Aspen Highlights & Updates
Sponsoring the iGlobal Value Creation Summit – Aspen HR is excited to sponsor and attend the upcoming iGlobal Value Creation Summit on June 4th in New York City! This event brings together senior-level executives in the Private Equity and Independent Sponsor communities for interactive panels, insightful thought leadership talks, and fireside chats.
A Culture That Thrives? We Got It! – We recently interviewed several Aspenites about why they love working at Aspen. See what they had to say about our inclusivity, support, and innovative approach by watching the video on our LinkedIn page.
Partner Spotlight
Meet Sparrow: Aspen’s HR End-to-End Leave Management Partner – Aspen has partnered with Sparrow to provide premium leave of absence services. Sparrow uses modern technology and a white glove approach to leave, making them a great partner for Aspen. Sparrow combines incredible concierge service and innovative technology to handle the most painful parts of leave management. The Sparrow partnership allows our clients to access to Sparrow services at discounted per-leave rates, exclusive to Aspen clients.
Sparrow provides complete leave administration, including federal and state leave programs and disability benefits. Sparrow will submit all employee leave paperwork, conduct general research and leave planning, and communicate directly with management, HR, and employees through a dedicated leave specialist. This will provide an incredible employee experience by allowing your employees to focus on the purpose of their leave.
Please contact us for more information about rates and implementation.
New Aspenites
Please join us in welcoming several new members to the Aspen HR family!
- Ken Monce, Senior Finance & Risk Manager
- Pilar Fanaselle, Client Integration Consultant
- Jordan Ustaszewski, Tax Specialist
HR and Legal Alerts!
Federal Trade Commission Votes 3-2 to ban Non-Compete Agreements – On April 23, 2024, the Federal Trade Commission (“FTC”) voted 3-2 to ban non-competition agreements nationwide. If this rule survives legal challenges, you will be prevented from entering into most new non-competes and prevented from enforcing most existing non-competes.
Additionally, you must provide explicit notice to both current and former employees that their non-compete agreements are no longer enforceable. The final rule does not apply to non-solicitation agreements, confidentiality, or non-disclosure provisions.
Once published, the final rule will take effect 120 days later. The first lawsuit to challenge the ban was already filed in Texas. The U.S. Chamber of Commerce also announced that it would file legal action to block the ruling.
There are two exclusions from the nationwide ban:
- Pre-existing non-competes with “Senior Executives” are not invalidated by the final rule. The regulation defines “Senior Executive” as a worker (a) in a policy-making position; and (b) earning an actual or annualized sum of $151,164 (through salary, bonuses, and/or commissions, but excluding fringe benefits, retirement contributions, and medical/life insurance premium payments).
- Non-compete clauses entered into with a seller of a business entity, so long as the sale involves the disposition of the person’s ownership interest in the business entity, or of all or substantially all of a business entity’s operating assets.
We recommend you take stock of your situation by taking an inventory of all existing non-compete agreements by creating a list of which a non-compete agreement binds current & former employees. You may also consider adjusting your employment agreements to strengthen or add other restrictive covenants to help fill in the potential gap.
DOL Final Overtime Rule – On April 23, 2024, the Department of Labor published the long-awaited Final Overtime Rules. Currently, the salary threshold for exempt employees is $684 a week ($35,568 annualized) under the administrative, executive, and professional exemptions — which are collectively known as the “white-collar” exemptions.
The DOL’s new rule raises the rate first on July 1, 2024, to $844 a week ($43,888 annualized), then on January 1, 2025, to $1,128 (or $58,656 a year). The salary threshold will be automatically updated every three years starting on July 1, 2027.
Additionally, the threshold for the “highly compensated employee” (“HCE”) exemption will rise, first to $132,964 on July 1, then to $151,164 on January 1, 2025. The HCE threshold will also be updated every three years.
How can you best prepare for the pending changes? It’s a good idea to start by creating a list of your exempt employees who currently earn between $35,568 and $58,656 a year. Aspen will assist with this process. We are currently auditing all payroll records and will reach out to you directly in the coming weeks if you have employees impacted.
If you have exempt employees who fall into this category, you must decide whether to raise their salary to meet the new threshold or convert them to non-exempt status. It is important to remember that other jurisdictions can have higher, stricter, or different wage and hour requirements.
Finally, we can expect legal challenges to oppose the final rule, which may delay implementation or nullify it entirely. In 2016, a federal court judge blocked the rule from taking effect days before it was set to take effect. We will continue to monitor the developments and provide updates as soon as they become available.
