New Delivery of Employment Laws
Florida Supreme Court Certified Circuit Civil Mediator
Florida Supreme Court Qualified Arbitrator
There have been critical new rules, regulations and law changes over the last year affecting the employment
world. Two significant changes include the Department of Labor Wage and Hour rules and the passing of the Pregnant Workers Fairness Act.
The new Fair Labor Standards Act (“FLSA”) Overtime Salary Threshold Rule became effective July 1, 2024. The new rule issued by the Department of Labor (DOL) calls for a significant salary increase for employees to qualify for the FLSA’s overtime exemption encompassing executive, administrative and professional employees. The new salary threshold is $844.00 per week equating to $43,888.00 annually. In order to be in compliance, I recommend employers review their salaried employee’s wages and job descriptions to verify they are properly classified and meet the new salary threshold. Misclassification is often fodder for litigation and can result in costly legal fees and additional pay to the effected employees. For additional information about classification see my earlier article – Is the Gig up?
Under this new rule, highly compensated employees (HCEs) also saw an increase in the total compensation needed to qualify as an exempt HCE to $132,964.00. The change became effective July 1, 2024, but will increase again on January 1, 2025. The change represents a significant increase from the prior range and requires each employer to evaluate their current employee’s salary to verify they fall within the threshold. Non-compliance may lead to DOL inquiry, audit or costly litigation. It is best to be proactive than reactive.
Another change creating some ruffles in the workforce is the Pregnant Workers Fairness Act (PWFA) effective June 27, 2023, and the recent EEOC’s 400-page broad interpretation of its requirements. The final rule, which became effective June 18, 2024, broadens the protections for “qualified employees” by requiring employers with more than 15 or more employees to make reasonable accommodations for known limitations of employees or applicants related to childbirth, pregnancy, or “related conditions”. The “related conditions” includes current or past pregnancy, potential pregnancy, menstruation, lactation, contraception and decision of having/not having an abortion. It includes pre-existing conditions, along with those stemming from the pregnancy, that are exacerbated by the pregnancy or childbirth. In further contrast of the ADA, the physical or mental condition that moves an employee or applicant to make a request for an accommodation under the PWFA can be modest, minor or episodic and there is no requirement the condition meet a specific severity threshold.
To make matters more confusing, when determining if an employee or candidate is a “qualified employee” under the PWFA, you need to apply the PWFA standard which is different than the ADA’s standard. The PWFA defines “qualified employee or applicant” as one who, with or without a reasonable accommodation, can perform the essential functions of the job, but also includes one who cannot perform an essential function of the job for a “temporary period” determined to be “in the near future”, if the person is or is expected to be able to perform the essential function “in the near future” and the inability to perform the essential function can be reasonably accommodated. The vague interpretation of “temporary period” and “in the near future” will certainly open the door for broad interpretation and likely litigation.
These are but a few of the changes in the Employment sector and I recommend every applicable employer review the PWFA and the FLSA to make sure you are in compliance. Should you find yourselves faced with litigation and are looking for a resolution, I am available to mediate your case and would be honored to bring my experience and knowledge to the mediation table.