May ’24 at-a-glance … regulations

Overtime extended, most noncompete agreements banned same day 

On April 23, the U.S. Department of Labor (DOL) announced its final overtime rule, raising the minimum salary threshold above which employees are exempted from overtime pay beginning Jan. 1, 2025. The rule also establishes a new mechanism to automatically increase the minimum salary threshold every three years.  

On the same day, the Federal Trade Commission (FTC) voted 3-2 to adopt the Noncompete Clause Rule that will prohibit most employee noncompete agreements with retroactive effect, except for existing noncompete provisions of senior executives. The final rule also will ban future noncompete agreements, including for senior executives, with limited exceptions. This rule, which FTC estimates could impact one in five American workers, takes effect Sept. 4.  

The National Association of Manufacturers (NAM) and U.S. Chamber of Commerce have already filed suit to block the noncompete Clause Rule.