What is the Wage Theft Prevention Act? And what does it mean to employers?

Posted on June 9, 2011 by admin

The Wage Theft Prevention Act has a somewhat confusing name.  It sounds more like identity theft than what it really is.  Doesn’t everyone want to have their pay protected against being taken from them?  Why do we need a law to ensure that?

In actuality, the WTPA is a protection put in place by the government as of April 9, 2011 to provide employees, on a regularly defined basis, with their wage information as well as any changes in wages.

With the exception of government agencies, all private sector and public employers, must provide their employees with the following information:

  • Rate of regular and overtime pay
  • Whether pay is hourly, shift, or commission
  • Future allowances the employer will claim as part of minimum wage including tips, meals, and lodging, etc.
  • Pay dates
  • Employer’s “doing business as” names, physical address and/or mailing address, and phone number.

If that were not enough, this information needs to be supplied at the time of hire and two other times. Those times are before February 1st every year or within 7 days of a change when the change is not noted on the employee’s next pay stub.

While the government is cracking down on employer violations, even errors in calculations can be serious.  A new time sheet app, supplied by the Department of Labor, encourages workers to keep track of their wages on their own smartphones.  Unfortunately, this may even result in more wage and hour lawsuits.

With employees keeping track of their wages, it is even more important for employers to maintain accurate records.  One report says that the DOL has hired several hundred more investigators to probe complaints of unpaid work time, overtime pay and minimum wage violations.

To comply with the WTPA may take time and effort on employers’ parts.  But violations, back taxes and penalties will be greater burden.

So what have you heard about the Wage Theft Prevention Act?  And how is it changing the way you pay your employees?

Posted in Human Resources, Wage Theft Prevention Act | Tagged , , | Leave a comment

What questions can and cannot be asked during an interview?

Posted on March 29, 2011 by admin

When we talk about what questions can and cannot be asked during a candidate interview, we are speaking from a legal, as well as effective, point of view. 

We want to find out if asking a question like this help will help us determine whether the candidate has the skills and experience to perform the position they are applying for.  And, whether asking this particular question will expose our business to employment practices liability.

 Of course, there are ways to reframe questions, uncovering the answers interviewers need to make a hiring decision.

 What that in mind, what do you think?  Can you ask these questions?

  1. Have you ever been convicted of a crime?
  2. Are you under 18 years old?
  3. What kind of work does your husband or wife do?
  4. Are you a citizen of the United States?
  5. What is your native language?
  6. How old are your children?
  7. Do you have any disabilities?
  8. Have you ever been injured on a previous job?
  9. What clubs or organizations do you belong to?
  10. Do you have any conditions that would keep you from coming to work everyday?

If you answered yes to numbers 1 and 10, you know your stuff.  Number two is yes only if being over 18 is a requirement of the job say as in serving alcohol.  Numbers 3 through 9 are all “no” answers.   However, it is not enough to get them right but to understand why.

While arrest questions are not legal, questions about convictions are.  Age questions are not legal unless determining whether a candidate is at least 18 years old. 

Questions about a person’s spouse, children, native language, or clubs are irrelevant to whether they can perform the duties of the job and are therefore not legal.  And while disabilities may be critical in determining whether someone can do a specific job, the legal way to ask that question is something like number 10.  “Are there any conditions that would prevent you from performing all the essential functions of this job?”

Employers can find out what they need to know to qualify candidates, however it must be done without discriminating.

Let me know what questions you think can or cannot be asked during an interview.

Posted in ADA, American's with Disabilities Act, Attracting Top Talent, Human Resources, Interviewing, Manager's Role, Reasonable Accommodation | Tagged , , , , , , , , | 2 Comments

Has political correctness gone too far in the workplace?

Posted on March 7, 2011 by admin

At a “Preventing Harassment and Discrimination Workshop” the other day, one of the participants asked if we hadn’t gone too far in trying not to offend others in the workplace.  Interesting question.  Was he just asking for my opinion?  Was he looking to validate his own?  And isn’t mandated legislation really about making a correction?

Early in my career, it was not uncommon to have a manager with the authoritative philosophy of “my way or the highway.”  I guess that’s why they were called bosses. That mindset carried over as people were promoted and became the corporate norm.  Everyone screaming at everyone else.  Add to that, what I call hiring oneself.  Many interviewers, not trained in behavioral interviewing, would connect best with applicants most like themselves; thereby ending up with more of the same.

What was acceptable behavior has changed since then in no small part due to the people in the workforce changing.  Organizations differ too in their idea of what is or is not appropriate.  And if that were not enough, we have seen almost a tradition of litigious employees, looking for ways to reap monetary rewards for their discomfort.

So what are companies to do?  If policies are written too strictly, employees feel like they can’t have fun at work.  Studies show that creativity and productivity are directed related to how much people enjoy their jobs.  Rigid rules feel like walking on eggshells.  But if we allow offensive behavior, it’s like walking on bombshells.

It can be difficult to know whether what one person is saying or doing is offending someone else.  So the keys here are respect and communication.  Respect for the feelings of our co-workers and communication from the company that demonstrates respect for its employees.

