Webinar Recap | July Summer Roundtable

For this year's second summer roundtable, Adams Keegan’s advisors Charles Rodriguez, Amanda McCollum, Natasha Benda, and Brandon Roland held a discussion for our July webinar. They covered various topics, including compliance updates, employee separation, handling workplace grievances, and more.

Missed the conversation on July 25? Click here to check it out.

Compliance updates for July
The National Labor Relations Board's (NLRB) Joint Employer Rule, which sought to broaden the definition of joint employer relationships, was vacated by a Texas federal court in April. The NLRB subsequently withdrew its appeal, reaffirming the traditional requirement of actual control over employees to establish joint employer status.

The Federal Trade Commission's non-compete ban aimed to eliminate most non-compete agreements, with narrow exceptions. However, a Texas court partially blocked its enforcement, while a Pennsylvania court upheld it. Employers should stay alert as the final decision, expected by September 4, could have nationwide implications.

New York City recently introduced a bill requiring employers with 25 or more employees to report detailed pay data starting February 1, 2025. Meanwhile, effective August 28, 2024, New York mandates that businesses offer freelance workers a written contract if the work value meets $800.

The Department of Labor's new rule on exempt salary minimums took effect on July 1, 2024, raising the threshold to $844 per week. This will further increase to $1,128 weekly by January 1, 2025. Employers must ensure compliance not only with the salary threshold but also with the exemption status requirements, as failure to do so could result in the reclassification of employees.

Best practices on separation letters
When providing a separation letter, it is best for employers to keep it concise and factual. In states with specific requirements, ensure compliance by including necessary details such as the employee's name, termination date, and employer information. Avoid providing a detailed explanation or justification for the termination – a brief statement suffices and minimizes potential disputes and legal risks. Additionally, include information on final pay, paid time off payouts, benefits, and post-employment access to company resources. Prioritize clarity and transparency without over-explaining, maintaining a professional tone throughout.

Common missteps in handling grievances
When addressing employee grievances, it's crucial to avoid common pitfalls that can undermine the process. One frequent misstep is redirecting the grievance, either by sending them back to the problematic manager or suggesting they use another channel without offering immediate support. Both overreacting and underreacting can be problematic. Properly handling grievances involves promptly acknowledging the complaint, thoroughly gathering information, listening to the employee, and clearly communicating the process and resolution to all parties involved.

Retirement plan updates: SECURE 2.0
Building on the Secure Act of 2019, SECURE 2.0 seeks to enhance retirement savings opportunities. Effective January 1, 2024, it introduced key changes for employers. Notably, those with 11 or more employees must automatically enroll them at a 3% contribution rate, with an annual 1% increase up to 10%. Employers must also provide a mechanism for employees to opt out. Moreover, part-time workers now have lower eligibility thresholds.

While these provisions aim to bolster retirement savings, they pose significant administrative challenges. Employers should begin preparing now, considering both the administrative and communication aspects, and consulting with service partners to navigate these changes effectively.

The team also discussed best practices for discussing politics in the workplace, Employer Practices Liability Insurance (EPLI), and rules for running background checks on candidates.

Tune in to the full webinar and give yourself about 45 minutes to take a deep dive into the conversation.