In January 2025, there were two vital legal changes in wage and hourly rate aspects. The U.S. Department of Labor’s Wage and Hour Division (WHD) issued an opinion letter stating that employers could not compel employees to utilize their paid time off during leave under both the Family Medical Leave Act (“FMLA ) and a state or regional paid family or medical leave program, such as the Massachusetts Paid Family and Medical Leave Act (“PFML ). This is an essential development for employers as they must review their leave policies to ensure compliance.

In a subsequent development on January 15, 2025, the U.S. Supreme Court ruled that employers wouldn’t need to meet a higher standard of proof to demonstrate their employees are exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and additional shift requirements. The Supreme Court decided that the preponderance of the evidence standard applies in cases challenging an employee’s exemption status.

Note that these guidelines indicate the Wage and Hour Division’s enforcement stance but do not carry the force of law. Consequently, it is prudent for employers to tread carefully and seek legal counsel if there’s any uncertainty regarding employee exemption status or other compliance concerns.

Regarding employers and employees in California, the Employment Development Department (EDD) oversees programs like Disability Insurance (SDI), Paid Family Leave (PFL), and Unemployment Insurance. It’s crucial to get hold of EDD for issues or concerns. For optimal service and assistance, visit the EDDCaller website, where you’ll find various ways to connect with the EDD, including the EDD phone numbers, fastest ways to get through to EDD, how to speak to someone at EDD, how to reach an agent, and much more. These resources can make reaching out to the EDD faster and more efficient, helping you address your urgent needs and inquiries.