All posts by stu

Compliance, EEO-1 Form, Human Resources

2024 EEO-1 Data Collection Opened on May 20, 2025 (ends June 24)

The 2024 EEO-1 Component 1 data collection opened on Tuesday, May 20, 2025. The deadline to file the 2024 EEO-1 Component 1 report is Tuesday, June 24, 2025. Read more. If an employer misses the June 24th deadline, no EEO-1 Component 1 report will be accepted, and the employer will be out of compliance with their mandatory 2024 EEO-1 Component 1 filing obligations.

The Instruction Booklet may be accessed on the EEOC’s dedicated EEO-1 Component 1 website at www.eeocdata.org/eeo1.

If you are filing for the first time, you will need to classify your employees into one of the designated classifications. The EEOC uses 10 major job categories for purposes of EEO-1 Component 1 reporting. Each job category includes a brief description of the skills and training required for occupations in that category and examples of the job titles that fit each category. Read how to classify your employees here.

For many other unique questions about filing your report, such as: what about a merger or acquisition, how are teleworking employees reported, how do you handle employees working at client sites and more – read the EEO-1 FACT SHEETS.

Compensation, Exempt Employee, Fair Labor Standards Act, FMLA, HR Compliance, Payroll

Can a Salaried Employee’s Pay be Reduced During an FMLA Absence?

The Family and Medical Leave Act (FMLA) provides eligible employees up to 12 workweeks of unpaid leave a year, and requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave. An employee who is exempt from minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) as a salaried executive, administrative, professional, or computer employee does not lose the FLSA exemption by receiving unpaid FMLA time. So, how do employers comply with the salary rules under the FLSA and the time off rules under the FMLA?

The employer may make deductions from the employee’s salary for any hours taken as intermittent or reduced schedule FMLA leave within a workweek without affecting the exempt status of the employee. This special exception to the salary basis requirements of the FLSA applies only to employees of covered employers who are eligible for FMLA leave. Hourly deductions from salary are permissible as long as the employer is covered by FMLA (50 or more employees) or where the employee has not worked long enough to be eligible for FMLA leave. The employer may pay a proportionate part of the full salary for the time actually worked. For example, if an exempt employee who normally works 40 hours per week uses four hours of unpaid leave under the FMLA, the employer may deduct 10 percent of the exempt employee’s normal salary for that week.

Example of pro-rated salary: An exempt employee has an annual salary of $50,000 per year and is expected to work 40 hours per week. If the employee only works three days per week (and 2 days off for intermittent FMLA leave). The prorated salary for the week is $50,000/2,080 hours = $24.04 per hour x 24 hours worked for the week = $576.92 in pro-rated salary. The normal weekly salary would be $961.53 (50,000/52 weeks).

The fact that an employer provides FMLA leave, whether paid or unpaid, and maintains records required by this part regarding FMLA leave, will not be relevant to the determination whether an employee is exempt within the meaning of 29 CFR part 541.

HR Compliance, I9 Form, Immigration, USCIS

New I9 Form in 2025; Current Version Still Valid

The U.S. Citizenship and Immigration Services (USCIS) has made minor changes to Form I-9, Employment Eligibility Verification. The new revised Form I-9 with an edition date 01/20/25 and an expiration date 05/31/2027 is now available for download, while multiple previous editions remain valid until their respective expiration dates. Specifically, the Form I-9 (08/01/23 edition) is valid until 05/31/2027.

The minor changes are:

  • Renamed the fourth checkbox in Section 1 to “An alien authorized to work.” 
  • Revised the descriptions of two List B documents in the Lists of Acceptable Documents.
  • Added appropriate statutory language and a revised DHS Privacy Notice.

E-Verify will also have some minor updates, including: (1) the selection “A noncitizen authorized to work” will be updated to “An alien authorized to work.”; and (2) E-Verify cases will display “An alien authorized to work,” while employees and employers may continue to see “A noncitizen authorized to work” on Form I-9. Download the new I9 form here.

