All posts by stu

Background screening, CDL, Clearinghouse, Commercial Motor Vehicle Driver, Drug and Alcohol, Drug Free Workplace, Employee Policies, FMCSA, New Hire, Safety

Does your Company have CDL Drivers? 10 Steps to get ready for Clearinghouse

If your company employs CDL Drivers that are regulated by the Department of Transportation, then get ready to meet the new compliance responsibilities under the FMCSA Clearinghouse that begins on January 6, 2020. The Clearinghouse is a secure online database that will give employers, FMCSA, State Driver Licensing Agencies, and State law enforcement personnel real-time information about CDL driver drug and alcohol program violations. Here is a short summary of your Clearinghouse action items so you can create a Clearinghouse Procedure.

  1. Starting on January 6, 2020, all newly hired CDL drivers must be screened in the FMCSA Clearinghouse consistent with the new regulations.  The Clearinghouse rules do not change the existing DOT drug and alcohol testing requirements – it just creates an online database for testing violations and return to work information.
  2. Register for Clearinghouse account at  https://clearinghouse.fmcsa.dot.gov/Register  If you have an FMCSA portal account, link it with your Clearinghouse account.
  3. Purchase a “query plan” from the website to pre-pay for queries.
  4. Incorporate new rules into company policy/handbook/forms.  Add a reference to the Clearinghouse process to your DOT drug testing policy and Employee Handbook.  Create a limited query consent form and hand receipt form (discussed below).
  5. Obtain a limited query consent form from existing CDL drivers.  A sample template is available on the FMCSA website.  The limited query consent form will remain in effect until revoked.  For full queries (pre-employment and if a limited query returns data on a driver) must be signed within the Clearinghouse portal account of the driver.  Your drivers must register for their own portal access in order to authorize full queries.  All new hires will need an account.
  6. Assist your existing drivers with setting up their own Clearinghouse accounts (printable guidance on the FMCSA website about the Clearinghouse).
  7. On and after January 6, 2020, perform a full query on all new CDL drivers being hired.  In addition, will continue to use the existing form to verify previous DOT regulated employment through January 2023.
  8. Annually, the company must complete a limited query for existing CDL drivers.  If a limited query returns information, HR will complete a full query within 24 hours, or remove the employee from all safety-sensitive functions, until a full query is completed.
  9. Your Company will begin adding alcohol and drug violations in the Clearinghouse if reported to you after January 6, 2020.  The following violations and Return to Work Duty events that must be reported in Clearinghouse are:
    1. positive alcohol test;
    2. refusal to submit;
    3. actual knowledge (see rules);
    4. negative Return to Work (RTD) test result;
    5. the date a driver successfully completes all follow-up tests as ordered by an SAP.
  10.  In the Clearinghouse system, Driver violations will be reported and tracked using their state CDL number, not their social security number.  There is specific information that must be reported for each violation event, including the supporting evidence related to the violation.  When a reportable event occurs, the report of violation must be reported in the Clearinghouse by the close of the 3rd business day following the date employer obtained knowledge.  After a violation is reported in the Clearinghouse, the employer shall also upload a certificate of service (such as hand receipt form)  showing that your company provided the employee with a copy of all the information reported to the Clearinghouse.
300 Log, Construction, Employee Handbook, Employee Injury, Insurance, OSHA, Risk Management, Safety, Workers Compensation

Save Money with a Certified Written Safety Program

I know, how can it be December already?  Every day you get wrapped up in the immediate demands of your business operation, and before you know it, we are in the last calendar month of 2019.  If you are looking for a worthwhile initiative that can be fully implemented before the new year, consider adopting a written WORKPLACE SAFETY PROGRAM that can result in a 2% workers’ compensation insurance premium credit.   Create a safer workplace for your employees AND save your company money?  This is as close to a mic drop as we get in the wonky world of HR and risk management.

Florida Statute 440.1025 outlines the specific requirements for a written safety program to qualify for a 2% reduction in work comp premiums.  Upon its implementation, you can download the Employer Certification form at http://www.myfloridacfo.com/Division/WC/pdf/safety_credit_app.pdf and submit to your insurance carrier.

