Two new changes to U.S. Labor Law may impact some business budgeting and staffing. Now is a great time for businesses to learn more and adjust their plans and practices moving forward.
The first change in Labor laws took effect on July 1st, and updates limits and requirements on overtime pay. Under these changes, more workers qualify for overtime, meaning they must be paid 1.5 times their regular pay rate for any hours worked over 40 in a week.
A key change is the increase in the salary threshold. Employees earning below a certain annual salary, even if they are classified as "exempt" (like some managers or professionals), must now receive overtime pay. Standard Salary limits increased to a minimum of $844 per week and will move to $1,128 per week on July 1, 2025.
The second change is a new Noncompete Rule issued by the Federal Trade Commission or FTC scheduled to take effect on September 4, 2024. The new rule bans all new noncompete agreements for entities within the FTC’s jurisdiction and employers must give notice that noncompetes are unenforceable after that date. Some notable exceptions to rules include various financial institutions, common and air carriers and most nonprofits.
While litigation over both rules highlighted is pending, in various jurisdictions, now is the time for business leaders to better understand these new rules. The Missouri Chamber hosted an informational webinar for members earlier this month to provide more depth and insight on these changes. Watch a recording of the presentation to learn more.
