All posts by stu

Background screening, Craft Beer, Engagement, Human Resources, I9 Form, New Hire, Personnel File, Record Keeping

Hops and HR: Employee Hiring Packet for a Florida Craft Brewery

Your growing brewery is starting to hire new employees and you know that HR is not your expertise.  There is a stack of employee-related paperwork tucked in your filing cabinet (or on your desk) but you are not sure you have the right papers or enough paperwork.  Maybe it is time to tighten up the hiring process, assess what is needed and develop a structured approach to hiring employees.  What forms and/or documents should a Florida craft brewery employer use for hew hires?  An employee onboarding process will welcome your new hires, gather sufficient information and protect your business.  Whether you are a start-up brewer or an established brewing operation looking to improve your HR process, here are some basics when setting up your brewery employee hiring packet.

Your brewery should create and maintain a file for each employee in order to meet legal requirements.  The documents can be maintained as paper or in electronic files, as long as they are safeguarded and preserved for the required time periods.  The current trend involves the use of cloud-based software services (such as payroll or onboarding sites) to obtain and store employee hiring documents that are electronically signed by employees. For you old-schoolers, use manila folders, paper forms and wet signatures for your documents.

Here are 10 documents (in addition to your Employee Handbook acknowledgment form) you should include in your brewery’s new employee hiring packet.

  1. Employment Application – using an employment application is important to gather relevant data about an applicant, and obtain answers to important questions. Use an application that is designed for the State of Florida and kept up to date for law changes.
  2. Criminal background checking and/or Motor Vehicle record Disclosure and Consent form, plus the current version of the Notice of Rights under the Fair Credit Reporting Act.  If you use a third-party vendor, check that they have provided you with up to date forms and templates.  Consultstu LLC uses Sarma for its screening and drug testing services.
  3. W4 (updated annually).
  4. I9 Form (latest form was updated in 2017).
  5. Florida New Hire report – better yet, your brewery can register and report new hires online through the Florida Department of Revenue. Print screen and save.
  6. Direct Deposit form – important to allow your business to pay employees via electronic payment, such as Quickbooks or a payroll service, and authorize pay corrections if needed.
  7. DOL Marketplace Exchange form (DOL templates) – whether your brewery offers group medical insurance, or not, there is a DOL template form to provide to each new employee.
  8. Employee Emergency contact
  9. Job Description, including physical and mental requirements, for the position.
  10. Confidentiality Agreement (including trade secrets) – for key staff that work with highly confidential information, including methods, recipes, ingredients, suppliers, techniques, pricing, concepts, designs, marketing and sales, and business plans.

Your brewery may also have additional documents relevant to its particular business to include in its employee hiring packet.  Consultstu LLC provides hands-on consulting services to small businesses, including craft breweries, to develop suitable HR processes and documents.

Compensation, Department of Labor, EEO-1 Form, EEOC, HR Compliance, Record Keeping

How to Report Pay Data on EEO-1 Component 2 Website (6 steps)

If your Florida company employed 100 or more employees (and federal contractors with more than 50 employees) for all pay periods in the 4th Quarter of 2017 and 2018, then you need to learn how to report your organization’s compensation data to the Equal Employment Opportunity Commission (EEOC).  Reporting for both years (2017 and 2018) must be submitted on or before September 30, 2019.

The EEOC recently updated the Component 2 EEO-1 Online Filing System website to include resources for employers, including a section on Frequently Asked Questions, a sample forms, and instruction booklet.  See the Fact Sheet Summary.

Step 1: Determine if your company employs at least 100 employees during the pay period selected in the 4th quarter of each year (2017 and 2018).  Full time and part-time employees need to be counted.  If less than 100 employees were employed during any pay period in the 4th quarter, your company can select that pay period as the basis for your employee count, which will exempt you from reporting.  The Component 2 pay period does not need to be the same pay period that you used during your standard EEO-1 reporting in May.  However, if there is no pay period that could possibly put you under the 100 employee count compliance threshold, it might be easier to use the same period for which you had already pulled an EEO-1 report.

