There have been numerous posts on industry forums from staffing executives and owners about the new Fair Labor Standards Act (FLSA) salary levels. The new overtime rule takes effect on December 1st of this year (https://www.dol.gov/WHD/overtime/final2016/). Many executives are still planning for this significant change to how exemption from overtime is effected by the new salary levels. Many firms will need to either change employees’ status to non-exempt, which means paying overtime for hours over 40 in workweek; or, increase exempt employees to the $47,476 annually. One post noted that that their firms’ recruiters make ~$40,000 annual in salary and are exempt from overtime pay. The post proposed changing the recruiters to salary, non-exempt with a 60-hour workweek. It asked if any other firm was taking this approach.
Are you up to date on your employment and labor laws? Since the early twentieth century, our federal and state governments have enacted extensive laws and regulations to protect employees. We see a number of employment practices that, I bet, you did not even realize violate the law. Let’s talk about three common labor issues that will put your staffing firm on the feds radar.
We recently shared a blog post about background checks and the notice requirements under the Fair Credit Reporting Act (FCRA). A recent case settlement on this topic stresses the importance of following the FCRA regulation as well as Title VII of the Civil Rights Act of 1964.
This month BMW Manufacturing Co. agreed to pay $1.6 million and offer jobs to dozens of applicants to settle a federal lawsuit brought by the US Equal Employment Opportunity Commission (EEOC) in 2013 based on the company’s previous guidelines on criminal background checks.
We’ve been getting questions lately about background checks and the laws surrounding them in terms of applicants. It is extremely important that you and and your recruiters know the law, and you have a legal process in place to prevent your staffing firm from not following the laws for pulling background reports. There are steep fines for non-compliance.