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Regulations

Employee Status
The status of an employee is crucial. The employee's status and classification (FT/PT, exempt/non-exempt) must be accurately accounted for. An inaccurate status can cost a company considerable losses if there is a Wage and Hour claim. Much of healthcare reform utilizes this information to determine an employee’s eligibility and a company’s adherence to policy.
Please make sure this information is provided and complete when sending new hire documentation to Human Capital or updating an employee’s status when applicable.

Minimum Wage
Although the minimum wage is an hourly wage, this doesn't mean that you have to pay employees by the hour. You may pay as salary, commission, wages plus tips, or piece rate, as long as the total amount paid divided by the total number of hours worked is equal to at least the minimum wage.

Paying Employees Who Receive Tips
If your employees earn tips from customers, you may be able to pay them less than the minimum wage, as long as what you pay them, plus the tips they actually earn, add up to at least the minimum wage per hour worked. If you follow this procedure (often called a "tip credit"), you are legally required to adopt a policy explaining it to your employees. Not all states let employers take a tip credit, however.

Exempt or Non-Exempt:
One of the requirements of the FLSA is for an employer to determine the exemption status of each position. There are two types of exemption under the FLSA. These are “non-exempt” and “exempt.” Job titles do not de-termine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the FLSA regulations. For further information and fact sheets on the exemptions for executive, administrative, professional, computer, and outside sales employees visit our website www.human-capital.com and select the link to access our forms. User ID is formsource, password is hchr. You will find these tests under HR > New Hire Forms > Test for Exempt Status.

Salary Exempt Employees
Are not granted the protections of the FLSA and are therefore not entitled to overtime pay.

Hourly and Salary Non-exempt Employees
Non-exempt employees are those who are covered by the FLSA Minimum wage and overtime pay provisions. Non-exempt employees must be paid at least minimum wage and are eligible for overtime pay at the rate of 1.5 times the regular rate for all hours worked in excess of 40 hours per week. Sick leave, personal leave, vacation, and other paid absences are not considered hours worked for overtime purposes. Most workers, particularly those working an hourly wage, are in fact non-exempt employees.

You may find that you have misclassified employees. If a change in classification is in order, be sure to provide the employee(s) with a new offer letter indicating their new exempt status. When sending a potential hire an offer letter make sure to state if they are exempt or non-exempt.

QUESTIONS—contact Human Resources or Payroll Department @ 888-736-9071

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