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Posts Tagged ‘employment law’

Scott Connolly Discusses Properly Classifying Workers in Accounting Today

August 3, 2017 Leave a comment

SJC Headshot Photo 2015 (M0846523xB1386)In Accounting Today’s article “Properly Classifying Workers Remains a Major Problem“, employment attorney Scott Connolly comments on how worker misclassification is a prevalent issues for both the Internal Revenue Service and state taxing officials. Companies that misclassify employees as independent contractors avoid paying minimum wage, payroll taxes, overtime, worker’s compensation, and other payments under the Federal Family and Medical Leave Act.  However, this mislabeling can lead to trouble with the IRS, including the company owing taxes it failed to withhold by classifying a worker as an independent contractor instead of as an employee.

Additionally, as Scott notes:

The employer should be concerned about misclassification claims from the workers themselves… Many service providers want to be classified as independent contractors, but companies run the risk because later there might be disharmony in the relationship.”

Read the full article for more information on the potential consequences of misclassifying workers, or contact Scott Connolly for more information.

Federal Judge Temporarily Blocks New Overtime Rule From Taking Effect On December 1

November 23, 2016 Leave a comment

2015-01-05_8-57-41By: Scott J. Connolly and Sandra E. Kahn

On November 22, a federal judge in Texas issued a preliminary order that temporarily blocks the U.S. Department of Labor (DOL) from implementing changes to the salary basis for white collar overtime exemptions.  The new salary rule, which was to become effective on December 1, 2016 would have required employers to increase exempt employees’ minimum salary from $23,660 to $47,476.  The preliminary court order blocking the rule appears to apply to all public and private employers nationwide.SJC Headshot Photo 2015 (M0846523xB1386)

Find out how the judge’s order will affect the new salary rule, which was to become effective on December 1. Read this month’s Employment Law Alert.

Are You Ready to Reclassify? New Overtime Regulations Go Into Effect on December 1, 2016

October 5, 2016 Leave a comment

By: Sandra E. Kahn

2015-01-05_8-57-41On December 1, 2016, any employees who earn less than $47,476 annually will be entitled to overtime and must be treated as non-exempt, as per the U.S. Department of Labor’s final rule (“Final Rule”).
Don’t wait any longer to address this critical change in the law.
Find out how the Final Rule will affect your current employee classifications and pay practices, and the consequences of not complying with the law.

Read this month’s Employment Law Alert.

Massachusetts Pay Equity Law Imposes New Restrictions on Employer Pay and Hiring Practices

August 11, 2016 Leave a comment

By: Maura E. Malone

2015-01-05_8-57-41On August 1, 2016, Massachusetts Governor Charlie Baker signed “An Act to Establish Pay Equity (the Act)” into law.  The Act, which does not become effective until July 1, 2018, will require Massachusetts employers to pay men and women equally for comparable work.  It also forbids employers from asking prospective employees about salary history or restricting employee discussion of pay.  The Act imposes significant consequences for
violations of the law.

The Act will make it unlawful for employers to pay unequal wages to employees of different genders who perform comparable work. The Act broadly defines wages to include “all forms of remuneration for employment.”

Continue reading on the full alert.

Will We See Non-Compete Reform Enacted This Year?

June 28, 2016 Leave a comment

By: Scott J. Connolly

For the past eight years, legislative efforts to reform 2015-01-05_8-57-41post-employment noncompetion agreements in Massachusetts have failed. But this year, House Speaker Robert A. DeLeo has signaled his support for H. 4323 and there is buzz that a non-compete bill may
SJC Headshot Photo 2015 (M0846523xB1386)land on Gov. Baker’s desk before the legislative session ends in July. 

This bill entitled, “Massachusetts Noncompetition Act” has eight key components in order for a noncompetition agreement to be valid and enforceable. If H. 4323 is enacted, employers will have to quickly and carefully revise their employee restrictive agreements to comply with the new law.

Read the full post here.

“Magic” Numbers for Federal and State Employment Law Coverage

June 8, 2016 Leave a comment

ela_indexBy: Sandra E. Kahn
There is an ever-increasing array of regulation on employment practices at the state and federal level. But when do growing businesses become covered under the employment laws of these jurisdictions?

It’s all in the employee numbers: Six, Fifteen, Twenty, Fifty, One Hundred. For example, when a business has six employees, the company becomes covered by the MA Fair Employment Practices Act but then at fifteen, it also comes under the federal laws of Title VII of the Civil Rights Act of 1964. As the company grows, different regulations come and go and it is critical to be aware of it in order to maintain legal compliance.

Read the full post here.

New Overtime Regulations Will Result In Many More Workers Becoming Entitled To Overtime

May 18, 2016 Leave a comment

By, Sandra E. Kahn

On May 18, 2016, President Obama announced the publication of the U.S. Department of 2015-01-05_8-57-41
Labor’s final rule (“Final Rule”) updating the overtime regulations, and providing that employees who earn less than $47,476 annually will be entitled to overtime.

The federal Fair Labor Standards Act (“FLSA”) “white collar” exemptions are familiar to most employers. Under the FLSA, employees must be paid the minimum amount required by the statute on a salary basis, and the employee’s job duties must primarily involve executive, administrative, or professional duties. The Final Rule changes only the salary basis test, leaving in place the existing duties test.

For more details, read our full alert and visit our Employment Law Group page.