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| Employee Rules and Regulations | |
- Child Labor Restrictions
The FLSA (Fair labor Standards Act of
1938) places restriction on the type of work a child can do and the
hours they can work. Some of the restrictions are: Persons under the
age of 14 are generally prohibited from working unless they are
working for their parents. Minors 14 and 15 can work 3 hours per day
but only 18 hours per week but they cannot work during school hours.
When school is not in session, they can work between the hours of 7
a.m. and 7 p.m. up to 8 hours a day and 40 hours a week. Minors under
18 may not work in a job that has been determined to be hazardous by
the Wage and Hour Division.
All states have child labor laws.
Some states are more restrictive in their child labor laws. Employers
are required to adhere to the more restrictive state laws. Civil and
criminal penalties can be the result of violations of the FLSA.
Employers can be fined or jailed for each violation of the FLSA.
For more information on Child Labor
Laws, go to the Department of Labor?s website.
U.S. DOL - Child Labor
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- COBRA
(Consolidated Omnibus Budget Reconciliation Act of 1986
With the passage of the Consolidated Omnibus Budget Reconciliation
Act (COBRA) in 1986, terminated employees or their families who may
lose coverage because of termination of employment, death, divorce, or
other life events may be able to continue the coverage under the
employer's group health plan for themselves and their families for
limited periods of time.
The law generally covers group health plans maintained by employers
with 20 or more employees in the prior year. It applies to plans in
the private sector and those sponsored by state and local governments.
The law does not, however, apply to plans sponsored by the Federal
government and certain church-related organizations.
Under COBRA, a group health plan ordinarily is defined as a plan
that provides medical benefits for the employer's own employees and
their dependents through insurance or another mechanism such as a
trust, health maintenance organization, self-funded pay-as-you-go
basis, reimbursement or combination of these. Medical benefits
provided under the terms of the plan and available to COBRA
beneficiaries may include:
- Inpatient and outpatient hospital care
- Physician care
- Surgery and other major medical benefits
- Prescription drugs
- Any other medical benefits, such as dental and vision care
Life insurance is not covered under COBRA. For more information on COBRA go to the Department of Health and Human
Services website
http://www.os.dhhs.gov/
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- Employee vs. Independent Contractor
In 1987, the IRS developed a list for its auditors to use to
determine if an individual was an employee or an independent
contractor. The measure of control an employer has over its workers is
the determining factor. If the employer controls the results of the
work and not the day to day performance of the task, then the
individual is probably an independent contractor. If one answers yes
to any of the questions below, the individual may be an employee and
not an independent contractor.
- Does the employer give specific instructions as to how the job or
service is to be completed?
- Is training required for the individual to complete the job or
service in a specified manner?
- Is the completion of the job or service necessary to ensure the
continuation of the business?
- Is the individual required to perform the job or service
personally?
- Is the individual hired, supervised, and paid by the employer?
- Is there a continuing relationship between the individual and the
employer?
- Is the individual required to perform the job or service within
specified hours?
- Is the individual required to work only for the employer?
- Is the individual required to perform the job or service on the
employer's premises, even though the work could be performed
elsewhere?
- Is the individual required to adhere to the employer schedule?
- Does the employer require regular written or oral reports?
- Is the individual paid by the hour, week, or month instead of by
job or straight commission?
- Does the individual pay their own business and travel expenses?
- Does the individual furnish their own tools and materials?
- Does the individual have any investment such as an office or
machinery that is required completing the job or service?
- Can the individual realize a profit or loss based on the job or
service performed?
- Does the individual work for more than one person at a time?
- Are the individual services performed for the general public?
- Can the individual be fired if they are performing the job or
service agreed upon contractually?
- Can the individual terminate the job or services without risk or
financial loss due to breach of contract litigation?
- The above test is to be used only as a guideline. Read the IRS
Publication 15-A and consult with the IRS to verify specific
instances.
For more information go to the Internal Revenue Service's Web Site.
http://irs.us.treas.gov/prod/tax_edu/faq/index.htm
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- Exempt and Nonexempt
Exempt and nonexempt refers to an employee's status under the FLSA
(Fair Labor Standards Act). Employers are not required to pay exempt
employees minimum wage or overtime premiums. Nonexempt employees must
be paid minimum wage and overtime premium for all hours worked over 40
per week. Exempt employees primarily perform office or nonmanual work,
academic instruction or training, regularly assist a proprietor,
exercise discretion, use independent judgement, and spend less than
20% (40% in retail or service industries) performing nonexempt work.
Typically, nonexempt employees work is routine with predefined
standards and rules. Nonexempt employees generally do not exercise
discretion, do not use independent judgement, and spend more than 20%
of their time on nonexempt work. Nonexempt employees are required to
account for time worked and sick and vacation time taken on an hourly
basis.
For more information on exempt and non-exempt employees, go to the
Department of Labor?s website.
http://www.dol.gov/
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- Federal vs. State Minimum Wage
The federal minimum wage rate is set by the Fair Labor Standards Act (FLSA). Some states have wage-hour laws in place where minimum wage rates differ from the federal rate. In the states where the minimum wage rate differs from the federal rate, the higher rate must be paid to the employee.
There is also a lower minimum wage for teenagers under 20 years of age that may be paid during the first 90 consecutive calendar days of employment with an employer. Once again, states can enforce a youth minimum wage that differs from the federal rate and the higher must be paid to the employee.
For more information go to the Department of Labor's Web Site or refer to The Payroll Source distributed by the American Payroll Association.
http://www.dol.gov/
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- Termination Payments
The requirements for final payment at the time an employee is terminated due to discharge, layoff or resignation differs from state to state. Some states have no provisions, where others require final payment immediately upon termination.For more information refer to The Payroll Source distributed by the American Payroll Association.
http://www.americanpayroll.org/
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- Workers' Compensation
Workers' compensation insurance is designed to provide benefits to the employee that is unable to work for a period of time due to an injury on the job or suffering a work-related illness. Laws regarding workers' compensation differ from state-to-state but in general, employers purchase workers' compensation insurance. In some states larger employers who are solvent can self-insure (act as their own insurance company). When a worker is injured, his or her claim is filed with the insurance company or self insuring employer, who pays medical or disability benefits according to a state approved formula. By providing this form of insurance to their employees, employers are also protecting themselves from potential lawsuits brought on by an injured or ill employee.For more information on Workers'Compensation see Encarta Online or refer to The Payroll Source distributed by the Aerican Payroll Association.
http://www.encarta.msn.com/
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