By all accounts, 2023 was an active year for employment law changes. Along with busy federal regulators and state and local legislatures, increased geographic mobility of workers exacerbates the amount of change human resource professionals have to manage. Across industries, it is much more common to have at least one, or perhaps many, workers in states other than the principal place(s) of business. Against this backdrop, employers need to be aware of what is happening across jurisdictions and be ready for potential changes in 2024.

Things to watch and plan for now include:

Proposed Changes to Overtime Requirements

Proposed Rule: The Department of Labor (DOL) has proposed to increase the salary threshold for overtime exemptions to $1,059 per week (or $55,068 annually) from $684 per week. If an employee in an executive, administrative or professional position makes less than $1,059 per week and the rule takes effect, as expected, the employee can earn overtime. The DOL has also proposed to increase the salary threshold for highly compensated employees to $143,988 from $107,432 annually and automatically update these salary changes every three years using contemporaneous wage data.

What Employers Should Do Now: Since these changes might become effective in the spring or summer of 2024, employers should consider the thresholds now while embarking on performance reviews, compensation analysis and bonus targets and numbers. These changes will also create compression across other positions, and thus a comprehensive and planned compensation strategy is important. The performance process or annual adjustments could be delayed, bonuses could be used less frequently or for smaller amounts since more compensation will be required for base pay, positions can be changed to eliminate the exemption and limit overtime, to name a few options.

EEOC’s Targeted Enforcement Plan for 2024-2028

Summary of the Plan: The Equal Employment Opportunity Commission (EEOC) announced its strategic enforcement plans for the next several years. Highlights include greater enforcement for vulnerable and underserved workers, such as those with disabilities, criminal records, and LGTQBI; enhanced interest in on-the-job training; greater attention to employers’ use of AI and other emerging technology; and greater priority to pregnancy, long-Covid and technology-related employment discrimination.

What Employers Should Do Now: Employers should consider implementing a policy or protocol relating to permissible uses of AI, if any, review hiring processes relating to candidates with criminal records, review hiring processes for candidates with medical issues or disabilities, and ensure team members are trained on appropriate handling of reasonable accommodation requests.

Variety of State Law Changes

Things to Watch For: Various states have made significant changes to their employment laws. For example, Illinois enacted paid leave for essentially all employees. Colorado updated its laws to redefine the standard for sexual harassment, add marital status as a protected employment category, and set stringent requirements for non-solicitation agreements, among other things. A number of other states, including Ohio, legalized recreational use of marijuana which will have important impacts for all employers in legalized states.

What Employers Should Do Now: Take an inventory of the states where employees live. Consult with your legal counsel at Ice Miller to ensure your policies, handbooks and practices conform to all of the states of your employees. For example, you might have a workforce that is 80 percent in states without state-required sick leave, but the remaining 20 percent might reside and work from Illinois. You should consider how you are going to modify your policies to comply with Illinois’ new paid leave requirements and whether you want to harmonize those requirements for all workers.

Like 2023, the next calendar year is shaping up to be active for federal regulators and state and local legislatures. With more workers in jurisdictions beyond the ‘home office’, stay on top of the residence of your employees and consult with your legal counsel at Ice Miller to assist you with these ever changing laws.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.