Employers should review their salary levels for exempt employees in preparation for a new rule effective July 1, 2024.

The Fair Labor Standards Act ("FLSA") has certain exemptions available from minimum wage and overtime pay. For the white collar exemptions (executive, administrative, and professional employees), the annual salary threshold is increasing from $35,568 ($684/week) to $43,888 ($844/week) on July 1 and again on January 1, 2025 to $58,656 ($1128/week). The duties test and salary basis test to qualify for the executive, administrative, or professional exemption are not changing and still need to be met in order to qualify for these exemptions.

On Tuesday, April 23, 2024, the Federal Trade Commission (“FTC”) issued a rule banning most non-compete clauses in the United States. Lawsuits have already been filed to challenge the rule. However, businesses should prepare for the rule to go into effect 120 days after publication in the Federal Register (“Effective Date”), which is expected soon.

A non-compete clause is a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from: (i) seeking or accepting work with a different person after the employment has ended; or (ii) operating a business after the employment has ended. Non-compete clauses can be part of a written or oral agreement, such as an employment agreement, separation or severance agreement, confidentiality and nondisclosure agreement, or as part of a workplace policy, such as in an employee handbook.

Does your business engage independent contractors to provide products or services in Illinois, or is your business located in Illinois? If so, the Freelance Worker Protection Act imposes new obligations on contracting entities and gives freelance workers various remedies and rights for violations.

Illinois enacted the Freelance Worker Protection Act effective July 1, 2024. The Act applies to freelance workers providing products or services in Illinois or to a contracting entity located in Illinois. Contracting entities must have a written agreement with freelance workers for contracts taking effect after July 1, 2024.

Governor Holcomb’s Executive Order 20-43, signed on September 24, 2020 requires all businesses situated or operating in Indiana to create a COVID-19 response plan outlining measures and safeguards for the safety of employees, customers, clients and members of the public. The plan must be provided to all employees and posted publicly. Existing policies should be reviewed and updated to reflect current practices and standards.

The minimum requirements of the COVID-19 response plan include:

On Monday of this week, a divided U.S. Supreme Court decided a landmark employment law case.  In Bostock v. Clayton County, Georgia, the U.S. Supreme Court found that Title VII of the Civil Rights Act of 1964, which prohibits sex discrimination in employment, includes sexual orientation and gender identity.  Title VII applies to employers with 15 or more employees in 20 or more calendar weeks in the current or preceding calendar year.  Title VII prohibits discriminating against an individual with respect to employment decisions, compensation, terms, conditions, or privileges of employment because of an individual’s race, color, religion, sex, or national origin.