Timesheets are so tedious. Why do I even have to do them?

As a PEO, StaffScapes depends on accurate timesheets from their clients to ensure an accurate payroll.  Timesheets should be a fundamental and important aspect of every company that has hourly employees.  The DOL (Department of Labor) requires every FLSA (Fair Labor Standards Act) covered employer to keep records for every non exempt workers, including hours worked and wages earned.  While keeping track of hours worked may be a tedious task for the employee or employer, it protects both against fraudulent hours, unpaid hours, and can even minimize the chances of a DOL audit.

The timesheet protects the employee by verifying the hours worked and guaranteeing compensation for the hours worked.  All hourly employees should sign their timesheets, verifying the hours on the timesheet are correct.  This can help prevent mistakes such as not getting the right pay, missed overtime hours, etc.

Timesheets also protect the employer.  If an employee signs a timesheet and is paid accordingly, it can help prevent DOL claims and unhappy employees. 

For example, Company X always assumes its hours for its hourly employees.  Every week, they pay their full-time employees the standard 40 hours.  Marty works at Company X and thinks this is great. He can take a 2 hour lunch or come in late and not make up his time because he knows the company isn’t keeping track, and he will always get paid for 40 hours.  Sandra also works for Company X and is not too happy.  She clocks in an average of 5 overtime hours and is never compensated.  Sandra is fed up and decides to go to the DOL and files a claim against Company X for unpaid wages. Company X has no way to prove that Sandra didn’t work those overtime hours, but they also don’t have a way to prove she did.  Because the burden of proof is on the employer to prove the employee did not work the hours claimed, without time keeping records, the DOL will usually charge the employer for the amount of unpaid wages.  If the employer is unable to prove the hours and refuses payment, it can open them up to a DOL audit. 

The best way to encourage employees to fill out timesheets is stressing that it is for their protection and never making exceptions.  For example, employees should be tracking their time every day they go to work, not just for special projects, or when they have a deadline to complete something.  Making it a known policy and everyday task makes employees more willing to comply and complete their timesheets regularly.  Saving both the company and employee time and hassle just in case something goes wrong.

By T.Redding Payroll Specialist

See Also

• Recordkeeping and Reporting
  Every employer covered by the Fair Labor Standards Act (FLSA) must keep certain records for each covered, nonexempt worker.

Trouble figuring out if an employee is nonexempt or exempt? Information that will make classifying employees a little easier

The DOL has many classifications and qualifications for an exempt employee.  The qualifications are open to interpretation and the DOL has online guides of how to correctly classify an employee. The one blanket rule for all exempt employees in all categories is that they must be compensated at a salary rate no less than $455/week.

Under certain categories, more qualifications apply.

Executive Exemption- employee must regularly supervise the work of two other full-time employees and have hiring and firing authority over other employees.

Administrative Exemption- Employee must exercise independent authority and discretion over matters of significance.

Professional Exemption- to qualify for a learned professional exemption, advanced knowledge is required. A sub-category, the creative professional exemption requires an invention, imagination, originality or talent of an artistic or creative field.

This is only a brief summary of some of the qualifications and categories of an exempt employee, for more information; please call StaffScapes at 303-466-7864.

US Department of Labor proposing to update child labor rules.

On 4-17-2007, the US Department of Labor published a proposal to update the child labor regulations of the Fair Labor Standards Act (FLSA).  The proposal includes additional bans on hazardous activities as well as prohibiting 14 and 15-year-olds from employment in youth peddling activities or door-to-door sales.  The department is requesting comments concerning this proposed rulemaking and is encouraging the public to submit their comment using the federal website www.regulations.gov.  The official DOL announcement can be found at: http://www.dol.gov/opa/media/press/esa/ESA20070550.htm

StaffScapes will keep our clients posted as these proposals become finalized.

In the summertime, the number of minors working increases. Here are some basic guidelines when it comes to hiring minors in the state of Colorado.

Minors are any person under the age of 18, unless they have received a high school diploma or received a passing scored on the GED.

1. No minors are allowed to work more than 40 hours in a week, or more than eight hours in any 24 hour period.
2. Excluding specific exceptions, no minor under the age of 14 is allowed to work in the state of Colorado
3. Not including a few exceptions, no minors under the age of 16 is allowed to work between the hours of 9:30 pm- 5:30 a.m., unless they are babysitters
4. Work permits are not required by Colorado law

These few guidelines are the basic things to remember when hiring minors. For more information on minor labor laws or requirements, exemptions, and prohibitions, please contact a StaffScapes representative at (303) 466-7864, or visit the Colorado DOL website at http://www.coworkforce.com/LAB/

U.S. DOL’s Wage and Hour Division announces record wage recovery for 2007

The U.S. Department of Labor’s Wage and Hour Division (WHD) announced its enforcement data for Fiscal Year 2007. For 2007, 341,624 workers received recovered back wages in the amount of $220,613,703 (the highest recovered amount for any year). Paul DeCamp, administrator for the Wage and Hour Division said "This record-breaking performance demonstrates the department’s commitment to protecting workers."

