Understanding the New FLSA Overtime Rule: Texas v. United States Department of Labor

This article is an update to “Understanding the New FLSA Overtime Rule: What Employers Need to Know.”

As you know, on April 23, 2024, the Department of Labor (DOL) issued a Final Rule modifying nationwide overtime rules under the Fair Labor Standards Act (FLSA). The Final Rule increased the salary thresholds in the salary level test for highly compensated and white-collar employees. Under the new Final Rule, salary thresholds for both highly compensated and white collar employees increased in two stages, with the first increase already occurring as of July 1, 2024, and the second increase set to occur on January 1, 2025.

On November 15, 2024, in State of Texas v. Dep’t of Labor, 24-cv-468-SDJ, the United States District Court for the Eastern District of Texas vacated the April 2024 Final Rule.

The district court’s ruling vacates the Final Rule in its entirety on a nationwide basis, including the portion of the rule that went into effect on July 1, 2024, as well as the further increase set for January 1, 2025. This effectively reverted the FLSA minimum threshold for white collar employees back to $35,568 and highly compensated employees back to $107,432.

In its decision, the district court recognized a two-month-old decision by the Fifth Circuit in Mayfield v. United States Department of Labor, 117 F.4th 611 (5th Cir. 2024), which upheld the 2019 increase. In Mayfield, the Fifth Circuit concluded that Congress had “explicitly delegated authority to define and delimit the terms of the [e]xemption.” However, while the Eastern District acknowledged Mayfield, it nevertheless concluded that, while the DOL has the power to impose some limitations on the scope of terms identified in the white collar exemption, it does not have the authority to “enact rules that replace or swallow the meaning those terms have.”

Significantly, the court also relied upon the recent U.S. Supreme Court decision in Loper Bright Enterprises v. Raimondo, stating that “[c]ourts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority.” 144 S.Ct. 2444, 2273 (2024). Loper Bright is the much-publicized case that overturned the Chevron doctrine, which required courts to defer to an agency’s interpretation of the law. As such, Texas may just be the tip of the iceberg when it comes to battles between courts and agencies.

The Texas court reasoned that while the DOL can use a minimum salary threshold, it cannot do so in a manner that disrupts the other factors considered for the above-described exemptions. Under the court’s interpretation, the April 2024 Final Rule disturbed the balance of other factors, effectively making “salary predominate over duties for millions of employees.”

While this decision may have national implications, it is unclear whether the DOL will appeal the decision. In the meantime, the April 2024 Final Rule sits in limbo. Now, the question on everyone’s mind is simple: “What do we do with employees whose salary we changed in order to comply with the July 1, 2024 increase?”

Shorter Path to Green Card: New USCIS Guidance for EB-1 Eligibility for Foreign Nationals With Extraordinary Ability

For foreign nationals with “extraordinary ability” in the sciences, arts, education, business or athletics, the path to a green card normally has a much shorter route. The EB-1 extraordinary ability category is a type of employment-based, first-preference visa that has several advantages for a “small percentage of individuals” positioned to prove their expertise within a specific area. As indicated by the elite immigrant visa category, an extraordinary amount of documentation is required to meet the high threshold for EB-1 eligibility.

To provide an example of the evidentiary criteria, this category reserved for individuals with extraordinary ability requires that individuals demonstrate extraordinary ability through sustained national or international acclaim. To do so, applicants must meet at least three of the 10 criteria, or provide evidence of a major one-time achievement, such as a Pulitzer Prize, Oscar, or Olympic medal. In addition, applicants must provide evidence showing that they will continue to work in the area of expertise.

More specifically, the applicant must provide evidence of at least three of the following:

  • Receipt of lesser nationally or internationally recognized prizes or awards for excellence
  • Membership in associations in the field which demand outstanding achievement of their members
  • Published material about the candidate in professional or major trade publications or other major media
  • Judgment of the work of others, either individually or on a panel
  • Original scientific, scholarly, artistic, athletic, or business-related contributions of major significance to the field
  • Authorship of scholarly articles in professional or major trade publications or other major media
  • Display of work at artistic exhibitions or showcases
  • Performance of a leading or critical role in distinguished organizations
  • Command of a high salary or other significantly high remuneration in relation to others in the field
  • Commercial successes in the performing arts

While U.S. Citizenship and Immigration Services (USCIS) has been consistent in detailing the criteria to be demonstrated, the specific evidence deemed acceptable has evolved over the lifetime of this visa category. Last September, USCIS updated its policy manual on employment-based first-preference (EB-1) immigrant petitions in the Extraordinary Ability classification. Specifically, USCIS provided examples of comparable evidence and the way in which USCIS will “consider any potentially relevant evidence.”

