On June 30, 2015, the U.S. Department of Labor’s (DOL’s) Wage and Hour Division proposed sweeping changes to the regulations that govern the white-collar overtime exemptions, to include raising the minimum salary level for exemption to $50,440 annually. The DOL is expected to announce the final rule by July 2016.
This is just one of the many regulatory road bumps in HR’s path. There were several others that occurred in the past year:
- Dec 18, 2015: H.R. 2029 is signed, moves the date for W-2 and W-3 filings up one month.
- July 15, 2015: The FLSA changes the definition of what constitutes an “employee” vs. an “independent contractor.”
- March 22, 2016: Vermont joins California, Connecticut, Massachusetts and Oregon as states that will require employer-paid sick leave.
… and more on the horizon:
- The FLSA will likely be raising the minimum pay standard for exempt workers.
- The EEOC plans to collect data on race, gender and ethnicity to ensure equal pay.
- New avenues for employees to fight gender inequality in pay.
On April 20, Kronos and SHRM will conduct a webinar that will highlight the findings in a 2016 Brandon Hall Wage and Labor Law research brief which reveals that more than two-thirds of organizations surveyed expressed some level of concern about changes to wage and labor regulations, but find themselves behind in terms of preparedness—and less than one-third indicated they’re ready for new or updated wage and hour law regulations.
It’s evident that employers will need a better plan for managing compliance as changes occur in the future.
As an employer, how are you keeping up with compliance? What changes to policy, procedure or technology are you making to ensure a proactive approach to future changes to wage and labor laws?
Please join @shrmnextchat at 3 p.m. ET on April 20 for #Nextchat with special guests Cliff Stevenson, principal analyst, Brandon Hall Group (@clifforddarrell) and Lynne Levy, product strategist, Kronos Incorporated (@KronosInc).
Q1. How are you currently assessing your organization’s readiness for regulatory compliance?
Q2. What are the greatest challenges your organization faces when it comes to keeping up with regulatory and compliance changes?
Q3. What changes is your organization making to build a stronger wage and labor law compliance strategy?
Q4. How do you plan on using technology to help manage wage and labor compliance issues going forward?
Q5. What are your greatest challenges with ensuring that employees are not misclassified?
Q6. What are you doing now and what are you changing going forward to ensure that your employees are not misclassified?
Q7. What steps can employers take now to help avoid future wage and labor class-action suits?
Q8. How does complying with regulations impact your ability to recruit, retain and engage employees?
Q9. What regulations will have the largest impact on your workforce management strategy?