Compliance Stuff

The federal government is working on business-friendly changes to rules covering independent contractor arrangements and overtime pay requirements, but California employers may not reap the benefits. Employers in the Golden State are subject to labor and employment rules that are stricter or more protective for employees than federal laws, and navigating compliance can be tricky . This Insight will walk you through everything you need to know about recent federal wage and hour changes, the unique rules that impact your California operations, and your five-step action plan to avoid costly mistakes. Quick Federal Recap There are two big rules brewing from the US Department of Labor (DOL) that employers across the country should be tracking: The DOL is advancing a rule to modernize its approach to determining whether a worker is an independent contractor or employee under federal wage laws. If finalized, the proposal from the Trump administration will make it easier for businesses to e...

As we pass the halfway point of 2025, there has already been a flurry of legislative changes and court decisions that have changed the landscape of Texas employment laws. With several of these laws already in effect, and others becoming effective on September 1, 2025 , now is the time for Texas employers to become informed of these changes and take appropriate action to comply with these new developments. Key changes include:  1. “Ban the Box” Legislation (HB 2466) With respect to the hiring process, effective September 1, 2025, Texas will join 37 states which prohibit employers from inquiring about an applicant’s criminal history on its job application. The Equal Employment Opportunity Commission (EEOC) has long taken the view that “banning the box” will prevent job applicants with prior convictions from being automatically excluded from job opportunities. 2.  Expansion of Protections for Gig Workers and Independent Contractors New guidance from the Texas Workforce Commissi...

Takeaways When analyzing employment status under the FLSA, DOL investigators will apply previous subregulatory guidance, instead of the 2024 independent contractor final rule, including a 2019 opinion letter addressing independent contractor status and a 2008 fact sheet. Several lawsuits challenging the 2024 final rule are pending but the litigation is on hold as the DOL considers whether to rescind the rule. For now, the 2024 final rule remains in effect “for purposes of private litigation.” Related links Labor Department Releases Independent Contractor Final Rule, Revising Standard Employers Still Need to Abide 2024 Independent Contractor Rule Despite DOL Hints of Dropping It Field Assistance Bulletin No. 2025-1 Fact Sheet #13: Employment Relationship Under the Fair Labor Standards Act (FLSA) Wage and Hour Administrator  Opinion Letter FLSA2019-6 Gig Economy Virtual Marketplace Company Gets FLSA Nod in DOL Opinion Letter Article The U.S. Department of Labor (DOL) will no longer a...