FORM I-9 WITH JUNE 3, 2009 EXPIRATION DATE STILL VALID: The United States Citizenship and Immigration Services (USCIS) announced on June 26, 2009 that the version of the Employment Eligibility Form I-9 (Rev. 02/02/09) is valid for use beyond June 30, 2009. Although the current Form I-9 lists an expiration date of June 30, 2009 in the top right-hand corner, the USCIS has requested the Office of Management and Budget (OMB) approve use of the form beyond June 30, 2009. While the OMB considers the USCIS’s request, the Form I-9 (Rev. 02/02/09) will not expire. Once the OMB approves the USCIS’s request, the Form I-9 will be updated with new revision and expiration dates. After that time, employers will be able to use either the current Form I-9 (with the 02/02/09 date) or the Form I-9 with the new revision date.
CHANGE IN FEDERAL MINIMUM WAGE RATE: Currently the federal minimum wage is $6.55 per hour. Effective July 24, 2009, the federal minimum wage rate increases to $7.25 per hour.
ABC OPPOSES AMENDMENT MANDATING E-VERIFY ON FEDERAL PROJECTS:ABC July 8 opposed Senate amendment S.A. 1371 to the 2010 Department of Homeland Security Appropriations Act (H.R. 2892) that would make the federal government’s voluntary electronic employment verification system, E-Verify, a permanent program and mandate that federal contractors use the system. H.R. 2892 passed the U.S. House of Representatives June 24, and despite a motion to table the amendment, it passed the Senate by a voice vote.
Before the vote, ABC sent a letter to members of the U.S. Senate expressing concern over the high error rate associated with the program and the heavy administrative burdens it places on small businesses. ABC pointed out that an error rate of only 1 percent applied to a workforce of more than 140 million workers could disqualify more than 1 million legal workers.
ABC expressed concern over the lack of safeguards for employers that comply with E-Verify but are provided incorrect information by the system when determining what action to take on an employee’s status. ABC suggested that safe harbor provisions be added to protect an employer from enforcement by the federal government or a lawsuit by the employee in that situation. “ABC believes that a workable, reliable, efficient, and easy-to-use employment verification system that meets regulators’ needs without unduly burdening commerce and hampering economic growth is needed by American’s employers,” the letter stated. “However, we do not view the current E-Verify program as meeting those benchmarks.”
ABC IS PLEASED TO ANNOUNCE A NEW OCCASIONAL ARTICLE CALLED AS A LAWYER: In this article we will answer questions asked by our members and provide insight into current legal questions that might be effecting your operations. If you have a question you’d like answered, feel free to submit it to Craig Martin, Lamson Dugan and Murray, cmartin@ldmlaw.com or Tim Engler, Harding & Shultz, tengler@hslegalfirm.com and a copy to Dick Johnson at djohnabc@aol.com
This week’s question is about reducing hours and pay of exempt employees. Given the current economic climate, a number of employers are considering reducing the work week for exempt/salaried employees. If it becomes necessary, what at is the best way to do this?
The difficulty in reducing exempt/salaried employees’ work weeks and pay is that the Fair Labor Standards Act (FLSA) requires that an exempt employee must be paid his or her full weekly wage, no mater how many or how few hours the employee works per week. And, if not done correctly, reducing an exempt employee’s salary when business is slow can change the exempt status of everyone in that job.
The Department of Labor (DOL) has recently made clear that an employer may not make deductions from salary due to day-to-day or week-to-week determinations of how much work is available. An employer may, however, implement a fixed reduction in salary effective during a period when a company operates a shortened workweek due to economic conditions so long as the reduction is not designed to circumvent the salary basis payment.
Some cost savings options an employer has are:
· implement a reduction in pay without reducing the work week;
· place exempt/salaried employees on week long furloughs;
· require mandatory or “voluntary” time off, but only to the extent the employee’s salary is replaced with accrued time off;
· implement a long term reduced work week with a corresponding reduction in pay.
Keep in mind that the minimum salary for exempt employees is $455 per week.
Several other factors may impact your decision to reduce hours or salaries for your salaried/exempt employees. And, the above cost savings measures are based on a review of Wage and Hour Opinion letters and FLSA regulations without regard to your particular situation. Accordingly, we recommend you consult legal counsel before reducing your exempt employees’ salaries to avoid potentially significant liability associated with Wage and Hour litigation.
SAVE THE DATE FOR UPCOMING WEBINARS BROUGHT TO YOU BY ABC NATIONAL AND THE CORNHUSKER CHAPTER:
July 15, 2009: Banking & Bonding
August 19, 2009: Leadership Development
September 16, 2009: Safety Essentials on the Jobsite
October 28, 2009: Labor Law Updates
Questions? For more information about ABC Webinars, visit www.abc.org/webinars.
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ABC AFTER-WORK WEDNESDAYS!
Come on by for an “ABC Business-to-Business After-Hours Event.” This will be a casual gathering of ABC members and prospects/guests purely to socialize in a relaxed environment. There isn’t a set schedule or agenda. The event is slated to begin at 4:30 p.m., and will probably wrap up around 7:00 p.m. Everyone is welcome to come and go as they please. Networking is a big part of doing business, so let’s throw a little fun into the mix.
WHEN: July 22nd (Wednesday) (Lincoln After Hours -
WHERE The Fox & Hound Date and Location TBA)
17602 Wright Street (West Center Rd)
Omaha, NE
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First Aid/CPR Training
July 16, 2009
7:00 – 11:00 a.m.
Omaha Training Center
$50 Member Price/$60 Non-Member Price
Contact Chris or Deb at 402-477-4451 to get signed up.
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30 HOUR OSHA TRAINING
Do any of your key personnel need 30 Hour OSHA Training?
Because of increased OSHA activity, several companies have shown
an interest in a 30 Hour OSHA class.
WHEN: July 31, August 7 & 21, 2009
WHERE: Mahoney State Park (Cottonwood Room)
TIME: 7:00 A.M. – 5:30 P.M.
COST: $395.00 member price -- $595.00 non-member price
Lunch and daily park permit fees provided by ABC
If you are interested, please contact Chris or Deb at 402-477-4451.