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Aug 1, 2013 - Labor & Employment Compliance Bulletin ... year in a row, a bill that sought to negate the notice requ
August, 2013

Labor & Employment Compliance Bulletin Annual Employee Acknowledgement Season Looms It’s that time of year again—the time for employers to examine their annual bulletin distribution processes to ensure all necessary bulletins will be distributed in a timely fashion and contain all the information required by law. Best practices suggest those employers with a strong audit trail will be in the best position in the event of any regulatory body investigation. There are still employers out there who were taking the wait-and-see approach on the New York Wage Theft Prevention Act. For the second year in a row, a bill that sought to negate the notice requirement for that act never emerged from committee. Thus, the NYWTPA notice requirement remains in place. All employers will need to ensure that they are ready to distribute the correct notices to all employees by February 1st of 2014 or face the likelihood of fines and further investigations. While New York is a key state on the annual notice landscape, it is important to remember that other states have yearly notice requirements as well. New Jersey has the Conscientious Employee Protection Act, (CEPA), and the upcoming Gender Fairness Notices, (awaiting release). In addition, it’s important for employers to keep in mind that several states require distribution of Earned Income Tax Credit notices on an annual basis. Employers need to assess the regulatory situation with regard to notices in all areas where they have a presence. States are constantly assessing employee rights, particularly with regard to wage payment, and many are having a closer look at implementing notice and acknowledgement requirements as part of that program.

Second Circuit Finds Executives Personally Liable for FLSA Violations A recent decision in the second circuit found that a company owner/CEO was personally liable for Fair Labor Standards Act violations even though he was not directly responsible for such violations. In Irizarry v. Catsimatidis, the court held that an individual with operational control over a business, including payroll and personnel matters is liable for damages under the FLSA regardless of how often then actually exercise that authority. Under the FLSA, employers are liable for double damages, plus attorney’s fees, interest, and costs. In the event of a class action, these costs can reach extreme heights. All employers, including senior management, need to ensure that any processes touching any portion of the FLSA should be above reproach. Employers should take proactive measures now to ensure they don’t get caught on the wrong end of a decision such as the one handed down by the second circuit.

Bottom line Employers should continuously monitor the compliance landscape to keep abreast of changes in state and federal regulatory requirements, as well as pertinent case law. Equifax Workforce Solutions can help simplify compliance with the various state, federal and judicial requirements through an easily-managed compliance platform that helps ensure compliance with FLSA provisions regarding employee notices and other key notifications. To learn more about how Equifax Workforce Solutions can help you stay abreast of all compliance requirements please send an email to [email protected], with the subject line of “Labor & Employment Compliance Bulletin.”

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