On April 23, 2024, the U.S. Department of Labor (DOL) issued its final rule to raise the minimum salary amount employers must pay to exempt employees to avoid paying overtime under the Fair Labor Standards Act (FLSA). Effective July 1, 2024, employers must pay certain salaried employees in the United States, who are classified as exempt, including those who take advantage of the common executive, administrative, and professional (EAP) exemptions, the equivalent of $844/week or $43,888/year to avoid overtime requirements. The previous threshold amount was $35,568/year. According to the DOL, the new salary level is being set at the 35th …
Federal Trade Commission Issues Final Rule Banning Most Noncompete Agreements
On April 23, 2024, the Federal Trade Commission (“FTC”) voted by a 3-2 margin to issue a final rule prohibiting employers from entering into and enforcing most non-competition agreements (“noncompetes”) against current and former workers. The FTC’s vote came more than a year after issuing its notice of a similar proposed rule on January 5, 2023 and collecting public comments through April 19, 2023. The FTC’s final rule proclaims that most noncompetes constitute a form of unfair competition pursuant to the FTC Act (15 U.S.C. § 45). In 2023, after seeking client input, Coolidge Wall submitted a public comment to …