paid a minimum annualized salary of $43,888 (up from $35,568). That number is then scheduled to go up to $58,656 on January 1, 2025. Raises in the minimum salary threshold will be automatic in subsequent years.

The court denied the company’s injunction request because ...

Earlier today, the Supreme Court issued a highly anticipated ruling that will strip federal administrative agencies of a significant amount of power. In brief, the Supreme Court’s Loper Bright Enters. v. Raimondo decision eliminates the longstanding “Chevron deference” rule which required courts to defer to an administrative agency’s interpretation of otherwise ambiguous statutes, provided that the interpretation is “reasonable.”

Several States and major U.S. Cities, including California, New York City and Seattle, have passed laws aimed at  classifying “gig workers” as employees as opposed to independent contractors in recent years.  Challenges to these laws are spreading, but finding no sympathy with courts thus far.

In our latest blog we’re providing the most recent updates to employment posters by state. Check out the links to determine which notices apply to you.

On January 1, 2024, we saw the Illinois minimum wage increase from $13.00 to $14.00.  The City of Chicago and Cook County are also increasing their minimum wages on July 1, 2024.

The latest round of labor and employment law updates includes several changes impacting employers in jurisdictions across the nation. Here are the summaries of these changes.