The DOL Has Recruited Allied States To Reduce Worker Misclassification
Company’s should audit their agreements on exempt employees and independent contractors to address any misclassification issues. On December 5, 2011, the Colorado Department of Labor and Employment (CDLE) and the U.S. Department of Labor’s (DOL) Wage and Hour Division signed a memorandum of understanding regarding the improper classification of employees as independent contractors.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Employee Misclassification has the Department of Labor Teaming With the IRS
Because of employee misclassification the Department of Labor and the IRS find the need to collaborate. Independent contractors are ineligible for minimum wage and overtime pay, unemployment insurance, workers’ compensation and social security benefits. And, the government does not collect employment taxes on compensation paid to independent contractors. Therefore, if an employee is misclassified as an independent contractor, he or she loses out on valuable protections and the government loses out on substantial tax revenues.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
How to avoid FLSA Class Action Lawsuits
Does your organization know the difference between the employee classifications? Many companies don’t understand when to properly classify employees as exempt versus non-exempt, and consequently whether to pay overtime. Most think all you have to do to avoid paying overtime is make an agreement with the employee to pay them on a salary basis. While a salary basis test is part of the requirement to make an employee exempt from overtime, that is just a small part of the analysis. Startups are particularly susceptible to this, as staffing is constantly in flux, employees work long hours, and entrepreneurs are still learning the ropes as they go.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Fair Labor Standard Act Hits a Texas Restaurant with Fines
FLSA is an area of employment that every business has to understand for compliance sake. According to a U.S. Department of Labor press release, Darden Restaurants Inc., doing business as Red Lobster in Lubbock, has agreed to pay $27,427 in back wages after an investigation by the U.S. DOL’s Wage and Hour Division found that 109 current and former servers were not properly paid as required by the Fair Labor Standards Act. The company also has been assessed $23,980 in civil money penalties to be paid to the government. Red Lobster in Lubbock is a full-service restaurant, employing approximately 82 workers.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Could This Be Your Company – Olive Garden Restaurant Agrees to Pay Back Wages
All companys should have systems, policies and procedures to in place to actually track employee wages. Darden Restaurants Inc., doing business as the Olive Garden in Mesquite, today has agreed to pay $25,570 in back wages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found that 140 current and former servers were not properly paid as required by the Fair Labor Standards Act. The company also has been assessed $30,800 in civil money penalties to be paid to the government. If you are interested in learning more about what Olive Garden Restaurant should have done link to the article below.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Auditing Your Wage and Hour Compliance
Businesses should give consideration to auditing their wage and hour compliance on a regular basis. What can your organization do to get ahead of this massive mobilization? The most effective course is to conduct an internal audit before the DOL shows up at your door. An audit will enable an employer to identify compliance concerns and change any practices that might present an unacceptable risk of liability. If you are interested in reading more about wage and hour compliance link to the full article below.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Are Your Workers “Employees” or “Independent Contractors?” Don’t Guess
Are your workers employee or independent contractors? Companies who misclassify workers as independent contractors may be subject to significant federal, state and local tax liabilities (plus interest and penalties). Companies may face additional reporting and withholding obligations and potential liability for back wages, overtime pay, and unpaid unemployment benefits. Reclassification can also raise administratively complex issues when an individual’s reclassification results in eligibility for retirement and/or health benefits. Every company and organization using independent contractors should perform an audit of its workforce classification process to ensure compliance with applicable federal and state laws and regulations. Performing this check-up now will minimize liability for any retroactive or additional penalties that may be assessed as part of the government enforcement initiatives that are now underway.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Exempt vs. Nonexempt: Most Confusing Wage/ Hour Issue
Determining whether employees are exempt or nonexempt is the most confusing wage and hour issue, according to a recent BLR poll. While this area of employment law is complex, it’s important for employers to make sure they are classifying workers correctly, especially given the rise in wage and hour claims.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Companies Will Face Additional Pressure From Department of Labor
The newly appointed Secretary of Labor, Hilda Solis, issued a statement on March 24, 2009 that the DOL is renewing its efforts to enforce labor laws across the country. With the addition of 250 field investigators provided to the DOL under the American Recovery and Reinvestment Act, businesses can be assured of increased audits.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
Your Company’s Compliance With Wage/Hour? Not Likely
DOL recently announced that it will change dramatically how it regulates employers’ compliance with certain federal laws. Within the next year, it will issue regulations requiring employers to take affirmative steps to ensure compliance with federal wage-and-hour, safety, and anti-discrimination laws.
W. Garnett & Associates
Human Capital Management
1-303-658-9342
