BENEFIT ELIGIBILITY

overtime payreel - PayReel

What the new DOL proposal means for overtime

What the new DOL proposal means for overtime 4978 3319 Heidi McLean

Heads up: overtime exemptions are about to change. On March 7th, 2019, the Department of Labor (DOL) proposed new regulations which will make more than a million more people eligible for overtime pay.

The proposal raises the salary-level threshold 

The proposal increases the salary-level threshold for white-collar exemptions. Workers earning less than $35,308 a year ($679 a week) will be eligible for overtime even if they’re classified as a manager or professional. This is a scaled-back version of the Obama administration’s 2016 proposal, which sought to increase the cutoff to $47,476 in 2016 and automatically adjust the threshold every three years.

Other key points

  • Nondiscretionary bonuses and incentive payments (including commissions) satisfy up to 10 percent of the standard salary level.
  • Workers who earn at least $147,414 ($679 of which must be paid weekly on a salary or fee basis) are considered highly compensated and therefore exempt.
  • The expected effective date will be around January 2020.
  • The DOL will evaluate updates to the salary threshold every four years.

What it means for business

Scandals in the making

Nobody wants to be the center of the biggest scandal of the year. Still, wherever you find guidelines, you’ll also find someone trying to get around them. It behooves companies, however, to be proactive about new guidelines instead of trying to work around them. Just ask the happiest place on earth. For its not so happy dealings (broken down here), Disney agreed to pay $3.8 million in back wages for violations (including failing to pay overtime).

More people will be eligible for overtime 

The key point in the proposal stands to make over a million more workers eligible for overtime. Many companies and industries that traditionally require long hours have always made room for fudging paperwork. In some cases, companies negotiate a flat rate and contractors work as long as it takes to get the job done. Since it’s standard practice, submitting time sheets that read “9-5” when everyone knows it was actually 9-9 hasn’t necessarily seemed unethical or unfair to either party. That’s just the way it is. Or at least the way it has been. As attention increases, workers may start questioning their overtime eligibility.

A cultural shift 

The proposal also brings into question current pay practices and the broader culture they exist in. The more the press highlights these points, the more the people talk. And the more the people talk, the more the wink and nod approach will come under scrutiny. The frequency of corporate scandals similar to Disney’s points to a broader culture that tolerates or encourages finding a way around the rules. A 2014 study found that “Nearly nine in 10 (89%) fast food workers report that they have been the victim of wage theft at their fast food job, and most have experienced multiple forms of wage theft.” 

Nothing shifts culture quicker than attention. As laws change and contractors and workers start thinking “this relates to me,” there will be pushback against industry norms. And it’s not just the workers. The media love to find and expose wrongdoings.

The benefits of compliance are bigger than complying

A mutual expectation of a flat rate for an undetermined number of work hours doesn’t count as compliance. Duties and level of pay dictate whether or not someone is eligible for overtime, not tradition. Disney isn’t the only company bending the rules. They just got caught. While the circumstances differ, any industry can learn a few lessons from Disney about how to walk above board and avoid ending up in court. Disney said in a statement to the Orlando Sentinel, “We are adjusting our procedures to avoid this in the future.”

The benefits of complying with rules go far beyond avoiding scandals and fines. Companies who get ahead of the game and comply—without before being forced to do so in the courts—stand to maintain consumer and employee trust. Such trust is hard to earn but even harder to win back after losing it. Why gamble your business instead of just recognizing eventual changes to overtime regulations now?

 

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

workers comp - PayReel

When workers’ comp sucks: a cautionary tale

When workers’ comp sucks: a cautionary tale 6500 4333 Heidi McLean

An insurance company says a doctor provided false info. The doc has no comment. Meanwhile, the psychologist says the insurance overruled his decision and handled the case so poorly he’s not going to take workers’ comp cases anymore. And then there’s Neil Eckelberger — the guy in the middle of it all trying to get on with his life after a devastating accident at work left him with ringing ears and painful skin grafts. Seventeen months later, he’s still fighting with insurance. It’s a cautionary tale.

Any form of insurance is a gamble and we don’t expect it to be perfect. But we keep our end of the bargain by paying our premiums and we expect insurance companies to keep their end by covering the unexpected incidents we’ve insured against. The above story shows just how vulnerable we are to the companies we trust with our insurance policies. So let’s dig a little deeper into who needs workers’ comp insurance and where the industry is going.

