Vision Payroll

August 4, 2011

Unemployment Insurance Weekly Claims Report Update for July 30, 2011

Secretary of Labor Hilda Solis
Secretary of Labor Hilda Solis
According to the US Department of Labor, in the week ending July 30, the advance figure for seasonally adjusted initial claims was 400,000, a decrease of 1,000 from the previous week’s revised figure of 401,000. The 4-week moving average was 407,750, a decrease of 6,750 from the previous week’s revised average of 414,500.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 3.0% for the week ending July 23, unchanged from the prior week’s revised rate of 3.0%.

Advance Seasonally Adjusted Insured Unemployment Increases

The advance number for seasonally adjusted insured unemployment during the week ending July 23 was 3,730,000, an increase of 10,000 from the preceding week’s revised level of 3,720,000. The 4-week moving average was 3,729,750, an increase of 4,500 from the preceding week’s revised average of 3,725,250.

August 3, 2011

Tip of the Week: The US Department of Labor’s Free Smartphone App for Your Employees

The US Department of Labor’s Free Smartphone App for Your Employees
The US Department of Labor’s Free Smartphone App for Your Employees
On May 9, 2011, the US Department of Labor (DOL) announced the launch of its first smartphone application, the “DOL-Timesheet” designed specifically for employees. In a DOL news release that same day, Secretary of Labor Hilda Solis stated that by leveraging “increasingly popular and available technology …this app will help empower workers to understand and stand up for their rights when employers have denied their hard-earned pay.” However, this tool can be problematic for small to mid-sized businesses. Employers need to take extra caution to ensure that employees are absolutely paid correctly, complaints are handled effectively, and recordkeeping is maintained accurately.

DOL Timesheet Currently Available for iPhone and iPod Touch

The free app is currently compatible with the iPhone and iPod Touch. The Labor Department will explore updates that could enable similar versions for other smartphone platforms, such as Android and BlackBerry, and other pay features not currently provided for, such as tips, commissions, bonuses, deductions, holiday pay, pay for weekends, shift differentials and pay for regular days of rest.

Learn More About the DOL Free Smartphone App for Your Employees

To find get more details about the DOL free smartphone App for our employees, be sure to read the featured article by the HR pros at MyHRSupportCenter, The US DOL’s Free Smartphone App…Made for Your Employees, Part I. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

July 28, 2011

Unemployment Insurance Weekly Claims Report Update for July 23, 2011

Secretary of Labor Hilda Solis
Secretary of Labor Hilda Solis
According to the US Department of Labor, in the week ending July 23, the advance figure for seasonally adjusted initial claims was 398,000, a decrease of 24,000 from the previous week’s revised figure of 422,000. The 4-week moving average was 413,750, a decrease of 8,500 from the previous week’s revised average of 422,250.

Advance Seasonally Adjusted Insured Unemployment Rate Decreases

The advance seasonally adjusted insured unemployment rate was 2.9% for the week ending July 16, a 0.1 percentage point decrease from the prior week’s revised rate of 3.0%.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending July 16 was 3,703,000, a decrease of 17,000 from the preceding week’s revised level of 3,720,000. The 4-week moving average was 3,721,000, a decrease of 5,250 from the preceding week’s revised average of 3,726,250.

July 25, 2011

US Department of Labor Provides Funding to Assist Workers in Spearfish, South Dakota

US Department of Labor Provides Funding to Assist Workers in Spearfish, South Dakota
US Department of Labor Provides Funding to Assist Workers in Spearfish, South Dakota
The US Department of Labor today announced a $379,500 National Emergency Grant to provide training and employment services to about 200 workers affected by the closure of the Premier Bankcard call center in Spearfish, SD. The company announced in May that it would be closing the center and permanently laying off its workers.

DOL Secretary Solis Comments on Grant

“This grant will help dislocated workers by equipping them with the skills necessary to obtain good, stable jobs in the area’s high-growth industries,” said Secretary of Labor Hilda L. Solis.

Grant Awarded to the South Dakota Department of Labor

Awarded to the South Dakota Department of Labor, the grant will provide services that focus on supporting the needs of local industries, including health care and education.

National Emergency Grants Are Part of Discretionary Fund

National Emergency Grants are part of the secretary of labor’s discretionary fund and are awarded based on a state’s ability to meet specific guidelines.

July 23, 2011

US Department of Labor Provides Funding to Assist Workers in Rochester, New Hampshire

US Department of Labor Provides Funding to Assist Workers in Rochester, New Hampshire
US Department of Labor Provides Funding to Assist Workers in Rochester, New Hampshire
The US Department of Labor (DOL) recently announced a $248,878 National Emergency Grant to provide training and re-employment services for about 60 workers affected by layoffs at Thompson/Center Arms in Rochester, NH, which began in January and will continue through the end of the year.

