Deborah Frantz’s Post

Looks like some rules are changing, at least for a little while. Non-competes and overtime exemptions just to name a few. Check out this article to get the low-down!

New DOL Rule Effective March 11, 2024: Clarifying Employee vs. Independent Contractor Classification 🌟 The U.S. Department of Labor (DOL) has announced a critical update to the Fair Labor Standards Act (FLSA), providing definitive guidance on classifying workers. This final rule, effective from March 11, 2024, aims to combat employee misclassification, ensuring fair wages and protections for workers. 📢 Key Elements of the Rule: Factors to Consider: -Opportunity for Profit or Loss -Investments by Worker and Employer -Degree of Permanence -Control Over Work -Work's Integral Nature to Business -Worker's Skill and Initiative Comprehensive Approach: No single factor determines a worker's status; instead, all relevant aspects are considered. 💡 Why It Matters: -Protects Worker Rights: Ensures proper classification for workers comp insurance, minimum wage and overtime pay. -Consistency for Employers: Aligns with long-standing judicial precedent. -Prevents Misclassification: Addresses a common issue impacting the economy and fair competition. 🔍 Implications for Employers: -Review and Adapt: Employers should examine their practices to remain compliant. -Legal Challenges Expected: Stay prepared for potential changes and legal interpretations. -Seek Professional Advice: Ensure your business is aligned with these significant legal shifts. For detailed analysis and guidance, reach out to our expert team. Stay ahead of the curve in this evolving landscape. https://lnkd.in/gjvatf-y

*Big Changes to Worker Classification: New Independent Contractor Test Arrives* The U.S. Department of Labor (DOL) has introduced a new rule that will change the test for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The new test, set to take effect on March 11, 2024, will significantly alter the landscape for worker classification. *Key changes* - Back to Basics: The new test emphasizes analyzing the overall economic reality of the work relationship, instead of relying heavily on specific factors. - Test Factors: There are six total criteria that will be evaluated, including new additions like the worker's investments and the work's integrality to the employer's business. *What does this mean for your business?* - Businesses relying on independent contractors need to carefully assess their worker classifications under the new test. - Workers classified as independent contractors may gain new protections depending on their specific situation. - This can have major implications for small businesses and worker protections like minimum wage and overtime pay. *Recap* - New Independent Contractor Test - Effective date: March 11, 2024 - This is a significant change with potential impacts for both businesses and workers. It's crucial to stay informed and understand how the new test might apply to your business. Resources: ADP Writeup: https://lnkd.in/gi5DdT8N DOL Link: https://lnkd.in/gt-Sb-9d Let @FinancialWing know if you have questions.

*Client Alert* Effective March 11, 2024, the U.S. Dept. of Labor has revised previous guidance on how to analyze who is an employee or independent contractor under the FLSA. As the gig economy and remote work continue to increase, misclassifying employees as independent contractors represents a significant risk for employers who must comply with both federal and state laws. Employers who misclassify employees not only risk denying workers minimum wage, overtime pay, and other protections, but if audited by the government, they also risk significant financial consequences in the form of damages, penalties, back taxes and back pay. Read more below and if you have specific questions about how this rule impacts your business or how to comply, please contact Fortis Partner Christine Kessler Lamb. https://lnkd.in/ePHxysC5 #flsa #independentcontractors #rulechange #coloradolawyer

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

The Department of Labor updated regulations re. classifying independent #contractors and #employees. The new rule adopts the “economic reality test” for federal wage and hour law issues. Employers who hire #independentcontractors must be aware of this rule when deciding wages, hours, and benefits for these types of workers. Misclassifications can create liability for an #employer, including the payment of lost wages and back pay, PTO, benefits, and/or unpaid overtime. #lavellelaw attorneys Lance Ziebell & MaryAllison Mahacek explain: https://bit.ly/3L3SWzz #DepartmentOfLabor #DOL

Read our latest Labor, Employment and Employee Benefits e-Alert, "A Reminder That the Department of Labor’s Final Rule Increasing the Salary Thresholds for Salaried, Exempt Executive, Administrative, and Professional Employees Took Effect on July 1, 2024." #laborlaw

Accidental underpayments can slip through the cracks in a number of ways, from misclassification of employment to mishandling overtime. Michael Byrnes, Partner at law firm Swaab, provides insight on five common ways employers unknowingly underpay their staff and the proactive steps employers can take to prevent underpayments.

Are you confident about being paid fairly for the work that you do? This recent article from the Australian HR Institute (AHRI) News Site sheds light on how accidental underpayments by Employer Organisations can occur. The underpayment of wages, whether intentional or not, has become a significant issue in Australia. The Fair Work Ombudsman reports that over $1.041 billion* was recovered for workers in just the past two financial years (*Source: Office of the Fair Work Ombudsman Annual Report 2022-23) With the rising cost of living, it’s essential to know what you’re entitled to. For instance, Australia's minimum wage increased by 3.75% in July. If you're eligible, take the time to make sure you've received your wage increase. If you believe you’ve been underpaid, or not fairly compensated, the Fair Work Ombudsman offers valuable resources and specific advice on their website. To contact the FWO, visit their website at https://lnkd.in/e5Mwh6s or call 13 13 94.

A big day today for employees and employers everywhere! What a fun time to be an employment lawyer! 🤓 First up, the Federal Trade Commission announced a ban on non-competes nationwide with a limited exception for existing non-competes for senior executives. Importantly, employers are required to notify current and former workers that their non-competes are no longer in effect. There is a 120 day effective date, but the U.S. Chamber of Commerce has announced it will file a lawsuit challenging the rule as early as tomorrow. Second, the U.S. Department of Labor has announced new salary thresholds for employees to classify as exempt (i.e., to not be paid overtime) under the Fair Labor Standards Act. Now, employees must earn at least $58,656 annually (up 65% from $35,568) to qualify for the executive, administrative, or professional exemptions, and $151,164 (up from $107,432) for the highly compensated employee exemption. The thresholds are set to increase automatically every three years! The rule is effective July 1, 2024 with an initial increase to $43,888, but employers have until January 1, 2025 to comply with the full increase of $58,656. Litigation is imminent, of course, and, as some may recall, the Obama administration's 2016 attempt to increase the thresholds was enjoined. #FLSA #wageandhour #noncompete #employment