Follow DOL Guidance When Reducing Salaries During the Pandemic

October 22, 2020
Follow DOL Guidance When Reducing Salaries During the Pandemic

The Basic Rules

Under the federal Fair Labor Standards Act (FLSA), an employer can generally reduce exempt employees’ regular salary for COVID-19-related reasons. However, the reduction cannot be made after the fact or based on the employer’s day-to-day or week-to-week needs, according to the DOL.

“In other words, exempt employees must be paid their predetermined salary for any workweek in which the employee provided any services,” said Lisa Reimbold, an attorney with Clark Hill in Los Angeles “As such, any pay reduction for an exempt employee can only apply to future workweeks.”

The FLSA requires most businesses to pay employees 1 1/2 times their regular hourly rate for hours worked in excess of 40 in a workweek, unless employees fall under an exemption. The most common exemptions are administrative, executive and professional, which are collectively called white-collar exemptions.

To read more, click here.

popdevteamFollow DOL Guidance When Reducing Salaries During the Pandemic
Read More

COVID-19 Employer Resources and Compliance Toolkit

March 26, 2020
COVID-19 Employer Resources and Compliance Toolkit

During these uncertain times, Miami Payroll Center is keeping up to date on all legislative and tax related responses to the COVID-19 crisis as they relate to small businesses and their employees. As additional information becomes available from related government agencies such as the Department of Labor and the IRS, this page will be updated accordingly.

On Wednesday, March 18th, the President signed the Families First Coronavirus Response Act to take effect on April 1, 2020 and will sunset on December 31, 2020. The Act provides for mandated paid emergency sick leave and paid family and medical leave for many workers. To offset wages paid under the program, employers will receive a tax credit. There are still several uncertainties, such as the timing of the credits to offset the payments required by employers. Many of the details for implementation are still unknown until individual government agencies, e.g. DOL, IRS, release their own guidance between now and April 1, 2020. As additional details are released for implementation, we will update the information on this page.

If you have specific questions as to how these changes may affect your business, please contact us at 305-273-4066.

Useful Links

COVID-19 Miami Payroll Center Published Resources

IRS Updates

The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. This page will be updated as new information is available.

popdevteamCOVID-19 Employer Resources and Compliance Toolkit
Read More

Hiring an Intern: What you need to know

April 16, 2017

The role of the intern is not what it used to be. Internships these days require more than making a Starbucks run or picking up the boss’ dry cleaning.

Establishing an internship program is a great way for your company to build a pipeline of talent. However, things are not what they used to be. There are several considerations when creating your internship program.

Under the Fair Labor Standards Act (FLSA), most interns are considered employees subject to the FLSA’s minimum wage and overtime requirements. However, if an intern is not an employee within the meaning of the FLSA, then the FLSA’s minimum wage and overtime requirements do not apply. The Department of Labor uses a Six-Factor Test for Unpaid Interns.

The DOL’s Six-Factor Test for Unpaid Interns

Under the DOL’s test, an employment relationship does not exist under the FLSA if all the following factors are met:

  1. The internship must be like training that would be given in an educational environment;
  2. The internship must be for the benefit of the intern;
  3. The intern does not displace regular employees, but works under close supervision of existing staff;
  4. The employer derives no immediate advantage from the intern, and on occasion, its operations may be impeded;
  5. The intern is not necessarily entitled to a job at the end of the internship; and
  6. The employer and intern understand that the intern is not entitled to wages for the time spent in the internship.

If you’re considering an internship program, consult with legal counsel to ensure compliance with all applicable laws and regulations.

When in doubt, it’s best to classify interns as employees and pay them as required under applicable federal, state, and local law. These days, it pays to be cautious.

If you’re a Miami Payroll Center client, we can provide guidance and best practices with respect to internships. Contact our HR Team at (305) 273-4066.

popdevteamHiring an Intern: What you need to know
Read More

What you need to know about Florida’s Minimum Wage

February 7, 2017

Effective January 1, 2017, the minimum wage increased from $8.05 to $8.10 per hour for most employees in Florida, with exceptions for tipped employees, some student workers, and other exempt occupations.

