When to Break the Rules - Oregon Unemployment Tax and HR Best Practices

Each state has its own unemployment tax system and each are slightly different but they generally operate within a similar framework.  Employers are assessed a tax that goes into a fund that is used to pay for unemployment claims.  The tax rate each business is assigned varies according to two primary elements.  First, how much your former employees take out of the general fund in the form of unemployment insurance (UI) benefits.  The second is the ratio of those UI benefit costs compared to the level of payroll.  In Oregon, the State Unemployment Insurance tax rate is based on a rolling three year average (How UI Rates are Determined).  Thus the UI benefits that have been paid to former employees are charged against your tax rate for three years.

the Twelve HR days of Christmas

SEE THE 12 HR DAYS OF CHRISTMAS VIDEO!

 
… lots of MONEY by Outsourcing.

Outsource the Paper work.  Add time, talent and systems to your business.

Two Tax Headaches

Make sure you have a payroll and tax partner with the experience and integrity to keep the IRS from your door. Cardinal Services enables small and mid-sized companies to focus on running and growing their businesses. Our comprehensive suite of services, personalized customer service and competitive pricing delivers the best value in the marketplace. 

Automatic Gratuities: Service Charge not Tips

Effective January 1, 2014, automatic gratuities in the hospitality industry (for example, an automatic 18% tip for parties of six or more) will be treated by the IRS as service charges rather than tips.

Unlike optional tips which the employee bears the responsibility of reporting, these service charges will be viewed as wages and the employer will be responsible for reporting them. Additionally, employers should be aware that any such service charges will be considered part of the employee's regular rate of pay for purposes of calculating the overtime rate.

Is it a tip?

Generally all of the following factors must be met:

1) The payment must be made free of compulsion;

2) The customer must have the unrestricted right to determine the amount of the payment;

3) The payment may not be dictated by employer policy or be the subject of negotiation; and

4) Generally the customer must have the right to determine who gets the payment.

2014 Standard Mileage Rates

The Internal Revenue Service has issued its 2014 optional standard mileage rates.

Effective January 1, 2014 the IRS standard rate will decrease by half a cent to 56 cents per mile driven for business purposes. While this is an optional standard rate, it is widely used to calculate mileage reimbursement for employees who operate their own vehicles for official company business.

If your company bases its mileage reimbursement on the IRS rate, be sure to update your systems to reflect this change.

New OSHA Hazard Communication Rules

There are changes coming to the hazard communication rules.  These changes focus on how risks associated with chemical hazards in the workplace are conveyed to employees.  The new communication standard is based on the Globally Harmonized System (GHS).  As the name indicates, GHS is meant to be universally adopted to simplify hazard communication.  These changes go into effect for employers on December 1, 2013.

 

2013 Electronic W2 | Enrollment NOW OPEN!

Get your W2 Electronically
via email as soon as it's available

HOW TO ENROLL
Log onto the IBF website.
Select "click here for E-W2 & W2 Retrieval/Login/Register."

If you have registered in the past:
Log in with user name and password.
There are links if you have forgotten your username and password.

If this is your first time registering:  
below the log in information box click "Not yet registered for E-W2 or W2 Retrieval?" -- use company code iz2435

Click on TURN ON E-W2 for 2013 Tax Year.

... and you're enrolled! You'll receive an email prompt once 2013 W2s are available to login to your account and download your W2.

Should Your Small Business Offer Health Insurance in 2014

For a good part of 2013 I have been speaking to small businesses about the Affordable Care Act (ACA).  At those speaking engagements employers have expressed concern about what should they do in 2014.  Should they provide health insurance, can they afford it or is it better to just wait and see what happens in the latter part of 2013 before making a decision?  There is no easy answer.

The answers to these questions vary depending on each small business owner’s situation.  In creating the ACA there was no stick to entice small business owners into offering health insurance but there is a carrot. 

Battle Claws: Santa vs. the Establishment

Santa Claus.

Some of us dress like him.  Many of us sit on him.  Almost all of us have seen him. 

He’s BIG.   

He also evokes a range of emotions in our diverse culture.   Some people fondly recall memories of family holiday celebrations.  Others find religious meaning.  For some, Santa Claus represents exclusion.  They may not be excluded intentionally.  It just works out that way.  It’s a numbers thing.

