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
The 5th Circuit Court of Appeals has ruled for the first time that Section 504 of the Rehabilitation Act authorizes employment discrimination lawsuits filed by independent contractors. The court's ruling in Flynn v. Distinctive Home Care, Inc. is significant in its finding that the Rehabilitation Act offers broader protection than Title I of the Americans with Disabilities Act (ADA).
XpertHR offers many tools and resources to help an employer understand joint employment issues.
Three sections of the Employment Law Manual have been updated with details about the US Department of Labor's new guidance on joint employment under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA).
Updated to reflect significant changes to Seattle minimum wage requirements made under Seattle's Wage Theft Prevention and Harmonization Ordinance, effective January 1, 2016.
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.
An employer's use of third-party management companies, independent contractors, staffing agencies or labor providers could constitute joint employment that makes both parties liable for any minimum wage and overtime violations, the US Department of Labor warns.
A downward trend in the size of settlements reversed last year, as plaintiffs figure out ways to work around a Supreme Court ruling that made it more difficult for plaintiffs to prove commonality to bring a class action.
On December 17, 2015, Seattle Mayor Edward B. Murray signed the Wage Theft Prevention and Harmonization Ordinance amending the municipality's current labor laws addressing paid sick and safe time, job assistance, wage theft and minimum wage. Several sections of the Employment Law Manual, three Quick Reference charts, and three poster landing pages have been updated. Additionally, two new landing pages and four new Legal Timetable entries have been added.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.