The U.S. Department of Labor (DOL) published monumental changes to the overtime rule that will make approximately 4.2 million currently exempt employees eligible for overtime pay later this year.
The DOL has issued its long-awaited Final Rule that will make it harder for many workers to be qualify for the overtime exemption.
This rule goes into effect Dec. 1, 2016.
Notably, the final rule does not change any of the existing job requirements to qualify for an exemption.
Identify current exempt employees who will lose exempt status based on the increased salary threshold (anyone earning under $47,476) and either reclassify these employees as non-exempt or raise their salary/non-discretionary compensation to meet the new salary test.
With changes coming to the Wage and Hour landscape, now is the time for employers to analyze the classification of each exempt employee and independent contractors. This will go a long way in avoiding huge headaches and penalties. Employers need to start preparing now by reviewing employee classifications and job descriptions, and consider how their pay systems could be affected if many of their exempt employees become hourly or if independent contractors are deemed employees.
Summer is quickly approaching, for some people that means summer intern season! If your company is planning on engaging an intern, or would like to but are concerned about the regulations, read further for some tips and guidelines to help keep you in compliance.
So, how can you determine whether your intern is really an intern or an actual employee? Well, the FLSA (Fair Labor Standards Act, which regulate wage and hour issues) has no practical definition of “employee”, what it does define is the word “employ”; including the words “suffer or permit to work”. Suffer or permit to work means that if an employer requires or allows employees to work they are employed and the time spent is probably hours worked. This standard has recently been very narrowly interpreted by the DOL (Department of Labor), and in a number of high profile cases, some large companies have ended up owing wages to interns.
The most important of these tips is the last three. If any of those factors are missing, the DOL will most likely classify the person as an employee.
The issue of how to classify employees – as interns and as independent contractors – has garnered a lot of attention in the last few years. These issues are going to continue to be a big source of concern for the DOL and for employers. If you really aren’t sure about whether that college student is an intern or not – your best bet is to pay them minimum wage. It is less expensive than a full-time employee and far less expensive than a lawsuit. If you have any questions, or need help assessing your employee classifications, give us a call or send an email. We are here to help!
October is Domestic Violence Awareness Month. What does that mean for employers? There are things that employers can do to help recognize and support employees who may be victims of domestic violence.
You may think that domestic violence doesn’t affect you, but when nearly 20 people per minute are victims of physical violence, chances are it is affecting someone you know. If you think it doesn’t have anything to do with your workplace, when victims of intimate partner violence lose a total of 8 million days of paid work each year, or that between 2003 and 2008, 142 women were murdered in their workplace as a result of intimate partner violence, than you see that domestic violence affects us all.
According to the Center for Disease Control, domestic violence affects millions of Americans; women and men, gay, straight, old and young. Domestic violence, or Intimate Partner Violence, as it is sometimes known, is a worldwide epidemic. Although it is a problem that is seen as largely a problem in the home, there are things as an employer that you can do to help.
The first thing you should do is create a policy. Having a policy in place can help guide you if a situation should arise.
It is possible to create a culture where violence is not tolerated, and all individuals have the right to live free of fear. We are all responsible for the creation and propagation of this culture, and the workplace is as good a place as any to start. If you need help with policies, or assistance in dealing with a possible victim of perpetrator of domestic violence, please contact AmeriSource HR. We are here to help.