Key Labor Laws

Key Labor Laws or Regulations Implemented or Proposed In 2023

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There have been a number of federal labor laws and regulations that have either been implemented or proposed during 2023 that have or could impact business operations. Some of these changes are significant, while others are more minor. However, it is important for business owners to be aware of all of these changes so that they can comply with the law and avoid costly penalties or enforcement actions by Federal agencies. Below is a summary of some of these key labor laws or regulations implemented or proposed in 2023.

The Pregnant Workers Fairness Act (PWFA) and Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act)

The Pregnant Workers Fairness Act (PWFA) took effect on June 27, 2023. The PWFA requires most employers to provide reasonable accommodations to pregnant employees. The PWFA also prohibits employers from retaliating against employees who request or use accommodations.  Although many pregnant employees already had numerous protections under the Pregnancy Discrimination Act (PDA) of 1978, the PWFA expands both the number of employees covered and the types of protections under the act.

The Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act) went into effect on December 29, 2022.  The PUMP Act provided expanded protections for nursing mothers in regard to break times and privacy of location.

Non-Compete Agreements (Proposed)

The Federal Trade Commission (FTC) has proposed a rule that would ban all non-compete agreements in employment contracts. The proposed rule applies to both employees and independent contractors in all industries. The FTC is currently accepting public comments on the proposed rule, and the final rule is expected to be issued in late 2023 or early 2024.  Business Owners should begin to assess how this change could impact their operations in the future and what, if any, actions they may take to protect their business interest without having enforceable non-compete agreements in place.

Salary Basis Threshold Minimum Increase Rule (Proposed)

On August 30, 2023, the U.S. Department of Labor (DOL) announced a notice of proposed rulemaking to increase the salaried basis threshold for the “white collar” exemptions under the Fair Labor Standards Act (FLSA). Currently, the salary threshold to be considered a white-collar exempt employee is $684/week, which is equivalent to $35,568 annually.

Note: the salary minimum is only part of analysis to meet an exemption, in order to be properly deemed exempt, employees must also satisfy a “duties test” under the FLSA.

The new proposal from the DOL would increase the minimum weekly salary amount to $1,059, which is the equivalent of $55,068 annually. Also, as part of its proposal, the DOL also seeks to have these amounts increase automatically every three years, based on available wage data. The intent with the automatic updates is accurately reflecting changing economic conditions going forward.

Although this proposed rule has not yet been implemented, business owners should begin to assess what positions could be impacted by these proposed changes and their options on how they may make any required adjustments to comply with these changes.

National Labor Relations Board Changes (Proposed)

The National Labor Relations Board (NLRB) has proposed a number of changes to its rules and regulations that could have a significant impact on business operations. Some of the proposed changes include:

  • Joint-employer standard: The NLRB is proposing to expand the definition of joint employer, which could make more businesses responsible for the labor practices of their contractors and subcontractors.
  • Union recognition: The NLRB is proposing to make it easier for unions to be recognized without an election.
  • Unfair labor practices: The NLRB is proposing to expand the scope of unfair labor practices, which could make it more difficult for businesses to resist unionization efforts.

If these changes are finalized, they could have a significant impact on business operations. For example, businesses may need to be more careful about who they contract with and how they manage their relationships with their contractors and subcontractors. Businesses may also need to be more cautious about their labor practices, as they could be held responsible for the unfair labor practices of their contractors and subcontractors if they are deemed joint employers.

In preparation of these changes, here are some specific recommendations to take at this time:

  • Review your contracts with contractors and subcontractors to ensure that they protect your business from liability for the labor practices of your joint employers.
  • Develop a policy and plan on unionization and train your managers and supervisors on permissible and impermissible actions that they may take involving unionization.

State and Local Labor Laws

Federal labor laws are the minimum standard, whereas state and local laws may frequently surpass federal requirements and impose higher obligations on an employer.  State and local laws frequently exceed federal laws in areas of illegal discrimination, minimum wage, paid leave time, break periods and pay transparency.

Conclusion

In addition to the specific recommendations above, business owners should also be aware of the general trend towards increasing regulation of the workplace. The federal government and state governments are becoming more proactive in enforcing labor laws and regulations, and businesses should be prepared to comply with these new laws and regulations.

The Aliniti HR Blog – Key Labor Law Regulations Implemented or Proposed In 2023 is intended as an employer reference guide only and not intended to serve as legal advice, therefore any legal questions should be directed to legal counsel.