What’s a busy HR professional to do now? You were so looking forward to spending the holidays planning for compliance with the Department of Labor (DOL)’s new overtime rule and then it got struck down (thanks Texas judges!) Now, what to do with all those empty hours?
How about working on a checklist of HR items for the New Year? A few include:
- Review your company’s classification of its exempt/non-exempt employees. Despite the DOL’s proposed increase to the salary thresholds for exemption status being struck down, the classification of employees as “exempt” under the FLSA is still a risk area for employers. Take some time in 2025 to ensure that your exempt employees’ actual day-to-day work meets the duties test of the exemption that you are claiming, i.e. executive, administrative, professional, etc.
- Update your employee handbook and make it more user-friendly while you’re at it. Yes, we know this is one of those tasks that frequently gets back-burnered, but employee handbooks are a critically important tool for conveying your company’s policies and practices and for attracting and retaining key talent. So, take some time in 2025 to update and, where possible, “modernize” your handbook into something that employees will actually pick up and read.
- Review your use of non-competition and non-solicitation agreements. Despite the fact that the Federal Trade Commission’s rule that would have essentially banned the use of such agreements was struck down, the use of such agreements is still an area of legal exposure for employers. Take the time in 2025 to assess your company’s use of such agreements, the duration and scope of such agreements, and whom within the company you intend to have sign such agreements.
- Review your use of independent contractors and update your independent contractor agreements. With the Trump administration taking office in January, we expect to see some changes in the rules around when an employer can properly classify a worker as an “independent contractor.” Keep an eye on any developments in this area and take time in 2025 to assess, and update where needed, your independent contractor agreements.
This checklist for 2025 may seem like “old news,” but each of these HR “to-do” items is an important building block for developing and maintaining an engaged, effective, and legally compliant workplace.
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