The Rule Book Compliance Updates

Transcription

1 The Rule Book Compliance Updates Presented by Chris Bryant Technical Services Analyst Marissa Eubank Training Specialist Kristine Olson Senior Compliance Analyst

2 I-9 Ban the Box FLSA Overtime EEO Reporting OSHA Minimum Wage Sick Leave NLRB Discussion

3 Disclaimer The information in this presentation is being presented by Avionté as a general informational and educational service to its clients and prospective clients. This information should not be construed as, and does not constitute, legal advice nor accounting, tax, or other professional advice or services on any specific matter. Participants should consult with their legal counsel or other professional advisor before acting on any information contained in this webinar. Avionté expressly disclaims all liability in respect to actions taken or not taken based on the contents of this webinar.

4 I-9 Facts I-9 Retention - 3 years after the date of hire OR 1 year after the date employment has ended I-9 expired on 3/31/2016 but still valid Employers must review original identity documents. Alien number must 9 digits long

5 I-9 E-Document Process This document needs to be completed within the 3 business days of employee s first day of employment. Section 1 Employee fills out On Employee Portal or lobby computer Section 2 Employer fills out This is completed after the Employee has filled out section 1. Must physically examine their documents for list A,B & C Receipts in lieu of original documents may be acceptable in certain instances (if the employee s document has been lost, stolen or damaged). The replacement document must be presented to the employer with 90 days of hire. For more info:

6 Proposed I-9 Changes Current version of I-9 is still valid Potential changes include: Validation check (SSN) Instructions button Start Over button

7 Proposed I-9 Changes Section 2 potential changes include: Drop down list for document titles Additional Information text box

8 Ban the Box What is it? Regulates employers ability to ask about applicants and employees criminal history Can t ask about conviction history on job applications Trend since 2000 and endorsed by EEOC & current administration

9 Ban the Box States (for private employers): Hawaii (1998) Illinois (2014, 2013) Massachusetts (2010) Minnesota (2013, 2009) New Jersey (2014) Oregon (2015) Rhode Island (2013) Source: Vermont (2016, 2015) Cities: Seattle, Austin, Philadelphia, San Francisco

10 Ban the Box What to look for Asking about criminal history on job application Asking specifically about a felony on job application Make sure to delay background check inquiries until later in the hiring process (such as after first interview or until conditional offer of employment made). May limit how an applicant s criminal history may be taken into account at any stage of the hiring process. Refer to the EEOC guidance of 2012 on the use of arrest & conviction records.

11 FLSA Overtime: Background Exempt = Meets BOTH the duties test and the salary test. Does not need to be paid overtime for hours worked in excess of 40 hours a week. Non-exempt = Fails either duties test or salary test Must be paid overtime for hours worked in excess of 40 hours a week. Duties Test ( white collar exemptions ): Must meet one of the following categories based on their job duties: executive, administrative, professional, computer professional or outside sales Note: Definitions found here, Salary Basis Test Must be paid on a salary basis (ie. Not paid hourly). Salary Level Test Must be paid no less than $455 per week.

12 Changes effective December 1, 2016: Sets the standard salary level at the 40 th percentile of earnings of full time salaried workers in the lowest-wage Census Region, currently the South. Sets the wage from current level of $455 to $913/week Increases the requirement for highly compensated employees to $134,004 per year, at the 90 th percentile of full-time salaried workers nationally. Allows employers to use nondiscretionary bonuses and incentive pay to satisfy up to 10% of the required salary (ie. Up to $91.30 per week), provided the compensation is paid at least quarterly. Updates the salary level every 3 years to maintain the levels at the percentile above, starting Jan 1, What is not changing? Duties test Minimum wage Change to work week or pay periods

13 FLSA: Let s break this down Weekly pay of $913: $91.30 of that can be commissions, incentive pay, nondiscretionary bonuses (max of 10%) $ must be salary Annually, employee pay must reach $47,476 to maintain exemption: $4, of that can be commissions, incentive pay, nondiscretionary bonuses (max of 10%) $42, must be salary

14 FLSA: Options 1 Keep employee exempt and increase wages to required salary amount. 2 Reclassify employee as non-exempt and pay overtime. 3 Reclassify employee as non-exempt and pay overtime; lower wages to account for overtime pay. 4 Reallocate worked hours; hire additional resources.

