Home » Our Blog » Back to the Drawing Board: The DOL’s Overtime Overhaul Request for Information
back to the top
DOL's Request for Information

Back to the Drawing Board: The DOL’s Overtime Overhaul Request for Information

Share on Facebook Share on Twitter Share on LinkedIn Share on Google Plus Share through email Print it More share options

The U. S. Department of Labor is taking comments on how it should move forward with overtime overhaul

Since the newest regulations to the overtime law were found invalid, employers are subject to the previous version of Fair Labor Standards Act. However, the roller coaster has not ended.

On July 26, 2017, the DOL published a Request for Information in the Federal Register, indicating it intends to attempt an overtime overhaul. Comments to the Request may be submitted until September 25, 2017. The request asks the public for a response to 11 specific questions.

We can use the questions proposed to help uncover some of the possible changes the DOL is considering. Below are five of the more telling questions and what we can infer from them.

1. Should we just update the 2004 salary level based on inflation?

The Court suggested it would be permissible if the DOL adjusted the 2004 salary level for inflation during questioning at the preliminary injunction hearing. In fact, the Court stated, “[I]f [the salary level] had been just adjusted for inflation – the 2004 figure – we wouldn’t be here today … because [the salary level] would still be operating more the way it has … as more of a floor.” This question indicates the DOL may be referencing inflation because they believe it would be acceptable with the courts

2. Should the regulations contain multiple standard salary levels? If so, how should these levels be set: by size of employer, census region, census division, state, metropolitan statistical area or some other method?

The DOL attempts to make a more malleable test here, which, of course, would serve to be more sensitive to changing demographics. However, a change like this would clearly make compliance tough for employers.

3. Should the DOL set different standard salary levels for the executive, administrative and professional exemptions as it did prior to 2004 and, if so, should there be a lower salary for executive and administrative employees as was done from 1963 until the 2004 rulemaking?

Much like the question above about multiple salary levels, this question would likely provide a more effective test. However, would it come at the cost of convoluting the analysis for employers?

4. Would a test for exemption that relies solely on the duties performed by the employee without regard to the amount of salary paid by the employer be preferable to the current standard test?

This question suggests the DOL seems to be accepting the court’s analysis that duties are more important than salary.

5. The 2016 Final Rule, for the first time, permitted non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard salary level. Is this an appropriate limit or should the regulations feature a different percentage cap? Is the amount of the standard salary level relevant in determining whether and to what extent such bonus payments should be credited?

This question indicates the DOL may propose a version of regulations that still allows for bonuses to apply to the salary level.

Given the nature of the questions found in the Request for Information it’s clear the DOL has gone back to the drawing board and may propose something completely different from both the recent failed regulations as well as the 2004 revisions.

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 problems.


Zachary Gregory

by Zachary Gregory


Author Bio: As a compliance attorney for Paycom, Zach Gregory monitors legal and regulatory changes at the state and federal levels, focusing on payroll and garnishment laws, to ensure the Paycom system is updated accordingly. He previously worked at a law firm as a tax attorney. He holds a bachelor’s degree from Oklahoma Christian University and a J.D. from Oklahoma City University. Outside of work, Gregory enjoys playing in the backyard with his two boys, and finding new restaurants with his wife and high school sweetheart, Kellyn.

Sexual Harassment Policy

3 Answers to Questions About Sexual Harassment Policy

Share on Facebook Share on Twitter Share on LinkedIn Share on Google Plus Share through email Print it More share options

In October 2017, in light of the #MeToo movement, the HR Break Room podcast devoted an episode to workplace sexual harassment policies. Since that conversation, we continued to receive questions on the subject, not only from our listeners, but Paycom blog readers and webinar attendees.

To answer those questions and examine the topic further, HR Break Room assembled a panel of leaders from Paycom’s legal and HR departments for a follow-up episode: Matthew Paque, vice president of legal and compliance; Tiffany Gamblin, HR manager; and Jason Hines, compliance attorney.

That episode, “Experts Answer: Your Sexual Harassment Policy Questions,” tackles 10 such inquiries. Here are takeaways from three of them.

When it comes to taking action on a complaint of sexual harassment, how can HR protect the company and the reporting individual?

It is the duty of HR to write a policy that protects both. Equally important is documenting that policy and consistently applying it to each report; deviations should not exist. This approach gives employees the assurance that, if sexual harassment claims are brought to light, a procedure and a mechanism are in place to handle these unfortunate scenarios.

Once you have a documented process, it is critical to communicate that procedure to employees year-round so they know how to utilize it. Are they supposed to report to a specific HR contact? Do you have a help line they can call? Is a website easily accessible detailing the steps?

How can you ensure an anonymous report is not just someone griping about another employee and is unrelated to harassment?

If your investigative process is unbiased, fair and consistent, it should be able to determine whether a complaint is fraudulent. False claims aren’t common, and your process should be prepared to weed them out. Make sure all investigation details have been reviewed thoroughly before making a decision, including whether to pursue a new direction.