Whatever your industry, ConsultStu can assist in putting together a compliant safety program.  If your business operation already requires task-or-equipment-specific safety training (whether for operating forklifts, handling chemicals, or deep-frying chicken tenders) then we’ll incorporate the existing materials into the Program.  Or, maybe your workforce is office-based and nobody has really given much thought to safety concerns or awareness.  We have standard, universal content applicable to all businesses, construction and general industry.

There are eight required components of a Florida approved Safety Program, but don’t be intimidated.  They dove-tail nicely together to cover all the aspects of your safe workplace:

A Written Safety Policy:

This does not have to be a literary masterpiece, but it will make official the commitment of owners and management to providing a safe work environment.  Best practices include identifying the roles and responsibilities of everyone involved: management, supervisors, employees, and any assigned safety coordinators or trainers.  Your Safety Policy can be enhanced with optional sections to address Active Shooter, Workplace Violence, Firearms, Safety Policy Enforcement, and many other custom features.

Safety Rules:

Everyone can benefit from safety rules, whether they pertain to the operation of “vehicle-mounted elevating and rotating aerial devices” (ANSI/SIA A92.2 – 2001) or simply the proper way to lift heavy packages, or how to prevent falls.   For every workplace, there must be rules for the prompt reporting of all injuries!

A Provision for Safety Inspections:

The OSHA recommendation for general workplace inspection is fairly vague, so you have flexibility here.

Preventative maintenance:

In the absence of highly specialized industry OSHA mandates, such as apply to grain-handling facilities or crane operators, we default to common sense injury prevention guidelines, which can be as simple as keeping work areas, hallways, stairwell, and exits free of clutter and clearly marked.   Any company vehicles, machinery, or personal protective equipment (PPE) should be regularly inspected to be in sound condition.

Safety Training

If you already have work activities that require safety training, document the scope, timing, and frequency of the training.  If your company has no safety training, you can implement an onboarding orientation to educate employees about hazard avoidance and reporting, exits, proper use of fire extinguishers, etc.  Did you know that if you aren’t providing training in the use of fire extinguishers, you should not establish a policy of employee use?

First Aid:

Employees can improve safety conditions for themselves and for each other when they know where first aid kits are located and what actions to take for wounds, cuts, or burns?  First aid can include non-minor injuries – assistance that can be rendered while waiting for 911 responders.

Accident Investigation:

Outline the post-incident procedures that will be followed if an accident does occur.  At a minimum, the procedure should result in a report that documents what happened, identify the root cause of the accident, and what corrective actions should be taken.

Necessary Recordkeeping:

Your commitment to safety includes the creation and proper retention of Accident Investigation Reports, OSHA logs, safety training, inspections, and acknowledgments.

Don’t procrastinate any longer, start today and you can begin saving as soon as your plan is certified by your insurance carrier.  Need help?  Give Consultstu a call today!

401(k), Compensation, Financial Well-being, Human Resources, IRS, Retirement

How much can Employees’ Contribute to a 401(k) plan in 2020?

More than ever, companies are taking action to improve the financial well-being of employees and providing them with tools and information to better prepare them for retirement and financial literacy. A credit union relationship and information sessions about investing and retirement planning are great solutions. Offering a company-sponsored 401k plan gives employees a way to saving for retirement.  Did you know that fifty-one percent of small business companies with 10 or more employees have researched offering a 401(k) plan, according to the Millennium Trust Small Business Retirement Survey?   Due to the rising economy, Fidelity announced that retirement savings rates among employees is rising.  The average 401(k) contribution rate is 8.8% (excluding employer match) – which is the highest percentage ever.  In addition, employers are contributing an average of 4.7% to employees as match, bringing the total contribution to 13.5%.

In early November, the IRS announced that employees in 401k plans will be able to contribute up to $19,500 in 2020, a $500 increase from the 2019 limits.   The IRS announced this and other changes in Notice 2019-59 (PDF), posted today on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.

