New Overtime Rules Suspended for Now | Payroll link

December 1, 2016December 1, 2016 ~ knjohn ~ Leave a comment

Many employers have been wrestling with plans to comply with new U.S. Department of Labor (DOL) overtime rules since last May. That’s when the rules were finalized, with a December 1 compliance deadline. Those new rules included raising the minimum salary overtime exemption to $913 per week from $455. A little more than a week before the deadline for the rules was to take effect, a federal court has issued an injunction, at least temporarily blocking implementation of the changes.

In its decision, the court stated it believes the DOL exceeded its authority in promulgating the rule. In addition, the court said the DOL failed to follow Congress’s intent, which was to reexamine the duties test of the overtime rules, and not to focus solely on the salary level, as the final rules do.

The DOL’s initial response was to state that it “strongly disagrees” with the ruling, and is “currently considering all of our legal options.” A couple of short-term legal scenarios remain possible: The U.S. District Court for the Eastern District of Texas, which issued the ruling, could drop its temporary injunction.

Know the Rules Before Your Organization Brings in Interns | Payroll Link

August 4, 2016 ~ knjohn ~ Leave a comment

If you have a backlog of projects piling up because there just aren’t enough hours in the day, you may consider hiring interns to help you get caught up. This can be a great idea that provides benefits for your company and the students.

However, if you want help from interns, don’t expect to get it for free. The requirements for unpaid internships are strict. In recent years, there’s been a wave of legal actions taken by those who’ve served as interns. They’ve accused employers of violating the federal Fair Labor Standards Act (FLSA) and/or state laws by not paying them.

The Department of Labor (DOL) has a six-factor test that you can use to determine whether a relationship with a worker could qualify as an unpaid internship. Keep in mind that this is a test, not a law. But don’t take it lightly — or you risk the possibility of incurring a fine or other legal action.

What You Must Know About New Overtime Rules: 9 Point Checklist | Small Biz Trends

July 11, 2016July 11, 2016 ~ knjohn ~ Leave a comment

On May 18, the U.S. Department of Labor (DOL) announced final updates to the Fair Labor Standards Act’s “white collar” overtime exemptions.

The new overtime rules (known as the “final rule”) increase the salary threshold needed to qualify for overtime exemption from $455 per week ($23,660 per year) to $913 per week ($47,476 per year.) and affect 4.2 million workers.

Also, the total annual compensation requirement needed to meet the highly compensated employee (HCE) exemption will increase from $100,000 per year to $134,004.

Any business that employs workers with salaries under the new threshold will need to consider their best course of action or face paying thousands in higher wages. They could also be subject to employee lawsuits for failure to comply with the rule. No business is exempt, regardless of size.