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Showing posts for: Employee Classifications

Jan 29 2024
Employee ClassificationsWage and Hour

DOL publishes FLSA rule on independent contractors vs. employees

  The U.S. Department of Labor (DOL) has published a new regulation describing how to determine whether a worker is an independent contractor or employee under the federal Fair Labor Standards Act (FLSA). The regulation uses an “economic realities” test to evaluate whether the worker is economically dependent on the hiring entity (indicating employee status)…

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Nov 02 2023
Employee ClassificationsLabor RelationsWage and Hour

NLRB expands interpretation of joint employment

The National Labor Relations Board (NLRB) recently issued a new regulation that broadly designates separate companies as joint employers for purposes of having a duty to comply with the National Labor Relations Act (NLRA). The rule affects potential joint employment relationships such as client employers and their staffing agencies, or franchisors and their franchisees, or…

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Mar 02 2023
Employee ClassificationsWage and Hour

Evaluate classifications for employees paid a daily rate

In a recent decision from the U.S. Supreme Court, an employee who was paid on a daily rate basis and earned more than $200,000 annually was found to be nonexempt and therefore eligible to recover overtime under the federal Fair Labor Standards Act (FLSA). The employee was a “tool-pusher” on an offshore oil rig and…

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Feb 02 2023
Employee ClassificationsOregonWage and Hour

Minimum salary for noncompete agreements rises in 2023

Employers in Oregon and Washington who use noncompetition agreements must review enforceability requirements and increased minimum salary thresholds annually in order to ensure that their contracts remain legally enforceable at the time of separation from employment. Oregon: For valid noncompete agreements signed on or after January 1, 2022, the minimum gross salary for separated workers…

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Jan 19 2023
Employee ClassificationsQ&AWage and Hour

Q&A: Using rounding in timekeeping may violate state law

Question: We use a timekeeping system that rounds employees’ punches in and out to the nearest quarter of an hour. I recently heard this may be risky, but I thought federal law allows it? Answer: Both points are true: This practice may be risky under state wage and hour law, even though the regulations in…

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Jan 19 2023
Employee ClassificationsQ&AWage and Hour

Q&A: Evaluate administrative exemption from overtime carefully

Question: We have a dispatcher who we’ve always considered to be exempt from overtime. A newly hired member of our HR team is now questioning this classification. How can we determine who’s right? And if it turns out the dispatcher is probably nonexempt but we decide not to make any changes, what’s the risk to…

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Dec 15 2022
Employee BenefitsEmployee ClassificationsHiring

WASHINGTON: L&I policy addresses job posting requirements

The Washington Department of Labor and Industries (L&I) recently released a new Administrative Policy (ES.E.1) that provides guidance on new job posting requirements. As we previously reported, employers with 15 or more employees must include specific information on wages and benefits in all job postings beginning January 1, 2023. The Administrative Policy provides informal guidance…

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Aug 18 2022
Employee ClassificationsQ&AWage and Hour

Q&A: Can we convert an employee into an independent contractor?

Question: Our employee is retiring soon, but we’d like her to finish a few projects after she retires. We don’t want to provide benefits, so we’d like to have her sign a contract saying she’s working as an independent contractor. Are we okay doing this? Answer: It’s unlikely that you’d be able to justify classifying…

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Mar 24 2020
COVID-19Employee ClassificationsWage and Hour

Q&A: Know pros/cons of reclassifying exempt workers to cut costs

Question: Our company is facing financial difficulty, so we’re considering reclassifying some salaried exempt workers as hourly nonexempt workers to cut down on payroll hours. Is that a good idea? Answer: Maybe, but reclassifying workers can have unintended negative consequences. Unfortunately, many companies are scrambling for ways to save money right now. Some employers are…

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Jan 02 2019
DisabilityEmployee BenefitsEmployee Classifications

Best practice idea: Follow up after making disability accommodation

One of our Vigilant members has implemented a best practice that we think is worth sharing: annual check-ins with employees who are receiving workplace accommodations under the Americans with Disabilities Act (ADA). Annual Check-In: What’s Involved The company sends the employee a letter each year, reviewing what accommodations have been made and asking: (1) whether…

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May 24 2016
Employee Classifications

Truck drivers misclassified as independent contractors cost employer $7 million

A shipping company in California will pay $7 million after improperly classifying 38 truck drivers as independent contractors, providing yet another example of the importance of accurate employee classification. The issues for the California shipping company began when the local Teamsters union attempted to organize the drivers. During the organizing process, the California Department of…

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