Who needs workers’ comp insurance?

Offering proper insurance is crucial for every company with employees. Of course, the best claim is the one that’s never filed and we talked recently about how companies can mitigate risk when it comes to workers’ comp. The point remains, though. At its best, insurance protects the employee and the employer. By putting the onus on the insurance company to address claims, companies ensure against lawsuits for accidents and injuries that occur on the job while still ensuring workers get the care they need.

While some companies don’t want to offer coverage on such a small scale, some suggest that even freelancers need coverage. The higher the job risk, the more important the coverage. Freelancers who feel this investment might be important for them may consider checking if their state has a state-sponsored workers compensation fund where self-employed contractors may apply for coverage.

What else?

The cautionary tale above ends with the reporter saying the whole thing highlights the need for reform. Maybe it’s to be expected that a complex subject like workers’ comp would come with some issues. Take the following headlines (from this week alone!) for example:

  1. Do high health plan deductibles lead to more workers’ compensation claims?
  2. Participants in $200 million dollar workers’ comp scheme sentenced
  3. Orlando Apollos will start practicing in Georgia because of Florida workers’ compensation laws
  4. Workers’ compensation costs rise; Unified focuses on safety 
  5. Buffett confirms Berkshire Hathaway selling workers comp unit

These headlines indicate that workers abuse the system, employers are attempting to curb costs, health insurance issues may bleed over into workers’ comp, doctors are fed up, and Buffett is bailing. Perhaps these issues point to the canary in the coal mine that this battle is just beginning.

The bottom line

The list of reforms is long and everyone has a different opinion. But one thing isn’t up for debate: workers’ comp is important to both employers and workers.

The best workers’ compensation insurers will respond quickly and address claims fairly. As usual, some companies are better than others. You never know how an insurer will handle a claim until you’re involved. This guy Neil likely didn’t lose sleep over his coverage, but now he is really in a pickle. It’s a good idea to get personal recommendations. Ask people in your network who’ve had a front row seat to a claim how they felt their insurance company handled it. While cost is certainly a factor when choosing insurance, it pays to think beyond the numbers. If your coverage sucks, any claim you end up with will suck your time and energy into it. You have better things to do.

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

men on stilts - PayReel

If your benefits went with you, how far would you go?

If your benefits went with you, how far would you go? 4000 4000 Heidi McLean

The idea of a safety net takes its inspiration from a circus act. The net allows performers to leap from one bar to the next knowing that if they fall, they will be caught by the net instead of falling directly to the earth. On top of a regular paycheck, traditional employment comes with a safety net. Workers at traditional jobs have access to a variety of benefits, including some or all of the following: short-term disability insurance, health insurance, tax-advantaged retirement plans, training and development, advanced education support, workers’ compensation, paid vacation time, and sick pay. There are some real perks!

The idea of a portable benefits system is to provide a form of safety net to non-traditional workers (think contractors, freelancers, and on-demand workers) who do not have access to the same benefits aside from what they buy themselves. The premise is that the security of a fallback plan at its best allows for innovation, flexibility, and freedom. In theory, that in turn creates more entrepreneurs, more jobs, and more spending power. According to the Aspen Institute, a portable benefits system “would improve financial security and empower workers to take more control over their own economic future.”

Who pays for portable benefits?

Okay, so who’s going to buy and build this safety net? This, of course, is one of the foundational questions. Proposals vary, but in one option, workers, the government, and companies all contribute to a portable benefits account. The fund then covers medical insurance, workers’ pension, training and development, paid leave, and employment insurance. Such a system requires heavy government involvement, which has its critics. Another option would be for companies to contribute to a pool of money for non-traditional workers. That money would then be distributed to the workers through intermediaries or by the employers directly.

While some say both workers and employers can benefit, it could be a tough pill to swallow for employers, who may have to pay more, pass on costs to consumers, or limit the number of contractors they take on.

What’s ahead?

There are a lot of dogs in this fight. Uber (which has come under fire for their handling of employee classification) has provided what it calls guiding principles for a system and asked for a collaborative effort from lawmakers. For their part, lawmakers in Washington, California, New Jersey, New York and beyond have made proposals to address the subject. Even our neighbors to the north are wrestling with the options.

