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…
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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…
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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…
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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…
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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…
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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 your…
Read More…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…
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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)…
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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…
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