Rumbles

Wow, this blog is part of:

Top 50 HR Blogs by BSchool.com

100 Awesome Blogs for Your Business Education by Online-College-Reviews.com

 

Categories

 

Get more from your software.

 

Is Your Contractor Really Independent?

I talk with a lot of small business owners who tell me they are using Independent Contractors (I/Cs) rather than hiring employees. But have they really thought it through? The one thing few companies are doing when making the decision between I/Cs and employees is checking the legal liability of their decision.

Did you know that the IRS, Department of Labor, state agencies, Congress, state legislatures, courts, class action attorneys, and unions care about your decision? What those entities have in common is that they assume your worker is an employee and that it’s your responsibility to prove that you are using an I/C. IRS calculates it loses $3-5 billion per year because of misclassified workers and has created a new audit program in an effort recoup some of these losses.

The biggest determining factor seems to be the level of control you or the workers have regarding behavior, finances, and the relationship. Although each entity has its own testing requirements, an I/C is likely to:

Have a financial stake by risking a profit or loss from the work; Furnish his own tools and/or equipment needed to complete the work; Be paid by the job rather than by the hour;  [click to read more ...]

When You’re “On Notice”

When you think about your employment risks (assuming you think about them at all), what do include in that process? Are you expecting employees to walk up to you and say something directly to your face? Or have you and your supervisors been trained to pay attention to the more subtle clues that the company has been put “on notice” for something?

Let’s look at a situation: You’re a supervisor working in your office when you realize you can overhear three  female employees talking in the hallway outside your office. One  says, “Can you believe Tom mentioned sex during yesterday’s sales meeting?” The second says, “Oh, he always talks like that.” The third responds, “Yeah, he always seems to have sex on the mind.” Should you, or are you required to, do anything? Do you consider this “water cooler talk” and ignore it since they didn’t know you could hear? Or do you take action and, if so, what type of action?

Let’s take our situation a step further. Three months later, during your annual sales meeting, a female employee files a complaint alleging that Tom raped her at the hotel. This complaint obviously requires an investigation so I’m not going whether or not you’ll have  [click to read more ...]

Have You Papered Your Employees?

Consulting with companies that don’t have or need a full-time HR person (my specialty) continues to bring me surprises. When I first started consulting I discovered that neither the state nor federal government websites offered new employers information about being an employer beyond how to obtain an Employer’s Identification Number (EIN). Not a thing about the fact that hiring employees automatically brings a business into the world of HR … or it should. It was both a surprising and disappointing discovery.

Considering that federal employment laws apply to every employer in the U.S., you’d think some kind of "cheat sheet" would be available to give new (or experienced) employers a heads-up on what they need to do to be compliant with these laws. Yes, you can read the full text of the federal laws but no help is provided in how to implement them or what they mean in the day-to-day running of your business.

I recently reviewed a 45-page booklet provided by the SBA (Small Business Administration). Lots of great information in general for business owners but it only told readers how to get an EIN, not how employment laws may affect how they do business and deal with their employees.

Is it  [click to read more ...]

Fed’s Snake in the Grass

This year is the first that I can remember where there were more Federal changes to employment laws than California changes. That alone is historic! But the changes to COBRA  almost seem like they should have been California’s idea because they are so favorable to the employee … or, in this case, the ex-employee.

The American Recovery and Reinvestment Act of 2009 (ARRA) was passed on 2/17/09 as part of Obama’s stimulus package. Employers subject to COBRA will now be providing a subsidy to offset the cost of COBRA coverage for employees who were (or are) involuntarily terminated (fired or laid off, unless terminated for gross misconduct) between 9/1/08 and 12/31/09. Yes, it’s retroactive!

You only have until 4/18/09 to get notices out to the affected employees and must send a notice even if they did NOT elect to take COBRA when it was previously offered to them. New employees and newly terminated employees are to receive special notices of these COBRA changes. These model notices can be found in HR Jungle’s free HR forms.

The subsidies are for up to 9 months for COBRA-eligible employees involuntarily terminated and also for affected spouses and dependents who  [click to read more ...]

Latest Immigration I-9 Form

Homeland Security has once again revised the Immigration & Naturalization Service’s I-9 form. As usual, you can get immediate access to the latest I-9 form on my website.

Just so you know what to look for, the newest version has an 06/30/09 expiration date in the upper right corner of page one. Although this doesn’t affect any of the I-9 forms you’ve already completed and have on file, you should discard any blank copies of other versions and start using this latest version immediately.

 

Sick Leave That Makes You Sick

As you’ve probably noticed, California is always leading the way for new employment laws. However, within California, that leader is San Francisco and it’s often scary to realize what local laws San Francisco has enacted. Let’s just say that, while it’s tough doing business in California, it’s tough and expensive in San Francisco.

