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DOL plan carries huge HR paperwork burden

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in Compensation and Benefits,HR Management,Human Resources,Leaders & Managers,Management Training

Which of your workers are eligible for overtime pay? Which are independent contractors versus employees? It soon won’t be good enough to guess … get ready to document and show proof.

The U.S. Department of Labor issued a proposal last month that would require employers to prepare detailed records on every worker’s status under the Fair Labor Standards Act (FLSA). Then—as with I-9 forms—you’d have to keep that information on file and be prepared to show it to the DOL upon request.

The new requirements—which wouldn’t be binding for at least a year—are tucked into the DOL’s Spring 2010 Regulatory Analysis. Specifically, every employer would have to:

  • Perform an FLSA “classification analysis” for each exempt worker, explaining why he or she is considered exempt from the FLSA (and thus exempt from overtime eligibility). Likewise, you’ll need to document why you consider workers to be independent contractors.
  • Provide a copy of that analysis to each employee, along with “basic information about their employment, including how their pay is calculated.”
  • Retain that analysis to provide it to DOL inspectors if they request it.

Business groups blasted the proposal as unnecessary government micromanagement. Look for a formal DOL proposal in the coming weeks.

Read the full story and find links to the DOL’s Spring 2010 Regulatory Analysis at www.theHRSpecialist.com/paperwork.

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