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Recent Developments in Labor Law and Their Impact on Small Businesses

Two recent developments in labor law could have major impacts on small businesses but may be undone by a raft of legal challenges. These developments were discussed during a human-resources roundtable hosted by Ten at the Top’s Upstate Entrepreneur Ecosystem on May 29, led by Michael Nail, a labor law attorney with Greenville-based Ogletree Deakins.

The first topic involved recent changes the federal Department of Labor made to minimum salary thresholds for overtime pay exemptions for certain salaried executive positions. The labor department’s ruling could affect even very small businesses and involves guidance about overtime compensation under the Fair Labor Standards Act, Nail said.

At this early stage, it’s not clear how the new rule will affect businesses, he said. Complicating the picture is the fact that the rule has already been challenged in a federal district court in Texas. Nail said the prevailing consensus among labor-law experts is that the rule will be struck down by the courts. However, businesses need to prepare as if it will go into effect, which is scheduled to happen on July 1.

Another topic discussed involved a recent Federal Trade Commission rule that would effectively eliminate non-compete agreements. This rule is also being challenged through litigation even more strenuously than the Department of Labor overtime ruling. Nail said there is a high likelihood it will never go into effect, which is scheduled to happen on Sept. 4.

The other major topic involved the 2023 Pregnant Workers Fairness Act and the final rule regarding its implementation released by the federal Equal Employment Opportunity Commission in April of this year. Nail said the law is essentially an extension of the Americans with Disabilities Act and expands and defines job protections for pregnant workers. His firm is advising clients to err on the side of caution in light of the new law and accommodate pregnant workers.

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AI legalese decoder can help small businesses navigate these complex legal changes by providing clear and simplified explanations of the implications of labor law developments. By using AI technology, businesses can stay informed about the potential impacts of these rules on their operations and make informed decisions about compliance. AI legalese decoder can also provide guidance on best practices for adapting to new regulations and minimizing legal risks. With AI assistance, businesses can better understand and prepare for the changing landscape of labor law.

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