Craig Kober’s Post

Employers, with new minimum salary requirements for exempt workers in effect, those with exempt employees making less than the new minimum will have to consider raising salaries or reclassifying employees as nonexempt. While the decision is ultimately yours, HR should weigh the economic and morale impacts of reclassification before making a final call. Stay informed and make the best choice for your business. #HR #EmploymentLaw #ExemptEmployees #NonExemptEmployees #BusinessDecisions https://lnkd.in/diXyiFvV

Employers with exempt employees making less than the new minimum salary requirements for exempt workers will need to decide whether to raise salaries or reclassify employees as nonexempt. HR should consider the economic and morale impacts of reclassification.

📢 Attention HR Professionals! Important Updates on Employee vs. Independent Contractor Classification 📢 The U.S. Department of Labor has released a final rule that addresses the classification of workers as either employees or independent contractors under the Fair Labor Standards Act (FLSA). This rule will go into effect on March 11, 2024. This update is critical for HR professionals and businesses alike, as it impacts compliance, worker rights, and business operations. Here are the key takeaways: 1️⃣ Background: The FLSA, established in 1938, sets minimum wage and overtime pay standards for employees. The Act's protections do not apply to independent contractors, defined as workers not economically dependent on an employer. 2️⃣ Economic Reality Test: To determine worker classification, the Department of Labor and courts have historically applied an "economic reality test." This test assesses whether a worker is economically dependent on the employer (employee) or operates independently (contractor). Factors include profit opportunity, investment, control, permanency, work integration, and skill/initiative. 3️⃣ 2021 IC Rule: In January 2021, the Department published the "Independent Contractor Status Under the FLSA" rule. It introduced five factors, designating two as "core," potentially leading to a worker's classification. 4️⃣ Rule Rescission and Modification: Due to concerns over alignment with legal precedent and potential confusion, the 2021 IC Rule has been rescinded and replaced with a modified analysis. The new rule reverts to a totality-of-the-circumstances approach, giving equal weight to all factors. 5️⃣ Factors Revised: The final rule clarifies the factors used for assessment, including investment, control, permanency, work integration, and skill/initiative. Consideration of relative investments and imposed costs by potential employers is also addressed. 6️⃣ Economic Dependence: The ultimate goal is to determine economic dependence, meaning a worker is in business for themselves. No single factor is determinative, and additional factors may be considered as needed. This update seeks to provide clarity, consistency, and protection for both employees and independent contractors. HR professionals must review their classification processes to ensure compliance with the revised guidelines. For more information, please refer to the full document: https://lnkd.in/gE5ST464 Stay informed and stay compliant, HR professionals! 💼 #HR #EmployeeClassification #FLSA #Compliance #HRUpdates

Paying above the minimum wage isn’t just about compliance—it’s a strategic move that can significantly impact your business's growth and employee satisfaction. Here’s why you should consider offering more than the legal minimum: https://lnkd.in/gWaK6GDA #MinimumWage #PayRates #Retention #StrategicEmployers #BusinessGrowth #EmployeeEngagement #FairWages #SmallBusiness #HRStrategy

🚨 Are Shift Workers Being Undervalued? 🤔 Recent research highlights a troubling trend: many shift workers aren't receiving fair compensation due to payroll mistakes and pay slip errors. 😟💸 With shift workers already managing unpredictable hours and challenging conditions, they deserve accurate and fair pay for their hard work. Let's shine a light on this issue and ensure everyone gets what they earn! 🔍 Read more about the impact of these pay slip-ups and what can be done to address them: https://ukg.inc/4gSMrxT #ShiftWorkers #Payroll #EmployeeRights #WorkplaceEquality

Wondering about the implications of the new overtime rule for your organization and employees? Here's a crucial question: Will you increase salaries to keep workers nonexempt under the new salary threshold, or will you reclassify? SHRM’s Salary Increase Impact Analysis Guide and Calculator offers invaluable insights to make this pivotal decision. But here's where Recruitment Process Outsourcing (RPO) steps in: 1️⃣ Efficient Recruitment: RPO ensures swift hiring to prevent staffing shortages that often lead to overtime. 2️⃣ Strategic Workforce Planning: RPO aids in anticipating staffing needs, avoiding sudden workload spikes. 3️⃣ Compliance Assurance: With RPO, stay ahead of labor laws, reducing the risk of penalties due to misclassification or overtime violations. By partnering with an RPO provider like AgileOne, you can navigate these changes smoothly, optimize workforce management, and safeguard against overtime risks. Want to know more? Message me here or at RPO@agile1.com to schedule some time to chat! #OvertimeRule #RPO #WorkforceManagement #SHRM #WorkforceSolutions #WeareAgileOne https://lnkd.in/egTXW4tu