Step 2:  Pull an EEO-1 report for the pay period to identify all employees in the selected pay period, as well as their EEO-1 ethnicity category and gender. Use the compensation pay bands from the sample form (using the earning from the “W2 – Box 1 – Wages, tips, other compensation” as the measure of pay for Component 2), tally the total number of employees who fall into each of the 12 compensation bands by the 10 different job categories.  If there is no employee in a compensation band, employers should leave the cell blank.

Step 3: The second portion of Component 2 reporting involves reporting hours-worked data.  Pull a year-end report showing all hours worked by non-exempt employees during the selected pay period.  Each cell on the hours-worked matrix corresponds to a cell on the summary compensation data matrix. The hours worked during that year by all the employees counted in the cell on the summary compensation data matrix should be totaled and then recorded in the corresponding cell on the hours-worked matrix. Read the FAQs.  Hours-worked data is reported to account for part-time and partial-year employment. For non-exempt employees under the Fair Labor Standards Act (FLSA), employers must report actual hours worked.  For exempt employees, you can report full time as 40 hours per number of weeks employed (or use actual hours).  Check the FAQs for other questions.

Step 4: Add all of your compensation and hours worked summary data onto a CSV data file that will be uploaded on the website.  Use the template provided.

Step 5: Set up your online account.  Go to https://eeoccomp2.norc.org/Login and click on first time user and create a user name and password.  If help is needed, contact the help desk by phone at 877-324-6214 or email your question to [email protected].

Step 6:  Log on and upload your data.  You will enter a separate submission for 2017 and for 2018, which are both due by September 30, 2019.   After each submission, you must fill out the Certification Page and select “Certify” in order for the submission to be accepted (after which you will not be able to edit data for that submission).   Don’t forget to save a copy of the submitted data for your company’s records.

Unsure about what to do, or want some assistance to get this mandate done?  Just give us a call at Consultstu LLC (727) 350-0370 and we can help.

Bonuses, Compensation, Employee Recognition, Fair Labor Standards Act, Wage and Hour

Paying Non-Discretionary Bonuses (and proper OT) to Hourly Employees

Bonuses are great motivators for performance and a meaningful way to recognize employees that deliver excellent results for your business.  If your company plans to pay overtime eligible employee (hourly) bonuses (on a quarterly or annual basis), you need to follow the rules in the Fair Labor Standards Act (FLSA).  To help employers, the Wage and Hour Division published a July 2019 Opinion Letter on this topic.  There is also DOL Fact Sheet #23 that explains how to pay non-exempt (hourly) employees proper overtime when extra compensation (including bonuses, commissions, spiffs and cash awards) is paid to hourly employees.

Let’s recap some basics.  An employee’s regular rate (to determine the proper overtime rate) includes all monies for employment except certain payments excluded by the FLSA (for instance, premium for work performed for work on Saturdays, Sundays, and holidays, discretionary bonuses, occasional gifts for special occasions and payments when no work is performed due to vacation, holidays, or illness).  Nondiscretionary bonuses count as remuneration that an employer must include in the regular rate of pay.  If a non-discretionary bonus is based on a period of time greater than one week, the employer is left with a three (3) options for paying overtime in compliance with the FLSA.

  1. Recalculation Method: An employer may base a nondiscretionary bonus on work performed during multiple workweeks and pay the bonus at the end of the bonus period. In that case, the employer may disregard the bonus in computing the regular hourly rate until such time as the amount of the bonus can be ascertained.  Once the amount is ascertainable, generally the employer must retrospectively recalculate the regular rate for each workweek in the bonus period and pay the additional overtime compensation due on the bonus. If it is impossible to allocate the bonus among the workweeks of the period in proportion to the amount of the bonus actually earned each week, then the employer must adopt some other reasonable and equitable method of allocation.  One such method is averaging the bonus earnings across workweeks.
  2. Fixed Percentage Bonus on Regular and OT Hours: An employer, however, is not required to retrospectively recalculate the regular rate if the employer pays a fixed percentage bonus that simultaneously pays overtime compensation due on the bonus.  For example, a bonus that is 10 percent of straight-time wages (the hourly rate × straight-time hours worked up to 40) and 10 percent of overtime wages (1.5 × the hourly rate × straight-time hours worked over 40) does not require recalculation of the regular rate because the bonus includes the overtime compensation due on the bonus as an arithmetic fact, fully satisfying the FLSA’s overtime requirements.
  3. Bonus on Total Compensation: Similarly, a bonus that is 10 percent of total compensation—including hourly wages, overtime, bonuses, commissions, etc.—does not require recalculation.

