Pautsch, Spognardi & Baiocchi Legal Group LLP
Monday Morning Minute
In This Issue
New FCRA Rights Notice Must Be Used NOW
Dual Jobs and the Tip Credit
Some Compliance Dates
                  October 1, 2018


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Effective September 21, 2018, the Fair Credit Reporting Act (FCRA) requires that employers using third party consumer reporting agencies to conduct background checks on employee applicants to use a new model Summary of Your Rights Under the Fair Credit Reporting Act.  The new model Summary of Rights was issued on September 12, and employers were given very little time to comply with rule.
The FCRA requires that employers follow certain procedures before obtaining a background check by a third party reporting agency.  The employer must also follow certain procedures if it decides not to hire the applicant (or take an adverse action against an employee) based upon a third party background check.  One of the procedures is to provide employees with a Summary of Rights under the FCRA. 
The new rule requires that employers use the new model Summary of Rights.  This new model Summary of Rights requires that rejected applicant be advised of their right to request that the third party reporting agency provide the rejected applicant with a free "national security freeze."  This freeze would restrict prospective lenders from obtaining the consumer's credit report, thereby thwarting identify thieves.  The new model form can be found here 
If you have tipped employees on your payroll, remember to evaluate what they are doing, when and for how much time! An issue with tip credit can certainly come to the forefront with these types of employees when such employees hold "dual jobs" within the organization:  one tipped and one not tipped.   

When an employee is employed in both a tipped and a non-tipped occupation with the same employer, the tip credit is available only for the hours spent by the employee in the tipped occupation. Please note that the FLSA permits an employer to take the tip credit for some time that the tipped employee spends in duties related to the tipped occupation, even though some duties are not by themselves directly related to producing tips.  For example, a waitperson who spends some time cleaning, setting up tables and getting a restaurant ready for opening is considered to be engaged in a tipped occupation even though these duties are not tip producing. 

However, where a tipped employee spends a substantial amount of time (in excess of 20 percent of the workweek) performing related duties, no tip credit may be taken for the time spent in such duties. 

Should you have any further questions, please contact a PSB Attorney of your choice.  

 Just a few compliance dates to remember: 

  • VETS 4212 filing was due September 30. 


  • MLR rebate checks under the ACA: 
    Insurers are required to issue rebates no later than September 30 to enrolled members or groups if this percentage does not meet minimum standards set forth under the ACA. 



  • October 15: Medicare Part D notices must be sent on or before this date. 

PAUTSCH, SPOGNARDI & BAIOCCHI LEGAL GROUP is a law firm dedicated to finding common sense, affordable solutions for businesses to labor, employment, human resource and general business needs. With over 75 combined years of experience among its 3 founding partners in these areas, we can assist businesses in developing custom solutions to today's tough issues.  And as litigators, who combined have over thousands of trials  "under their belts" before state and federal courts as well as administrative agencies (such as the NLRB) you will find no better advocate and partner. 


For more information on the firm, please go to our website at or Lisa at