Employees

Seasonal Slush and the Office Party

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Another update from the HR jungle….

Patricia likes to offer plenty of perks to her employees, including free coffee and tea, catered lunches each quarter, a pool table and a workout room. There’s only one perk that concerns Patricia: the office holiday party. She can’t afford a repeat of last year’s fiasco.

Last year some employees enjoyed the wassail and eggnog recipes a little too much. One employee filed a worker comp claim after she fell and broke her arm while trying to dance on the pool table. Another employee fixated on a colleague’s smile and made a highly improper suggestion of how they could spend the rest of the evening. A couple of designated drivers slipped some rum in their cokes and she had to chase them across the parking lot to confiscate their car keys.

Patricia wants her employees to enjoy the season, but there’s a limit to what she can tolerate and what her insurance will cover.

What options are available to Patricia?

  1. She can cancel the office holiday party based on last year’s excesses.
  2. She can try to limit her company’s liability by requiring all attendees to sign a waiver of liability before attending the party. (She should consult an attorney about this option).
  3. She can build in safeguards, such as limiting the number of drinks allowed to each attendee or holding the event at a hotel and reserving rooms for those who over indulge.

Has your company faced similar problems and struggled for a solution? Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff when the policies are implemented.

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Me First!

seagullBob’s business has grown as the economy picks up and he now has 10 employees. As the holiday season approaches, every employee wants time off. Bob’s problem is that he never formalized the company’s leave policy as he added employees. Now he’s in a bind as the holidays approach and he still hasn’t figured out a system for granting leave.

Sue argues that seniority counts since she was the first employee hired. Doris argues for a “first come, first served” process, which is why she gave Bob her leave request right after the July 4th holiday. Others argue for a rotation so that all employees eventually have a chance at being the first to choose. Bob’s starting to hate his own company as he faces these daily conflicts.

What options are available to Bob?

  1. He can appeal to the better nature of the employees, imploring them to sort it out among themselves. (Everyone who thinks that will work, raise your hand).
  2. He can use a seniority system with the longest serving employee choosing first and the most recent hire choosing last. (Employees dislike this system but most employers use it).
  3. He can create a leave policy, whether seniority based or on a rotation and then meet with employees to explain how the policy will be implemented.

Has your company faced similar problems and struggled for a solution?

Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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Love in the Workplace

Another update from the HR jungle…

Bobby supervises the day shift crew for his company. A few months ago he became romantically involved with one of his subordinates. Then they broke up.

When Bobby verbally counseled the subordinate about poor attendance she countered with a complaint of harassment. A few weeks later when Bobby proceeded to a written warning about attendance she complained to the owner (John) about sexual harassment and a hostile workplace. That was John’s first clue that he had a problem.

John’s company grew organically over the past few years and has few formal processes for handling employee complaints. There is no HR department, only a payroll administrator who coordinates payroll matters with the CPA firm that handles John’s business and personal tax matters.

What should John do next?

1. He needs to immediately investigate and resolve the complaint against Bobby. He may want to hire a third party to conduct the investigation to demonstrate that the process will be neutral and fair to all parties.
2. He needs to decide how to avoid similar situations in the future perhaps by creating an explicit non-fraternization policy.
3. Most importantly, he needs to create some human resources policies appropriate for the size of his company so that employees know what is expected of them and what they can expect from John’s company.

Has your company faced similar problems and wondered what to do next? Corporate Compliance Risk Advisor can help your company to create the HR policies that fit your situation and then be a resource to your staff.

Join the HR Compliance Jungle today. Click here!

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Is DIY Always the Best Approach?

Another update from the HR jungle…

Bentley is the office manager for a small manufacturer. He was originally hired as the second shift supervisor but his organizational flair meant he soon was promoted to an office job. Now his boss has assigned him responsibility for employee matters.

Bentley knows nothing about human resources or how to run an HR department but he’s a team player. He knows the company faces some HR issues already. Several second shift employees have complained about being harassed by a co-worker. Bentley knows all the parties involved from his days on second shift and is worried the harassment really happened.

Bentley begins researching harassment issues on the EEOC website. There he discovers that harassment comes in many forms and is covered by several different laws. Bentley also notes there are a lot more federal HR laws that apply to his employer than he initially realized. (Bentley hasn’t even begun to look at applicable state laws.)

