Steps Employers Should Take Early in 2025

1. (Re)confirm exemption classifications.You may have done this exercise recently given the July 1, 2024, increase in the salary threshold for the “white collar” exemptions from the overtime requirement of the Fair Labor Standards Act. While the other increase, scheduled to take effect on January 1, 2025, is now on hold, it’s always a good idea to review and re-confirm that your employees are properly classified. Use the next several weeks to do just that.

2. Wrap up any reworks to your paid time off policies. Do you want to change from separate sick and vacation banks to a single paid time off bank? Do you want to change your accrual schedule or put new limits on rolling over accrued but unused PTO? The beginning of the year is a great time to implement these types of changes.

3. Update your drug and alcohol testing policy in time for 2025. Surely you revised your policy to reflect Ohio law regarding both medicinal and recreational marijuana… but if you haven’t, now is a great time to do it. Address the use of medical and recreational marijuana during work hours and on worksites. Discuss the impact of medical and recreational marijuana use for employees in safety-sensitive positions.

4. Prepare and roll out payroll deduction agreements. Use the new year as a target date to roll out payroll deduction agreements for your workforce. In Ohio, deductions other than those allowed by law can be made only pursuant to the terms of a written deduction agreement signed by the employee.

5. Review Policies Focused on Workplace Conduct and Speech. The National Labor Relations Act (“NLRA”) Employee Rights Section 7 grants employees the right to engage in concerted activity for the purpose of collective bargaining and mutual aid or protection. These protections apply to both unionized and nonunionized nonsupervisory employees. Concerted activity generally includes any activity by a group of employees attempting to improve wages, hours and working conditions for the group. As a result, the NLRA generally prohibits employers from maintaining or applying policies that interfere with employees’ rights to engage in union or other concerted activities.  In recent years, the National Labor Relations Board (“NLRB”) has been very active in enforcing the NRLA. During the first half of FY 2024, there was a 7% increase in unfair labor practices (ULP) charges. This increase in ULP charges follows a trend over the last few years. For example, in FY 2023, ULP charges increased 10% compared to FY 2022 and 19% in FY 2022 compared to FY 2021. In addition to prioritizing enforcement actions, the board has expanded potential remedies under the NLRA, placed restrictions on confidentiality and non-disparagement provisions in severance agreements of nonsupervisory employees, and revised its test for determining whether an employer’s policy or workplace rule infringes on employees protected concerted activity. Therefore, it’s critical that employers ensure their workplace policies related to employee conduct and speech do not infringe upon employees’ rights under Section 7. Employers should consider reviewing the following policies:

• Personal conduct
• Non disparagement
• Conflicts of interest
• Confidentiality provisions related to wages, discipline, investigations and harassment complaints
• Outside employment
• Audio and video recording in the workplace
• Restrictions on speaking to the media
• Electronic communications
• Complaint policies
• Class action waivers
• Dress codes and uniform policies
• Solicitation and distribution policies
• At-will employment waivers
• Social media policies

Written by:
Scott M. Zurakowski
Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A.
330-497-0700
szurakowski@kwgd.com