Legislative Updates

On April 23, 2024, the Federal Trade Commission issued a final rule which bans noncompete agreements.  Per the FTC's press release, the new rule will "protect the fundamental freedom of workers to change jobs, increase innovation, and foster new business formation."  Under the new rule, existing noncompete agreements will no longer be enforceable.  However, existing noncompetes for senior executives earning more than $151,164 per year and are "policy makers" are still enforceable.  Employers are no longer able to enter into noncompete agreements with senior executives moving forward.  Employers will need to provide notice to workers with an existing noncompete that the agreement will not be enforceable.

FTC's press release: FTC Announces Rule Banning Noncompetes | Federal Trade Commission

The Biden-Harris administration released a final rule today that will increase the thresholds required to exempt an employee from the federal overtime requirements.  Effective July 1, 2024, the salary threshold will increase from $35,568 to an annual salary of $43,888.  On January 1, 2025, it will increase again to $58,656.

Read the DOL's press release at Biden-Harris administration finalizes rule to increase compensation thresholds for overtime eligibility, expanding protections for millions of workers | U.S. Department of Labor (dol.gov).  

Earlier this month, The US Citizenship and Immigration Services (USCIS) announced a temporary final rule to increase the automatic extension period for certain employment authorization documents from up to 180 days to up to 540 days.  The measure will prevent work-authorized noncitizens from having their employment authorization and documentation lapse while waiting for USCIS to process their pending applications.  This will offer less disruption to US employers' operations.    

On April 9th, the US House of Representatives passed H.R. 6655, A Stronger Workforce for America Act which would amend the Workforce Innovation and Opportunity Act (WIOA).  WIOA would help foster partnerships between workforce development agencies, colleges/universities, and employers with the goal of strengthening employer engagement and to ensure worker competitiveness in the job market.  The legislation moves to the senate for consideration.

The US Equal Employment Opportunity Commission (EEOC) issued a final rule on 4/15/24 to implement the Pregnant Workers Fairness Act (PWFA).  The act provides clarifications and offers a number of examples of reasonable accommodations which will help employers understand their responsibilities under the law.  The PWFA requires most employers with 15 or more employees to provide "reasonable accommodations" for employee's known limitations related to pregnancy and childbirth.  The final rule will be published in the Federal Register on April 19th.  

Read the EEOC's Press Release at: EEOC Issues Final Regulation on Pregnant Workers Fairness Act | U.S. Equal Employment Opportunity Commission

The Biden administration issued final regulations yesterday which protect federal government civil servants from being fired at will which overrides an executive order from the Trump administration which made it easier to fire federal employees.  The new rule will protect federal employees' right to due process and to be fired only for cause.  

President Biden's 2025 budget proposal was released this week which revealed his plan to establish a national paid family and medical leave program.  The program would be administered by the Social Security Administration and provide eligible employees up to 12 weeks of leave to care for/bonding time with a newborn, care for their own illness, care for a seriously ill loved one, circumstances arising from a loved one's military deployment and to find safety from domestic violence/sexual assault.

The proposal would also require employers to provide seven job protected paid sick days each year to all workers.  It also includes restoring the Child Tax Credit which establishes an affordable child care program for those earning less than $200,000.

The budget items are not expected to pass due to a split Congress.  

On March 1st, the CDC issued updated recommendations to allow for a more uniformed approach for viral illnesses such as COVID-19, flu and RSV.  Updated recommendations advise that those who are ill stay home and away from others.  Recommendations suggest returning to normal activities when, for at least 24 hours, symptoms are improving overall, and if a fever was present, it has been gone without use of a fever-reducing medication.  The CDC states that they are updating recommendations now as the US is seeing fewer hospitalizations and deaths associated with COVID-19.  

Read the CDC press release at: CDC updates and simplifies respiratory virus recommendations | CDC Online Newsroom | CDC

On January 30th, the U.S. Citizenship and Immigration Services (USCIS) announced the publication of two final rules regarding H-1B Registrations.  The H1-B process is used by employers wanting to hire nonimmigrant workers in specialty occupations.  United States employers must first electronically register for each prospective visa recipient they would like to hire.  Those selected in the H1-B "lottery" may then file the paperwork to obtain the visa.  

The H-1B Registration Final Rule should take effect 30 days from February 2nd.  Under the Final Rule, USCIS will:

1. Implement a Beneficiary-Centric Selection Process for H-1B Registrants.  Registrants will be selected by unique beneficiary instead of by registration reducing the risk for fraud.

2. Implement integrity measures for the H-1B Process.  

3. Provide start date flexibility for certain H-1B cap-subject petitions.  

In addition, the USCIS Fee Final Rule will take effect on April 1st which will increase fees.  The H-1B Pre-Registration Fee will increase from $10 to $215.  However, this will not be applicable until fiscal year 2025 for the H-1B registration.  The final rule will also provide discounts for nonprofits and small businesses.  

The Department of Labor released updated versions of the Notice to Employees of Coverage Options last month as their current notice had expired.  There are two model notices - one for employers who offer coverage to some or all employees and one for employers that do not offer a health plan.  You can find the updated notices on the DOL's website at: 

Notice to Employees of Coverage Options | U.S. Department of Labor (dol.gov)