If you are a business
owner or manager, you know how complicated the employment and labor laws can be. You
not only are busy trying to run a business and make a profit, but you constantly have to stay tuned into the laws that affect
your business and your employees. It can be time consuming, overwhelming and
costly. And just when you thought you have a handle on things, all it takes is one complaint filed by a disgruntled employee
for your profits, and possibly business reputation, to flash before your eyes.
Did you know that
in California
during 2005 there were over $43.5 million in wages collected through wage and hour related claims? Out of that figure, over $2 million was due to break or meal period penalties, over $7.5 million from overtime
wages collected, and over $10.5 million from waiting time penalties (final paychecks).
All it takes is one big claim to learn that we no longer can hope we are doing things correct. And you should be lucky that you get a wage and hour claim and not a discrimination charge -- those can
be absolutely destructive.
So let me ask you,
are you one of those employers who thinks “it will never happen to me” or “I’ll take my chances”? That is a big risk to take in this day and age when the employees are becoming more
educated on the laws than the employers. Every move we make could be used against
us. Cynical maybe, but reality too.
Complying with the
laws is just the first step for employers. Implementing good human resources
practices to be have a reputation of being a good employer and to maintain employee satisfaction is becoming more and more
important in our labor market. This takes even more time, effort, and yes, sometimes
money.
Let’s have
you check on a few compliance issues by answering these questions:
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HR Good Practice Self-Assessment Questions |
Yes |
No |
Not Sure |
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Do you maintain the
resumes that come in response to job openings for the 2 year record retention requirement? |
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Do ALL new hires receive
the CA mandated PFL, SDI, sexual harassment, workers’ compensation and COBRA notices during orientation? |
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Are I-9’s completed
entirely on every new hire within 3 days of starting, and are they maintained in a separate file for at least 1 year after
termination? |
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Are you paying the 1
hour penalty pay due employees when they are not able to take their meal breaks (in addition to pay for working)? |
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Do your timecards show
the in and out times for each day of work, including meal periods, overtime and double time hours, and signatures. |
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Have you established
an Injury Illness Prevention Plan (in writing if over 10 employees)? |
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Do you conduct initial
safety training on all new hires? |
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Do you pay final wages
on the last day of employment or within 72 hours if the employee gave no notice? |
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Do you provide ALL terminating
employees with the CA UI form DE2320, Separation Notice, COBRA notices, and HIPP information? |
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If you have answered
yes to all of these, give yourself a pat on the back and keep on going. If not,
you are not alone, and there is help. Over the next several months I will share
with you what I call the 14 Fundamentals of Good Human Resources Practices that
will help you identify which human resources practices you need to develop or improve. Once
you have a list, you can start addressing the high risk ones first – legal compliance issues, then the medium level
risk items – best practices to avoid high risks, and then the low level risk items – best practices that will
help make HR more effective and efficient. Stay
tuned and be proactive in learning what you need to for your business to succeed.
