This Monday we celebrate Labor Day, which is a day to honor and recognize contributions that workers have made. The first Labor Day holiday was celebrated on Tuesday, Sept. 5, 1882, in New York City. By 1894, 23 more states had adopted the holiday, and on June 28, 1894, President Grover Cleveland signed a law making the first Monday in September of each year a national holiday.
The Department of Labor (DOL) arrived a few decades later, in the early part of the 20th century. The DOL is responsible for administering federal laws governing workers’ rights to fair, safe, and healthy working conditions, including minimum wage, overtime pay, and protection against discrimination. They also offer resources such as for disability and layoff. This past year the DOL has issued standards related to safety and health (OSHA) and increased enforcement in areas such as tipped employee wages (Wage and Hour Division). The final quarter of 2022 is expected to see proposed regulations for updates to independent contractor classification and the compensation threshold for white-collar exemptions to the FLSA overtime requirements.
Employers have been struggling to attract and retain talent in a historically tight labor market. Finding qualified applicants for job openings has been harder, and some businesses may have hired just any warm body. In the post-pandemic workplace, keeping employees who want more and know their rights happy has been important for retention. If an employee feels underappreciated, dissatisfied, or mistreated, they can look for another job that better suits them. Or talk about unionization. Or go to the court system for relief.
With rising interest rates and high inflation, many employers are tightening their belts to reduce labor costs. That warm body that seemed okay when you were extremely short-staffed looks like a good candidate to cut loose. Terminating any employee can be costly, so you will want to proceed with caution, evaluate your potential risk, and seek appropriate guidance.
The last few years have seen dramatic alterations that have resulted in major workplace shifts. From the rise of remote work to the rise of Gen Z, the labor landscape continues to be challenging. Smart employers continue to adapt to the ever-changing world of work and ensure they are well-positioned for the future as more changes are sure to be down the road.
FrankCrum is here for you along the way.