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Tag: Employment Law

The High Cost of Non-Compliance

  • 70% of Employers are non-compliant with wage and hour laws, according to the Department of Labor (DOL).
  • 2 out of 3 workplace-related lawsuits that go to trial are won by the employee.
  • $10.3 Million: Civil penalties assessed against employers by the Wage &  Hour Division of the DOL in 2007.
  • $220.6 Million:  Damages paid by employers for wage and hour non compliance in 2007.
  • 11.2 Million:  The jury award against Mary Kay Cosmetics for classifying beauty “consultants” as independent contractors.
  • $650,000:  The average jury award to plaintiffs for damages in workplace-related lawsuits.
  • 88,846:  Number of violations recorded by OSHA inspectors in 2007, of which 67,176 were serious.
  • $1 million: Potential per-occurrence fine for failure to safeguard personal/non-public information against identity theft under the Gramm/Leach/Bliley safeguard Bill.

EEOC Revises Mandatory Poster

The federal Equal Employment Opportunity Commission released on Oct. 22 a revised “Equal Employment Opportunity is the Law” poster (EEOC-P/E-1 (Revised 11/09)) that incorporates the federal Americans with Disabilities Act Amendments Act of 2008, the federal Genetic Information Nondiscrimination Act of 2008 (effective Nov. 21, 2009), and updates from the federal Department of Labor. Employers that are covered by federal nondiscrimination laws, such as Title VII of the Civil Rights Act of 1964, must display this poster in conspicuous places on their premises where notices to employees and applicants typically are posted. EEOC advises employers to post the new November 2009 version of the poster or display a supplement next to a prior version of the poster issued by EEOC (September 2002) or the federal Office of Federal Contract Compliance Programs (August 2008).

By Kaiser Family Foundation

Achieving comprehensive health reform has emerged as a leading priority of the President and Congress. President Obama has outlined eight principles for health reform, seeking to address not only the 45 million people who lack health insurance, but also rising health care costs and lack of quality. In Congress, a number of comprehensive reform proposals have been announced as the debate proceeds over how to overhaul the health care system.

This interactive side-by-side compares the leading comprehensive reform proposals across a number of key characteristics and plan components. Included in this side-by-side are proposals for moving toward universal coverage that have been put forward by the President and Members of Congress. In an effort to capture the most important proposals, we have included those that have been formally introduced as legislation as well as those that have been offered as draft proposals or as policy options. It will be regularly updated to reflect changes in the proposals and to incorporate major new proposals as they are announced. This side-by-side offers a summary of the major components of these proposals; detailed descriptions of provisions relating to the Medicare and Medicaid programs can be found online.

Click here to access the comparison

Effective Nov. 6, 2009, the federal Department of Homeland Security rescinds the safe-harbor procedures for “no-match” letters. DHS is taking such action to focus its enforcement efforts on improving verification of employee authorization to work in the United States through DHS programs such as E-Verify and IMAGE. As part of that effort, DHS filed a stipulation on July 9, 2009, to withdraw its support for the safe-harbor procedures with the U.S. District Court for the Northern District of California; the court issued a preliminary injunction on Oct. 10, 2007, that blocks implementation of the procedures that were to be effective on Sept. 14, 2007 (AFL-CIO v. Napolitano, N.D. Cal., No. C 07-4472 CRB, stipulation filed 7/9/09).

From USCIS

On August 27th, U.S. Citizenship and Immigration Services (USCIS) announced that the Office of Management and Budget has extended its approval of Form I-9 (Employment Eligibility Verification) to Aug. 31, 2012. Consequently, USCIS has amended the form to reflect a new revision date of Aug. 7, 2009.

Employers may use the Form I-9 with the revision date of either Aug. 7, 2009 or Feb. 2, 2009. The revision dates are located on the bottom right-hand portion of the form.

Staff One clients should begin using the revised I-9 form for all new hires, effective immediately. The new form can be found at www.staffone.com

A business coalition, including the U.S. Chamber and SHRM, has lost in its effort to have a court overturn the federal regulation requiring federal contractors to start using the E-Verify Program for federal contracts that are entered into or modified after September 8, 2009. The U.S. District Court for the Southern District of Maryland on August 26, 2009, turned down all arguments raised by the plaintiffs and has opened the door for the rule to be applicable as planned on September 8, 2009. There is no word on whether or not the decision will be appealed. The USCIS Web site has a federal contractor page as well as a series of Q&As on the rule that explains its provisions and application.

Source http://www.irs.gov 
IRS Summertime Tax Tip 2009-20
If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.Here are the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.1. Three characteristics are used by the IRS to determine the relationship between businesses and workers: Behavioral Control, Financial Control, and the Type of Relationship. 

2. Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means. 

3. Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job. 

4. The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.

5. If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.

6. If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors. 

7. Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms. 

8. Workers can avoid higher tax bills and lost benefits if they know their proper status.

9. Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8 – Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding – with the IRS.

10. You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link.  Additional resources include IRS Publication 15-A, Employer’s Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? These publications and Form SS-8 are available on the IRS Web site or by calling the IRS at 800-829-3676 (800-TAX-FORM).

Links:

 

Does the IRS Owe You Money?

Source http://www.irs.gov

If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income. Others may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit.

  • To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
  • If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
  • There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
  • Current and prior year tax forms and instructions are available on the Forms and Publications web page of IRS.gov or by calling 800-TAX-FORM (800-829-3676).
  • Information about the Earned Income Tax Credit and how to claim it is also available on IRS.gov.

Undeliverable Refunds

Were you expecting a refund check but didn’t get it?

  • Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
  • You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
  • You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
  • If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

Source http://www.dol.gov/esa/whd/flsa/

The federal minimum wage will increase from $6.55 per hour to $7.25 per hour, effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

From HRMorining.com

To further prove that immigration reform is still on the front burner, Immigration and Customs Enforcement announced its plan to implement a nationwide audit of employer I-9s.

ICE announced that it’s drawing up Notices of Inspection to review the I-9 records of 652 employers — names not released yet. In some instances, the notices will include subpoenas for records such as

>> quarterly wage reports
>> EINs
>> business licenses
>> correspondence from Social Security Administration regarding no-match letters, and
>> payroll data.

Employers whose I-9-related records don’t pass muster with ICE will then receive Notices of Intent to Fine. Also in the announcement, ICE officials said the audit is just a “first step,” so employers probably can expect more audits and inspections.

What happens if you’re contacted for an audit? Make sure you know:

The name and contact information of company legal counsel. If the company’s legal counsel is not in-house, there should be written instructions for personnel to contact outside counsel immediately.
Who, in HR or otherwise, will be the the company’s representative for the ICE investigation or audit. You’ll want all communication with ICE channeled through that person to avoid redundancy or contradictions in information.
The names of company managers who should be informed of an ICE investigation or audit.
And keep in mind:

>> An investigator may contact you and ask for an interview, but you have the right to refer the investigator to an attorney.
>> An investigator has no right to files and records without a search warrant or subpoena.
>> Once you’re informed of an intent to investigate, take special care to secure all related records. Destruction or loss of records after notification could be seen as an attempt to destroy evidence or sabotage the investigation.

Article: http://www.hrmorning.com/feds-launch-nationwide-i-9-audit/