Within the past year or so, there have been several dramatic developments in labor and employment laws employers must be aware of, despite their size, throughout the United States.
Companies need to gain a full understanding of these employment-related developments, which will probably have noteworthy impacts in the coming months.
Employers need to pay their staff members overtime for any and all hours worked after the first 40 hours in a workweek. However, this law does not pertain to certain exempt or salaried employees. As of December 1, 2016, the Department of Labor established new federal overtime guidelines where the salary limit for overtime qualification is now $47,476 annually, or $913 per week as opposed to the earlier of $455 per week. The new salary threshold is projected to be modified every three years as well founded on wage growth.
Some workers, including teachers, doctors and certain sales representatives, are exempt from the new regulation.
More federal audits
The Department of Labor and IRS are increasing their retirement plan assessment and enforcement programs. While fees and investment strategies are the principal focus of most agency actions, there is a multitude of other things the DOL checks into during an audit, many of which are administrative and operational functions. Issues associated with documentation, compensation, participant disclosure delivery compliance, and discrimination are a few of the numerous areas of enforcement regulators are concentrating on.
Organizations have to be careful and have put in place a solid fiduciary “best practices” system that covers the plan investment, management, and administrative functions to make sure that they are able to meet all legal and regulatory demands.
Just one anonymous phone call to the IRS or DOL is required to induce an audit. If your company hasn’t set up and carried out the required best practices, this kind of audit can wind up costing tens or even hundreds of thousands of dollars in unforeseen compliances expenses, even for a small business.
Changes to the Affordable Care Act?
The repeal, replacing or adjustment of the Affordable Care Act is anticipated to make noteworthy transformations for employee benefits down the road, but at the moment, its business as usual.
Right after his inauguration, President Trump released an executive order to decrease the economic stress of the ACA, which followed a Congressional budget resolution that directed committees to write repeal legislation. However, Congress has yet to pass any major repeal or replace legislation. Furthermore, federal agencies have not issued new guidelines. All this means the provisions of the ACA and its compliance demands remain intact.
Employers looking for ways to offer competitive, cost-effective health benefits, built to both manage long-term cost and address recruiting/retention should watch the latest headlines and new developments.
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At Quanta, we track the latest legislation and guideline changes so we can discuss them with our clients and adjust strategy accordingly. If your company is currently looking for a custom staffing solution, please contact us today.