Tools help reduce mistakes about employee classification, pay

XpertHR LogoXpertHR is pleased to announce its alliance with ComplianceHR, a joint venture between global employment law firm Littler Mendelson and Neota Logic, to bring new tools to employers to ensure compliance in areas of complexity and business risk. These tools, now available alongside XpertHR’s comprehensive set of HR and employment law resources, help employers reduce mistakes about how employees and contractors are classified and paid, decreasing their exposure to regulatory fines, class action lawsuits and litigation, said Lori Brown, ComplianceHR’s President and Chief Operating Officer.

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Employers are under increasing pressure to assess risk regarding how they hire, engage and pay individuals for services and are in “desperate need of guidance regarding regulatory uncertainties to better mitigate risk,” said Alicia D’Angelo Smith, Product Manager, XpertHR.

Accordingly, Smith said, XpertHR pursued the alliance with ComplianceHR to provide additional support for companies undertaking workforce reviews in 2016 given the likely changes to the Fair Labor Standards Act (FLSA), expected to become final at some point this summer, as well as increasing enforcement efforts by the Department of Labor (DOL) and state regulators around the classification of independent contractors in the rapidly growing “gig economy.”

“The timing for this alliance could not be better,” said Brown. She further stated: “There is little question that the DOL has increased its focus on the validity of independent contractor classifications, even partnering with more than half the states on enforcement efforts. In addition, the annual rate of FLSA filings has more than quadrupled in the past 15 years and more than doubled since the last time DOL issued regulations in 2004. With the impending proposed rules and the anticipated heightened scrutiny once they are made final, that number is likely to grow.”

Tammy McCutchen, managing director at ComplianceHR and partner with Littler Mendelson, stresses that putting off classification reviews is risky. Instead, McCutchen urges employers to prepare now for anticipated DOL final rules.

ComplianceHR’s Navigator Suite™, available through XpertHR, is ideal for helping employers tackle compliance decisions. The suite currently contains two virtual risk assessment tools:

  • Ensure independent contractor classifications across the organization are proper and avoid liability for unpaid employment taxes, employee benefit obligations, overtime pay, unemployment insurance taxes, and workers’ compensation obligations (Navigator IC™).
  • Prepare for the new DOL overtime rules and ensure that employees have been properly classified as exempt to avoid overtime back pay lawsuits, regulatory fines and litigation as well as save countless hours involved in classification (Navigator OT™).

“These tools give employers a leg up in ensuring they have a well-oiled and compliant onboarding process to manage talent effectively, handle complicated decisions quickly and reduce legal risk,” Smith said.

To learn more about XpertHR’s alliance with ComplianceHR, visit http://bit.ly/1Vmk7am

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