A new Harris Poll survey found that most employed Americans are satisfied with their company’s paid time off (PTO) policy; however, 3 in 4 said they didn’t use the maximum PTO permitted by their employer. PTO broadly covers any paid absence from work – it includes various reasons such as vacation, illness, and personal days.

According to the survey, most U.S. workers get between 11 and 30 PTO days yearly. Consider these additional key findings from the survey:

• Most Americans (83%) are satisfied with their company’s PTO policy. Over half (60%) are given more than 10 PTO days annually.
• Most (78%) do not use the maximum PTO allowed by their employer. The average worker took 15 paid days off last year despite half (49%) being allowed more than that by their employer.
• The top barriers preventing workers from taking more time off are “pressure to always be available and responsive to demands” (31%) and “heavy workload” (30%).

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Around 27% of U.S. workers quit their jobs in 2023, which, according to a common turnover calculation, cost employers nearly a trillion dollars to replace. Unfortunately, turnover is expected to climb this year, and labor experts predict another form of the “Great Resignation” to take place as workers choose to leave their jobs. Employee retention remains a critical challenge this year for employers across industries. A LinkedIn survey found that 85% of workers plan to look for a new role in 2024, which is almost a 20% jump from the previous year. The trend particularly applies to younger generations, including Generation Z, millennials, and Generation X.

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Chicago Issues Final Rules for Paid Leave and Paid Sick and Safe Leave – The Chicago Department of Business Affairs and Consumer Protection (BCAP) has published final rules for the city’s new Paid Leave and Paid Sick and Safe Leave Ordinance, which replaces Chicago’s current paid sick leave ordinance on July 1, 2024. This Legal Update provides information about key topics addressed in the final rules.

Read more: Illinois Legal Update

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We’ve compiled a report that contains case studies published in 2024 that explore the most recent, real-world examples of employers found to be in violation of wage and hour laws. These case studies include snapshots of violations and general guidance on how employers can prevent similar issues. Employers can examine these case studies to learn from the mistakes of others in comparable industries and avoid DOL violations. 

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Effective new hire orientation plays a pivotal role in integrating employees into the company culture, setting expectations, and providing essential information for a successful start. It sets the tone for the employee’s experience and influences their productivity and long-term commitment to the organization.

• Gallup reports that only 1 in 8 employees strongly agree that new hires at their organization receive an excellent orientation and onboarding experience.

Employee orientation serves as the initial welcome of new hires to a company, marking the beginning of their employment journey. Orientation provides a general overview of company policies, procedures, and culture. It is one of the first steps in the overarching onboarding process, which encompasses a series of events and training sessions. This process is designed to facilitate new hires’ transition into their roles, help them evolve into successful and productive employees, and acclimate them to the organization. As part of the broader onboarding process, orientation is critical to setting up a new hire for success—and often tenure—at the organization.

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On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would prohibit employers from entering into or enforcing noncompete clauses with most employees. The final rule was published in the Federal Register on May 7, 2024, and is scheduled to take effect 120 days after such date on Sept. 4, 2024. 

Subject to very limited exceptions, the final rule provides that:

• The use of noncompete clauses will be banned as of the effective date;
• Any existing noncompete clauses (other than those entered into with senior executives) will be invalidated;
• Employers must notify all employees (other than senior executives whose existing noncompete agreements will remain enforceable) that their existing noncompete agreements will not be enforced.

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On April 23, 2024, the U.S. Department of Labor (DOL) announced a final 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). The final rule will take effect on July 1, 2024.

Increased Salary Level – The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption. 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.

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Delaware Releases New Regulations for PFML Program – The Delaware Department of Labor has issued a second round of regulations for the state’s paid family and medical leave (PFML) program, which will begin providing leave benefits on Jan. 1, 2026.

Read more: Delaware Legal Update

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The Fair Labor Standards Act (FLSA) provides minimum wage and overtime pay protections to most employees. Employees generally must be classified as “non-exempt” and, therefore, be eligible for such minimum wage and overtime protections unless they meet the criteria to be classified as “exempt” from minimum wage and overtime requirements. Typically, only employees in certain positions who meet certain salary and job duties criteria set forth under the FLSA may qualify for an exemption.

Periodically, employers may be required to reclassify exempt employees as non-exempt, such as following a legal change to the exemption criteria or upon discovery that an employee is misclassified as exempt. Employers may also choose to reclassify employees as non-exempt to serve other business purposes.

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In early March 2024, the U.S. Department of Labor’s (DOL) proposed overtime rule, announced in August 2023, entered its last stage of review. Publication of the final rule is expected soon. The rule would amend the requirements that employees in certain white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).

The FLSA white-collar exemptions apply to individuals in executive, administrative, and some outside sales personnel and computer-related occupations. Some highly compensated employees (HCEs) may also qualify for a FLSA white-collar exemption. To qualify for most white-collar exemptions, employees must meet the specified salary threshold, among other criteria.

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