How Can Employers Ensure Compliance with Evolving Labor Laws?

How Can Employers Ensure Compliance with Evolving Labor Laws?

This is a challenging time for employers trying to anticipate their legal needs. National labor policies may change abruptly within months. New Georgia laws and court cases could change the landscape. What’s more, a recent Supreme Court decision has rewritten the authority of federal agencies, and months or years of litigation will be necessary to understand what this changes for employers and their obligations under federal law.

Georgia businesses must stay abreast of regulations from at least two jurisdictions—the Georgia Department of Labor and the various federal agencies of the United States. This includes the US Department of Labor (DOL) and any agency that regulates their field.

The recent election will, of course, also result in broad new labor and employment policy shifts. However, too many factors are in play to determine immediately whether or not the shifts will effectively change actual laws and practices.

Compliance attorneys keep their eyes on the ball by following the regular updates of administrative rules and litigation in state and federal court, as well as trends and shifts in government policy.

Watching for Changes in Federal Employment Law

Changes at the Top

This year, the Supreme Court’s opinion in Loper Bright Enterprises v. Raimondo announced a sea change in federal lawmaking at the agency level. The Loper Bright case ended decades of a legal policy called Chevron deference, which was named after a case brought by Chevron. Federal labor and employment law will likely see significant changes from this decision, both for better and worse.

For many years after the Chevron case, courts deferred to federal agencies staffed by experts to interpret the laws that Congress created to guide agency policies. Many business litigants would prefer to take a dispute on legal interpretation to court rather than abide by an expert’s decision. In the Loper Bright case, the Supreme Court agreed and instituted this policy for the future.

What exactly does this mean for most businesses? In itself, the Loper Bright case does not actually change the rules. It simply gives litigants a new way to challenge them. Judges cannot rule for or against a law until a case is brought before them, and legal cases take years to reach final rulings. All we know is that many settled labor and employment laws could be unseated.

Federal Rules on the Move

In the meantime, federal agencies continue to institute new rules. One new concern for employers is a change to the EAP threshold rules. Executive, administrative, and professional employees (EAPs) are exempt from minimum wage and overtime laws. The DOL has changed this law to require a higher wage for EAPs, which will increase again in January 2025 and July 2027. See 29 CFR Part 541.

OSHA has recently proposed a rule to protect workers from excessive heat, both indoors and outdoors. See Docket No. OSHA-2021-0009. Employers in Georgia and other Southeastern states will need to closely watch any cooling or heat relief requirements. This rule is open for public comment until December 30, 2024.

Other Employment Law Trends

Georgia’s Concerns in the General Assembly

State legislatures set most key policies for employers and employees. Georgia’s General Assembly meets in January through March. In the last session, the governor signed new employment laws that include:

• Further election requirements to recognize unions for any employer accepting state initiatives (SB 362)
• Provision for administrative hearings under the Fair Practices Employment Act (HB 563)
• Creation of a High-Demand Career List to assess Georgia’s needs and allocate funding for education (HB 982)

Legislators also introduced bills that never reached a vote but may return in the future. Some of these would:

• Regulate the use of AI to prevent employment discrimination through AI usage (HB 890)
• Increase the minimum wage to $8 (HB 1507)
• End the practice of subminimum wage payments to disabled employees (HB 1125)

Current Disputes in Georgia Courts

Georgia state and federal courts are currently reviewing cases that may impact employment law. Recently, the Georgia Supreme Court determined that non-compete clauses do not necessarily require state geographic restrictions, clarifying a concern for many employers. See N. Am. Senior Benefits, LLC v. Wimmer (Ga. Sept. 4, 2024).

A recent Georgia federal court case clarified that under Title VII of the Civil Rights Act, an employer cannot decline insurance coverage for healthcare related to gender dysphoria. See Lange v. Houston County, No. 22-13626 (11th Cir.) However, the employer has appealed in this case.

The Georgia Fruit and Vegetable Growers Association joined a federal lawsuit against new rules governing H-2A visa holders, intended to provide further labor rights to foreign farm workers. The lawsuit has put these rules on hold in Georgia, and the new federal law policy may lead to their overturning. See State of Kansas v. US Dept. of Labor, 2:24-cv-00076 (S.D. Ga.)

Staying the Course

Changes in employment law are not always easy to predict, even if popular opinion assumes their outcome. Our management-side employment law firm keeps a sharp eye on what is actually happening and what actions our clients need to take to remain on the right side of the law. Contact us today at 770-282-8967 to schedule your initial complimentary strategy session in our Marietta offices.