The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.  The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.  However, the annual contribution limit for IRAs will remain unchanged at $6,000.

Interested in setting up a 401(k) plan for your small business?  Check out the Department of Labor’s Information booklet for establishing a 401(k) plan.  Download it today.

Construction, Drug and Alcohol, Drug Free Workplace, Employee Handbook, Federal Contractors, Hiring, HR Compliance, Risk Management, Safety, Workers Compensation

(Save thousands $$) How to Implement a Florida certified Drug Free Workplace Program

Every day Florida employers choose to establish certified drug-free workplace policies, to save money and be protected from workplace accidents that are caused by employees working under the influence of drugs and alcohol.  The benefits of becoming a carrier certified drug free workplace include: (1) employees are aware of the importance of safety in the workplace; (2) intoxicated workers that get hurt at work may forfeit eligibility for workers’ compensation benefits; (3) employees terminated for a positive drug/alcohol test may be disqualified for reemployment benefits; and (4) your company is eligible for a five (5) percent credit (annually) to your workers’ compensation premium!

Ten (10) steps to become a certified Florida drug-free workplace

  1. Create a written drug-free workplace policy that follows the requirements of the Florida Statute.
  2. Distribute an introductory letter to all current employees to announce the new policy and to provide the mandated 60-day notice for any drug testing requirements to apply to existing employees: (fitness for duty, reasonable suspicion are required – random is optional.)
  3. Select a qualified drug testing facility and Medical Review Officer. The collection and testing must be done by a Florida approved testing facility.
  4. Assemble a drug-free workplace binder that will be available to applicants and employees. It contains required community treatment resources and substance abuse information.  Create a list of employee assistance programs in the local area, with addresses and telephone numbers.
  5. Obtain a signed acknowledgment of the new drug-free workplace policy from existing employees and future applicants.
  6. Post a workplace Drug-Free Workplace poster for employees and applicants, and begin to include “drug-free workplace” or “DFWP” in all future job ads and postings. Also, add “drug-free workplace employer” to the Company’s Employment Application.
  7. Apply for the Insurance Premium discount using the Application for Drug-Free Workplace Premium Credit Program form.
  8. Perform (and document) training for supervisors on how to recognize employees that may be under the influence of drugs or alcohol. Create a reasonable suspicion form that can be used if needed.
  9. Establish new hire procedures that include pre-employment drug testing, the signing of an acknowledgment of the drug-free workplace policy and consent to be tested. If an applicant tests positive for illegal drugs, prepare a letter to revoke a job offer or terminate employment based on the positive drug test.
  10. Keep all drug testing results and related documents confidential. We recommend keeping all drug test documentation in an employee’s medical file (separate from the normal personnel file).

Start today!  Get your company certified by its workers’ compensation carrier so you can start receiving your 5% premium credit and supporting safety.  We have a turn-key process and all the documents & forms you need to get certified.  It does not matter who your workers’ compensation carrier is, we will assist you to get certified.

Employee Handbook, Employee Misconduct, Employee Policies, Fractional HR, HR Costs, HR Resources, Human Resources, Manager, Performance Review, Personnel File, Unemployment

Dealing with Your Problem Employee

Nobody likes disciplining employees.  Well, … perhaps that’s not true.  But to be honest, I’m not sure I’d want to employ too many supervisors who LOVE engaging in disciplinary actions.  But, like it or not, it’s critical to the success of your company that progressive disciplinary procedures are understood, followed, and applied in a timely, fair, and consistent manner.   If you value your employees who are meeting expectations — showing up on time, not wasting the day on gossip, following through on procedures, etc. —  don’t give them a reason to believe that a solid work ethic and good habits are optional at your workplace.  Ignoring disciplinary problems might even be a disservice to the offenders themselves … many of whom have simply conformed to a perceived threshold of tolerated behavior.  It does them little good to tolerate them out of a job.  As for the true reprobates, it does you no good to prolong a well-documented departure.

