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DOL announces new compliance assistance tools to assist new and small businesses

October 30, 2018 By Andrew Smith

The U.S. Department of Labor has announced the launch of the New and Small Business Assistance and the Compliance Assistance Toolkits web pages.

These new online tools assist American small businesses and workers with simple, straightforward resources that provide critical Wage and Hour Division (WHD) information, as well as links to other resources.

The web pages were established in response to feedback received from new and small business stakeholders voicing their need for a centralized location to secure the tools and information they need to comply with federal labor laws. The web pages also provide relevant publications and answer the questions most frequently asked by new and small business owners. These tools, in conjunction with worker.gov and employer.gov, ensure greater understanding of federal requirements and provide tools to help employers find resources offered by other regulatory agencies.

In addition to these new resources, WHD recently made available compliance assistance videos that provide brief, plain-language explanations of the Fair Labor Standards Act’s (FLSA) requirements and protections. The videos provide essential information employers need to understand their obligations under the law.

In August 2018, the Office of Compliance Initiatives (OCI) launched a revamped worker.gov to provide information about workers’ rights and an all-new employer.gov to provide information about the responsibilities of job creators toward their workers.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE(487-9243).

Information is also available at https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

Source: https://www.dol.gov/newsroom/releases/whd/whd20181017

Filed Under: Contracting Tips Tagged With: DOL, Fair Labor Standards Act, FLSA, Labor Dept., labor laws, labor rates, small business, Wage & Hour Division

Implementation of Labor Department’s Dec. 1 overtime rule stopped

November 28, 2016 By Andrew Smith

DOLA Texas court has issued a nationwide preliminary injunction stopping implementation of the Department of Labor’s (DOL) rule to more than double the current salary threshold for certain exemptions from overtime pay.

The court ruled on November 22, just a few days before its December 1, 2016 implementation date.

The court ruling came in response to lawsuits filed by 21 states, the U.S. Chamber of Commerce, and other business groups.  The plaintiffs argued that the DOL exceeded its statutory authority in raising the salary threshold and by providing for the automatic adjustment of the threshold every three years.

  • The DOL rule would raise the salary threshold from $23,660 to $47,476 annually, more than doubling the minimum annual salary a worker can earn and qualify for an exemption from the overtime pay provisions of the Fair Labor Standards Act.
  • DOL’s rule would also adjust the threshold every three years based on the 40th percentile of wages for full-time salaried workers in the lowest wage earning geographic area captured by the U.S. Census.

The preliminary injunction issued by the court cites concerns that the rule improperly created a salary test that would consume Congressional intent that the exemption be based on the type of duties performed. Additionally, the court found merit in plaintiffs’ argument that states would be irreparably harmed by implementation of the rule before a final decision by the court because states facing budget restraints would have to expend a substantial sum of unrecoverable public funds to increase salaries or pay overtime to employees and may possibly have to layoff or reorganize workforces causing a substantial interference in government services.

A preliminary injunction is not permanent, but it does preserve the current rule while the court deliberates the merits of the case. As a result, the new rule will not take effect on December 1, 2016, and employers may continue to classify employees as exempt if they pay employees at least $23,660 annually on a salary basis and if the employees meet the appropriate duties test.

DOL’s rule could still become effective if the Texas court does not issue a permanent injunction or otherwise rule against the DOL.  The Labor Department is expected to challenge the ruling.

Because the preliminary injunction could be lifted on short notice, legal experts advise that employers should continue to prepare for changes called for in DOL’s rule.

Critical preparation considerations are discussed by the Piliero Mazza law firm at: http://www.pilieromazza.com/blog/far-reaching-impact-of-dols-increase-to-flsa-salary-thresholds

Filed Under: Contracting News Tagged With: DOL, Fair Labor Standards Act, FLSA, HCE, highly compensated employee, Labor Dept., overtime, pay, preliminary injunction, salaries

5 steps to compliance with the fair pay and safe workplaces rules

October 11, 2016 By Andrew Smith

The much-anticipated so-called federal contractor “blacklisting” rules and guidance (“Final Rule” and “Guidance”) were published in the federal register on August 25, 2016. The Final Rule becomes effective on October 25, 2016 and imposes four new legal obligations on covered federal contractors, which will be phased in over the next year (starting as early as October 25, 2016).

It is important to also note that this is being phased in via Federal Acquisition Regulation (“FAR”) solicitation and contract provisions. This means that the Final Rule “becomes effective” by beginning to appear in new solicitations issued on or after October 25, 2016. This should not dampen a company’s concern and speed of progressing through the steps below and determining and pursuing compliance, but it is critical to understand and follow the specific path of obligation.

  • First, federal contractors will have to disclose “labor law decisions” both before and after contract award. The federal government will use these disclosures in making their “responsibility” determinations – the determination of whether the contractor is a responsible source to whom a contract may be awarded.
  • Second, contractors must give a wage statement to employees containing for each workweek the number of hours worked, the number of overtime hours, rate of pay, and additions to and from gross pay, and total gross pay.
  • Third, contractors must provide written notice to independent contractors informing them that they are independent contractors and not employees.
  • Fourth, contractors can no longer enter into agreements with employees or independent contractors that require arbitration of claims under Title VII of the Civil Rights Act (includes discrimination and retaliation claims based on race, color, religion, sex and national origin) or sexual harassment claims.

Federal contractors will need to become quick studies of the Final Rule and Guidance in order to begin developing procedures to ensure compliance as these requirements phase in over the next year.

Keep reading this article at: http://www.directemployers.org/2016/09/20/five-steps-compliance-fair-pay-safe-workplaces-final-rule/

Filed Under: Contracting Tips Tagged With: blacklisting, DOL, Fair Pay and Safe Workplaces, FAR, Federal Acquisition Regulation, federal contracting, federal contractors, FLSA, Labor Dept., labor laws, minimum wage, wage rates

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