Gordon Law

capital building new federal regulations

It’s None Of Your Business

“NOT SO FAST,” SAYS THE FEDERAL GOVERNMENT

In a death by a thousand cuts with a thousand acronyms – or so it seems, the federal government is diving into all aspects of your business.  Starting with collecting your personal information, to limiting your businesses ability to retain independent contractors and eliminating non-compete clauses to now forcing you to substantially increase how much you pay your employees, the federal government is diving into every aspect of your business and the penalties for your non-compliance are steep!

FEDERAL CRIMES – BENEFICIAL OWNER INFORMATION

Beneficial ownership information refers to details about individuals who ultimately own or control a company or asset. As of January 1, 2024, the federal government requires most small businesses to provide the following information:

COMPANY INFORMATION

  • If you have a fictitious name filing (DBA) that we do not know of, we will need that name;
  • The tax id number of the company (if you do not have one, we will need the social security number of the primary owner of the company;
  • The physical address of the company.
    OWNER INFORMATION – THIS IS REQUIRED FOR ANY OWNER THAT OWNS 25% of the company or more
  • Legal name
  • Date of birth
  • Current address
  • Driver’s license or passport number
  • A COPY of the driver’s license or passport
  • Email address

Failure to provide the information can lead to prison time along with significant criminal and civil fines.

FEDERAL TRADE COMMISSION’S BAN ON NON-COMPETE AGREEMENTS

On April 23, 2024, the Federal Trade Commission (FTC) issued a Final Rule to ban post-employment non-compete agreements.  This may have an enormous impact on your business because not only does it ban non-compete agreements into the future, it makes those that are currently in existence unenforceable.  Furthermore, it requires that businesses that have such restrictions provide notice to employees that the non-compete agreements are no longer enforceable.  This rule supersedes Nevada law.  It also stops your business from having non-compete agreements within your independent contractor agreements.  Speaking of independent contractor agreements…

THE DEPARTMENT OF LABOR’S NEW RULE ON INDEPENENT CONTRACTORS

On January 10, 2024, the Department of Labor issued a Final Rule on how workers are classified under the Fair Labor Standards Act.  The Final Rule applies a six-factor test and does not concentrate on any particular factor(s). Instead, the Final Rule focuses on an individual’s activity as a whole to determine whether such an individual is an independent contractor. This “totality-of-the-circumstances” approach involves the following factors: (1) the worker’s opportunity for profit or loss; (2) investments by the parties; (3) the work relationship’s permanency; (4) the nature and degree of control over the work; (5) whether the work is an integral part of the employer’s business; and (6) the worker’s skill and initiative.  Failure to follow the rules with independent contractors may cause your business to be fined and/or sued for the misclassification of workers.

THE DEPARTMENT OF LABOR’S FINAL RULE ON EXEMPT EMPLOYEES’ SALARIES

On April 23, 2024, the U.S. Department of Labor announced a Final Rule to further define and which employees are exempt and, therefore, not eligible for overtime.

Currently, for executive, administrative or professional employees to be exempt, they have to have compensation of a minimum of $35,568 annually. On July 1, 2024, that number increases to $43,888. On January 1, 2025, that number increases again to $58,656. Beyond that, the salary thresholds will be reviewed again for July 1, 2027, and every three years thereafter.

When the federal government affects your business, you need a partner who can help to ensure you know what to do and have plans to ensure compliance.  For over thirty years, Aviva Gordon, Esq. of Gordon Law has protected businesses.  If you have questions about how any of the new “Final Rules” affect your business, please reach out.  We are privileged to provide guidance to the businesses of Las Vegas and Henderson.

Please like and share!
Scroll to Top
Skip to content