As the book closes on 2024 – and there will be books written about 2024! – it is a good time to look forward to 2025 and legal issues that may be front-and-center for employers in the new year. It should come as no surprise that such matters likely will be impacted by the presidential change, with the incoming administration likely to focus on returning to the employment law climate of President-elect Trump’s first term. The following are three topics to watch as we turn the calendar to 2025.
Exempt Employee Salaries – Many employers scrambled during the second half of 2024 to ensure compliance with the Department of Labor’s April 2024 final rule, which raised the minimum salary threshold for employees exempt from overtime under the Fair Labor Standards Act to $58,656, effective January 1, 2025. Following the presidential election, however, a Texas federal court struck down the rule, finding it exceeded the DOL’s authority and reinstituting a 2019 rule setting the minimum salary threshold at $35,568 annually.
While the Department of Labor could appeal the Texas decision to the Fifth Circuit Court of Appeals, such an appeal seems unlikely in light of the upcoming presidential administration change. The Trump administration may work to increase the minimum salary threshold, similar to the changes made in 2019 under the first Trump presidency, but it seems unlikely that any change would be as drastic as the nullified April 2024 rule.
Pregnant Workers – While the Pregnant Workers Fairness Act, which provides various pregnancy-related workplace protections, was passed in 2023, its implementing regulations were not in effect until June 2024. While many employers have taken steps to familiarize themselves with the new regulations and related compliance efforts, the true meaning and impact of federal regulations often is not fully understood until they are addressed and interpreted by the courts.
Such guidance may arrive in 2025, as the federal Equal Employment Opportunity Commission has filed suit in support of a Kentucky employee, alleging her employer failed to provide pregnancy-related accommodations. Other EEOC and private suits have also been filed, with interpretive decisions possibly arriving in the coming year. We will continue to track these lawsuits and other related developments, providing updates as they arise.
National Labor Relations Board – It is highly likely that sweeping changes to the National Labor Relations Board will be made following President-elect Trump’s inauguration. It seems a foregone conclusion that NLRB General Counsel Jennifer Abruzzo will be relieved of her duties and a pro-employer replacement will be nominated. Assuming that individual’s nomination is approved by the Republican-controlled Senate, he or she likely will immediately rescind the current pro-employee enforcement policies and guidance memoranda.
Although President-elect Trump had backing from certain labor-union leaders and increased votes from unionized employees, we can still anticipate pro-employer changes under President-elect Trump’s NLRB. Be prepared for changes on topics such as restrictive covenants like non-compete and confidentiality agreements, the scope of activity protected by the National Labor Relations Act, union election conduct, and others.
Your Renning, Lewis & Lacy team will be monitoring these, and many other, legal issues in the coming year and will be ready to assist our clients when developments occur.
