Misclassifying employees as independent contractors is a costly mistake. Under the federal Fair Labor Standards Act (FLSA), the difference between an employee and an independent contractor depends on the circumstances under which work is performed. The distinction has major implications for wage and benefit structures. Unfortunately, businesses routinely fall into the trap of classifying workers based on external criteria – such as cost savings, independent contractor agreements, or franchise operation – rather than on work circumstances.
This winter, in an effort to reach both businesses and workers, the DOL added several misclassification resources to its website. The additions include a mythbusters page […]
Two weeks ago we posted an alert about a preliminary injunction blocking the Department of Labor’s new overtime-exemption rule. The rule was scheduled to take effect on December 1st. While the fate of the rule remains uncertain, the Department of Labor recently filed a notice of intent to appeal the trial court’s preliminary injunction.
For business owners monitoring the status of the case, we’ve gathered the following links providing coverage and commentary on the case. These links do not necessarily represent the opinion of Zlimen & McGuiness, PLLC, and are provided solely for our readers’ interest […]
In a surprise move just nine days before the regulation was to take effect, a Texas Federal Judge issued a nationwide preliminary injunction on the regulation that would require employers to start paying overtime to workers earning salaries under $47,476.00 a year, regardless of the primary duties of that employee. The regulation was to take effect December 1, 2016. Due to the preliminary injunction, the current salary threshold of $23,660.00 will remain in effect. This post will be updated as more information becomes available. Please refer to the article below for complete information on the rule […]
The City of St. Paul recently passed an ordinance requiring employers to provide sick leave for employees. The ordinance, St. Paul City Ordinance 16-29 (available here), will be phased in beginning July 1, 2017. The ordinance is very similar to one passed earlier this year by the city of Minneapolis, but applies to all employers, regardless of size. If you’re an employer in the Twin Cities metro area, familiarize yourself with these requirements.
The ordinance requires employers to provide employees with one hour of sick/safe leave for every 30 hours worked. Employees may […]