General HR Questions, HR Compliance, I9 Form, Immigration, USCIS

Venezuela TPS Status: Handling Expiring Employment Authorization Cards

It has not been easy for employers to make sense of the fast-moving immigration regulation changes and court cases. One topic creating lots of HR questions is Venezuelans who were granted Temporary Protected Status (TPS) under the Biden Administration. The Secretary of Homeland Security is authorized to designate a foreign country for TPS due to temporary conditions such as ongoing armed conflict, or other extraordinary and temporary conditions that prevent nationals from safely returning to their country. Upon taking office, the Trump Administration’s Secretary of Homeland Security canceled the TPS extension and reinstated the end of TPS for Venezuelans. Biden’s DHS Secretary issued extensions to TPS on January 17, 2025. After a court challenge, a federal judge issued a nationwide order postponing the cancellation of the latest 18-month extension of the TPS status.

There are 2 groups of Venezuelan TPS beneficiaries. Venezuela was initially designated for TPS in 2021, and it was extended and stayed in place. In 2023, there was a re-designation of Venezuela for TPS. Both designations (2021 and 2023) were extended for 18 months by notices published in the Federal Register.

Companies that employ Venezuelan employees working with temporary work authorization cards (EADs) need to know what is the current status of their work authorization. Here are some tips for employers:

  • Originally, TPS was to expire for Venezuelan beneficiaries under the 2021 designation on September 10, 2025, and for new Venezuelan applicants under the 2023 designation on April 2, 2025.
  • The court order reinstated the 2023 TPS designation and the 18-month extensions for both 2021 and 2023. TPS status now remains through October 2, 2026. (even though the EAD cards expired).
  • Employment Authorization Cards (EADs) issued under the 2021 and 2023 TPS designations of Venezuelans have various expiration dates and will remain valid through April 2, 2026. (automatic extension – no new card).
  • To complete or update Form I-9, for TPS Venezuela beneficiaries who present an EAD with a Category Code of A12 or C19 and a Card Expires date of Sept. 10, 2025; April 2, 2025; March 10, 2024; or Sept. 9, 2022, enter April 2, 2026, pending relief from the court, on Form I-9 as the new expiration date of the automatically extended EAD. You must re-verify these employees before they start work on April 3, 2026.
  • There is also a 540 day automatic extension for a Venezuelan TPS holder if they present an EAD card with category A12 or C19; and a Form I-797 Receipt Notice showing a pending I-765 application for a category code A12 or C19 renewal with a “received date” between January 17 and September 10, 2025.

DHS intends to end Venezuela TPS as soon as it obtains relief from the court order. Updates regarding TPS status for Venezuela beneciaries will be posted on the USCIS site.

Bonuses, Employee Referral, Hiring, Human Resources, Recruiting

A Simple Employee Referral Program to Supercharge Hiring

Discover how an employee referral program can boost recruitment, foster workplace collaboration, and empower your team to play an active role in shaping your company’s success.

If you have never used one, try the following program and see how your employees respond.

Employee Referral Program: At [Company Name], we value the power of employee referrals to build a strong and talented team. To reward employees who help us find exceptional candidates, we are pleased to offer an Employee Referral Program.

Eligibility: All active employees who have successfully completed 90 days are eligible to participate, except those involved in the hiring decision for the referred position and those whose jobs involve recruiting employees (e.g., HR or managers overseeing the role)

Referral Guidelines: Employees must refer candidates by submitting their contact information and resume through the company’s referral system, ATS system or to [designated HR contact]. Referrals must be made before the candidate applies or is contacted by the recruitment team, or listed on the applicant’s application.

Incentive: If the referred candidate is hired and completes 90 days of continuous employment, the referring employee will receive a referral bonus of [insert amount, for instance $500] paid in the next payroll cycle after the 90-day period is completed.

Conditions and Limitations: The referral bonus is subject to all applicable taxes. Referred candidates must meet the qualifications of the position and complete the standard hiring process. There is no limit to the number of referrals an employee can make, provided they meet the program requirements. Rehires and temporary or contract employees are not eligible as referred candidates. The company reserves the right to modify or discontinue the referral program at any time without prior notice.

We encourage all employees to take part in shaping our workforce by referring talented individuals who share our values and vision. If you have any questions, please contact [HR contact/department].

In our experience with clients, an employee referral program can significantly enhance a company’s hiring process by attracting high-quality candidates, improving retention rates, and fostering a more engaged workforce through trusted personal connections. What are you waiting for?