The latest bill to hit California proposed by a San Francisco Assemblyman concerns sick leave. This bill, AB 2716, has already made it past the Senate Labor and Industrial Relations Committee and is lined up for the Appropriations Committee. So what’s so bad about AB 2716? It forces every business in California to provide a specific minimum amount of paid sick leave to every employee.

Here’s the actual language:

This bill would provide that an employee who works in California for 7 or more days in a calendar year is entitled to paid sick days, which shall be accrued at a rate of no less than one hour for every 30 hours worked. An employee would be entitled to use accrued sick days beginning on the 90th calendar day of employment. The bill would require employers to provide paid sick days, upon the request of the employee, for diagnosis, care, or treatment of  [click to read more ...]

July 2008 Updates

It’s mid-year and there are a few changes that have come into effect now.

Hands-Free Cell Phones While Driving

I’ve discussed this before, but now it’s actual law in California that you cannot hold onto your cell phone while driving. It’s time to make sure you have a policy about this and that all your employees understand your policy.

I’m watching for the next stage of this law, which will probably be amendments about how to dial without using your hands. Early studies have already shown that it’s talking on the cell phone that distracts drivers much more than holding the phone. We’ve probably all experienced that problem … passing our freeway exit or turn because we’re deep into a conversation. I guess the advantage of this new law is that at least we’ll have both hands on the steering wheel when we make those sudden turns!

IRS Mileage Reimbursement

We’ve all been complaining about gas prices so it should come as no surprise that IRS has been listening. IRS has increased their mileage reimbursement rate from $0.505 to $0.585, effective July 1, 2008.

Now here’s a little food for thought about mileage reimbursement for your employees. Most small businesses that  [click to read more ...]

Why Hands-Free Talking

As a California employer you may have thought at some time or another that the state politicians are just out to get you. Making things difficult for employers isn’t just a complaint, it’s a fact.

However, once in a while you hear things that are behind the new legislation. The law that goes into effect on July 1st requires the use of hands-free devices if cell phones are being used while driving. This isn’t an employment law but employers need to pay special attention. Why? Because you have deeper pockets than the average individual out there driving.

I didn’t say it was fair but it is your responsibility to keep others safe while your employees are on the road. We’ve all been talking on the phone while driving and missed an exit or made some other driving mistake that wouldn’t have occurred if our full attention was on the road. Talking while driving is a distraction … whether you’re talking with a passenger or on the phone.

Those distractions can be costly, both in human life and the bank balance. A few examples (from Powell Goldstein LLP) include:

An insurance company’s employee dropped his cell phone while driving. As he bent  [click to read more ...]

Tips for Supervisors … Not

In a previous blog I wrote about the Starbucks lawsuit regarding supervisors getting a share of the tip jar. The San Diego Superior Court is not in agreement with Starbucks.

Starbucks insists that the shift supervisors are eligible to receive a share of the pooled tips because they often work the counter in addition to other responsibilities. However, the court has decided that the shift supervisors also direct the work of the baristas and that makes them ineligible.

California law states that managers, agents, or owners of businesses can’t share the tips. The shift supervisors were agents of the business, according to the court.

Needless to say, Starbucks will fight this. However, for now, the baristas have won $105 million. This is the combined amount of $86.6 million in tips that had been given to supervisors, plus $19.1 million in interest. The money represents an eight-year period of baristas and supervisors sharing tips.

What should you take away from this court decision? Mostly to remember that, in California, knowing you’ve classified your employees properly is important. Know the law or talk with someone who does.

Even if your company doesn’t have a tip jar, you probably have exempt employees. The  [click to read more ...]

Time for a Break

California is hitting companies hard when rest and meal breaks are not honored … or properly documented. Protect your company by handling breaks correctly.

Meal breaks must be at least 30 minutes and provided if your employee is scheduled to work more than five hours. However, if your employee is working no more than six hours the meal break can be skipped. Be sure that employee clocks out within the six-hour window though!

You absolutely want to record those meal breaks. If you use a time clock, have it well documented that employees must clock out for meal breaks and clock back in upon returning to work. If you use handwritten timecards, have the employee write in their meal breaks and initial each day (or weekly at a minimum).

Rest breaks are harder to document because employees don’t clock out for them. So, again, make sure you put in writing your rules for 10 minute rest breaks every four hours. And don’t ignore them yourself by not calculating work schedules to allow for them.

If you don’t think this is serious, ask Rady Children’s Hospital. They’ve had to pay nearly $2.8 million to compensate about 2,000 current and previous employees who  [click to read more ...]