MBA News - Laws

What is the legal definition of harassment?

MBAHRO — Sat, 10 Jul 2010 00:58:00 GMT

What is the legal definition of harassment? At least a few times a year, one of your managers, or one of their employees, will get into a situation and need to ask, “What is the legal definition of harassment?” Now, while this is usually a very loaded and stress inducing question to be asked by a manager, this article will just focus on giving you an overview of the legal definition. So, what is the legal definition of harassment? Harassment is a kind of discrimination that can erupt from a handful of different categories. First, let’s highlight a few of the different types: Sexual harassment Unwanted sexually explicit words or advances, gestures and images. Applying a positive or negative personnel action based on accepting or refusing sexual advances. Can also be based on negative treatment on the basis of gender. Race harassment Most often occurs as offensive comments, jokes, gestures. Includes even when the victim and harasser are the same race. Religiou ...

Types of workplace harassment

MBAHRO — Sun, 04 Jul 2010 00:19:00 GMT

Types of workplace harassment Workplace harassment comes in a variety of deliveries and categories. The harassment delivery mediums include: In person In writing By telephone Via e-mail Types of workplace harassment can also occur through any other means of communication. (text messaging, instant messaging) Harassment can be physical, verbal or visual. Examples of verbal harassment include but are not limited to unwelcome comments, jokes, insults and name-calling. It can include any other words and conduct that demean, stigmatize, intimidate, or single out a person because of his or her sex, race, color, religion, national origin, age, disability or other legally protected status. Examples of physical or visual types of workplace harassment include but are not limited to unwelcome physical contact, damaging personal property, possession or display of derogatory pictures or other graphic materials. The most frequent types of workplace harassment occ ...

U.S. Child Labor Laws - Changes that may affect your business

MBAHRO — Thu, 01 Jul 2010 23:30:00 GMT

U.S. Child Labor Laws - Changes that may affect your business The Fair Labor Standards Act (FLSA) Child-Labor Regulations have recently been revised. On July, 19, 2010, the final revisions to the child-labor regulations under the Fair Labor Standards Act will become legally effective. The Department of Labor has been receiving comments on these most recent suggested regulation changes to the U.S. child labor laws since 2007. The DOL states that these revisions are supposed to make it easier for people under that age if 18 to get a job. These revisions only apply to non-agricultural positions. The Department of Labor (DOL) is scheduled to revise the provisions concerning minors in agricultural employment. The revisions single out industries like banking, information technology and advertising. While the regulations offer an array of rules to follow, the most recent revisions address specific issues: There is a provision permitting 14 and 15 year olds to wo ...

Your Employee’s Work email expectation of privacy – New Supreme Court Decision adds some clarity.

MBAHRO — Mon, 28 Jun 2010 23:35:00 GMT

Your Employee’s Work email expectation of privacy – New Supreme Court Decision adds some clarity. The latest Supreme Court ruling help that a California police department’s review of sexually charged text messages sent by the officer to his wife and to his mistress from his employer-issued pager, did not constitute an invasion of the employee’s privacy. This overturned a previous ruling by the 9th Circuit. (Link to the full opinion in City of Ontario v. Quon). As a business owner, you should take note that the Supreme Court’s decision was largely motivated by concept that the police department’s review of the messages was in line with its policy and was conducted for a valid business reason. Also, that the implications of the decision on the employees texts in this case could also be seen to apply to the work email expectation of privacy for the average employee. The officer had exceeded the allotted monthly number of messaged approved for his tex ...

DOL says you may have to compensate employees for time spent putting on protective equipment required by law.

MBAHRO — Tue, 15 Jun 2010 23:54:00 GMT

DOL says you may have to compensate employees for time spent putting on protective equipment required by law. The new Department of Labor’s (DOL) Administrator’s Interpretation, issued by Deputy Administrator Nancy J. Leppink), concerns whether you have to pay for the time employees use to change put on and take off protective equipment required by law. It’s entitles “SUBJECT: Section 3(o) of the Fair Labor Standards Act, 29 U.S.C. 203(o), and the definition of clothes.” (Administrator's Interpretation No. 2010-2) Under the Fair Labor and Standards Act, you don’t have to pay employees for their time spend changing clothes or washing at the beginning or end of each workday. But, this new Administrator’s Interpretation explains that safety equipment is going to be treated separately, and that changing into and out of protective equipment required by law is now time that your employees will be compensated for. So, if your employees ar ...

