Archive for the ‘Employment Laws’ Category

8 Things You Need to Know BEFORE Rebuilding Your Workforce – Part 2

Wednesday, March 17th, 2010

Human Resources ConsultingIn yesterday’s post, we discussed the challenges employers will be facing as they begin rehiring employees into the workforce. We touched on four areas of which employers should be aware as they begin the hiring process -  Job Descriptions, Advertising, Screening and Applications. In today’s post, we will look at another four key elements:

  1. Interviewing
  2. Record Keeping
  3. Temporary Workers
  4. Layoffs and Rehiring

Interviewing. It is important to ensure that managers conducting interviews be trained in what they can and can’t say legally during the interview.  We recommend that at least two managers, or a manager and HR person, be present at all interviews. If an applicant calls later with a complaint, you have a witness for what was said. A set of interview questions that are used consistently for all applicants will help ensure that all applicants were treated fairly, and will assist you in determining the most qualified applicant.

Record Keeping. All of your hiring records should be kept for at least two years according to Title VII and Americans with Disabilities Act. This would include all applications of those not hired, advertisements, and interview notes. The Lilly Ledbetter Fair Pay Act has injected uncertainty into the duration of an employer’s record keeping requirements with respect to pay decisions. This guidance is based upon the noted statutory law. In this period of uncertainty, before destroying any documents related to decisions about an employee’s pay, we recommend you conduct an audit of your pay practices, and seek legal council.

Temporary Workers. Many companies, when they are unsure of their long term hiring needs, hire temporary workers. As the business needs are clearer, employers can shift to full-time hiring, or hire the temporary worker. Temporary or part-time workers can be a good option because the company is able to observe the employee’s job skills. However, hiring temporary workers can be costly because many temporary placement firms charge a substantial fee if the employer permanently hires the temporary worker.

Lay-offs and Rehiring. If you have been through a reduction in force, and are considering rehiring, there are a few considerations. In some layoffs, employees are terminated with an expected return date. For instance, many businesses layoff for the winter, and employees are rehired in the spring. This is usually the case when an employer operates under a collective bargaining agreement, or employs trade related employees. However, in our current economy, when the reduction in force is due to business slowdown, layoffs are generally considered final terminations. Unless you made a promise to recall an employee, you are not obligated to do so. You are free to go through the selection process, and choose the most qualified applicant. Be cautious to ensure there are no discriminatory reasons for not returning a former employee, or promises to the contrary, in which case, you would need to restore the prior employees.

Don’t go at it alone.

While the laws governing employment regulations, hiring and terminations are complex, you should realize there are valuable resources available to assist you along your employment travels. Consider engaging the support of a Human Resources Consulting firm, or a Professional Employer Organization. These firms are experts in employment law and can significantly help reduce your risk of making a bad employment decision.

(Source: EPLI Pro, March, 2010 Newsletter)

Disclaimer

8 Things You Need to Know BEFORE Rebuilding Your Workforce – Part 1

Wednesday, March 17th, 2010

We read in the news that the economy is improving, and unemployment is dropping slowly. The recent labor market outlook surveys show that a majority of employers are somewhat optimistic about job growth. This article discusses a few of the issues you should consider before rehiring or hiring in this post recession job market.

Employers will likely encounter large applicant pools due to the number of currently unemployed individuals. This will pose challenges for screening applicants to ensure you find the right employee. Also with many applicants competing for few jobs, there is the increased possibility of claims of discrimination, as many of those who were laid off during the recession may be in protected classes. Applicants that have been in the job market for awhile can be more challenging. For instance, we are seeing an increase in applicants calling back after being turned down for a job saying, “I felt like the interview was going well, until the interviewer asked about —. I think that is why I wasn’t selected.” This makes it all the more important for employers to develop a recruitment plan for finding the right employee. The plan should be consistently followed in order to document the reasons for selecting an individual applicant, and the reasons why others were not.