DON’T FORGET TO ENROLL IN SCOTT’S HALF-DAY WEBINAR …   “GETTING UP TO SPEED ON WAGE and HOUR EXEMPTIONS AND THE NEW MINIMUM SALARY TESTS” https://lnkd.in/d5ukgTfS   FRIDAY, JUNE 21, 2024   Session Runs From 1:00 pm to 4:15 pm EST   COST: $125.00 per attendee This session will be recorded. So, if you cannot attend, you will receive a link to watch the program later.    What do the REGULATIONS say about who is EXEMPT and NON-EXEMPT from overtime pay?   How do the DUTIES TESTS work?   How does the SALARY TEST work?   What is the MINIMUM SALARY TEST and how does it work?   When can you DOCK a salaried person’s pay … and can you not?   What policies MUST you have in place to preserve employees’ EXEMPT STATUS?   What changes did WAGE AND HOUR make to the Exemptions’ MINIMUM SALARY TEST?   How does someone qualify as an exempt HIGHLY COMPENSATED EMPLOYEE?   What changes did WAGE AND HOUR make to the HIGHLY COMPENSATED EMPLOYEE SALARY TEST?   WHEN do most of the changes to the MINIMUM SALARY TEST happen … and WHEN WILL THEY HAPPEN IN THE FUTURE?   What do you need to do NOW TO PREPARE … and what do you need to look at in the FUTURE?   How will these MINIMMUM SALARY TESTS CHANGE over the years?   … and MUCH, MUCH more … Join one of Ohio’s most popular speakers as he reviews all of the tricky ins and outs of WAGE and HOUR LAW. Scott will show you how to how to use this information IMMEDIATELY with his own “rubber hits the road” approach as a human resource professional and employment attorney.   THIS SESSION IS APPROVED FOR 3 HOURS OF SHRM AND HRCI CREDITS   ATTENDEES WILL ALSO RECEIVE 6 HOURS OF 2024 SHRM & HRCI BUSINESS CREDIT VIDEOS FOR FREE! ($200.00 VALUE!) This meeting will be delivered through ZOOM … So, come to relax, have fun and PARTICIPATE! To register, just go to www.scottwarrick.com … and click on the top icon entitled, “Join Scott’s Upcoming Webinars & Seminars.”    Scott Warrick, JD, MLHR, CEQC, SCP Scott Warrick’s HR Consulting & Employment Law Services (614) 738-8317   ♣   scott@scottwarrick.com  WWW.SCOTTWARRICK.COM #wageandhour #employmentlaw #SHRM

🚀 Time to Act, HR Leaders! 📈 Some pretty seismic changes are coming across a number of states further to the Department of Labor's recent ruling, HR pros must nimbly adapt to escalated salary thresholds for "white-collar" exemptions. Are you ready to crunch numbers and reassess your workforce's status? By July 1, say hello to hefty salary hikes for certain exempt roles—if your state's laws don't already surpass the fed's new standards. This is where our homework begins. It's vital to dive deep into state laws affecting your remote or multi-state teams. What's at stake? Potentially, a 4 million-strong workforce could see their pay packets grow to meet the new rules—if they're under the EAP or HCE exemptions. Don't meet these terms? Get set for potential overtime payouts and dodge those misclassification lawsuits. ⚖️ Here's the kicker: by 2025, EAP salaries must hit at least $58,656 annually and HCE's bar leaps to $151,164 a year before 2024 rings in! Every three years, like clockwork, we'll see automatic increases. Big question: Should you hike base salaries or reclassify your team as nonexempt? The answer isn't always clear-cut. Consider the costs of anticipated overtime against that salary surge. And ensure you have good time tracking policies! Even for exempt employees, good records can be your best defense in misclassification battles. ⚔️ My takeaway? Get proactive, strategize and act decisively. There's room to be savvy about compliance and cost, but dodging action isn't an option. Share your thoughts and let's navigate these changes together! 👇#HR #OvertimeRule #Compliance https://lnkd.in/e54b9pyK

The Department of Labor has updated the salary threshold for exempt employees and the FTC bans non-compete agreements. Read on for all the details and how these rules will affect all employers. https://lnkd.in/gDDFYkEd #employmentlaw #hrcompliance #departmentoflabor #flsa #noncompete #hrupdates #hrconsulting #hr #humanresources

Wage compression can be a killer for retention! Be proactive with how you value your workforce. Ensure regular reviews of industry salary trends and compare it to your current employee wages. There is nothing worse than a new employee arriving with the same or higher rate of pay than an existing tenured employee. People talk. Employees see postings on the internet Money talks. People want to know they are being looked after financially without having to ask. I get it, labor is expensive. But what’s more costly is losing talent and searching for replacements. Take that extra step and show you value your workforce! #wagecompression #hr #payroll #salary