For a sound investigation, never assume any claim to be frivolous; do your due diligence. In case a claim is found to be untrue, you may want to prepare a disciplinary action for the employee who made the false accusation.

How should an organization handle a harassment claim that involves people outside the company?

Listen to the panel discuss anonymous helplines and how to implement them within your organization, in the HR Break Room episode Experts Answer: Your Sexual Harassment Policy Questions.

The best practice for tackling such reports is to treat them as you would any other complaint. It may get tricky if the accused is a client or customer of your business, but strategies do exist. For one, you can report the occurrence to the client’s HR manager, and allow that entity to investigate on your behalf.

It’s also important to ensure an environment that separates the harasser from your employee, because when interaction between the two parties stops, the chances of another incident are greatly minimized. If your client is unwilling to discipline the harasser under its employ, you may wish to consider termination of your business relationship.

Regardless, your employee’s safety comes first. You do not want to give him or her the perception that your sexual harassment policy does not apply to high-paying clients. If your employee perceives he or she is being forced to deal with inappropriate behavior from a customer, that can threaten your organization’s culture and reputation. Your policy should reassure employees they will be safe and that the organization will take steps to remedy complaints.

 Listen to the panel discuss seven more listener questions on sexual harassment policy, in the HR Break Room episode Experts Answer: Your Sexual Harassment Policy Questions.

Tags: ,
Posted in Blog, Featured

caleb.masters

by Caleb Masters


Author Bio: Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

Charge of discrimination

What to Do When a Charge of Discrimination Is Made

Share on Facebook Share on Twitter Share on LinkedIn Share on Google Plus Share through email Print it More share options

According to the Equal Employment Opportunity Commission (EEOC), more than 84,000 workplace discrimination charges were filed in 2017. Because these charges can escalate into costly lawsuits, employers must understand what to do if charges are made against them to avoid unnecessary mistakes that could cost time and money. Here is a look at what happens – and what to do – when a charge of discrimination is made against your organization.

Employer notice

When a charge is filed against your organization, the EEOC will generally notify you within 10 days. The notification will typically include the name and contact information for the investigator assigned to the case, steps to take if you are interested in mediating the charge (see discussion below) as well as a URL for you to log into the EEOC’s Respondent Portal to view and download the charge. This portal also is used to upload your organization’s position statement and responses to any requests for information during the investigation process.

The investigation process

The EEOC generally has a broad scope of authority in conducting investigations of alleged or suspected discriminatory conduct. During this process, your organization will be asked to provide certain information, which may include:

  • Position statement – This is your organization’s statement of its position in regard to the charges. In other words, it is your opportunity to tell your side of the story. Your organization should take advantage of this opportunity and include applicable policies and references to any issues and documents that would render the charges invalid.
  • Responses to Requests for Information (RFI) – These requests may be for copies of personnel policies, personnel files and other relevant information. Failure to respond may result in an administrative subpoena issued and served to your organization.
  • Employee contact information for witness interviews – The employer has the right to have a representative attend interviews of management personnel but the EEOC can generally interview non-management employees outside the employer’s presence.

If you have information that would show that the allegations are false or that your organization did not violate the law, provide this information to the investigator. You may also be asked to permit an on-site visit by the investigator.

After the investigation

Once its investigation is complete, the EEOC will make a determination on the merits of the charge(s). Most often, it will choose not to file a lawsuit and instead issue either a Dismissal and Notice of Rights or a Letter of Determination.

The Dismissal and Notice of Rights indicates its investigation was unable to conclude that the information obtained established unlawful discrimination; however, the employee who made the complaint is free to file a lawsuit in court.

If the EEOC determines discrimination may have occurred, it will send a Letter of Determination and attempt to have the parties settle the matter outside of court. If the parties do not reach a settlement agreement, the EEOC will send the employee a Right to Sue letter, allowing him or her to bring suit in federal court. In rare cases, the EEOC may file a lawsuit on behalf of the employee.

3 Ways to Resolve Charges

In general, three methods exist for successfully resolving charges of discrimination outside of litigation: mediation, settlement and conciliation.

1. Mediation

Mediation is an informal process in which a trained mediator assists the parties to try and reach a negotiated resolution. It generally is initiated before an investigation and is completely voluntary.

This process allows the parties to resolve the matters in dispute in a way that is mutually satisfactory. It is also much faster than the traditional investigation process. The main benefit for mediating is that it allows the parties an opportunity to reach a resolution before incurring the time and expense involved in the traditional investigatory process.

If mediation is successful, the charges filed with the EEOC will be closed. If unsuccessful, the charges will be referred for investigation.

2. Settlement

Settlement of the charges may take place at any time during the investigation. Similar to mediation, settlement is completely voluntary, and the goal is to reach an agreement that satisfies both parties. Settling charges generally occurs with no admission of liability, but if a settlement is reached, those charges are dismissed.

