Several states, including Connecticut and New York, have passed laws that require employers to be transparent to applicants and potential applicants when advertising for a job opening. And many other states—including Massachusetts—have pay transparency legislation pending.

In 2018, the U.S. Department of Labor (DOL) filed a complaint against Medical Staffing of America, LLC, and Lisa Ann Pitts (individually and as the owner and officer of Steadfast) asserting violations of the Fair Labor Standards Act (FLSA) for failure to pay overtime wages, improper classification of workers, and failure to maintain adequate and accurate employment records. In 2022, the U.S. District Court for the Eastern District of Virginia agreed with the DOL and concluded Steadfast and Pitts violated the FLSA and owed back pay and liquidated damages. Steadfast and Pitts appealed the determination to the 4th Circuit earlier this year. With over $9 million dollars at stake, all parties await the appeals court’s decision.

Question:    Are there any laws regulating whether managers and supervisors are allowed to know the compensation of the employees they supervise?

The Fair Labor Standards Act (FLSA) was passed in 1938. For the past 86 years, employers have tried to circumvent its requirements, and for the past 86 years, they’ve failed. A very recent attempt was here in Texas.

The 2023 and 2024 legislative landscape witnessed a surge in states and cities implementing diverse pay transparency requirements. Despite the progress in recent years in reducing the wage gap, gender pay disparities persist, with current studies indicating that women—particularly women of color—earn only 84 cents for every dollar earned by men. Pay transparency laws aim to rectify these disparities by providing salary and other benefit information to applicants during the hiring process. This additional information is intended to equip applicants with the tools to negotiate compensation, which theoretically may reduce the gender wage gap. In response to this trend and the intent to further address the gender wage gap, several states have introduced varying levels of pay transparency regulations.

What is considered compensable time during the onboarding process under the Fair Labor Standards Act (FLSA)—for example, time completing paperwork before the start date as well as time reviewing policies and procedures and completing training?

On April 23, 2024, the Federal Trade Commission (FTC) voted, 3 to 2, to ban nearly all noncompete agreements. The ban is scheduled to become effective on September 4, 2024. Whether the rule will become effective remains an open question because it is already subject to litigation from various business groups, including the U.S. Chamber of Commerce, claiming the FTC doesn’t have the authority to issue the rule.