New laws went into effect on December 1, 2016 which give overtime a whole new meaning. The Department of Labor, Wage and Hour Division, finalized the changes to the Fair Labor Standards Act last May. The new changes guarantee a minimum wage for all hours worked during the work week and overtime pay of at least one and one-half times the employee’s regular rate of pay for hours worked in excess of 40 in a work week.
The Department of Labor (DOL) has updated the overtime law before, but this new implementation is quite different from past adjustments made. This change increases the White Collar Exemption salary threshold by more than 100%. Generally “white collar” exemptions in the past applied to people that worked in offices or other professional environments. Below are the four major changes:
The White Collar Exemption salary threshold was previously $455 per week or $23,660 per year. This has now increased to $913 per week or $47,476 per year. This means that salaried employees making less than $47,000 per year must be compensated for anything over 40 hours.
The Highly Compensated Employee salary threshold has increased from $100,000 per year to $134,004 per year.
There will now be automatic updates to the salary threshold every three years with the first update due to go into effect on January 1, 2020.
The final rule is quite involved with lots of exemptions, details and clauses.
Two key factors are:
The 40-hour benchmark must be calculated on a weekly, rather than a monthly basis. Therefore, an employee that works a lot of overtime at the end of the month, but less than 40 hours at the beginning of the month, is entitled to overtime for any week that they worked for more than 40 hours.
Employees do not have to be approved for the overtime that they work.
The new law has wide ramifications beyond employees making less than $47,476 a year. Employers will need to balance rather they will adjust an employees’ pay, modify their job descriptions or add in disciplinary actions for working overtime. This can all have an impact on employee morale and the amount of time off that employees are given.
It is important for an employer to figure out which of their employees will fall under this new law. The DOL has published a fact sheet which can be found at https://www.dol.gov/whd/overtime/fs17a_overview.htm, to assist with this. If an employer fails to comply with this law they may be subject to an IRS audit, DOL audit or even litigation. An employer will still have the flexibility to choose the options that work best for their workplace
A Buyer normally pays for the following:
Recording the new deed
Their share of the tax stamps. Tax stamps in New Hampshire are 1.5% of the purchase price and are split equally between the buyer and seller
The title examination and closing
The owner’s and lender’s title insurance policy
All costs associated with getting a new loan
A Seller normally pays for the following
Their share of the tax stamps
Any commission to the realtor for the sale of the property
To prepare the Purchase and Sales Agreement when no realtor is involved
Recording any lien release documents pertaining to their loan
For the preparation of the new deed conveying the property
Both parties share in the proration of the real estate taxes and there may be other miscellaneous costs associated with the sale. Give us a call at 603-836-5309, if we can help with the sale or purchase of your home!
Workers’ compensation and new businesses
By Paul Kfoury Jr.
In the early stages of starting a company, small business owners have many factors to consider. What your business does and what it requires of an employee has consequences from a workers’ compensation perspective. Understanding what exposure your company may have, and being proactive to prevent workplace injuries, can help lower the cost burden of workers’ compensation insurance.What is workers’ compensation (WC) insurance?
In a nutshell, it is insurance that covers an injury that arises out of and in the course of employment.
How many employees must a company have to require WC?
In New Hampshire, as few as one employee.
What is not covered under WC?
Circumstances vary, but these injuries are generally not covered by WC: self-inflicted injury • injury caused by intoxication from drugs and alcohol, assuming the employer did not know about the intoxication • employee-started fight, if the basis of it is personal in nature • driving to and from work, unless the worker is considered a traveling employee • participation in athletic/recreational activities, on or off premises, unless the employee reasonably expected, based on the employer’s instruction or policy, that participation was a condition of employment or required for promotion, increased compensation or continued employment • mental injury/illness arising from good faith action taken by the employer, including but not limited to: work evaluation, disciplinary action, job transfer, lay-off, demotion or termination
Can an employer still be sued?
Except for intentional torts, the state’s workers’ compensation statute bars injured employees who sustained a compensable injury from bringing action at common law or by statute. However, an employee can elect to bring action to recover damages for wrongful termination or constructive discharge. If the worker pursues this remedy, he/she waives claims for compensation allegedly caused by such termination or discharge.
What does WC insurance cover?
WC insurance specifically insures an employer for costs from a work-related injury such as lost wages, medical costs, permanent impairment awards, vocational services, and costs associated with an attorney to defend your company if there is a claim.
Paul Kfoury Jr. is a partner at Trombley Kfoury, P.A., a law firm specializing in workers’ compensation issues. He is past chair of the New Hampshire Bar Association’s Workers’ Compensation Section, and speaks with insurance companies and employers regularly. He also holds trainings and seminars involving WC issues.
Trombley Kfoury are proud to be a Sponsor for the Camp Allen Charity Golf Tournament. Here’s our Sponsor Hole with Chris Masters from Rowley Insurance sizing up the green. We had a great time at the Manchester Country Club.
October data from the Oregon Department of Consumer and Business Services states that New Hampshire has the ninth-highest workers’ compensation premiums in the Nation. This is the State’s worst ranking since Oregon began publishing its figures in 1994. New Hampshire employers pay an average rate of $2.40 per $100 in payroll for workers’ compensation insurance. That is 128 percent of the national median rate of $1.88 per $100 in payroll.