Workplace Compliance News & Resources
Get the latest safety and workplace compliance news and resources from the federal, state, and local government levels. Below you’ll find late-breaking news, an interactive state map, the latest federal news, and minimum wage changes.
We try to keep it easy to understand and give you some general considerations on what to do, but we always recommend that businesses seek legal counsel for further advice and guidance on your particular situation.
Wherever available, KPA products are updated with the latest government notices and posters for employers.
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Who: All employers
When: Effective immediately
The Fair Labor Standards Act (FLSA) minimum compensation thresholds required to exempt certain employees from FLSA overtime regulations (so called “white collar exemptions”) were set to increase on January 1, 2025. The threshold was going to increase to $58,656 per year for executive, administrative and professional employees and $151,164 per year for highly compensated employees.
The State of Texas and a coalition of trade associations and employers contended that the increase exceeded the U.S. Department of Labor’s (DOL’s) authority. On Friday November 15, 2024, the U.S. District Court, Eastern District of Texas, Sherman Division, ruled in favor of the plaintiffs, thus vacating the white-collar overtime exemptions that impact employers nationwide.
The ruling also invalidates the first overtime rule increase that occurred on July 1, 2024, and the automatic increase that is supposed to occur every three years. The 2019 compensation thresholds now apply, which are $35,568 annually ($684 per week) for executive, administrative and professional employees and $107,432 for highly compensated employees returns.
There are several implications for employers and employees, and employers should consider the impact on morale, retention rates, and ability to recruit before making changes. They should also consult with legal counsel before taking action. Employers may have already increased their employees’ salaries in advance of January 1, 2025, to comply with the scheduled increase and have to decide whether to roll those changes back. Employers may need to reclassify their employees if their salaries are below the 2019 overtime threshold. Employers have the option to roll back their salary level and exempt status classifications from July 2024. Employers must also consider the impact of statewide laws that apply different overtime exemption thresholds.
How:
- Consult with legal counsel before taking further action to alter employees’ salaries or change their exempt status.
- Communicate any changes you are going to make to employees in writing.
- Monitor for an appeal by the DOL.
Additional Resources:
Who: Federal contractors
When: Effective January 1, 2025
Effective January 1, 2025, a new minimum wage applies to federal contracts entered into prior to January 30, 2022, that are still in effect without having been modified, renewed, or extended. The wage increase is mandated by Executive Order 13658, which President Obama signed on February 12, 2014.
The minimum wage for non-tipped employees of federal government contractors performing work associated with the covered contracts will increase from $12.90 per hour to $13.30 per hour. The minimum wage for tipped employees of federal contractors will increase from $9.05 per hour to $9.30 per hour.
How:
- Review your existing and upcoming federal contracts to determine which ones are covered.
- Adjust your budget and payroll systems and processes to reflect the new minimum wage for affected employees.
- Ensure your subcontractors comply with the new minimum wage requirements.
- Monitor for the release of the updated Workers’ Rights Under Executive Order 13658 Federal Minimum Wage for Contractors poster and post in the workplace.
Additional Resources:
Executive Order 13658, Establishing a Minimum Wage for Contractors: Annual Update
Who: Federal contractors
When: Effective January 1, 2025
Effective January 1, 2025, a new minimum wage applies to federal contracts entered into after January 30, 2022, and existing contracts that were modified, renewed, or extended after that date. The wage increase is mandated by Executive Order 14026, which President Biden signed on April 27, 2021.
The minimum wage for employees of federal government contractors performing work associated with covered contracts will increase from $17.20 per hour to $17.75 per hour. Executive Order 14026 phased out contractors’ ability to claim a tip credit. Thus, tipped employees are subject to the new minimum wage of $17.75.
On September 26, 2023, the U.S. Court of Appeals for the Fifth Circuit issued an injunction barring application of the mandated wage increases to federal contracts held by the state governments of Louisiana, Mississippi, and Texas.
How:
- Review your existing and upcoming federal contracts to determine which wage rate applies and adjust your budget and payroll systems and processes to reflect the new minimum wage for affected employees.
- Ensure your subcontractors comply with the new minimum wage requirements.
- Monitor for the release of the updated Workers’ Rights Under Executive Order 14026 Federal Minimum Wage for Contractors poster and post in the workplace.
- Monitor for additional state challenges to the law.
Additional Resources:
State of Texas Blocked EO 14024 (September 23, 2024)
Final Rule: Increasing the Minimum Wage for Federal Contractors (Executive Order 14026)
2025 Minimum Wage Updates
KPA tracks state and local minimum wage changes for our Vera HR customers, providing them with updated labor posters and more.
Check out the latest minimum wage changes for 2025, typically updated in December and June to ensure you know about the majority of increases before taking effect on January 1 and July 1.
Resources for Success
OSHA Reporting Resource Hub
If regulatory paperwork makes your head spin, have no fear—the workforce safety and compliance professionals at KPA are here to help.
We’ve created this resource hub chock full of OSHA recordkeeping and reporting best practices to help keep your head on straight.
