New Salary Level for Overtime Exemption
The Department of Labor announced a new salary threshold to determine an Executive, Administrative and Professional overtime exemption. The salary threshold will increase to the equivalent of an annual salary of $43,888($844 per week) effective July 1,2024 with an increase to $58,656 on Jan. 1, 2025. The July 1st increase updates the present annual salary threshold of $35,568. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels. To determine if a position would fall under the Executive, Administrative and Professional overtime exemption, an employee generally must meet three tests:
More information can be found at: Final Rule: Restoring and Extending Overtime Protections | U.S. Department of Labor (dol.gov)
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Classifying workers is an important issue for employers and as of March 11, 2024, a new rule from the Department of Labor became effective. Certain tests help regulating agencies analyze worker classification issues. Factors of the final rule to determine if the worker is an employee or contractor are the following;
(1) opportunity for profit or loss depending on managerial skill; (2) investments by the worker and the potential employer; (3) degree of permanence of the work relationship; (4) nature and degree of control; 5) extent to which the work performed is an integral part of the potential employer’s business; and (6) skill and initiative. Misclassification can be costly to employers that may result in penalties, back taxes and wages. For more information and guidance, contact info@humanresourcesolutionsllc.com Bereavement Policies
The loss of a loved one is a traumatic event and more employers are reviewing their policies to provide more help to employees. Employers offering paid Bereavement leave has increased over the last few years and typically three to seven paid workdays are provided. As employers review their Bereavement leave policies, the following are considered.
Employers must be able to correctly determine who qualifies as an employee or independent contractor and the Department of Labor has published a final rule on January 10, 2024, to help employers make this distinction. In addition, a compliance guide is available for small employers.
The final rule provides six factors that businesses should consider when determining the workers status. These factors are: (1) opportunity for profit or loss depending on managerial skill; (2) investments by the worker and the potential employer; (3) degree of permanence of the work relationship; (4) nature and degree of control; (5) extent to which the work performed is an integral part of the potential employer’s business; and (6) skill and initiative. No one factor or subset of factors determines if a worker is an employee or independent contractor. Rather, all the circumstances of the relationship should be examined. For a copy of the guidelines or more information, send your request to info@humanresourcesolutionsllc.com |
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