The Opinion Letter confirms that an employer that pays a quarterly percentage bonus on an employee’s straight-time and overtime wages, would not need to recalculate the regular rate for each workweek in the bonus period to include this quarterly bonus.  So, a bonus of 15 percent of both your straight-time and overtime wages would simultaneously include all overtime compensation due on the bonus as an arithmetic fact and satisfies the requirements of the FLSA.

 

Company Culture, Engagement, Fractional HR, Hiring, Human Resources, New Hire, Recruiting

Spotlight on our Clients: Innovative Hiring Technique Pays Off

Over the years, we’ve assisted our Bradenton based client HP Ingredients with many aspects of HR, including occasional recruiting.  We help with the job postings, resume review, screening, scheduling interviews … taking much of the leg work off of their plate.  We assist in just about every aspect of hiring except making the actual decision.

Recently, HPI management found itself in the enviable dilemma of multiple qualified applicants.  Candidate A and Candidate B, each offering substantial strengths, tempered by just enough areas of uncertainty to prevent an easy “no-brainer” decision.  Instead of flipping a coin, founder and president Annie Eng came up with an innovative strategy that engaged and empowered every member of this  growing Neutraceutical company.  According to Annie, “we depend on our employees to contribute their best effort with respect to our business objectives, so we look for people whose work ethic and opinions we can trust.”

The candidates were called in for a final interview.  But this time, both met with EVERY SINGLE EMPLOYEE.  HPI decided to truly “walk the walk” of entrusting success to their most important resource, the people who are most familiar with the dynamic production environment, the high standards of quality and safety, and the company’s commitment to ethical global enterprise.  A post-interview vote took place, and ConsultStu received instructions to draft the offer letter.  When we contacted the applicant to notify him of the impending offer, we asked about the experience.  “I was definitely surprised when they told me I’d be interviewing with everyone in the company,” he told us, “but I was impressed by what it said about this employer, and how they regard their staff.”

The whole concept knocked our socks off, but it turns out tech giant Google follows a similar formula of widening the scope of hiring decision input.  The tech giant uses a strategy of making hiring decisions through a team consensus, and all hiring decisions are passed along to a hiring committee for review.  It may slow down the hiring process, but a team approach has improved hiring results.

Congrats to our client HP Ingredients on a bold and creative hiring strategy that paid off for everyone.  Serving an array of small business clients in various industries contributes to our own HR expertise and collective experience.  If your company is growing larger than your HR resources, consider our affordable “HR on-demand” services.  We are here to help!

Employee benefits, HR Compliance, Human Resources, Leaving a PEO, Payroll, Workers Compensation

Checklist for Leaving your PEO in Florida

If your small to mid-size business has decided to leave your Professional Employer Organization (PEO), you may be wondering about the various action items you must do (and consider) to get out. There are financial and staffing issues to consider so that your exit is as smooth as possible. When using a PEO, you are totally wound around their administrative infrastructure – including their HR software, payroll and tax services, insurance programs, policies and procedures, vendors and skilled staff that handle the administrative aspects of human resources. These services come at a premium, and sometimes businesses decide that they can handle these HR administrative duties for a lower cost and/or with better service.

If you’d like an example of a success story, one of our construction clients (between 50 and 75 employees) has recently accomplished extraction from their PEO, projecting a potential estimated annual savings of $135K!   After discovering that PEOs do not have to follow the regulated WC code rates set by the State of Florida, they decided to invest in some PEO alternative research.  Now, instead of paying a premium for each WC code — in some cases $4-$5 per $100 more than the standard FL class code rates, along with a high “per occurrence” deductible — they obtained their own workers’ compensation policy option, with an experience mod of 1, Florida regulated rates per WC class code, and no deductible.  The annual savings do not include the elimination of the PEO administrative fees by taking payroll in-house and handling human resources with their own team.  Don’t be surprised if your PEO offers to slash its fees or drops your comp rates, to try and keep you.

Therefore, we have created a PEO Exit Checklist that covers the subjects you need to consider, so you are ready to go when the time comes to cancel your PEO relationship.