To further clarify the acceptable types of evidence, USCIS issued another policy manual update on Oct. 2. The most recent update provided additional clarification, stating:

  • “Confirms that we consider a person’s receipt of team awards under the criterion for lesser nationally or internationally recognized prizes or awards for excellence in the field of endeavor;
  • Clarifies that we consider past memberships under the membership criterion;
  • Removes language suggesting published material must demonstrate the value of the person’s work and contributions to satisfy the published material criterion; and
  • Explains that while the dictionary defines an “exhibition” as a public showing not limited to art, the relevant regulation expressly modifies that term with “artistic,” such that we will only consider non-artistic exhibitions as part of a properly supported claim of comparable evidence.

These clarifications likely will provide more consistency in the adjudication process.

This article was co-authored by Tieranny Cutler, independent contract attorney.

Department of Labor’s New Overtime Rule Overturned by Federal Court in Texas

On November 15, 2024, in State of Texas v. Dep’t of Labor, the US District Court for the Eastern District of Texas overturned a Department of Labor rule that would have increased the number of employees subject to the Fair Labor Standards Act (FLSA). The rule established by the Department of Labor in April of 2024 increased the minimum salary at which executive, administrative, and professional (EAP) employees are exempt from minimum wage and overtime pay under the Fair Labor Standards Act (FLSA). In their opinion, the court held that the Department of Labor’s 2024 rule should be overturned because it was an unlawful exercise of agency power that went beyond the scope of the authority granted to them by Congress.

Impact of the Ruling

The ruling in State of Texas v. Dep’t of Labor impacts the entire nation because it prevents the Department of Labor’s 2024 rule from going into effect. As a result, the minimum salary threshold reverts back to $35,568 per year for executive, administrative, and professional employees to be exempt from overtime pay. The Department of Labor can still appeal this decision but with the impending change of administration, they are unlikely to do so.

Still, employers should keep in mind that despite this ruling, states are allowed to set a higher minimum salary for exemption than the ones set by federal law. In Massachusetts, an employee has a right to overtime pay if they work more than forty hours in one week and are not on the list of exempted workers. In Rhode Island, the minimum weekly salary for exempt executive employees is $200 per week. However, employers cannot use the exemption unless the employees are paid at least the standard minimum wage if their salaries are computed on an hourly basis.

Practical Takeaways

In light of the court’s ruling law, employers should:

  • Review the job descriptions and salaries of your employees to see if they are exempt from the federal standards set forth in the Fair Labor Standards Act.
  • Review your state laws regarding overtime pay.

“Captive Audience” Bans: Employers Should Be Aware of This Trend

As organized labor activity has been on the rise in recent years and stories about union-related matters have become regular news, labor relations questions have ever-increasingly become front-of-mind for employers. It is also not crazy to think that unions that have been considering an organizing effort will decide in the next couple of months to roll the dice now in anticipation that federal labor policy will (again) radically shift following the results of last week’s elections.

What has not garnered as much attention as the Starbucks and other prominent unionization efforts is the effort to strip from employers one of their most effective tools in countering union efforts to organize: mandatory employee meetings where employers can address and rebut the kinds of sweeping promises common to a union sales pitch.

In the midst of an organizing campaign, and particularly so in the days leading up to a union election, employers have long used meetings with employees as an opportunity to communicate their views on unionization and share their position on the upcoming vote. And for good reason — such meetings are one of the most effective tools to respond to promises unions make to employees and educate workers on the fact that unions have the legal right to make all sorts of promises about things they know they cannot guarantee, while employers are constrained by law from making almost any promises to employees.

