faces
                     ...from the HR Perspective
New MFYCO
Human Resource Update

June 2015

 

Overtime

  

 

 

Late yesterday President Obama announced plans to change the overtime pay threshold. Briefly, the proposed change will increase the dollar limit below which overtime pay must be paid from the current $23,660 to $50,440 per year. This affects those salaried employees classified as managers, executive or administrative staff. It appears that certain jobs such as teachers, doctors, lawyers and judges will continue to be exempt from overtime.

 

The proposed change will have a great impact on the affected payrolls. For example, a manager working 50 hours per week (only two hours per day) would receive a 37.5% increase in pay. Some estimates show that approximately five million employees will be affected by the proposed rule.    

 

This may not be all that will be proposed. President Obama will expand on this on Thursday in La Crosse, Wisconsin at, what the White House describes will be, an "event on the economy."

 

The new threshold of $50,440 is equal to the 40th percentile of weekly earnings for full-time salaried workers which appears to be the same target set by President Franklin Delano Roosevelt when the overtime rule was created. Other members of the White House are pushing for a lower limit - the 37th percentile of income. It appears that President Obama's proposal will link increases in the threshold to the 40th percentile rather than increases in the cost of living. This is the first proposed change in the threshold since President George W. Bush increased it in 2004. In the past, the Obama White House stated that inflation has eroded the threshold. However, using the Bureau of Labor Statistics inflation calculator, the $23,660 would become $29,812 in 2015 and not $50,440 making this much more than just an adjustment for inflation.

 

The cost of the proposed change is exacerbated by the additional related taxes and fees that accompany any wages such as Social Security, Medicare, unemployment, disability as well as benefits that are related to total wages.

 

While it may first appear that the proposed change will affect only small businesses or large businesses such as retail and food chains whose managers earn less than the $50,440, it will also affect all administrative staff as well. The White House assumes this change will spur the economy and develop the middle class. However, the effects of the change may be in contradiction to those assumed by the White House. Businesses that cannot afford the additional compensation and ancillary costs will either cut overtime, eliminate overtime and hire part-time workers, lower the base wage so that when overtime is added the total cost is the same or just eliminate jobs. None of these will benefit the economy or the affected individuals.

 

Please contact your legislators regarding your thoughts about this proposal:

 


If we may be of assistance with this issue or any other benefit or human resource matter, please contact us.

 

Sincerely,   

    

Michael F. Yates

President 

 

If you find value in this newsletter please let us know. Feel free to call me with a comment and/or ask a question at any time (908-689-4200) or send me an email (myates@mfyco.com). We offer this timely information as another benefit of your relationship with our company. If you feel a friend or colleague would benefit from receiving our newsletter, please feel free to forward a copy. 


You can view all of our newsletters by clicking the 'newsletter archives' link at our company website www.mfyco.com.

 

In This Issue
Help our Pollinators
MFYCO Facebook
Massachusetts: New Parental Leave Law Extends Protections to Male Employees
Office of Disability Employment Policy of the Department of Labor
Retirement Plan -- Reporting and Disclosure Requirements Help
eLaws Quick Link
Retirement Plan Limits
Track Government Spending
Terms of Use
  

Help our Pollinators

 

 

 

Our tremendously valuable pollinators, known to society as honey bees, native bees, and other insect pollinators, birds and bats are critical to our economy. Honey bee alone provide $15 billion in value to agricultural crops each year and ensure that we have ample fruits, nuts, and vegetables in our diets.  

 

Our pollinators are struggling. Last year beekeepers lost about 40% of honey bee colonies, threatening the viability of their livelihoods and the essential pollination services their bees provide to agriculture. Even the Monarch butterfly is at risk. The number of Monarchs has decreased in the Mexican forests by 90% or more over the past two decades. In response, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA) formed an interagency task force to create a strategy to promote the health of the honey bees and other pollinators. The Task Force has developed a three pronged strategy to promote pollinator health.

  1. Reduce honey bee colony losses to economically sustainable levels;
  2. Increase monarch butterfly numbers to protect the annual migration; and
  3. Restore or enhance millions of acres of land for pollinators through combined public and private action.

Increasing the quantity and quality of habitat for pollinators is a major part of this effort. Federal buildings are constructing pollinator gardens and millions of acres of federally managed lands and private lands are being restored to support these habitats.

 

The President has emphasized an "all hands on deck" approach to promoting pollinator health. People of all ages and communities across the country can assist by researching which pollinator species lives near you then plant a pollinator garden, or set aside some natural habitat and try to refrain from the use of pesticides.

 

Corporate America, how can you bring bees to your properties? The answers follow in the attached documents.

