Labor law attorney Michael Nail led a discussion on two recent developments in labor law that could have significant impacts on small businesses during a human-resources roundtable hosted by Ten at the Top’s Upstate Entrepreneur Ecosystem.
The first topic discussed was the recent changes made by the federal Department of Labor to minimum salary thresholds for overtime pay exemptions for certain salaried executive positions. Nail explained that this ruling could affect even very small businesses and involves guidance about overtime compensation under the Fair Labor Standards Act. However, the rule has already been challenged in a federal district court in Texas, with many labor-law experts predicting that it will be struck down.
Despite the uncertainty surrounding the rule, Nail emphasized the importance of businesses preparing as if it will go into effect, as it is scheduled to do so on July 1. He advised businesses to make decisions based on their company’s needs and to be proactive in their approach.
Another topic discussed was a recent Federal Trade Commission rule that would effectively eliminate non-compete agreements. Nail mentioned that this rule is facing even more strenuous litigation than the Department of Labor overtime ruling, with a high likelihood that it will never go into effect as scheduled on Sept. 4.
The discussion also touched on the Pregnant Workers Fairness Act of 2023 and the final rule regarding its implementation released by the federal Equal Employment Opportunity Commission in April. Nail explained that this law is an extension of the Americans with Disabilities Act and expands and defines job protections for pregnant workers. He advised clients to err on the side of caution and accommodate pregnant workers in light of the new law.
Overall, these recent developments in labor law could have major impacts on small businesses, but the possibility of legal challenges may ultimately prevent them from taking effect. Businesses are urged to stay informed and prepared for any potential changes in labor regulations.