Federal Bonding Program

Wanting to hire an applicant but not sure if you should put them in a position of trust due to a criminal background check?  (For example, a theft conviction would normally bar employment where an employee would handle cash.) There is an option with the no cost Federal Bonding Program.  A bond is provided for 6 months at no cost.  After that period there is an option to purchase a bond from Travelers Insurance. The paperwork is minimal and bonds can be put in place for up to $25,000. 

Veteran's Day Leave Reminder

Veteran's Day (November 11) is just around the corner. You may recall that Oregon passed a new law in the last session requiring employers to grant Veteran's Day off to eligible veterans unless it creates an undue hardship on the employer.

This year, employees must request the day off by October 21. Employers must inform employees whether they can take the day off by October 28.

Questions?
Click HERE to Ask HR Expert 
or Call 800.342.4742

Navigating the Exchange for Small Business Owners and Employees

Many small employers do not offer health insurance and are wondering what to do for themselves and their employees before January 1^st, 2014 rolls around.  Small businesses (fewer than 50 employees) are not subject to the employer mandate and thus do not receive a penalty for not offering health insurance.  However small businesses owners and employees are considered individuals and thus are subject to the individual mandate (see my article on this topic in the first link below).  If either of the aforementioned individuals do not obtain health insurance the following penalties apply.

What’s salary got to do with it?

Having a hard time finding or keeping great employees -

Offering an appropriate rate of pay is key to finding and keeping great employees.

Keep losing great employees to the competition; or worse, no one is applying for your job openings? Reviewing the rate of pay may be a good place to start. Make sure the rate offered is in an appropriate range to target the employee you are looking to land. If you want an employee with a master’s degree and years of on the job experience, $9.00 per hour will not cut it. This begs the question, how much should I pay?

Replace Oregon Workers’ Compensation with a single payer health insurance system?

I remember when the Affordable Care Act (ACA) became law and one of the questions that came up was, ‘Would the ACA replace workers’ compensation?’ 

The logic behind the question was if everyone has health insurance, then they really do not need medical benefits from workers’ compensation.  Similar logic was raised in a version of a recent bill in Oregon’s last legislative session, HB 2922.  The bill states, “SECTION 26.  { + (1) The Affordable Health Care for All Oregon Plan shall be the primary payer of reimbursement for health services provided through the plan, including but not limited to compensable medical expenses covered by workers' compensation insurance.”  This bill did not pass but a study was funded by HB 3260 to see if a single payer system is advisable for Oregon. (see links to these bills below)

Oregon minimum wage increases to $9.10 per hour

This week, Oregon announced plans to exceed President Barack Obama's request to Congress to raise the federal minimum wage. This change takes effect in January, setting a minimum wage of $9.10.

The change is expected to keep Oregon as the state with the nation's second-highest minimum wage. In 2014, Oregon's minimum wage will raise 15 cents. 

Concerned over the cost of doing business in Oregon?  

Let our HR Experts evaluate where we can save you money.

Documentation

How to Document

• Be timely – don’t try to “build a case” after the fact;
• Stick to the facts;
• What you see or hear - what would be on a video tape;
• Include the full story; be accurate and specific;
• If handwritten, write legibly in ink;
• Sign and date all documents;
• Document consistently.

Will the Affordable Care Act raise or lower workers’ compensation rates?

While doing research for the Affordable Care Act (ACA) I stumbled upon an article about workers’ compensation.  As a Risk Manager my first love is naturally workers’ compensation so I eagerly dived into the Rand Corporation’s study entitled, The Impact of Health Care Reform on Workers’ Compensation Medical Care.  In my experience, conventional wisdom among my peers in Risk Management is that employees with health insurance have lower workers’ compensation claim losses.  I share this preconception which is often reinforced when I see employees that do not have health insurance file workers’ compensation claims that probably did not happen on the job.  One of the many examples that come to mind is a hernia with a highly suspect set of facts.  The worker with the hernia also had a wife and newborn but did not yet have health insurance.  It was certainly within the realm of possibilities that a workers’ compensation claim was a way this employee could get treatment and keep his new job.

