What Will 2024 Bring?
Get Ready for the New Overtime Rule Although it’s just a proposal at this point, we expect the USDOL to prioritize the revised federal overtime rule and move swiftly to finalize the new exempt salary threshold. We anticipate that business groups or states opposing the proposal will file litigation in business-friendly jurisdictions like Texas or Florida in an attempt to sidetrack or derail the rule completely. But you can’t count on this happening, so you’ll need to prepare as if it the proposal will take effect. Expect More Agency Partnerships The USDOL will continue to partner with other agencies (NLRB and EEOC) in investigations and data sharing. And their counterparts in states with robust wage and hour laws will continue to aggressively enforce these laws. Focus on Child Labor Laws Federal and state enforcement of child labor laws will continue. The USDOL reported a 70% increase in the number of children illegally employed by companies in recent years. Businesses that relied on minors in response to worker shortages that were unaware of or failed to adhere to the strict restrictions on child labor will continue to face hefty penalties. And recently proposed bills in Congress would significantly increase the civil and criminal penalties. Monitor for FLSA Joint Employer Updates During the Trump administration, the USDOL issued a joint employer rule that briefly created a more business-friendly standard making it harder for employees to prove joint employment for the purpose of wage and hour litigation. The current USDOL formally rescinded the rule but has yet to announce any plans to propose a new rule. We’ll be monitoring this area for potential changes in the coming year, as things could move fast once they’re initiated. AI Focus Predictive Analysis Will Change the Game AI tools are capable of predicting periods of high overtime and labor demand, allowing employers to manage staffing levels proactively. Automation Saves the Day AI-driven scheduling tools – taking into account employee preferences, business needs, and applicable laws – can optimize workforce management. AI systems can also track working hours, calculate overtime, and process payroll with precision, reducing human error and ensuring legal compliance. And AI can also assist in accurately classifying employees as exempt or non-exempt under federal and state law, reducing the risk of misclassification.
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