- FEDERAL -
Court Order Vacates Department of Labor’s Final Overtime Rule
On November 15, 2024, Judge Jordan of the Eastern District Court of Texas issued a Memorandum Opinion and Order in State of Texas vs. U.S. Department of Labor that vacated the Department of Labor’s (DOL) 2024 Final Overtime Rule. The court ruled that the DOL exceeded its statutory authority by raising the salary threshold for exempt employees under the Fair Labor Standards Act (FLSA) to a level that effectively overshadowed the evaluation of their job duties.
As a result of the court’s decision, the salary thresholds for exemptions under the Executive, Administrative, Professional, and Highly Compensated Employee categories immediately reverted to the levels set by the 2019 Overtime Rule:
PPRCLaw will continue monitoring developments in this case to keep clients informed about potential impacts on employment practices.
U.S. Department of Labor Publishes Skills-Based Hiring Guide
On November 13, 2024, the U.S. Department of Labor released a non-binding guide to help private employers adopt skill-first hiring practices. The guide outlines the benefits of a skills-based hiring approach, such as improved employee retention rates and reduced hiring costs. It also highlights examples of employees who could thrive under this approach, including:
The guide further provides actionable steps businesses can take to implement skills-based hiring and create a more qualified and diverse workforce.
For assistance in evaluating how these updates may affect your business operations, reach out to PPRCLaw’s employment law team.
CALIFORNIA
San Diego County - Fair Chance Ordinance Implementation
Employers with five or more employees operating in unincorporated areas of San Diego County must now comply with the newly enacted Fair Chance Ordinance. This local measure, effective October 10, 2024, expands on California’s Fair Chance Act by requiring employers to conduct individualized assessments, issue pre-adverse action notices, and maintain detailed records when considering applicants with criminal histories. These provisions aim to promote fair employment opportunities for individuals with prior convictions.
The Office of Labor Standards and Enforcement is authorized to impose financial penalties for non-compliance: up to $5,000 for a first offense, $10,000 for a second, and as much as $20,000 for additional violations. However, enforcement through fines will not begin until July 1, 2025.
FEHA Amended to Address Intersectionality
Governor Gavin Newsom has signed SB 1137, which modifies the Fair Employment and Housing Act (FEHA) to explicitly protect individuals from discrimination or harassment based on the intersection of two or more protected characteristics. Employers with at least five employees are required under FEHA to prevent discrimination and harassment based on attributes such as race, religion, disability, age, sex, and more.
The amendment clarifies that FEHA protections extend to any combination of these traits, perceived combinations, or associations with individuals who have—or are perceived to have—such characteristics. This update will take effect on January 1, 2025, reinforcing California’s commitment to inclusive and equitable workplaces.
For tailored advice and assistance with compliance, contact the Law Offices of Paul P. Cheng & Associates. We provide comprehensive legal support to help California employers adapt to evolving workplace regulations.
These developments highlight the evolving landscape of employment regulations on both federal and state levels. Employers should stay updated and ensure compliance to avoid legal pitfalls and potential penalties. Legal counsel is recommended to navigate any complex changes effectively.
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