Tag: wages

Misclassification: DOL and IRS Declare War

Misclassification—calling individuals “independent contractors” or “volunteers” who properly should be employees—is a burgeoning legal battleground for HR managers. A recent 30-million-dollar suit on behalf of newspaper carriers is a good example of the stakes involved, says attorney Christine V. Walters. Walters, who is a consultant with the FiveL Company in Westminster, MD, offered her tips […]

GSA Chastened Over ‘Lavish’ Conference Expenses

Federal offices have to follow federal travel guidelines, and federal rates form the basis of tax treatment of private sector business travel reimbursements as well. But what happens when the federal government agency that develops travel policy goes astray from its own guidelines? The report by GSA Inspector General (IG) Brian D. Miller said that […]

6th Circuit: Failure to Pay Employee Salary Removed his ‘Exempt’ Status

An exempt employee must actually be paid in order to retain that exempt status, the 6th U.S. Circuit Court of Appeals recently held. The case, Orton v. Johnny’s Lunch Franchise, involved a salaried employee who sued his employer for wages and overtime when, after beginning to experience cash flow problems, the employer stopped paying his […]

3 Steps to Conducting an Audit on Non-Exempt Vs. Exempt Worker Classification

Do you know the law when it comes to non-exempt vs. exempt workers? The Fair Labor Standards Act (FLSA) requires employers to pay employees overtimeif they work over 40 hours. However, the FLSA also contains exemptions. Employers may not have to pay overtime to certain personnel groups, including administrative, executive, professional, computer, outside sales, and […]

How to Implement a Workplace Breastfeeding Policy

The letter of the law may only require employers to extend breaks and access to a lactation room to eligible employees on an as needed basis, but many companies are taking a proactive approach and looking to implement policies that will boost employee retention. According to Eileen Shue, vice president of corporate resources for the […]

No Matter How You Pay Them, Tips Belong to Employees

Even non-exempt employees can cause confusion and employer liability under the FLSA. Often, employers run into trouble when attempting to classify their employees for purposes of pay exemptions. But equally tricky is how to pay non-exempt employees who have non-traditional forms of payment, such as tipped employees. The recent slew of major FLSA wage and […]

IRS Voluntary Classification Settlement Program: Proceed With Caution

In a recent move to encourage employers to correct past misclassification of workers, the IRS has established a voluntary compliance program, called the Voluntary Classification Settlement Program, or VCSP. The program permits employers to voluntarily reclassify their workers as employees for future tax periods with minimal tax liability for past non-employee treatment. To participate, an […]

Know the Rules for On-call Workers

By Arthur Silbergeld, Esq. Anyone who works on a computer knows the sinking feeling that comes with hitting that nasty combination of keystrokes causing your machine to freeze. The fact that many companies now keep IT staff available around the clock just to help frantic employees get their misbehaving computers working, retrieve lost documents and […]

Fueling Disputes: Health Reform May Spur New Types of Employee Lawsuits

Recent legal challenges have focused on constitutional issues, but health care reform is expected to create new reasons for benefits and employment-law litigation, according to a reform expert. Reform rules fraught with legal risk include: (1) pay-or-play requirements, (2) claims appeals and external review, (3) essential benefits; and (4) retiree medical rules. Another area of […]