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
Legislation establishing new employee notice requirements for employers in the District of Columbia is projected to take effect on February 26, according to the District's Department of Employment Services.
Over half of all US job vacancies that are not filled within 30 days will remain open for three months or more, according to a new report released by job search website Indeed.
North Carolina employers that employ minor employees under age 16 and seek to inform the minor employees and their supervisors about legally required meal breaks and to demonstrate compliance with North Carolina law should consider including this model policy statement in their handbook.
The Independent Contractors: New Jersey section of the Employment Law Manual has been updated to reflect the New Jersey Supreme Court's ruling that the ABC Test must be used to determine whether a worker is an employee or an independent contractor under the state's overtime and wage payment laws.
Vermont employers seeking to show their compliance and support for Vermont law which requires that employers provide unpaid break time and reasonable locations for employees to express breast milk should consider including this model policy statement in a Vermont supplement.
Vermont employers seeking to educate supervisors about the need to provide reasonable break opportunities, to inform employees about their rights with regard to using bathroom facilities during work and to demonstrate compliance with Vermont law should consider including this model policy statement in their handbook.
The Employment Law Manual and a How To have been updated to reflect a recent federal court ruling vacating two US Department of Labor regulations for companionship service providers.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.