DEI, Discrimination, EEOC, Employee Policies, HR Compliance, Title VII, Training

Guidance on Unlawful DEI -Related Discrimination Released by EEOC and DOJ

In March 2025, two technical guidance documents were released by the EEOC and DOJ that emphasize that Diversity, Equity, and Inclusion (DEI) initiatives must comply with Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, sex, or other protected characteristics. The DOJ and EEOC jointly issued a document, titled “What To Do If You Experience Discrimination Related to DEI at Work,” The second document, from the EEOC, “What You Should Know About DEI-Related Discrimination at Work,” [provides employers with more details about compliance, and uses a question-and-answer format. 

Key points for employers include:

  • Equal Application of Title VII: The guidance clarifies that Title VII protects all workers, regardless of whether they belong to a minority or majority group. The EEOC stresses that there is no such thing as “reverse discrimination”; any form of discrimination is unlawful.
  • Scrutiny of DEI Practices: DEI initiatives, such as hiring practices, training programs, or employee resource groups, may violate Title VII if they involve employment actions motivated by protected characteristics. For example, separating employees into groups based on race or sex during DEI training is prohibited.
  • Prohibited Actions: Employers cannot use quotas, limit access to opportunities like mentoring or leadership programs, or restrict membership in workplace groups based on protected traits. Such actions could lead to claims of discrimination.
  • Employee Rights: Employees who oppose DEI practices they believe to be discriminatory are protected from retaliation, provided their opposition is reasonable and fact-based.
  • Employer Responsibilities: Employers are encouraged to review their DEI policies to ensure they align with Title VII standards and do not inadvertently create disparate treatment or exclusion.

This new EEOC and DOJ guidance underscores the importance of balancing diversity and inclusion goals with compliance to avoid legal risks. Some of the potential employer policies and practices that could violate Title VII of the Civil Rights Act, if improperly implemented under the guise of DEI, include:

  1. Quotas or Balancing Workforce Composition: Policies that aim to achieve specific demographic quotas or balance workforce composition based on race, sex, or other protected characteristics are prohibited. Employment decisions must be merit-based and not influenced by protected traits.
  2. Affinity Groups and Employee Resource Groups (ERGs): Limiting membership in workplace groups, such as affinity groups or ERGs, to specific protected groups (e.g., women-only or race-specific initiatives) can lead to discrimination claims. These groups must be inclusive and open to all employees,
  3. Segregated DEI Training: Separating employees into groups based on protected characteristics during DEI training sessions—even if the content is identical—can be considered discriminatory.
  4. Exclusion from Opportunities: Restricting access to mentorship programs, leadership development, or networking events based on protected traits is unlawful. All employees must have equal access to these opportunities.
  5. Hostile Work Environment: DEI-related training or initiatives that create a hostile work environment, such as unwelcome remarks or conduct based on protected traits, may violate Title VII.

Employers should carefully review any DEI-related policies and practices to ensure compliance with Title VII mandates and the new EEOC guidance, to avoid practices that could unintentionally result in discrimination.

Compliance, Florida rules, General HR Questions, HR Compliance, Personnel File, Record Keeping

How Long Should Employers Keep Former Employee Personnel Files?

Maintaining accurate and secure employee records is a crucial responsibility for employers, but the question of how long to keep former employee personnel files can be tricky. Employers need to strike a balance between regulatory compliance, company policy and operational needs. The amount of employee turnover can also impact the decision. Here’s a quick guide to help employers navigate this retention period.

Follow Federal and State Laws
Different regulations govern the retention of personnel records. For example, some of the federal and Florida law requirements are:

  • The Equal Employment Opportunity Commission (EEOC) requires employers to retain personnel records for at least one year after an employee’s termination. There is also a one (1) year requirement for records associated with providing reasonable accommodations to a disabled employee.
  • Under the Age Discrimination in Employment Act (ADEA), documents related to wage and hours must be kept for three years, while personnel records tied to discrimination claims must be kept for one year.
  • The Occupational Safety and Health Administration (OSHA) requires employers to maintain records of workplace injuries and illnesses for five years.
  • Payroll records, time cards, amounts and pay dates (and pay period covered), pay rates, work week description, fringe benefits, overtime, job classifications must be kept for three (3) years.
  • I9 forms and supporting documentation must be kept for three (3) years after date of hire or one year after date of termination, whichever is later.
  • Drug tests for DOT positions must be maintained for one year from the test date and up to 5 years for the records related to DOT testing and regulatory compliance.
  • Under Florida law, unemployment insurance related documents must be maintained for five years, workers’ compensation policy compliance records for the current year, plus at least the two preceding years (and documents associated with claims for the length the claim is open, and capable of being re-opened).

