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Wages & Hours

Prepare to comply with new state minimum wage law

08/01/2006

Gov. Rendell signed legislation last month that increases Pennsylvania’s minimum wage by $2 per hour phased in over the next two years, but smaller businesses will have more time before having to pay the higher rates …

Don’t break wage promises to visa holders

08/01/2006

Employers who rely on the expertise of foreign scientists, engineers and nurses would be wise to review the processes they use to recruit and pay employees under H-1B visas. The EEOC has taken a keen interest in whether promises made to induce foreign talent into the United States are being honored. And more visa holders are hiring lawyers and suing for broken promises …

Performance-Based Pay Cuts: Legal, not advisable

08/01/2006

Q. We do yearly performance evaluations, during which we review whether employees have met the expectations we laid out during the previous review. If these expectations were not met, can we legally decrease the employee’s salary as punishment? —A.L., Iowa

Lessons from the 2006 SHRM conference: Cut hourly staff turnover by giving more frequent raises

08/01/2006

For nonexempt employees making below $15 an hour, it’s wise to set merit raise potential at twice each year, not just annually, said Sharon Koss, a compensation consultant in Seattle. Why? Hourly workers need a goal to shoot for and a reason to work hard. Waiting a year for a raise is too long.

Labor Dept. Tightens Noose on Donning-and-Doffing Cases

07/01/2006

A key 2005 U.S. Supreme Court decision made clear that manufacturers must pay workers for time spent changing in and out of safety gear, plus the time they spend walking between changing rooms and workstations. Now, the Labor Department is moving to make sure employers are complying …

Use lots of independent contractors? Heed new legal risks

07/01/2006

Same work, fewer expenses and less hassle. That’s the perceived advantage of using independent contractors. And the mantra has its appeal. But many employers have opted for freelancers only to find a new set of problems: lack of control, unreliable workers and, in some cases, litigation …

A Costly Lesson in Allowing Off-the-Clock Work

06/01/2006

Make sure supervisors understand what counts as "paid time" and remind them that they should not encourage employees to work off the clock. Example of the risk: Compass Bank of Birmingham, Ala., recently shelled out more than $1 million in unpaid overtime to 2,961 employees …

Rid handbooks of risky outdated policies

06/01/2006

If it’s been awhile since the last overhaul of your employee handbook, you may be courting danger. Establish a regular revision schedule for your handbook, updating it once a year or whenever significant statutory changes occur …

Professional exemption limited when applied to medical staff

06/01/2006

Don’t assume that medical employees with advanced training and licenses meet the FLSA’s "learned profession" exemption, which allows employers to pay lawyers and doctors by the hour and still not pay them …

Capping Salaries Won’t Violate Age-Bias Law

06/01/2006

Q. I have a question about capping employees’ salaries when they reach the top of the pay scale. I’m concerned because the only employees affected are those with many years of service and who happen to be over age 40. Have we made a legal error? Some of the affected employees are angry and have mentioned discrimination based on the residual effect of the cap. —M.M., California