4 Updates on the 2016 Overtime Rule

On June 30, 2017, the Department of Justice released a brief to the 5th U.S. Circuit Court of Appeals, “that the Department of Labor (DOL) intends to revisit the $47,476 ($913 per-week) salary limit set by the rule through new rule-making.”[i]  Recall from the November 2016 district court ruling, which blocked the overtime rule.  The court blocked the rule based on the lack of authority by the Department of Labor to set any salary-level threshold for the exemptions.  The court case has been delayed since March 2017.  The new administration could set a new direction for the Department of Labor, overtime rule, and salary threshold.

Below are 4 thoughts updates on the 2016 overtime rule:

  1. 3-Part Test: This process to determine exemption has not changed in 75 years.  To be exempt, a worker must satisfy the following; be paid on a salary basis, earn a specified salary and satisfy a duties test.  Reminder the exempt levels for Executive and Administrative professionals in New York State will rise again at the end of 2017.
  2. Potential Changes: During his confirmation hearing, Secretary of Labor Alexander Acosta wants to raise the $23,600 threshold to “somewhere around $33,000.”[ii]
  3. New Rule-making: The Department of Labor will revisit the salary level(s) through the rule-making process.  Under the new administration we could see no need for any courts to evaluate the 2016 rule, blocking the overtime rule and new salary threshold.
  4. Appeals Court: The 2016 case has not been decided yet.  We could still see a ruling from the court system on the salary thresholds blocked in November 2016.  Continue to monitor for any potential updates on this case.

Under the new administration we can expect to see changes to the Department of Labor and potential salary threshold increases.  However, this is a federal threshold.  Remember that state thresholds can be higher than federal thresholds, based on exemption status and the duties tests.  This is comparable to what we see with minimum wage increases, state versus federal.  If you are confused about job classifications, duties tests and threshold levels, ask for guidance.  This legislation will could evolve in the court system or under the new administration.

[i] https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/dol-right-to-set-salary-threshold.aspx

[ii] https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/dol-right-to-set-salary-threshold.aspx

-Matthew W. Burr 

5 Considerations for Effective Workplace Investigations

We recently completed a successful training on effective and legal workplace investigations.  During the recording of our next podcast for Upstate HR, we also discussed workplace investigations and the importance of proactive investigatory processes.  Throughout my career, many of my experiences have provided valuable insight into the importance of effective and efficient workplace investigations.  As leaders, we need to take complaints and investigations seriously, as these issues can escalate into additional problems in the workplace, on social media,  and create stress outside of work.

Below are 5 considerations for effective workplace investigations:

  1. Don’t ignore the issue/complaint. If any employee approaches the organization with a complaint or allegation, we need to take this seriously.  Ignoring or hoping the issue goes away or resolves itself is not the right approach; we need to address the underlying issues.  Ask questions and ensure you understand the details of the issues/allegations.
  2. Never assume: Remember, there are two-sides to every story.  Do not assume that one party is guilty, because we only hear one-side of the story.  In most cases, fact-finding means understanding the entire allegation/situation before making a decision.
  3. Prepare, Prepare, Prepare: Preparing for the investigation interviews and fact-finding is challenging.  What questions do we ask?  What information do we need?  Who should we talk too?  The answer to this is that it depends on the situation.  Creating a template or checklist to ensure consistency and accuracy will help in working through the process efficiently and proactively.  Ask leading questions that force individuals to answer questions with more information, versus “yes” or “no” answers.  The more prepared you are, the more efficient the process will become.  Investigations are not easy and questions that are asked will not always be enjoyable for people to answer.  I have asked many of these questions throughout my career.  Be prepared, and know laws, policies, procedures, contract language, etc. that may be involved or impacted by the investigation.
  4. Neutrality: This consideration defaults back to consideration #2.  Remain neutral throughout the investigation and recommendation process.  This takes practice and is not easy in small organizations.  If you as a leader feel that neutrality is not practical internally, it is not always a bad idea to bring in a third-party to conduct the investigation and draft a finding of facts.  Using a third party all but ensures neutrality throughout the process.
  5. Closure/Conclusion/Recommendation: Throughout my career, I have seen this final step as the biggest hurdle for many organizations.  The investigation is conducted, information is gathered and then nothing happens.  Regardless of the outcome or recommended outcomes, the investigation needs to be closed.  I’m not suggesting revealing confidential information, but we do need to close the loop of communication with the parties involved.  Without proactive communication, we could see increased employee relations issues, decreased employee morale, and potential retaliation issues.  This is one of the most important pieces of the investigation process.

