Header Right

STAFFING AGENCIES

Hot Savings for New Jersey Employers August Deadline to Reduce SUI Rates

by

Did you check your NJ SUI rates?

Over the last few weeks, all New Jersey employers received a Notice of Employer Contribution Rates.  This is not a bill, but rather a summary of the manner in which the NJ Department of Labor calculates the employer contribution rate for unemployment and disability.  This form enables you to determine whether a voluntary contribution would save you money in the subsequent year. 

 Can I reduce the NJ SUI rate?

A voluntary contribution increases the reserve balance and may reduce your contribution rate.   Each employer should calculate the amount of the voluntary contribution required to reduce the rate.  The required voluntary payment should be compared to the savings realized from a lower rate. 

The unemployment expense is a substantial component of your labor cost. Business owners should give it careful attention. If you wish to make a voluntary contribution to your reserve balance you only have 30 days from the notification date (July 27, 2016) to do so. We recommend that you verify all the NJ DOL calculations including the amount of the employer contributions and the benefits charged to your account.  Report any discrepancies to the NJ Dept. of Labor. 

By making a voluntary payment, employers may reduce the NJ SUI rate for the coming year.  Please be aware that this payment increases your reserve balance and helps reduce the NJ SUI rate in future years as well.  

If you would like assistance in determining if a voluntary contribution will save you money, please do not hesitate to contact us immediately. We will provide you with an illustration of the benefits which you stand to reap from making such a contribution. Within the 30 day period you will be able to weigh the considerations and act accordingly.

Hot Savings – Reduce NJ SUI Rates in August

by

 

What’s my New Rate?

In July all New Jersey employers received a Notice of Employer Contribution Rates.  This is not a bill, but rather a summary of the manner in which the NJ Department of Labor calculates your employer contribution rate for unemployment and disability.  This form enables you to determine whether a voluntary contribution would save you money in the subsequent year.  A voluntary contribution increases the reserve balance and may reduce your contribution rate.  In many circumstances a voluntary contribution represents an excellent opportunity to reduce labor costs. 

The Clock is Ticking

The unemployment expense is a substantial component of your labor cost. Staffing agencies should give it careful attention. If you wish to make a voluntary contributionto your reserve balance you have 30 days from the notification date to do so. In addition, we suggest that you verify the amount of the employer contributions and the benefits charged to your account.  Report any discrepancies to the NJ Dept. of Labor.

 Won’t my Payroll Company Take Care of This?

Outside payroll services generally don’t test the new rates for cost saving opportunities. We can assist you in determining if a voluntary contribution makes sense for you. We can provide you with an illustration of the benefits you stand to reap from making such a contribution. You will be able to weigh the considerations and act accordingly. 

 

 

 

Turn OSHA Decision for NJ Staffing Agencies into an Opportunity to Shine

by

warehouse workers

A recent case involving the U.S. Department of Labor’s Occupational Safety & Health Administration (OSHA) and some New Jersey staffing agencies sends a signal that temporary staffing agencies are obligated to do more than just place people in a job.

In certain circumstances, agencies must also provide adequate medical evaluations, training and other services, according to OSHA, which recently cited two staffing agencies that had placed workers at a Fiabila USA Inc. nail polish manufacturing plant in Mine Hill, N.J.

Here’s What Happened

Following a complaint, an OSHA inspection determined that Fiabila workers and temporary workers employed by two NJ staffing agencies were exposed to hazards and other dangerous safety and health violations while working at the plant.

A Dover, NJ-based staffing firm provided general labor staff to the nail polish manufacturing plant, while a NJ clinical & scientific staffing firm placed employees in Fiabila’s quality control laboratory. Both staffing agencies were cited for failure to train temporary workers about such issues as chemical hazards, emergency action plans, and proper use of a respirator. In addition to steep fines levied by OSHA against Fiabila, the Dover firm faces $18,000 in fines for three “serious” violations, while the Parsippany office of the clinical & scientific staffing firm was cited for two “serious” citations that carry a $12,000 penalty.

“Whether temporary or permanent, workers have a right to a safe and healthy workplace,” says Kris Hoffman, director of OSHA’s Parsippany Area Office. “Staffing agencies and host employers are joint employers of temporary workers. Both are responsible for providing and maintaining safe working conditions free of potentially fatal hazards.”

So What Does This Mean for Me?

OSHA seems to be taking a hard line against staffing agencies when it comes to training. The agency appears to be taking the position that it’s not enough to simply contract with a client—instead, staffing agencies need to identify and comply with onsite safety training and other requirements. This could mean more expenses for staffing agencies as they dig deeper into understanding a client’s operations.

There is a positive side to this, since a staffing agency that thoroughly understands its clients’ operations may be able to stand out from competitors by offering better client service.  A staffing agency that takes a leading role in training its workers can use this as a selling point to woo potential new clients.

Thanks-So What Should I Do?

Urbach & Avraham works with several excellent law firms that specialize in employment law and OSHA issues. We can help you work with employment attorneys to consider your agency’s responsibilities, and to identify documentation requirements, program activity and other ways to minimize your potential exposure to liability.

NJ Court Gives Stiffed Workers Six Years to Pursue Unpaid Wages

by

Employees in NJ now have six years, instead of two years, to bring certain claims for additional wages, thanks to a decision handed down by the New Jersey Federal District Court—Meyers et al v. Heffernan et al, No. 3:2012cv02434 (D.N.J. 2014).

Here’s What Happened

The plaintiffs in the case were commissioned salespeople. In 2010, they filed a civil suit alleging that in 2007, executive officers of their (since-bankrupt) employer, Mortgage Lenders Network USA Inc., had stopped paying them the commissions they had earned, in violation of the New Jersey Wage Payments Law (WPL) and other regulations.