15 FLSA: Catch Up Payment Problem: You may want to keep many of your sales team recruiters as EXEMPT employees. But what if they don t make enough in commissions and fall below the weekly salary level? Solution: Pay them a catch up payment. Pay within 1 pay period of the end of the quarter Quarter can be calendar or fiscal at your discretion when quarter begins Can do the catch up quarterly, even if commissions, etc. are paid more frequently. If employee terminates mid-quarter, still pay the catch up payment. More to come on this stay tuned in to the DOL website for more information!

16 Gather & Analyze Data Make Decision Communicate & Implement

17 1 Determine who you currently have classified as exempt. 2 Ask, Do they meet the duties test? 3 Ask, Do they meet the new salary level of $913/week? Note: Take into consideration any nondiscretionary bonus & the max of $91.30 per week 4 Finalize list of employees that no longer meet the exemptions. 5 How many hours do these employees work? Do they work over 40 hours in a week? Note: Include all compensable time: on call, travel time, mandatory meetings/trainings 6 Compare costs of increasing pay vs. making non-exempt.

18 EEO-1 Reporting EEO-1: would need to include aggregated pay info July 13 th revised proposal issued Comment (again) until Aug 15 th Employers with more than 100 employees Provide the EEOC and the DOL with insight into pay disparities and help enforce pay discrimination laws

19 EEO-1 Changes EEO-1: 2017 report due March 31, 2018 (not Sept 30, 2017) The "workforce snapshot" changed to a pay period between October 1 and December 31 of the reporting year Requires Box 1 W-2 wages and hours worked Hours Worked follows FLSA definition Must report hours for exempt employees as well Report actual hours worked Use a calculation provided of 40 hours (if full time) times # of weeks employed in reporting year.

20 EEO-1 in Avionté Standard AQ is called Federal EEO Reporting. Provide access in Admin Tools > Report.

21 OSHA Updates August 10, 2016 Nov 1, Fed. Reg Anti-retaliation protection: can t discourage employee from reporting injury or illness Must inform employees of their right to report free from retaliation Process for reporting work-related injuries and illnesses must be reasonable and not deter or discourage employees from reporting Do not maintain blanket post-accident drug testing

22 OSHA Penalties: Penalty levels have been the same since 1990 Effective Aug 1 st, 2016 Going up 78% Increasing due to Bipartisan Budget Act of 2015 Requires one time catch up increase

23 OSHA Penalties: Penalty violation Current penalty Possible penalty after 8/1/16 False statements $10, months jail $17, months jail Less than serious $7,000 $12,471 Serious violations $7,000 $12,471 Willful and repeated violations $70,000 $124,709 Failure to correct $7,000 $12,471 Death of employee $10, months jail $17, months jail Source:

24 OSHA Reporting Did you know this data will be made public? It is an effort to encourage employers to improve workplace safety. OSHA - Jan 1, 2017: covered employers with 250 or more must file electronically Form 300A Summary of Workplace Injuries and Illnesses, OSHA Form 300 Log of Work-Related Injuries and Illnesses, and OSHA Form 301 Injury and Illness Incident Report

25 OSHA Reporting in Avionté Search for OSHA in Reports. You will see the OSHA Form 300 and OSHA 300A OSHA Form 300: Log of work related injuries and illnesses Shows: Start Date, End Date, Order ID, Assignment ID, Customer Name, Emp Name OSHA 300A: Summarizes work related injuries and illnesses Shows: Start Date, End Date, Parent Customer ID

26 Minimum Wage Updates Wages are increasing everywhere. Trend in states & cities trying to raise minimum wage to $15/hr over, typically over several years. Introduced in Federal Raise the Wage legislation would increase federal minimum wage from $7.25/hr to $12/hr by 2020.