EEOC Releases Expansive Final Regulations for the Pregnant Workers Fairness Act – On April 15, 2024, the EEOC released its 408-page final rule and guidance on implementing the Pregnant Workers Fairness Act (“PWFA”). The PWFA, which has been in force since June 27, 2023, expands protections for qualified individuals in the workforce by requiring employers with 15 or more employees to make reasonable accommodations for known limitations of employees and applicants related to pregnancy, childbirth, or related medical conditions. The final rule was published on April 19, 2024, and will take effect on June 18, 2024. We have summarized the biggest developments below.
Expanded Coverage – The finalized rule contains a very broad definition of “pregnancy, childbirth, or related medical conditions.” A non-exhaustive list of possible circumstances that fall within the broad definition includes:
- current, past, and potential pregnancy;
- infertility and fertility treatment;
- the use of contraception;
- termination of pregnancy – including via miscarriage, stillbirth, or abortion;
- pregnancy-related sicknesses, ranging from nausea or vomiting to edema, from preeclampsia to carpal tunnel syndrome, and many other pregnancy-related conditions;
- lactation and issues associated with lactation;
- menstruation;
List of Possible Accommodations – The rule provides a long list of potential accommodations employers will need to consider, including:
- Job restructuring;
- Schedule changes, part-time work, and paid and unpaid leave;
- Frequent breaks;
- Acquiring or modifying equipment, uniforms, or devices;
- Making existing facilities accessible or modifying the work environment;
- Allowing sitting or standing (and providing means to do so);
- Light duty;
- Telework or remote work;
- Providing a reserved parking space;
- Temporarily suspending one or more essential functions; and
- Adjusting or modifying workplace policies
The PFWA guidance is extremely detailed. Please reach out to your HR Representative if you have any questions.\\
EEO-1 Portal Opens on April 30, 2024 – The 2023 EEO-1 Component 1 data collection window will open on Tuesday, April 30, 2024. The deadline to file is Tuesday, June 4, 2024. Private employers with at least 100 employees need to begin sorting data by employee job category, as well as sex and race/ethnicity, to turn over to the Equal Employment Opportunity Commission (“EEOC”) during the upcoming reporting window. If you are a qualified employer, your assigned Aspen HR Representative will reach out to assist with filing.
SCOTUS Says Forced Lateral Job Transfer Can Support Discrimination Claims – On April 17, 2024, the Supreme Court of the United States (“SCOTUS”) decided that employees do not need to suffer “significant” harm to state a claim of discrimination under Title VII.
Prior to this ruling, the level of proof needed was often limited to only those that involved “ultimate employment decisions,” such as hiring, firing, promotions, and compensation setting. Accordingly, the Court’s ruling may well mean that discrimination claims that would have failed in the past for lack of “tangible harm” will now be allowed to proceed.
Proposed California Bill Would Punish Employers for Contacting Employees Outside of Work Hours – The Right to Disconnect – Please note this is a proposed law and is not in effect. California is considering broad legislation that would grant nearly all employees the right to disconnect from their employers during nonworking hours. If passed, the bill would be the first of its kind in the United States.
Private employers of any size would be required to implement a workplace policy that gives employees the right to ignore most employer communications outside of their assigned hours of work.
Limited exceptions would permit employers to contact employees during nonworking hours if it involves:
- An emergency (defined as an unexpected event that disrupts or shuts down operations, causes physical or environmental damage, or threatens a customer, employee, or the public)
- A scheduling change impacting the next 24 hours
The State of New York Finalizes Budget – Implications for Employers – On April 20, 2024, the state of New York approved its 24-25 budget, which included three significant updates.
Paid Nursing Leave takes effect on June 19, 2024 – Currently, New York law grants employees reasonable unpaid break time at least every three hours or as otherwise reasonably requested by the employee. However, starting June 19, 2024, employers must provide paid 30-minute breaks for this purpose. Additionally, employees can utilize existing paid break time or mealtime for any period exceeding 30 minutes.
Prenatal Leave for pregnant Employees takes effect on January 1, 2025 – Employers will be required to provide employees with 20 hours of paid prenatal leave each year. This leave can be taken during pregnancy or for related medical appointments, procedures, tests, and discussions with healthcare providers. This leave is separate from the existing 40 or 56 hours of paid sick leave (depending on employer size) mandated by state law and can be used in hourly increments.
Ending COVID-19 Sick Leave on July 31, 2025 – Currently, employers are still required to provide paid time off for employees who are under a mandatory quarantine or isolation order due to COVID-19. This paid time off will end on July 31, 2025.
Have questions about these updates? Contact the Aspen HR team.