All this points to the fact that this subject is very much on the radar. All parties will continue searching for answers. Employers and the government will wonder who should pay for/administer such benefits and what level of involvement (if any) the government should have. No matter where the evolution takes us, it’s a hot topic and it pays to pay attention. And one question might be on workers’ minds above others: If benefits follow them, how far might they go?

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

woman working with tea and laptop - PayReel

States double down to support women workers

States double down to support women workers 3000 2000 Heidi McLean

Between the famous gender wage gap and a dead last ranking among developed countries for paid maternity leave, the United States isn’t winning the Olympic gold for female-friendly business practices. While the federal government is scrapping Obama-era changes aimed at promoting pay equity, some states are enacting new protections.

 

Protections for family

New York requires paid family leave. 

With a law that entitles men and women alike to paid leave, the operative word here is family. Eligible workers get 50% of their salaries (up to $652 a week) for eight weeks. Workers may take leave to bond with a new baby, adopt a child, or care for a sick family member. The law represents a step towards combating the so called “motherhood penalty” while also recognizing fathers and male caretakers. New York is now the fourth state (following California, New Jersey and Rhode Island) to offer similar protections.

Massachusetts and Vermont offer protections to pregnant and nursing workers.

In another attempt to combat the aforementioned penalty to those who are building their careers along with their families, Vermont and Massachusetts expanded protections for pregnant and breastfeeding workers.

Oregon requires greater schedule predictability. 

This law requires larger employers to give new hires more information about their schedules. While the approach may have unintended consequences, it’s based on the fact that unpredictable work schedules make the already difficult task of balancing family commitments especially hard. Companies must also provide workers plenty of advance notice regarding upcoming schedule changes.

Nevada provides time off for domestic violence victims.  

Beyond accommodating growing families and closing the wage gap, Nevada is taking protections to a whole new level. Their new law provides battery and assault victims with protections such as transfers, reassignments, and modified schedules.

 

Closing the pay gap

18 states raise minimum wage.

The reasons for the pay gap are layered and up for debate. Still, the fact remains: On average, women in the United States earn 80% of what men earn. Increasing the minimum wage in 18 states affects all minimum wage workers’ pocketbooks, and nearly two thirds of these workers are women.

Massachusetts requires equal pay for equal work.

The state joins a growing list and requires equal pay for equal work. Even though the Massachusetts law is considered one of the strongest of its type, it still doesn’t guarantee a true “fix” to the wage gap.

California prohibits questions on income history.

California follows Delaware and New York City and prohibits potential employers from asking applicants such questions. The theory here says asking for income history causes workers to be saddled with their wage gap from job to job.

 

The bottom line

These new laws attempt to protect women from damages to their career and income based on the simple fact that they often simultaneously build families and careers. We will watch how these new laws play out. In the meantime, it’s worth considering what Vermont (the state with the lowest gap) is doing and how other countries compare on the issue.

Note: Click here for an article (which we relied on heavily for our brief overview) with a more expansive view of each of these new laws.

 

About PayReel

At PayReel, we minimize the time and effort it takes to get you ready for your project, make sure you get paid quick and easy, and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes event payroll easier, faster, and seamless.

The next time you work an event or a production, tell your supervisor you love working with the PayReel team.

 

payreel hurricane harvey - PayReel

Hurricane Harvey: How to get support plus unique ways to give it

Hurricane Harvey: How to get support plus unique ways to give it 400 300 Heidi McLean

Hurricane Harvey has left much of America’s fourth largest city underwater. We’ve seen photos of harrowing rescues, and of submerged homes, buildings, and highways. We’ve heard reports of the months of cleanup and billions of dollars in recovery efforts ahead for Houston. Like so many, we at PayReel have been wondering what we can do.

The following resources provide ideas for those personally affected and those who want to support:

 

I’ve been affected. Now what?

The Texas Tribune offers information on shelters, flooded streets, and more here. Once you’re out of immediate danger, a simple way to set your friends’ and families’ minds at ease efficiently is by marking “I’m safe” through Facebook’s Safety Check.  You may also be wondering what’s next or trying to sort through a deluge of information and possible rumors. The Federal Emergency Management Agency (FEMA) provides a reliable Hurricane Harvey resource page for everything from safety tips and emergency phone numbers to rumor control.