DOL Secretary Solis Comments on Grant

“This grant will help these dislocated workers by equipping them with the skills necessary to obtain good, stable jobs in New Hampshire’s high-growth industries,” said Secretary of Labor Hilda L. Solis.

Southern New Hampshire Services, Inc. Will Operate Grant

Awarded to the New Hampshire Department of Resources and Economic Development, the grant will be operated by Southern New Hampshire Services, Inc. to prepare the workers for other manufacturing positions available in the area, as well as for positions in non-manufacturing companies in the southern New Hampshire labor market.

Thompson/Center Arms Is Part of Smith & Wesson Holdings

Thompson/Center Arms is a firearms manufacturer that produces pistols, rifles and accessories. The company became a part of Smith & Wesson Holdings in 2007.

National Emergency Grants Are Part of Discretionary Fund

National Emergency Grants are part of the secretary of labor’s discretionary fund and are awarded based on a state’s ability to meet specific guidelines.

July 21, 2011

Unemployment Insurance Weekly Claims Report Update for July 16, 2011

Secretary of Labor Hilda Solis
Secretary of Labor Hilda Solis
According to the US Department of Labor, in the week ending July 16, the advance figure for seasonally adjusted initial claims was 418,000, an increase of 10,000 from the previous week’s revised figure of 408,000. The 4-week moving average was 421,250, a decrease of 2,750 from the previous week’s revised average of 424,000.

Advance Seasonally Adjusted Insured Unemployment Rate Decreases

The advance seasonally adjusted insured unemployment rate was 2.9% for the week ending July 9, a 0.1 percentage point decrease from the prior week’s unrevised rate of 3.0%.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending July 9 was 3,698,000, a decrease of 50,000 from the preceding week’s revised level of 3,748,000. The 4-week moving average was 3,720,500, a decrease of 4,000 from the preceding week’s revised average of 3,724,500.

July 14, 2011

Unemployment Insurance Weekly Claims Report Update for July 9, 2011

Secretary of Labor Hilda Solis
Secretary of Labor Hilda Solis
According to the US Department of Labor, in the week ending July 9, the advance figure for seasonally adjusted initial claims was 405,000, a decrease of 22,000 from the previous week’s revised figure of 427,000. The 4-week moving average was 423,250, a decrease of 3,750 from the previous week’s revised average of 427,000.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 3.0% for the week ending July 2, unchanged from the prior week’s revised rate of 3.0%.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending July 2 was 3,727,000, an increase of 15,000 from the preceding week’s revised level of 3,712,000. The 4-week moving average was 3,719,250, a increase of 6,250 from the preceding week’s revised average of 3,713,000.

July 13, 2011

Tip of the Week: Restaurants Should Obtain a Signed Tip Credit Notice from All Tipped Employees

Restaurants Should Obtain a Signed Tip Credit Notice from All Tipped Employees
Restaurants Should Obtain a Signed Tip Credit Notice from All Tipped Employees
On April 5, 2011, the US Department of Labor (DOL) issued a final rule that affects employers who have tipped employees. The rule amended a Fair Labor Standards Act (FLSA) regulation. All employers are required to provide certain required information to all tipped employees in either oral or written form.

Signed Written Notice Would Document That Requirements Were Met

The DOL commented although a written notice is not required, “employers may wish to do so, since a physical document would, if the notice is adequate, permit employers to document that they have met the requirements in section 3(m) and the Department’s regulations to ‘inform’ tipped employees of the tip provision.”

NRA, CSRA, and NFIB Have Filed Suit over Tip Credit Regulation

The National Restaurant Association (NRA), Council of State Restaurant Associations (CSRA), and National Federation of Independent Business (NFIB) have filed suit over the new final rule. According to the NRA:

The Final Rule followed a notice of proposed rulemaking (NPRM) that the DOL published in 2008 that would have made only technical and non-substantive changes to the tip credit notice regulation. Nothing in the 2008 NPRM put the public on notice that the DOL was contemplating significant changes to the tip-credit notice requirements.

Vision Payroll Recommends Restaurants Implement a Written Notice Policy

The NRA has provided sample documents that restaurants and other who have hired tipped employees may download. Vision Payroll recommends that employers review the documents with legal counsel and implement a written notice policy as soon as practicable.

July 11, 2011

Prince George’s County Public Schools Agrees to Pay $4.2 Million in Back Wages

Prince George’s County Public Schools Agrees to Pay $4.2 Million in Back Wages
Prince George’s County Public Schools Agrees to Pay $4.2 Million in Back Wages
The US Department of Labor’s Wage and Hour Division has obtained an agreement for Maryland’s Prince George’s County Public Schools system (PGCPS) to pay $4,222,146 in back wages due 1,044 workers to resolve violations of the H-1B temporary foreign worker program. Investigators from the department found that PGCPS illegally reduced the wages of the H-1B workers by requiring them to pay fees that the school system was required to pay.

