Last week, on April 24, 2024, the federal DOL increased the minimum salary thresholds to qualify as an exempt employee under the Fair Labor Standards Act (FLSA), from its current $684 per week to $844 per week, effective July 1, 2024. For employees qualifying under the FLSA’s highly compensated employee exemption, they must make at least $132,964 per year.

The DOL’s rule also provides for an additional increase to $1,128 per week, effective January 1, 2025. Notably, the increase in 2025 will have exempt employees across the country required to make nearly as much as those exempt employees in New York State – excluding New York City, Westchester and Long Island. New York State exempt employee’s minimum salary will be $1,161.65 per week- a difference of only $33/week – a far cry from the current difference of $440.20 per week. The 2025 increase for highly compensated employees under the FLSA will increase to $151,164 per year. The rule also provides that these minimum thresholds will now be updated every three years.

In what seems to be a tradition now, the New York State Legislature included within its budget passage a key employment change for New York employers. This year, such change included requiring employers to grant 20 hours of paid leave during a 52 week period to use for prenatal healthcare appointments. Such grant, effective January 1, 2025, is as amendment to the New York State Paid Sick Leave Law and in addition to the New York Paid Family Leave Law. The prenatal healthcare appointments are defined as “health care services received by an employee during their pregnancy or related to such pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to the pregnancy.” Such leave may be taken in hourly increments, rather than any larger time blocks. Payment, at an employee’s regular rate of pay (or minimum wage, if greater), is also stipulated to be in hourly increments. Additionally, like other New York State leave laws, the provisions includes an anti-discrimination  and retaliation provision in response to employees who request or take such leave.

As many of you may have heard over the last few months to a year, the Federal Trade Commission (FTC) released a proposed rule that would have banned non-competes. Last week, on April 23, 2024, the FTC released its final rule. Despite months of comments from several protesting, the final rule prohibits employers to enter into non-competes with any worker once the rule is in effect – 120 days after it is published in the Federal Register. Notably, worker is defined far broader than employee – it specifically excludes consideration of classification under any State or Federal laws and specifically includes all natural persons whether an “employee, independent contractor, extern, intern, volunteer, apprentice, or a sole proprietor who provides a service to a person.”