Social Media in the Workplace

Social Media, the means by which individuals may post personal messages, photos and videos to the web, has exploded as a means of electronic communication.  Whereas this efficient, ever-present medium has magnified the concept of in the moment connectivity and communication, its impact on workplace policies as well as how organizations conduct business correspondence and advertising has becoming encompassing.  The challenges that businesses experience with social media usage involve maintaining policies on what employees share in this very-public, very-difficult-to-delete-medium and yet adhere to the laws under the National Labor Relations Act (NLRA) as it relates to employee rights and communication on social media websites.

Health Insurance Exchange Notices – Who is enforcing their distribution?

By October 1^st, 2013 health exchange notices are required by law to have been distributed to all employees.  These notices to employees either explain the health insurance the employer provides or, if the employer does not offer coverage, refers employees to their state’s health insurance exchange to purchase insurance.  Examples of employee notices are available via the first link at the bottom.  (If you are a Cardinal client we will be assisting with this requirement.)

Part-Time Employees; Fewer Hours but Equal Rights

With the upcoming Affordable Care Act (ACA) implementation some employers have been opting to drop a percentage of their employees to part-time status to avoid paying hefty health insurance fees for not offering coverage as they would for full time employees.

Employers should be careful not to become under the impression that part-time employees can be terminated or treated differently than full time employees. The Department of Labor does not have a distinction between the legal rights of part-time employees and those of full time staff in any condition of employment.

Why Hire Part-time Employees?

Inclement Weather/Emergency Closures and Payment

It’s August, and hopefully, most employers have had a reprieve from inclement weather in recent months.  However, some regions of the country experience their most severe weather conditions during the warm summer months, leading to workplace closures or delayed openings due to hurricanes, flooding and tornado activity.

It is recommended that an organization has a clear policy in place regarding inclement weather. 

Health Insurance Rates have been released

Oregon’s health insurance exchange is moving forward and appears to be on track to keep their original timeline.  Individual and small group plans should go on sale in October 2013.  In July 2013 the exchange started approving health insurance rates that had been submitted in April by participating health insurance carriers.  A number of rates filings have been approved during the first two weeks of July.  You can see a sample of the approved rates at: http://www.oregonhealthrates.org/?pg=approved_rates.html 

Protecting Your Unemployment Account

Employers are often surprised at how easily a former employee can establish a successful unemployment claim.  With respect to unemployment claims, the largest misconception among employers is that terminating an employee for substandard performance will disqualify the individual from receiving unemployment benefits.  In most states, unless the employee’s behavior rises to a level of “misconduct,” the claimant will be deemed eligible for unemployment benefits.  Thus, terminating an employee for “poor performance,” “incompetence” or “inability to perform the job” will almost always qualify the former employee for unemployment benefits.

ACA Employer Mandate Delayed

A delay in implementing the Affordable Care Act was announced yesterday.  The mandate for businesses who employ 50 or more workers to provide health insurance has been delayed until 2015.  The delay is to provide more time to comply with the new rules and reporting requirements.

The individual and small business exchanges are still on track to open for enrollment on October 1.

TimeTrex – Information Security

Remember to not use a Social Security Number or date of birth in TimeTrex. 
Additionally, it is best not to use a partial of the SSN or DOB in TimeTrex in fields like an employee number or password.  If you would like to use a unique employee number please feel free to use the randomly generated employee number Cardinal assigns to all employees.  Your Cardinal representative will be able to provide you with that number.

Don’t Lean into My Cubicle Like That!

Sexual harassment is, by definition, a type of discrimination which includes gender-based harassment, bullying, or coercion of a sexual nature.  Any type of unwelcome or unwanted sexual advances, requests for favors, or other conduct that is used as a condition of employment may be considered unlawful sexual harassment. If a supervisor uses sexual favors as a basis of employment decision-making, whether between same-sex or opposite-sex individuals, this too may be considered sexual harassment in the workplace.  It is imperative that an employer has a thorough workplace policy in place which communicates the company’s zero-tolerance of any type of harassing  behavior, as well as what employees may do if they become victims of harassment.  Employers who are proactive in training employees and supervisors, and regularly enforce the organization’s stance against harassing and intimidating behavior in the workplace generally have reduced exposure to harassment-related liability. 

