Wage Payment Issues. Connecticut Business Industry Association September 27, Vincent Farisello (203)

Transcription

1 Wage Payment Issues Connecticut Business Industry Association September 27, 2017 Vincent Farisello (203) Carmody Torrance Sandak & Hennessey LLP

2 Wage Payment Issues

3 Question What information do we have to give employees in writing about their pay and benefits? Can we change their pay and benefits once they are hired?

4 Basic Terms of Employment Conn. Gen. Stat f Advise employees of basic terms of employment Offer letter Postings

5 Questions Can we pay employees bi-weekly? How about monthly? How often must commissions be paid?

6 C.G.S b and 31-71i Employers shall pay wages weekly, or once every two weeks Wages must be paid: On a designated regular pay day Set in advance by employer May seek permission to pay less frequently But no less frequently than monthly

7 Commission Payments Code of Conn. Regs (d) All commissions must be settled at least monthly When an employee is compensated solely or partly on a commission basis, weekly wages must average at least the minimum wage per hour for each hour worked

8 Question Can we require employees to use direct deposit? Can we use electronic pay stubs?

9 Form of Payment of Wages Pay by cash, check, direct deposit or payroll card Direct deposit requires consent Pay within eight days of end of pay period Listing of deductions required

10 Payroll Cards Limitations: Employers cannot require use of pay cards Card must be associated with ATM network available for substantial number of ATMs in the state Employees must be able to make at least three free withdrawals per pay period Employer s costs cannot be passed on to employees

11 Question Can we pay our employees in Bitcoin?

12 Question Our shop is small. Do we really have to give employees meal breaks? What if we give them other breaks throughout the day?

13 Meal Break Conn. Gen. Stat ii 30 minutes unpaid after 7½ hours Can substitute paid breaks Written agreements with different schedules permissible

14 Meal Break Exemptions Public safety issues Duties of a position done by only one employee Employer has less than 5 employees on a shift Continuous nature of the employer s operations requiring employees availability for urgent or unusual conditions Fines for violations

15 Questions We are in our busy time. Must I release a key employee for jury duty? Can I require an employee to return to work after jury duty?

16 Jury Duty Full time employees (30 hours) paid regular wages for first 5 days of jury service No pay when would not have worked No pay when employee would not have worked more than one half of a shift which extends into another day Full time means at least 30 hours per week Certain exceptions

17 Are Employer Loans Okay? Repayment difficulties Deductions

18 Question We offer our employees a generous tuition reimbursement plan, but now several employees have finished their courses and left us immediately. What can we do?

19 Promissory Note Conn. Gen. Stat r(b): No employer may require, as a condition of employment, any employee or prospective employee to execute an employment promissory note. The execution of an employment promissory note is against public policy and any such note shall be void.

20 Question What can I do if there was an overpayment of wages due to a clear mistake?

21 Question One of our employees totaled a Company car. Can we withhold the cost of the damages from his paychecks? What can we do?

22 Payment for Employment Conn. Gen. Stat (b): No employer acting by himself or by his agent, shall, directly or indirectly, demand, request, receive or exact any sum of money or contribution from any person upon the representation or the understanding that such sum of money is necessary to secure employment or continue in employment.

23 Question We just received the fifth garnishment notice for a particular employee. How much of this do we have to tolerate?

24 Garnishments Conn. Gen. Stat a(j): Employers cannot take action against an employee who has garnishments Unless more than 7 wage executions in one year

25 Weather-Related Closings

26 Question If we close the office because of inclement weather, do we have to pay employees who were otherwise scheduled to work?

27 Office Closed Exempt employees: Remember salary basis test! Non-exempt employees: Only required to pay for hours worked Other options: May pay employees for hours not worked Offer employees to use PTO

28 Early Dismissal Caution: Minimum Daily Earnings for certain industries Beauty Shops 4 hour minimum Mercantile Trade 4 hour minimum Restaurants 2 hour minimum Caution: Employment agreements and CBAs

29 Tips Plan ahead! Discuss and plan for situations when office will close Have process in place for informing employees of office closures Provide notice to employees as early as possible Familiarize yourself with your wage obligations Consider having a written policy

30 Hours of Work Limitations Conn. Gen. Stat e(a) Employees cannot be required to work more than 12 days in a row No prohibition on requiring to work on Sabbath days; but reasonable accommodation for religious beliefs No premium pay required for Saturday or Sunday work No requirement to close on holidays

31 Terminations

32 Payment Upon Separation Conn. Gen. Stat c(b) Resignation next regular pay day Termination next business day Labor dispute or layoff next regular pay day

33 Questions We just fired an employee for stealing. What options do we have? Do we have to pay his accrued vacation?

34 Payment of Benefits Upon Termination Conn. Gen. Stat k Employer policy governs No requirement for payment of accrued vacation

35 Payment Upon Separation of Employment No withholding from final paycheck because of failure to return company equipment Deduction for loans Payment of accrued vacation Consider other state laws if you are multistate employer!

36 Thank you! Vincent Farisello Carmody Torrance Sandak & Hennessey LLP