Minimum Wage Requirements

Worried About Labor Law Compliance? Use Our Checklist

by National Peo National Peo No Comments

Worried About Labor Law Compliance? Use Our Checklist

labor law complianceEmployment laws protect personnel while guaranteeing that employers provide fair and equal workplaces for everyone involved. Whenever you want to know if your company is legally compliant with these mandatory laws, call on National PEO’s legal-savvy team. During our stringent labor law compliance audits, we’ll detect any potential federal, state, and local regulation violations.

Then together, we’ll prioritize your issues and rectify them in cost-effective ways. We’ll help develop options to overcome existing infringements and avoid future ones including revising your company’s policies, procedures, facility, or equipment. Safeguarding your employees will protect your business from liabilities. Get a head start today by making sure that your employment processes conform to this sampling of common labor laws. National PEO’s periodic audits will boost your company’s ongoing compliance and help your business achieve long-term sustainability.

Minimum Wages

The 1938 Fair Labor Standards Act (FLSA) requires employers to meet America’s hourly and salary minimums. Since July 2009, the federal wage minimum has been $7.25. Yet some states have established higher minimums for hourly personnel. Whenever state and federal laws vary, maximum rates apply.

Not paying hourly employees sufficiently for overtime work sets you up for federal as well as state labor standard violations. Employers must compensate salaried staffers the weekly $455 federal minimum to satisfy the exempt worker classification’s first step. Review your entire team’s payroll data to be sure that your organization complies with these wage requirements.

Employment Authorizations

Many businesses skip I-9 forms. The 1986 Immigration Reform and Control Act (IRCA) requires employees and employers to complete these legal authorizations correctly within specific time constraints to be sure that all new hires are eligible to work in America. Your company could be liable if you contract services out to other businesses that you know use unauthorized laborers.

Workplace Postings

The U.S. Equal Employment Opportunity Commission (EEOC) and Department of Labor (DOL) oblige employers to hang posters in noticeable places such as break room bulletin boards throughout their premises. Mandatory notifications include EEOC’s employment rights notices, FLSA’s minimum wage postings, and Occupational Safety and Health Administration (OSHA) workplace safety signs. Walking through your facility, you can check that all notices are current without alterations or defacements. Visit federal agency Internet sites to print new or replacement posters. Or call local EEOC or DOL offices to receive them by mail.

labor law complianceFair Employment Methods

Review your workforce census to decide which labor laws relate to your company. For instance, Title VII from the 1964 Civil Rights Act (CRA) and the 1990 Americans with Disabilities Act (ADA) affect businesses with 15 or more employees. The 1967 Age Discrimination in Employment Act (ADEA) minimum is 20 workers. Laws like 1935’s National Labor Relations Act (NLRA) and 1970’s Occupational Safety and Health Act (OSHA) are valid for all crew sizes. Check your job applications, hiring practices, and employment policies to make sure that you follow appropriate laws and your organization’s business standards.

Training Programs

In many states, employers must provide sexual harassment and EEOC law training for their managers and their reports. For instance, California law mandates that companies with over 50 staffers hold two-hour interactive sexual harassment sessions, despite worker locations. To determine if your business complies with your state’s laws, assess your new employee orientation’s subjects and leadership training’s learning objectives. Consult National PEO’s experts about our labor law and custom training programs.

Workers’ Compensation

If you don’t know the right ways to manage your workers’ compensation program or learn the law accurately, you might process paperwork incorrectly and/or miss deadlines. Audits can find such errors and help you get on track.

Family and Personal Medical Leaves

Thanks to the 1993 Family and Medical Leave Act (FMLA), eligible employees can take off as much as 12 weeks of unpaid leave during 12-month periods and still have their jobs protected. This time allows them to take care of newborns, recently adopted children, other kids, parents, or spouses with serious health conditions.

Personnel also can use their leaves to recuperate from their own major illnesses. But some employers aren’t clear on FMLA’s payment regulations, leave length, and their responsibilities after staffers exhaust their leaves. Regular audits can make sure that you aren’t violating this act’s federal regulations.

Industry-Specific Policies

Various industries including construction, manufacturing, mining, and agriculture must adhere to additional regulations that affect their fields explicitly. These extra obligations increase your infraction chances and thus your audit needs.

Arizona Minimum Wage Increasing

by National Peo National Peo No Comments

As you may recall, in Arizona last year the minimum wage increased to $6.75/hour and will be adjusted annually to coincide with the cost of living modification reported in August of each year.  It has just recently been announced that effective 1/1/08, the AZ minimum wage will be $6.90/hour.

