Article
The future of HR and payroll: staying compliant and mitigating risk
May 21, 2024 · Authored by Kim Wylam, Deanna Kempinski
Over the last few years, the conversation around how we work has been dominated by headlines around remote or hybrid work arrangements. While these arrangements are not new, employers have recognized the complexities of multistate employment and the need to prioritize regulatory compliance.
The complexity of HR and payroll compliance is that it’s not just federal, state or local regulations that an employer has to follow – it’s often a combination of these regulations. Employers need to understand how they work together and how to apply them within their organization in order to stay compliant.
Baker Tilly Vantagen professionals Kim Wylam and Deanna Kempinski recently discussed high level human resources and payroll regulatory matters that are changing and offered a potential solution to help employers stay compliant and mitigate risk.
Key regulatory updates
FLSA salary threshold increases
On April 23, 2024, the Department of Labor (DOL) announced its final rule that increases the exempt salary threshold for employees under the FLSA. The changes are likely to face legal action and there are concerns that the new rule places greater importance on the salary amount paid to the employee than the actual work performed. Employers should not wait to take action. They need to make sure they are preparing today. Take the time to review your job descriptions and validate the FLSA classification of your positions. Check compensation levels and account for any changes planned between now, July 1, 2024, and Jan. 1, 2025, and consider the impact on the organization.
