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Updates & tips
Payroll Updates You Should Know
Did you Know Mandatory Sick Leave Proposal Reintroduced Legislation that would require employers with more than 15 workers to allow employees earn up to 56 hours of paid sick leave a year was reintroduced March 20. Sen. Tom Harkin (D-Iowa) and Rep. Rosa DeLauro (D-Conn.) reintroduced the Healthy Families Act, which DeLauro has introduced in every Congress since 2004. The bill would require employers to allow workers to earn one hour of paid sick leave for every 30 hours worked. Workers would be eligible to take the leave after 60 days of employment. Employers would not be required to allow employees to earn more than 56 hours of leave per year, although they would be free to set a higher limit. The measure was last introduced in 2011 underH.R. 1876. About 40 percent of private sector workers have no access to paid sick days, said Harkin, chairman of the Senate Committee on Health, Education, Labor, and Pensions.
Payroll Updates You Should Know
Did you Know Wage and Hour Insurance Investigators Ineligible for Overtime Pay, Court Says Investigators for an insurance company were properly classified as exempt employees under the Fair Labor Standards Act and were not entitled to overtime pay, a federal appeals court ruled (Foster v. Nationwide Mut. Ins. Co.,6th Cir., No. 12-3107, 3/21/13). Ninety-one investigators sued their employer under the FLSA and New York and California state laws, claiming that they were misclassified as exempt employees and denied overtime pay for work hours in excess of 40 hours a week. The investigators appealed after a federal district court ruled that the company had properly classified them as exempt under Labor Department regulations. On appeal, the special investigators claimed that they did not fall within the FLSA's administrative exemption because they were engaged in production work and their primary activity of investigating suspicious claims was not directly related to assistance with the operation of the business. Labor Department regulations note that insurance claims adjusters fall within the administrative exemption, and the district court did not err in deciding special investigators were likewise exempt, the appeals court said in affirming the lower-court ruling. The investigators' primary job duties involved sufficient discretion and independent judgment on matters significant to the business to fall within the FLSA's administrative employee exemption, the court said.