H-1B Visas Are for Temporary Hiring in Certain Specialty Occupations

The H-1B program allows employers to hire foreign professionals in certain specialty occupations to work temporarily in the US. Workers hired under the H-1B program must be paid at least the same wage rates and benefits as those paid to US workers doing the same job in the same area, so that the wages of similarly employed US workers are not adversely affected.

Foreign Workers Have Been Paid Back Wages

“The Labor Department has the responsibility for ensuring that employers who use the H-1B program follow the law and do not place US workers at a disadvantage to H-1B workers,” said Secretary of Labor Hilda L. Solis. “We are pleased this investigation has been resolved with workers paid all the back wages to which they are entitled.”

Civil Money Penalties Will Also Be Paid

Due to the willful nature of some of the violations, PGCPS also has agreed to pay $100,000 in civil money penalties and to be debarred for two years from filing new petitions, requests for extensions or requests for permanent residency for foreign workers under any employment-based visa program. Under the statute governing the H-1B program, willful wage violations are subject to a debarment period of at least two years. Violations are willful when an employer knew or acted in reckless disregard for whether its actions were impermissible.

Certain Fees Reduced Workers’ Wages Below Legal Limits

The H-1B visa program requires that employers pay certain fees, including an anti-fraud fee and a filing fee, when they utilize the program. Instead of paying these fees and other costs associated with recruiting H-1B workers and filing their visa petitions, PGCPS required the foreign workers to pay them. As a result, the workers’ earnings were reduced below the amount legally required to be paid. The Wage and Hour Division’s investigation covered fees associated with the H-1B application process from May 2005 to January 2011.

Agreement Subject To Approval

The agreement is subject to approval by an administrative law judge.

July 10, 2011

Farmers Insurance Agrees to Pay $1.5 Million in Back Wages

Farmers Insurance Agrees to Pay $1.5 Million in Back Wages
Farmers Insurance Agrees to Pay $1.5 Million in Back Wages
Los Angeles-based Farmers Insurance Inc. (Farmers) has agreed to pay $1,520,705 in overtime back wages to 3,459 employees following an investigation by the US Department of Labor’s Wage and Hour Division that disclosed significant and systemic violations of the federal Fair Labor Standards Act’s (FLSA) overtime and record-keeping provisions. Violations occurred at 11 customer service call centers located in Florida, Kansas, Michigan, Oklahoma, Oregon and Texas.

Pre-Shift and Post-Shift Work Must Be Compensated

“Failing to properly compensate employees for pre- or post-shift work is a violation of federal law,” said Secretary of Labor Hilda L. Solis. “The Labor Department is committed to ensuring that employers abide by the law so that workers are protected against exploitation, and law-abiding employers are not placed at a competitive disadvantage.”

Farmers Did Not Pay for Pre-Shift Work

Through interviews with employees and a review of the company’s timekeeping and payroll systems, investigators found that the company did not account for time employees spent performing pre-shift work activities. Employees routinely performed an average of thirty minutes of unrecorded and uncompensated work — such as turning on work stations, logging into the company phone system and initiating certain software applications necessary to begin their call center duties — per week.

Farmers Agrees to Maintain Future Compliance with FLSA

Because employees’ pre-shift work times were excluded from official time and payroll records, they were not paid for all hours and are owed compensation at time and one-half their regular rates for hours that exceeded forty per week. Farmers Insurance has agreed to pay back wages, as well as to maintain future compliance with the FLSA by properly recording and compensating all hours worked by its employees.

Call Center Employees Across the Country Are Affected

The agreement affects call center employees who worked between Jan. 1, 2009, and May 10, 2010, at Farmers’ HelpPoint facilities in Olathe, Kansas; Oklahoma City, Oklahoma; Lake Mary, Florida; and Grand Rapids, Michigan. It also affects workers employed at a former location in Overland Park, Kansas, between Jan. 1, 2009, and Jan. 10, 2010. Additionally, it affects employees who worked between Jan. 1, 2009, and Feb. 1, 2010, at Farmers’ ServicePoint and commercial facilities in Austin, Texas; a ServicePoint facility in Grand Rapids, Michigan; a ServicePoint facility in Olathe, Kansas; and ServicePoint and commercial facilities in Hillsboro, Oregon.

FLSA Also Requires Overtime for Hours Worked in Excess of 40

The FLSA requires that covered employees be paid for pre-shift and post-shift job duties, and for attending required meetings. Employees must be paid time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond forty per week. Employers must pay at least the federal minimum wage of $7.25 for all hours worked, and maintain accurate time and payroll records.

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