Employment Laws to Watch in 2017

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

Employment Laws to Watch in 2017

With a change in administration just around the corner, President-Elect Trump’s priorities are starting to take shape. What can we anticipate for 2017? It is still too early to forecast what the upcoming year will bring, but here are five employment areas to keep your eye on in the months ahead.
Read this article...

How to Determine if a Job is Exempt or Non-Exempt

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

exemptvsnonexemptemployees

The terms non-exempt and exempt can cause a lot of confusion for workers and employers. Exemption status determines if you receive overtime pay for working more than 40 hours in a work week. The exemptions are governed by the Fair Labors Standard Act (FLSA).

Non-exempt 

Non-exempt employees must be paid at least the minimum wage and overtime pay for any work performed over 40 hours worked in a week. This time must be paid at a rate of time and one half of their regular pay rate for each hour of overtime.

Exempt

Exempt employees are not granted the same protection under the FLSA, therefore they are paid the same dollar amount regardless of the number of hours worked in a week. Exemptions from the overtime requirements of the FLSA are just that—exceptions to the rule. They are very narrowly construed, and as the employer, you will always bear the burden of proving that you have correctly classified an employee as exempt. When in doubt on the classification of a job, it is best to make them non-exempt.

For most professions, an individual is an exempt employee if he or she meets all of the following three tests: 

  1. Is paid at least $23,000 per year ($455 per week)
  2. Is paid on a salary basis
  3. Performs exempt job duties

But how do you know if the individual performs exempt duties?  As a general rule, exempt employees tend to perform relatively high-level duties with respect to the company’s overall operations.

The most common FLSA exemptions are white collar exemptions and are broken down into five main categories, including: 

  1. Executive
  2. Administrative
  3. Professional
  4. Outside sales
  5. Computer

Other issues

There are also some other concerns to consider when determining non-exempt and exempt status.

  • Time off. Although there are exceptions, it’s usually illegal to give non-exempt employees time off instead of paying them overtime.
  • Child labor. Federal and state laws include special requirements to protect workers under the age of 18. These laws can affect the type of work, wages, and hours that an employee can complete.
  • Breaks. Employers need to make sure they follow federal and state law requirements regarding breaks, including meal breaks, for their employees.

If you have any additional questions regarding non-exempt and exempt employees, and are an ERC Member, contact our HR Help Desk or visit the U.S. Department of Labor (DOL) FLSA page at http://www.dol.gov/whd/flsa/.

By providing you with information that may be contained in this article, the Employers Resource Council (ERC) is not providing a qualified legal opinion concerning any particular human resource issue. As such, research information that ERC provides to its members should not be relied upon or considered a substitute for legal advice. The information that we provide is for general employer use and not necessarily for individual application.  We also recommend that you consult your legal counsel regarding workplace matters when and if appropriate.

HR, compliance, termination, or compensation questions?

ERC has a team of HR Help Desk Advisors to provide timely and trusted answers.

Contact the Help Desk

Good News, the Unemployment Rate Went Up?!

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

Good News, the Unemployment Rate Went Up?!

Yes, you read the title correctly – the 2015 January unemployment rate went up and many economists are hailing this as a positive sign for the economy.

When it comes to measuring the health of the job market, the unemployment rate undoubtedly gets the most attention, and criticism, when it is released on a monthly basis by the Bureau of Labor Statistics (BLS). Admittedly, accounting for every external real world factor and boiling it down into a single figure is not without its flaws, which is why, as a standalone statistic, simply citing an unemployment rate of 5.7% for January 2015 (a 0.1% increase over December 2014) does not tell the whole story.
Read this article...

The State of the Union: 5 Proposals Every Employer Should Know About

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

The State of the Union: 5 Proposals Every Employer Should Know About

The State of the Union address is widely viewed as a platform merely for a display of pomp and circumstance. There is an understanding that most of the topics addressed won’t come to fruition based on political pressures and divisions that will make implementation nearly impossible.

While the policy agenda outlined in President Obama’s speech in January of 2015 is likely to follow this same pattern, a mention during the State of the Union does bring additional attention to issues and policies that would otherwise go largely overlooked. For employers, this year’s speech contained a number of bullet points that while they may not become the law of the land, are definitely worth noting.
Read this article...

The Ultimate 2015 HR Outlook

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

The Ultimate 2015 HR Outlook

With 2015 right around the corner, we broke down the most talked about changes and what to expect in the next year for you and your company.

Minimum Wage

Ohio’s minimum wage will automatically increase to $8.10 per hour on Jan. 1, a 15-cent bump over the current pay. For tipped employees, the minimum wage rises to $4.05 per hour, a six-cent increase.

Ohio is one of 23 states that have a minimum wage higher than the $7.25 federal minimum. Washington has the highest rate at $9.32 per hour.

The minimum-wage increases apply to employees of businesses with annual gross receipts of more than $297,000 per year.
Read this article...