Wage & Hour Laws: A Crash Course for Managers

Transcription

1 Wage & Hour Laws: A Crash Course for Managers PRESENTER: CHRISTINE THELEN

2 TODAY S PRESENTER Christine Thelen, SPHR/SHRM- SCP As Director of HR Services for Trüpp, Christine utilizes her experience in assisting businesses with HR policy, providing training and counsel, and applying her extensive knowledge of employment law. Christine graduated from Temple University James E. Beasley School of Law with a Doctor of Law (JD). Her undergraduate work includes a BA in Government and Economics.

3 The information provided in this presentation is for informational purposes only and not for the purpose of providing legal advice. Please contact an attorney to obtain a legal opinion on any of the topics covered.

4 TODAY S TOPICS Independent Contractor vs Employee Exempt vs Non-exempt Meal and Rest Breaks Wage Theft Overtime Travel Time Paid Time Off (briefly) Final Pay Rules

5 FEDERAL WAGE & HOUR LAWSUITS DOL estimates 70% of employers are violating the Fair Labor Standards Act (FLSA) Key Audit Areas Minimum Wage Overtime Exempt Status Independent Contractor Status High-Risk Industries Construction Child Care Janitorial Landscape Personnel Services Hospitality Healthcare Transportation Cable/Satellite TV Warehousing

6 INDEPENDENT CONTRACTOR V. EMPLOYEE Independent Contractor DOL Misclassification Initiative DOL and the IRS are sharing information to reduce the incidence of misclassification of employees, to help reduce the tax gap, and to improve compliance with federal labor laws. Costs of Misclassification IRS estimates it can cost an employer more than 40% of the contractor s total wages going back three years. Employee Allowed to participate in the employer benefits Given training for work to be done Performs duties dictated or controlled by others Performs duties that are the primary type of work provided for clients/ customers Uses own tools, supplies or equipment Can realize a profit or incur a loss Has un-reimbursable expenses Determines how, when, or where to do the work Relationship is not long-term/indefinite Works for other companies Conducts discrete task(s) that is one part of the business' overall process of production Evaluated on and/or paid for end product

7 EXEMPT V. NON-EXEMPT exempt non-exempt Wrongly classifying a position as exempt can result in stiff penalties, fines and up to three years of unpaid overtime plus interest. Employees who meet the criteria for FLSA s exemption from both minimum wage and overtime pay. Not eligible for overtime compensation. DEFINED OVERTIME Employees not designated as Exempt are eligible for overtime pay and must receive at least minimum wage. Overtime eligible and must report the exact number of hours worked daily. Make deductions to Exempt employee paychecks carefully. Work the hours needed to fulfill their specific job duties. Often this is more than a 40-hour workweek. WORKWEEK DEFINITION Employers must define a workweek for purposes of OT

8 EXEMPT V. NON-EXEMPT CONTINUED Job titles do not determine exempt status, actual job tasks do. Exemption does not apply to blue collar workers, and police, fire fighters, paramedics and other first responders. Certain positions are automatically exempt, such as drivers for motor carriers To be EXEMPT, an employee be paid on a salary basis at not less than $455 per week* and generally must meet one of the following job duty tests. Executive Exemption* Administrative Exemptions* Professional Exemption* Computer Employee Exemption* Outside Sales Exemption Highly Compensated Employees * Could be changing

9 MEAL + REST PERIODS (NON-EXEMPT) OR BOTH WA Meal and rest periods are set by State law. Rest periods are different from meal periods and should be treated separately. Rest periods are considered time worked for purposes of calculating overtime for nonexempt employees. Employees may not leave early, arrive late, or extend their meal period in lieu of not taking rest periods. REST PERIOD MEAL PERIOD At least a 30- minute UNPAID if working more than 6 hours Waiver limited to special circumstances Entitled to 10- minute PAID rest period for every 4 hours Employees needing to express breast milk for a child 12 months old can take additional breaks. Can be several mini-breaks. At least a 30- minute UNPAID if working more than 5 hours Employees waive voluntarily if the employer agrees.

10 AVOIDING WAGE THEFT CLAIMS What is Compensable time? All time worked (authorized or not) Required to be at work location, including waiting to work Breaks in work not long enough for employees to use the time for own purposes Required preparatory activities On-call with such frequency employees can t use the time for own purposes State rules may differ. Know your Company s policy.

11 OVERTIME Overtime is calculated as time and a half which means the employee s regular rate x 1.5. Generally, holiday pay, vacation pay and sick pay are not considered when calculating overtime. If a non-exempt employee works over 40 hours in a workweek, even if it is not authorized, the employer is responsible for payment. State rules may differ. Know your Company s policy.

12 TRAVEL TIME Type of Travel Definition Rule for Payment PORTAL TO PORTAL TRAVEL BETWEEN WORK SITES SPECIAL ONE DAY ASSIGNMENT OVERNIGHT TRAVEL Normal home-to-work or work-to-home travel at the beginning and end of work day. Travel from one job site to another during the work day. Oregon: One-day assignment >30 miles from the employee's normal work location; can subtract time for commuting to normal work location. Washington: Another city, no mile parameters; can subtract time for commuting to normal work location. Travel time during normal working hours on both normal and abnormal work days (e.g., weekends); travel time during outside of normal working hours, except if traveling as a passenger on an airplane, train, boat, bus, or automobile. Not considered paid time. Considered paid time. Considered paid time. Considered paid time.

13 PAID TIME OFF Sick leave laws Paid leave Use-it-or-lose-it rules State rules differ. Know your Company s policy.

14 FINAL PAY RULES Timelines are state specific - Typically due on next payroll date Can depend on type of separation and amount of notice give. Oregon: Involuntary - due next business day Voluntary with 48 hours notice - due last day Voluntary without 48 hours notice - due within 5 days Washington: next pay day What must be paid State rules differ. Know your Company s policy.

15 QUESTIONS? TRÜPP Christine Thelen TRUPPHR ( )