NATDA Magazine Sept/Oct 2016 - Page 86

These are just a sampling of the areas to review for compliance. The increase in fines under the Federal Civil Penalties Inflation Adjustment Act of 1990 and the 2015 Adjustment Act applies to many federal agencies including but not limited to: • Occupational Safety and Health Administration (OSHA) • Environmental Protection Agency (EPA) • Federal Trade Commission (FTC) • Office of Workers’ Compensation Programs • DOL’s Wage and Hour Division The Department of Labor also has a new rule that could have a major impact on your total workforce costs.The weekly salary level used to determine exempt status vs. non-exempt status will increase from $455 to $913 per week starting December 1st 2016. The DOL’s new regulations have increased the FLSA’s salary basis test to an amount greater than the level seen in California, which is currently the nation’s highest at $41,600 per year. It is possible that certain states, including California, may attempt to provide even broader and greater protections than those afforded by the DOL’s new regulations. More changes are expected and employers will need to stay informed even though the changes are not effective until December 1st. 86 With the new increase in salary levels for exempt status, many employers may be tempted to try to classify some current employees as independent contractors. Review the IRS checklist objectively before making any employee an independent contractor because the DOL Wage and Hour division continues to be extremely active enforcement across industries. With fines increasing and the rules ever more complex, every employee should perform a compliance audit on an annual basis. While it may be a headache to do this now, it’s guaranteed to be a full-blown migraine if you wait until the government auditor is in the lobby. To learn more about any of these new regulations, including how to comply while minimizing the impact upon your payroll and workforce, please contact KPA. (866) 356-1735 NATDA Magazine