4 HR ISSUES THAT CAN HURT YOUR BUSINESS
4 HR ISSUES THAT CAN HURT YOUR BUSINESS
The most valuable asset to any organization is the people hired to make the business successful. When you take care of your employees, your employees generally take care of you. Getting a handle on your human resources can be complicated, but it should never be taken lightly. If not handled with care, any lack of attention to the details can result in liabilities that can literally bring your business to a close. Let’s take a look at a short list of areas that can hurt your business in time, money and reputation if not appropriately addressed.
Out-of-Date and/or Inaccurate Job Descriptions & Employee Handbooks
Job Descriptions
Job descriptions are essential communication tools. They are used in the recruitment and interviewing phases and in establishing the performance expectations of potential and new employees. The job description provides a high-level description of the job, outlines specific duties and lists the fundamental skills required to be successful in the role. With a well-written description, the qualified and the unqualified applicants have key information before deciding to apply. In the interview, the job description is typically used as a guide to determine the candidate with the best potential for success. Finally, when the job description is used and reviewed in the hiring phase, it establishes the benchmarks by which performance can be evaluated.
Employee Handbooks
Beyond the job description, the employee handbook speaks to the culture of the company, how the employee can expect to be treated or accommodated, and establishes general expectations of the employee’s behavior within the workplace. The handbook also acknowledges compliance with relevant federal, state and local employment laws.
A good rule of thumb that I recommend to my clients is, during the on-boarding process, present new employees with a written and signed acknowledgement of receipt of the company handbook that you then retain in their employment files.
Both the job description and employee handbook should be treated as living documents. Accordingly, updates to the job description should occur when position requirements change, and you should communicate that change to the employee. Likewise, updates to the handbook should be made and communicated at least annually to reflect changes in company policy and/or adherence to new or updated employment laws.
Well-written employment documents, handbooks, policies, and agreements provide clarity to employees regarding their boundaries, rights and obligations in the workplace. Over the years, your business may have adopted new polices or modified old ones that have not been memorialized in any employment document or memo. In addition, regularly updated employment documents help you avoid the “I never got the email” excuse. So, make sure your documents speak to your current work environment, and keep company management and employees on notice of those changes.
Not Properly Documenting Employment Eligibility on I-9 Forms
I-9 forms are documents used to verify the identity and employment authorization of individuals hired for employment in the United States (find a copy of the form and related resources on the United States Citizen and Immigration Services’ (“USCIS”) website). The purpose of this verification form is to ensure that employers only hire U.S. citizens and non-citizens who may legally work in the U.S. The form includes sections for the employee and the employer, and both sections must be completed at the time of hire. You need to pay careful attention to the instructions provided for completing the form. Incomplete or improperly completed forms can result in a decision of non-compliance.
Here are some additional requirements you should note:
— All U.S. employers are required to complete and retain copies of the completed forms for every employee (citizens and non-citizens) for up to 3 years, and required to make the form available to authorized government officers as requested.
— The signed copies of the I-9 forms should be retained in a separate file exclusively for the USCIS or any other authorized agency.
Employers who do not verify employment authorization and the identity of new employees can be subject to civil fines and criminal penalties. It’s very likely that proper completion and retention of I-9 Forms will be even more important under the Trump Administration being that immigration law reform was one of the main platforms of President Donald Trump’s election campaign. Do not take this seemingly simple form for granted.
You can find more information on federal and state specific requirements by visiting the USCIS’s website, but don’t stop there – seek practical guidance on the protocol and policies your Human Resources department or team should have in place when completing, retaining and producing 1-9 and similar forms.
Improper Classification of Employees
Exempt or Non-Exempt? That is the age-old question. Determining appropriate employment classifications can be a daunting task. The Fair Labor Standards Act (“FLSA”) establishes wage, overtime and reporting guidelines. Essentially, all employees must be classified as either exempt or non-exempt according to the established standards of the FLSA.
Generally speaking, non-exempt employees are entitled to a minimum wage and overtime pay for hours worked over 40 hours per week. Accurate reporting of time worked is required to ensure that employees are accurately compensated. Exempt employees are usually salaried employees who are excluded from the FLSA overtime stipulations. Accordingly, employers are not required to pay them overtime.
There is no one-size fits all classification, but typically employees like production or operations employees (e.g., line workers or custodial workers) are classified as non-exempt where administrative and management employees (e.g., support staff, managers, and executives) are considered exempt employees. Determining proper classifications can be tricky and require careful evaluation of how much an employee is paid, how an employee is paid, and the specific duties required of an employee.
Enforcement of FLSA provisions governing wages and overtime hours is facilitated by the Wage and Hour Division of the Department of Labor (“DOL”). Should you have to undergo a DOL investigation into your company’s classification practices, the investigation will include a review of your records related to wages, hours, employment conditions and practices to determine compliance with the law.
While the employee is protected, the employer found to be willfully out of compliance may face penalties up to and including imprisonment. In most cases, however, employers are generally provided recommendations and afforded an opportunity to correct their actions.
As a business owner, however, you’re busy enough handling the day-to-day management of your business. The last thing you need is a DOL investigation on your hand where you have to waste valuable company time and resources explaining why you did or did not properly classify an employee.
So, let’s try to get these classifications correct the first go around.
Lacking a Social Media & Mobile Device Usage Policy
Social Media Usage Policy
Be proactive and protect your business with a Social Media Usage Policy that will guide employee behavior while at work and off-the-clock. When established, these policies help prevent employment disputes, aid in managing the reputation of the business’ brand, improve revenue due to increased productivity, and keep employees compliant with federal advertising laws.
Employee social media activity can make or break a small business. Regardless of the “intent” or “content,” it only takes one post from one employee to influence the overall course of a company’s success. Therefore, these policies should be included in the employee handbook along with other operating policies.
Mobile Device Usage Policy
When the workplace expectations require or imply that employees are always virtually connected, it is imperative to also establish a Mobile Device Usage Policy. This policy should provide guidelines for mobile transactions on company or employee-owned devices. It should also address any associated costs for equipment, services, security, and should grant broad authority to the company in monitoring the device and device activity, including web-based personal e-mail and social network accounts.
Taking the time to create these policies will reduce legal risks and provide another level of protection should an employee or former employee seek legal action against the organization. Along this same vein, you also need to walk a very fine line to ensure that the policy provisions do not violate any privacy laws related to virtual activities.
Protect Your Business. Protect Your Employees.
All of these employment issues are only scratching the surface of the HR management responsibilities of your organization. Although it’s not always required, when developing policies and practices that govern the organization and its employees, the assistance of legal counsel will prove to be beneficial. Laws related to employment, business and risk management are complex and frequently change. Therefore, you want to be thoughtful about taking the right steps to protect your organization and its valuable assets.
Your Thoughts: Are you working through some HR issues that have you stumped? What key issues have you encountered and/or overcome?
This article is intended to provide you with general information; it does not constitute any type of legal advice. For recommendations related to your specific matter, we encourage you to review our Practice Areas page for additional information and then contact us to discuss your company’s legal needs.