Political correctness is the socially and morally way to behave in a diverse workplace taking into consideration race, gender, religion, age and lifestyles, etc.  Whether you agree or not, misunderstandings and conflicts are counter-productive and just plain bad for business.

Here are some tips for companies:

  1. Communicate a zero tolerance policy against harassment, discrimination and retaliation.
  2. Make it easy and confidential for employees to report any problems, or assist in an investigation.
  3. Train your entire staff annually.  It’s good business and it can be helpful in defending a claim.

 What do you think?  Has political correctness gone too far in the workplace?

Posted in ADA, American's with Disabilities Act, Human Resources | Tagged , , , , , | Leave a comment

What is workplace bullying?

Posted on February 17, 2011 by admin

Remember those bullies from the school yard?  Well now they are all grown up, haven’t changed much, except to join the work force as bullying adults.  They may actually be working with or for you.  And of course, making your life miserable.

Studies show that sand box bullies select their victims through a herd mentality.  They look for the one child that is different.  They could be smaller or younger, just generally weaker.

In the workplace, bullies choose their victims because they feel insecure, intimidated or jealous of them.  Being aggressive is one way to cover up insecurity.  We see more of this behavior in smaller, family run businesses where management has not worked in other larger, more professional environments.

So what is the difference between bullying and harassment or discrimination?  Harassment and discrimination is illegal and governed by Title VII of the Civil Rights Act of 1964.  There is legislation pending in some states against bullying in the workplace.  So far bullying is wrong but it is not illegal.

The differences between bullying and harassment are difficult to define. Bullying can happen repeatedly by one or more person.  Harassment, if severe enough, can be a one time event.  But harassment is always a form of discrimination protected under the law.

Both harassment and bullying are costly to businesses.  They result in more absenteeism, turnover, mistakes and lower productivity.

So what are companies to do?  Educate your employees on how to behave in the workplace. 

  1. Start with a policy that does not tolerate bullying, harassment or discrimination and explain the damaging effects. 
  2. Put a “no retaliation” reporting procedure in place.
  3. Watch out for aggressive, disruptive behaviors and provide coaching.
  4. Document incidents for future action.
  5. Most importantly, lead by example.

What would you like to see companies doing about workplace bullying?

Posted in Human Resources, Manager's Role, Performance Improvement | Tagged , , , , , , , , | Leave a comment

Why don’t training results stick?

Posted on February 11, 2011 by admin

Most managers and business owners think that providing formal training for their staff is a good idea.  They often ask me why the new skills learned during training don’t last.  After all, everyone wants to see a return on their investment dollars especially these days.

The environment that people return to after training has a greater impact on their success than the classroom learning they undergo.  What do I mean by that? 

  1. Who within the organization will role model the new behaviors for them?
  2. How often and how well will support and encouragement be provided?
  3. How will trainees be measured and held accountable for utilizing their new skills?
  4. How capable is management of delivering effective, performance improvement feedback?
  5. Are messages being delivered consistently across all levels and departments?
  6. What review and refresher meetings were built into the original plan to ensure success?
  7. Have the leaders of the organization removed barriers out of the way?

 

Training is just the tip of the iceberg that can be seen above the ocean waves.  What cannot be seen as easily is all the goes on below the surface.  If you want your training results to stick, make sure you have a system and process in place to support it.

Let me know why you think training results don’t stick.

Posted in Constructive Feedback, Human Resources, Manager's Role, Performance Improvement | Tagged , , , , | 1 Comment

What are employers including in their texting and communication policies?

Posted on February 6, 2011 by admin

We have become an increasingly mobile and technologically savvy workforce.  Practically everyone in business has a cell phone, whether company issued or personal that they use during work hours.  So what are companies rights and responsibilities in limiting their use and minimizing their risk?

Cases are currently being heard on an independent basis because of how rapidly the electronic environment is changing and there does not seem to be one standardized rule for all to follow.  But here are some guidelines.

  • Don’t make the mistake of thinking your business is too small to have a mobile device policy.
  • Whatever your policy covers, make sure you are consistent in enforcing it.
  • State that use of company issued devices is for company use only, but be realistic.  You cannot stop an employee from calling or texting home to find out how their sick child made out at the doctors.
  • If you are also supplying a company vehicle, you want to limit cell phone use whether hands-free or not.  Even if an employee is using their own vehicle for company business, you want to minimize the risk of serious accidents.
  • Cell phone use can also be restricted in company meetings where they are a distraction, or even at workstations where they are an indication of doing something besides work.  Where emergency call backs are anticipated, the vibrate only option is permissible.

Finally, be sure to add consequences for violating your policy and supply a receipt and acknowledgment form for all employees to sign off on.

What are you including in your company’s mobile device policy?

Posted in Human Resources, Manager's Role, Uncategorized | Tagged , , , , , , | Leave a comment

What are the differences between independent contractors and employees?

Posted on January 28, 2011 by admin

Many business owners have difficulty making the decision to hire more people.  Will they have enough business for someone full time?  Can they afford to provide benefits as well as compensation?  What does it cost them to continue doing everything themselves?  What happens if business slows down?