Know your rights: Hurricane Harvey evacuees and/or first responders may be eligible for worker’s compensation or payroll relief.

As always, stay informed and ask questions.

 

I want to support relief efforts

It’s unfortunate, but true: disaster scammers are out there. Still, you can defend yourself against those ready to take advantage of compassionate hearts and make a few bucks for themselves. Beyond sticking with well-known charities like the Red Cross, Salvation Army, and United Way, you can also find vetted charity efforts through the IRS’s search feature. There are certainly unlisted yet still legitimate options, including Undies for Everyone, which is taking new underwear as well as monetary donations to buy underwear wholesale.

Wherever you choose to support, take the usual precautions. Avoid giving personal information to anyone soliciting donations. Use a check or credit card rather than handing over untraceable cash. You can also report suspected phishing attempts to the IRS here.

Ask your human resources department if your company is matching employee donations. You may even be able to donate the monetary value of sick leave.

In addition to donating food, money, and other items through such charities, you may wish to roll up your sleeves and volunteer your time.

 

The bottom line

Hurricane Harvey is going down as one of the worst natural disasters in America’s history. In these situations, words always fall short, and yet we do want to say that our hearts are with victims and evacuees as well as their friends and families. We also send endless gratitude to the rescue workers and volunteers stepping up to provide lifesaving efforts and comfort.

 

About PayReel

At PayReel, we minimize the time and effort it takes to get you ready for your project, make sure you get paid quick and easy, and have customer service agents on call around the clock to answer your questions. The PayReel team makes event and corporate payroll easier, faster, and seamless.

The next time you work an event or a production, tell your supervisor you love working with the PayReel team!

gig economy - PayReel

The gig economy: How to pay contractors and navigate benefits

The gig economy: How to pay contractors and navigate benefits 4166 2083 Heidi McLean

The gig economy offers benefits to workers and companies alike. While those benefits do include flexibility for workers and lower costs to employers, they don’t cover things we’ve grown used to such as built-in 401K plans, health insurance options, and worker’s compensation. For many independent contractors, that’s a problem. And as the gig economy’s slice of the economic pie grows, so does the problem. Currently, there is no roadmap telling you how to pay contractors fairly while keeping costs down. The good news is that we at PayReel have been on this road long enough to learn how to pay contractors legally and ethically.

 

Start with worker classification

First things first: classify workers correctly from the outset. A worker’s classification (whether they’re an employee or an independent contractor) guides what freelance benefits they’re entitled to by law. The rise of the gig economy has brought with it the rise of confusion over who is an employee and who is a contractor. Wherever gray areas and money meet, you will find lawsuits. True to form, legal disputes over worker classification have plagued everyone from Uber to FedEx. Following the rules and classifying correctly from the beginning saves time and potential legal troubles.

 

Stay aware of potential legal changes

From workers to legislators, people are thinking about how to manage the evolving landscape. Some envision an entirely new system with changing guidelines that suit changing times. Such a system might include “portable benefits” that travel with workers from company to company.

According to this article from the Pew Charitable Trusts, one bill proposes to:

“require people or companies that find work for and transfer payments to independent contractors — Uber, say, or a middleman who works with farm laborers — to contribute to a pool of money managed by an independent nonprofit. The broker might do that by charging consumers extra or by taking the money out of workers’ pay.

Contributions would be made at least monthly and would have to amount to either $6 per hour worked or 25 percent of the sum charged to the consumer, whichever is smaller. The money could be spent on paid time off, health insurance or other qualified benefits.”

We can only guess how things will change, but we do expect them to change. It behooves company leaders to stay in tune with these kinds of conversations and legal considerations.

 

Consider more than the bottom line

Some companies aren’t waiting for a legal mandate to make changes. Instead, they are voluntarily providing freelance benefits beyond their legal requirements. Care.com, for example, adds a small fee to each transaction, which converts to “benefits bucks” that service providers may use for expenses such as transportation. This kind of perk goes beyond the money in a worker’s pocket. Workers who feel valued are more loyal and do better work.  

 

Protect yourself

If you can’t (or just don’t want to) keep up with the rules and developments surrounding the on-demand economy, PayReel can keep up for you. Check out this handy guide to see if you might benefit from hiring a payroll services company. Not only does our team manage worker classification, payroll, and payroll taxes; as the employer of record we even take on all risk associated with a variable workforce. Going above and beyond in the ethics department isn’t just a warm and fuzzy notion. It’s a sound business decision, too.