These meetings are also very important mechanisms to share information that most unions prefer to avoid discussing — like mandatory dues, how long first contract negotiations can take, the potential for union decertification, and a union’s ability to call employees out on strike and punish them if employees will not toe the picket line. Much like with meetings to discuss other topics such as safety concerns or policy changes, employers often make attendance at such meetings mandatory and compensate employees for their time at such meetings because their attendance is a job expectation.

Given the effectiveness of such meetings, if you’re a cynic like me, then perhaps it does not surprise you that political forces favoring unions want to prevent employers from conducting them. In April 2022, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memo announcing that she intended to push the NLRB to make legal rulings finding that employer mandatory meetings covering union-related and labor relations matters violate the National Labor Relations Act (NLRA). Such rulings would be an explicit reversal of NLRB decisions dating back to 1948 taking the position that employers do not violate the NLRA by requiring employees to attend meetings where the employer shares its messages regarding unionization. However, notwithstanding the General Counsel’s request, the NLRB has yet to reverse these decisions, and last week’s presidential election results certainly suggest the policy pendulum at the NLRB is likely to soon swing in the other direction.

But the current political winds at the federal level will not stop all momentum to prevent employers from using employee meetings to combat against the lofty promises unions make and communicate information they want to make sure is available to employees. Several “blue” states — California, Hawaii, Illinois, Vermont, and Washington — have all passed laws in the last year making employer captive audience meetings illegal, joining Connecticut, Maine, Minnesota, New York, and Oregon, which already had similar laws on the books. Alaska voters appear to have also adopted such a law in their state. If last week’s election results suggest anything, it may be that, in anticipation of a federal about-face in the organized labor arena, more states will try to take matters into their own hands and consider additional bans on these types of meetings.

The legality of such state laws is not without question. While Oregon’s law — the first of its kind and passed in 2010 — survived a legal preemption challenge, the argument remains that the NLRA preempts such laws as an impermissible intrusion on federal labor policy and employer rights preserved by federal law. With the reshaping of the federal courts in recent years, we can reasonably expect someone will attempt another NLRA preemption challenge, hoping to land before a federal judge or court more likely to be sympathetic to the argument. There is also a compelling argument that such state laws infringe employer First Amendment rights, particularly given that they target a particular speaker and a particular message, while not banning mandatory meetings to discuss things like safety or company updates. Such state action is therefore not content- or viewpoint-neutral, as required by most types of First Amendment analysis. To that end, the Illinois Policy Institute is making this First Amendment argument in a lawsuit it recently filed asking a federal court in Chicago to block the Illinois Worker Freedom of Speech Act from going into effect on January 1, 2025. How the Chicago federal court rules in that case may have wide-ranging implications for the other states’ statutes and the future of efforts to ban captive audience meetings.

As labor relations policy is sure to continue evolving in the coming years, employers should stay aware for now of the developing captive audience landscape, particularly if they face union activity in a state with a current ban on employer meetings of the type described in this article. Employers in such states can still hold meetings to discuss their message regarding unionization and make attendance at them voluntary — and should absolutely do so if faced with a union campaign.

by: Christopher G. Ward of Foley & Lardner LLP

For more news on

visit the NLR Labor & Employment section.

IRS Announces 2025 Retirement Plan Limits

The Internal Revenue Service (“IRS”) has announced the following dollar limits applicable to tax-qualified plans for 2025:

  • The limit on the maximum amount of elective contributions that a person may make to a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation plan increased from $23,000 to $23,500.
  • The limit on “catch-up contributions” to a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation plan for persons age 50 and older is unchanged for 2025 at $7,500.
  • As a result of change made by SECURE 2.0, for 2025, employees aged 60, 61, 62, and 63 who participate in a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation have a higher catch-up contribution limit, which for 2025 is $11,250 instead of $7,500.
  • The dollar limit on the maximum permissible allocation under 401(k) and other defined contribution plans is increased from $69,000 to $70,000.
  • The maximum annual benefit under a defined benefit plan is increased from $275,000 to $280,000.
  • The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan will go from $345,000 to $350,000.
  • The dollar amount used to identify “highly compensated employees” is increased from $155,000 to $160,000.

Additional information regarding benefit plan dollar limits can be obtained in Notice 2024-80, 2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living.

