Employment law is constantly evolving and changing. As a business owner, this constant change can leave you vulnerable to non-compliance, lawsuits and a damaged workplace. ProSourceSolutions understands that running a business is hard enough, and sometimes you really just don’t have the time to keep up with evolving laws.
To avoid non-compliance, we’ve compiled a list of where employment laws are or have recently shifted as per the Department of Labour. The best way to navigate the constant change is with ProSourceSolutions. We stay updated, so you don’t have to add it to the pressures of running your business.
Here is what you may have missed recently:
Independent Contractor Misclassification
The Department of Labour recently cracked down on the classifications of an independent worker vs an employee. Where the ‘economic reality test’ is used to determine if a worker is independent or an employee. As the definitions between the two become stricter, business owners should audit and review their workforce to ensure that they aren’t accidentally misclassifying their employees and contractors.
Misclassification can result in financial penalties from back pay, unpaid overtime or tax liabilities. Where your employees or contractors have been incorrectly defined, you may owe them money or be losing your business money.
FLSA Overtime Thresholds
The Fair Labour Standards Act (FLSA) have made recent changes to the salary thresholds for exempt and non-exempt employees. What does this mean? Employees who previously qualified as salaried and, therefore, exempt from overtime pay, may now be eligible if their salary falls below the new legal guidelines.
How does this impact you as a business owner? As a business owner, you’re required to review payroll to decide if you’ll increase salaries to meet new legal guidelines or reclassify your employees as per hourly pay.
Pay Transparency
There has been an increased push for pay transparency, whereby employers are requested to state salary ranges on job descriptions. This includes any businesses operating remotely, as they’ll still need to comply with state regulations where their employees are based, despite their physical office being based elsewhere.
What does this call for?
- Standardized compensation strategies
- Updated job postings with transparent salary
This helps you avoid fines and attract top talent for your business.
Non-Compete Agreements
The Federal Trade Commission has been pushing to limit non-compete agreements for workers, although they are already outlawed in some states. The idea is to turn towards Non-Disclosure Agreements (NDA) instead to protect data, information and client lists.
Employee Accommodation and Leave
There has been discourse and development around employee accommodation and leave entitlements, where new changes are pushing for an increase in rights and protection. For example:
- Pregnant Workers Fairness Act (PWFA)
- State-level paid sick leave
- Family leave mandates
As a business owner, it is your responsibility to update your employee handbooks and leave policies to ensure that they reflect the new rights.
How To Manage Evolving Laws With ProSourceSolutions:
The truth is, employment laws are constantly changing and evolving. It’s hard to keep up. That’s where ProSourceSolutions comes in. We provide you with confidence that you’re always up to speed with the latest changes so you aren’t subject to legal action, fines and other repercussions.
How do we do that?
We operate as an employment solution. By partnering with us, we manage your HR compliance, payroll updates and risk management, so the responsibility isn’t yours, its ours. Our team of experts are knowledged in current news and developments, work with attention to details and keep your business performing with compliance when you can’t. We allow you to focus on running your business by handling the rest. With ProSourceSolutions, you can be confident that your workforce compliance is in good hands.
FAQ’s (Frequently Asked Questions)
Does ProSource Solutions help small businesses, too?
Absolutely. Every business needs help, not just the large organisations. Our support is tailored to you business and its demands, ensuring that our solutions work to meet your needs, whatever the size of your business.
Are non-compete agreements illegal?
Non-compete agreements aren’t currently illegal, however, there has been a major movement away from the agreement to NDAs, as the law is quickly changing. By moving away now, you’ll be fine if it biomes completely illegal in the future.
