President Obama is urging the Senate to pass the Paycheck Fairness Act, which died in 2008 when the Senate did not take action on it before the end of the Congressional session. In a written statement issued on July 20, 2010, President Obama called the proposed law "a common sense bill" to ensure equal pay for equal work by men and women. If the Paycheck Fairness Act is passed as currently written, the result would be large-scale changes to the Equal Pay Act (“EPA”), which was added in 1963 … [Read more...] about President Obama Urges Action on Paycheck Fairness Act
Look Back: 111th Congress has Taken Active Role in Shaping Employer Actions
In a few weeks, the United States Congress will take a late-summer recess before returning to close out the 111th Congress. Now is a good time to take stock of some of the recent federal law changes, and legislation still being considered, that affect employers and their employment policies. More than most, this Congress has enacted numerous and substantial changes to the federal employment laws. As an employer, if you haven't done a thorough review of your employee policy manual in the past … [Read more...] about Look Back: 111th Congress has Taken Active Role in Shaping Employer Actions
Employers, Are You in the Safe Harbor?
In the past year, the U.S. Department of Labor, the Equal Employment Opportunity Commission (EEOC), and the Internal Revenue Service all have announced a renewed focus on enforcement initiatives. With increased funding from the Obama administration, these agencies will have more investigators devoted to ensuring compliance with the laws that they enforce. Over the next several weeks, we’ll update you on steps that you can take now to be sure you’re in the best possible situation if you become … [Read more...] about Employers, Are You in the Safe Harbor?
Court’s Texting Decision Shows Importance of Updated Policies
The United States Supreme Court considered an employer’s policies on e-mail and texting use in a decision issued on June 17. As reported previously in this blog, City of Ontario v. Quon raised the issue of whether a governmental employer who reviewed the content of text messages sent using an employer-provided pager had committed an unlawful search in violation of the Fourth Amendment to the U.S. Constitution. Quon was a SWAT team police officer who was issued a pager capable of sending and … [Read more...] about Court’s Texting Decision Shows Importance of Updated Policies
Texas Employer Loses in Battle Over “Per Diem” Pay
Calculating the amount of overtime that must be paid to your hourly employees may be harder than you think. A recent decision from the Fifth Circuit Court of Appeals is a reminder that getting it wrong can have serious consequences. In Gagnon v. United Technisource, Inc., an employee claimed that his employer paid him a “per diem” as a scheme to lower his regular rate of pay for overtime purposes. The employee was highly skilled at painting the interior and exterior of aircraft. He was paid … [Read more...] about Texas Employer Loses in Battle Over “Per Diem” Pay
New Wave of Legislation: Wage Theft Laws
A new type of wage and hour legislation is gaining steam around the country. Although you may not be familiar with the term “wage theft,” chances are good that you’ll be hearing more about it soon. What is wage theft? Generally, the term refers to an employer’s failure to pay wages when they are due and in compliance with legal wage rates. In the past year, multiple cities, counties, and states around the country have enacted their own laws to enforce wage and hour provisions. This is … [Read more...] about New Wave of Legislation: Wage Theft Laws
Department of Labor Announces “Plan, Prevent, Protect”
The U.S. Department of Labor recently announced that its staff will seek to add new responsibilities for employers, requiring them to step up proactive compliance measures, especially in the areas of safety, health, and wage and hour laws. This is important because it reflects a new emphasis on preventing violations of laws that affect workers, as opposed to the more common tactic of trying to catch and punish employers who may have been violating labor laws for months or years. Deputy Labor … [Read more...] about Department of Labor Announces “Plan, Prevent, Protect”
Proposed Federal Law Targets Employee Misclassification
Correctly classifying employees and independent contractors is about to become even more important. On April 22, the Employee Misclassification Prevention Act (EMPA) was introduced in the United States Congress as an amendment to the Fair Labor Standards Act (FLSA). If it becomes law, the EMPA will impose federal criminal penalties upon employers who categorize workers as independent contractors when they should be treated as employees. The bill (1) subjects employers to potential … [Read more...] about Proposed Federal Law Targets Employee Misclassification
IRS Issues HIRE Act Form for Employer Tax Break
With passage of the HIRE Act (Hiring Incentives to Restore Employment Act) last month, some employers are wondering how to take advantage of the tax breaks provided by the Act. The Act offers both a payroll tax exemption and a tax credit. First, employers who hire certain unemployed workers after February 3, 2010, and before January 1, 2011, may be eligible for a payroll tax exemption of 6.2 percent. The IRS now has issued Form W-11, which employers must complete in conjunction with claiming … [Read more...] about IRS Issues HIRE Act Form for Employer Tax Break
Employee Texting Case Goes to Supreme Court
On Monday April 19, the U.S. Supreme Court is scheduled to hear a case that has important implications for employers who provide cell phone texting and other electronic communications tools to their employees. This case serves as a reminder to all companies to take precautions with electronic communications and the corporate policies that surround them: 1) Be certain to have a corporate policy in place that clearly addresses use of e-mail, text messaging, voicemails, Internet chat, and other … [Read more...] about Employee Texting Case Goes to Supreme Court
