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Overtime Expansion

U.S. Department of Labor Moves to Finalize Overtime Expansion

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On March 14, 2016 the U.S. Department of Labor submitted its overtime rule to the White House Office of Management and Budget (OMB) for review. Once finalized, the rule is expected to expand overtime protections to millions of American workers in 2016.

The final rule could be made public as early as April, based on the OMB’s typical review process, and would take effect within 60 days of publication in the Federal Register. This potential time frame would give employers little time to comply with the new wage-and-hour standards.

Time Is Ticking for Employers

Overtime expansion is expected to have a major operational, administrative and cultural impact on many businesses and could cost employers more than $5.2 billion. Service industries like restaurants, retail and hospitality may be hit especially hard.

It’s important for companies to start evaluating their workforce now to determine the best options for controlling costs and managing the administrative burden under the new rule.

Count the Cost

A good way to get started is with Paycom’s FREE, overtime expansion calculator which allows you to quickly calculate your potential overtime costs. We even help you find the point where it may make more fiscal sense to actually raise salaries, based on the new, proposed-income threshold for exempt employees.

Stay tuned for more important information about managing overtime expansion right here on the Paycom Blog.


Brie Hobbs

by Brie Hobbs


Author Bio: For more than eight years, Brie has been writing to both job seekers and business leaders about human resources and the challenges facing today’s workforce. Her articles have appeared on award-winning career and HR blogs, as well as on the International Franchise Association’s SmartBrief and other notable publications. With a background in franchising, Brie focuses on helping franchise organizations understand how Paycom’s human capital management technology can benefit their business.

Paid Family Leave Program

New York to Implement Nation’s Most Comprehensive Paid Family Leave Program

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New York to Implement Nation’s Most Comprehensive Paid Family Leave Program

Private employers in the state of New York will soon be required to provide up to 12 weeks of paid family leave. The new law will apply to all employees of employers covered by the state’s worker’s compensation law and will be completely employee-funded via payroll deductions. Public employers are permitted to participate by opting-in to the program.

Growing Trend

These types of “paid family leave” laws continue to gain momentum. Three other states (California, New Jersey and Rhode Island) provide workers with partial pay during parental leave. Some cities have even joined in on the trend. San Francisco passed a paid family leave program in 2016, and Washington, D.C. also recently approved one that will take effect in 2020.

New York lawmakers championed this law as a pivotal step in the pursuit of equality and dignity in both the workplace and home. “New York enacted the strongest paid family leave plan in the nation to ensure that no one has to choose between losing a job and missing the birth of a child, or being able to spend time with a loved one in their final days,” said New York Governor, Andrew Cuomo, upon passage of the law.

Employee Eligibility

The New York legislation originally passed in April of 2016, but the obligations for employers and employees were announced just recently.

Beginning January 1, 2018, the state’s paid family leave program will provide employees with employment protection and partial wage replacement if they spend time away from work to:

  1. bond with a child (including fostering or adopting)
  2. help relieve family pressures when someone is called to active military service
  3. care for a close relative with a serious health condition

A “close relative” as defined under the law includes a spouse, domestic partner, child, parent (including in-law), grandparent and grandchild. An employee must be employed full-time for 26 weeks, or part-time for 175 days to be eligible for a paid family leave benefit. An employer may permit an employee to use vacation or sick leave while on leave, but may not require its use.

 Employer Impact

The complete 12-week benefit will not be implemented fully until 2021. The amount of paid family leave and the percentage of the employee’s salary paid will be realized over four years:

 

Year Weeks
Available
Max % of
Employee Salary
Cap % of State
Average Weekly Wage
1/1/2018 8 50% 50%
1/1/2019 10 55% 55%
1/1/2020 10 60% 60%
1/1/2021 12 67% 67%

 

Employers will be required to purchase a paid family leave insurance policy or self-insure. The employee will pay the premiums of the policy via payroll deductions, beginning July 1, 2017.

For more information about the phase-in process, calculation of the Average Weekly Wage, or general information on the program, visit the New York paid family leave website.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues problems.

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Posted in Blog, Employment Law, Featured, Pre-Employment, Talent Acquisition, Talent Management

Jason Hines

by Jason Hines


Author Bio: Jason Hines is a Paycom compliance attorney. With more than five years’ experience in the legal field, he monitors developments in human resource laws, rules and regulations to ensure any changes are promptly updated in Paycom’s system for our clients. Previously, he was an attorney at the Oklahoma City law firm Elias, Books, Brown & Nelson. Hines earned a bachelor’s degree from the University of Central Oklahoma and his juris doctor degree from the Oklahoma City University School of Law, where he graduated cum laude. A fan of the Oklahoma City Thunder, Hines also enjoys exploring the great outdoors with his wife and daughter.

