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 

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

 

3 Updates to the New York Paid Family Leave Law

As we move closer to 2018, the regulations on the New York State Paid Family Leave Law will continue to be communicated from the state.  On June 1, 2017, the state released the maximum employee contributions.  This will be the average deduction that will be taken out of the employee’s paycheck.

Below are the 3 updates:

  1. Clarification on the payroll deductions and employer portions. This clarification is not new.  However, I have been asked about the employer portion many times.  The paid family leave “is intended to be funded entirely through employee payroll deductions and employers are not required to fund any portion of this benefit.”[i]
  2. The maximum employee contribution was set at 0.126% on June 1, 2017, of an employee’s weekly wage, up to and not to exceed 0.126% of the NY statewide average weekly wage. The current statewide wage is $1,305.92.  “So, for example, if an employee’s weekly wage amounts to $1,000.00, the maximum payroll deduction for PFL would be $1.26 for that week.”[ii]  If any employee makes more than $1,305.92, the weekly amount will be capped at $1.65.  Multiply the 0.126% by the wage to calculate the deduction.
  3. The statewide average weekly wage is calculated annually on March 31st and will be based on the previous calendar year’s average weekly wage. As wages increase across the state, so will the paid family leave contribution deductions, out of the employee’s paycheck.        

As new information is released, I will send a breakdown of the regulations.  Now is the time to begin reviewing, drafting, updating and revising policies and procedures related to FMLA and Paid Family Leave.  January 1, 2018 is only six short months away.  If you are confused, ask questions and do not assume.  This law is very complex, it continues to change as new regulations are slowly released.

New York State Paid Family Leave Website

Premium Rate for Family Leave Maximum Employee Benefit Contribution Website

 

Reminder of Previous Information: 

[iii]

 

Want to learn more? Check out the upcoming trainings I will be conducting at Elmira College, Corning Community College (CCC), 24/7 Compliance and Compliance Online  in 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

 

 

– Matthew Burr, HR Consultant

 

[i] https://www.bsk.com/media-center/3723-labor-employment-new-york-sets-maximum-employee-contribution-paid-family

 

[ii] https://www.bsk.com/media-center/3723-labor-employment-new-york-sets-maximum-employee-contribution-paid-family

 

[iii] Guardian PPT Training Slides