Worker claimed employer's violations were "willful" When an employee's job responsibilities shift, perhaps as part of a company reorganization, it's important to ask: Does that person's exemt or nonexempt status in the payroll system need to change? One New York company had to defend itself in a Fair Labor Standards Act (FLSA) lawsuit because a [...]
Actual language in law matters more than its interpretation Opinion letters from agencies like the Dept. of Labor provide employers with helpful guidance. But beware, they aren't the be-all and end-all for wage and hour law. Relying too heavily on opinion letters can be a big mistake, as one employer learned after a recent lawsuit [...]
Contributions limits, taxable income & more The IRS has recently released some important updates you'll need to know for the fourth quarter of this year. Contribution limits for health savings accounts (HSAs) The IRS has released the maximum contribution limit for HSAs when employees are participating in a high-deductible health plan (HDHP). For employees with [...]
Recent lawsuit shows employers right way to make the change It's sometimes necessary to change your pay cycle. In this situation, it's key to proceed with caution. Along with any compliance and legal issues that may arise due to state prompt-payment laws, you'll have to address workers' concerns about their checks. One company's pay change [...]
Q: With so much of our workforce being remote due to COVID, we're thinking of switching to text messaging to remind people about Payroll deadlines and let them know about other important info and changes. What considerations should we keep in mind when texting employees for work purposes? A: Text messaging can be a great [...]
In Massachusetts, there's now a new definition of what's considered a "wait staff employee" in the restaurant industry, thanks to HB 5250. A wait staff employee is a waiter/waitress, bus person or someone working in a quick-service restaurant who prepares or serves food or beverages as part of a team of counter staff. The definition [...]
Employer: Supermercado Lomabonita, St. Paul MN Business: Grocery store Law broken: Overtime provision of the Fair Labor Standards Act Type of violation: The employer didn't combine hours employees worked at multiple store sites during the week, meaning they weren't paid overtime for hours worked over 40. In addition, some workers were incorrectly classified as exempt [...]
Why it's key to encourage proper timekeeping practices Supervisors must make sure employees are following your timekeeping policies as they're written. Even if the policy you have on paper is compliant with the law, a regular pattern of the policy being ignored or discouraged can work against your company in any disputes. One employer learned [...]
Dispute over whether payment was actually discretionary If a bonus is meant to be discretionary, it's key that its terms meet all the requirements set by the Department of Labor (DOL). Otherwise, employers could run into problems. One employer claimed it gave its workers a discretionary bonus, but the circumstances behind it suggested otherwise. Was [...]
Employers that make deductions from employees' wages for damaged or missing equipment must follow the law carefully to stay out of hot water. In Galleher v. Artisanal LLC, an employer ended up in court because of its practice of regularly deducting the cost of any broken property, such as dishes and glassware, from workers' paychecks. [...]