One solution is to hire independent contractors.  But what exactly is the difference between hiring an employee and an independent contractor?

One of the major benefits of hiring an independent contractor is less overhead.

  1. Owners do not provide independent contractors with benefit packages, such as health insurance or paid time off.
  2. Independents generallypay their own taxes.
  3. There is less stress involved in bringing in more or continuous business to support contractors who work project based.
  4. Lastly, many independent contractors are more experienced and knowledgeable than most small companies can afford to bring on full time.

The loyalty factor is one of the huge benefits in deciding to hire an employee.

  1. Loyalty leads to higher productivity and an ownership mentality.
  2. Employees grow with a company and can take on greater roles.
  3. Having dedicated employees means more flexibility in coordinating work flow.
  4. Business owners can have the opportunity to take time off.

Aside from the benefits, there are some formal definitions the law uses to differentiate between employees and independent contractors.  And because it is important for business owners to accurately classify the people providing services to them, here are two guidelines to help avoid penalties.

  • Degree of control – Does the company have control over what the individual does and how they perform their job?
  • Independent contractors – Are they free to perform their services for other businesses at the same time?

Since there is no magic formula, it is critical for businesses to document the factors they use in determining the relationship.

What do you think are the differences between independent contractors and employees?

Posted in Attracting Top Talent, Human Resources, Independent Contractor | Tagged , , , | Leave a comment

What is an employee bereavement policy?

Posted on January 22, 2011 by admin

Bereavement policies provide a consistent and defined procedure for employees who need time off for the death and funeral of close relatives, or to spend time with a seriously ill family member.

This paid time off is generally for the purpose of attending a funeral when it occurs on a work day and for making funeral arrangements.  Many companies require some written form of validation for coverage under their policy.

Immediate family members can include as many people as an employee’s spouse, parents, stepparents, siblings, children, stepchildren, grandparents, in-laws, and grandchildren.

While most companies that have a bereavement policy offer it to all full time employees, New York State law now requires inclusion of same sex partnerships.   If you currently have a policy in place, this is the right time to extend it to same sex partners.  Due to the changing nature of relationships, some companies offer domestic partner paid bereavement leave.

Because death of an immediate relative can have a tremendous impact on employees and their families, additional non-paid time off may be granted. This will be considered by the employee’s supervisor on a case-by-case basis.

The amount of paid days off varies from company to company and can depend on the degree of the deceased relationship to the employee.  Some companies even provide for up to half a day of paid bereavement leave to attend the funeral of a fellow employee, their immediate family member, or a retiree of the company,

Does your company have a defined bereavement policy and if so, what does it cover?

Posted in Bereeavement Policy, Human Resources | Tagged , , , , , | Leave a comment

What items should not be kept in an employee’s personnel file?

Posted on January 12, 2011 by admin

Large companies have an easier time of maintaining separate files for employees because they generally have more resources to manage them.  However, it makes good business sense for all companies to have accurate information available when needed.  And, many owners and managers will need to produce records at some point on demand.  So what are the most important items to be kept separate from personnel files?

The one critical file that must be kept separate from other personnel information is medical paperwork.  Under HIPAA (The Health Insurance Portability and Accountability Act) employees medical records are to be protected.  Some examples of those documents are:

  • Pre-employment physical and drug test results
  • Worker’s compensation documents
  • Medical leave of absence records
  • Insurance applications that include pre-existing conditions.  (Insurance forms that do not ask for medical background can be kept with personnel files as they fall under compensation.)
  • Disability forms

In addition, companies need to learn about disclosing this information as part of protecting employee privacy.

Lastly, the second most important items to be kept separate from personnel files are employees I-9 forms and supporting documents.  It is recommended to keep them in a separate binder in the event an audit occurs either by the U.S. Department of Labor or Immigration.

What other items do you keep separate from personnel files?

Posted in HIPAA, Human Resources, Manager's Role, Personnel Files | Tagged , , , , | Leave a comment

Why don’t performance evaluations work?

Posted on January 5, 2011 by admin

Managers frequently grumble about how much work writing performance evaluations for their staff is.  And if that isn’t enough, they complain next about how ineffective they are.  Why don’t these forms change performance for the better?

  1. Performance evaluations are not a magic wand.  Sitting down with people once a year will never produce the kind of results that frequent, timely performance feedback will.

2.   Memories fade.  Waiting until performance reviews are due will generally only cover events and behavior from the last three months regardless of what the first nine    months resulted in.

3.   Generalizations can be misunderstood.  Putting feedback into written language is a challenge for most people.  Trying to be diplomatic or objective, many managers compliment first then pinch or hammer their staff sending a mixed message.

So what can smart managers do to affect lasting performance improvement and change? 

  • They make sure that feedback is given all year long for both positive and constructive performance. 
  • They keep an incident file on each of their direct reports, even if it’s only on post-its in a folder.
  • They set goals and follow up meetings to check in on progress where change is needed.
  • They get in the habit of developing their people.

Let me know what you think.  Why don’t performance evaluations work?

Posted in Attracting Top Talent, Constructive Feedback, Human Resources, Manager's Role, Performance Improvement | Tagged , , , , , | Leave a comment