What should Bentley do next?

1. He could continue researching HR laws and issues but the research cuts in to his regular workload.
2. He could muddle along doing his best until a crisis erupts, exposing the gaps in the company’s HR compliance efforts.
3. He could tell his boss that it’s time to get professional help in setting up the HR department. A person knowledgeable about HR issues can be a resource for Bentley while he learns his new duties as head of HR.

An ounce of prevention is worth a pound of cure, as the old saying goes. Corporate Compliance Risk Advisor can help your company create an HR department and then serve as a resource to your HR staff.

Join the HR Compliance Jungle today. Click here!

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How Soon Can I Fire Her?

Another update from the HR jungle….

Gretchen and Sam started their business on a shoestring budget and built the company up to a point where they now have a dozen employees. The employees work well together and cover for each other during lunches, vacations, or sickness; whatever it takes to keep the clients happy. It’s a real team effort and it’s paid off financially for everyone.

That is…until Liza was hired as the receptionist. Liza was told at her date of hire that she would be trained on other office procedures so that she could help cover for other employees when they are absent from office. But it turns out that everyone is covering for Liza.

Liza has a malady a week, mysterious illnesses that mean she misses a lot of work. The other employees are beginning to openly complain about the extra work caused by Liza’s absences and inattention when she is at work.

Gretchen just completed a review of the past quarter’s attendance records and is shocked by what she sees. She wants to fire Liza immediately based on poor attendance. Then she realizes there is no record in Liza’s employee file showing that Liza has been warned of the consequences of poor attendance.

What should Gretchen do next?

1. She could fire Liza immediately and hope that Liza won’t hire an attorney to argue about allegedly wrongful termination.
2. She could offer Liza a severance package in exchange for leaving immediately and waiving any later claims related to the termination.
3. She could set up a meeting with Liza to review attendance policies, give a “final” warning and wait to see if Liza improves (or not).

Does this situation sound familiar? If your company has faced this issue, you know that each option has pros and cons. Corporate Compliance Risk Advisor can help your company consider the options to resolve the immediate problem and limit similar problems in the future.

Join the HR Compliance Jungle today. Click here!

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Are My Guys 1099’s or W-2’s?

Another update from the HR Jungle….

Otis runs a lawn care business and has a small staff of permanent employees. During the summer months he hires extra workers as his work load increases. Many of these extra workers take other jobs because Otis doesn’t offer full-time employment.

Otis always treated these extra workers as independent contractors and issued a 1099 to them. As 1099’s, these workers are self-employed and responsible for all employment taxes. Many of these workers don’t want to be considered employees of Otis’ company because they like the bigger paychecks they get now.

Last week one of the temporary summer workers told Otis he talked to a friend who knows someone who says he (the summer worker) should be a W-2 employee.

What should Otis do next?

1. He should review the factors used by the IRS and the U.S. Dept. of Labor to determine if a worker is an independent contractor or an employee. Basically, the more control over how and when the job is done, the more likely the worker is a W-2 employee.
2. If an initial review indicates the summer workers should be re-classified as W-2 employees, Otis should immediately work with his payroll service to reclassify the workers as employees.
3. If Otis isn’t sure how to classify the summer workers based on his initial review, he should seek legal advice on how to classify the workers.
4. He should seek legal advice on the tax consequences of misclassifying W-2’s and 1099’s.

There is no bright line test dividing 1099 and W-2 workers; it depends on the total circumstances. Corporate Compliance Risk Advisor can help Otis do the initial review of the factors and gather the information needed by the attorney who will give a legal opinion to Otis.

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We Need Employees….But We Have No Employee Policies

Another update from the HR Jungle…

Abigail and Bob started their business five years ago after being downsized from corporate jobs. Until recently they were the only employees, working long hours and outsourcing specific tasks to free-lancers (a/k/a independent contractors).

Now they want to add employees to prepare for several new customers. They believe replacing the free-lancers with employees will allow them to streamline processes, speed up response times and become more profitable.

As refugees from corporate America they want to avoid bogging down in bureaucracy but they also know they need some administrative structure. Hiring employees involves creating human resources policies to ensure that all employees are treated the same.

What should Abigail and Bob do next?

1. They should identify all the tasks to be performed by the newly hired employees so that accurate job descriptions can be created.
2. They must decide the details of everything from a dress code to what benefits should be offered.

