Monthly Compliance Calendar Alert – Keep Your Company Compliant in June: Hours, Classifications, and Payment of Wages

If you are in HR, you’re no stranger to compliance management, forms, and deadlines—though keeping them all in order may be a different story. We want to be sure you are equipped with the right information to keep everything on track throughout the year, from ACA to FLSA.

That is why we put together the HR compliance calendar, to bring you an important list of dates and deadlines you need to know to keep your workplace on track.

In this month’s compliance calendar, you’ll find the key
topics to keep your Company up-to-date including employee awareness and
required or recommended training. 

*NEW: Monthly Compliance Calendar Consultations –A monthly webinar with a Compliance Consultant to guide you through HR compliance tasks and topics. Reach out to your dedicated HR Manager to find out how to register for the monthly Compliance Calendar Webinar!
  • Not applicable to HUB100 or GHR Hotline Clients

Holidays

  • Juneteenth – Sunday, June 19th

Important Dates and Deadlines for this Month

June 21

  • All filers who have not submitted and certified
    their mandatory 2021 EEO-1 Component 1 Report(s) by May 17, 2022 deadline will have through Tuesday, June 21, 2022, to submit and certify their 2021 EEO-1 Component 1 Report(s). Once the June 21, 2022 deadline passes, no additional 2021 EEO-1 Component 1 Reports will be accepted, and eligible filers will be out of compliance with their mandatory 2021 EEO-1 Component 1 filing obligation.

June 30

  •        End of Q2, calendar year. *

Topics to Discuss and/or Review

1.Review Employee hours and wages. For clients with access to the Forms Library, references to this section can be found in the folder, “Compensation and Payroll.”
 
  • Check to see if Company is complying with federal, state, and/or local laws for minimum wage requirements.  For clients with access to the Forms Library, see the document, “Minimum Wage Rates by State and Municipality” in the “Compensation and Payroll” folder > Compensation and Payroll Information by State Spreadsheets subfolder.
  • Make sure working time is being documented and discuss with employees if any discrepancies exist. (Check time waiting, on-call, standby time, comp time, traveling on the job, etc.)
  • Review any time rounding policies (if applicable)
  • Ensure employees’ schedules, hours, workweeks, and shifts are clearly defined.
  • Ensure FLSA and State compliance for the employment of minors. (State laws vary).
  • Review employees’ commission pay (if applicable).
  • Check for tip compensation and reporting requirements.

 

2. Review Overtime compensation (State laws vary). For clients with access to the Forms Library, references to this section can be found in the folders, “Compensation and Payroll” and “Overtime.”

  • Ensure non-exempt employees are being compensated according to applicable federal, state, and local laws.

 

3. Review employees’ classifications. For clients with access to the Forms Library, references to this section can be found in the folder, “Exempt vs. Non-Exempt” and the folder, “Independent Contractor.”

  • Ensure employees are correctly designated as exempt or non-exempt under FLSA.
  • Ensure compliance for full-time and part-time determination under the standards of the ACA, (full-time is an average of 30 hours in a workweek).
  • Determine what types of employees the company has. (i.e., if any temporary, seasonal, on-call, etc.).
  • Make sure Independent contractors’ (ICs) are appropriately classified. Certain states, like California, have different rules, please check for your state. For clients with access to the Forms Library, references to this section can be found in the folder, “Exempt vs. Non-Exempt.”

 

4. Review Meal and Rest period policies. For clients with access to the Forms Library, references to this section can be found in the folder, “Breaks.”

  • Check any state regulations.
  • Ensure employees are receiving the appropriate rest and meal periods.
  • Review the Company’s policies, (i.e., are meal and rest periods paid, can employees leave the premises during meal and rest periods?)
  • Check State law for any required Lactation Accommodations. For clients with access to the Forms Library, references to this section can be found in the folder, “Lactation Accommodation.”

 

5. Review wage overpayment procedure (State laws vary). For clients with access to the Forms Library, references to this section can be found in the folder, “Compensation and Payroll.”

  • Ensure that overpayment recoup does not bring employees’ paychecks below minimum wage.
  • Check State law for types of overpayments that have restrictions (i.e., mathematical, or clerical errors)
  • Check State law for notice requirements for overpayment recouping. Does the State require authorization before recouping overpayment amounts? Is there a specific amount of time the Company can make the deduction based on an error (i.e., 90-days)?
  • Edit Payroll Overpayment Acknowledgement form or Payroll Overpayment Acknowledgement – Repayment Installments, if necessary.

 

6. Review any other types of pay for compliance. For clients with access to the Forms Library, references to this section can be found in the folders, “Compensation and Payroll”, “Termination”, and “Vacation, PTO, Holidays.”

  • Does split-shift premium apply?
  • Does call-back or reporting pay apply? (State laws vary).
  • Do employees receive Holiday Pay?
  • What are the state’s regulations for payment upon Termination? (State laws vary). Does this include Vacation pay? For clients with access to the Forms Library, see the document, “Final Wage Payment Requirements by State and Municipality” in the “Termination” folder.
  • Does the Company payout Vacation/PTO at year-end?
  • Does the Company have a “use it or lose it” policy? (State laws vary). For clients with access to the Forms Library, see the document, “Vacation and Paid Time Off Benefits by State” in the “Vacation, PTO, Holidays” folder.
  • Review Paid leave policies, including paid sick or paid FMLA leaves (i.e., Paid leaves under FFCRA, check State and local laws). For clients with access to the Forms Library, see the document, “Paid Family Leave Requirements by State and Municipality in the “Paid Family Leave (by State)” folder.

 

7. Review the Company’s procedures for deductions and garnishment of wages. For clients with access to the Forms Library, references to this section can be found in the folders, “Compensation and Payroll.

  • Check voluntary deductions and make sure authorizations are received and stored from employees.
  • Check Federal, State, and local laws for types of authorized deductions.
  • Ensure the appropriate payroll withholdings are performed and forwarded.
  • Ensure accuracy for exempt employee deductions.

Tips

More information in reference to the topics discussed in this month’s compliance calendar can be found in our comprehensive online Forms Library, which is available to members 24/7. 

Note: This calendar is designed to help our clients review the key human resources-related reporting and notice requirements that may apply to their organizations. Please note that this list is for general reference purposes only and is not all-inclusive. Many of the compliance requirements are complex ERISA or other statutory legal filings and responsibilities may vary depending on your company’s plans. We encourage you to consult with your insurance brokers, plan administrators and/or your ERISA and tax advisors for further guidance.