Since FY 2000, WHD has recouped more than $1.25 billion for nearly two million workers.

More information on agency results is available on the Wage and Hour Division Web site at www.dol.gov/esa/whd.

The employee benefits Security Administration(EBSA) has published form M-! for 2007The form is almost identical to the 2006 Form M-1 and is due March 1, 2008. As with most tax document, payments and forms that are due on a specific day if that day fall on a weekend it is due the following Monday. So the 2007 M-1 Form due on March 1, 200 a Saturday will be due on Monday march 4th. A one-time extension is available but it is due before the initial filling.

See Also

• Form M-1
  EBSA Form M-1

On April 21, 2008, OSHA officially kicked off their “youth job safety?? campaign.

U.S. Secretary of Labor Elaine L. Chao launched the fourth year of OSHA’s youth public awareness campaign at Rockefeller Plaza in New York City recently. "The Teen Summer Job Safety Campaign educates teenagers on the importance of workplace safety and health habits that will help protect them and their coworkers at work," Secretary Chao said.

OSHA will host and participate in local events and activities around the country to help keep teenagers safe and healthy on the job. Activities include career fairs, youth programs, expos, career days and training seminars. OSHA and its regional partners are striving to reduce work-related injuries among teens by teaching them on-the-job safety and integration of principles into their work tasks from this early age.

The campaign is part of OSHA’s Young Worker Initiative, which provides information and resources to teenagers, parents, educators and employers to ensure safe and rewarding work experiences for these summer employees. More information about workplace safety for teens is available at www.osha.gov/teens.

Minimum Increases July 24

Federal minimum wage will increase again on July 24, 2008 to $6.55.  This is the second of the 3 step increase put in place in 2007.  July 24, 2009 the federal minimum wage will increase again to $7.25.

In addition employers need to check the state minimum wage and compensate employees the higher of the two wages.  For example, in Colorado the state minimum wage is $7.02, so employers are required to pay at least $7.02 per hour.

For up to date posters or additional information on wage requirements contact StaffScapes, your Human Resourse Solution Center.  www.staffscapes.com or  303-466-7864.

What Do I need to know about Form I-9?

With a new Form I-9 issued, it is a good idea to review the purpose of it and the requirements as an employer.

The Form I-9 is used to help employers verify individuals who are authorized to work in the United States. A form should be completed for every employee that is hired. Employers are required to:

1.      Ensure that your employees fill out and sign Section 1 of the form when they start to work

2.      Review document(s) establishing each employee’s identity and eligibility to work

3.      Properly complete and sign Section 2 of the form

4.      Retain the Form I-9 for 3 years after the date the person begins work or 1 year after the person’s employment is terminated, whichever is later

5.      Upon request, provide Form I-9 to authorized officers of the Department of Homeland Security (DHS), the U.S. Department of Labor (DOL), or the Office of Special Counsel for Immigration Related Unfair Employment Practices (OSC) for inspection.

Source: www.uscis.gov

DOL restates requirement to pay employees for all time worked, even if it was not approved by the employer.

In a recent Department of Labor Opinion Letter concerning break and meal policies, the Department restates that any work done by the employee, regardless of approval, must be compensated by the employer. The Code of Federal Regulations 29 CFR 785.13 states:

“In all such cases it is the duty of the management to exercise its control and see that the work is not performed if it does not want it to be performed. It cannot sit back and accept the benefits without compensating for them. The mere promulgation of a rule against such work is not enough. Management has the power to enforce the rule and must make every effort to do so.”

Today the Bureau of Labor Statistics (BLS) released a report showing a decline in worker fatalities.

The rate of worker fatalities has declined by 6% from 2006 to 2007, based on a Bureau of Labor Statistics report released on August 20, 2008. The report released by BLS is using preliminary numbers due to final data for 2007 not being released until April 2009.  Based on the preliminary report, fatal injuries reduced nation wide from 5,840 fatalities to 5,488.

US Labor Secretary Elaine Chao responded to the report stating:

"This is continued evidence that the initiatives and programs to protect workers’ safety and health, designed by and implemented in this administration, are indeed working. In addition to a decline in the overall number of fatalities, the rate for 2007 declined to 3.7 fatalities per 100,000 workers. This is the lowest fatality rate in recorded OSHA history."

Auditors finding “Good Faith” for small business using a PEO.

