Lisa Pate, FRSA Executive Director
Finding good employees is a difficult enough task; making sure that you create, file and submit all of the necessary documents required as an employer, both at the Federal and State level, shouldn’t be. Knowing where to begin and what records you need to keep can be just as daunting. Once you’ve hired an employee you’ll need to create confidential records on each person and keep them in a secure location. Files should include:
An application form should not contain any questions which are prohibited by state or federal employment regulations, or are considered EEO (Equal Employment Opportunity) sensitive. Employment forms should not solicit information on an applicant’s sex, race, color, national origin, age, religion, disability, citizenship status, veteran’s status or marital status. By avoiding this information
you will not make the mistake of producing documentation that can work against you in an employment related claim.
If you’re a Drug Free Workplace, your insurance carrier will more than likely have a designated service provider and facility for drug testing. Employees should be sent for drug testing on their first day. Letting potential applicants know that you are a Drug Free Workplace ahead of time may eliminate unqualified candidates from applying, saving you time and money.
Federal law requires all employers to complete and retain an I-9 form for each employee to document verification of the identity and employment authorization of each new employee (both citizen and noncitizen) to work in the US. Newly hired employees must complete and sign the form within three days of starting employment. Completed forms should be kept together in a separate file for easy access.
Notify your workers’ compensation insurance carrier of a new hire and complete any required forms.
In 1996, Congress enacted a law called the “Personal Responsibility and Work Opportunity Reconciliation Act” as part of Welfare Reform. This legislation created the requirement for all employers to report their hires and re-hires. Florida’s Department of Revenue requires all employers to report newly hired and re-hired employees to a state directory (either by paper or online portal) within 20 days of their start date.
In the state of Florida, if an employee signs an acknowledgment of a probationary period within the first seven days of employment and the employment relationship is terminated within the 90-day probationary period, the employer is not responsible for any portion of unemployment compensation due to that employee. It is recommended that all newly hired employees sign this form and that it be placed in their personnel file, for purposes of fighting an unemployment compensation claim. Speaking of unemployment, there are generally three circumstances in which an employer is not responsible for paying unemployment compensation.
1. When the employee is terminated within the 90-day probationary period;
2. When the employee voluntarily resigns; and
3. When the employee is terminated for gross misconduct.
That’s why it’s so important to terminate employees (not working out) within the first 90 days of employment. Once they cross the 90-day probationary period, they either have to voluntarily resign or be terminated for gross misconduct for you not to be subject to their unemployment claims. Employers must also remember to document any performance issues an employee may have within the 90-day probationary period. Many employers assume that if they release an employee within this period they do not have to provide documentation as to why the employee was released, but this is false. Employers are still responsible for providing documentation as to why the employee was let go.
Each position within your company should have a defined job description, which includes not only what the position entails, but what the employer expects from a person in that position. For example, a job description for a person hired as a sales associate should include weekly or monthly goals, travel requirements, and required attire – will they wear a uniform, company shirt or business attire? Review your expectations with your new hire to be sure there are no questions of what is expected and have them sign the job description document.
Make sure you have detailed job descriptions for every job, in compliance with ADA, EEOC and Generally Accepted Principles of Human Resources Management. Job descriptions are often a first line of defense, in the event of an EEOC or DOL investigation. Employers who are covered by Affirmative Action Plan regulations are required to have job descriptions.
One of the fundamental payroll questions employers face is whether an employee is “exempt” or “nonexempt.” Nonexempt employees must:
1. Keep a daily time record;
2. Receive at least the minimum wage for each hour worked; and
3. Receive overtime compensation for all hours worked in excess of 40 per week.
Exempt employees don’t have to do those things and are normally paid a salary to work whatever hours are necessary to get the job done.
It would be wonderful if we could classify all employees as exempt, as this would eliminate many payroll issues and make compensation planning and budgeting much simpler. However, the Department of Labor (DOL) will not allow us to classify employees in this way. To the contrary, the position of the DOL is that all employees are nonexempt, unless management can prove they are exempt. To be classified as exempt an employee must meet the exemption tests that are enforced by the DOL.
In 2016 (implementation date to be determined), the DOL will be changing the salary level for exempt employees to double the current level from $455 to $912 a week, which will reclassify many employees, making them eligible for overtime.
The Wage and Hour Division of the Department of Labor is targeting the question of “working time.” If an employee is working, the employer is responsible for paying for this time, even if you didn’t authorize it, and even if you didn’t know about it. This could include travel time, meal periods, time before and after regular work hours, work employees take home at night and other time. Make sure all employees are recording all of their work time accurately and that you know when your employees are working.
Each employee must complete a W-4 form authorizing tax deductions for payroll. While setting up payroll, you should also consider additional authorized deductions that may apply including child support payments, insurance, garnishment notices or salary redirection payments.
Documentation should be compiled in an employee file that includes any medical information, including medical questionnaires and doctors notes with specific health information (allergies, etc.), copies of a driver’s license or employment eligibility forms, criminal background records, emergency contact information, and a copy of their social security card.
It’s essential that your company have a detailed handbook outlining your policies and procedures, work hours and attendance, leave and vacation time, cell phone, internet and social media usage, substance and alcohol abuse, dress code, weapons, employee appraisals, disciplinary action, termination, and employee benefits. Review the policy with your new hire on the first day and have them sign a document or receipt stating they have read and fully understand the company policy.
Other documents that you may want to consider including in a “new hire package” include a Background Inquiry Release Form, recording Continuing Education Credit units, any employment agreements or negotiated variances (extra vacation time, medical wait period waved, etc.), vehicle policies, separation notices, attendance records, payroll change slips, performance appraisals, warning or
counseling sessions and notes or letters from customers about an employee.
As we all know, state and local governments enforce a multitude of employment regulations that have a huge impact on how you hire your employees, what you do with them while you have them, and what you do when they leave, whether they leave voluntarily or not.
The US has more of these regulations than any other country in the world. When you have a question about employment matters and need an accurate, straightforward answer, call Seay Management toll free at 888-245-6272, identify yourself as an FRSA member, and ask to speak to Resident Consultant-Alexandria LaRocca. If you prefer, you may text message (407-256-7442) or email Alexandria (alexandria@seay.us) directly. As an FRSA member, you receive this vital Employment Hotline service, which will answer your critical employment questions, at no charge.
In addition, you have a ready source of information and advice for Human Resources Management projects that you request, on an immediate priority basis and at a special fee. All Seay Management staff are “user friendly” and are anxious to talk with you, so please call them with any questions you may have about this important service and let them begin to help answer your employment
questions and resolve your employment issues right away.
Many of the above-referenced documents are available on FRSA’s website, www.floridaroof.com, “Members Only” section.
FRM
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