Monthly Archives

May 2016

Final Federal Overtime Rules for Exempt Employees from DOL

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Effective December 1, 2016, all salaried exempted employees in all 50 states must earn the new minimum wage of $47,476 per year or $973 per week. DOL has built in an automatic annual increase for the next three (3) years bringing the new threshold to $51,168 per year. The Federal DOL, in an attempt to ease this burden on employers, is allowing employers to factor in bonuses; incentives and commissions pay to meet the threshold up to a maximum of 10% of the pay. These bonuses; incentives and commissions pay must be paid at a minimum quarterly.
Keep in mind that some states may have different thresholds and may not recognize bonuses; incentives and commissions pay to meet exempt minimum wage. It is also important to understand that you must review both state and federal rules and insure that you are in compliance with both.
Although the exemption test has not changed, an emphasis is being placed on the 51% rule. This rule requires an employer to prove that the employee is spending 51% of their time performing exempt work such as managing as opposed to doing the manual work.
Employers should review all salary exempt employees and identify those who are making below the new requirement. You will either have to increase their wages to comply with the new minimum wage or change their status to hourly.

If you decide to keep them as salary exempt, please make certain they meet the 51% rule. If you need assistance, contact HRI and we can help you prepare a job description and analyze the duties to determine the status.

If you decide to make them hourly, they must follow all wage and hour regulations as outlined by your Wage Order (California) including rest and meal breaks, overtime and timekeeping requirements.

Confused? Attend our webinar on June 8th at 9am or contact us at [email protected]

Primary Election Day

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The California Presidential Primary Election will be held on June 7, 2016. Employees may take time off from work and have certain rights with regards to taking this time off. In addition, employers have posting obligations.

If an employee does not have sufficient time outside of working hours to vote, the employee may take up to two hours of working time to vote. The time off must be taken at the beginning or the end of the regular working schedule, whichever gives the employee the most free time for voting and the least time away from work. The employee must notify the employer at least two working days in advance to schedule voting time.

Employers must display a poster describing voting leave requirements at least 10 days before every statewide election. For information on the voting leave poster and all required posters and notice, please contact your HR Representative.

Baby Bonding and Employers with 50+ Employees

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Under California and federal law, eligible employees can take baby bonding leave to bond with a newborn child or with a child placed with the employee for adoption or foster care. But what exactly is baby bonding and who can take it?

The federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA) allow eligible employees to take up to 12 weeks of leave to bond with a newborn, an adopted child placed in foster care with an employee. This leave is available to both male and female employees.

Governor Signs Job Creator Promoting Disability Access

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The job creator bill that incentivizes disability access and education was signed by Governor Brown this week. SB 269, will limit frivolous litigation and claims regarding construction-related accessibility violations by providing businesses that have proactively sought to become compliant with the Americans with Disabilities Act (ADA) with an opportunity to resolve any identified violations. As this is an urgency measure, SB 269 took effect immediately upon being signed on May 1st.

The bill seeks to incentivize businesses to proactively take steps to become accessible by providing them with 120 days from receipt of a Certified Access Specialist report to resolve any violations identified without being subject to statutory penalties or litigation costs. This proposal will assist businesses who are trying to ensure they are compliant from being subject to frivolous claims or litigation. This bill also provides a limited time for businesses to resolve violations of minor, technical construction related standards that do not actually impeded access to the public accommodation.