Can you believe we’re into the second month of 2019 already? Each year brings changes in employment law and reminders to familiarize ourselves with the ins and outs to avoid fines, damage to reputation, loss of employees – or even our business.
Let’s take a look at some of the top workplace violations so that we can move forward in 2019 informed and prepared. Remember: ignorance is not an excuse under the law!
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I-9 audits and worksite raids.
The odds that your company could face government scrutiny of its immigration paperwork are high. In 2019, expect ICE to continue to increase audits by another 200% to 300%. Stats from 2018 showed that:
- I-9 audits were up 300%. ICE initiated I-9 audits against 5,981 employers, compared with 1,360 the year before.
- Worksite investigations were up 300%. ICE opened 6,848 worksite investigations last year, up from 1,691 in 2017.
- Arrests were up 600%. ICE made 779 criminal arrests and 1,525 administrative arrests at workplaces (employees and managers), compared with 139 and 172 the year before.
Source: Business Management Daily
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Unpaid employment taxes.
This often falls under a company misclassifying employees as exempt workers or as independent contractors. It’s not as simple to exempt someone based on whether they’re on salary or get an hourly wage. The salary level and job duties are what really determine your classification.
Independent contractors are self-employed workers who aren’t covered by the wage and tax laws that apply to employees, because employers don’t pay Medicare, federal unemployment insurance taxes or Social Security on independent contractors.
According to the Internal Revenue Service, amounts withheld from employee wages represent nearly 70% of all revenue collected by the IRS. As of June 30, 2016, more than $59.4 billion of tax reported on Employer’s Quarterly Federal Tax Returns (Forms 941) remained unpaid.
The penalties are complicated, so here’s a simpler breakdown: failure to file Form 941 and similar forms: 2% 1-5 days late, 5% 6-15 days late, 10% more than 16 days late or within 10 days of first notice from the IRS, maximum 15%.
Don’t mess with the IRS – those three little letters strike fear into the hearts of employers and employees alike! Even if you use a payroll service, as an employer you’re still responsible for ensuring tax returns are filed on time and that all taxes are paid correctly.
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Paying less than minimum wage.
At least 19 states increased their minimum wages on or around New Year’s Day, according to the National Employment Law Project. The federal minimum wage had been at $7.25 since 2009.
Every state has a minimum wage, and while there are some different rules around student workers and apprentices, there are few exceptions. And some counties have a higher minimum wage; above that of both the state and federal requirements.
Make sure you know what your county, state and federal regulations require.
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An unsafe workplace.
The Occupational Safety and Health Act (OSHA) enforces workplace safety for employees. This includes everything from improper ventilation to poor ergonomic design of work spaces. An employer is also responsible for educating employees on workplace safety.
The maximum OSHA penalty amount for a serious violation as of Jan. 23 is $13,260.00. If it’s willful or repeated, it could cost you a whopping $132,598 per violation.
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Unpaid overtime.
The FLSA requires employees who are paid hourly that work more than 40 hours in a given week to be paid 150 percent of their hourly wage for additional hours.
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Workplace discrimination.
Sexual harassment falls under workplace discrimination, as does unequal treatment or harassment based on race, gender, religion, age or nationality, according to the Civil Rights Act of 1964.
In 2018, sexual harassment charges filed with the EEOC (Equal Employment Opportunity Commission) resulted in monetary benefits of $56.6 million for 7,609 cases.
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Unpaid vacation time.
The United States Department of Labor oversees and enforces more than 180 federal laws governing workplace activities for about 10 million employers and 125 million workers.
Their Fair Labor Standards Act (FLSA) doesn’t require employers to pay employees for unused vacation time. However, some states require payment of unused vacation leave upon termination. So, know before they go!
It seems like each year the laws get more complex, business owners face increased scrutiny and compliance becomes more important than ever.
By staying informed on the latest rules, filing the right paperwork at the right time and understanding your responsibilities, you can drastically reduce the chances that you’ll face legal issues in 2019.
It’s also worth it to hire an HR consultant. These laws are too critical for any organization to ignore, and inexperience or ignorance could cost you your business.
I have years of expertise helping companies prevent expensive problems and be prepared, as well as assisting those who have received violations and need to know how to do the right thing and protect themselves. Contact me for a free consultation.
Business Legal Concerns, Team Management