SuperVision - Labor & Employment Law Insights, Issue 4, December 2024

Carrie Grundmann, Julian Harf, Eric Iskra, Brienne Marco, Mitchell Rhein, Ellen Vance
Spilman Thomas & Battle, PLLC
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December 9, 2024

Welcome!

Happy Holidays and welcome to our year-end issue of SuperVision. In this edition, we are pleased to bring you the “Top Five” biggest labor and employment issues that will impact employers for the coming year along with articles updating you on the status of the Corporate Transparency Act and the DOL Overtime Rule, the NLRB and captive audience meetings, and what can be done about FMLA leave abuse.

 As always, thank you for reading. 

Top Five: The Biggest Labor & Employment Developments from 2024

By Carrie H. Grundmann

As we close out 2024 and look to 2025, I polled members of Spilman, myself included, to get their take on some of the biggest labor and employment developments from 2024 that have or will impact employers. You can find more details on these issues in prior editions of SuperVision. Many of these issues will continue to be relevant to employers as we move into 2025. Rest assured, we will keep an eye on these and other issues so that we can keep you updated on the legal and regulatory issues impacting your business.  

Click here to read the entire article.

Corporate Transparency Act Enjoined Nationwide

By Brienne T. Marco

On December 3, 2024, the U.S. District Court for the Eastern District of Texas preliminarily enjoined the enforcement of the Corporate Transparency Act (the “CTA”), finding that “the CTA is likely unconstitutional as outside Congress’ power.” A nationwide stay was also issued regarding the December 31, 2024 CTA reporting compliance deadline for business entities formed before January 1, 2024 and not exempt from reporting under one of the CTA’s exemptions.

The injunction is preliminary, and a final resolution will depend on appeals and further proceedings. If the government appeals (which could be affected by the second Trump presidency), the case will go to the U.S. Court of Appeals for the Fifth Circuit, and potentially the U.S. Supreme Court for a final resolution, with the stay on enforcement of the reporting rules likely to remain in effect throughout the appeals process.

Click here to read the entire article.

Texas Court Strikes Down DOL Overtime Rule: Analysis and Impact on Employers

By Julian F. Harf

On November 15, 2024, in Texas v. United States Department of Labor, a Texas federal district court struck down a U.S. Department of Labor (DOL) final rule that would have raised the minimum salary threshold for exempt employees, effectively making millions of employees eligible for overtime pay under the Fair Labor Standards Act (FLSA).

The DOL issued the Final Overtime Rule on April 23, 2024, which took effect on July 1, 2024, and raised the minimum salary threshold for exempt employees under the so-called white-collar exemptions from $684 per week or $35,568 per year to $43,888 per year as of July 1, 2024, and then proposed to raise it again to $58,656 per year effective January 1, 2025. The Final Rule would have also mandated increases every three years thereafter. With the recent ruling by the Texas federal district court, the January 1, 2025, salary increase will not go into effect and, in fact, the minimum salary necessary to satisfy the FLSA’s exemptions will revert back to $35,568 per year.

Click here to read the entire article.

NLRB Restricts Captive Audience Meetings

By Mitchell J. Rhein

In November 2024, in Amazon.com Services LLC, the National Labor Relations Board (NLRB) ruled that an employer violates the National Labor Relations Act (NLRA) when it requires employees to attend meetings in which the employer expresses its views on unionization. The Board’s decision overruled nearly 80 years of law that allowed employers to conduct meetings to assembled employees where it expressed its views on unionization, which are commonly called captive-audience meetings. Here’s what you need to know.

Click here to read the entire article.

Suspected Abuse of FMLA Leave: What Can be Done?

By Ellen J. Vance

The Family Medical Leave Act (the “FMLA”) entitles eligible employees of covered employers to take 12 (and in some cases related to military service, 26) weeks of unpaid, job-protected leave for specified family and medical reasons in a 12-month period. FMLA is intended to allow employees to care for sick family members, undergo and recover from surgery, obtain medical treatment, or spend time following the birth or adoption of a child. For many employers, however, managing FMLA leave and ensuring that employees are taking leave for legitimate reasons can pose challenges. This article explores the tools available to employers to manage FMLA leave and provides practical steps employers can take to combat abuse.

Click here to read the entire article.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Spilman Thomas & Battle, PLLC

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