HR Regulatory Updates

Federal Minimum Wage Changes effective July 24, 2008

This is the third and final increase required by the 2007 Fair Minimum Wage Act, which amended the federal Fair Labor Standards Act (FLSA). Effective July 24, 2008, the Federal Minimum Wage is: $7.25.

The Fair Minimum Wage Act did not change the FLSA's "tip credit" provisions. Currently, employers who use the "tip credit" are permitted to pay tipped employees a cash wage of $2.13 per hour, under the assumption that these employees will make enough in tips to earn the required minimum wage. Although the Fair Minimum Wage Act did not change the required cash payment, employers should ensure that tipped employees earn enough in tips to bring their wages up to the increased minimum wage rate.

A number of states have a minimum wage rate that is higher than the federal rate. Covered employers must comply with both state and federal laws.

More information on The Fair Labor Standards Act and The Fair Minimum Wage Act can be found at http://www.dol.gov/esa/whd/flsa/ .

New Employment Eligibility Verification Form 1-9 released August 31, 2009

U.S Citizenship and Immigration Services (USCIS) announced on August 31, 2009 that the Office of Management and Budget has extended its approval of Form I-9 (Employment Eligibility Verification) to August 31, 2012. Consequently USCIS has amended the form to reflect a new revision date of August 7, 2009.

Employers may use the Form I-9 with the revision dates of either August 7, 2009 or February 2, 2009. Revision dates are located on the bottom right hand portion of the form.

To learn more about employment eligibility verification and how to refresh your compliance procedures, see the CNCDA Immigration Update article by John Boggs of Fine, Boggs and Perkins, LLP.

The Lilly Ledbetter Fair Pay Act of 2009

The Lilly Ledbetter Fair Pay Act impact on fair pay discrimination lawsuits is significant. The Act makes suing for pay discrimination easier by altering a time limit on such suits. Employers must ensure that pay practices within their organization are non- discriminatory or face significant fines and judgments.

The Lilly Ledbetter Fair Pay Act of 2009 enacted on January 29, 2009 amends the Civil Rights Act of 1964 and states that the 180 day statute of limitation for filing and equal pay lawsuit regarding pay discrimination resets with each new discrimitory paycheck.

Under the Act, an individual subjected to compensation discrimination under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, or the Americans with Disabilities Act of 1990 may file a charge within 180 (or 300) days of any of the following:

• when a discriminatory compensation decision or other discriminatory practice affecting compensation is adopted;
• when the individual becomes subject to a discriminatory compensation decision or other discriminatory practice affecting compensation; or
• when the individual's compensation is affected by the application of a discriminatory compensation decision or other discriminatory practice, including each time the individual receives compensation that is based in whole or part on such compensation decision or other practice.

More information on the Lilly Ledbetter Act can be found at http://www.eeoc.gov/epa/ledbetter.html.

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