3. Conciliation

The EEOC is required by Title VII to attempt to resolve findings of discrimination through conciliation. However, this process is triggered only after the parties have been notified that, through evidence gathered in the investigation, there was reasonable cause to believe that discrimination occurred. This process is intended to help the employer and the EEOC negotiate how the employer can change its policies and practices to comply with the laws, and also to determine any amount of damages the employer should pay to the employee.

In some instances, the employer can be at a disadvantage during this process because it may not be entirely aware of the evidentiary basis for the EEOC’s determination that discrimination has occurred. Unlike in litigation, there are no disclosure obligations.

If the conciliation process fails, the EEOC then decides whether to sue the employer in court.

Your organization should not ignore or fail to respond to charges of discrimination. Employers often conduct their own investigation to determine the claim’s merits. In many cases, employers opt to resolve charges early in the process through mediation or settlement to avoid costly litigation. However, you may choose not to engage in these types of voluntary resolutions if you feel the claims have no merit.

To learn more about preventing workplace discrimination, see our related blog posts on “Diversity Training in the Workplace: Helping Managers Understand ‘Cultural Fit’” and “2 Questions You Never Should Ask a Job Candidate … and What You Should Ask Instead.”

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 problems.

Posted in Blog, Featured

Kristin Birchell

by Kristin Birchell


Author Bio: As a compliance attorney for Paycom, Kristin Birchell monitors legal and regulatory changes at the state and federal level, with a focus on labor and employment laws, to ensure the Paycom system is updated accordingly. Previously, she served as an attorney at the Oklahoma City law firm Derryberry & Naifeh LLP. Birchell earned a bachelor’s degree and MBA from the University of Central Missouri, and her Juris Doctor from the Oklahoma City University School of Law. Outside of work, she enjoys cooking, hiking, going to the movies and spending time with her husband.

workplace violence

An Employer’s First Steps to Avoiding Workplace Violence

Share on Facebook Share on Twitter Share on LinkedIn Share on Google Plus Share through email Print it More share options

In the wake of workplace threats nationwide, businesses are taking a closer look at their own threat and crisis management plans and policies. HR is an essential component in planning for workplace emergencies, from the conceptual stages to employee training.

Larry Barton, the highest-rated instructor at the FBI National Academy and U.S. Marshals Service, recently joined the HR Break Room podcast to discuss how organizations can better prepare themselves. Here are a few highlights from the episode’s conversation. While all of us get upset at work from time to time, not everyone exhibits warning signs – such as a manifesto or incendiary posts on social media – that indicate a future threat.

You will want to look out for behavior that suggests potential for risk, especially emerging in clusters, such as:

  • anger
  • constant distress
  • “no call, no show” absences
  • a rapid change in appearance

All employees should be encouraged that if they see something, they should say something to the leaders who can assist. Barton further encouraged the parties behind the initial reports to follow up and ensure that correct departments follow through, HR included.

Listen to the full HR Break Room conversation with Larry Barton in the episode “Safety First: Proactive Crisis Management”

Training and communication are essential

 Training is particularly vital for managers and supervisors. Holding half- or full-day training sessions that include case studies, multiple threat scenarios and role-playing can be particularly effective in preparing your organization for the worst.

Clearly communicating and empathizing with employees is a small, but important step in helping minimize a workplace crisis. In the HR Break Room discussion, Barton noted that he frequently hears participants say, “Wow, now I understand why words matter.”

“We can soften our words,” Barton said. For example, instead of ‘termination’ use ‘separation.’ “When former employees have to take home bad news to their family, they would use the word ‘termination,’ as if it was something they could not come back from.”

No matter the circumstance, always treat former employees with the same respect you did when they started the onboarding process. Avoid being clinical, and practice ways to deliver upsetting news empathetically. Softening upsetting language and respecting employees minimizes the likelihood of disgruntlement.

Ensure your physical facility is secure

 A secure facility is critical to protecting your people, and helps them feel comfortable at work. Security cameras, badge control and multi-tenant buildings patrolled by skilled officers are all staples of sound workplace security – this is true for all buildings, including high-rises, shopping malls and even underground facilities. It’s important that all employees and security officers have a sense of intuition that keeps them alert and aware. If security is in-house, make sure to include physical fitness tests and psychological exams in your screening and training processes.

If you have no security at your building (which is common in rented space), ask the landlord what he or she is doing to meet today’s higher standards for safety.

Creating a secure work environment and preventing a workplace crisis may seem like a daunting task, but by taking the first steps Barton mentions in the HR Break Room episode “Safety First: Proactive Crisis Management,” you can become better equipped to mitigate risk.

Tags: ,
Posted in Blog, Featured

caleb.masters

by Caleb Masters


Author Bio: Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

You might want to know our privacy policy has changed. View Policy

Okay, got it!
X

Contact Us

  • Are you a current Paycom Client?

    Yes

    No

    • Talent Acquisition

    • Time & Labor Management

    • Payroll

    • Talent Management

    • HR Management

  • Subscribe me to Paycom's newsletter.

*Required

We promise never to sell, rent or share your personal information with a third party unless required by law. By submitting this form, you accept our Terms of Use and Privacy Policy.