Are You Required to Pay Your Interns?

Interns

For-profit employers occasionally bring on unpaid interns to work at the company. The question employers must ask is whether an unpaid intern is actually an employee and, therefore, entitled to be paid minimum wage and overtime pay under the federal Fair Labor Standards Act (FLSA).  If an intern is not an employee under the FLSA, no compensation is required.

The U.S. Department of Labor (DOL) has clarified the factors it will consider in determining whether an intern working for a for-profit employer is in fact an employee under the FLSA. Following the lead of several courts, the DOL recently advised that it will scrap the agency’s previous six-factor test for unpaid interns and instead will utilize the “primary beneficiary” test used by courts to determine whether interns are employees under the FLSA. Under this test, courts examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship.

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Iceland’s Pay Equity Law: The Start of a New Approach?

Iceland

Iceland has been touting gender pay equity legislation as a short-term goal since early last year. So it is no surprise that the country’s new law  — which mandates pay equity for males and females – went into effect a few weeks ago.  By enacting specific legislation, Iceland is taking a proactive approach to address actual disparities in compensation between males and females by requiring employers to certify that they are paying both genders at the same level.  Otherwise, those employers will be subject to stiff financial penalties.

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Tax Reform and Employee Benefits – What You Need to Know Now

Tax

As you have probably heard by now, the recently enacted Tax Cuts and Jobs Act (the Tax Reform Act) made significant changes to the Internal Revenue Code. With regard to executive compensation, the Tax Reform Act made widely publicized changes impacting public companies and nonprofit entities.  The new law also made changes affecting employer-provided retirement, welfare, and fringe benefits.

Nearly all employers, including publicly held, private, and nonprofit, need to understand what is required by the new rules. To get started, here is our list of the Top Three Things to Know Now.

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More on the Trump NLRB and What it Means for Employers

Trump

In recent weeks we have commented on the spate of new pro-employer decisions from the National Labor Relations Board (the Board).   These decisions, among others,  have included:

  • Boeing Co., 365 NLRB No. 154 (Dec. 14, 2017)(reasonable employer policies, such as Boeing’s ban on the use of cameras and cell phones, are lawful),
  • Hy-Brand Industrial Contractors, 365 NLRB No. 156 (Dec 14, 2017)(the Board returned to its old rules on joint employer issues),
  • PCC Structural, Inc., 365 NLRB No. 160 (Dec 15, 2017)(reversing the Obama-era rule on micro-units), and
  • Raytheon Network Centric Systems, 365 NLRB No. 161 (Dec 15, 2017)(employer can continue to make health insurance changes post-expiration where they made them pre-expiration).

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When Is A Seemingly Exempt Employee Not Truly Exempt?

Exempt

Exemption rules under the Fair Labor Standards Act (FLSA) are complicated and can often be frustrating for employers. Determining which employees in a workforce may or may not be exempt from entitlement to overtime pay requires a detailed analysis of complex regulations. The result of an employer’s analysis can be very consequential for the organization.  If an employee, or worse, a group of employees, are improperly classified as exempt the result can be liability for years of unpaid overtime. Investing time now in an analysis of your employees’ exemption statuses can save time and money down the road through the avoidance of the cost of unchecked improper classification.

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