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FROM THE PRESiDENT
Last month, we discussed the confusion
concerning employee classification of exempt versus non- exempt. This
month, we focus on the potential consequences of improper classification of
an independent contractor. This type of relationship requires vigilance
because misclassification can evolve as the relationship matures.
Frequently, businesses start using a person on a limited basis and through
time, the relationship becomes more substantial. Independent contractors
make sense in many cases, but businesses must be cautious in policing the
relationship. The paragraphs below give the short version of the potential
consequences associated with misclassification of an independent
contractor.
This month, the U.S. Department of Labor
announced the filing of a lawsuit against the Glendale, California-based
Janitorial Carpet's Maintenance for minimum wage, overtime pay and
record keeping violations of federal law. The violations resulted from the
employer's improper classification of workers as independent contractors.
The suit was filed in U.S. District Court
for the Central District of California seeking a total of at least
$900,000, including liquidated damages and back wages, for work performed
between July 1, 2003 and July 1, 2005, in movie theatres throughout
Southern California. The suit seeks back wages and liquidated damages for
both the workers on the payroll and their helpers.
The federal Fair Labor Standards Act
requires that non-exempt employees earn no less than the federal minimum
wage and one and one-half times their regular rate for hours worked over 40
per week. The FLSA also requires employers to maintain accurate time and
payroll records.
If you have any questions please call your
HRi Client Services Specialist.
401k News
401(k) participants who are age 50 or
greater as of December 31, 2006 are eligible to defer an additional $5,000
in “catch-up” deferrals during 2006. This increases the maximum deferral
amount allowed from $15,000 to $20,000 for qualifying individuals.
In previous years, HRi processed catch-up
deferrals separately from normal deferrals. This year, we have combined all
deferrals into one deduction, called 401K AGE 50. The IRS does not
distinguish between regular deferrals and catch-up deferrals. A single
deduction in our systems allows proper calculation of any employer match employees
are entitled to receive throughout the year. Employees who qualify are no
longer required to fill out a separate form to designate catch-up
deferrals.
If you have any questions please contact
your Client Service Specialist.
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HRi Charitable Events
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HRi is pleased to help the community
by supporting the charitable interests of our clients and employees.
This year, we are participating in two significant fundraising events.
On June 3, 2006 Erin Boensch will
participate in the Cystic Fibrosis Foundation's Great Strides Walk at
Quiet Waters Park in Annapolis, MD. Erin is a strong supporter of the
CF Foundation because of her personal connection with the disease. Her
daughter, Zoe, is afflicted with the chronic and life threatening
genetic disorder. There is currently no cure for the disease, but
through medical advancements primarily funded by the CF Foundation over
the past 50 years, the life expectancy for an individual with CF has
risen from 7 years to 35 years of age. Over 90 cents of every dollar
raised directly funds medical research for a cure.
On April 29-30, Stephanie Fitzwater
will spend the weekend walking, along with thousands of other people,
in the Avon Walk for Breast Cancer. Stephanie will walk at least the
distance of a marathon (26.2 miles), and she may choose to walk as far
as a marathon and a half. Either way, it's a very long walk! The money
raised goes to the Avon Foundation Breast Cancer Crusade, a 501(c)(3)
public charity whose mission is to provide access to care and to work
toward finding a cure. They provide funding to organizations all over
the country in five areas: medical research, clinical care, support
services, educational and advocacy seminars; and community-based,
non-profit early detection breast health programs.
If you would like to help support Erin
and Stephanie in their efforts, click the link below to make a
donation. Donations are tax-deductible and will be split evenly between
the two charities. We will mail two separate receipts for your
donation.
HRi has generously offered to donate 4
Oriole Tickets to the individual with the highest donation submitted
before May 31. The tickets are for the June 25 game versus the
Nationals. These are excellent seats in the second row directly behind
the visiting team's dugout.
Please contact Erin at
eboensch@hri-online.com or Stephanie at sfitzwater@hri-online.com if
you have any questions. Thank you for your support!
Donate Now!
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Meet HRi
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 HRi is pleased
to welcome our new Vice President of Business Development, Heath Hykes.
Heath brings a diverse background of over ten years of experience in
healthcare and financial services. He has managed many different
aspects within these two arenas including:
- business relations
- sales and marketing
- account management
- overall business growth
- expansion of product lines
Heath believes in doing business the
old fashion way. His high standards, ethics, and his ongoing devotion
to the community keep him focused on doing what is in the best interest
of his clients.
Favorite Quote: "Try not to become a man of success, but
rather try to become a man of value." Albert Einstein
In my Spare time I: Enjoy spending time with my wife and
children.
If I could change one thing in my life: I would try not to
worry so much.
My greatest accomplishment: Becoming part of the HRi team.
My favorite restaurant: Alfred's Victorian
My favorite hobby:Throwing darts and playing golf.
My dream vacation: Tour Italy while dining in the best
Italian restaurants.
Advice to live by:Always focus on and enjoy the present.
Learn from your past and make the necessary improvements. Plan for
success in the future.
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