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    Wage and Hour: Staying on the

    Right Side of the DOL

    Sage HR R&R: Refresh and Recertify

    Webcast Series

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    Your Presenter for Today

    Mary Anne Osborne, SPHR

    The Osborne Group INSERTPICTURE

    HERE

    Over 25 years of HR experience inTelecom, Financial, Manufacturing,

    Healthcare and Higher Educationarenas

    People-centric HR Professional Award winning Business, Customer Service and

    Quality focused

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    Objectives

    In Todays Webcast You Will Learn:

    How the DOLs interpretation of the FLSA affectsyour business.

    How the latest court cases are affecting wage and

    hour. What actions the HR department should be

    engaged in now to avoid fines and litigation.

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    Department of Labor

    Wage and Hour DivisionMission Statement

    The WHD enforces Federal minimum wage, overtime pay,recordkeeping, and child labor requirements of the Fair Labor

    Standards Act.

    WHD also enforces the Migrant and Seasonal Agricultural Worker

    Protection Act, the Employee Polygraph Protection Act, the FamilyMedical Leave Act, wage garnishment provisions of the Consumer CreditProtection Act, and a number of employment standards and workerprotection as provided in several immigration related statutes.

    Additionally WHD administers and enforces the prevailing wagerequirements of the Davis Bacon Act and the Service Contract Act andother statutes applicable to federal contracts for construction and for theprovision of goods and services.

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    WHD Statistics For 2008

    *

    Recovered $185M in back wages for 228,000 U.S. workers.

    8

    97 days to resolve complaint.

    *

    88% of these cases were related to overtime.

    12% were minimum wage related.

    35% of the WHDs time was spent in enforcement in low wageindustries: AG, daycare, restaurants, garment, security,healthcare, hotels and motels, janitorial, and temp help.

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    White CollarExemption

    Contractor

    Temp Labor

    FLSA:

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    White Collar

    ExemptionKey Factors

    Titles dont determine status

    Must be paid $455/week or notless than $23,660 annually

    Categories covered under the

    exemption MAY include: Executives

    Administrators

    Outside sales

    Professionals

    Highly compensated employees

    Computer professionals

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    White CollarExemption:

    ExecutivesKey Factors

    Wage requirements*

    Primary dutymanaging thebusiness or a subset

    Regularly directs the work of two

    or more people Have the authority to hire and fire

    or their recommendations onbusiness decisions must be

    given particular weight

    * If an executive owns 20% of equity shares, theydont have to meet wage requirement.

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    White CollarExemption:

    AdministratorsKey Factors

    Wage requirements

    Work must be office, not manual,directly related to managementpolicies or business operations of

    the employer or its customers. The employee is regularly

    expected to use discretion andexercise independent judgment

    with regards to significantmatters.

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    White CollarExemption:

    Outside SalesKey Factors

    There is no compensation test

    for this exemption. Must meet both of these

    requirements:

    The primary duty is to make sales,obtain orders or contracts for services,or contracts for the use of facilities forwhich the customer or client pays.

    The employee is primarily or

    customarily engaged in theperformance of their duties away fromthe primary place of business.

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    White CollarExemption:

    ProfessionalsKey Factors

    Salary requirement must be met.

    Work must be office, non-manualand requires one of the following:

    Advanced knowledge in a field ofscience or learning generallyacquired through a long course ofintellectual instruction.

    Invention, imagination, originality, ortalent in a field of artistic or creative

    endeavor.

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    White CollarExemption:

    Highly Compensated

    Employees

    Key Factors

    Earns at least $100,000 in base

    salary, commissions, and non-discretionary bonuses.

    Performs one or more of the

    duties of either an exemptexecutive, professional oradministrative employee.

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    White CollarExemption:

    Computer

    Professionals

    Key Factors Wage requirements include $23.63/hour.

    Exempt computer employee must haveprimary duty in one of the following:

    Application of systems analysis techniquesand procedures.

    Design, development, documentation,analysis, testing, creation, or modification ofsystems or programs including prototypesbased on or related to user designspecifications.

    Design ,development, documentation, testing

    ,creation, or modification of computerprograms related to machine operatingsystems.

    A combination of the above three requiring thesame level of skills and abilities.

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    ContractorsKey Factors Degree to which the contractor has the

    freedom to control the manner in whichthe work is performed.

    The opportunity for profit/loss dependingon own skills.

    Who controls investment in equipment toperform job.

    Whether the services rendered requirespecific skills.

    The degree of permanence of therelationship.

    Whether the work performed is anintegral part of the employers business.

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    Key Factors

    Are they truly independent

    contractors? May work for the leasing agency

    or the recipient employer or both

    To what level is your companyinvolved in the selection, hiring, andestablishing working conditions?

    Are they covered under FLSA,

    FMLA, etc.

    Temp

    Labor

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    FEDS

    Pass Laws

    Enforce

    throughgovernmentagencies andregulations

    STATES

    Pass Laws

    Enforce

    through thestates attorneygenerals office

    COURTS

    Interpret andclarify laws

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    Recent Court CasesAt Federal and

    Circuit Court

    Supreme Court: Oralcomplaints must be heard

    Ninth Circuit:Pharmaceutical sales

    reps fall within OutsideSales exemption

    Seventh Circuit:Fluctuating workweek

    Bridge to Justice U.S.DOL has agreement withABA to refer cases

    State Cases

    CA: Make suitable seatsavailable

    NYS DOL has issued newrules on minimum wage

    and tips in the foodservice industry.

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    Employers Take Action

    RECORDKEEPING

    AUDITS

    RECORDHOURS

    WORKED

    WEEKLY

    MANAGETIME

    RECORD

    EDITS

    PRESERVEDATA FOR

    EASY

    RETRIEVAL

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    DO THERIGHT

    THING

    DO ITRIGHT THE

    FIRST TIME

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    REFERENCES www.dol.gov

    www.dol.gov/whd/flsa

    www.dol.gov>ComplianceAssistance>ByLaw

    www.flsa.com

    [email protected]

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    About Sage Abra HRMS Sage Abra is human resource

    management system software that

    delivers tightly integrated HR,payroll, benefits and attendancefunctionality, plus rich reporting andanalysis tools.

    Sage Abra can help you stay on theright side of the Department of Laborby helping you keep track of youremployees, your companys labor

    records, and by providing advancedreporting tools (both customizableand standard) such as CrystalReports.

    Sage Abra Solutions Specialist

    Jessica [email protected]

    Sage Abra training courses

    are located at:www.SageU.com/Abra

    Sage Abra webcasts and

    demos are located at:www.SageWebcast.com