 

About PayReel

When it comes to payroll taxes and so much more, PayReel makes your life easier. Producing multimedia content and executing live events is chaotic. At PayReel, we make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave all payroll services and details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.

Relax. We got it.

 

working overtime - PayReel

Overtime exemptions are on hold. How will it affect you?

Overtime exemptions are on hold. How will it affect you? 1756 1241 PayReel

 

A ruling slated to put an additional $1.2 billion per year in workers’ pockets is now on ice. Here is the state of the Fair Labor Standards Act (FSLA) and what it means for your business.

 

What exactly is  the FSLA?

The Department of Labor’s (DOL) FSLA includes new overtime exemptions. If and when it goes into effect, the law will nearly double the salary threshold (from $455/week to $913), thereby making up to 4.2 million more people non-exempt and eligible to be paid overtime.

On November 22, 2016, a week before the ruling was to take effect, a judge in Texas won a preliminary injunction against it. While the twenty other states that fought to end the act breathed a sigh of relief, the DOL cried foul and filed an appeal.

As of this posting, the battle continues.

 

What do stalled overtime exemptions mean for businesses?

Like all things involving government and money, it’s complicated. And it’s likely to cause headaches for anyone digging in to the nitty gritty details.

With the issue in limbo at a federal level, states are trying to figure this thing out on their own—which makes room for a lot of gray areas. Gray areas are where lawsuits live. There are different labor laws at the federal and state levels. In most legal situations, federal trumps state. It’s different with labor laws, though, because states are only required to use federal guidelines as a baseline.

Another place with plenty of room for confusion is worker classification, which we cover in an ongoing blog series here. Often, workers fall into both exempt and non-exempt classification categories, which affects eligibility for a slew of benefits, including overtime. In these cases, classification depends on a weighted scale of the employees’ duties. It’s shockingly easy to misclassify workers and rack up legal fees and fines before you know it. Classifying workers correctly the first time around puts employers in a better position to adjust to changing laws in the future.

PayReel’s policy pros—in conjunction with our custom PayReel OnLine software—protect your sanity and your finances by sifting through the legal complexities and taking responsibility for your workers. As the employer of record for our clients, we are the ones on the hook if we get it wrong. The good news is, that rarely happens.

With PayReel, you can hire who you want, when you want, without worrying about overtime exemptions and worker classification. As the ones who are legally liable for our employees, and morally liable to our clients, we’re dedicated to understanding the ins and outs of both so we can make the right decisions.

 

What’s the bottom line?

The end of the year is a great time to review your payroll practices to be sure you are compliant or are in a position to stay compliant as laws change. If you don’t have the time, resources, or expertise to make sure you’re not trapped in a legal gray zone, get in touch with a team who does. PayReel’s policy pros are available around the clock at 303-526-4900, or you can shoot us an email by clicking here.

 


 
Nat's notes

About the author

PayReel Customer Experience Manager Natalie “The Go Getter” McGinnis recapped 2016’s biggest news in freelancer management to help you prepare for 2017. Nat’s experience in recruitment and customer service set her up for success in providing laser-focused attention and assistance to the PayReel employees and clients who need it the most. Click here to read more of Nat’s Notes and meet the rest of the PayReel team by clicking here!


over time pay roll timesheet - PayReel

Ten questions to help you decide if you really need to pay for payroll services

Ten questions to help you decide if you really need to pay for payroll services 5472 3648 PayReel

Time is money. And when you have a tendency to get buried under onboarding, vendor payment, classifying temporary employees, and other hiring details, time is priceless. Here’s a brief quiz to determine if hiring someone to handle your payroll services might be worth the investment.

 

Do you regularly hire independent contractors and/or temporary employees?

 

Is said hiring and onboarding one of the most time-consuming parts of your role?

 

Do old school payment processes or corporate legal concerns cause frustrating bottlenecks?

 

Is your desk/desktop cluttered with binders, folders, and paperwork?

 

Have you ever made a contracting mis-hire because of a time crunch?

 

Do you get pulled into fighting payrolling fires at least once a month?

 

Would a high level of service free you up to focus on other aspects of business?

 

Do concerns about compliance, worker classification, IRS audits, and workforce headcount keep you up at night?