27 Minimum Wage Increases Total 15 states index their minimum wages to rise automatically with the cost of living. 10 states currently index increases each year: Arizona, Colorado, Florida, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon and Washington. Five more states, plus District of Columbia, will index minimum wage increases annually in future years: Alaska (2017), D.C. (2017), Michigan (2019), Minnesota (2018), South Dakota (2016) and Vermont (2019).

28 2016 Increases State minimum wage changes effective January 1, 2016 Alaska: $9.75 per hour. California: $10.00 per hour. $15 per hour by Colorado: $8.31 per hour. Connecticut: $9.60 per hour. The minimum wage is also scheduled to increase to $10.10 per hour on January 1, Massachusetts: $10.00 per hour. The minimum wage is also scheduled to increase to $11.00 per hour on January 1, Michigan: $8.50 per hour. The minimum wage is also scheduled to increase to $8.90 per hour on January 1, 2017, and $9.25 on January 1, Nebraska: $9.00 per hour. Rhode Island: $9.60 per hour. Vermont: $9.60 per hour. The minimum wage is also scheduled to increase to $10.00 per hour on January 1, 2017, and $10.50 on January 1, State minimum wage changes effective July 1, 2016 Washington D.C: $11.50 per hour on July 1, Maryland: $8.75 per hour on July 1, 2016, $9.25 on July 1, 2017, and $10.10 on July 1, Oregon: $9.75 per hour on July 1, 2016 for med & high density counties; $9.50 for low density counties State minimum wage changes effective August 1, 2016 Minnesota: $9.50 per hour for large employers on August 1, 2016, $7.75 per hour for small employers.

29 Minimum Wage in Avionté Admin Tools > Employer > Locality/Country Click Add New to enter new state

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31 Be on the lookout! Accrual rates - many accrue at 1 hour paid leave for 30 hours worked, but not all. Pay close attention to: carryover cap/max accrual when they can start using leave what the leave can be used for paystub requirements

32 Sick Leave Updates Push to pass at state level instead of city Preemption: Alabama, Michigan, North Carolina, Wisconsin, Louisiana, & Florida have passed preemption bills that would prohibit localities from enacting workplace policies. Oppose in court (Pittsburgh & potentially in Minneapolis) Federal law: HR932 Healthy Families Act Introduced Feb 2015 in the House Would apply to employers with 15 or more employees In Committee, looks unlikely to pass committee

33 Sick Leave in Avionté Admin Tools > Employer > Accrual Plan

34 NLRB Updates Browning-Ferris, decided 2015 Changed rules for when joint employment exists Miller & Anderson, decided July 11 Proper to combine employees and staffing agency workers into a single bargaining unit EVEN IF employers don t want to bargain as a team Staffing company could be forced to bargain with own employees & those full time employees of the client Facilitate unionization in workplaces that use temporary employees Reversing their 2004 Oakwood Care Center decision & rolled back to 2000 M.B. Sturgis Inc.

35 NLRB Updates Miller & Anderson, decided July 11 As long as employees share community of interest including: Type of work performed Interchangeability between employees Wages and benefits Similarity of working conditions Common supervision & operational integration Possible that staffing agency employees and the regular employees of the client will not have a community of interest. ASA Issue Paper Complex issues could arise Likely to have little practical effect Temp workers have shown little interest in joining unions

36 In partnership with Mark Young President Andrew Nielsen Manager of Compliance Services Contact Us myhrcounsel, LLC 100 S. 5th St., Suite 800 Minneapolis, MN (612) Visit us on the web:

37 Let the games begin. Have you noticed the Olympic sport icons on each slide? List as many as you can from the slides! The one below is a freebie!

38 Discussion Questions? What other compliance topics would you like to hear more about? Thoughts & ideas? Send them to and come visit us in the Minnesota room.