Labor Trends – Affordable Care Act

Working at Cardinal has afforded me the opportunity to interact with business owners all over Oregon. In the last few months I have noticed some trends related to the upcoming employer mandate requirements under the Patient Protection and Affordable Care Act. To provide some background the employer mandate is a $2000 penalty per full time employee per year (note the first 30 are tax exempt) which only affects large businesses, those with 50 or more full-time employees or their equivalents. Small businesses, defined as having fewer than 50 full-time employees, do not face a penalty.

Among small employers that clearly have fewer than 50 full time employees there is an increased awareness that health insurance is an upcoming concern.  As I note in my recent Affordable Care Act presentations, many of these small business owners are waiting for

Employer Mandate vs. Individual Mandate

Over the past couple months I have been privileged to travel around Oregon to discuss the Affordable Care Act.   During the question section of my presentation I have been asked, ‘If the employer is required to pay a $2000 tax/penalty is it possible that the employee will have to pay a separate penalty as well?’  The short answer is yes, it is possible for both the employer as well as an employee to pay a penalty. Both the employer mandate penalty and individual mandate penalty are independent of one another.

Cover Oregon – Health Insurance Exchange Update

Last week the Oregon Insurance Division released a sample of proposed health insurance rates for the upcoming health insurance exchange.  These are suggested rates only and it is not clear if or how much they may change.  When reviewing the web page from the first link below note that in all three coverage levels each carrier is offering the same amount of coverage.  Next take a look at the pricing for each of the three levels as there are significant price differences between carriers.  In the second link you will see a summary of benefits for each plan.  

It’s Officially Tube Top, Capri Pants and Exposed Toes Season!

Regardless of the geographic region in which you reside, it seems as soon as the flowers have begun to bloom and the days become gradually longer, the air is filled with an underlying excitement of the coming warmer summer season. Many workplaces experience another predictable annual occurrence: the metamorphosis of employees’ wardrobes and the need to revisit the Company’s dress code.

Some employers have established summer hours with compressed or flexible work weeks, incorporating a more casual dress code as well. It is recommended, however, that employers revisit the workplace attire policy with employees prior to the start of the warmer weather.

Are YOU Engaged as a Manager?

Managers, YOU can make a difference!

The relationship between the direct supervisor and the employee if the most critical. Well and frequently engaged managers can make a HUGE difference in the morale, productivity and life of your company. Learn how to be an Engaged Manager with these 8 steps: 

Managing Vacation Requests

“But it’s my Cousin’s Wedding”

It is often difficult to strike that perfect balance between allowing employees some degree of flexibility to take vacations, while ensuring adequate coverage in the workplace. Employers also find it difficult to juggle multiple vacation requests around popular vacation times. Below we have listed a few tips, suggestions and best practices to ensure the vacation plan works well for both the employer and its employees.

If your business is highly seasonal in nature, you may wish to enact a policy requiring employees to use all or a specific amount of vacation during the slow months.

Is Your Compass Set?

Navigating Your Business through the Affordable Care Act 

Coming soon to a Chamber of Commerce near you!
 

Join us with your local Chamber of Commerce for an informational session on ACA for the small business owner.  "Navigating Your Business through the Affordable Care Act" will focus on the rules, tax benefits currently available, and resources for the future.   

Is it Vacation or Paid Time Off?

Traditionally, employers offered separate paid time off benefits to employees, such as paid vacation, sick leave and personal days.  However, in the past decade, many companies have moved to a more flexible Paid Time Off or “PTO” benefit that incorporates all policies into one all-inclusive PTO plan.

The debate as to whether employers benefit from offering PTO  verses separate vacation, sick and personal leave plans is constantly being researched.  In an effort to assist employers in making an informed decision in this regard, below are some advantages and disadvantages of combining the company’s separate paid time off benefits into a single Paid Time-Off (PTO) plan.

Preventing Harassment

Quid Pro Quo Sexual Harassment

Asking an employee, directly or indirectly, to submit to a sexual advance in exchange for some benefit at work.

• A person feels that employment decisions depend on whether he or she submits to or rejects the conduct.

