by Katie Fischer, PHR, Iowa Bankers Association
Earlier this year the Department of Labor signed an agreement with Iowa Workforce Development to work together and share information to reduce incidence of misclassification of employees, to help reduce the tax gap, and to improve compliance with federal labor laws. The Department of Labor also has an agreement with the IRS to share information towards the same cause. Please go to this link for additional information.
On top of joining forces the Department of Labor has also issued a new video series, iPhone app and campaign, “Know Your Rights” to educate workers of their rights and how to file a complaint.
Due to this partnership, the HR team at Iowa Bankers highly recommends evaluating of employee classifications, with a strong emphasis on independent contractors, as this is the first area of focus between the departments.
To help as you evaluate your employee classifications here are some tools from the IRS and DOL:
1. Independent Contractors
2. Qualified Exemptions under FLSA
a. Many banks may feel their employees fall under the Administrative Exemption. Recently at a conference, the speaker gave some guidance to help when determining if the duties fall under the “discretion and independent judgment” factor when deciding exemption status:Ask yourself, does the employee……:
- have authority to waive or deviate from established policies and procedures without prior approval?
- have authority to negotiate and bind the institution on significant matters?
- plan long or short-term business objectives?
- provide consultation or expert advice to management?
- investigate and resolve matters of significance on behalf of management?
- represent the institution in handling complaints, arbitrating disputes, or resolving grievances?
- have authority to formulate, affect, interpret, or implement management policies or operating practices?
- As you are determining classifications, we also recommend running it by your legal counsel to get their input and approval.
The Iowa Bankers Association, Human Resources staff is available to assist with any questions you have may have.