HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 7: Employee rights to return to their job – Keeping a Light On for Returning Employees

There are at least two laws that require you to make sure there is a job for employees when they return to work after certain types of leave.

• USERRA – The Uniformed Services Employment & Reemployment Rights Act of 1994 relates to employees who serve in the military including the National Guard. The law requires you allow employees who have been deployed to return to their job, or an equivalent job, when they are released from military duty. This also applies if a uniformed employee must leave for their required two weeks of training. There are many details to this law and you may need to use an employment attorney to interpret each situation.
• FMLA – Family & Medical Leave Act of 1993 – This applies to employers who have more than 50 employees in their organization. The law allows employees to take up to 12 weeks of leave during a 12-month period (paid or unpaid) for the birth of a child, adoption of a child, placement of a foster child, or to care for a seriously ill family member (child, parent, spouse, or self). There are many regulations related to this law, including getting medical proof, and employees must have worked for at least 1250 hours in the past 12-months. Again, employees have the right to return to their position (or equivalent) after their family or medical leave. Contact Randi Frank Consulting if you have any questions on these or any other HR laws.

Questions? Contact us today!

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 6: Proper Recruitment/Hiring Practices – Hiring Done Right, The First Time

It is important to set up proper hiring and recruitment practices, both to avoid the cost of rehiring and retraining, but also to avoid the cost related to a bad hire. (Those that could result in termination lawsuits, or dealing with an employee who harasses other employees or even conducts workplace violence.)

I have written several resources on this subject, including a chapter in a book titled “Recruiting the Right Talent for your Organizations.” See also: my blog post on Tips on Recruitment and a video on the subject. Click on the appropriate sections to access the content or contact us directly for assistance in setting up proper hiring processes.

To avoid those bad hires, it is important to do reference checks and background checks on all your selected candidates. For example, do a driver license check on all employees using your agency vehicles and/or confirm CDL licensure (if required) which would mean the candidate has been subjected to random drug and alcohol testing.

Another important phase of the hiring process is executing a proper orientation or onboarding process to ensure employees feel welcome and will stay with you (so you are not constantly rehiring). See details – Tips on Orientation & Onboarding and Stay Interviews.

Questions? Contact us today!

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 5: ADA & ADEA & Pregnancy Act – The Employment Game: Different Players, Same Rules

Discrimination law begin with Title VII of the Civil Rights Act of 1964, but it doesn’t end there. (See my previous blog post Discrimination Blog Post.) Here are three additional discrimination laws you should be aware of:

• ADA – Americans with Disability Act 1990. This states that employers with 15+ employees cannot discriminate against employees who can perform the essential functions of the job – with or without accommodations – as long as it does not cause an undue hardship on the agency. For example, if an administrative assistant has a hearing problem but only needs an amplifier added to the phone to solve the problem, that would not be considered an undue hardship for the employer. But if you only have one custodian and they cannot lift the garbage, that would be a problem since the custodian is the only employee in charge of garbage pickup.

This is another example where having job descriptions for all your positions is a best practice because you can indicate the essential functions and physical requirements of each position. See tips on Job Descriptions.

• ADEA – Age Discrimination in Employment Act 1967. This law applies to employers with 20+ employees and stipulates you must not discriminate against older employees (those over 40 years of age). For example, you can not eliminate positions with older employees because they are paid more than other employees. If a pattern is found that you’ve been doing this, you will subject to a lawsuit.

The best practices for this situation are to treat all employees equally, have an employee handbook/manual that outlines a policy of non-discrimination, provide equal employment opportunities, and maintain a respectful office culture.

• Pregnancy Discrimination Act (Federal & State Laws). Under state and federal law, employers with 15+ employees cannot treat an employee differently – in any employment action – due to pregnancy. The law also makes it clear that pregnancy is not a disability. However, if an employee has a medical condition or disability related to pregnancy, reasonable accommodations must be made consistent with accommodations provided to other employees with similar disabilities if it does not create an undue hardship for the employer.

Best practices include: updating your personnel policies – and include them in your employee handbook/manual – to include the term of pregnancy, childbirth, and pregnancy/childbirth-related medical conditions. Add the appropriate words to your sections on Equal Opportunity Employment, ADA, and Sexual Harassment.

Need help writing job descriptions, drafting an employee handbook, or implementing other best practices? Call us at Randi Frank Consulting. We’re HR experts, and we’re here for you.

Questions? Contact us today!

