Chapter 7 Human Resources

You and Your Employees Your employees are a reflection of you, your company and your values Excellent personnel management begins with selecting the right people Setting rules, expectations, and consequences is essential to providing a healthy work environment

Treat your employees as you would like to be treated Golden Rule Treat your employees as you would like to be treated

Federal Laws 2 Agencies enforce Federal Workplace laws US Department of Labor Fair Labor Standard Act of 1958 (amended) Immigration Reform and Control Act Family and Medical Leave Act National Labor Relations Act (Wagner Act,Taft – Hartley Act) Employee Polygraph Protection Act Occupational Safety and Health Act

Federal Laws Equal Employment Opportunity Act Americans with Disabilities Act Civil Rights Act (Title VII) Age Discrimination in Employment Act Equal Pay Act of 1963

U.S. Department of Labor Fair Labor Standards Act of 1938 Minimum Wage Level Tipped, non tipped, Subminimum Overtime Wages Child Labor Laws Hour restrictions Equipment and jpb restrictions Record Keeping Keep Records for 3 years Overtime Exemptions Managerial vs. non Managerial

U.S. Department of Labor Immingration Reform and Control Act of 1986 Restricts the hiring of illegal entrants into the United States Using Form I -9, Employers must obtain written proof of identity and employment eligibility Within 3 days of employment Keep on file for audit purposes Having a U.S. Citizen only policy for hiring – or “green card only” policy is illegal, unless specifically exempted.

U.S. Department of Labor Family and Medical Leave Act May take up to 12 weeks of unpaid leave per year for Birth of a child Adoption or Foster Care of a child Caregiving for a spouse, child or parent A Serious Health Condition Does not apply to: Employees with less than one year of Service A part time employee with less than 1,250 hours per year Companies with fewer than 50 employees Key Man Provision

U.S. Department of Labor National Labor Relations Act Union Related Prevents an employer from restraining employees from organizing and exercising collective bargaining rights

U.S. Department of Labor Employee Polygraph Protection Act Restricts the use of a polygraph except in certain defined cases (theft or screening employees with access to controlled substances) The Occupational Safety and Health Act Workplace Safety MSDS (Material Safety and Data Sheets) on Chemicals Requires some companies to keep records of health and safety related claims Prevents discrimination against employees who file illness and safety related claims

Equal Employment Opportunity Commission Americans with Disabilities Act (ADA) Prohibits discrimination against a qualified person with a disability (or HIV) who with or without reasonable accommodation, can perform the essential functions of a job Most accommodations cost less than $50.00 Employers have the right to reject or fire applicants who pose a significant risk to health and safety

Americans with Disabilities Act All employers with 15 or more employees must comply Best Practices include: Accurate and updated job descriptions, including physical tasks Limit questions on applications to job related functions Do not ask about disabilities, past health problems, drug abuse, prescription drug use, hospitalizations or Workers Compensation Claims Have a set interview format that is strictly job function related Conduct all interviews in places that are accessible.

Equal Employment Opportunity Commission Civil Rights Act of 1964 (Title VII) Prohibits discrimination on the basis of Gender National Origin Skin Color Race Also forbids sexual harassment Sexual Harassment laws apply not only to management – but employees and customers as well.

Sexual Harassment Best Practices Adopt Clearly Defined Policies Establish a reporting method and make sure communicated Train and inform employees about what is appropriate or not. Ensure that reported incidents are taken seriously and promptly investigated Take Immediate Corrective Action

Equal Employment Opportunity Commission Age Discrimination in Employment Act Companies that employ more than 20 cannot discriminate against job applicants or workers over 40 years old Equal Pay Act of 1963 Equal wages must be paid for jobs that are substantially the same in skill, effort and responsibility.

State Level Employment Laws Workers Compensation The State fund that covers on the job bodily injury or death while on the job Employers pay into the fund based on industry, number of employees Payments are usually made quarterly

Determining Staffing Levels Have proper balance of permanent and part time employees As a general rule, Labor should be between 20% – 30% of Sales Computing Labor Costs – Not Just the paycheck

Labor Costs - Employer Employers Share of Social Security Federal and State Unemployment Workers Compensation Holiday, vacation and sick day benefits (if applicable) Bonus and other compensation Health Insurance paid by employer (Affordable Care Act) These costs can add up to as much as 40% of total labor costs

Recruiting The best recruitment sources are your own employees Use caution – too many close employees – one persons problems become everyone’s Use contacts - vendors, educational institutes Keep records and applications submitted in response to advertising.

Interviewing Set up a system that is easy to follow and use it every time – keep records Before – Establish the company personality – communicate it. During – Establish a cordial, not overly friendly atmosphere free from interruptions Keep control of the interview Let the applicant do the talking Concentrate on what they are saying and deliver a deliberate response After Close with an explanation of status and next step Follow up with a communication on final status

Interviewing Ask Job related and Legal questions – Do Not Ask About: Age or date of birth Country of origin Maiden Name Relatives names (unless applicant is a minor) Past Residences Religious Affiliation

Interviewing (Cont.) No Photographs until after the applicant is hired Membership in organizations Marital Status Pregnancy or future child bearing plans Age and number of children Diseases or major illnesses Credit Rating Owns or rents home Arrests not involving convictions Native Language No Photographs until after the applicant is hired

Interviewing – Proper Questions Can you meet specified work schedules? Are you of legal age to perform work (i.e. Bartending) Do you have reliable transportation Educational or military experience as it relates to the job – but not Discharge Status Professional Organizations References Like best about your last job Long term plans Strengths and weaknesses

Reference and Record Checks The more responsibility - the deeper the checks Criminal Records Driving Records Workers Compensation Records (some states make public) Credit Records Educational Records Previous Employers – Typically, by this time you have provisionally hired the applicant pending the above checks – which they have given written authority for you to do

Employee or Independent Contractor? (W2 or 1099?) The IRS has developed a series of questions – Do you provide the person with detailed instructions? Are their services vital to the company operations Do you set the hours? Does they work full time for the company? Do you control the order and sequence of the work performed? Do you furnish tools or equipment to the employee?

Payroll Set clear wages and policies for Regular Pay Premium Pay Overtime Pay Tips Record Hours – keep records for at least 7 years

Employee Benefits Employee Meals and Breaks Need to be defined and enforced Vacation Pay Sick Pay Holiday Pay Health Insurance – Affordable Care Act Jury Duty

Orientation and Training The First Day on the Job determines how well things will go. Have an Orientation plan Meet key employees Review Hand Book, company policies, rules and regulations Pay rates, employee reviews, etc Assign a “mentor” to train the new hire Assign Performance goals and review date (typically 30 -90 days)

Motivating Workers Treat your staff as you would like to be treated Show respect and compassion, but be firm It is not a democracy Don’t be afraid to get dirty Reward high performers Be fair in discipline

Discipline and Termination Enforce your policies Discipline normally follows a certain set of step – Verbal Warning (documented date and time) Written warning(s) Suspension without pay Termination

Terminating an employee Two types of termination – Voluntary – resignation Involuntary Discharge only for proper, well documented reasons Consult legal counsel Conduct exit interviews Treat the employee with dignity If you feel endangered, have security or another employee with you.

Employee Handbook Cover all rules and regulations Review and Update frequently Go over in detail at orientation Have employee sign that they have received a copy, understand the contents and have had an opportunity to ask questions.

Next Class Quiz Chapter 7 Chapter 10 - Pricing