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PSL’s and Other Acronyms: Autumn Employment Law Updates
Fall is great. The air gets crisper. Football returns. The leaves start changing color. You see more of your family because it’s back to school and so everyone is constantly homesick. There’s something for everyone in this season. In our latest edition of the labor and employment law newsletter, we’re touching on a little of everything, too. So sit back, relax, and enjoy that Theraflu.
The FIFA: Part Deux
As employment lawyers, we hear a lot of cringe-worthy things. Near the top of the list is our favorite oxymoron, the “1099 employee”. Pro tip: if you’re trying to make the case that an individual is a contractor and not an employee, it is best to leave that word out of the description.
Why bring this up? Well, as previously mentioned a little-known law called the Freelance Isn’t Free Act (you’re damn right we’re going to hereinafter refer to this as “the FIFA”) went into effect in 2017, requiring that employers provide “freelance workers” (defined more or less as any solo independent contractor) with a written contract and timely payment. Violations came with a hefty price tag – think treble damages and payment of the freelancer’s attorneys’ fees. Initially, the FIFA was limited to New York City employers, leaving our friends in Westchester and Long Island free to pull a fast one on the DOL and keep expenses down utilize “1099 employees” without a second thought . . . that is until Governor Hochul signed the New York State Freelance Isn’t Free Act in late 2023, which is essentially a copy and paste of the NYC version (and yes, they didn’t even bother changing the name).
Fast forward to now: the (new) FIFA has been in effect for about a month, only applies to contracts with freelancers on or after August 28, 2024. If you currently utilize freelancers, it is highly recommended you give your contracts a once-over . . . and if you read that and thought, “what contracts?” – just skip the rest of this blog and give us a call.
No Transparency? Fuhgeddaboudit!
It’s Fall and that means pumpkin spice lattes are back on the menu. Love them or hate them, the PSL trend kept growing and growing until it was seemingly everywhere.
(trivia bonus: Starbucks first debuted the drink in 2003 … take that Morning Brew)
Naturally, this reminds me of another growing trend: salary transparency laws (and if it naturally made you think of salary transparency laws, too – we’re hiring). All the rage these days, more and more states are passing pay transparency laws. Recently, Massachusetts joined 11 other states in this club . . . and New Jersey may soon follow suit.
On September 26, 2024, the New Jersey state legislature passed Senate Bill 2310, which if signed by the Governor, will require certain employers in the Garden State to disclose salary and benefits information in job postings. If signed (which is expected), this law will take effect six months later.
Q4 is a great time to start reviewing your compliance with the latest employment laws – so finish up that David Chase Sopranos documentary and add salary transparency rules to your list.
Happy New Overtime Rules!
And speaking of end-of-year preparation, let’s not forget the U.S. Department of Labor’s recent revisions to federal overtime rules. Mark your calendars, because come January 1, 2025, the minimum salary threshold for exempt employees will jump to $1,128 per week (that’s a cool $58,656 annually).
To be sure, this rule change is being challenged – with the most noteworthy actions occurring at the Fifth Circuit. And while a court in the Fifth Circuit recently delivered a victory for employers by striking down the FTC’s non-compete rule, there is reason to believe the overtime rule has a far greater chance of hanging around. With one such reason being that the Fifth Circuit very recently held in favor of the U.S. DOL on a similar issue, finding that the DOL has the authority to issue salary rules as part of its role in defining the overtime exemptions of the FLSA . . . that said, a few weeks prior, the Fifth Circuit held against the DOL in another case, finding that a DOL rule was arbitrary and capricious.
So, will this overtime rule actually take effect next year? Much like whether the Jets are good this year, the answer remains to be seen. But for now, until otherwise informed, if you have any exempt employees currently earning less than that new threshold, you’d be well-served to review your policies.
Thank you as always for reading. And a Shana Tova to all who are celebrating. If you enjoy this newsletter, be sure to also check out our newest addition – the Business Blog! Check it out for helpful tips and updates (and less fearmongering) on all things business law related.
And as always, if you’ve got questions, you know we’ve got answers.
~ The W + K Team
ABOUT WEINSTEIN + KLEIN P.C.
Established in 2019, Weinstein + Klein is a boutique law firm focused on labor and employment law, business matters, and litigation. W + K works with businesses, individuals, and entrepreneurs to protect their legal interests. In addition to advising clients on employment matters and working with businesses to minimize their risk of litigation, we advise small businesses and start-ups on various business law matters.