Chapter 7 Human Resources. You and Your Employees Your employees are a reflection of you, your company and your values Excellent personnel management.

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

Golden Rule

Treat your employees as you would like to be treated

Federal Laws

2 Agencies enforce Federal Workplace laws

US Department of LaborFair Labor Standard Act of 1958 (amended) Immigration Reform and Control ActFamily and Medical Leave ActNational Labor Relations Act (Wagner Act,Taft –

Hartley Act)Employee Polygraph Protection ActOccupational Safety and Health Act

Federal Laws

Equal Employment Opportunity ActAmericans with Disabilities ActCivil Rights Act (Title VII)Age Discrimination in Employment ActEqual Pay Act of 1963

U.S. Department of LaborFair Labor Standards Act of 1938

Minimum Wage Level Tipped, non tipped, Subminimum

Overtime WagesChild 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 ActMay take up to 12 weeks of unpaid leave per year forBirth of a childAdoption or Foster Care of a childCaregiving for a spouse, child or parent A Serious Health Condition

Does not apply to:Employees with less than one year of ServiceA part time employee with less than 1,250 hours per

yearCompanies with fewer than 50 employeesKey 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 LaborEmployee 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 ActWorkplace SafetyMSDS (Material Safety and Data Sheets) on

ChemicalsRequires some companies to keep records of health

and safety related claimsPrevents 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 tasksLimit questions on applications to job related

functionsDo 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 HarassmentBest Practices

Adopt Clearly Defined PoliciesEstablish a reporting method and make sure

communicatedTrain and inform employees about what is

appropriate or not.Ensure that reported incidents are taken seriously

and promptly investigatedTake Immediate Corrective Action

Equal Employment Opportunity Commission

Age Discrimination in Employment ActCompanies that employ more than 20 cannot

discriminate against job applicants or workers over 40 years old

Equal Pay Act of 1963Equal 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.

InterviewingSet 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.)

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 QuestionsCan 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 RecordsDriving RecordsWorkers Compensation Records (some states make

public)Credit RecordsEducational RecordsPrevious 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 forRegular PayPremium PayOvertime PayTips

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 planMeet key employeesReview Hand Book, company policies, rules and

regulationsPay rates, employee reviews, etcAssign a “mentor” to train the new hireAssign 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

InvoluntaryDischarge only for proper, well documented reasonsConsult legal counselConduct exit interviewsTreat 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