On August 20, 2024, however, Judge Ada Brown of the U.S. District Court for the Northern District of Texas enjoined the implementation of the Noncompete Ban, meaning that it will no longer take effect on September 4, 2024 (or at any point thereafter, unless there is a successful appeal of Judge Brown’s ruling). In particular, Judge Brown found that the FTC lacked authority to issue substantive rules related to unfair methods of competition, which importantly includes the Noncompete Ban. This ruling returns employers to the status quo, allowing for enforcement of noncompete agreements according to current state-specific frameworks.

Should you have any inquiries or seek clarification on this matter, please do not hesitate to contact us.

The post Client Alert: Federal Court Blocks FTC Noncompete Ban From Taking Effect appeared first on Weiss Serota Helfman Cole + Bierman.

Here are the major takeaways:

White Collar Exemptions

• The standard salary level for the FLSA’s White Collar exemptions will increase from $684 per week to $844 per week (or $43,888 annually) on July 1, 2024.
• Six months later, on January 1, 2025, the standard salary level will increase to $1,128 per week (or $58,656 annually for a full-time worker).

HCE Exemption

The HCE total annual compensation level will increase from $107,432 per year to $132,964 per year on July 1, 2024, and then to $151,164 per year on January 1, 2025.

• Pursuant to the Rule, if an employee’s total annual compensation does not total at least $132,964 by the last pay period of the 52-week period, the employer can make up the difference by making a one-time payment to achieve the required level no later than the next pay period after the end of the year.
• Up to 10% of an employee’s salary amount may be satisfied by the payment of nondiscretionary bonuses, incentives, and commissions, that are paid annually or more frequently. 

Other Takeaways

• The salary thresholds will be updated every three years beginning July 1, 2027, based on current earnings data. The “current earnings data” is determined by “the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region (currently the South).”
• The Rule does not change any of the duties tests associated with the White Collar exemptions. 
• The Rule does not apply to exempt employees in the U.S. territories of Puerto Rico, Guam, the U.S. Virgin Islands, and the Northern Mariana Islands. 
• The salary thresholds do not affect any workers in named occupations who are not required to pass the salary requirements including: physicians, lawyers, teachers, academic administrative personnel, educational administrators, and outside sales workers. Accordingly, these employees’ exemption status remain unaffected by the Rule.  

In light of the Rule, employers will need to reevaluate their exempt employees and confirm these individuals will earn the new threshold amounts required by the Rule.  Employers should consider whether their existing exempt workers’ salaries require increases. Otherwise, these individuals will no longer be considered exempt employees and will be entitled to overtime pay. Due to the time associated with analyzing these issues, employers should immediately take the necessary steps to ensure compliance by July 1, 2024.  

The post Client Alert: DOL Issues Final Rule on Amendment to FLSA Exemptions appeared first on Weiss Serota Helfman Cole + Bierman.

Under the Safety in Private Spaces Act, a covered entity that maintains a restroom and/or changing facility, must at a minimum, have a restroom and/or changing facility designated for exclusive use by females and for exclusive use by males. The Act defines a person’s sex as, “indicated by the person’s sex chromosomes, naturally occurring sex hormones, and internal and external genitalia present at birth.” A covered entity may have unisex restrooms and changing facilities, though it must only be intended for a single occupant or a family. In a unisex restroom, a covered entity will be required to ensure that the restroom is enclosed by floor-to-ceiling walls and is accessed by a full door with a secure lock that prevents another individual from entering while being used. 

The Act provides the following limited circumstances for a person to enter a restroom or changing facility designated for the opposite sex:

• To accompany another person to chaperone a child under the age of 12;
• To accompany an elderly or disabled person, as defined by Florida Statutes Section 825.101 and 760.22;
• For law enforcement purposes; 
• For emergencies (medical or otherwise); and
• For custodial, maintenance, or inspection purposes.

Under the Act, the applicable governmental entity for each public building under its jurisdiction will need to establish disciplinary procedures for any employee of the governmental entity who unlawfully enters a restroom (employee restroom or public restroom) or changing facility and refuses to depart when asked to do so. A person who unlawfully enters a restroom or changing room in a public building and refuses to depart when asked to do so by an employee of the governmental entity for the public building will have committed the criminal offense of trespass as provided by Florida Statute Section 810.08. On July 1, 2024, members of the public will be permitted to submit complaints to the Attorney General relating to covered entities that fail to meet the specific requirements under the Act. 

A covered entity that fails to comply with the requirements of the Act is subject to penalties and to licensure or regulatory disciplinary action, as applicable. The penalties detailed in the Act include the Attorney General bringing a civil action to enforce the Act against any covered entity beginning on July 1, 2024. Specifically, the Attorney General may seek injunctive relief. If a covered entity is found to have willfully violated the Act, the Attorney General may seek to impose a fine of up to $10,000.  

The following covered entities will be required to submit documentation to its applicable governing body detailing their compliance with the Act within one year after being established, or if such covered entity was established before July 1, 2023, then no later than April 1, 2024:  

• Correctional institutions; 
• Detention facilities; 
• K-12 educational institutions or facilities;
• State universities;
• Postsecondary educational institutions or facilities; and
• Juvenile correctional facilities or juvenile prisons. 

We anticipate that the constitutionality of the new law will be challenged pursuant to the Equal Protection Clause of the Florida Constitution. Nonetheless, all covered entities should be prepared to comply with the provisions in the Act beginning on July 1, 2023. 

Should you have any questions about the Safety in Private Spaces Act, please feel free to contact any member of our Labor and Employment team.

The information contained in this document does not constitute legal advice

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