Consider the Statute of Limitations
Employers should retain files long enough to cover potential legal claims, based on the specific law. For example, the statute of limitations for many discrimination or contract claims may range from two to five years, depending on the jurisdiction. Retaining personnel files beyond this period can protect employers from legal risks.

Preserve Records for Benefits or Pension Claims
Records related to employee benefits, such as retirement plans and group health benefits, may need to be retained much longer—sometimes indefinitely—to support former employees’ claims or compliance with laws like ERISA (Employee Retirement Income Security Act). Check with your third-party administrators, vendors or benefits advisor for more details.

Establish a Company Policy for Employee File Destruction
Once the required retention period has passed, employers should securely destroy personnel files to protect sensitive information. Shredding paper records and permanently deleting electronic files ensures confidentiality. Having a well-documented destruction policy helps maintain compliance and reduces the risk of unauthorized data breaches.

Conclusion: Carefully adhering to the various legal guidelines, employers can protect their company while respecting former employees’ privacy. Often, employers will use a 5 to 7-year rule for destroying terminated employee files, as this typically covers state and federal statutes of limitations; although shorter retention periods may suffice for some records such as I-9 forms. If you are unsure about specific retention requirements, consult with legal counsel or a knowledgeable HR professional.

Background screening, Hiring, Interviews, Remote employees, Social Media

How to Verify Employment History If You Can’t Contact Past Employers

Verifying employment history is an important step to ensure that your new hire has the skills and experience to handle the open position. It is strongly recommended that you contact past employers to confirm past dates of employment and titles. In some cases it is difficult to contact past employers to verify employment, or they have outsourced this service to a third-party paid service, like Work Number. This can be a fast and effective method. But, what can you do to verify past employment if you cannot contact their past employer (out of business, won’t respond to your calls, or the candidate asks you not to contact their current employer)? Here are some tactics to verify employment without calling past employers.

  • Complete a background check. These checks can confirm previous employment details such as job titles, dates of employment, and reasons for leaving. Background check services often access databases that compile employment records from various sources, ensuring the information is accurate and up-to-date. This approach not only respects the candidate’s privacy but also provides a reliable verification method. (example, Work Number).
  • Request that the candidate provide alternative documentation to verify their employment history. Documents such as pay stubs, W-2 forms, old offer letter, etc… You should also explain why you need the pay stub and how you will use it.
  • Employers can ask candidates to provide professional references from previous jobs. These references can include former colleagues, supervisors, or clients who can vouch for the candidate’s work experience and performance. By speaking with these references, employers can gain insights into the candidate’s job responsibilities, skills, and work ethic without needing to contact the current or past employers directly.
  • Social media review: Employers can review a candidate’s profile on professional networking sites like LinkedIn. The profile often includes detailed employment histories, endorsements, and recommendations from colleagues and supervisors. This information can help verify the candidate’s work history. But be careful, these sites can also be faked.
  • Conduct skill testing (of all candidates) to verify employment history without contacting a current employer. This can measure the candidate’s abilities, knowledge, and aptitude for the role. Skills tests can be tailored to the specific requirements of the job, such as technical, behavioral, or situational tests. A typical excel task, or ask for an explanation about a job skill needed for the role.
  • Use behavioral interview questions that allow the candidate to explain about their past actions, achievements, successes and mistakes. You can then compare their answers with their resume and information that you might have received from their references.

By utilizing these methods, employers can effectively verify a candidate’s employment history while respecting their privacy and maintaining the confidentiality of their job search. This approach not only ensures a thorough vetting process but also fosters a positive and trusting relationship with potential new hires.

Company Culture, Employee Recognition, Engagement, HR templates, Human Resources, Promotion

How to Write a Promotion Letter and Promotion Letter template

Does your business have a solid performer that you want to promote to a new role? Should you create a promotion letter? We think promotion letters play a crucial role in the workplace for several reasons:

  1. Formal Recognition: It serves as an official acknowledgment of an employee’s hard work, dedication, and achievements. This formal recognition can boost morale and motivation.
  2. Clear Communication: Promotion letters can clearly outline the new role, responsibilities, and any changes in compensation or benefits. This helps avoid misunderstandings and sets clear expectations.
  3. Documentation: It creates a written record of the promotion, which can be important for HR records and future evaluations.
  4. Motivation and Retention: Receiving a promotion letter may enhance an employee’s sense of job security and loyalty to the company, which can improve retention rates.
  5. Professional Development: The letter highlights your company’s commitment to employee career growth and development.

