Any change in presidential administrations that comes with a shift in political occasion is sure to result in a shuffle at federal companies. Throughout a Wednesday webinar and post-election dialogue, Cozen O’Connor attorneys mentioned what they anticipate to occur with among the greatest guidelines and rules on employers’ radar when President-elect Donald Trump takes workplace. Listed below are two fast takeaways.
Additional time rule
Maybe surprisingly for a Republican administration, two of the attorneys predicted the U.S. Division of Labor’s additional time rule — which can increase the minimal annual wage threshold for additional time below the Truthful Labor Requirements Act to $58,656 on Jan. 1, and routinely each three years beginning in July 2027 — won’t solely stay in impact, however go unchallenged on the federal degree.
“Trump’s achieved it prior to now,” mentioned member of the agency David Barron, referring to the first administration’s elevating of the edge in 2019. “I don’t know why he could be against that.”
“I completely agree,” mentioned Michael Schmidt, vice chair of the legislation agency’s Labor and Employment Division.
Noncompete ban
The Federal Commerce Fee is at the moment pursuing an enchantment of a Texas district courtroom’s determination to strike down its ban on noncompete agreements in employment contracts. It is the second such enchantment for the FTC, which additionally appealed a Florida district courtroom’s determination to enjoin the ban in September.
Transferring ahead, the rule is probably going “lifeless within the water,” Michele Ballard Miller, chair of Cozen O’Connor’s West Coast Labor and Employment follow, mentioned — besides on the state degree. “California hasn’t acknowledged noncompetes in years,” she famous.
Schmidt and Barron agreed.
“They’ll withdraw that enchantment, and that will probably be it,” Barron predicted. “It’ll die a quiet demise.”
