labor lawAdivision of labor law center

With layoffs and wage reductions mounting, many employers are besieged by pleas from help from employees and former employees. It is enough to touch the heart of even the most hard-nosed small business owner. Employer’s resources are strained to the limit, and often Human Resource pros just don’t have any more to offer.

As severance packages shrink, employees are increasingly demanding more from their former employers.

That’s why it is important for Human Resource professionals to know about a new resource they can direct workers to.

The federal government recently expanded GovBenefits, a program to provide information about government assistance and benefit programs.

GovBenefits is available at www.govbenefits.gov. The website is an excellent source on a number of resources for employees including: 

• Expanded unemployment insurance
• Continued health benefits
• COBRA premium reductions
• Federal training programs
• Disaster relief funds
• Temporary Aid for Needy Families (TANF)
• Food stamps
• Affordable housing
• Career Development 

GovBenefits recently launched a Twitter account to provide continuous updates about government resources available to workers and their families. The tweets will address new site content, and new government benefits programs. (more…)

One of the hottest HR topics right now is salary reductions for exempt employees. Many employers are faced with a choice of laying off employees, or using other tactics to reduce payroll.

When employers reduce exempt employees’ salaries, they must take certain precautions to avoid breaking the law.

One option to reduce payroll is to reduce hours for hourly employees. By having every hourly employee work 36 hours per week rather than 40 hours per week, an employer can reduce his or her payroll expenses by 10%. (In many cases, however, the cost of benefits remains constant.)

However, that solution won’t work for salaried exempt employees. Under the federal Fair Labor Standards Act Fair Labor Standards Act, or FLSA, employers must pay an exempt employee his or her full weekly wage, regardless of how many or how few hours the employee works per week. If the exempt employee works 60 hours per week, he or she is not entitled to overtime. However, if the exempt employee works 20 or 30 hours per week, he or she must still be paid the full weekly salary.

This raises a question for employers. Is there any legal way to reduce an exempt employee’s salary?  (more…)

Effective February 1, 2009 New York employers must give workers more notice of layoffs.

The New York State Workers Adjustment and Retraining Notification or WARN Act requires employers to provide 90 days notice to employees who will be laid off. The law applies to employers who are closing a plant, planning a mass layoff or a plant relocation that occurs on or after February 1, 2009. It does not apply to individual layoffs.

New York employers who are planning mass layoffs shortly after February 1, 2009 must act now to provide notice before the new law takes effect. The new law, Chapter 475, Section 25-A  of the New York code,  was passed by the state legislature on August 5, 2008.

According to the New York Department of Labor, the state WARN Act applies to any employer with 50 or more worker, who lays off at least 25 employees.

The law applies to (more…)

With the current economic crisis, many employers are considering giving workers additional unpaid time off during the holidays. This includes giving workers Friday, November 28 (the day after Thanksgiving) and/or Friday, December 26 (the day after Christmas) off without pay.

Other employers are considering closing for an entire week between Christmas and New Years.

However, these tactics raise issues around the payment of exempt salaried employees that every employer needs to be aware of. (more…)

With gas prices increasing, revenue declining and profit margins dwindling, many employers are taking a hard look at 2009 staffing. This may include combining positions, reducing staff by attrition, or laying workers off.

According to Sozeen Mondlin, associate general counsel with MITRE Corp, HR managers and employers should give careful consideration to choosing which employees to lay off.

“Given today’s economic climate, we all have to expect more activity in this area,” she said at the Association of Corporate Counsel annual conference in Seattle on October 19 to 21, 2008.

Mondlin said that employers are often sued by workers who (more…)