These are just a sampling of the areas to review for compliance.
The increase in fines under the Federal Civil Penalties Inflation
Adjustment Act of 1990 and the 2015 Adjustment Act applies to
many federal agencies including but not limited to:
• Occupational Safety and Health Administration (OSHA)
• Environmental Protection Agency (EPA)
• Federal Trade Commission (FTC)
• Office of Workers’ Compensation Programs
• DOL’s Wage and Hour Division
The Department of Labor also has a new rule that could have a
major impact on your total workforce costs.The weekly salary level
used to determine exempt status vs. non-exempt status will increase
from $455 to $913 per week starting December 1st 2016. The
DOL’s new regulations have increased the FLSA’s salary basis test to
an amount greater than the level seen in California, which is currently the nation’s highest at $41,600 per year. It is possible that certain
states, including California, may attempt to provide even broader and
greater protections than those afforded by the DOL’s new regulations. More changes are expected and employers will need to stay
informed even though the changes are not effective until December
1st.
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With the new increase in salary
levels for exempt status, many
employers may be tempted to
try to classify some current
employees as independent
contractors. Review the IRS
checklist objectively before
making any employee an independent contractor because the
DOL Wage and Hour division
continues to be extremely active enforcement across industries.
With fines increasing and the rules ever more complex, every
employee should perform a compliance audit on an annual basis.
While it may be a headache to do this now, it’s guaranteed to be
a full-blown migraine if you wait until the government auditor is
in the lobby. To learn more about any of these new regulations,
including how to comply while minimizing the impact upon your
payroll and workforce, please contact KPA.
(866) 356-1735
[email protected]
NATDA Magazine www.natda.org