The tip credit of $3.00/hour will remain the same.  Therefore, tipped employees who are currently at $3.75/hour will be adjusted to $3.90/hour.

Other states will also see an increase in minimum wage.  Watch our blog for new updates! Information with be posted as it becomes available.  If you have any questions, please do not hesitate to call National PEO Human Resources Team at 480-429-8098.

Payroll on a Holiday Week

by National Peo National Peo No Comments

With the recent passing of Labor Day and the upcoming holiday season, realization occurred as it relates to payroll issues when a holiday occurs.  I received an extraordinary amount of questions from Clients and employees who sought to understand their rights and entitlements.

Under the federal Fair Labor Standards Act (FLSA), covered employees (non-exempt) are entitled to at least minimum wage pay, plus overtime pay (hourly rate x 1.5) for hours worked in excess of 40 in a workweek.  Currently, the federal minimum wage is $5.85, but many states have higher rates.

As it pertains to overtime, the key phrase is hours worked.  A paid holiday does not count as hours worked when calculating overtime pay.

Additionally, the FLSA does not require employers to pay holiday or vacation pay to employees, yet it is considered more of a benefit.

Please contact National PEO if you have questions regarding the FLSA or other laws pertaining to employee rights.

Federal Minimum Wage to Increase

by National Peo National Peo 1 Comment

For those of you who have not heard, on May 25, 2007, President Bush signed the Fair Minimum Wage Act of 2007, which raises the federal minimum wage to $7.25 per hour over the next two years.

To unravel the difference between the federal wage and state wage, states may assess that a higher wage is necessary for citizens to meet their needs and therefore adopt a higher wage.  When a state adopts a higher wage than federal, then employers must pay the higher wage.  Many states do not establish their own minimum wage  and therefore follow the federal wage.

The new federal minimum wage will be phased in accordingly:

  • Current federal minimum wage $5.15
  • First increase 7/24/07 $5.85
  • Second increase 7/24/08 $6.55
  • Final increase 7/24/08 $7.25

There is no change to the federal regualtion for tipped employees, which remains at $2.13/hour. 

So how will this affect us prior to July 24, 2009?  Out of state clients who have different state minimums will require analysis and possible adjustments.

Out of state clients who fall under the current federal minimum wage of $5.15 will be raised to $5.85, $6.55 and ultimately $7.25.

This also runs concurrent with Arizona and other states who have established an annual increase (in January) in accordance with the cost of living increase.

Federal Minimum Wage Increase Becomes Law

by National Peo National Peo No Comments

With the week-long Memorial Day congressional recess looming, President Bush signed into law an increase in the Federal minimum wage on Friday, May 25. This is the first time in a decade that the minimum wage has been raised. The wage increase was added to the most recent Iraq war funding bill.

The new law will raise the minimum wage in three $.70 increments over 26 months until it reaches $7.25 per hour. The first increase (up to $5.85) will occur this summer or to be specific, 60 days after the law takes effect. The second increase (up to $6.55) and third increase (up to $7.25) will take place one and two years respectively, after the date of the first increase.

In addition, the new law contains $4.84 billion of tax relief for small businesses to help offset the cost of the mandated wage increase to employers. These tax law changes include a three-and-a-half year extension of the Work Opportunity Tax Credit (WOTC), which gives employers tax credits for hiring individuals from one or more of nine targeted groups. Also, disabled veterans were added as a targeted group under WOTC.

Florida Minimum Wage to go to $6.67 per hour in 2007

by National Peo National Peo No Comments
Florida’s minimum wage will increase to $6.67 an hour next year, a 27-cent increase to match inflation as required by an initiative passed two years ago.The state’s minimum wage went up to $6.15 an hour in 2005 because of a constitutional amendment approved by voters in 2004, and then went up to $6.40 this year.

The amendment tied the state’s minimum wage to inflation, requiring an adjustment each year.

The $6.67 rate will start Jan. 1, the Florida Agency for Workforce Innovation announced Thursday.

The increase puts the state’s minimum wage at $1.52 more than the current $5.15 federal minimum wage. At least 13 other states, however, have minimum wage rates higher than the federal standard.

For workers whose tips are counted as part of their wage, the minimum will go to $3.65 an hour Jan. 1, plus the worker’s tips.

About 400,000 of the 9 million people in the Florida work force earn the minimum wage, according to Agency for Workforce Innovation statistics.