Human Resources Consultants, LLC Employment Issues in Finding and Keeping the Right People Non-Profit Talent and Culture Summit April 6, 2017 Washington, DC   Alan Luba HR CONSULTANTS Your Better Option Human Resources Consultants, LLC alanluba@verizon.net 703-937-7837 (Phone) ~ 703-502-7904 (Fax) WWW.HRCONSULTANTSLLC.COM

WHY? We’ll consider issues, requirements, questions related to all employers. Each group represented here today is an employer under the law, federal, state, local.

Fair Labor Standards Act (FLSA) Defines eligibility for overtime pay Sets minimum wage (national, may be pre-empted by states) Overtime Pay If eligible employee works more than 40 hours in a normal work week … Must be paid for all hours worked in excess of forty Pay rate at 1.5 times regular hourly wage rate Overtime hours must be approved by manager, but … If overtime hours are worked and manager failed to monitor, OT must be paid

Fair Labor Standards Act (FLSA) Defines eligibility for overtime pay Classifications … Exempt from Overtime Pay requirements Generally management, executive, supervisory, professional categories Paid annual salary – consistent amount of pay each pay period, regardless of number of hours worked A position correctly classified as “Exempt” must be paid at least $47,476.00 annually Non-Exempt from Overtime Pay requirements OT hours paid at 1.5 times hourly wage Generally, work is not management or supervisory; work carried out according to established work methods; positions do not make or enforce work processes or company policies Review Handout on FLSA Classification

Employee or Independent Contractor? Employees are paid regularly and the employer deducts payroll taxes, FUTA, FICA, Benefits premiums, etc Employees are supervised by the employer, use employer facilities and resource Pay is reported on the W-2

Employee or Independent Contractor? Independent Contractors are hired for specific task Independent Contractors carry on their work independently, with minimum employer oversight Use their own facilities, resources Should be paid a project fee Pay their own taxes, benefits, etc Should have other “clients” on same basis Pay is reported on the 1099

Employee or Independent Contractor? US Dept of Labor and US IRS monitor these classifications Significant fines and penalties for mis-classification Size or type of employer doesn’t matter

“Policy” Manuals, Handbook Important as communication tools Communicate employer’s requirements, culture, expectations to employees Communicate compliance with laws and regulations in case of legal actions Consider contents as “guidelines” for day-to-day operations, not as rules carved in concrete Not a contract between employer and employee

Personnel Files What you DO NOT include is as important, or more important, than what you do include Files are confidential Limit access to “need to know” Employee, with restrictions Manager Outside people with bona fide interest Auditors Govt agencies Secure storage

Personnel Files Do not include: Health related information (benefits enrollments, etc) Negative information – retain separately during and after any adverse actions I-9 forms/E-Verify information WHY???

Hiring the Right People What sets you apart from the next guy? How do you communicate this? Non-Profit v. For Profit employer Which is more attractive to potential employee? Why? How do you “MARKET” your organization to the labor market?

Hiring the Right People Define and understand the real job and real job requirements Make sure that interviewers and decision makers understand the above Sources … What have you found to be helpful? Internal referrals? Job Boards? Other?

Fair Employment/EEO Discrimination in hiring, work opportunities prohibited by federal, state, local laws Protected “classes” … - Race/Nationality Gender and gender preference (in most areas) Age Disability/Pregnancy Military status

Fair Employment/EEO Enforced at local, state and federal levels by Human Relations Commissions, EEOC, others Covers not only hiring; also termination, training opportunities, equal pay, access to “benefits” of employment (not health care only)

Position Descriptions Include what is really important for the job’s mission: Key Responsibilities Key Accountabilities Key Tasks Reporting relationships – up and down Fiscal/Budget responsibility Personal criteria: Education, Prior Experience FLSA Classification

Position Descriptions Do Not … Structure job requirements to favor or disqualify a protected class Include excessive detail; keep job requirement open, flexible Most important bullet point should be “And other duties as assigned”!!! Job Title is not as important as the job content!

Position Descriptions BFOQs Bona Fide Occupational Qualifications

Performance Planning We all want feed-back on how we’re doing We all want guidance on what we should be doing and expectations for performance Determine why you conduct performance Reviews … Communication, feedback Document acceptable and non-acceptable performance Drive compensation, advancement decisions Other?

Performance Planning Methods Considerations Personal – one-on-one meeting between supervisor and employee; paper forms to complete together Not so personal – automated review systems What works best in your culture Considerations Honest, open communication Can be perceived as confrontational, may be difficult for participants Include and review what is relevant to position and employee, avoid generalizations

Disciplinary Process To correct performance deficiencies, significant work related infractions Provide guidance and establish goals and time lines for correction Specific to issue “Punishment should fit the crime” Confidential Document! Document! Document!

Compensation Total Compensation includes: Base Pay Employer contributions to: Taxes, FICA, FUTA, SUTA, etc Benefits premiums Pay for time off Bonuses Other “perks”

Compensation Internal Equity External (Market) Competitiveness Your budget considerations Pay for the job, not the person Consistent pay for similar job requirements Confidentiality External Compensation information sources What has worked for you?

Terminating Employment Voluntary or Involuntary Involuntary Cause Economics Be aware of discrimination, retaliation potential Voluntary Resignation Job Abandonment Considerations Employment at Will Notice? Severance? Communication to employees?

Termination of Presentation Questions? Discussion? Thank You!!! Alanluba@verizon.net 703-937-7837