School Employees & Overtime: The Latest Blog from Wage and Hour Insights

In addition to my own blog I like to make sure I follow other  well written and accurate blogs that discuss wage and hour law or other payroll related items.  The Wage & Hour Insights blog is one such blog.  I have shared several of them in the past months.  This time the blog addresses a unique situation but still one that is relevant to all payroll professionals.  Do school employees get overtime for occasional extra duty?  Why relevant to all payroll professionals?  Because though the law does give a limited exception to state and local government employers it does not to private sector employers.  So check out today’s blog from Bill Pokorny for government employees.  But also check out his previous blog on the subject for private sector employers. 

 

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MA Governor Proposes Reinstating “Fair-Share” Assessment

Massachusetts Governor Charlie Baker included a plan to reinstate the “fair-share contribution” formerly assessed against employers without a health insurance plan in his fiscal year 2018 budget.  The assessment would recommence as of January 1, 2018 if passed.  They are intended to partially cover the $600 million shortfall in the state healthcare system (Mass Health) for low-income residents. The fair-share contributions were repealed in 2013 with the advent of the Affordable Care Act.   For more detailed information check out the Associated Industries of Massachusetts blog. 

 

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Our Latest White Paper–Year End Memo Makes Sense

Our new white paper is on the topic of sending out a year end memo to your employees.  This memo contains pertinent information that the employees need to know.  So this memo not only helps your employees but also cuts down on questions coming your way from those same employees.  We hope you find the information useful.

white-paper-year-end-memo-dec-2016

 

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New OT Rules Update: DOL Vows to Fight On

On November 22, 2016, U.S. District Court Judge Amos Mazzant granted an Emergency Motion for Preliminary Injunction and thereby enjoined the Department of Labor from implementing and enforcing the Overtime Final Rule on December 1, 2016. The case was heard in the United States District Court, Eastern District of Texas, Sherman Division (State of Nevada ET AL v. United States Department of Labor ET AL No: 4:16-CV-00731).  The DOL has issued the following concerning the ruling:

The rule updated the standard salary level and provided a method to keep the salary level current to better effectuate Congress’s intent to exempt bona fide white collar workers from overtime protections.

On December 1, 2016, the Department of Justice on behalf of the Department of Labor filed a notice to appeal the preliminary injunction to the U.S. Circuit Court of Appeals for the Fifth Circuit.

Since 1940, the Department’s regulations have generally required each of three tests to be met for the FLSA’s executive, administrative, and professional (EAP) exemption to apply: (1) the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (“salary basis test”); (2) the amount of salary paid must meet a minimum specified amount (“salary level test”); and (3) the employee’s job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (“duties test”). The Department has always recognized that the salary level test works in tandem with the duties tests to identify bona fide EAP employees. The Department has updated the salary level requirements seven times since 1938.

The Department strongly disagrees with the decision by the court. The Department’s Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule.

New Salary Level Test Rules Blocked

A federal judge has blocked, for now, the new salary level test that was to go into effect December 1st.  Here is an excellent blog post on what exactly that could mean for employers.  The blog is by Bill Pokomy, Staci Ketay Rotman and Erin Fowler of FranczekRadelet.

In Case You Hadn’t Notice–It’s Election Time Again

The election is coming up fast.  What that means to most employees and employers is questions. Employees might ask themselves “when should I vote?”.  But they might ask their employers “can I have time off to vote?”. Allowing time off to vote is a company policy question in some cases, but other times it is a question of wage and hour law.  Does an employer have to give the employee time off to vote during working hours?  And if they do, is it paid time off?   There actually is no federal law on whether or not an employee must have time off to vote. It is left up to the states to decide.

Vote campaign

And each state has their own rules.  Some states give up to four hours, where other states don’t address the issue at all.  To assist payroll professionals on this topic I have put together a white paper on the voting time off requirements for the states.  The link is below.  The info was compiled through Thomson Reuters. It should prove helpful as it also give the citation to state law.  I have also listed the states that do not address this issue.  I hope you find it useful.

white-paper-time-off-to-vote-oct-2016

 

 

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Get Your Opinion Heard on Form W-2

The IRS is required, as part of its continuing effort to reduce paperwork (pause for giggles from Payroll Professionals) to invite the public to comment on either proposed or continuing information collections.  This is all part of the Paperwork Reduction Act of 1995.  This time around it is forms we all know and love.  The IRS is currently taking comments the following forms: W-2, W-2c, W-2A, W-2GU, W-2VI, W-3, W-3c, W-3cPR, W-3PR, and W-3SS.

They want to know how to improve the form so it is less burdensome. One area that immediately comes to mind is the lack of space for reporting the Additional Medicare Tax. In my opinion it would be better to have a separate box for the wages and the taxes. Just a reminder that box 9 is already taken as of 2017 so you can’t suggest using that box for anything.   You need to submit your comments directly to the IRS. They accept comments from any user so you don’t have to be an “accounting firm” or a “law firm”.  They want to hear from users. Written comments must be received on or before December 12, 2016 to be assured of consideration.  Written comments are directed to:

Tuawana Pinkston, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224

Requests for additional information or copies of the collection tools should be directed to Sara Covington, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet at Sara.L.Covington@irs.gov.