employees Archives - Lake Effect HR & Law

DOL Proposes New FLSA Independent Contractor Analysis

admin — Wed, 11 Mar 2026 02:37:16 +0000

On February 26, 2026, the U.S. Department of Labor (DOL) issued a proposed rule that would make it easier for employers to classify certain workers as independent contractors rather than employees for purposes of federal wage and hour laws (FLSA) and the Family and Medical Leave Act (FMLA). In a change from the current approach, the proposed rule emphasizes an “economic realities” test focusing on whether the worker is operating their own business or is dependent on the employer for work. The DOL frames the change as a chance to streamline the analysis, focusing first on two “core factors” to help determine if a worker is economically dependent on an employer for work or is in business for themself: (a) the nature and degree of control over the work; and (b) the worker’s opportunity for profit or loss based on initiative and/or investment.

If the core factors are not definitive, the analysis would then consider “other factors,” including the amount of skill required for the work, degree of permanence of the working relationship, and whether the work is part of an integrated unit of production in the employer’s business. The proposed rule emphasizes that the parties’ actual practice is more relevant than what may be contractually or theoretically possible. The proposed rule also includes eight fact-specific examples to help parties understand how the analysis could work.

The distinction between an independent contractor and an employee is key for purposes of applying a number of federal laws. The FLSA generally requires employers to pay employees a minimum hourly wage for their compensable work hours, and to pay nonexempt employees one-and-one-half times their regular hourly rate for hours worked over 40 in a week. Independent contractors are not covered by the FLSA. The federal FMLA requires covered employers to provide eligible employees with up to 12 weeks of protected, unpaid leave from work for qualifying reasons, and prohibits employers from interfering with employees’ exercise of their rights under the law. Employers have no duty to provide independent contractors with any FMLA leave.

The DOL is soliciting comments on the proposed rule from interested parties within 60 days of publication. Comments are due by 11:58 p.m. EDT on April 28, 2026. After this, the DOL will review the comments, and then publish a final rule which takes effect and is enforceable 30 days thereafter; until then, the 2024 standard remains in effect. We will continue to keep you apprised of its status.

Employers should keep in mind that state laws also apply on this issue and should ensure compliance with state law, as well.

The attorneys and HR professionals at Lake Effect can provide guidance on employment-related agency and legislative actions, employment laws, regulations, and agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Supporting Employees’ Right to Vote

admin — Tue, 08 Oct 2024 13:00:54 +0000

With November elections just a month away, it is a good time for employers to review relevant policies and legal obligations for employees who seek time off to vote or otherwise participate in the election process.

Under Wisconsin law, upon the request of an employee, employers must provide employees who are eligible to vote in a public election up to three (3) consecutive hours off work during polling hours. An employee who plans to take time off to vote must notify their employer before election day, and the employer may designate the time of day for the absence (for example, at the start or end of a shift or workday). An employer need not pay an employee for time off to vote, and it may not penalize the employee in any way for taking that time off.
An employee who wishes to participate in the election process as a registered poll worker has no similar right to time off work under Wisconsin law. However, employers may permit employees to take applicable and available paid or unpaid time off, such as vacation, paid time off, or paid volunteer time. Employers should ensure consistent treatment of all employees who request time off for election-related reasons.

In addition, employers should review any applicable collective bargaining agreements, handbooks, and internal policies that may provide greater rights than those set forth in Wisconsin’s voting rights statute.

Finally, employers should keep in mind that other states may impose different or additional requirements with regards to employee voting. A number of states, including but not limited to California, Illinois, Minnesota, New York, and Washington, D.C., require employers to provide paid time off for employees to vote. Some states have stringent notice provisions, including New York, which require employers to post a notice within 10 days of each election informing employees of their voting time rights. Employers with workers outside Wisconsin (including employees working remotely) are advised to review applicable voting laws in those cities or states to ensure full compliance.