ConsultStu can help, with customized, affordable HR on demand.  If you don’t have a written progressive discipline policy, we can write one for you.  If you like, we can give a quick training presentation to your supervisors on constructive discipline, conflict resolution, and following company policy.  When disciplinary situations arise, here are some benefits of our services:

  • Adds a degree of third-party objectivity and provides some oversight to ensure that first line supervisors and lower management levels are being fair, clear, consistent, non-abusive and non-discriminatory.   We will also make sure managers are not “negotiating” behavioral changes in ways that could be mistaken for contractual promises.
  • Things will get written down that weren’t previously documented, and this can include what has already transpired.  Many times our clients need to be reminded that it’s okay to write down statements retroactively, which can serve as a starting point of evidence: describe previous episodes of problem behavior, verbal feedback or coaching, employee meetings, etc.  Include dates and details whenever possible, and ask the employee to acknowledge or give an explanation of any disagreement.
  • Assumptions will be avoided.  Never presume the employee is aware of what he/she did wrong or that it is unacceptable behavior.  Even if you have addressed conduct in your Employee Handbook, and gotten a signed acknowledgment… it is ALWAYS best to write a brief individualized description of any incidents or counseling, to be acknowledged by both employee and supervisor.
  • Proper and methodical documentation made easier with our templates.   If you task a busy supervisor to figure out how to document a problem behavior, don’t be surprised if one employee file contains a couple of cryptic sentences, and another employee’s file contains a five-page outpouring of pent-up frustration that sounds like a vendetta.
  • Be better prepared for Florida re-employment claims.  Many terminations do result in benefits being charged to the employer, but we make every effort to utilize the most effective language in policies, interpretation,  disciplinary documentation and unemployment claim responses,  in order to reduce chargeable claims.

Using fractional HR to assist with disciplinary documents, meetings, and procedures will level the employee experience and improve the company’s effectiveness.

Fractional HR, General HR Questions, HR Compliance, Human Resources, Leaving a PEO, Personnel File, Posters, Record Keeping, Recruiting, Unemployment

Fractional HR Services are Flexible, Scalable, and Affordable

The vast majority of small family businesses and new businesses start up without a dedicated HR person, much less an HR department.  And that makes perfect sense … to a point.

As the owner of a fledgling business, handling HR matters is probably not only manageable, but educational and even gratifying.  Your business is your baby, and there isn’t any part of it you don’t want to be touched by your own two hands.  If it weren’t for confidentiality obligations, you’d put the W-4’s of your first employees in a frame and hang it on the wall as a milestone!

As you build the framework of services, products, relationships, and culture that will define your company, you begin to feel that you’ve got a handle on being an employer of human beings.  Or maybe more accurately, you know how to handle a few employees (including family and friends).  As the employee situations come up, you swat them aside and make one-on-one deals to keep things working.  Because you know that the biggest statistical threat to a young small business is funding and cash flow, you favor money-saving DIY solutions for payroll, recruiting, hiring, record-keeping, etc.  And it seems to work.

Your business grows in size, and there are compliance responsibilities that must be addressed.  Here is a small example.  Depending on your business type, your 10 employee company may be required to record employee injury cases on the OSHA 300 log and post it annually for employees to see.  Additionally, when you hit twenty employees, your industry code (NAICS) may mandate that your injury data be reported to OSHA on its new website.  Do you know your federal NAICS code?  There are dozens of HR and safety-related matters that can result in fines, penalties and lawsuits for your business.  Did you know that HR and safety can be handled without having to hire full-time employee or hiring a professional employer organization?

