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CEO pay ratio reporting for 2018

CEO pay ratio reporting for 2018

By on Nov 7, 2017 in Blog, Compliance | 0 comments

Starting in January 2018, public employers must disclose the ratio of CEO pay to median employee pay to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Near the end of September, the U.S. Securities and Exchange Commission [SEC] published interpretive guidance in the Federal Register explaining the flexibility employers have when implementing CEO pay ratio reporting.  Remember that public employers must begin reporting the ratio of CEO pay to median employee pay in their 2018 proxy statements. The SEC provided the guidance, which can be found here, in an effort to address the unexpected challenges companies have been facing as they prepare to comply with the pay ratio rule.  In general, the new guidance eases compliance and allows companies to use readily available information to produce the disclosures. In particular, the new guidance: Clarifies the use of reasonable estimates, assumptions, and methodologies, and statistical sampling permitted by the rule. Clarifies that a company may use appropriate existing internal records, such as tax statements or payroll documents, to identify and calculate the median employee’s annual total compensation. Clarifies that appropriate interval records can also be used to determine if the company must include non-U.S. workers in pay ratio calculations.  However, the SEC allows companies to exclude non-U.S. employees if they account for 5 percent or less of the company’s total workforce. Provides additional guidelines on determining whether its workers are employees for purposes of the rule, allowing employers to exclude independent contractors from pay ratio calculations. The additional guidance also includes examples which illustrate how reasonable estimates may be used in finding the pay ratio.  Finally, we encourage public employers to do their due diligence and document all assumptions and methodologies when computing the ratio to reduce the risk of an SEC enforcement action. If you need help with CEO reporting, other compliance issues, or designing executive compensation plans, contact us and check out our blog for more helpful...

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Ohio minimum wage will increase for 2018

Ohio minimum wage will increase for 2018

By on Oct 17, 2017 in Blog, Compliance, In the News | 0 comments

The Ohio Department of Commerce has announced that Ohio’s minimum wage is to increase on January 1 2018.  It will increase to $8.30 per hour for non-tipped employees and $4.15 per hour for tipped employees.  The minimum wage will apply to employees of businesses with annual gross receipts of more than $305,000 per year.   The current 2017 Ohio minimum wage is $8.15 per hour for non-tipped employees and $4.08 for tipped employees.  The 2017 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $299,000 per year.   The Constitutional Amendment [II-34a] passed by Ohio voters in November 2006 states that Ohio’s minimum wage shall increase on January 1 of each year by the rate of inflation.  The state minimum wage is tied to the Consumer Price Index [CPI-W] for urban wage earners and clerical workers for the 12-month period prior to September.  This CPI-W index increased by 1.9 percent over the twelve-month period from September 1 2016 to August 31 2017.  You can access the Constitutional Amendment online.   Employers should remember to post the Ohio Minimum Wage 2018 in their place of business.  Additionally, we remind employers to stay up to date on the required postings for their state.  Click here to access the list of required postings in the State of Ohio.   If you have questions about required postings or other compliance issues, contact us and check out our blog for more helpful...

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How to prepare for an I-9 compliance audit

How to prepare for an I-9 compliance audit

By on Oct 12, 2017 in Blog, Compliance | 0 comments

In our last post, we shared some details about the new version of the Form I-9 employers have been required to use since September 18.  After the recent release of the new version in an atmosphere of increase enforcement, companies need to stay on top of I-9 compliance. The U.S. Department Security’s Immigration and Customs Enforcement [ICE] can examine your business’s records at will, so it is best practice to regularly conduct I-9 compliance audits.  Here are some things you should do when undergoing an I-9 compliance check: Fill out all sections properly and completely. Pay special attention to sections 1 and 2 which will be reviewed for accuracy in an audit.  Section 3 will only be reviewed if changes have been made such as employment status, reverification, and rehires. Update your roster of employees. Remember, all employees hired on or after November 6 1986 must have an I-9 filled out.  If you discover than an I-9 is not present for an employee, make sure to obtain one as soon as possible. Have valid I-9 documentation. After you review your roster, check that all documentation is account for.  Remember, documentation for former employees is only needed for one year after separation or three years from date of hire [whichever is later]. Obtain all necessary signatures. It is crucial to carefully look over all three sections of the I-9 once it has been completed to ensure you’ve signed in all the required areas. Conducting a self-audit is the best way to ensure you are up to date on I-9 documentation. For more details on Form I-9, check out the USCIS’s I-9 Central webpage, which contains instructions for handling the Form I-9 and publishes current announcements on any updates and changes. Do you have questions on managing your employee Form I-9’s or other HR compliance topics? Contact us and check out our blog for more helpful...