If you have questions about election-related leave issues, the team at Lake Effect HR & Law is happy to assist. Lake Effect continues to monitor important legal and HR developments at the state and federal levels, as well as other information that could impact the workplace.

Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@lehrlaw.com.

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Encourage Employees to Use Their PTO

admin — Wed, 12 Jun 2024 14:35:28 +0000

It’s Good for Them – and Good for Your Organization

Paid Time Off policies are designed to provide employees time away from work to recharge, take care of their own well-being, and support loved ones during times of need, yet so often employees do not use all their earned time. According to a Pew Research Center 2023 survey, 52% of employees in the United States don’t use all of their vacation time each year. Sadly, this marks a 100% increase from the 28% of employees who did not use all of their PTO time in 2019.

Employees provide a range of explanations for not taking their earned time off:

apprehension that their work will not get done or not done well while they are on vacation;
concerns about placing a burden on other members of the team;
dread of the backlog of work waiting for them upon return;
even the realization they have nothing to do if not at work;
fear of being discounted by management if they take time off; and
worry their absence would render them susceptible for layoff.

Such employees might feel they can’t financially afford to take a vacation, not realizing that a vacation day can be used to simply sit on their patio or balcony and read the book that has been collecting dust on the bedside table – or tackle home to-do lists.

Leaders need to encourage employees to not only use their time off, but actually stop working when they are using time off. According to a 2023 ELVTR Magazine survey, employees reported that they did not feel they could escape work, as they received frequent work contacts from their managers and co-workers during vacation, as follows:

28% received work emails from their boss and co-workers
25% felt pressure to check work-related texts
6% received work-related voicemails and 2% received work-related social media pings

Interestingly, employees seemed to have trouble maintaining their own boundaries during vacation, as 82% percent acknowledged that they were not directed by their supervisor to check email during vacation, but a stunning 68% admitted to doing work on vacation and 57% acknowledged feeling anxious if they did not check emails during vacation.
Leaders have a responsibility to create a positive workplace culture and encourage employees to take a break from work. Like so many employment-related issues, supervisors need to lead by example. Organizational leaders need to use their own paid time off, disengage, and actively encourage employees to do the same. Supervisors should be aware of their direct reports’ current paid time off balances and proactively talk to their employees about paid time off policies. Make sure every employee is aware of how vacation time is earned, how they can schedule time off, and what, if any, amount can be carried over into the next year.

When an employee takes time off, supervisors must ensure the workload is manageable, so they can take time off without guilt. Leaders should work with direct reports to delegate work, cross train others, provide status updates, and plan in advance for true breaks from work. Consistent with this approach, those leaders should not disrupt employees who are on vacation. Establish a culture in which taking time off is not only permissible but encouraged. Remind employees that paid time can be taken in small or large increments, with a great Friday off at home serving as much good as a week out of town.

Why does this matter? Employees need to separate from work to establish a balance in their lives. Do we work to live or live to work? Neither. We live, and we work. It need not be a battle between the two. The summer season is upon us. This is the perfect time to remember that everyone needs to step away and recharge their batteries. What that looks like for each employee will vary; the key is to encourage it.

Lake Effect is here to be thought leaders and trusted advisors on all facets of HR and employment law for organizations across Wisconsin and beyond. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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CDC Updates Guidance

admin — Wed, 13 Mar 2024 23:47:20 +0000

Throughout the COVID pandemic, Lake Effect has encouraged employers to follow the Centers for Disease Control (CDC) guidance regarding COVID isolation and return to work protocols to ensure individuals do not return to work prematurely or jeopardize the health and safety of others. On March 1, 2024, the CDC updated the isolation guidance for those with COVID-19.

