On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).

To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. The DOL is proposing to increase the standard salary level from:

• $684 to $1,059 per week ($35,568 to $55,068 per year); and
• $107,432 to $143,988 per year for highly compensated employees.

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Colorado Law Expands and Clarifies Pay Transparency Requirements – On June 5, 2023, Colorado enacted a new law, Senate Bill (SB) 105, that expands pay transparency and related requirements under the Colorado Wage Equality Law. The new law is effective Jan. 1, 2024. Employers must make reasonable efforts to announce, post or otherwise make all job opportunities known to current employees before making a promotion decision. SB 105 also requires employers to provide current employees with information about the candidate selected for each job opportunity. Read more: Colorado Legal Update

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The U.S. Supreme Court issued several consequential decisions as its most recent term ended, including addressing affirmative action programs in college admissions at Harvard University and the University of North Carolina. While these rulings will likely not directly affect employers, they may impact workplace diversity, equity, inclusion, and belonging (DEIB) initiatives, including how organizations promote and implement them.

• Individual Lawsuits – While the Supreme Court’s rulings did not directly address hiring or employment practices, employers may face increased scrutiny over their hiring practices and DEIB initiatives. This will likely take the form of individual reverse discrimination lawsuits, with applicants or employees claiming to be disadvantaged by an employer’s DEIB initiatives. For example, employers that rely on DEIB programs that impact employment decisions could be at a higher risk of potential litigation than those that simply offer employee resource groups (ERG).

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When an employee is misclassified as an independent contractor instead of an employee, they are denied crucial benefits and standard labor protections under the Fair Labor Standards Act (FLSA). The FLSA, enforced by the U.S. Department of Labor (DOL) Wage and Hour Division (WHD), establishes standards for recordkeeping, overtime pay, minimum wage, and youth employment in the private sector and for federal, state, and local governments.

On Oct. 13, 2022, the DOL published a Notice of Proposed Rulemaking to rescind its 2021 independent contractor classification rule under the FLSA and replace it with new guidance for how employers should interpret employee or independent contractor status. The agency recently indicated that it will likely publish a final independent contractor rule in October 2023. The proposed revision is intended to reduce the likelihood that employees will be misclassified as independent contractors and improve clarity for employers. If the proposed rule comes into effect, it will likely impact most employers. Employers are not required to change how they classify employees until the DOL’s proposed rule is finalized.

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New Form – On Aug. 1, 2023, the U.S. Citizenship and Immigration Services (USCIS), part of the U.S. Department of Homeland Security, published an updated version of Form I-9. USCIS has indicated that employers may begin using the new form immediately and that use of the expired form (dated “10/19/2019”) will be allowed through Oct. 31, 2023. Beginning Nov. 1, 2023, employers will need to use the newest version of the form or face potential penalties. The new version of the form can be accessed by clicking the following link: New Form I-9.

Form I-9 Summary of Changes – The new version contains changes to the form and instructions, including shortening the Form I‑9 to one page and reducing the instructions to eight pages. Click the following link to view: USCIS’s Summary of Form I-9 Changes.

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As talent shortages persist across industries, an increasing number of employers are grappling with the need to adapt to the “new normal” to address this challenge effectively. Hiring managers are encountering a significant shift in which they find themselves dealing with an inadequate number of candidates or insufficient resources (e.g., budget and staffing) to meet the high demand for candidates. The 3 infographics below provide tips and tricks to help hiring managers improve their recruiting efforts.

Strategies to Improve Hiring Outcomes – Prioritizing the quality of new hires can improve employee retention and morale, decreasing turnover costs. Employers should analyze their recruitment and onboarding practices for more positive hiring outcomes. Click the following link to view the infographic: Strategies to Improve Hiring Outcomes

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Connecticut Adds Mental Health as Reason to Take Paid Sick Leave – Connecticut has amended the state’s paid sick leave law to require employers to allow eligible employees to take time off for mental health. The amendments, which take effect Oct. 1, 2023, also extend family violence and sexual assault leave to parents of victims. Read more: Connecticut Legal Update

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The U.S. Supreme Court issued several consequential decisions addressing religious accommodations, the Biden administration’s student debt relief plan, and affirmative action as its most recent term ends. These cases’ rulings will likely have major impacts on employers, altering established labor and employment laws and workplace practices. The below article provides additional information regarding these decisions.

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Major health insurers UnitedHealth and Humana are warning about a jump in medical costs this year due to higher-than-anticipated demand for surgeries and other medical procedures. Insurers have benefited from nonurgent surgery delays during the COVID-19 pandemic and hospital staffing shortages. In fact, some individuals, especially older adults, put off elective procedures during the height of the pandemic. As care patterns continue shifting back to pre-pandemic norms, many individuals are catching up on their elective care and now opting for procedures.

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At some point, an employee will eventually move on from an organization. When that time comes, a well-prepared offboarding process can significantly enhance the efficiency and success of the transition. Offboarding refers to how an organization handles a departing employee—with the ultimate goal of an amicable separation. It can encompass a number of steps to support a smooth employment separation, including finalizing payroll, completing tax paperwork, retrieving company property, terminating access to company systems and files, facilitating knowledge transfers, and maintaining a respectable employer-employee relationship.

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