Designing an Internship Program

MBAHRO — Fri, 04 Jun 2010 20:19:00 GMT

Designing an Internship Program Designing an Internship Program can create a great way to pave the way to create relationships with local schools and pave the way to boosting your recruiting program. It’s not uncommon for over 20% of a company’s new-hires to come from its internship program. Then designing an internship program, several factors should be considered: Strategic Planning Will your internship program be available year-round? Post openings at least eight weeks from the start date. Will they need workspace? Will they need computer access? What kinds of meaningful projects will they participate in? Supervising Since internships are generally a training type of program, they will typically need a greater amount of supervision than the normal employees. Each intern will need to be welcomed to the company and taken through many of the normal employee orientation efforts, like security, facility accommodations, punch in/out procedures, etc. ...

Federal Employment Posters Update – Use the new NLRA poster by June 21st to stay in compliance.

MBAHRO — Wed, 02 Jun 2010 23:02:00 GMT

Federal Employment Posters Update – Use the new NLRA poster by June 21st to stay in compliance. Now, under the National Labor Relations Act (NLRA), most federal contractors and subcontractors, by law, must inform employees of their rights. The Department of Labor's regulations implement Executive Order (E.O.) 13496 E.O. 13496 advances the Administration's goal of promoting economy and efficiency of Federal government procurement by ensuring that workers employed in the private sector and engaged in activity related to the performance of Federal government contracts are informed of their rights to form, join, or assist a union and bargain collectively with their employer. Knowledge of such basic statutory rights promotes stable labor-management relations, thus reducing costs to the Federal government. Pursuant to Executive Order 13496 and its implementing regulations, 29 C.F.R. Part 471, Federal contractors and subcontractors, beginning on June 21, 2010, must notify employees ...

Fair Labor Standards Act (FLSA) and nonpaid internships: Quiz

MBAHRO — Wed, 19 May 2010 20:12:00 GMT

Fair Labor Standards Act (FLSA) and nonpaid internships: Quiz The Fair Labor Standards Act (FLSA) requires that nonexempt employees receive at least minimum wage for all hours worked and must also receive time-and-a-half pay for all hours worked more than 40 during the workweek. While the FLSA doesn't define what an intern is, nor provide an exemption from minimum wages or overtime for interns, it does define an employee as "any individual employed by an employer." The definition of "employ" under the FLSA "includes to suffer or permit to work." Under federal law, for-profit organizations must pay workers unless the position fits six criteria. The following quiz helps to illustrate the six criteria. Would the employee be correctly classified as a “Coordinator”, “Trainee”, or “Intern”? For an unpaid internship to be lawful under the Fair Labor Standards Act (“FLSA”), the intern must be classified as a “trainee&rd ...

Healthcare Reform Update

MBAHRO — Fri, 14 May 2010 19:58:00 GMT

Health Reform Bill HR3590 Update - Simple Cafeteria Plans

The American Society of Pension Professionals & Actuaries published an article summarizing "Simple Cafeteria Plans" that are available starting January 1, 2011, under the health reform bill (HR 3590). Please use the link below to access:

http://www.asppa.org/Document-Vault/PDFs/ASAPs/2010/10-13.aspx

Employee Benefits Cost Advantages to Restaurants that outsource HR

MBAHRO — Wed, 12 May 2010 22:14:00 GMT

Employee Benefits Cost Advantages to Restaurants that outsource HR When a restaurant considers outsourcing its HR functions, it normally takes into account some estimated employee benefits cost advantages. But many of the advantages go beyond having your employees take advantage of group benefits rates through the PEO company. By using an outsource, restaurant owners can relieve themselves of the costly administrative burdens of managing: Claims management Direct Deposits Payroll Taxes Applying the complex laws governing wages and tips that can make managing restaurant payrolls extremely difficult to manage. A PEO can help reduce the employee benefits cost and the risk of compliance penalties through: Arranging for competitive health coverage. Creating a I-9 compliance evaluation, which ensures that all employees are compliant with INS regulations and avoiding penalties. Performing a payroll process audit to make recommendations to st ...

