Compensation Solutions Blog
Human Resources Outsourcing (HRO – PEO – ASO – Payroll – Agency)
Summer is a popular time for hiring interns, but employers should be aware that internships in the for-profit private sector are most often considered “employment” subject to the federal minimum wage and overtime rules.
The Fair Labor Standards Act
Under the federal Fair Labor Standards Act (FLSA), non-exempt individuals who are “suffered or permitted” to work must be compensated for the services they perform for an employer. Interns who qualify as employees typically must be paid at least the federal minimum wage of $7.25 per hour, as well as overtime compensation at a rate of not less than one and one-half times the regular rate of pay after 40 hours of work in a workweek.
The Test for Unpaid Interns
There are some circumstances under which individuals who participate in for-profit private sector internships or training programs may do so without compensation. This may apply to interns who receive training for their own educational benefit if the training meets certain criteria.
The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each program. The U.S. Department of Labor (DOL) uses the following six criteria which must be applied when making this determination:
- The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
- The internship experience is for the benefit of the intern;
- The intern does not displace regular employees, but works under close supervision of existing staff;
- The employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded;
- The intern is not necessarily entitled to a job at the conclusion of the internship; and
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
If all of the factors listed above are met, an employment relationship likely does not exist under federal law, and the FLSA’s minimum wage and overtime provisions do not apply to the intern. This exclusion from the definition of employment is quite narrow because the FLSA’s definition of “employ” is very broad.
For a more detailed explanation of the factors used in the test for unpaid interns, please review the DOL Internship Programs Fact Sheet or call our HR department at 800-654-4234 ext. 180.
Compensation Solutions (CSI), a CoAdvantage Company, one of the nation’s leading Professional Employer Organization (PEO), hosted the North Jersey Regional Chamber of Commerce’s HR Seminar – “How to Hire Better” on Tuesday, May 20, 2014 at CSI’s corporate offices in Wayne. CSI’s Director of Human Resources, Kelly Lipari (below photo) presented the timely topic of “Interviewing Skills”. The conference rooms at CSI seated about 30 professionals from all types of industries that interacted with Lipari as she went through best practices for interviewing candidates for their respective businesses. For more information, please call 800-654-4234 ext. 180 or visit www.csihro.com.
Additionally, a second presenter, Karen Jacobsen from Data Screening, a Woodland Park-based background check firm spoke about best practices for checking employees and potential employees criminal and driving history. For more information, visit www.datascreening.com.
Compensation Solutions’ Director of Human Resources, Kelly Lipari, presents “Interviewing Skills” at the North Jersey Regional Chamber of Commerce’s “How to Hire Better” Seminar on Tuesday, May 20, 2014. Photo courtesy of NJRCC
Compensation Solutions (CSI), one of the tri-state area’s leading Human Resource Outsourcing Organizations (HRO), announced in February 2014 its merger with Florida-based Professional Employer Organization (PEO) – CoAdvantage Corporation.
“We are pleased to say that the merger is full steam ahead,” said CSI’s President Susan Molosh after returning back from a series of collective meetings both at CSI’s New Jersey corporate office and at CoAdvantage’s offices in Tampa, Fl. “We are so pleased to be moving forward with our integration plan for 2014-2015,” she added.
The merger unites two market leaders with the right products, services and technology to provide world class services to clients and their employees, now nationwide. The combined company now has offices in New Jersey, New York, Texas, Arizona and Colorado in addition to its Florida home with a team of more than 350 service professionals experienced in payroll, human resources, workers’ compensation and employee benefits.
The merger creates one of the largest PEOs in the nation. Though each company has its own history, the common objective is shared – absolute client satisfaction.
About Compensation Solutions
Compensation Solutions is a leading human resources outsourcing organization that serves as a full-time outsourced human resource partner for businesses of all sizes throughout the United States. By managing employee benefits, human resources, payroll and workers’ compensation administration, Compensation Solutions allows its clients to focus on their core competencies to maintain and grow their bottom line. Compensation Solutions’ corporate headquarters is located in Wayne, NJ with offices in Upper Saddle River and Manhattan. For more information, visit www.csihro.com.
About CoAdvantage Corporation
CoAdvantage, a portfolio company of New York-based private equity firm CIP Capital, serves as a leader in human resource solutions, provides Professional Employer Organization (PEO) services to small and medium-sized businesses nationwide. The company has offices throughout Florida, Texas, Arizona, Colorado and New Jersey, serving more than 45,000 worksite employees nationwide. For more information, visit www.coadvantage.com.
Catherine Gil, Sam Rosin, Stephanie Wayne and Janine Kipilla represent Compensation Solutions, Paddock sponsor of the annual Derby Day event held at the Indian Hills Country Club, Franklin Lakes on Saturday, May 3, 2014. A great time was had by all.
Located in Linden, New Jersey, Cox Stationers and Printers, was recently awarded a Garden State Green Award in the small business category for their green initiatives. The awards ceremony took place on March 15, 2014 at Kean University in Union, NJ.