During a recent conversation and review of a Department of Labor audit with a client I mentioned how the auditor used the term "Good Faith" during the audit. This came from her finding out that the employer was using a Professional Employer Organization (PEO). Once we as the clients PEO contacted the auditor the auditor was happy and willing to work with StaffScapes to gather and provide information pertaining to the claim. 

The audit came about after a client terminated an employee and that employee felt that he was due overtime pay. The employee was an exempt manager and was paid on a salary basis. During the audit it was determined that the employee was correctly classified and was not due any overtime pay.

I believe that the PEO relationship helped this audit go in the correct direction for our PEO client. Once the Auditor found out that the client was using a PEO she mentioned that it is good to see business making a good faith judgement in following the rules and regulations around having employees and employment. The PEO relationship allowed the client to focus on his business and marketing of that business and allowed the PEO to work on the business of employment. Because of this the employer had all the correct job descriptions, hiring and firing responsibilities laid out in the employers handbook. With that and the easily accessed time records we kept as the PEO the auditor was able to make a quick decision in this case.

Before the auditor came out to the work site we meet with our client to review the audit procedure. Our client was not happy that he had to have an audit and wanted to make that point clear to the auditor the next day. We advised him to come into the meeting with a smile and to treat the auditor as a co-worker and not to be confrontational. The auditor could have opened the audit to both of his business and not keep it focused to the claim at hand. It was decided early on that we would be at the meeting and help run the meeting with the auditor so as the correct questions would be answered and no additional information would be provided in less it was relevant to the discussion.

In the end the client had to meet with the auditor for a little over an hour. The audit went in the clients favor and no wrong doing was found. As the PEO we did suggest to the client how he can improve how he hires and fires.

Creating a good faith PEO relationship properly saved this client from having an audit go the wrong way.

See Also

• Human Resource Solution center
  The StaffScapes Advantage

The Bureau of Labor Statistics releases October 2008 employment numbers.

With unemployment on the rise and volatility in the economy, U.S. Secretary of Labor Elaine L. Chao issued a statement concerning the recent October employment situation report:

“Today’s report underscores the importance of restoring the health of our banking system and credit markets so that employers can rebound and create jobs. It will take time for the impact of the economic rescue package to be felt on the broader economy and the labor market.”

As posted by the Bureau of Labor Statistics on November 7, 2008, employment fell by 240,000 jobs.  This equates to an increase in the unemployment rate to 6.5 percent. It is reported that in October the job losses continued in manufacturing, construction and service provider industries. For more detail information view the October Employment Situation release at: http://www.bls.gov/news.release/empsit.toc.htm.

A revised FMLA poster is now available.

A revised Family and Medical Leave Act (FMLA) poster, reflecting the recently published final rule, is now available for viewing and downloading. Every employer covered by the FMLA is required to post and keep posted on its premises, in conspicuous places where employees are employed, a notice explaining the Act’s provisions. The revision to the FMLA and the new poster becomes effective on January 16, 2009.

The poster can be downloaded at: http://www.dol.gov/esa/whd/fmla/finalrule/FMLAPoster.pdf

Additional information and materials can be viewed at the DOL’s FMLA website at: http://www.dol.gov/esa/whd/fmla/finalrule.htm

Recent DOL Opinion Letter explains compensability of on call time.

A recent Opinion Letter from the US Department of Labor addresses on call time and compensability. The DOL Opinion Letters are specific to the original requestor’s situation and are not to be used as blanket policies.  However, additional details regarding FLSA interpretation can be garnered from these letters.

Opinion Letter, FLSA2008-14NA, explains that compensability of on call time is “decided in the context of each case”.  Therefore, the DOL is saying that each case, or each policy regarding on call time, must be looked at on its own merits and design, and a blanket statement can not be given to cover every given policy design.

Compensability arises when on call conditions restrict the employee from using this time for personal uses. This is the major principle that they look at when determining compensability. The DOL does go on to give several factors that they use to determine if the on call time restricts the employee from personal use. These factors include:

·        is there excessive geographical limitations on the employee’s movement

·        is the frequency of calls received unduly restrictive

·        is the fixed time limit for response too impeding

·        can the employee trade on call responsibilities

When determining compensability of on call time all of the factors of your on call policy should be examined.  Employers need to be very careful examining these policies and should get professional assistance or ask your Professional Employer Organization (PEO) when making these determinations.  Paying back wages including overtime hours, especially when not expecting these additional costs, can significantly hurt a company.

See Also

• DOL Opinion Letter FLSA20008-14NA
  DOL Opinion Letter FLSA20008-14NA

If calling the unemployment office to report an unemployment claim be patient it could take hours.

