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Employment Law
2. The DOL will probably increase the minimum salary necessary for FLSA overtime exemptions.
Currently the annual salary threshold for the Executive, Administrative and Professional exemptions to the FLSA is $35,586.00. The Obama administration attempted to raise the threshold to $47,476.00, but that effort was blocked in federal court. Nevertheless, the Biden DOL is intent on attempting another increase. In November 2022, a DOL spokesperson told HRdive.com: “The Wage and Hour Division is still developing a proposal updating overtime regulations under the Fair Labor Standards Act. The division held multiple stakeholder listening sessions in 2022, and DOL continues working toward this proposal.”
In short, employers can expect DOL to announce an increase. But, also be prepared for litigation similar to that during the Obama administration.
3. Will the Federal Trade Commission successfully end non-competition agreements?
On January 5, 2023, the Federal Trade Commission issued a Notice of Proposed Rulemaking that would ban post-termination non-competition agreements and require employers to rescind existing ones. The proposed rule would make it illegal for an employer to: enter into or attempt to enter into a noncompete with a worker;
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FDCC ANNUAL INSIGHTS 2023