  • Determine who will quarterback your transition.  Hire fractional HR services to fill the gap in human resources knowledge, and to verify that systems and procedures meet compliance, cost control and HR effectiveness objectives.
  • Create personnel files (electronic, paper) and contents checklist.
  • Create new hire package with up to date documents (especially the Form I9)
  • Create (revise) the Employee Handbook and re-purpose other HR documentation using your logo.
  • Payroll system and tax services (partner with a software or cloud-based payroll service).  Consider helpful features like employee self-service, reporting capabilities, W2s and ACA reports.
  • Unemployment tax rates – consider the timing and tax consequences when exiting the PEO (check to see if the PEO is certified, which may allow you to avoid having to re-start new FICA and FUTA tax withholding after leaving the PEO).  Check with CPA.
  • Assign HR administrative duties.  Recruiting new hires, and adding new employees/processing terminating employees in the new payroll platform.
  • HR software or payroll upgrades – consider adding special features to the payroll system (HR bells and whistles) that can automate some HR functions. For instance, online onboarding new employees, PTO tracking, online performance reviews, reporting and discipline tracking.  Consider what HR processes can be automated and what you want to manually.
  • Insurance for Workers’ Compensation – obtain a policy to cover your employees on the date you leave the PEO, ask about their risk management services.
  • Employee Benefits – partner with an experienced employee benefits consultant to evaluate group medical, dental and vision insurance, and other supplemental policies. It will likely take 60 to 90 days to obtain coverages, so start early and coordinate with your PEO exit date.
  • Retirement plan – if this is important to employees, partner with an experienced vendor to evaluate and pick a plan that works for your company.  Ask about their options for DOL Form 5500 plan filing services.
  • Obtain a quote for Employment Practice Liability Insurance (EPLI) if this risk is a concern.  This can be expensive.  Using a skilled HR consultant can also reduce your risk exposure from employment disputes.
  • COBRA administration.  For small employers, this no big deal, and larger employers can decide whether they want to use a third party vendor, or do it in house.  Ask your employee benefits consultant about vendors.
  • ERISA.  For employee benefits compliance, a third party vendor can be used to handle ERISA compliance matters, and create written plan documents.
  • Reporting and coordinating employee workplace injuries can be handled by your in-house team and HR consultant.  Develop a written HR procedure and partner with your new Workers’ Compensation insurance agent for solutions.
  • Prepare an employee communication campaign about leaving the PEO, and the directory of who will handle what after the PEO exit date.

We may have forgotten a few things, but this PEO Exit Checklist will get you well prepared.  If you have questions about leaving your PEO in Tampa, St Petersburg, Clearwater, Sarasota or Lakeland (or west central Florida), or would like to develop a plan for delivering human resources after you leave the PEO, just give us a call.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations.  We deliver customized HR and risk management solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

Americans with Disabilities Act, Contagious disease, Employee Illness, Employee Rights, Reasonable Accomodation

Have an Employee with a Contagious Disease? 4 Things to Know

If you have a small business, you already have a million things to lie awake worrying about. Get ready for another: infectious and contagious diseases are on the rise.  It has been reported that the Florida Department of Health has confirmed over 1,100 Hepatitis A (HEP A) cases in 2019 so far.  According to the state epidemiologist, HEP A is a very hardy virus, that spreads from person to person, and can live on surfaces for long periods of time.  It can be contracted when someone touches an infected surface and puts their hand in their mouth.  What does your small business need to know about handling an employee that reports a contagious disease?  Did you know that a sizable percent of people do not wash their hands after going to the bathroom.

Here are some important topics related to contagious diseases at work:

1) Are there REPORTING obligations?  If an employer receives credible information (or an employee self-report) about a contagious disease, you are encouraged to contact your local county health department for guidance and response suggestions.  For instance, Pinellas County Health Department provides current news updates and protection guidance.  If your business is food related or inherently involves a higher risk of exposure to infectious contagion (medical, sanitation, drug treatment or homeless facilities), there are specialized regulations that apply to your workplace that are beyond the scope of this article.

