Posts Tagged ‘Overtime Rule’

Help Your Company Remain in Compliance in 2017

Tuesday, November 1st, 2016

CAI’s 2016 Triad Employment Law Update was attended by nearly 200 HR professionals seeking information and updates on federal and state laws and regulations facing North Carolina employers.  HR experts from CAI along with attorneys from Costangy Brooks Smith & Prophete LLP presented on a variety of topics of significance to North Carolina employers. 2016_telu_header_2

A few highlights from this year’s conference:

  • On December 1, 2016, the Overtime Rule goes into effect and raises the threshold to $913/week or $47,476 per year; $134,004 for highly compensated employees. Be sure you fully understand the differences between an employee and an independent contractor.  The USDOL and NCIC have signed an agreement to oversee compliance with various regulations and work together to reduce employee misclassification, among other things.
  • Review your handbooks regularly.  Many employee handbooks contain a policy or language that may trigger a complaint by the NLRB. Ensure that your policies are not too broad or too vague, as this will leave them open to interpretation.
  • Regarding enforcement protections for LGBT, the EEOC states that employers must comply with federal law, even if state law conflicts or offers no protection for this group. LGBT charge filings and resolutions are on the rise as more employees become aware that they can file claims.  For further clarification, you can view the EEOC Fact Sheet on protections for LGBT workers here.
  • Workplace bullying can be physical, physically threatening or non-physical.  In North Carolina, there are currently no laws against workplace bullying but employers should not tolerate bullying on any level.  High turnover, low productivity, lost innovations and difficulty hiring quality employees can all result from workplace bullying.
  • According to ADAAA, employers have an obligation to engage in good faith in the interactive process to determine if an employee has a disability and whether there are reasonable accommodations that can be implemented. Reasonable accommodations under the ADAAA can include assistive devices, change in assignments, service animals and telecommuting.  Many employers have found individuals with disabilities to be productive and loyal employees.
  • Employers may use bonuses to satisfy part of the new standard salary level test. The DOL allows nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard salary test requirement. Such bonuses include, for example, nondiscretionary incentive bonuses tied to productivity or profitability (a bonus based on the specified percentage of the profits generated by a business in the prior quarter.)
  • North Carolina law does allow employers to test job applicants and employees for drug or alcohol impairment and regulates the procedures that employers must follow in implementing such testing. State law does not require employers to drug test, but it does regulate those employers who voluntarily choose to implement a drug-testing program.
  • Don’t put a non-compete clause in an employee handbook.  Have a standalone non-compete or employment agreement with a non-compete provision. When developing a non-compete, keep in mind that the narrower in geographic scope the better.  Be sure to have your job candidate sign this agreement before or on the first day of employment with your company.
  • Penalties for non-compliance of the ACA are $1,000 per enrollee for willful failures.  However, good faith compliance efforts can excuse penalties. The DOL has more information on their website.
  • Title VII prohibits religious discrimination and requires reasonable accommodations as it pertains to religion. Broadly defined, religion includes “Ultimate ideas” about “life, purpose, and death.”
  • Under FMLA an employee who has given birth is entitled to 12 weeks of leave.  Mothers who return to work and are breastfeeding must be provided breaks to express milk and have access to a clean, safe, private place for this purpose.
  • As November 8th nears, employers may want to consider allowing employees some paid time off to vote, if there is insufficient time for the employee to vote outside of working hours. Although there is no statute in North Carolina that mandates time off to vote, terminating an employee for taking time off to vote could be the basis for tort action for wrongful discharge. Employers should encourage their employees to exercise their right to vote.

More than 1,100 North Carolina employers trust CAI to help them minimize liability and maximize employee engagement, contact CAI at 919-878-9222 or email leeann.graham@capital.org to learn more about the many ways we can help you.

 

Are you Prepared for the New Overtime Rule?

Thursday, September 29th, 2016

On December 1, 2016, the new US DOL Overtime Rule will officially go in effect. This new rule determines which employees are exempt from overtime. Employers will not have to pay overtime to exempt employees. If an employee is non-exempt, employers need to pay overtime for actual hours worked in excess of 40 hours in a single work week. The FLSA (Fair Labor Standards Act) defines which jobs may be exempt from the overtime penalty depending on minimum salary and duties performed. Exemption categories include both a minimum salary threshold, and a duties test. Jobs will have to meet both standards to qualify for exemption.

Feeling overwhelmed? We don’t blame you. Where do you begin? How do you prepare?

Organization and communication are a major factor in businesses making the shift to compliance as painless as possible.

Below are 3 key steps in preparing for the upcoming deadline.

  1. Conduct an internal audit to identify positions and employees potentially affected.
    In recent research conducted by Paychex found that one out of five employers were not aware of the final rule, and 55% did not think the new rule applied to them.
  2. Educate your employees on time keeping and tracking overtime.
    Some employees might still receive a salary but are now required to log their worked hours. Set up training on proper time recording practices.
  3. Develop a communication plan.
    Talk to your employees, explain the new law and guidelines. Make them aware of benefit changes, if any, due to the necessary change in FLSA status from exempt to non-exempt. Misclassifications can cause challenges and serious financial consequences.

2016_telu_header_2In our upcoming 2016 Triad Employment Law Update Conference in Greensboro, North Carolina, lead attorneys from Constangy, Brooks, Smith & Prophete, LLP and CAI’s HR experts will provide registrants with key information about current and proposed changes in state and federal employment law. Building the proper infrastructure to protect your business and effectively navigate the Department of Labor’s new overtime rules and related regulations is critical to every company’s success. One of the concurrent breakout sessions at the 2016 Triad Employment Law Update Conference will focus on protecting your business and cover the shrinking white collar exemptions, interns, joint employers, postliminary duties and the DOL’s approach to enforcing these new standards.

Want to learn more about the conference and who should attend visit https://www.capital.org/triadlaw.

Every workplace has questions that need to be answered, and the sooner the better. Contact CAI’s Advice & Resolution team today!