Category Archives: Payroll

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*UPDATE* New York State Department of Labor’s Direct Deposit and Debit Card Notice Regulations Held Invalid and Revoked

As we previously reported here, the New York State Department of Labor (“NYSDOL”) issued final regulations in September 2016 imposing new notice and consent requirements on employers who pay wages via direct deposit and debit card.  The regulations, which were scheduled to take effect on March 7, 2017, have been invalidated and revoked by the … Continue Reading

New York State Department of Labor Issues Final Wage Regulations Imposing New Notice and Consent Requirements on Direct Deposit and Debit Card Wage Payments

Effective March 7, 2017, employers who pay wages via direct deposit and/or payroll debit card will need to comply with more stringent requirements.  The New York State Department of Labor (the “NYSDOL”) recently issued final regulations governing the methods that New York employers may use to pay most “non-exempt” employees.  The regulations impose a number … Continue Reading

Governor Brown Signs Bill Clarifying Wage Statement Requirements for Exempt Employees

On July 22, 2015, Governor Brown signed AB 2535 that clarifies which employees for whom an employer must track hours worked and record those hours on their wage statements.  The bill will become effective January 1, 2017. Prior to this amendment, Labor Code section 226 required that an employee’s paystub include hours worked for all … Continue Reading

DOL Makes Last-Minute Tweaks to New Overtime Exemption Rules

In March 2014, President Obama signed an executive order directing the Department of Labor to revise its aging rules governing overtime pay for white collar employees.  The Department solicited comments from the public on an earlier draft in July 2015.  Yesterday, the Department of Labor released the final version of the new rules.  The new … Continue Reading

Onward and Upward – California’s Minimum Wage And Paid Family Leave Benefits Set To Increase Substantially Over The Next Few Years

April 2016 has proven fruitful for California employees.  Last month, Governor Brown approved a series of gradual increases raising the statewide minimum wage rate in California to at least $15.00 by 2022.  A week later the Governor approved Assembly Bill No. 908, which revises the income-based formula to calculate benefits for a leave of absence … Continue Reading

EEOC Proposes New Pay Data Reporting Requirements for Employers

The United States Equal Employment Opportunity Commission (“EEOC”) has published proposed revisions to the requirements associated with the Employer Information Report (EEO-1). The EEO-1 already requires employers with more than 100 employees to provide certain employment information to the federal government, including the ethnic, racial and gender breakdown of their employees.  The proposed revisions would … Continue Reading

Changes to California’s Piece-Rate Compensation Requirements

Assembly Bill 1513, will significantly change the requirements governing the payment of piece-rate compensation in California beginning January 1, 2016.  AB 1513 creates Labor Code section 226.2 which sets forth requirements for the payment of a separate hourly wage for rest and recovery periods and for “other nonproductive time” worked by piece-rate employees.  AB 1513 … Continue Reading

UPDATE: San Francisco Retail Workers’ Bill of Rights

We wanted to provide an update on our earlier report about recent legislative happenings in San Francisco. (A link to our earlier article can be found here.)  The San Francisco Retail Workers’ Bill of Rights became law on December 5, 2014, 10 days after it was passed by the Board of Supervisors and presented to … Continue Reading

U.S. Supreme Court Rules that Security Screening Time is Non-Compensable Under Federal Law and The Portal-to-Portal Act

In a decision issued on Tuesday, December 9, 2014, the United States Supreme Court ruled that employees are not entitled to compensation under the federal Fair Labor Standards Act (“FLSA”) for the time they spend waiting to undergo, and actually do undergo, security screenings.  The Court’s unanimous decision in Integrity Staffing Solutions, Inc. v. Busk, … Continue Reading

San Francisco Retail Workers’ Bill of Rights

On November 25, 2014, the San Francisco Board of Supervisors passed two ordinances that are collectively referred to as the San Francisco Retail Workers’ Bill of Rights:  (1) the “Hours and Retention Protections for Formula Retail Employees” ordinance and (2) the “Fair Scheduling and Treatment of Formula Retail Employees” ordinance.  The San Francisco Retail Workers’ … Continue Reading

Two New Minimum Wage Increases Pass In Northern California

In the wake of a debate over increasing the federal minimum wage, two Northern California cities voted to increase their local minimum wage rates during the recent midterm elections.  On Tuesday, November 4, 2014, San Francisco became the second U.S. city to raise its minimum wage to $15.00 per hour, while Oakland raised its minimum … Continue Reading

California Supreme Court Limits Application of Commissioned Employee Exemption

On July 14, 2014, the California Supreme Court held in Peabody v. Time Warner Cable, Inc. that employees qualify for the California “commissioned employee” exemption in a pay period only if they receive “earnings [that] exceed one and one-half (1-1/2) times the minimum wage” in that two-week pay period.  The Court held that an employer … Continue Reading

Severance Payments are Taxable under FICA

On Tuesday, March 25, 2014, the U.S. Supreme Court ruled in favor of the Internal Revenue Service in a dispute over the payroll tax treatment of certain types of severance compensation.  The justices, in an 8-0 vote, overturned the Sixth Circuit’s opinion in Quality Stores, Inc., which had held that severance pay made in connection … Continue Reading

Update: New York Department of Labor Issues Final Wage Deduction Regulations

As we detailed in a previous posting (available here), in September 2012, Governor Cuomo signed into law new legislation which permits employers to make additional deductions from employees’ paychecks. Among other things, the bill amended Section 193 of the New York Labor Law to authorize employers to make deductions from an employee’s wages to recover … Continue Reading

Update: New York Department of Labor Releases Proposed Wage Deduction Regulations

As we detailed in a previous blog post (available here), in September 2012, Governor Cuomo signed into law new legislation which permits employers to make additional deductions from employees’ paychecks. Among other things, the bill amended Section 193 of the New York Labor Law to authorize employers to make deductions from an employee’s wages to … Continue Reading

*UPDATE* Proposed Amendments To New York Labor Law Section 193 Authorizing Additional Payroll Deductions Signed Into Law

As an update to an earlier article, on September 7, 2012, Governor Cuomo signed a bill into law which permits employers to make additional deductions from employees’ paychecks. Bill A10875-2011 (available here) amends New York Labor Law Section 193 (“Section 193”) to provide new categories of wage deductions that employers will be permitted to take … Continue Reading

Proposed Amendments to New York Labor Law Section 193 Authorize Additional Payroll Deductions

A bill that would permit employers to make additional deductions from employees’ paychecks recently passed the New York State Legislature and is expected to be signed into law by Governor Cuomo. Bill A10875-2011 (available here) seeks to amend New York Labor Law Section 193 (“Section 193”) to provide new categories of wage deductions that employers … Continue Reading

May An Employer Recover Prior Wage Overpayments? The DLSE Confirms That Such A Practice Can Be Lawful, But Several Conditions Apply.

To quickly process payroll, employers oftentimes pay hourly employees for an assumed amount of hours before their actual timesheets are submitted.  For example, an employer may issue a paycheck every Friday for an assumed 40 hours before actually receiving the employee’s final timecard for the week.  If it turns out that the employee worked less … Continue Reading

IRS Suspends Section 409A Reporting and Withholding Requirements for 2005

The IRS released Notice 2005-94 suspending employer reporting and wage withholding requirements for deferred compensation under IRC Section 409A for calendar year 2005. The Notice does not affect FICA or other employer withholding and reporting obligations. Future IRS guidance may require employers to furnish corrected information returns and payee statements reporting any previously unreported amounts … Continue Reading
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