The annual calculation is based on the percentage increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region for the 12-month period prior to September 1, 2016. The Florida minimum wage was $7.93 per hour in 2014, $7.79 per hour in 2013, and $7.67 per hour in 2012. Due to the inflation and cost of living formula used, a minimum wage increase did not occur in January 2016.

The Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. Employees may be paid under the Florida minimum wage if they fit into one of the following categories:

  • Florida Under 20 Minimum Wage – $4.25 – Federal law allows any employer in Florida to pay a new employee who is under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment.
  • Florida Student Minimum Wage – $6.89 – Full-time high school or college students who work part-time may be paid 85% of the Florida minimum wage (as little as $6.89 per hour) for up to 20 hours of work at certain employers.
  • Florida Tipped Minimum Wage – $5.08 – Employees who earn a certain amount of tips every month may be paid a special cash minimum wage, but must earn at least $8.10 including tips every hour. For more details, read about the Florida tipped wage.

Download the updated Florida Minimum Wage Poster here.

Need help ensuring your Human Resources and Pay practices are up to date? Contact our HR team today!

popdevteamWhat you need to know about Florida’s Minimum Wage
Read More

Forget the Holiday Party, We’ve Got Human Resources Issues to Discuss!

November 28, 2016

It’s late November and the expectations placed on a human resources blogger this time of year usually aren’t very high. Social norms dictate that we come up with a list of the “Top Ten Things” we’re thankful for in the office or some sage advice on how to throw a fun holiday party that doesn’t end in litigation or termination. But this year is different. This year the news is a little too big to focus on best practices to prevent HR headaches after the office festivities.

We just elected a new president. Chances are you’re either still celebrating or still in shock. President-Elect Trump made many campaign promises and, while we don’t know yet which ones he will deliver on, several key promises will directly affect employers. Among the safe predictions are a focus on immigration worksite enforcement and sweeping changes and/or a total repeal of the Affordable Care Act. Another prediction is lifting the new payroll threshold for overtime.[1] It’s this last item that has caused many to breath of sigh of relief. But don’t breathe too deeply!

According to SHRM, President-elect Trump can’t do much about the “December 1st effective date of the new overtime rule, which doubles the exempt salary threshold under the Fair Labor Standards Act (FLSA) to $47,476.[2]” Even if it was a top priority of the new administration, changes would take a very long time thanks to the notice-and-comment period required by law.

So for the time being, we all need to be prepared to follow the overtime rule as written. It does appear that Trump is open to the idea of calling for a small-business exemption to the rule after he takes office in January, but by then businesses will have already made a lot of changes to comply with the rule.

It’s also possible that Trump will decide to leave the rule stand as-is. While Trump did say in a brief interview on the campaign trail that he favored a small-business exemption, any changes to the current rule could negatively impact some of his supporters, many of whom could earn more once the rule is in place.[3]

There are many HR regulations that could see sweeping changes under a Trump administration: Minimum Wage, FLSA, Pay Equity, Family Medical Leave and Health Insurance just to name a few. All were things discussed on the campaign trail at one point or another…but will they all be changed? Much like this election, it’s nearly impossible to predict!

Our job will require something much harder than predictions. As HR Professionals, we will need to determine what the changes mean to our own organizations and which will mandate action. If we’ve already reclassified employees based on the overtime rule, will be reclassify them again if the rule is changed? Sure, it would be allowed by law, but would it be the best thing for our organization? What is legal and what is right are not always one in the same.

Don’t think about it too much… or that fourth drink at the office party will seem completely reasonable!

What potential HR changes are you looking forward to under the new administration? We’d love to hear from you. Post your comments below.

 

 

[1] http://www.hreonline.com/HRE/view/story.jhtml?id=534361418

[2] https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/trump-overtime-rule.aspx

[3] http://www.hreonline.com/HRE/view/story.jhtml?id=534361495

popdevteamForget the Holiday Party, We’ve Got Human Resources Issues to Discuss!
Read More