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Legislative Updates
Welcome to the Legislative Updates section!
Here, you’ll find essential resources and timely information to keep you informed about the latest legislative changes affecting the workplace. Whether it’s new employment laws, regulations, or policy updates, we’ve got you covered.
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Check back regularly for insights, analysis, and practical guidance to navigate the evolving landscape.
Stay ahead of the curve with our reliable updates and resources. Your compliance matters, and we’re here to help you stay informed.
Court Blocks Overtime Salary Rule
Posted: 11/18/2024
On November 15, 2024, the U.S. District Court for the Eastern District of Texas struck down the U.S. Department of Labor's (DOL) regulation that increased the salary threshold for the "white collar" overtime exemption under the Fair Labor Standards Act (FLSA). The court ruled that the regulation exceeded the DOL's authority and vacated it nationwide.
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This decision means that the planned increase in the overtime threshold, which was set to take effect on January 1, 2025, will not happen. The court also nullified the increase that took effect on July 1, 2024, and deemed the rule's automatic updates every three years unlawful.
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Employers who adjusted salaries based on the now-invalidated July 1 increase should consult with legal counsel before making any changes. Additionally, some states have higher salary thresholds than the FLSA, so employers should remain aware of state-specific requirements.
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The DOL may appeal the decision, but with the upcoming change in presidential administration, it is likely that the new leadership will not pursue an appeal. Littler’s Workplace Policy Institute will continue to provide updates on this matter.
MN Paid Leave
10/27/2024
To determine eligibility and benefit payments for Minnesotans when Paid Leave launches in January 2026, Minnesota employers need to report wage details for their employees starting October 31, 2024. Paid Leave will use the same online reporting system as Unemployment Insurance (UI) to make things easier for employers. No additional steps are needed from Minnesota employers if all of their employees are covered by UI, as the same account and quarterly wage detail reports will serve Paid Leave. If an employer has some or all of their employees not covered by UI they may need to create an account to submit wage details by October 31, 2024.
Expansion of Drug Benefits Under Medicare Part D
10/27/2024
If you have employees over age 65, please be aware that starting in 2025, Medicare Part D will undergo significant changes as a result of the Inflation Reduction Act of 2022.
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These changes are designed to offer better protection to Medicare enrollees but could impact whether your current employee health plan is deemed “creditable.” Creditable coverage means that your prescription drug coverage is expected to pay, on average, as much as the standard Medicare Part D plan.
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All health plan sponsors that offer prescription drug coverage to Part D-eligible individuals must provide an annual notice to Medicare-eligible employees by October 15 each year informing them whether the prescription drug coverage offered under their plan is creditable. If your coverage is no longer creditable, your employees over the age of 65 may be facing lifetime premium penalties when they leave coverage in the future to enroll in Medicare.
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Recommendations for action include requesting a review from your insurance provider to determine whether your current group health coverage will remain creditable in 2025. If your current plan is not projected to meet the creditable coverage standard in 2025, you may need to consider making adjustments to your employee health plan.
DOL/OSHA Heat Guidelines
10/27/2024
The U.S. Department of Labor has published its proposed standard for heat injury and illness prevention in outdoor and indoor work settings, setting Dec. 30 as the due date for public comments. OSHA recently issued the proposed rule, which is now open for public comment upon its publication Aug. 30 in the Federal Register. The proposed standard would apply to a range of sectors—such as construction and agriculture—that have both indoor and outdoor work areas. The nationwide plan would require employers to implement a heat emergency response and planning procedure, as well as heat trigger requirements.
2024 Amendments to the Minnesota ESST Statute
6/6/2024
In the closing minutes of the 2024 legislative session, the Minnesota Legislature passed a 2,800 page bill that included several significant changes to the Minnesota’s Earned Sick and Safe Time (ESST) law. The law made several significant changes to the ESST statute that are effective immediately and a significant change to PTO policies that is effective January 1, 2025.
FLSA: Final Overtime Rule
Posted: 4/29/2024
On April 23, 2024, the U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees increasing the Fair Labor Standards Act's (FLSA's) annual salary-level threshold for executive, administrative and professional exemptions to overtime requirements.
To be exempt from overtime under the FLSA's “white collar” exemptions employees must be paid a salary of at least the threshold amount AND meet certain duties tests.
The final rule makes the following changes:
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On July 1, 2024, the standard salary level will equal $844 per week ($43,888 annually) and HCE total annual compensation level will equal $132,964.
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On January 1, 2025, the standard salary level will equal $1,128 per week ($58,656 annually) and the HCE total annual compensation level will equal $151,164.
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Starting July 1, 2027, the US Department of Labor will automatically increase the overtime threshold every three years.
Current MN House & Senate Bills Impacting Employment in the Near Term
Posted: 3/18/2024
MN SHRM State Council Legislative Director, Cory Genlin, compiled a Background Education Paper to offer valuable insights and guidance related to employment matters within the state of Minnesota.​
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This resource provides essential information on the latest legislative developments affecting employment practices in Minnesota. Take a closer look and stay informed about the evolving landscape of employment laws and regulations.
ESST Rule-Making Comments
Posted: 3/18/2024
The MN DEED Paid Leave division is conducting rulemaking as part of the program rollout. They’ve published a Request for Comments to gather feedback on potential new rules for the Paid Leave program. This is your chance to provide input and influence upcoming rule changes for 2026.
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Share your comments through the Office of Administrative Hearings website.
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West Central MN SHRM Board Legislative Director
Amy Wischmann, WMCN SHRM Legislative Director, graciously delivers legislative updates to our chapter.
She diligently researches critical topics and ensures they receive the attention they deserve.
We are fortunate to have such a dedicated member on the WCMN SHRM board!
Amy Wischmann, SHRM-SCP
Legislative Director