Introduction to pay deductions covered by the Fair Labor Standards Act (FLSA)

MBAHRO — Mon, 19 Apr 2010 21:07:00 GMT

Introduction to pay deductions covered by the Fair Labor Standards Act (FLSA) The Fair Labor Standards Act (FLSA) establishes, among other things, federal standards for minimum wages and overtime pay that employers are required to follow. Unless a specific minimum wage and overtime exemption applies, employees must be paid at least the applicable minimum wage for each hour worked and overtime for any hours in excess of 40 hours worked in the workweek. Employees who do not qualify for an exemption are commonly referred to as "nonexempt employees" and those employees who do qualify are referred to as "exempt employees." Risks The issue of improper deductions applies to all employees, both nonexempt and exempt. An improper deduction from either is a violation of the FLSA law and such violations can result in investigations by the United States Department of Labor (DOL) and/or expensive and time-consuming litigation. As an employer considering taking deductions from any employee's wages ...

Pay Deductions Quiz: Uniforms for a minimum wage employee.

MBAHRO — Fri, 16 Apr 2010 21:09:00 GMT

Pay Deductions Quiz: Uniforms for a minimum wage employee. You hire a minimum wage employee to work as a cashier at your auto parts store. The employee signs an agreement to have $20.00 deducted from her first check to cover the cost of a uniform. You then, as agreed upon, deduct $20.00 from the employee's first check to cover the cost of the uniform. Have you violated any Fair Labor Standards Act (FLSA) requirements? Here, you have violated the FLSA's requirement that a nonexempt employee be paid the minimum wage for each hour worked. It makes no difference that the employee agreed to the deduction. Because the employee is a minimum wage employee, there was nothing that could legally be deducted from the employee's wage to cover the cost of the uniform. Any deduction puts the employee below the minimum wage level. Feel free to visit the main page we’ve created for Articles on Payroll Services. Modern Business Associates frequently deals with payroll issues. As a Profession ...

Note these legal age issues when planning to layoff employees.

MBAHRO — Wed, 14 Apr 2010 21:11:00 GMT

Note these legal age issues when planning to layoff employees. The Older Workers Benefit Protection Act (OWBPA) provides additional protection to employees covered by the Age Discrimination in Employment Act (ADEA). The OWBPA affects downsizing employers in two ways. First, the OWBPA places strict requirements on an employee's release of an ADEA claim. Requirements include: It requires such a release to be in writing as part of the information given to the employee during the layoff. Employees must be able to easily understand the release. (the "knowing and voluntary requirement"). The employee must be advised to consult with an attorney after the day of the layoff. Employees must be given a 21-day consideration period to evaluate the release The employee must be given a seven-day revocation period after signature. Second, the OWBPA includes potentially dangerous conditions for group layoffs. If an employer offers severance and an associated release to ...

HIRE Act Requires Individuals to Sign an affidavit

MBAHRO — Thu, 01 Apr 2010 21:18:00 GMT

HIRE Act Requires Individuals to Sign an affidavit

The HIRE Act requires that an individual sign an affidavit attesting to certain requirements that would make the employer eligible for the payroll tax exemption available under the law. MBA has received several recent inquiries regarding where this affidavit can be obtained. Please be advised that the IRS is expected to issue a model affidavit to be used for this purpose (see http://www.irs.gov/businesses/small/article/0,,id=220749,00.html).

When the IRS publishes this affidavit, MBA will make it available to you. In the meantime, please exercise caution using any affidavits located on the internet, as they have not been approved by the IRS.

New jobs bill, how do I get the most retention tax credits.

MBAHRO — Mon, 29 Mar 2010 22:29:00 GMT

New jobs bill, how do I get the most retention tax credits. President Obama signed into law a new jobs bill (HIRE Act) in March of 2010. The jobs bill pays you Retention Tax Credits to hang onto your employees. As an incentive to retain employees who qualify for Social Security tax forgiveness, the jobs bill provides up to a maximum $1,000 tax credit to employers for each qualified retained employee as a Section 38(b) business tax credit. The credit is the lesser of 6.2% of wages or $1,000. To be eligible for the jobs bill credit the qualified retained employee must: Be employed for 52 consecutive weeks. There is no provision for prorating the credit. Earn wages during the last 26 week period that are at least 80% of the wages for the first 26 week period. Note These jobs bill tax credits will be available to be taken on employers’ 2011 income tax returns. The jobs bill does not allow carry back of any unused Section 38 business tax credits that are attri ...