Hostile Work Environment Harassment

• Pervasive sexual or gender-based activity or comments
• Verbal or physical conduct that denigrates or shows hostility or aversion toward an individual because of that person's (or that person's relatives', friends', or associates') race, skin color, religion, gender, national origin, age, disability or other protected class

To be considered harassment under the law, the conduct must:

New I-9 Form Now Available

The U.S Citizenship and Immigration Services (USCIS) published the updated Form I-9 which all employers must use to verify the identify and employment authorization of new hires no later than May 7, 2013.

Questions? Ask your HR expert.

As you will see when you look over the new I-9 document, the entire form and instructions increased in length from five to nine pages. The additional length appears to be due to a lot more detail in the instructions for both employees and employers, which is good to see. The form itself also has a different look. The layout appears to be clearer with regard to what needs to be completed and by whom.

Get the New Form here.

Required Posting Update | Post by March 7, 2013

There have been a few changes to the Family and Medical Leave Act (FMLA) section of your required postings effective March 8, 2013. What changed? 

  

STEP 1 

Please print this temporary flier to stay compliant ASAP & tape to current poster.  

FMLA | EFF. 3/08/2013 

STEP 2

Cardinal will soon have new posters will the updated requirements available. Request a poster be mailed to you once available.

REQUEST POSTER 

Have any questions? Feel free to give us a call! 
800.342.4742

Cover Oregon

Oregon's Health Insurance Exchange 

Once small business owners realize that the Affordable Care Act (ACA) tax/penalty does not apply to companies with fewer than 50 employees their next questions are usually focused on the individual mandate and the cost of health care coverage. It goes without saying that cost is foremost on the minds of most employers, especially for those companies where coverage is not offered and that outlay is not currently built into their business model.

The ACA will require anyone who does not obtain health insurance from work to buy it from their state exchange (or if there is no state exchange they will be directed to a federal exchange).  Each exchange will determine the available plans and rates for small employers (initially less than 50 employees) and individuals.  In Oregon our exchange is called Cover Oregon (www.http://coveroregon.com/). On the exchange's website there is a cost estimate for individual plans but this is based on data from the Congressional Budget Office.  The Cover Oregon website is estimating an individual plan at about $300 per month. 

Cover Oregon began taking insurance provider applications to offer health care plans on the exchange as of November 30, 2012. In the application they note that health insurance rates would need to be turned into the insurance division by March 31, 2013.  Final rates would be approved July 1, 2013 and insurance plans go on sale October 1st of the same year.  However on the draft from an Oregon Insurance Division meeting on February 26, 2013 the new deadline for turning in rates is on April 30, 2013.  It is unclear if the remaining dates will need to be changed as well.  

I should note that our health insurance exchange is ahead of the game compared to other states. Governor John Kitzhaber is a former emergency room doctor who helped craft the Oregon Health Plan.  It is hoped that Oregon will remain ahead of the game with the best possible plan for all stakeholders.

Arin J. Carmack

Helping Employees find the Greener Pasture: Your Side of the Fence

In the past few years, many companies have had to tighten their budgets in lieu of further downsizing their employee headcount as a result of the economic recession that fell onto the US during the last quarter of 2007. Consequently, organizational strategy focused on lean workforces with employees often juggling multiple roles without seeing an increase in pay or promotion in job title. Due to the fact that most companies were not hiring during those troubled years, workers simply put up with the burgeoning workloads in their current jobs. Morale often suffered, but it went by the wayside as employers struggled to keep afloat and employees realized all too well that there were few alternatives in the job market.

As the economy has seen a rebirth of job creation in many sectors, employers have been hiring again but also focusing on the damage of the past few years. Many employees who were exemplary performers often did not receive financial incentives during the recession years. These workers may now be seeking opportunities outside of the organization, especially if they continue to feel unappreciated, overburdened and if they have not yet seen a significant upturn in their compensation.

Health Insurance Strategies

Beginning in 2014 the principal part of the Patient Protection and Affordable Care Act, the health insurance requirement, will go into effect.  On January 1st of next year Americans will be required to obtain health insurance from an employer provided plan, or from an exchange or pay a tax/penalty.  Business owners with more than 50 employees will be faced with a similar question; to either provide health insurance or facing a $2000.00 penalty/tax per employee.  (For help in determining your full time equivalent employees as defined under the Affordable Care Act click here). 

