The attorneys at Nardone Limited regularly assist our clients with labor, employment, and human resource issues, including guidance on: (i) federal and state regulatory compliance; (ii) discipline, discharge, and documentation; (iii) discrimination and harassment complaints and charges; and (iv) policies, procedures, and the development of employment handbooks. Please review our prior articles regarding: (i) Issues to Address in Your Employee Handbook; (ii) How the Fair Labor Standards Act and Ohio’s Minimum Wage Laws Affect Your Dental Practice; (iii) EEOC Releases 2014 Charge Statistics; and (iv) Unemployment Compensation and Other Concerns After Terminating an Employee. As an employer, it is important to keep up-to-date on the ever-changing federal and state laws, rules, and regulations that affect you as an employer, your employees, and their terms and conditions of employment with you.
Ohio Senate Bill 25 Overview
Ohio Senate Bill 25 (“SB 25”) was introduced on February 2, 2015 and was assigned to the Ohio Senate Committee of Transportation, Commerce, and Labor for review on February 4, 2015. Although SB 25 is still in the review process, it is still important for employers to be aware of the changes SB 25 could bring to you and your employees. If SB 25 passes, the following changes to Ohio’s labor and economic system would take place: (i) an increase in Ohio’s minimum wage; (ii) an increase in the current salary threshold in which one is eligible for overtime; and (iii) the standardization of the term “employee.” Within this article, we will discuss how the standardization of the term “employee” might affect Ohio employers.
Standardizing the Definition
Ohio Senate Bill 25 introduces the possibility of defining the term “employee” consistently throughout all agencies of the state. The current system under which Ohio businesses operate force businesses to comply with multiple different agency policies in determining who is considered an employee and who will receive the benefits of employment. These agencies, such as the Bureau of Workers’ Compensation and the Ohio Department of Jobs and Family Services, hold different standards in relation to defining an employee and how this employee or non-employee will receive possible benefits. This Bill proposes to standardize the terminology so the benefits that are associated with employment and determining such eligibility is more consistent and efficient.
The Bottom Line
The bottom line for employers is that they will need to take more precautions in identifying a worker as an employee or independent contractor. With the other potential SB 25 provisions, employers will want to engage outside contractors in an attempt to keep costs down. The revision of this section would enforce set criteria for what is considered an employee versus an independent contractor.
Nardone Limited has advised many employers on changes in federal and state employment laws, such as the ones that will occur if Ohio Senate Bill 25 passes. We will keep you updated on the progress of SB 25. Please see our prior articles regarding SB 25: Ohio Senate Bill 25 and the Potential Increase of Minimum Wage and Ohio Senate Bill 25 and the Potential Increase in Overtime Threshold.