Typical Consultstu fractional HR services include:

  • Initial HR and safety assessment to identify your federal and state compliance requirements.
  • Feedback on new hire forms and written employment policies.
  • Update Employee Handbook.
  • Developing drug free workplace policies.
  • Personnel file review.
  • I9 audits.
  • Recommend (and implement) HR practices to minimize employment risk and employment costs.
  • Clients alerts when laws change and new rules are created.
  • Monitor unemployment claims.
  • Create and track OSHA 300 logs.
  • Set up streamlined HR processes.
  • Reviewing resumes and candidates.
  • Send new, updated state and federal employment posters, as needed.
  • Investigate employee complaints and grievances.
  • Employment training (harassment and EEO).
  • Discuss HR strategy and needed solutions to meet your business needs.
  • Safety manuals.
  • FMLA procedures and employee packets.
  • Exit interviews.

Fractional HR is being able to outsource your minimal HR needs to HR experts, without hiring any bodies.   Unlike an all-or-nothing PEO, we conform our services to YOU.  Consultstu can provide as much or as little HR guidance as you actually need, right now.  The best value is becoming a monthly retainer client, to receive a pre-established customized level of ongoing support.  This includes us always being available to you for HR questions, and client alerts to keep you informed of new regulatory forms and rules.  If an unexpected situation arises — for example, you receive a harassment complaint that needs to be properly investigated — we can easily ramp up “HR on Demand” to assist you, on an hourly or special project basis.  When you let us handle your HR headaches, you can relieve stress, free up time, connect with customers and get back to loving your business again.

Does my business need Fractional HR?

Business Expenses, Compensation, Department of Labor, Employee Policies, Employee Rights, Executive Order, Exempt Employee, Fair Labor Standards Act, HR Compliance, HR Resources, Human Resources, Overtime, Payroll, Salaried employees, Wage and Hour

New Overtime Rule: Exempt Threshold To Increase from $23,660 to $35,568 January 1, 2020

WHAT HAPPENED?

This Tuesday (September 24, 2019), the Department of Labor announced the following changes to the FLSA’s white-collar overtime exemptions, to become effective January 1, 2020:

  • The minimum salary threshold for exempt status will be $684 per week, annualized to $35,568 per year.
  • The highly compensated employee exemption’s total annual compensation requirement will be set at $107,432 per year (to include the new threshold as minimum weekly base salary).
  • No change has been made to the various other exemptions (for example, outside sales) that do not specifically include a salary requirement even if the employee happens to earn a salary.
  • There will be no “automatic” threshold updates, such as cost-of-living increases.

If you recall, a much higher increase had been set to become effective back in December 1, 2016, but was scrapped by federal and state court actions. While there is no way to guarantee that legal challenges might not delay or alter this latest ruling, we strongly advise our clients to plan for a January 1st implementation.  The new threshold formula and guidelines are less flawed are much less contentious, with the majority of the concerns driving the 2016 lawsuits resolved.  Overtime Rule 2.0 looks like a solid go.

WHAT SHOULD I DO NOW?

First, evaluate your compensation structure to see if anyone who is currently exempt will fail to qualify under the new threshold.  Take a moment to consider whether they might be subject to alternative FLSA exemptions.  If not, develop new FLSA compliant pay plans (either applying overtime pay or increasing exempt salaries).  Determine the timing, administrative tasks, and communications necessary to meet the January 1st deadline.  Then stay tuned to ConsultStu for the updates you need to keep your company on track.  NOTE: If you are a ConsultStu retainer client, Stu will be covering this topic at your next monthly HR support call, and we will assist you with any needed preparation!

HR Compliance, Human Resources, I9 Form, Immigration

We Conduct Publix Independent Third Party Immigration Reviews

Companies throughout Florida continue to contact Consultstu LLC to conduct a third-party immigration audit to meet the mandates of being a supplier of equipment or construction services to Publix Super Markets, Inc.  Publix expects all of its Suppliers to comply with all applicable federal, state and local laws and regulations, including the rules under the Immigration Reform and Control Act of 1986 (the law that created the mandate for obtaining an I-9 Form for all new hires).  Use our well-refined process to complete your needed Annual Immigration Law Certification and stay in compliance with your Publix Supplier Agreement.