Small Business Tax Credit

When deciding if you should offer health insurance there are a variety of things to consider.  Some companies have decided to get out of the health insurance game altogether.  Beginning 2014 these employers will offer a stipend allowing employees to go out and choose their own level of coverage.   The idea is that employees are better consumers and will choose better individual solutions for themselves while companies can limit their exposure to unpredictable swings in health insurance costs.  Another thing to consider is the recruiting and retention of employees.  In many professions offering health insurance coverage is a given while in others it is almost non-existent.  When formulating a strategy for 2014 keep in mind what your competitors are doing. 

Employers Under 50 Employees:

If you have determined that you will be under 50 employees and therefore not subject to the tax/penalty there are still a few things to consider.  Take a look at your employee count.  If you have fewer than 25 employees you may qualify for a tax credit.  Estimate the costs of providing health insurance, any tax credits and other factors to estimate your costs with each scenario.  Keep in mind your personal cost of non- compliance under the individual mandate. 

Employers close to 50 Employees:

For those just under 50 employees there will be the temptation to remain below that number. Remember that just because you are subject to the overall tax the first 30 employees still remain tax exempt.  The marginal cost of the 51^st employee is $42,000 not $102,000.

Over 50 Employees:

For employers that do not offer health insurance with a significant number of employees over 50 the coming year is causing increasing trepidation.  Many business owners are looking to see if their competitors will be passing on costs to consumers or trying one of the many strategies to lowers their costs under the Affordable Care Act.  Temporary employees are being considered more frequently as the temporary employees are counted under the temporary employer’s number of employees for the tax/penalty.  Another strategy has been to increase the number of employees and cut hours per employee.  For example a large restaurant chain signaled that they were planning on making as many of their part time employees truly part time as defined by the ACA.  Reclassifying employees as part time was accomplished by restricting the number of hours a part time employee can work to fewer than 30 hours per week.  Another time honored route to avoid payroll taxes, workers’ compensation and the like is to try and turn employees into independent contractors.  The Affordable Care Act is another reason some businesses will be looking at classifying people as 1099 independent contractors.   Enclosed is a link to the State of Oregon’s rules on independent contractors. http://www.oregon.gov/IC/pages/05-qanda02.aspx  If you go this route review your plan with someone like a CPA or attorney as there are a variety of pitfalls.  For example, the Internal Revenue Service, Oregon Employment Department and the Oregon Department of Revenue do not completely agree on the definition of an independent contractor. Other businesses are looking at breaking up their entities into groups smaller than 50 employees.   The Affordable Care Act has provisions to treat multiple businesses as one entity.  Structuring your businesses in such a manner that will not be considered as combinable is something you should review with an expert in this arena.  If you are considering this option here are links to the IRS website on controlled groups for you and your attorney and/or CPA to review.

Applicability to the PPACA - http://www.irs.gov/pub/irs-drop/n-11-36.pdf

Guidance on controlled groups-  http://www.irs.gov/pub/irs-tege/epchd704.pdf 

 A twist on independent contractors and non-combinable entities is outsourcing employees to another organization to keep your number of core employees closer to 50. Outsourcing non-core functions – from HR to accounting to shipping is easier than ever.

The Affordable Care Act is a complicated piece of legislation.  Review your options.  Put estimated price tags on each option. Evaluate what other are doing or ask your trade association. Doing so now will help avoid a scramble in the final quarter of 2013.

Arin J. Carmack

VP of Risk Management

Gossip in the Workplace

What is gossip?
There are two reasons for sharing social information. One is that the exchange of useful information helps us survive and prosper. In early years, it would have increased your chance of survival if you had an ability to learn useful information such as where the rains are falling, where the food is abundant and where the predators are. The second is to establish alliances within our group; to determine the people we trust and those that we need be careful with.

Negative Consequences of Gossip
Here are some negative consequences to consider about workplace gossip:

• Gossip damages trust and morale.
• Interferes with productivity and efficiency.
• Truths or assumptions are more likely to be distorted.
• Privacy may be violated.
• Hurt feelings and damaged reputations.
• Decreased employee satisfaction.
• Employee may be passed up for a promotion due to unprofessional behavior associated with gossip.

How to Avoid Gossip:
You may have decided that you don't want to participate in gossip, but aren't sure how to get out of the situation. Here are some ideas that may help.

