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Washington: New Administrative Policy on Tips

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All Employers with tipped WA employees

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March 6, 2019

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The Washington Department of Labor & Industries recently issued an administrative policy providing guidance on tips, gratuities, and service charges under the Washington Minimum Wage Act. Key portions of the policy include:

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California: Payroll Service Providers Not Liable for Payroll Violations

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All Employers with CA Employees

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February 7, 2019

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In Goonewardene v. ADP, Inc., the California Supreme Court recently stated that a third-party payroll service provider could not be held liable for errors the service made in issuing paychecks to employees of the company it provides service to.  There, an employee sued both her employer and ADP, its payroll processing service, for wage and hour violations, including failure to provide adequate documentation and records, wrongful termination, breach of contract, and negligence, among others.  The former employee argued that she was a third-party beneficiary of the contract between ADP and her employer, and that ADP had been negligent in providing payroll services for her benefit.

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California: New Employment Laws Coming in 2019

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All Employers with CA Employees

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January 1, 2019, unless noted otherwise

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Governor Brown recently signed numerous employment-related bills, impacting various industries and employment practices; among these are a package of bills following the #MeToo movement.  The below list summarizes some key bills.

Upcoming Minimum Wage Increases

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Certain Employers with Employees in CA, DC, IL, ME, MD, MN, OR

EFFECTIVE

July 1, 2018

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Minimum wage increases typically fall into the beginning or middle of each calendar year, with many states or localities increasing minimum wage rates in July.  Below is a short list of localities with upcoming minimum wage increases effective July 1, 2018.

U.S. DOL Announces New Payroll Audit Pilot Program

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All FLSA-Covered Employers

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Pending

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On March 6, 2018, the U.S. Department of Labor (“DOL”) announced a new pilot program: the Payroll Audit Independent Determination (“PAID”) program.  The PAID program’s primary objectives are to expedite resolution of wage and hour claims, improve employer FLSA compliance, and facilitate payment of back wages owed to employees. The PAID program will be administered by the DOL’s Wage and Hour Division (“WHD”) and will be implemented for a trial period of six months.  At the end of the trial period, the WHD will evaluate the effectiveness of the program and determine if modifications are needed. The WHD has not yet announced when the program will start.

All FLSA-covered employers may voluntarily participate in the program, except those who are currently under investigation or engaged in litigation, acting in bad faith, or have committed repeat violations.  The PAID program is intended to help employers self-identify and correct non-compliant federal pay practices, such as misclassification issues, off-the-clock work, and failure to pay minimum wage or overtime. The PAID program may not resolve wage and hour violations of state law. If compensation issues are identified and employees voluntarily agree to resolve and release the specific wage and hour claims, employers must pay 100% of back pay owed, and may avoid liquidated damages, civil monetary damages, attorney’s fees, and other costs associated with litigation.

Employers interested in the PAID program can learn about how the program works and sign up for e-mail updates by visiting the WHD’s webpage.

Action Items

  1. Visit the DOL’s wage page on the PAID program here.
  2. Consult with legal counsel on how the PAID program may affect wage and hour violations.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2018 ManagEase

IRS Releases New 2018 Withholding Tables; Payroll Changes Required by February 15, 2018

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All Employers

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February 15, 2018

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On January 11, 2018, the Internal Revenue Service (“IRS”) released Notice 1036, which updates the 2018 income tax withholding tables in accordance with the recently enacted tax reform legislation. Employers should begin using the 2018 withholding rates as soon as possible, but no later than February 15, 2018.

Illinois: Responsible Job Creation Act Imposes New Requirements for Staffing Agencies

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All Employers of IL Employees

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June 1, 2018

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The Responsible Job Creation Act (the “Act”) creates new obligations for staff agencies, including the requirement to place temporary workers into permanent positions, new notice requirements regarding work placements, changes to itemized wage statements, and more.  The Act amends the Day and Temporary Labor Services Act and includes the following provisions:

New York: Upcoming Regulations for Direct Deposit/Debit Payroll Cards Revoked

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All Employers with NY Employees

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February 16, 2017

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New York’s strict new debit card and direct deposit wage payment regulations, originally slated to go into effect March 7, 2017, have now been invalidated by the New York State Industrial Board of Appeals (“IBA”).  The IBA stated that the regulations infringed on banking regulations that set bank fees, and that the New York State Department of Labor (“NYSDOL”) had overstepped its jurisdiction in applying these rules.  The IBA also pointed to numerous similar bills introduced in the New York legislature over the years, citing the bills’ failure to come to fruition as a sign that the current regulations controlling wage payments are already satisfactory.

California: Guidance on Rounding Timekeeping Entries

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All Employers with CA Employees

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December 9, 2016

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The California Court of Appeals recently confirmed that employees may round timecard entries to the nearest tenth of an hour.  In Silva v. See’s Candy Shop, Inc., a former employee brought a class action lawsuit challenging some of See’s timekeeping practices: rounding time card entries up or down to the nearest tenth (six minutes) of an hour, and a grace period in which employees could punch in or out up to 10 minutes before or after their scheduled shift, respectively.  Employees were not to perform work during this grace period and were not paid for time spent punched in during the grace period.  Rather, employees were intended to use such grace period time for personal activities.

November Updates

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Varies

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Varies

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This HR Alert addresses the following topics:
  1. Ninth Circuit: USERRA Does Not Prohibit Mandatory Arbitration
  2. Eleventh Circuit: Applicants Cannot Sue for Disparate Impact Under Specific ADEA Statute
  3. California: Cal/OSHA to Develop Indoor Heat Illness Standard
  4. California: Monetary Value of Accrued Vacation not Needed on Wage Statements
  5. California: (More) Amendments to the Fair Pay Act – Prior Salary Not Valid Justification

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