Important Compensation Items
Two important government requirements were recently released with one being effective October 1, 2014, and the other January 1, 2015. Both items apply to federal contractors. The definition of a federal contractor is an organization with 50 or more employees and $50,000 in annual government contract funds. Government funds include federal funds such as grants, loans, service contracts, etc.
The new OFCCP scheduling letter and itemized audit listing have officially been released and are effective immediately (starting October 1, 2014). The audit covers your current activity and practices in the areas of outreach and recruitment, disability accommodations, personnel (applicant flow, hires, promotions and terminations), and compensation. Tim Orellano, President of The Human Resources Team in Little Rock, AR, has been working hard to keep his clients, the Arkansas ILG organization and others informed of these pending (now current) audit requirements. We appreciate him for his diligent efforts in this area. If you are required to comply with the OFCCP regulations and need someone to assist you with the audit process, Tim is highly qualified to provide that service to you. Our two companies, Johanson Group and DBSquared can assist you with your Compensation Audit needs. We specialize in Compensation Management at all levels of an organization.
The other requirement is the final ruling for Federal Contractor Minimum Wage. Effective January 1, 2015, all federal service and construction contractors will be required to raise their minimum wage from $7.25 to $10.10 per hour. This applies to any new contracts awarded on or after January 1, 2015. For most of our clients, the $10.10 is already being paid and the ruling won’t have an impact on them. However, we do have some banking clients that borrow fed funds from the government and have over 50 employees and have paid some of their entry level positions such as courier, teller, call center representatives, etc. below the new minimum. They will need to increase to the new minimums or eliminate the need to borrow funds from the government.
If we can be of service to you, please let us know. We offer two HR software solutions, DBDescriptions and DBCompensation and HR/Management Consulting services.
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Please contact Blair or Bruce Johanson to schedule an online demo for you and your team.