According to their website (www.coxprinters.com), the company has the following list of achievements to add to their green initiatives:
• Partial roof garden (100 square feet)
• Installed a 36 kW solar system on our roof
• Installed ECO-3 efficiency systems on our HVAC units
• Installed two wind turbines on our roof
• All light fixtures are low energy (180 fixtures)
• Recycling of toner cartridges
• Recycling of batteries
• Recycling thousands of pounds of paper
• Contracted with UPS to track carbon usage
• Offer non-petroleum inks
• 99% chemical free
Michael Kaufman, owner at Cox, will be interviewed by Katie Couric in an upcoming show in June. Cox Printers is located at 1634 E. Elizabeth Avenue, Linden, NJ. Contact: 908-928-1010 or www.coxprinters.com.
The staff of Cox Stationers & Printers along with owner Michael Kaufman holding their prestigious Garden State Green Award
The Garden State Green Awards, also known as the “Boggies”, honor individuals and organizations that have made a significant contribution to the environment.
• Through preservation, reclamation or conservation activities
• Advocacy and pursuit of ‘Green’ lifestyles or business practices
• Support of development of green/sustainable energy or energy conservation.
- Source: www.gardenstategreenfest.com
Click on the flyer below for more information and to register.
Compensation Solutions (CSI), one of the tri-state area’s leading Human Resource Outsourcing Organizations (HRO), is pleased to announce its sponsorship of Wayne Valley High School’s Peer Leadership initiative entitled “Hire-A-Leader.”
The Hire- A – Leader program to take place in June, “allow peers to spend the day with other students and staff members at the school, as a way to gain different perspectives on the Wayne Valley experience,” said one of the teachers of Social Studies and a Peer Leader Advisor at the school. “It is a great way to bridge that gap between all walks of life here at our school,” she added.
Most of the proceeds will be donated to a national charity, Pacer Organization (http://www.pacer.org) that focuses its efforts on “effectively responding to instances of bullying within our school,” the advisor noted. The organization pays specific attention to the treatment of students with special needs.
Additionally, some of the proceeds will be donated to the school’s own transition skills program in the Wayne school district, which looks at the whole student and their needs. Transition services are a coordinated set of activities for students with disabilities, the goal being to promote movement from school to post-school activities, education and employment.
About Pacer Organization
The Pacer Center is a parent training and information center for families of children and youth with all disabilities from birth through 21 years old. Located in Minnesota, it serves families across the nation. Parents can find publications, workshops, and other resources to help make decisions about education, vocational training, employment and other services about their children with disabilities. In 2006, the organization founded National Bullying Prevention Center, to actively lead social change, so that bullying is no longer considered an acceptable childhood rite of passage. (Source – www.pacer.org/bullying).
The BenefitPERx Legal Card from Compensation Solutions has many areas that cover your business and family lifestyles. Most of these services can also be utilized by your spouse and all legal dependents. Take a look below at one of the ways your BenefitPERx Legal Card can assist you.
Did you know?
As a BenefitPERx Legal Card holder, you now have access to attorneys who write letters on your behalf when deemed appropriate. Please visit our blog next week for another “Did You Know?”
For more information please call 800-654-4234 or email us at email@example.com.
On April 1, 2014, Congress passed H.R. 4302, the “Protecting Access to Medicare Act of 2014.” Section 213 of the Act would eliminate the maximum deductible cap that health care reform placed on small employer group health insurance plans. The bill now goes to President Obama, who is expected to pass and sign the bill this week.
The bill once passed, will eliminate the $2000/$4000 deductible max which were imposed on small groups in 2014. In addition, the bill will delay a 24% cut in Medicare physician payments for one year.
Proposed Rules Clarify What Constitutes a ‘Reasonable and Bona Fide’ Orientation Period
The Affordable Care Act prohibits group health plans from applying any waiting period that exceeds 90 days in plan years beginning on or after January 1, 2014. A waiting period is the period of time that must pass before coverage for an employee or dependent who is otherwise eligible to enroll under the terms of a group health plan can become effective. For this purpose, being eligible for coverage means having met the plan’s substantive eligibility conditions.
Background Previously issued final rules addressed the relationship between a plan’s eligibility criteria and the 90-day waiting period limitation. Under those rules, a requirement to successfully complete a reasonable and bona fide employment-based orientation period is permissible as a condition for eligibility for coverage under a plan (among other conditions that are not based solely on the lapse of a time period). However, the facts and circumstances under which an employment-based orientation period would not be considered “reasonable and bona fide” were not specified.
Proposed Rules Proposed rules clarify that one month is the maximum allowed length of any reasonable and bona fide employment-based orientation period, and the 90-day waiting period must begin on the first day after such orientation period. During an orientation period, an employer and employee could evaluate whether the employment situation was satisfactory for each party, and standard orientation and training processes would begin.
One month would be determined by adding one calendar month and subtracting one calendar day, measured from an employee’s start date in a position that is otherwise eligible for coverage or, if there is not a corresponding date in the next calendar month, the last day of the next calendar month. (For example, if an employee’s start date is May 3, the last permitted day of the orientation period is June 2; if the employee’s start date is August 31, the last permitted day of the orientation period is September 30.)
Compliance with the proposed rules will constitute compliance with the 90-day waiting period limitation requirement at least through the end of 2014. To the extent final regulations or other guidance are more restrictive than the proposed rules, they will not be effective prior to January 1, 2015, and plans and issuers will be provided with sufficient time to comply.
Stay tuned here for more information about ACA and other news.