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Reminder to use new Form I-9

Reminder to use new Form I-9

By on Oct 10, 2017 in Blog, Compliance | 0 comments

As of September 18 2017, employers have been required to use the new version of the Form I-9 dated 07/17/17 which can be found here. The U.S. Citizenship and Immigration Services [USCIS] first published the form in July.  It has an expiration date of August 31 2019 and applies to new hires only.  Meaning that employers should not complete new forms for current employees.  Further, current storage and retention rules have not change. The revisions primarily deal with USCIS’s List of Acceptable Documents and specifically update List C to reflect the most current version of birth certification or report issued by the U.S. state department.  Additionally, employers completing Form I-9 on a computer can now select the Consular Report of Birth Abroad Form FS-240. This allows employers to accommodate those employees who submit this form for eligibility verification. The new form also changes the form’s instructions to clarify that Section 1 must be filled out at the time of hire. As such, employers may want to revisit their I-9 policies and procedures to ensure the section is completed no later than when the employee starts to work.  Lastly, the form acknowledges the name change of the Department of Justice’s Office of Special Counsel for Immigration-Related Unfair Employment Practices to its new name, the Immigration and Employee Rights Section. Although the changes are minimal, failure to use the new form can result in fines. You can always check out the USCIS’s I-9 Central webpage for complete details on the Form I-9.  There you can find the Handbook for Employers, which is a valuable resource for those handling Form I-9 issues.  The website also publishes current announcements on any form updates or changes. Do you have questions on managing your employee Form I-9’s or other HR compliance topics? Contact us and check out our blog for more helpful...

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EEO-1 Survey Changes for 2017

EEO-1 Survey Changes for 2017

By on Sep 14, 2017 in Blog, Compliance | 0 comments

Earlier this week, we reminded employers about the March 31 2018 deadline to submit their EEO-1 Survey. We know that keeping track of the changes and updates can be confusing, so we want to highlight some key points. The Equal Employment Opportunity Commission [EEOC] issued a proposal back in July 2016 to include pay data by gender, race, and ethnicity in future EEO-1 Survey Reports, attempting to point out significant pay differences.  This July proposal is what changed the due date from September 30, 2017 to March 31, 2018. However, the White House Office of Management and Budget [OMB] has suspended the pay data reporting on the revised EEO-1 form, but kept the new deadline.  This means that employers can use the latest version of the EEO-1 form but leave the salary information portion blank, while reporting the traditional EEO-1 information [the number of employees by race, sex, and ethnicity]. Do you have questions on filing the EEO-1 Survey or have other HR consulting needs? Contact us and check out our blog for more helpful...

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EEO-1 Survey Reminder for 2017

EEO-1 Survey Reminder for 2017

By on Sep 12, 2017 in Blog, Compliance, HR Consulting | 0 comments

Certain employers that are subject to Title VII of the Civil Rights Act of 1964 and meet other specific requirements must submit their EEO-1 Survey to the U.S. Equal Employment Opportunity Commission [EEOC] by March 31 2018.  In the past, this has been due by September 30, however the 2017 due date has been extended because of additional filing requirements which can be found here.  Keep in mind that employment figures from any pay period starting in October 2017 through December 2017 may be used, therefore you should start filing sooner rather than later. The purpose of the EEO-1 Survey is to collect and analyze employment data on minorities and women from private employers and government contractors.  The goal of the EEOC is to discover employment patterns within companies and certain industries and determine if minorities and woman are underrepresented. Most often, company payroll providers are able to generate an EEO-1 report by pulling employment data from their payroll system, which can be uploaded and submitted on the EEOC’s website. Do you have questions on filing the EEO-1 Survey or have other HR consulting needs? Contact us and check out our blog for more helpful...

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