Happy New Year! I hope the holiday season was a joy-filled one with plenty of time to spend with family and friends ― the most important people in our lives.
Now it’s January and time for making ― and implementing ― those dreaded annual “resolutions.” The economy, while slowly improving, remains weak overall, and many companies continue to cut back on expenses and payroll. In many ways, “business as usual” may not be “the usual” anymore. You’ll want to give special consideration to ways you can improve your business and avoid unnecessary risks and liabilities.
Here are some fundamental HR requirements you can address:
- The U.S. Department of Labor is working hard to enforce compliance with the Fair Labor Standards Act and paying particular attention to exemptions and “independent contractors.” Review all of your jobs classified as exempt and make adjustments as necessary. It’s also a good time to review your compensation plans to ensure they remain competitive.
- Audit your employee records filing system, making sure that any medical information is protected and filed separately from the rest of your personnel records and that all I-9s are filed properly and readily available. Check employee files again to make sure that nothing is in them that shouldn’t be and that files are kept in accordance with legal requirements. (Payroll records must be kept for at least three years, but keeping them for five years is even wiser.) With regard to I-9s, make sure that if you copy the documents presented by a new hire (e.g., a driver’s license), you have a copy for every employee. While there’s no requirement that you keep copies, your practice must be consistent. Protect I-9s well; the information they contain is prime data for identity thieves.
- Look over all your policies and handbooks to be sure the content is still current. And if you have no written policies, resolve to formalize them right away. Any employer that acts on an oral understanding or an arbitrary decision may be a proverbial sitting duck. Remember that many local and state laws change ― or are enacted ― each year.
- Be cognizant of Occupational Safety and Health Administration reporting requirements, and review your safety record. Workers’ compensation is expensive, and the only reliable way to reduce costs is to have fewer and less serious accidents.
- Make sure your policy on harassment includes harassment in all forms (sexual, racial, national origin, age, religion, and other protected categories under Title VII). It’s very important that every employee receives ― and provides a signed acknowledgment of receiving ― your policy at least once a year. Conduct training at least once a year as well.
- If you are considering reductions in force, review or develop processes and procedures for making cuts. Select the workers to be laid off objectively and for specific business reasons, and make sure your reasons are documented and legally legitimate. The bottom line: You must be able to answer the question “Why me?” in a way that won’t result in a lawsuit.
- Work on becoming a better manager of your employees. Good practices include:
- Treat people as adults. Have minimal rules and guidelines ― i.e., only those necessary to ensure an ordered, fair, and consistent work environment. Make sure the rules you do have are clear and consistently applied.
- Provide good training. Provide training in problem solving and in process improvement so employees have the necessary tools to improve continuously. Don’t assume they “ought to know” what to do.
- Be accessible. Walk through employee work areas regularly. Don’t hide in your office behind a closed door.
- Encourage open communication. Share your company’s overall goals. The more employees know about your objectives, the more they can act independently to achieve them.
Getting the year off to a good start makes the rest of it much better. Best wishes for a productive and prosperous 2013!
Joseph Godwin is a consultant with F&H Solutions Group who assists clients in a variety of compliance matters, with an emphasis on wage and hour issues. Contact him at (828) 687-4071 or at jgodwin@fhsolutionsgroup.com.