HR Monthly Round Up - January 2023
Hi, everyone. Welcome to this month’s HR Roundup. Let’s get started!
On January 4, the Fall 2022 Unified Agenda of Regulatory Actions was released. This bi-annual agenda offers a look at what federal agencies are working on and gives employers a heads-up on final or proposed changes that could impact businesses.
Three final rules will impact most U.S. employers. First, in February, a final rule to update and modernize the regulations implementing the Davis-Bacon Act is expected. This impacts federal contractors, and companies that work with federal contractors.
Second, in May, employers can expect to see a final rule about the independent contractor status under the Fair Labor Standards Act (or FLSA). Employers should begin to evaluate their processes for classifying employees and independent contractors to prepare.
Third, in August, employers can expect to see a final rule about joint employer relationships. The National Labor Relations Board has been fine tuning what joint employment means. Companies should prepare for a broad definition and increased liability for noncompliance.
There is a proposed rule that employers should keep an eye on. In May, the Department of Labor’s Wage and Hour Division plans to release a proposed rule about the FLSA White Collar Exemptions.
This is a hot topic because this rule impacts many employees including, executive, administrative, professional, outside sales, and computer employees and exempts them from overtime pay and minimum wage under the FLSA.
In poster news, employers that fail to comply with labor law posting requirements face higher fines as the Department of Labor increased posting penalties recently.
The new maximum penalties for posting violations are:
- Occupational Safety and Health Act: $15,625 for each violation
- Family and Medical Leave Act: $204 for each separate offense
- Employee Polygraph Protection Act: $24,793
The higher fines apply to penalties assessed after January 15, 2023.
Speaking of fines, the Department of Homeland Security has increased fines for Form I-9 paperwork violations and the hiring of unauthorized workers.
Under fine adjustments published in the Federal Register on January 13, the new penalty amounts for paperwork violations are:
- Minimum fine: $272
- Maximum fine: $2,701
Violations for knowingly hiring, recruiting, referring, or retaining unauthorized aliens range from $676 up to $27,108, depending on the number of offenses.
An employer should regularly conduct Form I-9 audits to ensure that the form has been properly completed for all employees.
If mistakes are found, the errors can be corrected. However, employers should also update their procedures and train employees, so the same errors are not made again.
That’s what’s new in HR. See you next time!