Office Politics: The Basics for Private Employers

In case you haven’t noticed the yard signs popping up like mushrooms, the constant barrage of television and radio advertisements, or the unsolicited text messages from unknown numbers, we are in the homestretch of election season. For those employers with questions on how to handle political speech in the workplace, especially during the last few days before (and hopefully not much beyond) Election Day, here is a refresher on the basics for private employers.

The First Amendment to the U.S. Constitution prevents the government from enacting laws to prohibit the free exercise of speech and assembly, among other liberties. It does not apply to private employers. Where there is no state action involved, there is no unfettered right to free speech in a private place of employment. Quite simply, a private employer can enact rules to keep political expression from its workplace. Some employers prohibit political speech in the workplace to avoid potential disruptions to business operations, customer relations, or employee morale.

If an employer adopts a policy concerning political expression and messaging, it must do so fairly and consistently, and it should be inclusive and consistent to avoid the perception of favoritism or discrimination. In other words, if an employer requires Meghan to remove her Kamala button, it should also direct Dennis not to wear his Trump t-shirt. Remote workers are still “in the workplace” when they participate in virtual meetings, so there are no separate rules for them.

When enacting rules about political expression and messaging in the workplace, private employers should of course remain aware of the National Labor Relations Act (NLRA), which applies to both union and non-union settings, and among other things protects employees’ ability to engage in concerted activity or to discuss the terms and conditions of their employment. Therefore, private employers must be mindful of a potential nexus or overlap between employees’ political speech and discussion of working conditions. Under the NLRA, for instance, employees may distribute information during non-working time about a candidate’s stance on a particular issue that may also constitute a complaint about the employees’ working conditions.

2025 Inflation-Adjusted Plan Limits

On Nov. 1, 2024, the IRS published its annual cost of living adjustments for various retirement plan limits. These increases are more modest than recent years, a reflection that inflation is slowing. The updated key retirement plan limits include the following items:

2025 Limit 2024 Limit
Annual Compensation Limit $350,000 $345,000
Elective Deferral Limit $23,500 $23,000
Standard Age 50 Catch-Up Contribution Limit $7,500 $7,500
Age 60-63 Special Catch-Up Contribution Limit* $11,250 N/A
DC Maximum Contribution Limit $70,000 $69,000
DB Maximum Benefit Limit $280,000 $275,000
HCE Threshold $160,000 $155,000

*Note, this is a new provision under the SECURE 2.0 Act.

The IRS previously released the updated 2025 limits applicable to certain health and welfare plans, including the following key limits:

2025 Limit 2024 Limit
Health FSA – Maximum contributions $3,300 $3,200
Health FSA – Maximum carryover of unused amounts (optional plan provision) $660 $640
HSA – maximum contributions $4,300 (self-only)

$8,550 (family)

$4,150 (self-only)

$8,300 (family)

HDHP – Minimum Deductible $1,650 (self-only)

$3,300 (family)

$1,600 (self-only)

$3,200 (family)

HDHP – Maximum Out of Pocket $8,300 (self-only)

$16,600 (family)

$8,050 (self-only)

$16,100 (family)

Federal Contractors Beware – More Data Disclosures Coming!

On October 29, 2024, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) published a Freedom of Information Act (FOIA) notice, inviting federal contractors to respond to FOIA requests that the OFCCP received related to federal contractors’ 2021 Type 2 EEO-1 Consolidated Reports. These reports, required of federal contractors and subcontractors with at least 50 employees, contain data critical to the government’s diversity efforts consistent with anti-discrimination mandates under Title VII and Executive Order 11246. Contractors have previously relied on FOIA Exemption 4 to protect against disclosing sensitive commercial information that could impact competitive positioning, but in late December 2023 as previously reported here, a federal court ruling concluded that certain demographic data did not qualify as confidential under FOIA Exemption 4. That court decision may spur an increase in FOIA requests for EEO-1 reporting information.