Here’s a letter informing an employee about their promotion based on solid performance and career progression:

[Employee’s Name]
[Employee’s Position]
[Company Address]
[City, State, Zip Code]

Dear [Employee’s Name],

I am pleased to inform you that, after careful consideration of your consistent and reliable performance, you have been promoted to the position of [New Job Title]. This promotion reflects the solid work you have done and your continued professional growth within [Company Name].

Throughout your time with us, you have demonstrated a steady commitment to delivering quality work, a keen understanding of our industry, and the ability to collaborate effectively with your colleagues. Your reliable performance has helped support our goals in the life sciences sector, and we believe this next step in your career is well-earned.

Your new role as [New Job Title] will officially begin on [Start Date]. In this position, you will be taking on additional responsibilities, and we are confident that you will continue to develop in your role and contribute to the ongoing success of the company. We will arrange a meeting to go over the details of your new responsibilities, as well as any changes to your compensation and expectations.

We appreciate your dedication to [Company Name] and are excited to see you grow in this new role. Please let us know if you have any questions or if there is anything we can do to support you during this transition.

Congratulations once again on this well-deserved promotion.

Sincerely,
[Your Name]

401(k), Affordable Care Act, Business Expenses, Payroll, W2, W4, Wage and Hour

HR and Payroll updates for January 2025

It’s almost 2025, so now is the time to review and update your company’s HR and payroll practices and documents for the new year. With 2024 ending, here is our 10 point list of Human Resources and payroll actions and updates for January 2025. Happy New Year!

  1. Update your new hire packet with 2025 documents. Replace your W4 with the 2025 version. Optional – send the new W4 to existing employees in January to see if they would like to make changes for 2025.
  2. Check to ensure you are using the latest Form I-9 (expiration date for 5/31/2027).  Use E-verify to take advantage of the remote document review process.  Florida employers with 25 or more employees are required to use E-verify.
  3. Go through terminated employee I9s and purge old I9 forms. The I9 retention rule is a minimum of 3 years or 1 year after termination, whichever is longer.
  4. If group insurance plans renew on January 1, update the DOL Healthcare Exchange form (mandated by ACA) with current group health insurance renewal information (contribution cost and eligibility) and add to page 2.
  5. Check the Florida and federal workplace posters to ensure the latest versions are posted. See the Florida Department of Economic Opportunity webpage for free versions.  Florida updates its minimum wage poster annually in September.
  6. Review, update and post the updated observed holiday schedule for 2025 (here are the 2025 federal holidays) and add to the Employee Handbook. It’s also a Leap year!
  7. Review recruiting and retention strategies for 2025 to stay current with the labor market conditions. Check the trending labor rates for key positions and obtain current compensation data to validate existing salary bands.  Florida DEO publishes annual wage and salary data.
  8. For 2025, 401k plan contribution limits will increase in 2025 to $23,500 by the Internal Revenue Service. The catch-up contribution limit for employees aged 50 and over who participate in 401(k) is t $7,500. Read more about it.
  9. Florida minimum wage rates change later in 2025 – Florida MW to increase to $14.00 per hour on September 30, 2025).  Currently, the federal DOL’s plan to increase the minimum salary for exempt employees is held up in court, so no changes are expected in 2025.
  10. Update your travel policy to adjust to the new IRS mileage rate for 2025. If your company provides mileage reimbursement, review the new rates effective January 1st, 2025. The rate increases to 70 cents per mile (up 3 cents per mile).

Here is one last recommendation. To prepare accurate W2s and 1099 forms at the end of January, obtain employee consent to electronic delivery of their W2 forms. Per IRS regulations, employers need affirmative consent from an employee in order to deliver Forms W2 electronically.

Don’t forget to send your 2025 Florida Reemployment Tax Rate Notice to your payroll company (or update your own payroll profile if you do it yourself) so your newly calculated 2025 payroll tax rate is applied to upcoming payrolls.

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