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Frequently Asked Questions
1. Are we required to pay holiday and vacation pay?
Holidays - No, there is no federal law requiring employers to provide time off, either with or without pay, to employees on nationally recognized holidays.
Vacation - Unless you have an employment agreement that requires you to pay vacation benefits there is no federal law that requires it. Many employers do so as a benefit to attract and retain their workforce.
2. What are some of the basics to comply with federal contract HR issues?
Now that you have a federal contract you need to ensure the use of the E-verify system to electronically verify the employment eligibility of your employees. You need to comply with the discrimination and affirmative action laws and regulations. The basic requirements for Equal Employment Opportunity Commission (EEOC) are: prevent discrimination, Post EEOC compliance notification, include an EEOC statement in employment advertising, keep records, allow the OFCCP access to books and records during a compliance evaluation or complaint investigation and file an annual EEO 1 report. Take affirmative action to employ and advance qualified veterans and if required file a VETS 100 report annually. Comply with the appropriate Wage and Hour laws such as Davis Bacon and related acts, McNamara-O'Hara Service Contract Act, Walsh-Healy Public Contracts Act, Copeland Anti-Kickback Act, and Executive Order 13201.
3. How do I protect our company against employee lawsuits?
Preventing employee lawsuits begins with treating the employees with dignity and respect. Communicate, communicate, and communicate. Communication with the employees is one of the most important elements of successful business. If you have a handbook and/or policies, ensure they are followed. Implement an effective unlawful discrimination and harassment policy, train all employees and supervisors at least annually (in some states this is required) Document, document, document. Documentation applies to both the positive and negative actions, providing the employee performance feedback on a regular basis. Retaliation can sneak up unexpected, if this happens, take action and investigate promptly. Train, Train, and Train. Well trained managers and supervisors is the companies' best defense.
4. In order to keep my company up to speed how much HR time is needed?
There is no one answer that fits all companies but the following should be considered. How many times each year does the business hire, place recruitment ads, talk to potential applicants, check references, conduct interviews, fill out paperwork, respond to employee information requests, answer benefits questions, handle workers' compensation issues, ensure a handbook is created or up to date, track/monitor sick leave and vacation, write/update job descriptions, mediate workplace disputes, evaluate existing staff for performance and productivity, calculate the cost of turnover and retaining poor performers, assist with the development of succession planning, conduct on boarding for new employees, train managers and supervisors in leadership skills and how to be more effective leaders and research ways in which to get the highest return on investment from the workforce.
5. What do I do when someone calls on the telephone wanting a job?
The easiest way to respond to telephone inquiries regarding job opportunities is to advise applicants all of your job openings are posted on your website or with the state workforce development Office in your community.
6. How long do I need to keep personnel records?
The retention period for keeping employee records varies depending on the type of record. They range from 1 year to 30 years for some OSHA record keeping requirements to indefinitely or until resolution if the record is documentation in an employee action. Further information regarding retention, the number and type of personnel records needed is available on our website.
7. How do I hire and fire (sack) employees?
The key to hiring the right person the first time and not having to deal with sacking, hinges on a few preliminary tasks. Ensure you formalize your hiring process; keep your job descriptions updated and accurate with appropriate pay for the work done. Train supervisors and managers how to conduct an interview asking legal and job related questions. Prepare questions in advance of the interview, ask all applicants the same questions and document their responses. Educate managers and supervisors on the cost to the company of making poor hiring decisions. Train managers and supervisors on the investment made by the company in each employee that is hired. Should you find it necessary to end the employment relationship with an employee have a written disciplinary action process. Train managers and supervisors in the process and how to document the infraction or inappropriate behavior. Do not retain a poor employee because of fear confronting them about their behavior and performance issues. Treating with dignity and respect should be the number one consideration in the process of sacking. The better hiring decisions you make in the beginning the fewer times you will deal with the stress of having to sack an employee.
8. How do you know if you should promote from within or hire someone from the outside?
The best answer is what is the culture of your company or what culture are you creating. Some companies create promotion from within culture and will only look at their internal workforce first before they seek and consider outside candidates. Others want to bring in new ideas and skills and will look outside the current workforce. The best decision is to look at the type of expertise you need and then base your decision on what is best for your company.
9. What type of benefits should I provide?
If you are just starting a company you may not be able to afford any benefits other than those mandated by law, such as workers' compensation. As your business becomes profitable you will find health and some "fringe" benefits help attract and retain a workforce. Basic benefits such as health, dental and vision are the most popular. To keep costs down, offering dental and/or vision is a place to start Ask your employees what type of benefit they would fit their needs. Consider offering term life insurance as a benefit, with options for the employee to purchase additional coverage and term insurance for their spouse. Look at short and long term disability programs as supplement to your medical leave of absence policy. Retirement plans come in many varieties. Select a retirement plan such as a 401 (k) that best fits the size and culture of your company. Your company is not required to do "matches" or contribute to the employee's account; however, this is an excellent way to encourage them to save for retirement. You will need to set up and administer a plan but a benefits administrator will assist you. Flexible Spending Arrangements (FSA) allows employees to be reimbursed for medical expenses. FSAs are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution. The employer may also contribute.
10. How do I know if a person can legally work in the United States?
All employers are required to complete an Employment Eligibility Verification (I-9) form before an employee actually begins on the job. This form is called an I-9, and needs to be completed following the instructions. Employers must retain the completed form for three years after the date of hire or one year after the date employment ends, whichever is later. I-9 completed forms are not kept in the personnel file.
11. Can all of the employees be paid a salary and no overtime?
Properly classified exempt employees do not have to be paid overtime. They must fall into one of the five categories, executive, administrative, professional, certain computer employees and outside salespersons. There are tests for each to determine if they meet the exempt criteria. If the employee does not meet the test for exemption, the employer must pay overtime according to the state law or if the state does not mandate then the federal law of over forty hours per week applies.
12. Can your HR Policies become a contract?
Yes, unless you do a few simple things to protect your company. Your policies should not state the company will only or always does something or must act in a particular way. Do not make the mistake by describing employees as permanent, or state that employees will only be terminated for cause. Other mistakes that can have serious consequences is making promises of job security or using all inclusive lists such as in disciplinary procedures or work rules.
Use such words as generally, typically or usually and may so managers have flexibility in applying the policies. You should specifically retain management's right to update, change unilaterally, and implement policies as they see fit. Additionally, you should have a strong "at will" statement that clearly states all employees, who do not work under a collective bargaining agreement, may quit at anytime and for any reason, or may be terminated (sacked)at anytime or for any reason. This statement should be in your employment documents to ensure applicants and employees understand the nature of the employment relationship and cannot claim they were not informed of their at will status.
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