Here are some frequently asked questions you may also have yourself when deciding if you need some assitance with your HR functions:
Q. Do you have current employment posters up (2011)?
A. If not, you are subject to various fines with government agencies in the thousands of dollars.
Q. Do you have your Illness & Injury Plan in writing?
A. The maximum fine by OSHA for not having this plan in writing is $25,000. There is an additional $25,000 fee per violation for not having implemented the plan. The same penalty applies for not having the correct postings and training records. These safety plans are for all employers, not just those in the industrial field. It also applies to offices. Companies need to have an emergency evacuation plan, a workplace violence plan, and a safety committee (with regular meetings) when there are over 10 employees.
Q. If I put an employee on salary, are they exempt from overtime?
A. Placing an employee on a salary does NOT exempt that employee from wage and hour laws, including keeping track of hours worked and paying overtime. A non-exempt employee who has been placed on a salary earns overtime the same as hourly wage earners.
In order to be exempt under California law, the employee must primarily be engaged in exempt duties that meet the exemption and earn a salary equivalent to no less than two times the minimum wage for full-time employment, currently $2773.33 per month in 2010.
Q. Have you had your employee handbook revised in the past year?
A. A lot of new laws and regulations have been passes in recent years that could have left your employee handbook out of date. This leaves you vulnerable to lawsuits and/or complaints by disgruntled employees, as well as giving unclear expectations to the employees in general.
Q. Have your employees been given training on harassment prevention?
A. The Supreme Court ruled "An employer must implement a mechanism to identify and prevent harassment in the workplace." You must have a written policy, a method of communication for the employees, and implementation of a prevention and objective grievance program.
In addition, an employer can be reeased from liability in the event of a court case, if they have this in place before there is a problem. The law states that "employees can be held personally liable for harassment if the employer has done their part," as mentioned above.
For employers with 50+ employees, AB1825 mandates a minimum two hours of interactive Harassment Prevention training for all your supervisors and managers every two years.
For all other businesses, it is considered a necessary risk management practice.
Q. Do you have job descriptions written that comply with the Americans with Disabilities Act and California OSHA? Do they comply with the current law regarding overtime, with the employees correctly classifies whether they are exempt or non-exempt?
A. These are the targets of the wage and hour board going forward, ensuring that all employers are implementing the law correctly. Penalties can be $88 per day, plus other penalties and pay back. One disgruntled employee filing a complaint can trigger a full audit.
Q. Do you have Independent Contractors work for you?
A. Are you aware of the IRS regulations (plus 5 other government agencies) that pertain to them? There is a 20-point checklist to make sure that they are classified correctly. (NOTE: Most employers do NOT have this right.) Just because someone works from home, works part-time, or works irregular hours, does not make them an Independent Contractor.
1099 income filed by an "independent contractor" on their personal income tax return may trigger an audit, as the IRS will be focusing on this independent contractor issue in the coming years. If an employee is audited and found not to fit the criteria, they may extend the audit to the employer. The employer is held responsible for paying the employees' portion of the tax as well as their own, plus penalties. Contractors are not held responsible since it is the employer's responsibility to make sure their employees are classified correctly.
For more information, please contact us for a free personal consultation:
