Overview: Determining if an employee should be classified as an independent contractor or an employee under the FLSA and IRS is a perennial issue that continues to confound many workplaces; misclassification is surprisingly common and results in costly litigation.
To further complicate matters, properly classifying an employee regarding their exempt or non-exempt status befuddles many HR professionals; employee misclassification similarly results in a long list of costly litigation, many resulting in companies owing years of back pay for overtime due to having improperly classified employees as exempt when the proper employee classification should have been non-exempt (and thereby eligible for overtime).
Other FLSA regulations and state compliance challenges pertaining to employee compensation laws include deciding whether employees must be paid for certain activities, such as meal and rest breaks or training. minimum wage laws, overtime laws, child labor, and recordkeeping are additional aspects of FLSA compliance, most of which have variations by state.
Trends: Of concern to employers, not only are employees continuing to file FLSA lawsuits at a rapid pace but also the U.S. Department of Labor has stepped up its enforcement of employee compensation laws. So it's more important than ever to ensure compliance with this law.
Author: Michael Cardman, Legal Editor
Many states and municipalities have minimum wage requirements. This Quick Reference chart sets forth the state minimum wage rates for all 50 states plus the District of Columbia. It also covers selected local minimum wage ordinances that apply to most or all employees who work within a particular jurisdiction.
The Congressional Research Service (CRS) has issued a report that examines annual changes and trends in immigration-related worksite enforcement, revealing an upward trend in administrative fines and penalties.
The US House Subcommittee on Workforce Protections heard testimony about the US Department of Labor's proposal to roughly double the minimum salary for most employees exempt from the overtime requirements of the Fair Labor Standards Act (FLSA).
In-depth review of the spectrum of Missouri employment law requirements HR must follow with respect to minimum wage.
Beginning August 24, 2015, a covered employer in Kansas City, Missouri, will be required to pay a minimum wage of $8.50 to nonexempt employees who perform 20 hours of work within a calendar year for the employer. The minimum wage rate will be increased each year, topping out at $13.00 in 2020.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.