WageWatch Ibrief Blog

Login

Archive for June, 2017

COMPENSABLE TIME

Employers need to ensure they count all worked hours as paid hours for their non-exempt staff. For example, when an employee eats lunch at their workstation or desk and their lunch is interrupted by work such as answering phones or email, the employee is working and must be paid for that time because the employee has not been completely relieved from duty.

If the employer has a policy that is expressly and clearly communicated to the employee regarding a specific length of time for a break, any unauthorized extensions of that break time do not need to be counted as hours worked. Bona fide meal periods (typically 30 minutes or more) generally need not be compensated as work time. However, the employee must be completely relieved from duty for the purpose of eating regular meals.

The federal Fair Labor Standards Act (FLSA), doesn’t require employers to provide meal or rest breaks, though some states do require such breaks and the rules can also be different for younger workers. You can find a list of state meal and rest break laws at the Department of Labor’s website at http://www.dol.gov/whd/state/meal.htm and http://www.dol.gov/whd/state/rest.htm.

Employers that fall under the federal guidelines do not have to pay for meal or rest breaks unless:
• The employee works through or during their break
• The break lasts 20 minutes or less
• The break is interrupted by work

Some other compensable time under the federal rules can include waiting time, on-call time, attendance at meetings and training programs, travel time and performing work outside of work hours such as checking emails.

Waiting time may or may not be hours worked depending on the circumstances. If an employee needs to wait before a duty can start such as a firefighter waiting for an alarm, then the employee is ‘engaged to wait’ and this time is worked time and must be paid.

On-Call Time is paid time if the employee is required to remain on the employer’s premises. In most cases, the on-call time does not have to be paid when an employee is not required to remain on the employer’s premises. However additional requirements put on the on-call time that further limits the employee’s freedom could require the time to be compensated.

Attendance at meetings or training programs is paid time when any of the following conditions are true:
• It is during normal work hours
• It is mandatory (if the employee feels that they should or need to attend, then it is mandatory)
• It is job-related

Travel time may be paid time or not depending upon the kind of travel involved. Regular commute time to and from the work site is not paid time. When the employee works at a different work site location then any commute time that is greater than the employee’s regular commute time to their usual work site needs to be counted as paid time. Travel that is part of the regular work duties, such as travel from job site to job site during the workday, is work time and must be counted as hours worked. Overnight travel is work time and must be paid time.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives and that your pay practices are fair, equitable and non-discriminatory. We can provide your business with compensation surveys and salary reports to help you establish a budget for your merit pay program, including bonuses and incentives. Our innovative company is a leader in the collection of data for surveys and salary reports, which allows us to provide services to a wide range of industries in both the private and public sector. To learn more about our compensation surveys, salary reports, and other services, please call 480-237-6130 or contact us online.

MINIMUM WAGE UPDATE JULY 2017

Voters in four states Arizona, Colorado, Maine and Washington approved ballot measures that will raise their state minimum wage by between 43% and 60% over the next few years. Arizona, Colorado, and Maine will incrementally increase their minimum wages to $12 an hour by 2020. Washington’s will be increased incrementally to $13.50 an hour by 2020.

State increases that are effective July – December 2017 include Maryland, Minnesota, New York, Oregon, Washington DC, and USVI.

State and City minimum wage increases continue to make front page news. An unprecedented number of cities and counties have moved to adopt higher local minimum wages. In addition, cities are proposing substantially higher wage levels than in past years. Cities with minimum wage ordinances include San Francisco, San Jose, Los Angeles, Chicago, Seattle (SEA-TAC), Montgomery County and Prince Georges County MD, Santa Fe, Albuquerque, and others have already approved increases. Many other cities have ordinances that become effective in 2017 and beyond.

Follow this link to the WageWatch Minimum Wage Chart with details of federal, state and local minimum wage and pending increases: Minimum Wage Chart

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

DO YOU PAY EQUITABLY AND FAIRLY ENOUGH TO SATISFY EEOC?

You may think you are paying your employees fairly and equitably until the EEOC comes knocking at your door to perform an audit. It is commonly known that EEOC requires that all employees are treated fairly regardless of national origin, race, religion, color, sex (including pregnancy and sexual orientation), disability or genetic information. And for employers with 20 or more employees, the Age Discrimination in Employment Act requires that you treat workers over 40 the same and younger workers. To be in complete compliance with EEO regulations, none of these factors can be used when you are hiring, promoting, disciplining and laying off workers. Additionally, private employers with at least 15 employees who work for you for 20 weeks or more a year must also comply with Title VII of the Civil Rights Act and if you have a federal contract or subcontract you may be subject to EEO guidelines. Less commonly known is that fair treatment must also be extended to employees who marry someone of a different national origin, race, religion or color. What you don’t know can hurt you and therefore periodic pay equity self-audits are essential.

All forms of pay are covered by these regulations, for example; base salary, overtime pay, shift differentials, discretionary or non-discretionary bonuses, stock options, profit sharing plans, life insurance, vacation and holiday pay, travel expenses, and benefits. If an inequality in wages between men and women is found, it cannot be corrected by reducing the wages of either sex.

To properly analyze your pay practices, you need to identify all factors that influence all types of compensation. Influencing factors may include:

• Company seniority
• Length of time in position
• Service interruptions
• Skills and experience required for the job
• Education, certifications, licenses, etc. required for the job
• Performance ratings
• Pay grade or level
• Historic pay increases
• Market Location
• Employment status such as Full-time/Part-time

Pay equity analysis should be performed that includes analysis by job group or salary grade; if no formal salary structure is in place, group by jobs with similar value and worth. Also, analyze by race and by gender. Ensure all your pay decisions are well documented as well as having good document retention policies in place. Of utmost importance is that you apply your compensation practices in a consistent manner and in accordance with your policies and procedures. If audited by the EEOC, you may need to defend your pay decisions and consistency and documentation will be crucial.

To protect your organization as well as ensure fair and equitable pay to all employees, it is essential to understand and stay up to date with all the regulations, ensure policies and procedures are in place for compliance and to perform periodic compliance audits. Even if you are in compliance today, that can easily and quickly change as your organization changes and evolves. Mergers, acquisitions, and divestitures can significantly impact pay equity as well as the day-to-day business operations of hiring, terminating, promoting, transferring, and restructuring within the organization including the realignment of job duties.

At WageWatch our experienced compensation consultants can assist with your organization’s compensation needs. We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives. WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.