 

Have you ever lost favor with one of your best contractors by paying late?

 

Do you have a reputation among contractors for paying late?

 

Not everyone needs a service like PayReel (especially startups and small businesses), but if your blood pressure went up as you read the list above, you might need PayReel. For those who need quick/frequent access to qualified contractors or who want to take all the risk out of dealing with the independent workforce, PayReel is a headache free solution. PayReel’s independent workforce engagement solutions makes classifying, onboarding, and paying your freelancers painless, paperless, and personalized. It’s about time.

 

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail perfectly while making sure their clients think nothing of it. Relax. We got it.

man shrugging - PayReel

Implementing the Affordable Care Act (ACA) for Contingent Workers

Implementing the Affordable Care Act (ACA) for Contingent Workers 760 653 PayReel

Implementing the Affordable Care Act is challenging for any business, but for those who must provide insurance for temporary employees, it’s a real pain in the ACA.

Below are three of the biggest challenges (plus one solution to them all):

1) Interpreting and Following the Rules

Balancing a complex law like the Affordable Care Act with internal corporate legal policies is a trick. Throw in the chaos of the production world and things get borderline unmanageable. The laws are not uniform across states and jurisdictions, and like most things related to contract workers, are usually less than crystal clear.

2) Tracking Who Is Eligible and Who Will Be Soon

Non-variable employees get one set of benefits and variable employees get a separate set of benefits if they work 30+ hours a week on average. Monitoring when variable workers are getting close to eligibility and what exactly they’ll be eligible for requires time and/or specialized software.

3) Human Relations

The Affordable Care Act is constantly in the news and has people wondering what they are entitled to. Companies who don’t proactively communicate will lose credibility among employees. And, with healthcare becoming mandatory for certain employees, companies have the opportunity to leverage their benefits program into a competitive recruiting advantage if it’s done right.

Solution:

With high-maintenance laws such as the ACA, specialized knowledge is a must, but an internal department for managing all of its complexities isn’t always feasible or cost effective.

In these cases, a third-party service provider with the right experience can take all of the confusion out of providing insurance for temporary employees. The right provider will expertly handle the pressure of monitoring project-based workers and notifying the company who is going to be eligible soon, what to do once they are, and what the cost will be.

Having a proven system in place and proactively addressing these issues increases trust among employees and reassures them their company is on top of it. And happy employees are productive employees.

Still confused, or interested in learning more about how to manage ACA requirements? We’d love to hear from you.

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.

woman sick - PayReel

Payrolling & Paid Sick Leave Laws: What Employers Need to Do

Payrolling & Paid Sick Leave Laws: What Employers Need to Do 785 523 PayReel

If you’ve been waiting to look into the new paid sick leave laws until the dust settles, you can be assured the dust won’t settle and the time is now. Here’s what you need to do to get your payrolling in good shape and your people covered:

Know YOUR Rules:

From state to state and sometimes county to county, there is very little consistency in the rules for accrual and usage. Rules can change as an employee crosses city lines or even zip codes, creating a nightmare for employers to manage. It can get confusing.

Especially if your employees operate in more than one location (where guidelines differ) it can be worthwhile to find a contract payroll management partner that has software in place to track and manage the details automatically.

For example, PayReel OnLine’s Sick Leave Accrual Management (SLAM) system runs in the background, with no interaction needed on your part, to ensure full compliance for all PayReel employees working on your behalf.

Such a system automatically analyzes each employee’s timesheet, calculating hours accrued by location during that time period, and maintains an employee-specific balance. The system also allows employees to use accrued sick time only when the law allows, and with a supervisor’s approval.

No matter where your business operates, make sure you (or your payroll partner) is at the forefront of mandatory paid sick leave laws so employees are treated fairly and everyone remains compliant.

Monitor Accrued Time:

If you elect to pay contractors yourself, make sure you have a system in place to monitor updates in regulations as they are constantly evolving. You’ll also need to stay on top of how, when and where sick leave is earned and used.

Establish Your Internal Process:

Establish an internal process to be followed across your organization. For example, how will employees request sick time and have it approved? Who will be accountable for the regulation and administration of this program?

Want a little more background? Here’s what you need to know.

Need to determine whether your workers are actually employees? Visit our Worker Classification Employee series for more.

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.