On August 8, 2020, President Trump issued a Presidential Memorandum allowing employees to have a tax “holiday” deferring the normal employee payroll tax withholding for social security (6.2% of wages) from September 1-December 31, 2020. This was designed to provide a much needed boost to employees in their take-home pay. Unfortunately, it comes with a
The U.S. Department of Labor announced June 24 that it will no longer automatically pursue double damages for overtime and minimum wage violations when it seeks to settle claims prior to filing suit. This new policy is effective July 1, 2020. This announcement follows an executive order by President Trump to eliminate regulations and enforcement
With a global pandemic comes wage and hour considerations that may not have been issues for employers pre-pandemic.
(1) Business expenses
With employees working remotely, workers are incurring necessary business expenses related to Internet access, print cartridges, personal cell phones, data plans, paper, and other equipment. In addition, even employee-provided face coverings (when required) and
UPDATED 3/30/20: The Department of Labor released some guidance on the upcoming paid leave for COVID-19 absences. There is a fact sheet for employees, fact sheet for employers, and Q&As.
How do employers calculate the 500-employee threshold?
The 500 employee count is done on the date an employee tries to use the
The federal Department of Labor finalized regulations–to take effect in March 2020–loosening the test for joint employment. Employers that rely heavily on temporary and/or staffing agencies for workers and businesses that have franchisor-franchisee contracts will find some relief in the new test. Recall that the Obama administration in 2016 expanded joint employment liability through a
The Department of Labor unveiled its final rule updating the salary threshold for so-called “white collar” exempt employees. The final rule, effective January 1, 2020, raises the salary threshold to qualify for one of the “EAP” exemptions to $35,568 per year or $684 per week. The current threshold is $23,660 per year. The Obama administration
Proof that your business is never too small to be noticed by the federal (or state) Department of Labor: a small dental surgery practice was investigated for unpaid overtime violations. The Department of Labor determined that 13 employees were paid their regular hourly rate for all hours worked—regardless of whether they worked more than 40