In this and following posts, we will review the following areas:

  1. Job Descriptions
  2. Advertising
  3. Screening
  4. Applications
  5. Interviewing
  6. Record Keeping
  7. Temporary Workers
  8. Layoffs and Rehiring

Job Descriptions. The job description is the first step in the recruitment process. A good job description accurately reflects the essential functions of the job. It should include the skills, knowledge, qualifications, and experience required. It is important to include the physical requirements of the job to evaluate applicants with disabilities. An applicant with a disability, like all other applicants, must be able to meet the employer’s requirements for the job. A good job description can assist you in this process of evaluation.

Advertising. Describe the position in the advertisement consistent with the job description. Consider placing key criteria for selection in the advertisement to assist in the screening process. Avoid terms that would have a discriminatory affect, for instance “energetic, young, professional”. You may want to consider local workforce development organizations that work with displaced workers. They may have programs that will assist you in the screening process. Maintain a copy of all advertisements as part of your hiring records.

Screening. The screening process for a large applicant pool can be overwhelming. Consider phone interviews to help sort through resumes or applications. Many employers also use pre-employment testing. While testing tools can assist you in determining the most qualified applicant, they can violate antidiscrimination laws. Therefore, employers should consult a professional before using personality tests or other standard tests, as they might not be in compliance with the law for certain positions. Tests that are generally accepted if applied to all candidates for a position are typing, computer skills test, or job task demonstrations. For instance, if lifting is required, you can ask applicants to show they are able to lift the necessary weight.

Applications. Ensure that your employment application is legal and accurate. You should have a question about criminal convictions with appropriate legal limitations, whether the employee can perform the essential functions of this job – with or without reasonable accommodation -, and can they meet the attendance requirements of this job. An application that complies with federal and state laws is available on our website.

In our next post, we will review Interviewing, Record Keeping, Temporary Workers and Layoffs & Hiring.

(Source: EPLI Pro, March, 2010 Newsletter)

Disclaimer

Co-Employment vs. ASO – Which HR Outsourcing Arrangement Makes Sense for Your Business?

Tuesday, March 2nd, 2010

HR OutsourcingIn the Professional Employer Organization (PEO) industry, there are typically two types of arrangements – Co-Employment, and ASO (Administrative Services Only). Both assist small and mid-size employers with their human resources tasks and responsibilities, but approach the relationship from two very different directions. Our next few posts will discuss the difference between these service-models and which one may make more sense for your business.

Co-Employment

Co-Employment is the relationship created between a PEO and its clients, wherein the PEO assists its clients in reducing the risks and responsibilities of being an employer. Co-Employment is defined as the contractual allocation and sharing of employer responsibilities between the PEO and the client. The PEO assumes the role of the Administrative Employer and is recognized as the legal Employer-of-Record. The PEO takes on numerous administrative, and strategic, functions for their clients. These functions include:

  • Paying the Employees and Filing Payroll Taxes
  • Issuing Workers’ Compensation Insurance Coverage
  • Providing Employee Health Insurance Coverages
  • Training Management and Staff
  • Implementing Risk Management and Safety Plans
  • Providing Employment Consulting and Compliance
  • Managing Administrative Human Resource Functions

The client maintains the role as the Administrative Employer and continues to manage and oversee all day-to-day activities relating to their internal operations. They provide worksite employees with the tools, instruments and place to work, and continue to oversee the hiring, firing, establishment of wages, and direction of the workforce. The PEO assists in ensuring that worksite employees are provided with a worksite that is safe, conducive to productivity, and operated in compliance with employment laws and regulations. In addition, the PEO provides worksite employees with workers’ compensation insurance, unemployment insurance, and a broad range of employee benefits programs.

Removing Distractions and Reducing Overhead

By providing these services, PEOs enable their clients to concentrate on their core business without the challenges and distractions associated with the “business of employment.” As a result, PEOs enhance the profitability of their client companies. The PEO’s economies-of-scale enables each client company to lower employment costs and increase the business’s bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on the PEO. The client also can reduce hiring overhead. Costs related to the monitoring of, and compliance with, employment laws are reduced, as are the often significant costs of failure to comply with such laws. In addition, the PEO provides time savings by handling routine and redundant tasks for its clients. This enables the business owner to focus on the company’s core competency and grow its bottom line.

In our next post, we will discuss an alternative to co-employment, known as “ASO” – Administrative Services Only. Most of the same services, without creating a co-employment relationship.

