Even the most experienced business owners and HR pros have questions from time to time. Our Quick Q&A series provides answers to not-so-common questions and links to helpful resources.

Whether or not someone should be classified as an independent contractor depends upon the totality of the relationship. The Department of Labor (DOL) and state and federal courts have issued opinions over the years that have caused confusion for employers. Just recently the DOL’s Wage and Hour Division (WHD) issued a field assistance bulletin stating it will reconsider a Biden-era 2024 independent contractor rule. While the evaluation is underway, employers should consider seven factors traditionally upheld by the WHD: 

Questions pertaining to a candidate's citizenship status are prohibited, but hiring managers must verify candidates are authorized to work in the United States. Given that it is illegal for employers to hire those not authorized to work in the county, and to ask discriminatory interview questions, hiring managers must toe the line between ensuring job eligibility without breaching any employee protections.  

The Missouri Department of Labor (DOL) has released a notice that should be distributed to each employee by April 15, 2025, to comply with provisions of Proposition A. The notice includes the following information: 

One of the realities of operating a business that stores customer, financial or other sensitive data is that cyberattacks, data breaches or computer-system failures are real possibilities. Regardless of size or industry, organizations should consider adding cyber liability insurance to their list of business protections. Recent industry reports estimate the average cost of a data breach in the United States has climbed to $5 million.     

The “use-it-or-lose-it” nature of flexible spending accounts (FSAs) results, per average participant, in more than $400 of forfeited funds at the end of a plan year. The IRS gives plan sponsors the flexibility to include several plan provisions that allow employees more opportunities to access FSA funds. Implementing one of these options gives employees more time to exhaust their FSA funds and increases appreciation for the tax-savings benefit.

Dependent verification audits are conducted to confirm that dependents enrolled in an organization's benefits plans are eligible for coverage. While there is no legislation that outwardly mandates dependent verification audits, under the Employee Retirement Income Security Act (ERISA) employers are responsible for only paying benefits to eligible participants. 

Employers are not required to extend holiday pay to employees out on Federal Medical Leave Act (FMLA) time but should consider creating policies that clearly communicate the organization’s stance on holiday pay eligibility.

While there is no federal law that requires employers to offer employees paid time off to vote, state laws may apply.

Under the Fair Labor Standards Act (FLSA) employers must compensate employees for all hours worked. Hours worked generally include the time an employee must be on duty, on the employer's premises or at a prescribed place of work. Time spent training for a position is considered hours worked and generally needs to be paid whether conducted online or in person. There are few exceptions to this rule.  

The Equal Employment Opportunity Commission (EEOC) recently issued new guidance on workplace harassment to reflect modern day laws and social changes. Prior to the recent release, official workplace harassment guidance had not been updated since 1999.