Abigail and Bob are smart, educated individuals who can research HR issues and create an HR department from scratch. Or they can delegate this activity in order to free up their time to focus on growing their business. Corporate Compliance Risk Advisor can help them create their HR department and then serve as a resource for the HR manager.

Join the HR Compliance Jungle today. Click here!

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How Can My Business Grow With All These Distractions?

Another update from the HR Jungle….

Sondra’s business grew rapidly in the past 18 months as she expanded product lines. She added three new employees last quarter when she opened a second store. With two retail locations and a constantly expanding line of products, Sondra can’t keep up with the details.

She is constantly bombarded with employee requests for time off from work. Yesterday several employees came to work with ripped jeans and t-shirts which is not the image Sondra wants to present to her customers. The employees say they thought the dress code was casual. This morning she spent an hour sorting out a dispute between two employees.

One of the new employees at the new store is not working out and should probably be fired. Sondra needs time to read the store manager’s notes to verify the grounds for terminating employment. Then she needs to hire a replacement. But first she needs to revise the job description to ensure the next employee has the qualifications she needs.

What are some of the tasks on Sondra’s “to do” list?

1. An employee handbook that explains dress codes, time and attendance, and leave policies (among many other things) would answer many employee questions, saving time for her and her employees.
2. A procedure for resolving workplace disputes could ensure that future employee disputes don’t escalate like the situation this morning.
3. Job descriptions may need to be revised to better match the evolving duties of each employee.

Sondra’s been delaying taking action because she hates these administrative tasks. But she also knows her business is getting stuck because she’s stuck making up the rules as she goes. Sondra can outsource these tasks to an HR consultant leaving her free to continue building her business.

Corporate Compliance Risk Advisor can help Sondra and other business owners in similar situations.

Join the HR Compliance Jungle today. Click here!

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FMLA and the under 50’s

Another update from the Jungle…

Mary tells her supervisor that she needs maternity leave in a couple of months. Her supervisor tells DJ, the part-time human resources (HR) manager that Mary needs the FMLA paperwork. The Family Medical Leave Act (FMLA) allows an eligible employee up to 12 weeks of unpaid time off for maternity leave.

DJ looks through the HR forms file but can’t find any FMLA leave forms. She begins researching FMLA to find the leave forms and realizes that it only applies to employers with 50 or more employees. Their company has only 30 employees.

What are some of the HR issues for DJ?
1. DJ needs to ensure that the company’s HR policies accurately reflect the laws which apply to the company based on the number of employees.
2. Mary needs to know that FMLA leave is not an option but that there may be other types of leave, such as sick or vacation leave to cover her maternity leave.

Has your company faced this issue or similar issues? Corporate Compliance Risk Advisor works with your company’s existing HR staff to identify which employment laws apply to employers of your company’s size (i.e., number of employees).

Join the HR Compliance Jungle today. Click here!

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A Sick Employee Means a Headache for HR

Another update from the Jungle….

Joe Bob worked for ABC Company for years and always had a poor attendance record. Joe Bob says he has chronic joint pain that makes it painful to stand at his work station. His supervisor often lets him sit in the break room when Joe Bob says he needs a break. Joe Bob often calls in sick but his supervisor has never warned him that he could be fired based on his attendance record.

Tom owns ABC Company and is annoyed that Joe Bob has called in sick yet again just when a big order needs to be filled for a key client. Tom instructs Beth to fill out the paperwork firing Joe Bob. Beth hasn’t done human resources work for very long but she’s worried about Tom’s instructions. She can’t find attendance records for Joe Bob to verify how often he calls in sick.

What are some of the HR issues that Beth has?

1. Without accurate attendance records, there’s no way to justify firing Joe Bob for poor attendance.
2. There is no record that Joe Bob was warned about his attendance, so there is no progressive discipline to justify firing Joe Bob.
3. Joe Bob has been treated as “disabled” by his supervisor and that means the Americans with Disabilities Act (ADA) may apply and he may be entitled to an accommodation as a “disabled” employee.

If this scenario sounds familiar to you, it may be time to seek help. Corporate Compliance Risk Advisor can work with your existing HR staff to create a framework to avoid some of the above pitfalls.

Join the HR Compliance Jungle today. Click here!

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