Federal Court Vacates 2021 US Department of Labor Final Rule on Tipped Workers

On August 23, 2024, the 5th Circuit Court of Appeals in Texas vacated the US Department of Labor (DOL) 2021 Final Rule which had set strict guidance on the payment of tipped employees. As a reminder, the 2021 Rule had established three different categories of work that may be performed by tipped employees and specified […]

Federal Judge Blocks Nationwide Noncompete Ban

Lake Effect previously blogged about the FTC’s ban on noncompetition agreements.  In a game-changing decision for employers, a federal judge in Texas has blocked the FTC’s nationwide ban on noncompetes, which was scheduled to take effect on September 4, 2024. The judge ruled that the FTC lacked substantive rulemaking authority to address unfair methods of […]

FTC  Ban on Noncompetition Agreements Takes Effect  

As we previously reported, the Federal Trade Commission (“FTC”) issued its final rule on April 23, 2024, banning noncompetition agreements and related provisions.  The rule will take effect on September 4, 2024, 120 days after publication in the Federal Register.  As of September 4th, employers who have employees under existing noncompete agreements and related provisions, […]

Employers Must Implement First FLSA Exempt Salary Increases on July 1, 2024

Barring a last-minute, successful legal challenge, the Department of Labor’s final rule mandating higher salary levels for exempt employees will take effect Monday, July 1, 2024. On that date, employees whose job duties meet the test for the FLSA’s “white collar exemptions” must be paid a fixed salary of at least $844 per week, or $43,888 per […]

Encourage Employees to Use Their PTO

It’s  Good for Them – and Good for Your Organization Paid Time Off policies are designed to provide employees time away from work to recharge, take care of their own well-being, and support loved ones during times of need, yet so often employees do not use all their earned time. According to a Pew Research […]

Updated EEOC Guidelines on Workplace Harassment

On April 29, 2024, the Equal Opportunity Commission (“EEOC”) released its latest Enforcement Guidance on Harassment in the Workplace (the “Guidance”). The Guidance updates prior EEOC guidelines on: (1) legally protected characteristics; (2) how harassment must affect a “term, condition, or privilege of employment;” (3) and standards for establishing liability. Although the EEOC Guidance does not […]

FTC Bans Noncompete Agreements

Lake Effect HR Law

On April 23, the Federal Trade Commission (“FTC”) issued its final rule banning noncompete clauses in employment agreements. Barring a successful legal challenge (including lawsuits already filed in Texas courts), the rule will take effect 120 days after publication in the Federal Register. At that time, employers who have employees under existing noncompete agreements will […]

US Department Of Labor Raises Salary Thresholds For Exempt Employees 

Lake Effect HR Law Exempt Status

Employers wake up today to a daunting new landscape as they face higher salary requirements for their exempt employees. On April 23, 2024, the US Department of Labor (DOL) issued a final rule that substantially increases the minimum salary levels for exempt employees under the Fair Labor Standards Act (FLSA). If an employee’s job duties and fixed salary level meets […]