CDC guidance now recommends that individuals treat COVID-19 just as they would other respiratory viruses such as the flu and RSV. This means the CDC no longer advises a minimum five-day isolation period for those with COVID. Rather, the CDC’s new guidance recommends individuals now stay home and away from others until at least 24 hours 1) after their symptoms have begun to improve and 2) after their fever has ended without fever-reducing medication. To address instances in which individuals may still be contagious, the CDC recommends that, when leaving home and returning to work, individuals still take some preventive measures “such as taking more steps for cleaner air, enhancing hygiene practices, wearing a well-fitting mask, keeping a distance from others, and/or getting tested for respiratory viruses.” The CDC notes that “[e]nhanced precautions are especially important to protect those most at risk for severe illness, including those over 65 and people with weakened immune systems.”

Please contact Lake Effect if you need assistance updating your workplace preventive COVID policies to reflect these important changes.

Lake Effect is here to answer your questions about COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for updates on important legal and HR developments, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Review Your Handbooks Now

admin — Tue, 23 Jan 2024 20:42:14 +0000

In the fall of 2023, we encouraged organizations to review their handbooks based on recent NLRB decisions focused on employees’ rights to engage in protected activity even in non-union settings. We are renewing that call – as several states have implemented new laws that could have a significant impact on handbooks and employment policies. For example, Minnesota and Illinois have both enacted paid time off laws which take effect January of 2024.

Under Minnesota’s Earned Sick and Safe Time, which applies to all employees who work 80 or more hours in a year, employees earn one hour of paid leave for every 30 hours worked. Similarly, Illinois’ Paid Leave for All Workers Act grants all employees one hour of paid leave for every 40 hours worked. These and other state leave laws are detailed and require integration with existing leave policies. It may be necessary to track leave, display accrued time on paystubs, display postings, or notify employees of the applicable law. Lake Effect can help organizations that have workers in multiple states and need assistance navigating these or other state employment laws.

Lake Effect is here to answer all of your questions about HR, benefits, employment laws, regulations, and new agency guidance. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Coaching Employees Through Interpersonal Differences

admin — Tue, 28 Mar 2023 12:41:39 +0000

Since the pandemic, many employers have experienced a rise in the number of interpersonal disputes among employees. These conflicts may reflect long-standing friction that went dormant during COVID, employees out-of-practice at making small talk by the proverbial water cooler, or employees no longer willing to tolerate an aggravating co-worker or demanding boss. Lake Effect has helped many organizations address these employee relations issues quickly and effectively using the Everything DiSC® methodology.

Everything DiSC is a versatile tool that can be used in employee and executive coaching sessions, mediation, and group training to break down friction among coworkers, strengthen teams, and professionally develop individuals. The personalized Everything DiSC Workplace Profile® that each employee receives provides a great starting point to coach employees through challenging situations, transitions, and pivots. Even in the face of conflict and stress, employees who know their own DiSC style and those of their co-workers can modify their behavior and approach to communicate more effectively and productively with others. Very quickly, the DiSC framework helps your employees improve teamwork, communication, and productivity by developing a common communication language in the workplace.

In the post-COVID world, employees are returning to the workplace with new expectations and aspirations. By providing them with Everything DiSC assessment and training, you are providing them with the resources to improve their workplace interactions and overall experience. You also demonstrate your commitment to their future and professional development. Contact your partners at Lake Effect to help you maximize your workplace potential.

Lake Effect can assist with all of your employee relations issues and answer your questions about federal and state employment laws and HR best practices. We continue to monitor important legal and HR developments that affect employers. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Employers Face New Challenges Under Colorado’s Revised Non-Compete Law

admin — Thu, 06 Oct 2022 20:13:11 +0000

Effective August 10, 2022, employers who aim to protect business interests by requiring employees in Colorado to sign non-compete and customer non-solicit agreements will face new challenges under amendments to Colorado’s restrictive covenant law. Key provisions include the following:

