Business Management Daily (04/27/12)

The U.S. Internal Revenue Service allows employers to change the status of their workers from independent contractors to employees for future tax periods without being hit with penalties or interest under its Voluntary Classification Settlement Program. However, employers currently being audited by the IRS, the U.S. Department of Labor, or a state agency cannot participate in the VCSP. Employers have raised concerns about what constitutes a state-level audit and whether the six-year statute of limitations applies to an employer’s general payroll liability or just VCSP-related payroll liabilities. Paul Carlino of the IRS Office of Associate Chief Counsel says the IRS could apply the six-year statute of limitations to general payroll liability but does not intend to do so.

Wage and Hour Laws (04/28/12) John E. Thompson

Companies can control or even cut labor costs and still comply with the Fair Labor Standards Act. For example, a company need not pay the same hourly rate for compensable travel time or training time as it pays for the employee’s usual work; companies can pay a lower hourly rate of not less than the minimum wage. The FLSA does not require that nonexempt workers be paid an hourly rate or paid in any specific way other than to comply with the FLSA’s minimum-wage, overtime, and timekeeping provisions. This means a variety of approaches can be taken such as a salary-plus-overtime plan, a day-rate plan, a piece-rate or job-rate plan, or a commission plan.

Business Management Daily (04/22/12)

While the Americans With Disabilities Act requires employees with disabilities to demonstrate that a major life function is substantially impaired by their disability, Minnesota employs a lower standard in which employees need only show that the condition materially impacts a major life function. However, employees still have difficulty proving a material impact, as evidenced by a lawsuit filed by a worker who requested accommodations for a peaceful and quiet work space before being diagnosed with attention deficit disorder and anxiety disorder, after which he did not request accommodations or offer medical reports. The employee was terminated after failing to make progress on a performance improvement plan, and the court sided with the employer in ruling that he was not disabled because he showed no material impairment in any major life function, including his ability to work. Experts say that whether employees with similar disorders are disabled must be considered on an individual basis, and if material impacts on major life functions are determined, supervisors can work with employees on accommodations.

Associated Press (05/01/12)

Georgia’s Labor Department has introduced a new online system to handle unemployment claims. The State Information Data Exchange will permit companies to respond quickly to the agency when a former employee files an unemployment insurance claim through the Web site. Companies can register for the system by logging on to the Labor Department Web site.

Associated Press (04/30/12) Emily Wagster Pettus

The Mississippi legislature has passed a bill that would change workers’ compensation for employees injured at work or for the survivors of employees killed at work. Injured employees found to be under the influence of alcohol or drugs would not be granted compensation. Injured employees would be required to file medical records that support compensation claims within 60 days. The changes are expected to reduce the premiums paid by companies.