• Be honest about your thoughts and feelings.
• Focus on yourself. Use “I” statements when communicating.
• Remember KISS. “Keep it Simple Silly” when confronting the behavior
• It's okay to leave the room. If it's only two people in the conversation, it's impossible for the other to keep going without you.

Here are some examples of what to say in an uncomfortable gossip situation:

I have to be honest, I don't think that talking about the problems that ______ is having behind her/his back is going to help her/him.”

“I am uncomfortable discussing this and I think it's inappropriate. I know that my feelings would be hurt if I knew my friends (co-workers) were talking about my personal problems and spreading things around.”

Why HR & Social Media Don't Mix

You may have been told that "everyone" is using Facebook as a screening tool. This may have been true for a short time, but the HR profession has thought twice about the risky practice.

In 2011, a SHRM study found that 71% of HR managers surveyed said their organization had never used or had discontinued using social networking websites to screen job candidates due to the legal risk of revealing protected characteristics, such as age, race, religious affiliation, and marital/family status. Survey respondents were also concerned about the reliability of the information found on social media sites, as well as the lack of relevance to work-related potential or past performance of the candidates.

You have probably seen those lists of interview questions NOT to ask prospective employees. They read something like:

• How many kids do you have?
• How do you spend your Sunday mornings?
• How old are you?
• Do you have any medical issues?
• Etc.

See what the NLRB says...

Now think of the kinds of information people disclose on their Facebook pages. They typically include things like:

• How many kids they have.
• How they spend their Sunday mornings.
• How old they are.
• Full summaries of their medical issues.
• Etc.

Remember, it doesn't matter if you are just "taking a peek" or don't end up using the protected information in making a hiring decision. Merely looking at a job applicant's site is enough to raise a  presumption that your hiring decision was influenced by the content of the site — after all, why else would you have looked in the first place? And remember, you can't unsee what you've seen.

To Pay or Not to Pay Overtime

How Should My Employee Be Classified?

It is important to ensure that jobs are appropriately categorized as either Exempt Status positions or Non-Exempt Status positions. The Fair Labor Standards Act's (FLSA) Exempt Status applies to employees who meet specific exemption criteria delineated in the Act. Exempt employees are typically salaried and are paid for the job performed rather than the number of hours of labor. Exempt Status employees are not eligible for overtime pay.

Questions? Ask Your HR Expert.

Top Tips – Meals and Breaks

 

• 10 Minute Rest Breaks
• 15 minutes if under 18 yrs;
• For every major part of a 4 hour segment; midway if possible;
• In addition to, and separate from, meal times.

30 Minute Meal Breaks

• For shifts of 6 hours or longer;
• Unpaid, no interruptions;
• Between the 3rd & 6th hour if shift is longer than 7 hours; otherwise between the 2nd & 5th hour.

Note: Certain tipped food and beverage employees can voluntarily waive meal periods by completing the appropriate BOLI form.
Exception to 30 minute Uninterrupted Meal Break:
If you can show “undue hardship”, you must provide adequate time to consume a meal, rest, and use the restroom, and pay employees for this time. Effective March 16, 2009, employers must provide a notice to each affected employee on a BOLI form. Retain a copy of the notice for a minimum of six months after employment termination.
“Undue hardship” means: “significant difficulty or expense when considered in relation to the size, financial resources, nature or structure of the business.”
Employers with 25 or more employees must also provide “reasonable rest periods” (no less than 30 minutes during each 4-hour work period or major part thereof) to accommodate an employee who needs to express milk.

• You must pay the employee for the usual 10-minute rest period; the other 20 minutes may be unpaid.
• You can allow the employee to work before/ after her normal shift to make up the time used during the unpaid portion of the rest periods.
• You cannot require her to use paid leave time of she does not want to work before or after her shift to make up the unpaid time.
• You must make a reasonable effort to provide a private location in close proximity to the employee’s work area.

New Year’s Tips from Your Human Resources Professionals

The beginning of a new year is a great time to internally audit some of your HR-related practices. The following are a few tips to get you started:

Employee Handbook – It is not a bad idea to have an HR Professional review your handbook annually for compliance issues. Also, if there are any policies that you would like to edit, the beginning of the year makes for a clean break for new policy implementation. If you do not have a handbook, the first of the year is the perfect time to create and implement one into your organization.