When running a business, you will certainly have a lot to think about. From ensuring the smoothness of your operations to keeping your employees satisfied and staying in compliance with all the rules and the regulations. This is exactly why you need to stay up to date with all the labor laws and the changes that are happening under those laws. Because, if you’re not up to date, then you certainly cannot stay in compliance either, and that is not what you want.
Navigating the complex employment landscape is certainly not easy, especially with all the changes that we are often facing. The good thing, though, is that there are tools that can help, so if you get more information on online payroll services, for example, you’ll realize that those can be vital for keeping you in compliance, while they also bring other benefits to the table. More on that later, though.
First things first. What you want right now is to get a better understanding about some of the labor law changes that have happened. In short, you want to be aware of those, so that you can ensure your own compliance, as well as avoid any kinds of disputes, lawsuits and, thus, disruptions in your business. So, what we are going to do right now is get you familiar with some of the changes you have to know, before we proceed towards helping you understand how those online payroll services we have mentioned can be of help.
Revised Overtime Rules
If you make the mistake of misclassifying your exempt and non-exempt employees, you could easily wind up paying hefty pay back liabilities, due to not paying for their overtime work. The minimum salary threshold for exempt employees has been updated, meaning that, now, employees who earn less than $58,000 per year are actually eligible for overtime. So, what you have to do is reevaluate your classifications for salaried employees, as well as ensure that you’re keeping proper records of their hours, which is something that, clearly, the online payroll service can help you with, eliminating room for errors.
Minimum Wages Increases
Another thing you absolutely need to know is that, while the federal minimum wage has remained the same, a lot of states have actually increased them. So, you may need to adjust your pay scales, and thus remain fair not only with the minimum wage earners, but with those that are earning above minimum wage as well. This will help you stay competitive on the market, and not lose great employees.
Here is some general info about labor laws you have to know: https://www.britannica.com/topic/labour-law
Paid Leave Laws
Moving on, some states and municipalities have also introduced family leave, paid sick leave, and similar benefits that are great for the employees. Of course, the laws regarding this vary from one jurisdiction to another, so you have to check them for your particular state before making any concrete moves and changes. Once you’ve reviewed the laws, make sure to update the leave policies if necessary, and perhaps even take things a step further and integrate some time-tracking solutions with the payroll software you may be using, in order to automate the leave accrual.
Workplace Safety
Workplace safety has always been important, and it is definitely something you shouldn’t take for granted. Meaning, thus, that you should be aware of any changes to the laws that deal with workplace safety. And, there have been some changes that you should definitely consider.
Basically, OSHA is still enforcing proper safety standards, and it is your task to check if you are in compliance with those. Some areas may still, for example, require employers to have COVID-19 exposure plans, but there are also other safety standards to follow, differing from industry to industry. In short, though, what you have to do is review your policies and check if they are in compliance with the state and the federal guidelines, as well as with HIPAA or other industry specific laws.
How Online Payroll Services Can Help You Stay Compliant
So, you are now familiar with some of the labor law changes that you should know to stay in compliance. As I’ve mentioned beforehand, online payroll services can help you achieve that compliance, as well as be beneficial in many other way. How is it, thus, that these software solutions can be so helpful?
First off, the automated tax calculations will ensure that you’re not making any mistakes come tax season. Then, some built-in compliance alerts can inform you of any labor law changes that you may need to know to stay compliant. Of course, the employee classification tools will also be of help, ensuring that all the classifications follow the necessary guidelines. There is, without a doubt, the benefit of easy reporting and record keeping. And finally, we cannot fail to mention that you can get multi-state payroll support with these tools as well, which is beneficial for businesses that have employees in different states.