Hiring Incentives To Restore Employment Act Social Security Tax Credits, how to earn the credits.

MBAHRO — Mon, 29 Mar 2010 22:27:00 GMT

Hiring Incentives To Restore Employment Act Social Security Tax Credits, how to earn the credits. President Obama signed into law the Hiring Incentives to Restore Employment Act in March of 2010. The Hiring Incentives To Restore Employment Act carries a Social Security tax forgiveness credit. It starts immediately for employers hiring qualified employees through the remainder of 2010. To be a qualified employee the new employee must: Start work after Feb. 3, 2010 and before Jan. 1, 2011. Be previously unemployed Not have worked more than 40 hours within the 60 days prior to the employee’s start date. Not replace current employees unless former employees were terminated for cause or left employment voluntarily. Not be related to the employer Note: Qualified employees may work less than full time hours, and under certain circumstances, may be rehired from a previous lay off. Check our article on how to obtain the maximum credits from the Hiring Incentives T ...

Federal HIRE Act offers a tax credit on social security, how much can my company earn?

MBAHRO — Fri, 26 Mar 2010 02:42:00 GMT

Federal HIRE Act offers a tax credit on social security, how much can my company earn? President Obama signed into law the Hiring Incentives to Restore Employment Act ( HIRE Act ) in March of 2010. The federal HIRE Act carries a tax credit on Social Security. It starts immediately for employers hiring qualified employees through the remainder of 2010. The best way to generate the maximum tax credit on Social Security is to hire qualified employees early in the year, since the exemption stops on wages paid after January 1, 2011. If an employee earning $40,000 annually is hired on April 1, 2010, the Social Security tax credit to the employer would be approximately $1,900. If the same employee was not hired until Aug. 15, 2010, the savings would be lowered to $950. The tax credit on Social Security can be used to offset scheduled tax deposit liabilities beginning April 1, 2010 and accrue with each payroll processed. Employers will receive a 6.2% Employer Social Security Tax Ex ...

You’ve just grown to have 20 employees. Did you know it comes with COBRA responsibilities?

MBAHRO — Fri, 26 Mar 2010 02:41:00 GMT

You’ve just grown to have 20 employees. Did you know it comes with COBRA responsibilities? Here’s one tip when terminating employees or reducing their hours: Employers offering group healthcare plans (including medical, dental, and vision) likely are covered by the Consolidated Omnibus Budget Reconciliation Act (COBRA), or an even more restrictive state or local law. COBRA notices need to be issues correctly to avoid penalties. Under COBRA, an employer with 20 or more employees must provide terminated workers and workers whose hours have been reduced (as well as qualified beneficiaries) with an opportunity to continue group coverage, usually for up to 18 months. (Continuation costs are borne by the employee.) You can be fined both excise taxes and Employee Retirement Income Security Act of 1974 (ERISA) penalties for failing to properly notice employees, and can even be held liable for an unnoticed beneficiary's medical claims and related legal fees. A note about usin ...

Tax credits mean good news for employers!

MBAHRO — Wed, 24 Mar 2010 02:47:00 GMT

Tax credits mean good news for employers! On March 18, 2010 President Obama signed into law the Hiring Incentives to Restore Employment Act (HIRE Act). The HIRE Act carries two significant tax incentive components for employers: a Social Security tax forgiveness and a retention tax credit. The first starts immediately for employers hiring qualified employees through the remainder of 2010 and the second can be earned by employers who retain qualified employees for a minimum of 52 consecutive weeks. The following is an overview of how both incentives work. Social Security Tax Forgiveness: Employers will receive a 6.2% Employer Social Security Tax Exemption on wages paid to “qualified employees” after March 18, 2010 and before January 1, 2011, up to the Social Security maximum of $106,800. The maximum credit per qualified employee is $6,621. To be a qualified employee the new employee must: · &# ...

Health Care Reform Legislation Signed Into Law

MBAHRO — Wed, 24 Mar 2010 02:45:00 GMT

Health Care Reform Legislation Signed Into Law - Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care and Education Affordability Reconciliation Act of 2010 (H.R. 4872) On March 23, 2010, President Barack Obama signed the Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care and Education Affordability Reconciliation Act of 2010 (H.R. 4872) into law. This combined legislation significantly reforms health care, and will have an eventual impact on certain employers. (A summary of the legislation is available here.)Although the extent of the laws' impact on employers is unknown at this time (and at least 14 states have already filed federal legal challenges attacking the 2,400-page legislation’s constitutionality), MBA will continue to provide you with important updates regarding the steps you must take to ensure you are in compliance. Please note that the majority of the reforms affecting employers do not become effective until 2014; however, cert ...