Post-employment non-compete agreements, including customer non-solicitation agreements, are presumed void unless all of the following are established:
- For a non-compete agreement, the employee is “highly compensated” at the time of signing and termination, with annual earnings at or above the Colorado Department of Labor and Employment’s highly compensated worker threshold (currently $101,250 per year, to be increased each year);
- For a customer non-solicit agreement, the employee earns at least 60% of the highly compensated worker threshold (currently $60,750 per year, to increase each year);
- The agreement is for the purpose of protecting trade secrets; and
- The agreement is no broader than reasonably necessary to protect the employer’s interest in protecting its trade secrets.
Employers must provide a separate written notice of the terms of a non-compete and/or customer non-solicitation agreement:
- For a prospective employee, the notice must be given before the individual accepts a job offer.
- For current employees, notice must be given at least 14 days prior to the effective date of the agreement or the effective date of additional compensation or other change in conditions of employment that provides consideration for the agreement, whichever is earlier.
- Notices must be signed by prospective and current employees.
Non-compete and/or customer non-solicitation agreement with employees who primarily work or live in Colorado at the time of termination will be governed by Colorado law, and employers may not require employees to adjudicate them outside of Colorado.
The amendments apply to agreements entered into on or after August 10, 2022, but they do not apply retroactively to agreements signed before that date.
Violations of the amended law can result in penalties up to $5,000 per employee or prospective employee. The amendments also provide a private right of action to individuals, who may recover actual damages, declaratory/injunctive relief, and attorneys’ fees and costs.
The amendments do not affect employee non-solicitation agreements, restrictive covenants related to the sale of a business, agreements for the recovery of training and educational expenses, and “reasonable” confidentiality agreements, as defined by the statute.

If your organization has or plans to hire employees in Colorado, please reach out to your partners at Lake Effect to ensure you comply with the amended non-compete and customer non-solicitation agreement requirements.

Lake Effect is here to answer your questions about restrictive covenants and applicable state laws. We continue to monitor important legal and HR pments that affect employers. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Share the Love with Your Employees

admin — Mon, 14 Feb 2022 07:40:23 +0000

It’s Valentine’s Day, the day we show a little extra love to those who are special to us. After the last two years, we all need a few more candy conversation hearts. Take a few moments today to take care of yourself and encourage your team to do the same. As we move through 2022, continue to practice self-care and provide your staff with resources to support their mental wellness, engagement, and professional development.

Take time for self-care. Leaders, we see you taking care of your staff, customers, and families. Thank you for all you do! Please keep your tank filled and battery charged so you can continue to take care of others. Take a moment for you!

Tell your staff you appreciate them. Everyone wants to be seen and appreciated. A heartfelt thank you can go a long way. You know your staff the best, so make the message meaningful to each recipient.

Provide your team members with the resources they need. More than ever before, employees are seeking flexible work schedules, hybrid work environments, professional growth, a supportive workplace culture, and relevant benefits. Ask your employees what they need to be successful in their roles while balancing their personal responsibilities. Here are a few ideas to bring that to life:

Remind your team members to take time for self-care – and remind them again
Lead by example by taking care of yourself
Implement a flexible work schedule
Consider a 4-day work week or reduced schedule
Review workloads, including the leaders within your organization
Develop a buddy system to check in on each other, especially in a remote or hybrid work environment
Create an environment where it feels safe to say “I need help on a project” or “I need a break to step away for an hour”
Encourage staff to volunteer in the community to support causes that are important to them
Post your Employee Assistance Plan (EAP) access information so it is easily accessible
Remind your employees about some of the hidden perks within your benefits plans: discounts on massage, credits for workouts, wellness resources and apps, and the like
Partner with local nonprofits to provide mental wellness resources to your staff
Implement or expand a coaching and development program to help employees align their professional development goals with your organization’s strategic initiatives
Practice empathic leadership, fostering a sense of meaningful connection and belonging

During the past two years, the Lake Effect team has been doing something together every month. We have done virtual 5K’s, laughed while attempting to do virtual workouts together, shared reading suggestions, and even tried cooking the same recipe together via Zoom. This month, we are challenging ourselves to do three things every day and we would LOVE you to join us in the challenge: do something each day for yourself physically, mentally, and professionally.

