Resources

May 1, 2024

A Message from the Salt Lake Chamber Policy Team

Utah Legislature 2024 Interim Session

The Latest, What You Need to Know and What's Next

As we gear up for the Utah Legislature’s 2024 Interim Session, starting on May 13, we want to ensure that you are informed about the critical role this plays in our legislative process. The interim session serves as a vital bridge between regular sessions, offering lawmakers the opportunity to delve deep into complex issues, conduct thorough research, draft potential legislation and engage with stakeholders like yourselves before the formal session commences.

• To access the 2024 Utah Legislature Interim Schedule, click here.
• To access Interim Topics, click here.

As part of our ongoing commitment to keeping our members informed and involved, we will host informational sessions during the interim period to discuss key developments and outcomes from the legislative sessions. These sessions will provide valuable insights into the legislative process, highlight important decisions impacting businesses and communities, and offer opportunities for feedback and collaboration. For these meetings, we will pull together all members of our policy committees and convene individual committees as specific issues arise.

For ongoing updates and additional resources, watch our communication channels. If you have any questions or comments, please feel free to reach out to us at policy@slchamber.com.

Sincerely,

Ginger Chinn

Vice President of Public Policy & Government Affairs

Salt Lake Chamber

Policy Highlights

NONCOMPETE CONTRACTS

What You Need to Know:

• The Federal Trade Commission (FTC) voted 3-2 along partisan lines to ban most employer noncompete clauses, affecting around 30 million U.S. workers. Noncompete clauses are contracts that prevent employees from working for a competitor or starting a competing business after leaving their jobs.

Why It Is Important:

• The FTC believes that banning noncompete clauses will protect workers' freedom to change jobs, foster innovation and encourage new business formation. They argue that such clauses keep wages low, stifle new ideas and hinder economic dynamism.
• The effective date is 120 days after publication, expected to be August 21, 2024.
• Most noncompete agreements will be prohibited as unfair competition under FTC Act Section 5 after the effective date.
• Existing noncompetes for senior executives (earning over $151,164 annually in policy-making roles) can continue but cannot be enforced after the effective date, with clear notice required.
• Excludes noncompetes related to bona fide business sales.

What Happens Next:

• The decision is already facing legal challenges, with a tax services firm filing a lawsuit and the U.S. Chamber of Commerce promising a legal response. The FTC estimates that the ban will lead to more startups, increase workers' earnings by $400 billion over a decade and lower health care costs by $194 billion in the same period. The ban is set to take effect later this year but includes exceptions for existing executive noncompete agreements.

OVERTIME PAY

What You Need to Know:

• The U.S. Department of Labor (DOL) has announced new federal overtime rules that significantly impact the salary threshold for certain exempt employees. The threshold will increase to about $44,000 on July 1 and nearly $59,000 by January 1, 2025. This change is expected to affect around 4 million workers and require employers to quickly adjust their pay practices.

Why It Is Important:

• This change means that millions of additional workers will become eligible for overtime pay. Employers need to review their pay practices, ensure compliance with the new thresholds, and make decisions about whether to raise salaries or reclassify employees to non-exempt status. Failure to act promptly could lead to legal and financial consequences.

What Happens Next:

• Employers should take immediate action to prepare for the new overtime rules. This includes reviewing exempt jobs for compliance with criteria beyond just salary thresholds, creating decision trees for reclassifying employees, considering the impact on morale, providing advance notice of changes, reviewing policies on company equipment and devices, developing training plans for managers and employees, ensuring exempt employees meet duties tests, reviewing state laws, and staying updated on legal challenges. Proactive preparation is crucial to navigate these changes effectively.

CHILD CARE

What You Need to Know:

• During the 2024 Utah General Legislative Session, we heard from our members about the impact that child care, or the lack thereof has on their workforce. In 2023, the Salt Lake Chamber partnered with the U.S. Chamber of Commerce Foundation and United Way of Salt Lake to create Untapped Potential in Utah, a report outlining the economic impact of child care across the state. 
• Because of this report and member feedback, we advocated for S.B. 176, Child Care Services Amendments, sponsored by Senator Luz Escamilla. The bill sought to tackle child care capacity issues by leveraging state-owned properties, partnering with private employers and incentivizing expansion of access to quality child care. By addressing this critical need, this bill would have supported workforce stability and economic growth while ensuring families have reliable child care options. Unfortunately, despite unanimously passing the Senate, the bill failed to pass out of the House. 

Why It Is Important:

• The issue of child care extends beyond Utah and affects the entire United States. Across the country, quality child care programs are often too costly for many families, government support is inadequate and finding available daycare spots can be challenging. This burden disproportionately impacts mothers, who often bear the primary responsibility for child-rearing and are more likely to leave their jobs to care for their children.
• According to the U.S. Chamber report, Utah sees an estimated $1.36B impact due to the lack of child care. This includes an approximately $1.1B impact to employers because of employee absences and turnover, and an approximately $258M impact in tax revenue for the state – almost twice the amount that the Executive Appropriations Legislative Committee appropriated for Fiscal Year 2025.

What Happens Next:

• As we move into the interim and next session, this will be an issue that the Chamber continues to champion. It is good for business, families and the state. 

How to Get Involved

•  Attend an Interim Committee Meeting: The next interim meetings for the Utah Legislature are May 13-15. These meetings allow legislators to further review policy items. If you want to watch the meetings, they are live-streamed, recorded and shared publicly online. Additionally, meetings are open to the public, and Utahan's can provide their input virtually or in person. Click here to learn more.

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