Labor and Compliance Updates for Q2 2024

Discover the latest in Labor Compliance laws as of June 2024. While our “Roundup” does not offer legal counsel, it strives to keep our customers informed about current industry challenges. For inquiries or further information, reach out to us at [email protected].

State and Local Laws

New York Paid Prenatal Personal Leave, effective January 2025

Effective January 1, 2025, every employer in New York is mandated to provide 20 hours of paid prenatal personal leave within any 52-week calendar period to all employees, irrespective of the company’s size. This leave encompasses pregnancy-related healthcare services, including examinations, procedures, consultations, and discussions with healthcare providers. Employees are entitled to take paid prenatal personal leave in hourly increments and will receive compensation at their regular rate or the minimum wage rate, whichever is higher. Unused paid prenatal personal leave does not necessitate payout upon an employee’s departure from their position.

Paid Prenatal Personal Leave operates independently from the state’s Paid Sick Leave law. Employers are prohibited from discriminating against or retaliating towards employees for taking prenatal leave and are obligated to reinstate them to their former position post-leave. Additional specifics regarding the implementation of this policy are anticipated to be forthcoming soon. Additional information can be found here.

New York Paid Lactation Breaks, effective June 2024 

Starting on June 19, 2024, every employer in New York, irrespective of the company’s size, must provide 30-minute paid breaks whenever an employee requires time to express breast milk, for up to 3 years post childbirth. Additionally, employees may utilize other paid breaks and mealtimes for expressing breast milk if longer intervals are necessary. The legislation does not stipulate the frequency with which employees can take these paid nursing breaks. Additional information can be found here.

Federal Law

DOL “Final Rule,” effective July 2024 and January 2025

On April 23, 2024, the U.S. Department of Labor unveiled a final ruling, increasing the minimum salary threshold for overtime exemptions pursuant to the Fair Labor Standards Act (FLSA). This rule pertains to employees qualifying for executive, administrative, and professional positions, along with certain highly compensated individuals (HCEs).

According to the DOL’s final rule, starting July 1, 2024, the minimum salary threshold will rise from:

$684 to $844 weekly ($35,568 to $43,888 annually)
$107,432 to $132,964 annually for HCEs

On January, 2025, the standard salary level will rise from:

$844 to $1,128 weekly ($43,888 to $58,656 annually)
$132,964 to $151,164 annually for HCEs

The new rule stipulates that these salary thresholds will undergo automatic adjustments every three years, starting on July 1, 2027.

While initially proposing changes to the special base rate for employees within the motion picture industry, the Department opted not to enact these adjustments. Instead, the Department intends to address this matter concerning the special base rate in a forthcoming final rule.

Please note that certain states require employers to comply with stricter state-law exemption requirements.

Additional information about the new rule can be found here.

International Law

Bill 149 Ontario Vacation Pay, effective June 2024

Starting June 21, 2024, any Ontario employer choosing to distribute vacation pay in a method other than a lump sum before an employee’s vacation must have a written agreement. Currently, the Employment Standards Act stipulates that vacation pay must be disbursed as a lump sum before the commencement of the vacation. However, employers have the flexibility to pay vacation pay at an alternative time, provided there is mutual agreement between the employer and the employee. Bill 149 reinforces the requirement for a formal written agreement between the employee and the employer for any alternative payment arrangements. Additional information can be found here.