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4 Hot Employment Law Topics for Small Business Owners

September 6th, 2011

From wages to overtime to worker leave, it seems like every aspect of employment is covered by dozens of laws. As one of the top staffing agencies in Spokane, Washington, we also know that many times these laws are also vague and complicated, making it difficult for any business owner to navigate without consulting an expensive attorney.

To help you find your way through these murky waters, below are some areas of employment law that you must be aware of and deal with properly in order to remain in compliance:

1. Employees Vs. Independent Contractor

Classifying an employee as a contractor, rather than an employee, can be tempting because then you don’t have to put them on your payroll and withhold taxes. However, it’s not legal. And if you misclassify an employee as a contractor and don’t have the proper 1099 paperwork, your business could face fines or an audit.

2. Wages & Hours

The Fair Labor Standards Act (FLSA) is the law that governs minimum wage and overtime pay. It applies to most employers, including the federal government, state and local governments and most private employers. See if the FSLA applies to your business. Under the law, covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour. Also for covered, nonexempt employees, the FLSA requires overtime pay to be at least one and one-half times an employee’s regular rate of pay after 40 hours of work in a workweek.

3. Employee Privacy Rights

According to the U.S. Supreme Court, employees have very limited rights when it comes to privacy at work. Employers can monitor their Internet usage and also block sites from being accessed. Likewise, emails are considered company property if they were sent using a company email system; they can also be archived and monitored. In addition, under the Electronic Communications Privacy Act (ECPA), employers may monitor an employee’s business-related phone calls at work; but typically not their personal calls (even when they are made at the office).

4. Employee Leave

The Family and Medical Leave Act (FMLA) requires companies that employ a workforce of 50 or more employees to make unpaid leave of up to 12 weeks available to employees facing personal medical problems, the birth or adoption of a child, or the need to care for an immediate family member. FMLA applies specifically to employees who have worked for your company for at least 12 months and 1,250 hours and who intend to return to work at the conclusion of their leave. During their leave, you must continue to pay the benefits of these employees and save their jobs for them.

However, the law is written using somewhat vague language, making it ripe for abuse. For tips on fighting FMLA abuse, check out this blog post.

If you’d like additional advice and information on staffing and HR related challenges your company is facing, please contact Provisional. As one of the leading staffing agencies in Spokane, Washington, we have the expertise and experience required to help you overcome staffing and HR obstacles and recruit and retain the highest quality employees. We also partner with several strategic companies to offer a full range of employment solutions for you. Contact us today to learn more.

Employment Law: How You Could Be Held Liable if a Manager Lies

May 24th, 2011

In the recent 2011 case, Staub v. Proctor Hospital, the U.S. Supreme Court ruled that the ultimate decision maker, even if completely unbiased, is not safe in employment discrimination cases when the claimant can establish that a lower-level manager demonstrated discrimination.

In this particular case, two managers did not like one of their employees, Vincent Staub, because Staub was in the Army Reserves and as a result, he was absent from work one weekend a month and a few weeks out of the year. Rather than firing him, the managers decided to make working conditions so difficult that Staub couldn’t possibly live up to expectations.

The managers then handed the case to a hospital HR representative who reviewed it and, not knowing about the bias of the two managers or how they had conspired, fired Staub. Even though the HR representative acted in a good faith, Proctor Hospital was still found liable by the U.S. Supreme Court. (This has come to be known as the “cat’s paw” theory. The name of the theory refers to a 17th century French tale in which a monkey persuades a cat to reach into a fire to grab chestnuts. The monkey gets the chestnuts, while the cat gets a burned paw.)

In fact, the Court unanimously ruled that employers can be held liable for decisions that are at least made in part due to the influence of a manger or supervisor with discriminatory motives – even when the final decision maker is essentially used as a pawn. So even though, in the Staub case, there was no evidence that the HR representative had any ill feelings towards Staub or even knew how Staub’s managers felt, the Illinois hospital was still found liable for discrimination.

Clearly, HR and employment law can get complex. If you’re looking for some guidance and clarity, please contact Provisional. As a Northwest employment firm, we can offer you the HR and employment information you need to run your business efficiently and in compliance with complicated federal, state, and local employment laws. Please contact us today to learn more.

Top HR Mistakes Companies Make

June 8th, 2010

As an HR and staffing agency serving Seattle and Spokane, we’ve seen companies make a lot of HR mistakes. And, unfortunately, these mistakes can be like ticking time bombs, just waiting to explode.

So what can you do to avoid employee-related errors? Here are some tips:

Not establishing a sexual harassment policy.
Employers are liable for the actions of their managers. That means if you have a manager who is acting inappropriately, you are responsible. In light of that, make sure you implement an effective sexual harassment policy. Also, be sure to act in a timely manner to investigate any claims of sexual harassment.

Not completing I-9 forms for new employees.
This can be a costly mistake if the Immigration and Naturalization Service audits you. You are not required to photocopy employee-produced documents, but you must be sure to fill out the I-9 forms completely.

Failing to document disciplinary action.

Make sure you document the unsatisfactory performance of an employee. If it ever comes down to it and you have to fire them, you’ll have documented proof of their poor performance. Not keeping documentation can leave you vulnerable to discrimination lawsuits.

Requiring medical exams before a job offer.
The Americans With Disabilities Act (ADA) prohibits employers from asking candidates about disabilities or requiring medical exams before an offer of employment is made. You can ask a candidate to take a job-relevant medical exam only after offering a position to them.

Failing to take keep your workforce union free.
Be sure to remain in constant communication with your employees to deal with grievances. If employees don’t think you’re interested in issues impacting them, then they may look outside the workplace for representation.

If you have any questions about HR and employment law, please contact Provisional. As an HR and staffing agency serving Seattle and Spokane, we can answer any questions you may have and help to ensure you are in compliance with all necessary state and federal employment regulations.

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