While speaking with a friend the other night that was laid off from EDS and who is now just recently eligible to collect unemployment, told me about a simple online mistake that took hours to fix.  Each week the Colorado Department of Labor & Employments unemployment division requires people to report jobs that they are interviewing for or have applied for. During this process she accidentally entered a wrong code and hit next on her screen while working on the Colorado online website. This caused her claim to be denied or cancelled for that week. Each week the DOL sends out benefit checks to those collecting unemployment.  Once she realized her mistake she tried for over an hour to correct it online with no success. After hitting the redial button on the phone for an hour she finally was able to talk to someone. Unfortunately it took another hour before she was able to find a person with the correct authorization to access her account and correct her mistake. 

If filling for unemployment in Colorado be patient and if doing it on a phone line make sure you are not running up your minutes on your cell phone. To file a claim and to learn more about unemployment benefits go to www.coworkforce.com.

See Also

• Colorado workforce
  Labor & Employment home page

The Sectretary of Labor due to release model notification regarding the COBRA subsidy program.

The Sectretary of Labor must release model notices for the subsidized COBRA program no later than thirty (30) days after the date of enactment (2/17/09) of the American Recovery and Reinvestment Act of 2009. This week will culminate the 30 days, therefore the model notification should be released by the 19th of March. As a reminder, employers have sixty (60) days from enactment of the Stimulus bill to send out updated notices to any assistance eligible individuals.

StaffScapes will release additional information once we have had time to review the model notices being released from DOL this week. 

The US DOL has released, on their website, the model notices for COBRA subsidyThe Department of Labor has just released their model notices for the COBRA subsidy available under the American Recovery and Reinvestment Act (ARRA). There are two formats of the General Notice, one full and the other abbreviated. Also drafted by the DOL and on their webpage are an alternative notice for insurance issuers and a notice in connection with the extended election period. A link to the DOL’s website with the model notices is listed below.  Staffscapes will have more information about the COBRA subsidy notices after we have had time to review the models issued by the DOL. 

See Also

• DOL COBRA Model Notices
  DOL COBRA Model Notices

Congress and US DOL using H1N1 scare to push for mandatory paid sick leave.

Look out employers, the Deputy Secretary of Labor, Seth Harris, gave a testimony on November 10^th, 2009, to a Senate Subcommittee pushing for mandatory paid sick leave. Using the national concern over the H1N1 flu, the Deputy Secretary explained the US DOL strongly supports the Healthy Families Act of 2009. Highlights of the Healthy Families Act include:

·        Paid time of to care for yourself, child, spouse, parent, or any other individual related by blood of affinity;  or absence resulting from domestic violence, sexual assault or stalking

·        employees accrue 1 hour of paid sick leave for each 30 worked, no exceptions for part time workers

·        mandatory carry over, however a cap of 56 hours of sick leave accrued at any given time may be used

·        physician certification can only be requested if leave is greater than 3 consecutive days, employees have 30 days to provide certification

·        severe penalties will be accessed for discharging, discriminating or using the taking of paid sick time as a negative factor in employment action (such as hiring, promoting or disciplinary action)

See Also

• Full testimony of Deputy Secretary Harris
  Remarks Prepared for Delivery by U.S. Secretary of Labor Hilda L. Solis - Testimony of Deputy Secretary of Labor Seth Harris’ before the Subcommittee on Children and Families Committee on Health, Education, Labor and Pensions, United States Senate, Washington, DC, November 10, 2009

Summer is here!  With no papers to write or tests to take, many high school and college students are hanging out at the pool enjoying their much anticipated time off.  But many others are looking to earn some extra money and a chance to improve their skills.  For many employers, this is a great opportunity to get caught up on tasks without the need to hire an employee long-term.  Due to the planned length of employment and the demographic involved, some employers easily confuse these jobs believing that the on the job training students receive qualifies as an internship and may offer the position as unpaid.  The Fair Labor Standards Act (FLSA) has specific requirements you need to know when evaluating the type of position you have available.  To qualify for an unpaid internship, the following criteria must be met according to the Department of Labor:

1.    The internship must be similar to the training the student would receive in an educational environment.
2.    The experience will benefit the intern.
3.    The intern does not take the place of another employee and is supervised by existing staff.
4.    The employer receives no immediate advantage from employing the intern and may in fact have their operations interrupted due to the training involved. Typically, more supervision and training is required for the intern compared to other employees. 
5.    The intern is not guaranteed a job at the end of the internship period.
6.    The employer and the intern understand that the intern is not eligible for wages for the time spent in the internship.

If all of the above criteria are not met, chances are the position would be viewed as an employment relationship and would be subject to wage and hour laws.  For more information, please review this Fact Sheet.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com