 

 

 
Invitation to MFYCO Facebook
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Massachusetts: New Parental Leave Law Extends Protections to Male Employees

 

As of April 7, 2015, a new law replaced the Massachusetts Maternity Leave Act (MLA), which provided only female employees with eight weeks of job-protected maternity leave for the birth or adoption of a child. The extension of parental leave to male employees will require significant policy changes for Massachusetts employers with fewer than 50 employees, as they are not already covered by the Family and Medical Leave Act (FMLA) which applies to both male and female employees.

 

Parental Leave Law Now Consistent With EEOC Guidance

 

The law now provides that any Massachusetts employee who meets the eligibility requirements of the MLA is entitled to eight weeks of parental leave and must be reinstated to the same or similar position he or she held before the leave. The new law is consistent with guidance from the federal Equal Employment Opportunity Commission, which has declared that "parental leave must be provided to similarly situated men and women on the same terms."

 

Protections for Leave Beyond Eight Weeks

 

In addition to expanding the MLA to apply to male employees, the parental leave act makes another key change to the current law. Under the new law, if an employer agrees to provide an employee with more than eight weeks of parental leave, the employer cannot deny the employee rights under the law (such as reinstatement) unless the employer: 1) clearly informs the employee in writing that taking longer than eight weeks of parental leave will result in a denial of reinstatement or loss of other rights and benefits, and 2) does so prior to the beginning of the parental leave and again prior to extension of that leave. If an employer does not take these affirmative steps but agrees to extend an employee's parental leave beyond eight weeks, the entire period of leave will be job-protected under the new law.   

 

Additional Changes

 

The new parental leave act also made the following changes to the MLA:

 

*It covers employees who have a child placed with them pursuant to a court order.

 

*It clarifies that any two employees of the same employer shall only be entitled to a total of eight weeks of parental leave.

 

*If an employer requires an employee to complete an initial probationary period as a term of employment, the period cannot exceed three months for purposes of eligibility under the parental leave act.

 

*An employee is allowed to provide notice "as soon as practicable if the delay is for reasons beyond the individual's control," rather than the previous requirement of at least two weeks' notice.

 

Are you in Compliance?

 

If you have locations in Massachusetts or employees who may be covered by the expanded law, you should review and revise your leave policies to be consistent with the new parental leave act. If you are covered by the FMLA, be aware that Massachusetts employees who have exhausted their FMLA leave for reasons other than those covered by the Massachusetts statute are still entitled to parental leave under the new law.

 

 

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Office of Disability Employment Policy (ODEP) of the Department of Labor (DOL)

 

 

 

This month's installment of The United States Labor Department (DOL), Who Are They, What Can They Offer You? will be covering the ODEP.

 

We covered Occupational Safety & Health Administration (OSHA) in our December issue, the Wage and Hour Division in February's issue, we delved into the Employee Benefits Security Administration (EBSA) in March, we explored Employment and Training Administration (ETA) from a business perspective in May and today we will provide you with some contact information on integrating the disabled into your workforce.

 

Since the fall of 2001, the ODEP's mission is to develop and influence policies and practices that increase the number of quality employment opportunities for people with disabilities.

 

In 2014 the ODEP continued to support, co-manage or collaborate in approximately 55 programs. The following are just a sampling of these programs.

  • Add Us In consortia
  • Job Accommodation Network, National Collaborative on Workforce and Disability for Youth, National Center on Leadership for the Employment and Economic Advancement of People with Disabilities, Partnership on Employment and Accessible Technology
  • Employment First State Leadership Mentoring Program
  • Inclusive Service - Use of Social Security Work Incentives, a white paper on the use of social security work incentives to promote work-based learning in youth employment and training programs with a particular focus on national service programs, such as AmeriCorps and AmeriCorps VISTA
  • Ladders of Opportunity - a public transit initiative
  • National Employer Policy, Research and Technical Assistance Center on the Employment of People with Disabilities
  • National Employer Policy, Research and Technical Assistance Center on the Employment of People with Disabilities will be managed and operated by The Viscardi Center in Albertson, NY. This center is a resource to assist employers with recruiting, hiring, retaining and promoting people with disabilities, with a focus on federal agencies, federal contractors, small businesses and state governments. Call 1-855-AskEARN (1-855-275-3276) or go to their website: http://askearn.org
  • PEATworks.org - a comprehensive web portal designed to help employers and the technology industry adopt accessible technology as part of everyday business practices so that all workers can benefit.
  • Return to Work Initiative
  • Workforce Innovation and Opportunity Act (WIOA)
  • Workforce Recruitment Program co-managed with the Department of Defense

Communications Issued in 2014:

  • Promoting-Financial-Capability-Of-Workers-With-Disabilities (Memorandum)
  • Best Practices in Employee Retention and Return-to-Work: An In-Depth Look Inside an Exemplary American Corporation (Report)
  • Employer Engagement Strategy: Workforce Inclusion (White Paper)

If you have questions on integrating the disabled into your workforce click here for more information.