What is involved in an independent third party immigration audit?  There are four requirements:  (1) a qualified third-party auditor must have documented experience and knowledge of immigration policy, including how to properly complete the I9 Form and the E-Verify checks; (2) review of a company’s immigration policies (including employment posters, handbook policies, and the process to view work authorization documents; (3) reviewing all, or a statistically significant number (for large companies), I9 forms and receiving feedback about mistakes and errors; and (4) check retention practices associated with I9 forms for former employees (does it meet federal requirements).

How long does it take? Once we have a signed engagement, our independent third-party audit can be completed in five to seven business days. When we start, we provide you with a specific list of documents to have available for our review.  Once complete, you receive our signed Immigration Law Certification form.

Are there penalties for incomplete or missing I9 Forms?  Obtaining an I9 Form is required by federal law.  Another benefit of a third party immigration audit is to identify any missing or incomplete I9 forms, or improper company policies. Errors can be corrected and that can potentially save your company thousands of dollars. Immigration and Customs Enforcement (ICE) monetary penalties for “knowingly hire and continuing to employ” violations range from $375 to $20,130 per violation. Failure to have a properly completed I9 form ranges from $110 to $2,292 per violation. If your company is selected for an ICE I9 form review, you will receive a Notice of Inspection letter and have three (3) days to present your I9 Forms to the designated ICE Auditor.

Call us today to discuss our third party immigration review and audit services.

Company Culture, HR Resources, Job Description, Performance Improvement Plan, SMART goals

How to Write a Performance Improvement Plan (PIP)

Hiring and training new employees (if you can find them) is expensive and time-consuming. Due to this dilemma, we are often contacted by Florida small business owners to discuss ways to positively address employee performance problems, in hopes of saving a productive employee.  So, before firing an employee, what can be done to save the company’s investment in their job skills? Good employees sometimes lose focus or struggle to deliver sustained performance results. In those cases, an employer will need to engage in an actionable conversation that can reverse a performance slide and reset job expectations – before termination. We regularly recommend that small business clients use two fundamental HR tools to implement a performance culture (and to drive business results): (1) regular performance dialogues (monthly, quarterly or annually) and (2) performance improvement plans. A performance improvement plan (PIP) is best used in conjunction with regular performance dialogues, but it can also be used as a stand-alone action to fix deficiencies in employee performance.

A PIP is appropriate when the employer is committed to helping an employee correct their performance problems and is willing to give sufficient time to see the improvement. If an employer has already decided that the employee will be terminated for poor performance, or the problems are related to workplace misconduct, then a PIP is not the best approach. The manager also needs to be committed to giving a fair chance to the employee and be accessible to give needed feedback and encouragement. If the manager only wants to create termination documentation, use corrective action and not a PIP. The use of PIPs also creates a company culture of employee focus, fairness, and transparency. PIPs work best when there are objective measures of performance, so the agreement can contain specific numbers, ratings or results. A PIP can also be used to address problems with work behaviors and critical competencies. For instance, if problem-solving, initiative or interpersonal skills are not good enough, the PIP can address these subjects.

A PIP will be put in writing, shared with the employee and signed by everyone. It is a formal structured approach to bridging performance gaps. When possible, a PIP should make reference to an existing written position description that identifies duties, competencies, and deliverables. Here are some other tips for putting together your written PIP together (either memo or letter format):

  • Include the reason for the PIP – be specific about deficiencies – give example(s)
  • State that current performance coaching has been unsuccessful
  • Have a positive and confident focus – be appreciative of contributions
  • Add PIP plan details – organize around general areas and then give specific standards that will be used to measure and determine success.  For example: improve communication with department manager – provide daily feedback to manager about “x type” situations.
  • Use deadlines and time frames such as 30 or 60 days.
  • Restate that improvement must be sustained.
  • Employee and manager sign the agreement

After meeting with the employee to explain the PIP, and getting it signed, the manager will calendar the follow-up events and then monitor the plan and performance progress. If there is training or skill-building elements in the plan, the session needs to be assigned and completed.  With hard work and discipline by both parties, hopefully, you can save the employee.  If your company wants a sample PIP template, give us a call.

Need on-going HR support?
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