As we close on this Valentine’s Day, Jane is supporting a local restaurant, Sheila is heading out for a run, Holly is making memories with her kids, Leann is taking a vacation with her family, Jenn is volunteering her time delivering flowers, and Tricia is playing outside soaking up the sunshine. Tell us how you are taking care of yourself this month.

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Update on OSHA’s Vaccination and Testing Emergency Temporary Standard

admin — Mon, 20 Dec 2021 18:23:14 +0000

On December 17, 2021, the U.S. Court of Appeals for the Sixth Circuit lifted the stay placed by the Fifth Circuit and cleared the way for OSHA’s Emergency Temporary Standard (ETS) to proceed. A coalition of trade groups quickly appealed the decision to the U.S. Supreme Court for final determination.

Almost immediately, OSHA updated its site as follows:

Litigation Update
OSHA is gratified the U.S. Court of Appeals for the Sixth Circuit dissolved the Fifth Circuit’s stay of the Vaccination and Testing Emergency Temporary Standard. OSHA can now once again implement this vital workplace health standard, which will protect the health of workers by mitigating the spread of the unprecedented virus in the workplace.

To account for any uncertainty created by the stay, OSHA is exercising enforcement discretion with respect to the compliance dates of the ETS. To provide employers with sufficient time to come into compliance, OSHA will not issue citations for noncompliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. OSHA will work closely with the regulated community to provide compliance assistance.

Per OSHA’s statement, employers will now have until January 10, 2022 to develop compliant policies and until February 9, 2022 to begin testing programs. Additionally, OSHA noted that no enforcement will start before January 10, 2022.

Lake Effect recommends that all covered employers (defined as those with at least 100 employees firm or corporate-wide at any time the ETS is in effect) proceed as if the ETS will be implemented, but recognize there may be further delays pending a decision from the U.S. Supreme Court. Please see Lake Effect’s prior blogs on OSHA’s ETS for more complete information about the provisions of the standard.

Lake Effect is here to answer your questions about COVID-19 compliance and will continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Maintaining a Respectful Workplace Post-COVID

admin — Tue, 27 Jul 2021 18:33:12 +0000

While some organizations have been on site through the pandemic, others have returned in recent months. Many others are planning a more robust employee return to office in the coming weeks. As more employees return to work in the office, employers may need to reestablish and remind employees about expectations of workplace conduct to foster and maintain a respectful workplace.

While employees have been working virtually, it is likely that their work clothes have become more casual, morning routines have become less regimented, and communications with coworkers have become more informal as they connected from their homes. Employers may want to review, revise, and remind employees about dress code and attendance policies. Further, employers should grant grace during the return, as employees navigate at-home responsibilities, commute times, new health and safety changes to their work environment, and their own well-being.

While the return may be welcome for some, others may struggle. Employees may experience micro-rejections and awkward moments deciding whether to hug, shake hands, or maintain social distancing with coworkers and others. Office banter may become more casual now that video calls introduced us to our coworkers’ personal lives outside the workplace. At the same time, in-person interactions may be stilted after months of virtual exchanges. This is the time for managers – and coworkers – to refine their empathic leadership and listening skills to understand the needs of others, and be sensitive to their feelings and thoughts.

There may also be times employees become upset with one another, feel hurt, over-share, delve into personal information (including vaccination status and health conditions), or even pass judgment on mask wearing or vaccination status. At its worst, there is a risk that these interactions may be perceived as harassment or discrimination. Consider scheduling your annual respectful workplace training to remind employees of appropriate workplace conduct to prevent harassment and discrimination. Keep in mind that the EEOC recommends employers provide such training on an annual basis, in person, and provided by an experienced trainer.

Lake Effect is here to answer your questions about empathic leadership and respectful workplace training. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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