All posts by stu

Bonuses, Compensation, Department of Labor, Fair Labor Standards Act, HR Compliance, Overtime, Payroll, Salaried employees, Wage and Hour

New Overtime Law Took Effect January 1, 2020

In case you missed it over the holidays, the newest Department of Labor regulation went into effect on January 1, 2020.  Why does it matter?  If your company pays employees on a salary basis (i.e. employee is exempt from minimum wage and overtime as an executive, administrative, or professional employee) then the minimum salary threshold necessary to meet the new standards increased from $455 per week to $684 per week (equivalent to an annual salary of $35,568 per year).  The new rule also allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level.  What action is necessary? Review employee pay rates to make sure all salaried employees are earning at least the new minimum.  Either bump an employee’s salary to meet the required salary level; or change the employee to an hourly rate and pay overtime.

What else is important?  The new rule also raises the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year.  The salary rule also allows employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices.

Where to go for more information? The Wage and Hour Divison webpage has more information about the final rule and the existing regulations that define executive, professional and administrative employees.

1095C form, 300 Log, Child labor, Department of Labor, Employment Poster, Federal Contractors, Florida rules, FMLA, Form W-4, Fractional HR, General HR Questions, Goal Setting, HR Compliance, HR Resources, Human Resources, I9 Form, Minimum Wage, New Hire, Posters, Risk Management, USCIS, W4, Wage and Hour

HR Fitness for 2020 – Needed HR Actions for the New Year

NEW YEAR?  BRING IT!   Put some of that post-holiday energy into your HR process … you can make it easier to get out of the office in time to hit the gym!  Here is a 7 step checklist to make sure HR is prepared for an efficient, organized, successful new year:

Step One: Review your Applicant New Hire packet.

  • Replace your W4 with the newest version for 2020.  Although voluntary, check to see if existing employees want to update their federal tax withholding and send them the newest 2020 W4.
  • Don’t ditch your I-9 forms – they are still valid!  That July 2017 revision is still authorized for use (despite the Aug 2019 expiration date), until a new form is released from USCIS.  Stay tuned … ConsultStu will send a client alert as soon as a replacement form drops.
  • Ensure your DOL Marketplace Exchange form (mandated by ACA) contains current group health insurance renewal information (contribution cost and eligibility) on page 2 of the form.
  • Contact all third-party screening vendors (criminal background, MVR and drug testing) to verify that you are using the latest version of their disclosure and consent forms.

Step Two:  Update workplace postings.

  • Print and post the new 2020 Florida Minimum Wage poster.
  • The Florida Unemployment poster was revised in July, make sure you have the most current Florida Unemployment poster in place for 2020.
  • Check that your Workers’ Compensation poster was updated at last renewal.
  • If you want to compile a full new set of mandated workplace posters, click here.
  • Determine and post your 2020 holiday schedule (Christmas and New Year Day will be falling on Friday)

Step Three:  Prepare to distribute W2 forms and ensure forms contain information about the Earned Income Tax Credit (most do, but good to check).  By January 31, 2020, employees need to be provided EITC information from the mandatory IRS Notice 797.  An alternate option is to post the notice on employee bulletin board or add payroll stuffers.  Click here to download alternate distribution materials.

Step Four:  Complete your OSHA 300 logs for 2019 employee injuries and illnesses.  Verify all reported cases are added. Drop any entries that do not meet the criteria for recordable cases.  Prepare the OSHA 300A summary for posting on February 1 through April 30.

Step Five: Review and request new certificates of insurance from subcontractors for 2020 policy renewals. If you have construction subcontractors, register for the Florida Construction Policy tracker database and add new subcontractors to your tracking list.