 

 


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Retirement Plan -- Reporting and Disclosure Requirements Help

 

Administrators or sponsors of retirement plans are generally required by law to report certain information to the IRS, the Department of Labor and the Pension Benefit Guaranty Corporation, and to send disclosure notices to affected parties depending on the plans' type, size and circumstances.  

 

The Retirement Plan Reporting and Disclosure Requirements Guide was prepared by the IRS as a quick reference tool for certain basic reporting and disclosure requirements for retirement plans under the Internal Revenue Code and provisions of the Employee Retirement Income Security Act of 1974 (ERISA) administered by the IRS. The Guide is not intended to be an exhaustive list. It should be used in conjunction with the DOL Retirement Plan Reporting and Disclosure Guide.  

 

Please be sure to check for current laws and regulations on other DOL reporting and disclosure provisions on EBSA's website

   



 What would you like to see in a future issue?

Contact our office with your suggestions.

  email: info@mfyco.com
 

 
 

 

2015 Retirement Plan Limits  

All limits are based on the calendar year.  

   

 

2015

2014

2013

Maximum Annual Defined Benefit

$210,000

$210,000

$205,000

Maximum DC Annual Addition ($$)

$ 53,000

$ 52,000

$ 51,000

Maximum 401(k) Deferrals

$ 18,000

$ 17,500

$ 17,500

Older EE Catch-Up Contribution

$   6,000

$   5,500

$   5,500

Maximum Plan Compensation

$265,000

$260,000

$255,000

Highly Compensated Threshold

$120,000

$115,000

$115,000

Key Employee in a Top-Heavy Plan

$170,000

$170,000

$165,000

SSA Social Security Wage Base

$118,500

$117,000

$113,700

PBGC Maximum Monthly Guarantee*

$5,011.33

$4,943.18

$4,789.77

Maximum DC Annual Addition (%)

100%

100%

100%

Social Security Tax - Employee

6.2%

6.2%

6.2%

Social Security Tax - Employer

6.2%

6.2%

6.2%

Medicare Tax**

1.45%

1.45%

1.45%

DC Plan Deduction Limit

25%

25%

25%

Definition of Compensation for DC   Plan Deduction Limit

Includes

Deferrals

Includes Deferrals

Includes Deferrals

*Life Annuity at age 65

 

 

 

** Individuals with earned income over $200,000 pay an additional 0.9% in Medicare taxes

 

 

 

If you have not received our business card with these numbers printed on it and would like one, please let us know! We would be happy to mail you one (or a few to share!)


 
about MFYCO ... 

  • Michael F. Yates & Company, Inc. can help you with a variety of services ranging from retirement plans to providing results-oriented survey instruments, training and development programs for your employees. Our products and services are intended to help you maximize the effectiveness of your Human Resources function.
     
  • These products and services incorporate our years of experience so that you receive rapid results and exceptional value. From onsite consulting, to strategic business integration, to Web enablement, we understand how Human Resources can be applied to solve your problems and achieve your goals. As a result, we can help you get the most out of your investment and turn your most precious resource into a competitive advantage.
     
  • We offer Consulting, Retirement Planning, Pension and 401(K) both qualified and non qualified Plans, Welfare Plans, Communications, Computer Systems, Executive Plans, Compensation, Mergers, Acquisitions, Divestitures and Other Services. 
     
  • We offer a true and honest, Client Partnership.
     

Take the Michael F. Yates & Company, Inc. challenge!

Call us today ... 908-689-4200 

 

 
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 How to Track Government Recovery Spending

 

"The Board shall establish and maintain...a user-friendly, public-facing website to foster greater accountability and transparency in the use of covered funds. The website...shall be a portal or gateway to key information relating to the Act and provide connections to other government websites with related information." 

 
 
Michael F. Yates & Company, Inc. 
_________________
 
 
101 Belvidere Avenue
P.O. Box 7
Washington, NJ 07882-0007 
 
908-689-4200

fax: 908-689-6300
 
email: info@mfyco.com

 

 

 
Our staff and firm are proud
members
of the following professional organizations:

Society of Actuaries
 
American Society of Pension Professionals & Actuaries

Society for Human Resource Management
  
GAPS (Global Association Pension Services)

WorldatWork

 American Management Association

 

National Federation of Independent Business

Better Business Bureau

 

 

  
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Concluding Note

As always, any statements regarding federal tax law contained herein are not intended or written to be used, and cannot be used, for the purposes of avoiding penalties that may be imposed under federal tax law or to market any entity, investment plan or arrangement.