For HR professionals in banking, compliance isn’t just a requirement — it’s a critical pillar of risk management. A failure to align with evolving regulations can lead to hefty fines, legal battles and reputational damage, all of which can impact your institution’s bottom line. However, staying on top of compliance changes is time-consuming, especially with shifting federal and state mandates. To help, the following are some key regulatory developments that banking HR professionals should keep on their radar.
Non-Compete Ban Reversal: What It Means for Financial Institutions
What it is: The Federal Trade Commission’s (FTC) nationwide ban on non-compete agreements — which prevent employees from joining competitors or starting competing businesses — was set to take effect. However, a federal judge blocked the ban, meaning organizations no longer need to comply with it.
Why it’s important: Banking institutions frequently use non-competes to protect proprietary financial strategies and client relationships. While the FTC’s ruling is currently blocked, HR leaders and business owners should be aware that the agency is expected to appeal. Additionally, state-level restrictions still apply, meaning financial institutions should ensure compliance with local laws.
DOL Salary Threshold Changes: Impact on Banking Compensation
What it is: The Department of Labor (DOL) had planned to increase the salary thresholds for exempt employees, raising it to $58,856 annually — or $151,164 for highly compensated employees. However, a 5th Circuit decision vacated the final rule, reversing this increase.
Why it’s important: Many banks had already adjusted salaries or exemption statuses in response to the now-invalidated ruling. HR departments should work closely with legal counsel before rolling back these changes. Also, be aware that some states — including California, New York and Washington — have their own higher salary thresholds that remain in effect.
OSHA’s Heat Safety Rule: Implications for Bank Employees
What it is: OSHA has proposed a new rule requiring employers to implement heat safety measures when temperatures reach 80° F for at least 15 minutes in a 60-minute period.
Why it’s important: While banking HR leaders may think this rule primarily affects outdoor industries, financial institutions with couriers, drive-through staff or employees working in branches without reliable climate control should prepare. The rule mandates a written prevention plan, training programs and regular safety updates.
Stay Ahead of Compliance with Expert HR Support
Navigating compliance in banking is complex, but proactive HR leaders can mitigate risk by staying informed and seeking expert guidance. Partnering with a compliance-focused HR services provider ensures your institution remains ahead of regulatory changes while reducing legal liability.
This is not legal advice. Please consult legal counsel for compliance-related decisions.
Rachel Barr, SHRM-SCP, is the director of HR Services at isolved, where she leverages over a decade of experience in human resources best practices to support HR, payroll and benefits professionals. With a background spanning retail, technology and consulting, she has helped thousands of companies enhance their HR compliance, infrastructure and strategic initiatives. At isolved, the most trusted leader in human capital management (HCM) technology, Rachel combines her expertise with innovative solutions to drive better business outcomes. Rachel can be reached at rbarr@isolvedhcm.com for further discussions.