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 4: Workplace Safety – Safety is Everyone’s Business

Safety is the responsibility of all employers and employees. It depends on your type of business or agency to know which of the OSHA (Occupational Safety & Health Act of 1970) laws apply to your organization. However, all employers must deal with protecting their employees and provide a safe work environment. Aspects of this include:

• Providing ergonomic equipment to prevent injuries from repetitive motions and movement (e.g., providing a proper desk at the appropriate angle for typing on a computer).
• Responding to workplace violence. If an employee is threatening other employees, it is the employer’s duty to report it to the police or other authorities. (This is similar to the rules at the airport—if you see something, say something.)
• If you have chemicals at your worksite, you are required to maintain MSD (Material Safety Data) Sheets that have instructions in case of exposure.
• If you have more than 11 employees, OSHA requires that you keep a record of all accidents on a yearly basis.
• If an employee gets hurt at your location during work hours (or driving for you), then they are entitled to workers’ compensation. Every employer is required to have workers’ compensation insurance to pay for these types of accidents. But be aware that every state has different regulations and policies regarding reporting, processing, and payment procedures.

Questions? Contact us today!

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 3: Discrimination -Let Us Educate, so You Don’t Discriminate

Discrimination laws can create the most expensive situations for employers. The major law that relates to these situations is Title VII of the Civil Rights Act of 1964. It says employers shall not discriminate against employees relating to an employment decision such as hiring, promotion, pay, assignments, etc. The categories of discrimination include race, color, national origin (ethnicity), sex, and religion. This same law encompasses sexual harassment (because it is a form of sex discrimination).

How could discrimination happen? Here are some examples of things that have resulted in discrimination lawsuits:

• An employer said, “We don’t hire young women because they leave to have babies.”
• “We don’t hire your kind,” said by another employer. (“Kind” could reference religion, race, ethnicity, or sexual orientation.)
• Or this situation: A woman is not promoted, and no women are in supervisory positions, because of a cultural bias that they are not strong enough to make tough decisions.

All of these cases, if proven, could result in lawsuits costing an employer from the hundreds of thousands to millions of dollars. The handling process for these types of complaints is different in each state but can be filed with the Federal EEOC (Equal Employment Opportunity Commission). Note: In Kentucky, an employee can go straight to an attorney and then to court, costing even more due to lawyer fees.

In 2018, the EEOC handled 76,418 cases of discrimination resulting in $505 million in fines and penalties (including 24,655 sex discrimination and 24,600 race discrimination cases). It is vitally important to have the right kind of insurance policies to protect your company (such as general liability insurance, etc.).

Even when cases are not won, they cost money. Employers often turn around and retaliate against an employee for making a claim, thus resulting in retaliation lawsuits. In 2018, there were 39,469 retaliation cases, which made up 51% of all EEOC cases.

As a result of the “Me Too Movement,” there are a lot more sexual harassment lawsuits in the court system. For tips on Sexual Harassment Prevention, click here. For Sexual Harassment Prevention Policies and Training, contact Randi Frank Consulting.

Questions? Contact us today!

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 2: Employee Pay – Paying by the Rules

If you have employees, you are required to follow some basic rules about their pay.

• You must pay a minimum wage. This amount differs from state to state. The federal minimum wage and the Kentucky minimum wage is $7.25/hour. Some states have raised the minimum wage to $10/hour for 2020.
• You are required to follow the FICA laws (Federal Insurance Contribution Act of 1935). This means you must deduct, from their wages, 6.2% for Social Security and 1.45% for Medicare (for a total of 7.65%) and send that money to the federal government. Your payroll service can handle this, or you will need to make sure your bookkeeper/payroll clerk knows how to do this for you. If you need assistance, you can hire a consulting bookkeeper who can handle your payroll for you. (We can provide an excellent recommendation in the Louisville area.)
• You must follow the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2007. Simply put, this means all employees in the same position must be paid in the same salary range. For example, you cannot pay a woman less than a man if they are doing the same job. Nor can you pay a younger person less than an older person. That said, a new employee can make less than a seasoned employee due to a lack of knowledge and experience. But once the new employee has learned the job, they should be equal to others in the same position.

To ensure pay equality, we recommend a Classification and Compensation Study. We can help you with this. Call us for details.

Questions? Contact us today!

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 1: The Fair Labor Standards Act (FLSA) – Hello New Year! Hello New Rules!

FLSA 1938 is a federal law that provides guidelines for employers to determine whether an employee is:

• Exempt from overtime rules and pay; or is
• Non-exempt and therefore, must be paid overtime (1.5 times their hourly salary if they work more than 40 hours in a week)

As of January 1, 2020, the law has changed. If you have employees who are paid:

• LESS than $684/week (or $35,568 per year), then they are automatically eligible for overtime (the salary amount used to be $23,660 per year);
• OVER $35,568/year, it is no guarantee they are ineligible for overtime. In these cases, we must examine their job responsibilities in a number of different areas to determine if they are exempt from overtime. To determine an employee’s status, it is important to have a job description. For best practices on job descriptions, see Tips on Job Description

If you are not sure whether a person is eligible or exempt from overtime, call us. We can help write your job description and perform a test to determine if their status is exempt or non-exempt.

Questions? Contact us today!