Welcome to our first July edition of “HR News You Should Know.” This month has brought significant legal and regulatory updates that could have profound effects on your workplace policies and practices. We delve into the recent Supreme Court decision overturning the Chevron Deference, the latest developments in the FTC’s non-compete ban, and the new overtime regulations that are now in effect.
Chevron Deference Overturned
On June 28, 2024, the Supreme Court overruled decades-old precedent settled in a case known as Chevron. The ruling in that 1984 case stated that if legislation passed by Congress was up for interpretation, the enforcing position was left to the applicable agency. Neither the Chevron case (Chevron U.S.A., Inc. v. National Resources Defense Council) nor the case that overruled it (Loper Bright Enterprises v. Raimondo) were employment-related. However, this will likely affect looming workplace changes such as the Overtime Rule and the non-compete ban. How will employers and courts interpret regulations and guidance from agencies such as the DOL and the EEOC? The immediate and long-term effects are still unknown, but we will keep you updated.
News & Analysis | The Death of Chevron
SCOTUS overturns Chevron doctrine, limiting federal agency reach
FTC Ban Update
In a limited and narrow ruling, on July 3, 2024, a Texas federal court temporarily blocked the Federal Trade Commission’s (FTC) non-compete ban. This ruling only applies to the five entities named in the lawsuit. This is another case pending to block the non-compete ban in Pennsylvania. The PA court said it should issue a ruling by July 23rd. As of now, the ruling is set to take effect on September 4, 2024. For now, keep using existing non-competes in the same manner, but now is not the time to start using them. We will keep you updated.
Yesterday, a court did block the FTC’s noncompete rule. But, here’s the thing…
New Overtime Regulations Update
If you haven’t already, now is the time to get into compliance with the first effective date of the new overtime rules. As of July 1, 2024, the salary threshold for Executive, Administrative and Professional Exempt employees is $844 per week. A Texas federal court temporarily blocked the rule for employees of the state of Texas. All other employers need to comply. Last week, a different federal court in Texas declined to enjoin the rule. All of our resources for complying with and communicating the new rule are in our Overtime Toolkit. This is an excellent time to review all your positions for correct classification as Exempt or Nonexempt.
News & Analysis | Court denies injunction in case involving DOL salary regs
For more information or to discuss a particular situation regarding any of the above topics, contact the Catapult HR Advice Team.
