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Posts published in November 2016

Federal Judge Blocks Overtime Pay Change


A federal Judge on Tuesday blocked the law that was passed on May 17th, 2016 to increase the minimum salary amount a worker can earn and remain exempt from overtime pay. U.S. District Judge Amos Mazzant, of Texas, agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce, that the rule is unlawful and granted their motion for a nationwide injunction.   Mazzant stated that the federal law governing overtime does not allow the Labor Department to decide which workers are eligible based on salary levels alone. The rule was to take effect on…

IRS Extends Due Date for 2016 ACA Reporting


Yesterday, November 18, the IRS issued Notice 2016-70, which extends the due date for the 2016 requirement to furnish ACA-related statements to individuals for insurers, self-insuring employers, and certain other providers of minimum essential coverage under I.R.C. § 6055, and for applicable large employers under I.R.C. § 6056, and extends good-faith transition relief from section 6721 and 6722 penalties to the 2016 information-reporting requirements under sections 6055 and 6056.  The due date is extended from January 31st, 2017 to March 2nd, 2017. The notice also provides guidance to individuals who, as a result of these extensions, might not receive a…

2016 FUTA Tax Credit Reduction States Announced


Under the provisions of the American Federal Unemployment Tax Act (FUTA), a Federal tax is levied on employers covered by the Unemployment Insurance program at a current rate of 6.0% on wages up to $7,000 a year paid to a worker.  The law, however, provides a credit against federal tax liability of up to 5.4% to employers who pay state taxes timely under an approved state UI program.  Accordingly, in states meeting the specified requirements, employers pay an effective Federal tax of 0.6%, or a maximum of $42 per covered worker, per year. The credit against the Federal tax may…

Preparing for Marijuana in the Workplace


Whether you are in a state that has already legalized the use of marijuana (medical or recreational), or you are just waking up to your state passing the legalization last night, you need to consider its impact on your workplace. How does legalized marijuana use come into play in regards to your Zero Tolerance/Drug Free Workplace policy?  Are you required to accommodate the use of medical marijuana during an employee’s shift?  Does language in your employee handbook conflict with your state’s laws?  These are just a few of the questions a business needs to take into serious consideration. For example, some…