Case Study, Part II – Medical Practice Reduces Risk Through HRO

Monday, February 22nd, 2010

Our last post introduced a growing medical practice with their share of Human Resource challenges. In this second and final post, we ‘ll look at the HR solutions offered by CPEhr and the concrete results they experienced.

HR Solutions

Upon entering the HR Outsourcing relationship with the practice, a CPEhr Human Resources Specialist immediately began to review their policies and employee documentation. Many gaps in employment protocol were identified. An array of new employment forms were created, compliant procedures were implemented and new guidelines were put into practice. The Director and Office Manager received training on proper employee review and termination procedures, and their designated HR Specialist was invited to attend exit interviews and assist in the termination process.

“I have run the office for more than a decade,” says the Director, “But knowing CPEhr is here to guide me through all employee matter offers tremendous peace of mind. Now, instead of being distracted by minor personnel issues, I can focus on the practice. CPEhr has truly become our partner.”

The most critical assistance occurred when the practice decided to outsource their billing function and to layoff the entire department. CPEhr assigned several HR staff to assist in the layoffs, with proper termination procedures, protocol and severance packages that were in the best interest of both the practice and the employees. The Director sums up the incident succinctly: “We could never have done this on our own.”

Real Results

Since joining CPEhr, he feels that the day-to-day protection he experiences in the area of employment exposures is immeasurable. “I now have tremendous peace of mind. CPEhr has become our ‘go-to resource.’ Without this type of relationship we end up making our own decisions, without proper knowledge of the law, and will ultimately make a mistake. You think you can use common sense, but common sense and the law rarely match!”

The Director says the benefits of CPEhr were immediately realized, as the new systems and processes were implemented and functioning within 30-60 days. “I recognize the reality that as the practice grows. So too would the need to hire an HR Manager. However, by outsourcing to CPEhr , we don’t need to spend the money on another hire and can use those funds to invest back into patient care and clinical research.”

HR Outsourcing Case Study – Medical Practice Reduces HR Risks Through HRO

Thursday, February 18th, 2010

human resources outsourcingSometimes change is hard. But when this medical practice recognized their existing HR systems were inadequate in the face of rising employment challenges, they selected a HR Outsourcing and Professional Employer Outsourcing relationship to assist them in reducing their HR risks and exposures. Our next two posts will look at their challenges, and the solutions offered by CPEhr.

Company Background

This medical practice was founded in 1980 with the mission to provide the highest quality health care combined with clinical research and education. It is currently one of the few cardiovascular practices in the country that balances private practice with academic medicine, and runs one of the world’s largest cardiac transplant programs. They currently employ over 30 employees, but are opening two more locations and are expecting to significantly grow their employee base in the coming months.

It was obvious to the Executive Director of this prestigous medical practice that his time would be best spent on providing superior patient care and conducting scientific research. Managing employee issues should have been the last thing on his mind. Unfortunately, it wasn’t.

Business Challenges

As the practice grew in size and prestige, the Director recognized the critical role Human Resources played in his practice. “We do not have a dedicated HR staff,” he explains, “But I understand that human resources can’t be put on the back burner. HR is still a critical part of our practice.” With the lack of sufficient internal HR resources they struggled to standardize employee practices and stay abreast of changing employment regulations. While the Director and his Office Manager continued to personally handle the employee relations, an incident pushed them to consider outsourcing their human resources to a professional firm.

An argument ensued between two front office staff, and the altercation ended with one employee threatening to physically harm the other. The event was witnessed and the employee was let go. A short time later she sued the practice for race discrimination. Even though, at the time, the Director was sure he was doing the right thing, he ended up in an 8 month lawsuit with the EEOC that cost him hundreds of hours of time and distracted him considerably from running the practice. While he ultimately won the case, he realized it was time to work with human resource professionals. He needed a firm who would help him structure an HR system to prevent this from recurring, and to take over the administration of a lawsuit if one ever occurred again in the future.

“As our firm continues to grow and we open new offices, managing the staff in multiple worksites is only going to become more complicated,” he says. He invited CPEhr to present their outsourcing HR solution, and quickly engaged their services.

Our next post will review the HR solutions implemented by CPEhr.