Contractors who wish to object to the disclosure of their EEO-1 reporting information must do so via OFCCP’s online portal, email, or mail on or before December 9, 2024. Per the OFCCP’s notice, contractors can object to releasing their 2021 EEO-1 Type 2 data by providing evidence showing the data satisfies FOIA Exemption 4. To do this, contractors should:

  • Specifically identify the objectionable data;
  • Explain why this data is commercial or competitive to render it confidential;
  • Outline the processes the contractor has in place to safeguard the data;
  • Identify any prior assurances or expectations that the data would remain confidential; and
  • Detail the damage that would occur if the data were disclosed by conducting assessments to see how disclosure would impact business operations.

In addition to raising timely objections to disclosure of data, contractors should also implement clear policies to maintain a consistent approach to data confidentiality. Specifically, contractors should be thoughtful and consistent as to how they define confidential information and the protection measures they take related to such information.

FOIA requests and court decisions in this space will likely continue to make striking a balance between government transparency and protecting contractors’ confidential business information more difficult. To navigate these changes, federal contractors should remain vigilant by staying informed, preparing objections to FOIA requests, and consulting with legal counsel to ensure compliance with this evolving area of law.

It’s Election Time: Time Off to Vote, Political Activities, and Political Speech in the Workplace

With Election Day quickly approaching, it is the right time for employers to refresh themselves on the various protections that may exist for their employees when it comes to voting and other political activities. Below is an overview of employees’ rights related to voting and other political activities leave, as well as protections for political speech and activity both in and outside the workplace.

Voting Leave Laws

Approximately thirty states require that employers provide their employees with some form of time off to vote. Twenty-one of these states require that the leave be paid. The exact contours of these laws – such as the amount of leave, notice requirements, and whether there is an exception when the employee has sufficient time outside of working hours to vote – vary by state. For example:

  • In New York, employers must provide leave to employees who do not have sufficient time outside of working hours to vote. An employee is deemed to have sufficient time to vote if the polls are open for four consecutive hours before or after the employee’s shift. Employees who do not have such a four-hour window are eligible to take the amount of leave that will – when added to their voting time outside working hours – enable them to vote, up to two hours of which must be without loss of pay. Employees may take time off for voting only at the beginning or end of their shift, as designated by the employer, unless otherwise mutually agreed to between the employee and employer. Employees are required to notify their employer that working time off to vote is needed between two and ten working days before the election.
  • Similarly, in California, employees are entitled to sufficient time off to vote, up to two hours of which must be paid. Unless the employer and employee agree otherwise, the employee must take the leave at the beginning or end of the employee’s shift, whichever allows the most time to vote and the least time off from work. Employees are required to provide notice that time off to vote is needed at least two working days before the election.
  • In the Washington, D.C., employees are entitled to up to two hours of paid leave to vote in either an election held in D.C. if the employee is eligible to vote in D.C., or in an election held in the jurisdiction in which the employee is eligible to vote. Employees must submit requests for leave a reasonable time in advance of the election date. Employers may specify the hours during which employees may take leave to vote, including requiring employees to vote during the early voting period or vote at the beginning or end of their shift during early voting or election day.
  • In Illinois, employers must provide two hours of paid voting leave to employees whose shifts begin less than two hours after the opening of the polls and end less than two hours before the closing of the polls. Employees must provide notice of the need for leave before the day of the election.
  • In Maryland, employees are entitled to up to two hours of paid voting leave, unless the employee has at least two non-working hours to vote while the polls are open. Employees must furnish proof to their employers that they either voted or attempted to vote, which can be in the form of a receipt issued by the State Board of Elections.

Certain states, includingNew York, California, and Washington, D.C., require that employers post a notice of an employee’s right to take leave in a conspicuous location before the election. Sample notices have been published by the New York State Board of Elections, the California Secretary of State, and D.C. Board of Elections.

Other Political Leave Laws

Some states require that employers provide leave for political-related reasons beyond just voting. For example:

  • AlabamaDelawareIllinoisKentuckyNebraskaOhioVirginiaand Wisconsin require that certain employers provide unpaid leave for employees to serve as election judges or officials on Election Day. In Minnesota, employees are entitled to paid leave for this reason; however, employers may reduce an employee’s salary or wages by the amount the employee receives as compensation for their service as an election judge.
  • Minnesota and Texas require that certain employers provide employees with unpaid leave to attend party conventions and/or party committee meetings.
  • ConnecticutIowaMaineNevadaOregonSouth Dakotaand Vermont require that certain employers provide employees with an unpaid leave of absence to serve as elected members of state government. In Iowa, employees are also entitled to leave to serve in a municipal, county, or federal office.
  • In Vermont, employees may take unpaid leave to vote in annual town hall meetings.

