April 2024 was newsworthy for Human Resources! A few things to note as a business owner are:
Hourly or Salaried? As you may know, when deciding if a position is hourly or salaried, you are required to use the Fair Labor Standards Act (FLSA) test. One of the variables that must be met for a position to be salaried is a minimum salaried amount. There is new guidance on that minimum salary. Effective July 1, 2024; positions must meet a minimum salary level of $844 per week ($43,888 annually). Effective January 1, 2025, the minimum salary level would increase to $1,126 per week ($58,552 annually). Employers are still permitted to satisfy up to 10% of the salary level using nondiscretionary bonuses and incentive payments (including commissions) paid annually or more frequently.
The new rule also does not change the “salary basis” or duties tests required for employees to qualify for exempt status. The minimum salary will update automatically every three years so we shouldn’t be playing catch up with as drastic of an increase going forward. Employers have the option to reclassify positions, which don’t meet the new threshold, to hourly or increase the pay to the new threshold to remain salaried. All positions must be treated the same, meaning you cannot have two employees with the same job title with different classifications – the job title/position is either hourly or salaried. Milestones HR, LLC can assist you with this communication or answer any questions you may have!
Non-Competes: The law has moved to ban non-compete clauses in employment agreements. There are already court cases lodged to block this ban from occurring. If those aren’t successful, the rule will take effect 120 days (around August 21, 2024). At that time, employers who have employees under existing noncompete agreements will be required to notify those employees that their agreements are no longer enforceable. We’d recommend employers work with their employment attorneys on this matter. If you don’t have a trusted employment attorney relationship, we can help make a referral!
Updated I-9 Form: While the new I-9 form was out a while ago, we’re still coming across outdated I-9 forms in our Human Resources Audits. Employers are not required, nor should they, go back to existing employees to complete the updated I-9 form. Rather, the updated I-9 forms are for employees hired going forward. The most important thing to keep in mind about the I-9 form is that employers are having the new employee complete the I-9 within 3 days of the new employee’s hire date, employers are reviewing the new employee’s citizenship documents (in person unless using e-verify), employers are completing the employer section of the I-9 and storing the completed I-9 in a secure location separate from their personnel files. Need an updated I-9 form? Download one here: https://www.uscis.gov/sites/default/files/document/forms/i-9.pdf
Have a Human Resources question? Give us a call at 608.370.4642 or drop us a line via email at angie@milestoneshr.com. Visit our website for all the services we offer at www.milestoneshr.com