On Friday, November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the federal Department of Labor’s (“DOL”) final rule (“Final Rule”) raising the minimum salary thresholds for the Fair Labor Standard Act’s (“FLSA”) white collar overtime exemptions.  Although it is a decision of a trial level court, and therefore subject to appeal, the decision presently applies nationwide.  This means that the pre-July 1, 2024 white-collar exempt salary thresholds have been reinstated and, unless the legal landscape changes, the January 1, 2025 salary increases to the salary exempt thresholds will not take effect. 

Continue Reading U.S. District Court Vacates DOL’s Rule Increasing Salary Levels for Exempt Employees

By Andrea Hellrigel, Law Clerk

The Massachusetts Department of Family & Medical Leave (DFML) has announced the rates for the Massachusetts Paid Family & Medical Leave (PFML) program for 2025, which will take effect on January 1, 2025.

For employers with 25 or more employees, the overall maximum PFML contribution for 2025 will remain unchanged at 0.88% of eligible wages. This includes a Family Leave contribution of 0.18% and a Medical Leave contribution of 0.70%. Employers are required to cover a minimum of 60% of the Medical Leave contribution but can deduct up to 40% of this contribution from employees’ wages. Additionally, employers can deduct 100% of the Family Leave contribution from employees’ wages.

Continue Reading 2025 Massachusetts Paid Family & Medical Leave Rate Increases

As we have previously written, on August 20, 2024, a Texas federal district court issued an order setting aside the Federal Trade Commission’s (FTC) sweeping proposed rule that would ban and render unenforceable most non-compete clauses in employment agreements.  The FTC is now appealing that district court order.  Specifically, on October 18, 2024, the FTC filed its notice of appeal, such that this suit will be heading before the federal Fifth Circuit Court of Appeals for further litigation regarding the validity of the FTC’s proposed rule.  The appeal will likely play out in the coming months, and our attorneys will continue to monitor and provide updates as the proceedings unfold.

If you would like to learn more about the FTC’s proposed rule, visit our website for resources, articles, and recent announcements. Click here.

Massachusetts Governor, Maura Healey, recently signed into law a new statute under broader legislation titled “An Act promoting access to midwifery care and out-of-hospital birth options” that entitles Massachusetts employees to earned sick time if the employee suffers a pregnancy loss or experiences a failed adoption, assisted reproduction, such as in vitro fertilization, or surrogacy.

Continue Reading Massachusetts Implements New Law that Expands Covered Sick Time to Include Pregnancy Loss and Failed Adoption, Assisted Reproduction and Surrogacy

The highest state court in Massachusetts, the Supreme Judicial Court (“SJC”), recently declared that the Massachusetts Paid Family and Medical Leave Act (“PFMLA”), General Laws c. 175M, does not require an employer to guarantee the accrual of vacation and sick time during an employee’s PFMLA leave. Among other things, PFMLA gives eligible employees the right to take paid leave to bond with their child during the first year after the child’s birth, adoption, or placement in foster care.

Continue Reading Massachusetts Supreme Judicial Court Finds that the Paid Family and Medical Leave Act Does Not Require an Employer Guarantee the Accrual of Vacation and Sick Time While the Employee is on Leave  

The Massachusetts Appellate Division of the District Court – North District recently issued a decision regarding whether retention bonuses constitute wages under the Massachusetts Wage Act, G.L. c. 149, § 148 (the “Wage Act”). In the matter of Nunez v. Syncsort Incorporated, NO. 23-ADCV-63NO, the court ruled that retention bonuses are not wages under the Wage Act and not subject to strict liability or treble damages under the Wage Act for failure to be timely paid.

Continue Reading Court Rules Retention Bonuses Are Not Wages Under Massachusetts Wage Act

The IRS recently issued a new fact sheet to answer certain FAQs about the rules in SECURE 2.0 Act of 2022 (the “Act”) that give special rights under certain qualified retirement plans and IRAs to individuals impacted by major disasters that occur or occurred on or after January 26, 2021. The Act was enacted in December 2022 and amended certain sections of the Internal Revenue Code (the “Code”).

These FAQs provide guidance on what the relief consists of, who may claim such relief, and when such relief may be claimed. Relief of this nature has previously been provided on a disaster-by-disaster basis. These amendments make such relief permanent. The FAQs may be found here.

Continue Reading IRS Releases Guidance on Disaster Relief Under Qualified Plans and IRAs

The Massachusetts Department of Industrial Accidents recently announced that it has revised the workers’ compensation Notice to Employees poster and has established new notice requirements.

Continue Reading MASSACHUSETTS ISSUES NEW WORKERS’ COMPENSATION NOTICE THAT MUST BE POSTED BY SEPTEMBER 16

This year’s Massachusetts Employment Law Update presented by McLane Middleton’s employment attorneys will take place on Thursday, October 10, 2024 from 8:00a.m. to 12:30p.m. at the Crowne Plaza in Woburn. This half-day event will provide important legal updates relating to the human resource function of business. Join our employment attorneys in discussing the latest trends in employment law as we prepare you to manage your workforce in the coming year.

Continue Reading 2024 Massachusetts Employment Law Update

Last week brought a major development in litigation surrounding the FTC’s sweeping rule that would ban and render unenforceable most non-compete clauses in employment contracts. Specifically, on August 20, 2024, the U.S. District Court for the Northern District of Texas in Ryan LLC, et al. v. FTC issued an order setting aside the FTC’s rule nationwide, meaning that the rule will no longer become effective on September 4, 2024 as scheduled.  

Continue Reading Texas Federal Court Sets Aside the FTC’s Rule Banning Non-Competes, With the Court’s Order Having Nationwide Effect