Exempt or non-exempt, or maybe independent contractor- proper classification of employees has many employers teetering on the edge of compliance. With wage and hour law violations already one of the most common causes of employment litigation and regulatory audits the U.S Department of Labor, along with multiple states, has announced new legislation and enforcement guidelines. It is more important than ever that employers ensure that all employees are correctly classified and paid accurately according to the classification.
The Wage and Hour Division (WHD) of the U.S. Department of Labor has proposed regulations that require employers notify workers of their FLSA rights, and to provide them with information regarding hours worked and methods of wage computation. In addition to the proposed WHD regulations Congress is considering The Fair Playing Field Act of 2010 and The Employee Misclassification Prevention Act of 2010. These acts are expected to pass in 2010 or early 2011.
Beyond the federal regulations, New York, Alaska, Connecticut, Delaware, Hawaii, Idaho and Illinois require that all new hires be provided with written notice of: their pay rate(s); their overtime pay rate (if they qualify for overtime pay); and their regular payday. New York also requires that every employer that has employees classified as exempt must “ perform a classification analysis, disclose that analysis to the worker, and retain that analysis to give to the WHD enforcement personnel who might request it.”
For additional information on the Fair Labor Standards Act, employee classification and wage payment download the free webinars “Essential of Wage and Hour Law”, Advanced Wage and Hour Law” or “California Wage and Hour Law for Dealerships at www.kpaonline.com/news-and-events/webinars/recorded-webinars.html. HotlinkHR clients may contact the HR Advice Line for additional assistance in employee classification.
