HRA News and Updates
Overtime Rule Revision Now Anticipated March 2019
On October 18, 2018, the U.S. Department of Labor filed notice that it would miss the January 2019 target for issuing a revised ruling on how to classify employees as nonexempt. The Department now plans to publish the new overtime rule under the Fair Labor Standards Act in March 2019.
To recap, under the Obama Administration, changes were originally anticipated to go into effect December 2016 that would have raised the annual salary threshold for overtime eligibility to $47,462. However, in November 2016, a federal court blocked the changes from being implemented. Under the Trump administration, the higher threshold has not been defended, but a Notice of Proposed Rulemaking was announced during the spring 2018 Regulatory Agenda to determine what the salary exemptions should be for executive, administrative, and professional employees.
According to HR Dive, the forthcoming rule is expected to set the salary threshold for exempt status between $32,000 and $35,000. Assuming the new deadline is met, employers would need to begin changing their compensation policies and practices as early as summer 2019, although experts anticipate the Department will give employers additional time to fully comply.
HR Toolkit: Moves between State and Local Employment in Teamworks
The Department of Administrative Services and State Accounting Office are pleased to announce the availability of a new reason code for employee moves between state and local employers in the PeopleSoft TeamWorks HCM system with no break in employment. The code is MSL (move between state and local). When the combination of TER/MSL is entered by the losing agency and REH/MSL is entered by the receiving agency, benefits systems will read the codes as Transfer Out and Transfer In. This programming should facilitate smoother transfer of benefits for employees making these employment moves.
Job aids that offer guidance for HR transactions and benefits continuation using the MSL reason code are available on the DOAS website . They are intended to support movements without a gap in employment between state Executive Branch employment and employment with a Community Service Board (CSB), County Board of Health Community Operated Program (BOHCOP), or County Public Health employer. They also assume that both employers use the TeamWorks HCM system managed by the State Accounting Office, and that the employee is moving between fully-benefited positions.
The MSL reason code may also be used when employees move without a break between state and local employment that is not fully-benefited in one or both positions (such as temporary, part-time, or hourly employment).
For guidance on system entry or benefits for such employee moves, the following resources are available:
New Test to Determine Whether Interns Must be Paid Under the FLSA
The US Department of Labor (USDOL) recently updated the test it uses to determine whether an employer must pay an intern under the Fair Labor Standards Act (FLSA). Prior to this change, it used an all or nothing 6-factor test for determining whether an internship could be unpaid. Note that case law established a “primary beneficiary” test for Georgia employers in 2015. The recent USDOL change brings the Wage and Hour Division’s regulators in sync with Georgia’s case precedence.
USDOL’s new “primary beneficiary” test does not require every factor to be met, but rather considers the extent to which each factor applies. The test is comprised of the following seven factors:
The new test is intended to offer more flexibility for unpaid internships. It is advisable to consider all factors related to a particular internship and ensure the intern will be the primary beneficiary of the relationship before you determine it should be unpaid.
If you have questions about the information in this advisory, please contact Autumn Cole at firstname.lastname@example.org or 404-463-7057.