Step Six: Review company demographics for any new compliance implications:

  • Look back at your 2018 employee count. Determine if the company had over 50 employees according to the Affordable Care Act (ACA). If so, your company was covered by “pay or play” rules in 2019 and you now need to prepare IRS form 1095-C for delivery to employees by January 31, 2020 (electronic filing to IRS due March 31st … read more).
  • Count your employees for 2019.  If you averaged 50 for the year (using ACA rules), your company must offer affordable, minimum value health insurance coverage in 2020 (then perform the above reporting in 2021).
  • EEO-1 reporting criteria: not required if you can identify any pay period (called the “employer snapshot”) from October through December 2019, in which the company had FEWER than 100 employees.  If every 4th quarter pay period contains 100 or more paid employees, you will need to register and report EEO-1 survey data by March 31, 2020.
  • Does your company work as a contractor or subcontractor on federal contracts? Davis-Bacon requirements will apply.
  • Does your company hire minors?  Make sure a Florida Child Labor poster is displayed.

Step Seven:   Ensure that your company’s internal communication channels are effective by requesting employee updates to address, mobile phone, email, and emergency contacts.

For assistance with any of these HR actions, please contact us here at ConsultStu – we can help you meet your HR goals for 2020!

Background screening, E-Verify, Federal Contractors, HR Compliance, Human Resources, I9 Form, Immigration

Does Florida require E-Verify?

No, not yet.  But Florida Governor Ron DeSantis is pushing the 2020 Florida legislature to pass legislation to require all Florida employers to use the federal E-Verify system.  If your company has a qualifying contract with the State of Florida, all new hires working on the contract must be screened using E-Verify.  Read Governor Scott’s Executive Order 11-02 from 2011.

What is E-Verify?  E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. E-Verify employers verify the identity and employment eligibility of newly hired employees by electronically matching the information provided by employees on the Form I-9, Employment Eligibility Verification, against records available to the Social Security Administration (SSA) and the Department of Homeland Security (DHS). Florida would become the ninth state to mandate E-verify for new hires, joining Arizona, Alabama, Mississippi, South Carolina, North Carolina (25+ employees), Georgia (10+ employees), Utah (15+ employees), and Tennessee.

How many total employers use E-verify? In 2008, and every year after that, the share of employers using E-Verify has grown approximately 1 percentage point. In 2018, DHS had enrolled 821,771 employers in E-Verify—amounting to 13.5 percent of all employers in the United States (Figure 1).  So, 86.5 percent of U.S. employers still do not use E-Verify.  From 2005 to 2018, the number of annual E-Verify queries increased from less than a million to more than 36 million.  Read the statistics.

How many employees are rejected by E-Verify annually? From 2007 to 2018, the number of rejected new employees doubled from 173,409 to 351,836, but the number of final non-confirmations (FNCs) as a share of total queries dropped from 5.3 percent of queries to 1 percent (Figure 4). For context, it is estimated that unauthorized immigrants were 5.4 percent of the labor force in 2007 and 4.8 percent in 2016, according to the Pew Research Center.

Does E-verify reduce illegal worker hiring?  Interestingly, the rise of E-Verify enrolled employers and queries has not significantly reduced the number of illegal workers.  The Cato Institute estimated that from 2007 to 2016, the number of illegal workers hovered around 8 million, even though the number of E-Verify queries increased.  Although it can not be determined with certainty more than half of all illegal workers run through the E-verify system are not rejected, primarily by borrowing the identification of legal workers. Click to read more.

What are the benefits of becoming an E-Verify enrolled employer?

  • It may help your company avoid penalties for hiring illegal workers
  • It may lessen the probability that your company will receive “no match” letters from Social Security
  • It is evidence of good faith if your company is selected for an I9 audit
  • It is mandatory if your company hires foreign students with STEM F-1 visa during their 2-year optional practical training period.

If you are interested in enrolling in E-Verify, give our office a call.  We work with E-verify employers and federal contactors everyday.

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?

Need on-going HR support?
We have affordable HR retainers that offer a unique alternative to full HR outsourcing or the hiring of a full time HR employee. We design unique solutions to match your business strategy and budget. We have a proven track record of helping companies from many industries. We listen and probe to understand your needs and goals, before we offer recommendations and realistic solutions.
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