Labor & Employment Law Update

On June 24, 2024, a federal district court judge enjoined parts of the United States Department of Labor’s August 23, 2023 prevailing wage rule that greatly expanded the definition of “construction” on federal prevailing wage projects. Such expansion of what constitutes covered “construction” work on federal prevailing wage projects was never contemplated by the actual federal prevailing law itself (the Davis-Bacon Act or DBA). In a fairly scathing rebuke of the US DOL’s 2023 rule, the court found “…[the US DOL]… usurped Congress’ law-making power and attempted substantive amendments to the DBA. Presidents and their agencies act ultra vires and do violence to the Constitution when they attempt to unilaterally amend Acts of Congress to suit their policy choices…” Interestingly, the court’s decision came before the US Supreme Court eliminated the Chevron deference doctrine. 

On July 3, 2024, a federal judge in Texas issued a preliminary injunction that stays the US Federal Trade Commission’s (FTC) near-total ban on non-compete agreements for the named plaintiffs seeking to invalidate the ban which is set to take effect on September 4, 2024. 

A federal judge in Texas denied a private company’s request to halt the U.S. Department of Labor’s FIRST PHASE of its new FLSA salary level rule. As you recall, the first phase of the new rule went into effect on July 1, 2024.

The court’s ruling means that the salary level for white-collar FLSA exempt employees must be paid a minimum annualized salary of $43,888 (up from $35,568). That number is then scheduled to go up to $58,656 on January 1, 2025. Raises in the minimum salary threshold will be automatic in subsequent years.

The court denied the company’s injunction request because ...

Earlier today, the Supreme Court issued a highly anticipated ruling that will strip federal administrative agencies of a significant amount of power. In brief, the Supreme Court’s Loper Bright Enters. v. Raimondo decision eliminates the longstanding “Chevron deference” rule which required courts to defer to an administrative agency’s interpretation of otherwise ambiguous statutes, provided that the interpretation is “reasonable.”

Several States and major U.S. Cities, including California, New York City and Seattle, have passed laws aimed at  classifying “gig workers” as employees as opposed to independent contractors in recent years.  Challenges to these laws are spreading, but finding no sympathy with courts thus far.

In our latest blog we’re providing the most recent updates to employment posters by state. Check out the links to determine which notices apply to you.

On January 1, 2024, we saw the Illinois minimum wage increase from $13.00 to $14.00.  The City of Chicago and Cook County are also increasing their minimum wages on July 1, 2024.

The latest round of labor and employment law updates includes several changes impacting employers in jurisdictions across the nation. Here are the summaries of these changes.

On May 26, 2024, the Illinois Legislature passed Senate Bill 3649 – titled the “Worker Freedom of Speech Act.” The legislation prohibits virtually all Illinois employers from discharging or disciplining any employee, or from threatening to take such actions against any employee, who refuses to attend meetings related to unions (aka “the Captive Audience Meeting”). In short, employers cannot require or give the impression to anyone that they are compelling workers to attend meetings that touch on labor unions. While the restrictions cover anything “political” or “religious” in nature (and union issues fall under “political”), the true intent is to shut up employers while union representatives are already legally allowed to say just about everything and anything to dupe the worker into “signing up” with a labor union. To be more clear, the legislation specifically aims to prevent employers from educating employees on the pros and cons of union membership in general or in a particular union or labor organization. Once signed by the governor (he’ll sign it), it will become effective.

With the summer travel season around the corner, we are fielding many travel and visa application questions. Here are answers to your most frequently asked questions.