We are over halfway through 2024, and this year has introduced numerous changes for HR and payroll professionals to keep track of. We thought now might be a good time for a quick recap of a few of the major announcements.
DOL Increases Exempt Employee Minimum Salaries
On July 1, 2024, the first of two steps in a published rule by the US Department of Labor (DOL) went into effect. Under the new rule, exempt executive, administrative, and professional employees must be paid at least $844 per week ($43,888 per year) to retain the exempt status. Step 2 goes into effect on January 1, 2025. Currently, the salary requirement is scheduled to increase to $1,128 per week ($58,565 per year) in January. The rule also implements automatic updates to the minimum salary levels every three years starting July 2, 2027.
Recommended next steps if you have not already done so would be to ensure that salaried employees make at least the new minimum salary required for their classification. If salaried employees are not at the minimum salary level, it is recommended to reclassify them at the non-exempt level, making them eligible for minimum wage and overtime pay. It is also advisable to prepare to change those that will be affected in the next phase on January 1, 2025. For additional information and to review the few exceptions to this rule, please visit the DOL website.
Oregon Minimum Wage Increase
Also effective on July 1, 2024, we saw an increase in Oregon’s minimum wage. Following are the new minimums employers of all sizes should be offering:
- Portland Metro (within Portland’s Urban Growth Boundary): $15.95
- Nonurban Counties: $13.70
- All Other “Standard” Counties: $14.70
You can review a map of these areas here. The next increase will be effective July 1, 2025. Standard rates will increase based on the Consumer Price Index, the Portland Metro rates will be increased $1.25 over the Standard minimum wage, and Nonurban Counties will be $1 less than the Standard minimum wage.
Changes to OFLA
Oregon Family Leave Act (OFLA) is a law that provides unpaid, job-protected leave for eligible employees and their families. Employees may qualify for OFLA if their employer has at least 25 employees. With the introduction of Paid Leave Oregon, there were significant changes made to OFLA to prevent overlap. These changes went into effect July 1, 2024. As a result, OFLA will no longer cover the following reasons for leave:
- To care for an infant or newly adopted or foster child
- To care for a family member with a serious health condition (except for caring for a sick or injured child at home)
- To recover from, or seek treatment for, the employee’s own serious health condition
OFLA will continue to cover the following leaves unpaid:
- Up to 12 weeks of leave per year to care for a child at home because they are sick or injured or because their school or care provider is closed due to a public health emergency
- Up to four total weeks of leave per year for bereavement (employees are allowed to take two weeks of leave for each death not to exceed the four-week limit)
- Up to 12 weeks of leave for any illness, injury, or condition related to their own pregnancy or childbirth that prevents them from performing any available job duties offered by the employer
- Up to 14 days per deployment under the Oregon Military Family Leave Act
Recommended next steps include reviewing all of the changes that went into effect July 1, 2024 on the BOLI website, updating current OFLA policies as needed, and providing necessary notices for leaves that will no longer be covered by OFLA.
Ban on Non-Compete Agreements
On May 7, 2024, the Federal Trade Commission (FTC) published a final rule which bans all non-compete agreements between employers and workers. This ban also limits employers’ ability to enforce most existing non-compete agreements. This rule is scheduled to go into effect September 4, 2024. Court challenges are expected, but states could also use this as a model in their legislatures for bans at the state level.
Recommended next steps in preparation of this rule include employers reviewing how this will impact agreements with current and former workers if it becomes effective. For additional information, please visit the FTC webpage.
There is never a dull moment in HR and payroll administration. If you are looking for tools and resources to help keep you updated on the latest happenings, please reach out to Bennett/Porter & Associates and let us help inspire solutions.
