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HR Compliance Updates: Summer 2017



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In the world of Human Resources, staying up to speed on the latest compliance and regulations updates is critical. For employers and HR managers, it’s not only important to have this knowledge, but it’s necessary to properly comply with any new laws or regulations in order to avoid potential penalties or consequences that can hurt your business. Here are some important HR compliance updates you should know about.

New Form I-9

U.S Citizenship and Immigration Services (USCIS) published a revised version of the Form I-9 on July 17. The new form will become mandatory, beginning September 18. We recommend employers switch to the new form now rather than waiting until the fall. Revisions to the form include a few small changes to the instructions and list of acceptable documents. Access the updated form and additional information HERE.

Same-Day ACH Debit Transactions

A recent NACHA report indicates 92% of financial institutions surveyed will be prepared to originate same-day debit transactions by the September 15, 2017 effective date. Of the institutions that responded, 100% stated they will be ready to receive the debit transactions. Same-day credit transactions have been in place since 2016.

What Happened to the 2016 Overtime Rule?

The new Secretary of Labor intends to go through a new rulemaking process to revisit the $47,476 Fair Labor Standards Act (FLSA) salary threshold that was set last year by a district court judge in Texas. The rulemaking process can take a while. The Department of Labor (DOL) would have to set a new salary threshold level and communicate it to the public for comment. After considering the comments, the DOL would publish the new rule and set an effective date, giving everyone time to comply. There’s no indication as to when this process might begin.

To add another twist to the story, there may be a legal battle looming to determine if the DOL even has the authority to set the salary threshold. The DOL is appealing that portion of the Texas judge’s injunction, although they have said they won’t defend the portion of the rule that required the $913 per week salary threshold.

New York Paid Sick Leave Contribution

The New York Paid Family Leave Program is set to begin next year. New York employers are authorized to collect money from each employee to fund the program. For 2018, the maximum employee contribution will be 0.126% of an employee’s weekly wage up to the statewide average weekly wage.

New Salary History Ban

Add New York City to the list of cities that have banned private employers from asking candidates for their salary history information. The governor signed the legislation on May 4, 2017, and the ban will take effect 180 days after that date.

Interns–Paid or Unpaid

It can be tempting for organizations to utilize unpaid interns, especially in the summer months when students are out of school. However, that can become a costly proposition. Federal guidelines issued by the DOL dictate what makes an intern an “employee.” If an intern is not classified as an employee and should’ve been, the company may be subject to back pay, taxes, Social Security, unemployment taxes, interest, attorneys’ fees, and other damages.

There are six factors used to determine if an intern is an employee and subject to the FLSA’s minimum wage and overtime provisions.

1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training that would be given in an educational environment.

2. The internship experience is for the benefit of the intern.

3. The interns do not displace regular employees, but work under close supervision of existing personnel.

4. The employer that provides the training derives no immediate advantage from the activities of the interns, and on occasion the employer’s operations may actually be impeded.

5. The interns are not necessarily entitled to a job at the conclusion of the internship.

6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

For more information on internships, make sure to review and put into practice these internship guidelines.

LBMC Employment Partners is a proven leader in assisting employers with important HR tasks. To learn more about our HR outsourcing services or speak with one of our trusted professionals, contact us today! 

Posted in: Human Resources, HRO, PEO
HR Compliance Updates: Summer 2017