Some of these laws only apply to larger employers. For example, in Nevada, employers with at least fifty employees are required to provide leave for employees to serve as members of the state legislature. State laws also vary with respect to the amount of notice that employees must provide to their employers in order to be eligible for leave.

Political Speech in the Workplace

In our current political climate, many employers are concerned with what steps they can take regarding political speech and activity in the workplace. When these discussions or activities occur during working hours, they have the potential to negatively impact performance, productivity, or even possibly cross the line into bullying or unlawful harassment.

When employees publicly attend political rallies or support causes on social media, they may also (intentionally or not) create an actual, or perceived, conflict of interest with their employer. The complicated question of what exactly employers can do around employee political speech and activity is governed by various sources of law, some of which is discussed below.

Additionally, for employers with designated tax statuses, certain political speech can give pose risk to an organization’s tax-exempt status. Many tax exempt-organizations are subject to significant restrictions on lobbying and political activities. For example, 501I(3) organizations risk losing their tax-exempt status if they engage in political campaign activities or if a substantial part of its activities involves lobbying. Speech by an employee that constitutes political campaign or lobbying activity risks being attributed to an organization if an employee’s speech is seen as representative of the organization and being ratified by the organization. For example, if an employee urges their social media followers to contact their state representative about proposed legislation, this risks carrying the inference that the employee was speaking on behalf of the organization.

Employee “Free Speech”

There is no general right to “free speech” in a private sector workplace. Because the U.S. Constitution is primarily concerned with state actors, the First Amendment does not prevent private employers from prohibiting or restricting political speech in the workplace. Therefore, subject to certain exceptions discussed below, private sector employers are generally able to enact prohibitions around discussing politics at work and discipline employees for violating such policies.

However, as noted, an employer’s ability to restrain political speech in the workplace comes with some restrictions. At the federal level, Section 7 of the National Labor Relations Act (“NLRA”), which applies to both unionized and non-union employees, protects certain “concerted activities” of employees for the purposes of “mutual aid or protection.” Political speech or activity that is unrelated to employment, such as an employee distributing pamphlets generally encouraging co-workers to vote for a candidate or support a political party, would not likely be covered or protected by the NLRA. The NLRA therefore does not universally prevent employers from prohibiting political discussions or activities in the workplace.

However, political speech may be protected by the NLRA when it relates to the terms or conditions of employment, such as communicating about wages, hours, workplace safety, company culture, leaves, and working conditions. Therefore, an employee encouraging co-workers to vote for a candidate because the candidate supports an increase in the minimum wage might claim to come under the protection of the NLRA.

State laws may also place certain limitations on employer attempts to restrict employee political speech. For example, Connecticut law prohibits employers from taking adverse action against employees for exercising their First Amendment rights, provided that such activity does not interfere with the employee’s job performance or the employment relationship.

Lawful Outside Activity/Off-Duty Conduct

Many states have laws that prohibit adverse action against employees based on lawful activities outside the workplace, which may include political activities. For example:

  • In approximately a dozen states, employers are prohibited from preventing employees from participating in politics or becoming candidates for public office. New York Labor Law § 201-d prohibits employers from discharging or otherwise discriminating against employees because of their “political activities outside of working hours, off of the employer’s premises and without use of the employer’s equipment or other property, if such activities are legal.” Political activities include (1) running for public office, (2) campaigning for a candidate for public office, or (3) participating in fund-raising activities for the benefit of a candidate, political party, or political advocacy group. Similar laws exist in CaliforniaLouisiana, and Minnesota, among other states.
  • Other states – including DelawareFloridaMassachusetts, and New Jersey– prohibit employers from attempting to influence an employee’s vote in an election. In Florida, “[i]t is unlawful for any person … to discharge or threaten to discharge any employee … for voting or not voting in any election, state, county, or municipal, for any candidate or measure submitted to a vote of the people.” A dozen or so states approach this issue in a more limited fashion by prohibiting employers from attaching political messages to pay envelopes.
  • At least two states, Illinois and Michigan, prohibit employers from keeping a record of employee’s associations, political activities, publications, or communications without written consent.
  • Washington, D.C. prohibits discrimination in employment on the basis of political affiliation. Despite its seemingly broad scope, this statute has been interpreted to only protect political party membership and not (1) membership in a political group, or (2) other political activities, such as signing a petition.