What else do they look for during a Department of Labor (DOL) gov. compliance audit?

MBAHRO — Tue, 16 Mar 2010 02:54:00 GMT

What else do they look for during a Department of Labor (DOL) gov. compliance audit? During a DOL gov. compliance audit, the investigator covers many areas of your business. The primary focus is on your pay records. DOL investigators also usually review the employer's adherence to federal child-labor laws, which prescribe the number of hours and times of day-night youths may work, as well as the jobs they may perform. Click here for a link to the DOL’s FAQ on child labor laws DOL investigators will also perform at least a cursory analysis of the employer's compliance with the Family and Medical Leave Act and will make sure mandatory posters are displayed. See DOL's Web site for poster information. Click here for a link to the DOL’s FMLA information page Modern Business Associates helps our clients deal with DOL gov. compliance audit issues. As a Professional Employee Organization, our clients rely on us to help them ef ...

WARN act can ruin your layoff plan, are you at risk?

MBAHRO — Tue, 02 Mar 2010 04:11:00 GMT

WARN act can ruin your layoff plan, are you at risk? Here at Modern Business Associates, we frequently deal with federal labor and employment laws and how they affect our clients. Laws relating to layoffs have been a hot topic lately. The Worker Adjustment and Retraining Notification Act (WARN act) is one such hot legal issue. The WARN act sets forth specific notification requirements for covered employers undergoing certain layoffs. (States including California, Illinois, Maine, and New Jersey have enacted similar legislation expanding an employer's notification obligations.) In part, the WARN act requires employers with 100 or more employees to provide workers with 60 days written notice of: Plant Closings Mass Layoffs Under the WARN act, a "plant closing" is a permanent or temporary shutdown of a single site of employment resulting in an employment loss of 50 or more employees during a 30-day period. Under the WARN act, a "mass layoff" is either a reduction in workforce ...

Did you know salaried employees may not have an exempt status according to the Fair Labor and Standards Act (FLSA)?

MBAHRO — Wed, 17 Feb 2010 22:00:00 GMT

Did you know salaried employees may not have an exempt status according to the Fair Labor and Standards Act (FLSA)? An employer, deciding about the exempt/non exempt status of an employee, who takes prohibited deductions, puts employees' exempt status at risk--meaning those employees potentially could be entitled to minimum wage and overtime for all hours they worked, going back at least two years Who can get an exempt status anyway? Three criteria must be met before an employee can be classified as exempt according to the labor standards act. 1. The employee must make at least a certain minimum-salary level. · The employee must earn a salary of at least $455 per week ($23,600 annually). If an employee does not earn at least this amount, the employee is not exempt and is entitled to minimum wage and overtime. Certain highly-compensated employees who earn at least $100,000 annually may also qualify as non-exem ...

Benefits of Performance Appraisals include Compliance Protection

MBAHRO — Wed, 13 Jan 2010 21:18:00 GMT

Benefits of Performance Appraisals include Compliance Protection A performance appraisal system, when properly managed, provides you with a means of measuring, maintaining, and improving your employee’s job performances. Through the job performance appraisal program, your company can: Validate hiring decisions Recognize employees' job performance strengths and weaknesses Identify employees who are ready for promotion or greater responsibilities Assess training needs From a compliance perspective, you should be able to rely on performance appraisals to justify the full range of personnel decisions, including discipline and termination actions. For example, if a performance appraisal reflects poor job performance by the employee and this employee is later terminated, the you can point to the performance appraisal to show the employee was not performing to standards. If, however, an employee with overall weak performance is given a good or even average appraisal, and the ...

Avoid audit penalties by understanding more about current exempt employee law and deductions

MBAHRO — Tue, 05 Jan 2010 21:27:00 GMT

Avoid audits. Exempt Employee laws and deductions. Modern Business Associates deals with these kinds of issues on a frequent basis. As a Human Resource Outsource Organization, our clients rely on us to help them effectively deal with these kinds of labor topics including appropriate deductions, Sick Leave Policies, and compliance issues like FMLA.