Several important HR and employment law updates are impacting employers across the Northland as summer winds down and the weather starts to turn towards fall.
A widely anticipated decision on the Federal Trade Commission’s (FTC) Noncompete Ban was delivered on August 20, 2024. The U.S. District Court for the Northern District of Texas set aside the proposed ban, ruling the FTC did not have the authority to issue such a broad action and that the rule was arbitrary and capricious. What does it mean for employers? The noncompete ban did not take effect as planned on September 4th.
The FTC has responded that the decision does not prevent it from addressing noncompete agreements through case-by-case enforcement actions. Savvy employers will utilize the expertise of a trusted advisor when using or enforcing a noncompete agreement.
Minnesota Employers. Minnesota employers, remember that Minnesota already made changes limiting noncompete clauses in July of 2023.
On August 23, 2024 the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor (DOL) tip credit rule. This was generally referenced as the 80/20/30 rule and outlined three categories of work:
Under the 80/20/30 Rule, time spent in the third bucket (tasks not part of the tipped occupation) had to be compensated at full minimum wage and a tip credit could not be taken. Additional rules applied.
The Fifth Circuit decision applies nationwide. However, employers are still impacted by local or State laws that may be more protective than Federal law. For example, Minnesota employers are prohibited from taking a tip credit against the minimum wage.
The first Paid Leave deadline for employers is coming up on October 31, 2024. The
Minnesota Paid Leave division provided an update for employers that to determine eligibility and benefit payments when Paid Leave launches in January 2026, Minnesota employers need to begin to submit report wage details for their employees by 10/31/24. Paid Leave will use the same online reporting system as Unemployment Insurance (UI) to make things easier for employers.
No additional steps are needed from Minnesota employers if all of their employees are covered by UI, as the same account and quarterly wage detail reports will serve Paid Leave. If an employer has some or all of their employees not covered by UI they may need to create an account to submit wage details by 10/31/24.
With elections just around the corner, here’s a quick refresher on employee voting rights under State law.
In Wisconsin, employers must provide up to three successive hours to vote on election day. This time off can be docked from pay for a non-exempt employee. Employees are required to notify the employer of the planned absence, and the employer has the option to notify the employee of the time of the day they will be excused to vote.
In Minnesota, every employee who is eligible to vote has the right to be absent from work for the time necessary to appear at the employee’s polling place, cast a ballot, and return to work on the day of that election or during the in-person early voting time period. Employers cannot dock an employee’s pay.
This is a state-mandated retirement plan that will provide a retirement option for private sector employees who don’t have an employer-sponsored retirement plan.
Employers with five or more employees that do not sponsor a retirement plan for their employees will be required to transmit a percentage of each employee’s pay to the program, where it will be deposited into a state-sponsored individual retirement account (IRA) for the employee. Employees have the option to change the contribution percentage or opt out of participation. The program is expected to go into effect on or after January 1, 2025.
Effective January 1, 2025, any “person or entity that employs 30 or more employees” in Minnesota must disclose in job postings “the starting salary range” and a general description of the benefits and other compensation that will be offered to the applicant hired for the position. This follows a growing trend towards increased transparency in job posts. As a reminder, effective January 1, 2024, Minnesota employers are prohibited from asking job applicants about pay history.
This is a brief synopsis of complicated and hotly contested regulations. Stay tuned for updates and consult with a trusted advisor to fully understand how the final rule impacts your organization.
Originally published in the October edition of Business North.
Human Resources thought leader, Stacy Johnston, provides innovative solutions with a mission to support organizations in understanding and engaging their biggest competitive advantage… their employees. Johnston is a licensed attorney and holds the SHRM-CP credentials.
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