Is Your Business in Compliance with Overtime Regulations and Federal Employment Reporting Requirements?
First, the federal Department of Labor (DOL) recently proposed an increase to the minimum required salary for employees designated as exempt from overtime pay from $23,660 to $35,308. Although this change is likely about six months away from taking effect, it is advisable for SSA members to review their payroll structure now to plan for any changes that will be necessary when the change goes into effect. When the changes take effect, salaried employees who make less than $35,308 must either receive a salary increase or be converted to an overtime-eligible employee.
Moreover, the current and proposed federal overtime regulations allow for employees to be designated as exempt from overtime pay only if their job duties fall into one of the exemptions. Both small and large operators have been sued based on allegations that their employees were improperly designated as exempt from overtime pay.
Therefore, storage operators are strongly urged to review the OVERTIME MEMO to better understand the exemptions from overtime pay and to determine whether their employees are accurately designated as exempt from overtime pay. If the employee’s job duties do not fall into one of the exemptions, federal law requires that the employer pay the employee overtime for any hours worked in excess of 40 hours per workweek. The memo also discusses the proposed change to the minimum required salary and tips to prepare for the change.
Storage operators must keep in mind that federal law sets minimum requirements for employers. State and local employment laws often impose stricter requirements that employers must meet.
Second, the Equal Employment Opportunity Commission (EEOC) is requiring employers with 100 or more employees to provide additional compensation data by September 30, 2019.
The EEOC has for years required covered employers to submit information regarding employee sex, race, and ethnicity to assist with its enforcement efforts. During the Obama Administration, the EEOC determined that additional information was needed from employers to combat wage discrimination.
As a result, employers will now have to provide pay ranges for employees based on “box one” of W-2 forms and must report hours worked by employees. Information must be provided regarding ethnicity, gender, job category, and sex of each individual employee within the pay ranges.
To learn more, visit the SSA blog.
Daniel Bryant is the SSA’s Legal & Legislative Counsel. He advocates on behalf of the membership at the federal, state, and local level to protect and advance the interests of the industry. He received his law degree from American University, Washington College of Law and his undergraduate degree in political science from Virginia Tech. He is a member of the Virginia and the District of Columbia bars. Prior to joining the SSA, he was an associate attorney with a law firm in Washington, D.C. Daniel can be reached at firstname.lastname@example.org or at (703) 575-8000 ext. 107.