Take a look below for our most recent HR Hot Topic Postings.
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FLSA Regulations on Classifying Employees and Independent Contractors Updated by DOL
On January 10th, the U.S. Department of Labor announced updates to classifying employees and independent contractors. The updates will go into effect on March 11, 2024. The updated regulations repeal the previous ruling that went into effect on January 7, 2021. The new multi-factor economic realities test uses the below 6 factors in determining employee status.
- opportunity for profit or loss depending on managerial skill;
- investments by the worker and the potential employer;
- degree of permanence of the work relationship;
- nature and degree of control;
- extent to which the work performed is an integral part of the potential employer’s business; and
- skill and initiative.
For more information on the final ruling, click here.
To review the DOL’s FAQ page on the updated regulation, click here.
IRS Sets Optional Standard Mileage Reimbursement Rates for 2024
The Internal Revenue Service announced yesterday the optional standard mileage reimbursement rates for 2024. Effective January 1st, 2024, the standard mileage rate for the use of a car (also vans, pickups or panel trucks) is now:
- 67 cents per mile driven for business use, up 1.5 cents from the 2023 rate.
- 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces. This is a 1-cent decrease from 2023.
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023.
Click here to visit the IRS’s webpage for more information.
IRS Increases Annual Retirement Contribution Limits for 2024
On November 1st, the Internal Revenue Service (IRS) announced increases for 2024 contribution limits on pension and retirement plans. Read more about specific increases on the IRS’s website here.
Ohio Minimum Wage to Increase in 2024
Ohio’s Minimum Wage will increase to $10.45 on January 1, 2024. The tipped employee hourly rate will also increase to $5.25. To read additional information on the 2024 increase from Ohio.gov, click here.
Employers Must Use New I-9 Form as of November 1st
As a reminder, the new I-9 Employee Eligibility Verification form is the only acceptable form to use for the I-9 verification of employees as of November 1st. The new I-9 form was originally released by the United States Citizenship and Immigration Services (USCIS) on 8/1/23 and has an expiration date of 7/31/2026. Read more information on the USCIS website here.
What’s new about the form?
Click here to view the summary of form changes from the USCIS.
Michigan Minimum Wage to Increase in 2024
Michigan’s Minimum Wage will increase from $10.10 to $10.33 on January 1, 2024. The tipped employee hourly rate will also increase to $3.93. To read additional information on the 2024 increase from Michigan.gov, click here.
The NLRB Updates Status for Joint Employers
On 10/26/2023, The National Labor Relations Board (NLRB) released their final ruling that updates the standards for joint employers. The new rule will go into effect on 2/26/2024. For the full article from the NLRB’s website, click here.