Oregon State Retirement Plan

Oregon Creates Landmark State Retirement Plan

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Oregon Creates Landmark State Retirement Plan

This year, the state of Oregon will launch a landmark, statewide retirement program: OregonSaves. This program requires private employers to automatically enroll employees in retirement accounts. The goal is to benefit almost 1 million Oregonians who currently lack access to employer-sponsored retirement programs.

OregonSaves has been in the works for the last few years and will officially kick off in July 2017 with a volunteer pilot phase. Full program implementation is scheduled to begin in November 2017, starting with employers who have 100 or more employees.

What This Means for Oregon Employers

Employers that do not offer retirement plans are required to inform employees about the program and automatically enroll them. Additionally, they will have to:

  • Provide employee data to the state to allow the state to set up accounts for the employee.
  • Setup payroll deductions for employees participating in OregonSaves.
  • Track employee decisions as to contribution levels or to opt out.

Employers who already provide retirement options do not have to offer OregonSaves. Those employers will complete a simple certification process.

What’s Next?

Oregon is the first state to offer a program of this nature. California and Illinois likely will launch similar programs by 2019. It is important to note, however, that there are currently bills pending in the federal legislature to overturn rules that make it easier for states to create such plans. If these bills pass, state programs could be stalled. Oregon does plan to move forward with its retirement plan regardless of how the legislature acts, so employers should be prepared. Paycom’s Benefits Administration Suite can help employers accurately track the data they will be required to transmit to OregonSaves.

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Posted in Blog, Compliance, Employment Law, Featured

Alyssa Looney

by Alyssa Looney


Author Bio: As a compliance attorney for Paycom, Alyssa Looney monitors laws, rules and regulations to ensure that the Paycom software is up to date, specifically regarding immigration law and state law developments in the Western United States. She holds a JD and an MBA from Pennsylvania State University, as well as a bachelor’s degree from Texas A&M University. Outside of work, Alyssa enjoys cooking, being active, playing with her puppy and exploring Oklahoma City.

One Big Interview Mistake to Avoid

How to Avoid This Big Interview Mistake

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How Fast-Growing Companies Can Avoid This Big Interview Mistake

When it comes to finding new talent, making sure they fit in with a company’s culture and core values has become an important part of the interview process. Why? Because your culture is a reflection of the character, personality, strengths and weaknesses of your people.

Finding people who are fully committed and engaged with your vision and ideals is critical to both your company’s success and your employees’ job fulfillment.

Peer interviews are a common hiring practice for many businesses because teams can determine whether a candidate is right for the position and the culture. However, there are some pitfalls to be aware of, especially for fast-growing companies that need to hire quickly.

Online shoe retailer Zappos compares its hiring process to courting: Before making any hiring decision, multiple Zappos employees will meet with a candidate to make sure he or she is a good fit.

The Issue

The biggest hazard of peer interviews is that many front-line employees don’t actually know what they can and cannot ask in such a setting. If they ask questions related to things like a candidate’s age, gender, marital or family status, religion, disability or medical history, race or origin, it could open you up to discrimination claims in your hiring process.

Sounds like a no-brainer, but when’s the last time you checked to make sure your company’s peer interviewers have all been formally trained?

It is easy to see how someone could ask the wrong question, when you consider that many of today’s go-to social conversation starters include such seemingly innocuous inquiries as, “Are you married?” or “Do you have kids?” or “Where are you from?”

Even hiring managers have trouble. In a 2015 survey released by CareerBuilder, 20 percent of hiring managers said they have asked an illegal question in an interview.

So how do companies minimize their risk? They start with these two fundamental steps:

  1. Standardize Your Interview Process

In other areas of your business, you put procedures and processes in place to reduce risk and guarantee consistent, quality results. Structuring your interview process can help you do the same for your hiring. Standardizing interview times and questions for everything from phone interviews to panel or final peer interviews can help create a positive, unbiased candidate experience for your applicants and keep you from making a wrong hire.

  1. Train Managers and Employees Alike

It’s also important to make sure that any hiring manager or peer who interviews an applicant for your company is consistently trained on:

  • Hiring practices and criteria
  • Areas of liability for both federal and state regulations
  • Reducing unconscious bias

If you don’t know who has been trained and who has not, learning management solutions can help you quickly deliver and track course completions so you know who should (and should not) sit in on interviews for your company.

Hiring well is so important to your company, but the responsibilities that come with it often don’t just lie with your recruiters and your hiring managers. Helping all of your employees understand how important it is and the role that they play in it can improve your talent acquisition while limiting your liability.

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Posted in Blog, Employment Law, Featured, Leadership, Pre-Employment

Tiffany McGowen

by Tiffany McGowen


Author Bio: Tiffany McGowen, Paycom’s national director of recruiting, is responsible for the oversight of staffing corporate headquarters and growing the nationwide sales force. She has more than 10 years of recruiting experience, ranging from executive-level talent to interns, with a specialty in sales professionals. Passionate about motivation, McGowen is constantly on a coast-to-coast hunt for the best and brightest talent in every market.

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