In 2023, the National Labor Relations Board (NLRB) rolled out a new joint employment rule effective starting December 26, 2023. This rule allows two or more entities to be joint employers if they have a say in crucial employment terms.

However, a common misconception leads many companies to set time limits for contractors – for instance, permitting a consultant to work for only two years and then mandating a six-month break before rehiring.

It’s vital to understand that the NLRB considers these time limits less significant than other factors. In this blog, we’ll explain why it’s crucial to adopt a more comprehensive approach instead of attempting to manipulate how an individual’s employment is perceived.

 

“Adopt a more comprehensive approach instead of attempting to manipulate how an individual’s employment is perceived.”

 

 

Minimum Wage Increase in Missouri 

Missouri’s minimum wage increased to $12.30 per hour on January 1, 2024, in accordance with the voter-approved 2018 measure (Proposition B). The measure aimed for gradual increases leading up to $12 per hour in 2023, with subsequent annual adjustments based on the Consumer Price Index.  

Discussions surrounding this wage hike suggest a more noticeable impact on companies primarily involved in commercial and light industrial sectors. However, TriCom’s IT professionals, who constitute the majority of our consultants, remain largely unaffected as their current earnings already surpass the minimum wage.

 

Challenging the Status Quo: Joint Employer Rule 2024

The guidance, while not explicitly labeling clients of staffing firms as joint employers, introduces a nuanced perspective. It suggests that if a client significantly shapes the work and employment terms of a worker provided by a staffing firm, particularly when the work is integral to the client’s business and on their premises, the client and staffing firm might be considered joint employers. 

What adds complexity to this rule is the intricate 20-Factor Test used to determine a person’s employer status. Attempting to simplify this assessment by focusing on isolated factors, like limiting a consultant’s work time for non-employee status, may prove impractical. This is especially true for professionals in fields like IT, where stability is highly valued.

 

“Our commitment to clients goes beyond acknowledging regulatory changes. We prioritize client protection by providing comprehensive healthcare benefits and robust support.“

 

Reflecting on historical context, such as Microsoft’s challenges with employee reclassification, guides our approach. Today, most companies are well-protected, having learned from past mistakes, reducing the likelihood of facing challenges related to consultant benefits. 

As we navigate 2024, our focus remains on safeguarding clients’ interests, adapting to regulatory shifts and ensuring our practices align with industry standards for a stable and compliant work environment.

Our commitment to clients goes beyond acknowledging regulatory changes. We prioritize client protection by providing comprehensive healthcare benefits and robust support.

Paid Leave Updates

Paid leave laws are gaining momentum nationwide, prompting employers to adapt policies to evolving state and local regulations. TriCom’s implementation of unlimited paid time off not only improves work-life balance but also streamlines accounting processes by eliminating the need for meticulous tracking of paid time off as a balance sheet benefit. This efficient accounting approach is increasingly popular among companies.

Amidst these paid leave updates, employers are urged to understand specific acts, such as the Pregnant Workers Fairness Act (PWFA). Enforced from June 27, 2023, the PWFA mandates covered employers (those with at least 15 employees) to provide “reasonable accommodations” for workers with known limitations related to pregnancy, childbirth or related medical conditions, unless it causes “undue hardship.”

Examples of reasonable accommodations include flexible hours, seating arrangements and bathroom breaks. Covered employers must avoid discrimination, engage in accommodation discussions and navigate federal laws like Title VII and the Americans with Disabilities Act.

 

Examples of Reasonable Accommodations Mandated by PWFA

Flexible Hours	Seating Arrangements	Bathroom Breaks

 

The PWFA also addresses retaliation and interference, underscoring the importance of fostering a positive and supportive work environment. Employers are encouraged to stay knowledgeable about these regulatory changes, seek legal guidance when necessary and proactively adjust policies. This approach not only ensures compliance with the law but also contributes to creating a workplace that supports and uplifts all employees.

 

“Staying informed through industry associations and leveraging insights from staffing association general counsels is crucial in navigating the complexity of the 20-Factor Rule.“

 

Raising the Exempt Salary Threshold

The Department of Labor’s proposed increase in the exempt salary threshold aims to uplift minimum earnings and provide clarity on overtime exemption criteria. At TriCom, we embrace this change, recognizing it as a positive step for companies to attract and retain skilled labor, fostering enduring relationships with employees. 

Employers must consider adjustments to salary structures and monitor overtime eligibility impacts. Staying informed through industry associations and leveraging insights from staffing association general counsels is crucial in navigating the complexity of the 20-Factor Rule. 

Considering the trend of setting term limits for contractors, we advise companies to reassess the necessity of such limits, especially for consultants contributing for an extended period. Transitioning such individuals to full-time employees may be advantageous, while still maintaining consulting arrangements for roles and resources that prefer them, without exposing companies to joint employer issues.

 

“Transitioning such individuals to full-time employees may be advantageous, while still maintaining consulting arrangements for roles and resources that prefer them, without exposing companies to joint employer issues.“

 

Anticipated 2024 Employment Law Trends 

As we move into the latter half of 2024, we expect notable regulatory changes in the employment landscape. The potential challenges stem from economic conditions, particularly in the tech sector, and are further complicated by uncertainties related to the upcoming presidential election. However, despite these challenges, we maintain an optimistic outlook, as there is currently no indication of a complete economic recession. 

Looking forward, state-level initiatives in pay transparency and continued paid time off legislation are expected to gain momentum. States are likely to emphasize equitable compensation and enhance existing paid time off policies. We also expect national minimum wage increases, which could result in a better business environment when interest rates go down. Employers are advised to keep up to date, understand state-level dynamics and proactively adjust policies to successfully navigate these anticipated employment law trends.

 

Stay Vigilant, Stay Informed, Stay Adaptable

In 2024, as employment laws evolve, businesses need to stay vigilant and adapt to ongoing changes. It’s crucial to stay updated with external resources, and at TriCom, we highlight the importance of not relying solely on internal counsel.

We recommend a balanced approach, urging businesses to verify opinions by consulting multiple external industry experts. This prevents being overly conservative or aggressive in rule implementation. Trusting but verifying is key, and cross-referencing insights from general counsel with industry experts provides a comprehensive perspective.

 

“Stay vigilant, stay informed and stay adaptable to thrive in the dynamic landscape of evolving employment laws.“

 

 

Recognizing the necessity for businesses to have a flexible and adaptable digital-age workforce, we conclude our exploration of 2024 employment law trends with a clear message: Stay vigilant, stay informed and stay adaptable to thrive in the dynamic landscape of evolving employment laws. 

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Disclaimer: This blog is for market awareness only and is not intended to provide legal advice or counsel. While efforts are made to ensure accuracy, readers should consult with legal professionals for specific situations, as regulations may change.