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People Processes: Compliance Update – Applications, Min Wage, Tips, and Turnover.


Employment inquiries. A new law in Michigan prohibits local governments in the state from adopting ordinances that regulate the information a current or potential employer may request, require, or exclude on job applications or during the interview process. This includes local prohibitions on salary history inquiries, as well as local “ban-the-box” requirements. Notably, the law does not bar criminal background check requirements in connection with the receipt of a license or permit from a local governmental body.

Minimum wages. Nevada’s minimum wage is adjusted each year based on increases in the federal minimum wage or, if greater, the cumulative increase in the cost of living. According to the Office of the Labor Commission, the rates, effective July 1, 2018, will remain unchanged — $7.25 per hour with an offer of qualifying health benefits or $8.25 per hour without such an offer. The rate for daily overtime also stays the same because the minimum wage rate is not changing.

Tipped workers. Under the Consolidated Appropriations Act, 2018, an employer may not keep tips received by employees for any purpose, including allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit. In response to the new law, the U.S. Department of Labor’s Wage and Hour Division released Field Assistance Bulletin 2018-3, which clarifies its approach going forward — until new regulations are proposed — on tips and the tip credit. The bulletin confirms that employers that pay the full federal minimum wage may now allow nontraditionally tipped workers, such as cooks and dishwashers, to participate in tip pools. It also states that the agency will immediately begin using new enforcement tools to protect workers’ tips — including by recovering all tips unlawfully kept by employers, and imposing liquidated damages and civil monetary penalties as appropriate.

Sexual harassment. Companies are increasing their focus on sexual harassment policies and training due to the #MeToo movement, according to a recent XpertHR survey. Most employers (92 percent) have a formal sexual harassment policy, and over a third (38 percent) plan to update theirs this year. Overall, employers seem secure in their ability to combat and prevent sexual harassment. Sixty-eight percent of survey respondents believe their workplace culture is inclusive and provides equal opportunities for women, while 71 percent are confident that their employees feel safe to report sexual harassment.

Labor turnover rates, February 2018. The BLS defines the separation rate as the number of separations during the entire month as a percent of total employment. The following separation rates were reported for February 2018 for private industry and government. They are compared with the separation rates for February 2017.

  • Total nonfarm employment (private industry and government): 2.9 (2018); 2.8 (2017)

    • Total private employment: 3.2 (2018); 3.2 (2017)

      • Mining and logging: 4.1 (2018); 4.4 (2017)

      • Construction: 3.7 (2018); 4.3 (2017)

      • Manufacturing: 2.4 (2018); 1.9 (2017)

      • Trade, transportation and public utilities: 3.1 (2018); 3.3 (2017)

      • Information: 2.8 (2018); 2.4 (2017)

      • Financial activities: 1.9 (2018); 1.8 (2017)

      • Professional and business services: 4.6 (2018); 4.4 (2017)

      • Education and health services: 2.2 (2018); 1.9 (2017)

      • Leisure and hospitality: 4.9 (2018); 4.7 (2017)

      • Other services: 2.2 (2018); 2.9 (2017)

    • Government: 0.9 (2018); 1.0 (2017)

About the author, Rhamy

Rhamy grew up watching and working with his mother and grandmother in the seniors insurance market. This familiarity with the struggles faced by people trying to navigate the incredibly complicated and heavily regulated healthcare market led him to start Poplar Financial while working on his degree at the University of Memphis. After completing his MBA and Bachelors in Finance and Economics, Rhamy guided Poplar Financial through the disruptive opportunity that is the Affordable Care Act. Since then Poplar Financial has received numerous awards from major insurance carriers, and has completed its fourth year in a row of doubling in size. Now his team focuses on the processes around human resources, and specializes in providing companies with between 20 and 1000 employees with the payroll, benefits, and HR needs.

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