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 Minimum Wage, FMLA and Other Leaves sections of the Employment Law Manual have been updated after the San Diego City Council overrode a veto of its new minimum wage and paid sick leave ordinance.
In-depth review of the spectrum of California employment law requirements HR must follow with respect to minimum wage.
Newly revised IRS procedures allow independent contractors to stop or prevent backup withholding on reportable employer payments by validating and presenting a Social Security card to an employer.
In-depth review of the spectrum of Colorado employment law requirements HR must follow with respect to recordkeeping for employee compensation purposes.
In-depth review of the spectrum of Maine employment law requirements HR must follow with respect to recruiting.
If the council overrides an expected veto, the minimum wage will start at $9.75, effective January 1, 2015, then rise to $10.50 in 2016 and to $11.50 in 2017. Starting January 1, 2019, and every January 1 thereafter, the minimum wage will be adjusted for inflation.
Many states have minimum wage requirements. This Quick Reference chart sets forth the state minimum wage rates for all 50 states plus the District of Columbia.
In-depth review of the spectrum of Minnesota employment law requirements HR must follow with respect to Minimum Wage.
In-depth review of the spectrum of Federal employment law requirements HR must follow with respect to Managing Employees in Special Situations
President Obama has signed an Executive Order protecting lesbian, gay, bisexual and transgender (LGBT) individuals from discrimination and harassment.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.