We closed out the podcast yesterday on a positive note.  Not all workplace investigations are negative or lead to discipline.  Workplace investigations are great for process improvement, addressing safety concerns, Six Sigma change, employee engagement, and efficiency.  Regardless, we need to take the investigation process seriously and manage it proactively, by reinforcing rules and policies throughout.  If you are unclear on how to investigate, ask for assistance or hire a third-party neutral to manage the process for the organization.

– Matthew Burr, HR Consultant

 

Below are the for upcoming training’s I will be conducting at Elmira College, Corning Community College (CCC), 247 Compliance and Compliance Online (July & August):

Elmira College: SHRM Certification Exam Prep Course- September through November

Upcoming Corning Community College Training’s

247 Compliance: Performance of Dashboard Using KPIs and Designing

 

Below is a link to our new Podcast Upstate HR:

Recruitment in the Modern Age

iTunes subscription will update you whenever we post a new podcast.

New podcast recently updated.

 

 

 

 

 

 

13 Common Job Application Mistakes Made by Employers

The Society of Human Resources Management recently published an article, “Top 10 Mistakes Employers Make in Job Applications.”  I decided to add three more to the list, based on my experience.  Most employers nationwide, are still using a job application, handwritten or during the online application process.  As leaders, we need to be aware of the potential issues of not updating employment applications or using a generic employment application.  As laws continue to evolve, so too should our employment application processes.       

Below are the 13 common job application mistakes:

  1. “Including any disability-related or medical questions
  2. Not including an at-will disclaimer
  3. Not including a nondiscrimination statement
  4. Requesting graduation dates in the education section
  5. Asking about arrests and convictions, without appropriate disclaimers
  6. Putting a background check acknowledgement on the employment application (I see this too often)
  7. Not including language telling applicants how to request a reasonable accommodation
  8. Asking for a photograph
  9. Asking about marital or familial status
  10. Asking about citizenship”[i]
  11. Not including a signature section to verify that the applicant is acknowledging the information is true and accurate. Remember a resume or CV is not the same thing as an employment application.
  12. Including a section for a social security number, on either the paper application or by not allowing a person to continue through the applicant tracking system. Do we really need a social security number?  “An employment application should request only information directly related to an applicant’s ability to perform a specific job… general practice, employers should request SSN information only when absolutely necessary.”[ii]  If you do not need it, don’t ask for it.
  13. Using generic employment applications. “Well I found this on the internet, it should be okay.” Ensure that someone reviews the application or helps you develop a new one prior to using it during the hiring process.  Just because it is found on the internet does not make it legal and valid.

Employment applications are an important piece to the recruitment and retention process for all organizations.  Asking irrelevant questions on the application can be a potential liability.  As the laws continue to evolve, we need to ensure our employment application, both paper and electronic are legally compliant and efficient for job applicants.  If you have questions about your application, ask for assistance.  Do not assume that the first Google search will provide a legal job application.  Remember laws vary; federally, state-wide and city specific.  These laws will impact what can and cannot be asked on the employment application.

 

– Matthew Burr, HR Consultant

“Short Name, Proven Results”

 

[i] https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/top-10-mistakes-employers-make-job-applications.aspx

 

[ii] https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/socialsecuritynumber.aspx