The defendants, however, claimed that the WPL carries a two-year statute of limitations; which would bar the employees’ wage-claims, since they were filed more than three years after separating from the Mortgage Lenders Network.

 

But the court took an expansive view. Looking beyond the strict terms of the WPL, it found that “the nature of the injuries identified with the plaintiffs’ cause of action are more analogous to breach of contract…” and held that a private course of action under the WPL is instead subject to the six-year statute of limitations that is provided by N.J.S.A. 2A:14-1 for breach of contract claims for economic harm.

So What Does This Mean for Me?

For some time now, New Jersey business owners’ exposure has been on the rise, thanks to a jump in the number of audits by both the state Department of Labor and the federal DOL. By tripling the statute of limitation for this kind of case, the unpublished court decision could further expand the exposure of business owners to additional wage lawsuits.

Thanks—So What Should I Do?

First, make sure that your wage-hour and other guidelines comply with local, state and federal standards. Then, be sure that your staff has been made aware of the guidelines, policies and procedures, and that they are actually being followed.

Is There Anything Else I Should Know?

Yes. Even if you and your staff are paying people properly, you have to document the data. Otherwise it could come down to a case of your word versus someone else’s.

Make sure that you maintain adequate time records; weekly time sheets which contain the daily hours worked as required for hourly wage earners. Ensure that the time sheets are signed by the appropriate personnel.

Finally, keep those records in a safe place for at least seven years. Many business owners think they only need to keep wage and hour records for three years, but as we’ve seen with this latest court case, keeping them longer can be safer. Urbach & Avraham has many years’ experience handling federal and state DOL audits for staffing and non-staffing firms. We work closely with our clients to present their time records and documentation to the DOL in the most favorable manner.

Don’t Get Mixed Up Over Mixed-Wage Overtime

by

 

In a bid to stay profitable, many businesses are operating with a lean staff. But even with fewer employees, work still needs to get done in a timely manner, so it’s no surprise that some companies are increasingly asking employees to put in more hours. Calculating overtime pay for non-exempt, or hourly workers—who must generally be paid 1.5 times their base hourly pay once they work more than 40 hours in a week—is pretty simple.

An employee may do different tasks at different hourly rates

But what happens if an employee has two or more job titles at the same business, and receives a different base hourly pay for each job? Then things get a little more complicated, but it’s not too tough to determine the wages that are due.

Basically, the employer determines a “blended” overtime rate by using the “weighted averaged” method. The first step is to determine the total gross wages due on a straight-time basis (hours worked at job title “A” times hourly rate, plus hours worked at job title “B” times the “B” hourly rate, and so on). Then take that gross total and divide it by the total number of hours worked to obtain the “regular” blended hourly wage.

Now take that blended “regular” hourly wage and divide it in half to determine the additional “premium” (half-time) rate that’s due to the employee. Finally, add that “premium” rate to the “regular” blended rate, and multiply that by the number of hours worked in excess of 40 hours. Voila, you have the blended overtime premium that’s owed to the employee.

An example

Here’s an example. Let’s assume that William works as an hourly draftsman at $22.00 an hour; but is so talented that he also spends part of each week developing his employer’s Web site, for which he gets $39.00 an hour. Let’s further assume that in a single week, William works for 30 hours as a draftsman, but puts in another 15 hours developing the company’s Web site.

So in this week, William put in a total of 45 hours. He earned $660 (30 hours x $22.00 an hour) for his draftsman’s work, and $585 (15 hours x $39.00 an hour) for his Web development work. We would calculate William’s overtime rate as follows:

30 hours x $22.00 per hour = $660

15 hours x $39.00 per hour = $585

Total gross = $1,245

That total straight-time gross ($1,245.00) is then divided by the total hours worked (45) to calculate the “regular” (straight-time) blended hourly wage, which is equal to $27.67 per hour. Of course, William is still due the additional premium pay (half-time) for the five overtime hours he worked. So the average “blended” straight time hourly rate ($27.67) is divided in half, yielding a half-time rate of $13.83 (rounded to the nearest tenth) per hour.

The 5 overtime hours are multiplied by the “blended” overtime premium of $13.83, to yield a total “premium pay” of $69.17 (if you do the multiplication, the difference is due to rounding), which is added to the original gross amount of $1,245.00, giving us the new gross amount of $1,314.17, which is the amount that must be paid to William for the week.

Both the state and US Department of Labor are paying more attention to wage-and-hour calculations, and an increasing number of wage and hour lawsuits are being filed. To stay on the safe side, be sure to consult with your accounting and/or legal advisor if you have any employee classification, overtime or other questions.

NJ Employers-Reduce Your Unemployment Tax Rates-August Deadline

by

Did you check your NJ SUI rates?
In July all New Jersey employers received a Notice of Employer Contribution Rates. This is not a bill, but rather a summary of the manner

in which the NJ Department of Labor calculates your employer contribution rate for unemployment and  disability. This form enables you

to determine whether a voluntary  contribution would save you money in the subsequent year.

Can I reduce the NJ SUI rate?
A voluntary contribution increases the reserve balance and may reduce your contribution rate. Each employer should calculate the amount

of the voluntary contribution required to reduce the rate. The required voluntary payment should be compared to the savings realized from a lower rate.

The unemployment expense is a substantial component of the labor cost of staffing agencies. You should give it careful attention. If you wish to make a

voluntary contribution to your reserve balance you have 30 days from the date of your notice to do so. We recommend that you verify all the NJ DOL

calculations including the amount of the employer contributions and the benefits charged to your account. Report any discrepancies to the NJ Dept. of Labor.

By making a voluntary payment, employers may reduce the NJ SUI rate for the coming year. Please be aware that this payment increases your reserve

balance and helps reduce the NJ SUI rate in future years as well.