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
Itterly v. Family Dollar Stores, Inc., illustrates that employees can spend the majority of their time performing routine work and still be exempt from federal overtime rules.
The District of Columbia's Wage Theft Prevention Amendment Act of 2014 and its emergency amendments recently took effect. Several sections of XpertHR are affected and have been updated.
The 9th Circuit's ruling in Navarro v. Encino Motorcars, LLC, conflicts with rulings from the 4th and 5th Circuits, setting up a split in the circuits that may eventually be resolved by the Supreme Court.
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.
Nevada employers that offer qualifying health benefits must continue to pay nonexempt employees at least $7.25 per hour. All other Nevada employers must continue to pay nonexempt employees at least $8.25 per hour.
In-depth review of the spectrum of Federal employment law requirements HR must follow with respect to Managing Employees in Special Situations
California employers seeking to advise employees on how to proceed in case of bad weather should consider including this model policy statement in their handbook.
California employers that are covered by the California Labor Code and Wage Orders and the federal Fair Labor Standards Act (FLSA), which require employers to properly classify their employees, should consider including this model policy statement in their handbook.
California employers seeking to establish expectations for meal and rest breaks and to demonstrate compliance with applicable federal and California law should consider including this model policy statement in their handbook.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.