These laws vary considerably from state to state, so it is important for employers to consult the laws when considering policies or rules around employee political activity.

* * *

As the election approaches and early voting takes place, employers should review the applicable laws for each jurisdiction in which they operate and ensure that their policies and practices are compliant. Employers should also ensure that managers are well versed in the employer’s policies around voting and political speech and activities so that they can properly respond as situations arise.

The Spooky Consequences of Halloween Celebrations in the Workplace

There is no greater Halloween horror for employers than a workplace celebration that creates legal risks such as inappropriate costumes or safety hazards, among other issues. Thus, there are many considerations when planning an office celebration for this spooky holiday. If you are a manufacturer hosting an office Halloween party, consider following these three tricks to make the best out of your workplace treat.

1. Provide Guidance on Expectations

First and foremost, manufacturers should be transparent about expectations surrounding employee participation including costumes. With regard to costumes, when crafting guidance, manufacturers should consider both civility as well as safety, especially if the employees will be permitted to wear their costumes during the workday. For example, employees should understand what costumes or outfits do and do not meet manufacturing floor safety guidelines. Employees should also be expressly reminded that costumes must conform to all employer policies including anti-harassment, discrimination and respect policies and that costumes, outfits or accessories that violate such policies will not be tolerated.

This election year in particular, some employees may don political costumes. The free speech rights under the First Amendment of the U.S. Constitution do not apply to employees working for private manufacturers. Thus, private manufacturers can generally establish rules that, for example, prohibit costumes that support (or criticize) a political candidate or party. That said, manufacturers should be aware that several states have laws regulating when employers can lawfully discipline employees for political activity; further, there are state and federal laws that may be implicated with regard to employees expressing political views. If manufacturers are considering disciplining an employee for a political costume, they should first consult with legal counsel.

2. Prioritize Safety

There are more safety hazards at workplace Halloween parties than the cavity causing candy. This is especially true if the celebration is being held on the manufacturer’s shop floor. Manufacturers should ensure that all of the decorations in the workplace comply with the fire and safety codes set forth by local governments and by OSHA. Manufacturers should also avoid activities that inherently involve risks and could result in workplace injuries, such as pumpkin carving contests.

Lastly, manufacturers should carefully consider whether to serve alcohol. If the celebration is being held on the shop floor, it is highly recommended that alcohol is not served, especially if heavy machinery is accessible. For celebrations held elsewhere, manufactures should consider taking steps to ensure alcohol is consumed in moderation and is not central to the party, and follow best practices for serving alcohol; when considering tips for limiting alcohol consumption or its impact on employees, employers should consider only serving beer and wine, serving a meal (as compared to light appetizers), limiting the amount of alcohol served by, for example, using a drink ticket system, using bartenders to serve alcohol, serving non-alcoholic options; among other practices. In some circumstances, manufacturers may be legally responsible for the conduct of their intoxicated employees.

3. Make it Optional

Workplace celebrations are a great way to boost employee morale and help foster employee relationships. That said, these celebrations should generally be optional. Manufacturers should keep in mind that employees may not want to attend a Halloween party for various reasons, including, for example, their religious practices and beliefs; therefore, ensuring that the party is optional may support all employees including those that do and do not celebrate Halloween.

If attendance is mandatory, there may be implications from a workers’ compensation perspective if there are any injuries or illnesses. Further, manufacturers should pay the employees for their time pursuant to the Fair Labor Standards Act (FLSA) and applicable state laws regardless of whether the celebration was held outside of normal working-hours. Requiring non-exempt employees to attend unpaid celebrations can expose the manufacturer to wage and hour claims in the future.

by: Abby M. WarrenMadison C. Picard of Robinson & Cole LLP

For more news on Workplace Halloween Party Considerations, visit the NLR Labor & Employment section.