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
Although the authors cautioned that their findings should not be generalized to minimum wage policies set by other localities, the research has the potential to shape the minimum wage debate nationwide.
Effective November 26, 2017, New York City will require fast food employers to provide advance notice of work schedules to employees and to pay a schedule change premium if hours are changed after required notices, among other things.
Updated to reflect the 2017 annual inflation adjustment to Emeryville's minimum wage.
Updated to reflect the 2017 annual inflation adjustment to the minimum wage in Emeryville, California.
Numerous legislative changes take effect July 1, affecting minimum wage rates, employee leaves, recruiting and hiring, and more. An employer should take note of these legal developments and ensure it takes the appropriate steps to comply.
Updated to incorporate withdrawal of a DOL administrator interpretation on joint employment.
The US Department of Labor's recent withdrawal of two administrator interpretations issued during the Obama administration may signal a more employer-friendly enforcement posture under the Trump administration.
As mandated by the Flagstaff, Arizona, Office of Labor Standards, Flagstaff employers covered by the Flagstaff Minimum Wage Ordinance must display the Flagstaff, Arizona, Minimum Wage Poster.
As mandated by the San Leandro, California, Department of Finance, San Leandro employers covered by the San Leandro Minimum Wage Ordinance must display the San Leandro, California, Minimum Wage Poster.
Updated to include information on an Ohio court decision.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.