There are many regulations imposed on small businesses. Once you start hiring employees, you will need to abide by these ever-changing laws. Not only do you have to keep your finger on the pulse of federal agencies’ requirements, but you must also track changes at the state and local levels. Keep reading to learn about eight evolving employment and HR compliance regulations you’ll need to monitor.
1. Paying your employees at least minimum wage
The current federal minimum wage is $7.25 per hour. If you pay your workers less than that, you could be responsible for back wages and steep penalties.
Although the rate has been stagnant for over 10 years, there is a nationwide movement to increase it to $15 per hour. In fact, more than half the states and several localities have set their minimum wages higher than the Department of Labor’s standard.
If your state’s minimum wage differs from the federal limit, you will usually need to pay your workers the higher of the two. To find out how much you’re required to pay your team members, contact your state’s DOL branch.
2. Knowing when to pay overtime
A worker is exempt from overtime if they meet all of the following criteria:
- They are paid on a salary basis.
- They make at least $23,660 per year or $455 per week.
- They perform exempt job duties, such as supervising two or more people.
For all others, you will likely need to pay at least 1.5 times their hourly rate for any time worked over 40 hours in a single workweek. Recently, the DOL increased the salary threshold to $35,568 per year or $684 per week. This rule will go into effect on Jan. 1, 2020. If any of your employees are exempt from overtime but earn less