2) Are there LEGAL IMPLICATIONS for the employee with an illness?  Yes, if you have 15 or more employees, you need to comply with the Americans with Disabilities Act (ADA).  Infectious diseases can be eligible for ADA protection if they result in chronic or permanent disability.  Hepatitis A and Measles usually do not present long-term complications, so there may be some question about the application of the ADA (or other similar local ordinance).  However, we think that showing compassion and respecting their privacy (if possible) are important.  Your business can also consider accommodations, such as a leave of absence.  But, even if the ADA applies to these serious medical conditions, due to the highly contagious nature of the conditions (spread through casual contact), there is likely a significant “direct threat” to the health of other employees.  Check with a medical expert, or the county health department for their recommendations.

3) Are you taking PREVENTIVE actions? While you can’t control every terrible thing that “might” happen, we guarantee your company will come out of ANY situation better if you have demonstrated a commitment to prevention.  Provide an informational email or poster explaining the transmission, symptoms, and prevention of common contagious diseases. Keep restrooms clean, equipped with hot water and antibacterial soap. Do not encourage sick employees to come into the workplace.  Consider offering information about vaccinations to employees (requiring vaccinations may be possible but merits an attorney consultation).

4) Is there an EMPLOYEE NOTIFICATION obligation?  The Occupational Safety and Health Administration (OSHA) requires that employers provide a safe and healthy workplace for employees and a workplace free from recognized hazards.  If you are aware of a contagious or communicable disease that may pose a health risk to employees or the public, OSHA would require notification of employees, supervisors and the affected employee.  HR should seek to confirm the needed information and obtain sufficient facts about the condition and employee affected to make effective decisions.  If the employer only has a suspicion of infectious disease event, it must still take reasonable actions to investigate the situation, discuss with the affected employee and make proper decisions to protect everyone’s safety.  Consult with legal counsel to ensure that everyone’s rights are protected.

HR should be expected to provide leadership in these situations.  There is a delicate balance between an affected employee’s rights of privacy and the company’s obligations to protect co-workers from serious illness risks.  Before an event occurs, it is good to assess the risks for contagious disease, provide proactive communication about disease prevention and prepare a step-by-step process for how to handle a contagious disease in the workplace, should it arise.  If you have questions, give us a call.

Company Culture, Craft Beer, Employee Handbook, Employee Policies, HR Compliance, Human Resources

Hops and HR: Does my Craft Brewery Need an Employee Handbook?

In February 2019, Florida had 348 craft breweries.  Seven new breweries opened in February 2019, and there are many, many products to choose from.  Chances are, your craft beer operation is humming along and employees are busy building a great brand and delicious product.  The workplace has great energy, and employees are mostly getting along together.  HR seems to be on autopilot.  However, lately, you have noticed that there have been a few questions about company policy and you are hiring more often.  In the past, you have created a few stand-alone employee notices about important topics (changing shifts, requesting time off, conduct in the tap room, paid time off), but most other policy questions are handled on an “as needed basis.”  Now that you have successfully launched your summer beer offerings (with very positive feedback), is it time to create an Employee Handbook?  You are still a relatively small business, but the brewery employee count is approaching 20 employees.  Given today’s business climate, the experts agree that your craft brewery should create an Employee Handbook, but …  you do not want to douse the entrepreneurial creativity and “chill vibe” at the company.

Consider what Christine Denny, president of First Magnitude Brewing, has to say about managing business growth. First Magnitude started as the shared vision of four friends in Gainesville, and, five years later, the company is running a 20-tap tasting room and beer garden, and producing award-winning brews.  Realizing that it was time to “get everyone on the same page, by providing common guidelines,” Christine entrusted us at ConsultStu with the development of a handbook custom designed for her industry.  “One very important area of consideration for a craft brewery is an alcohol policy,” Christine explains.  “We had to consider our tap room staff, brewers, and sales team when developing a policy that acknowledges the industry we work in while ensuring we operate a very safe and respectful workplace.”  Overall, she reports, the First Magnitude employees appreciated the effort that went into the handbook, as well as the sense of becoming a more established company.  The clear guidelines for operations and staff conduct and behavior create a framework that everyone can work from.  ConsultStu is proud to contribute to the next level of success for this client and for all of our clients.

And now … if your brewing company is ready for the creation of a new Employee Handbook, what policies should be included?   We break the needed policies into two groups: those that protect the business and give you the flexibility to manage; and the policies that employees care about.

Protecting your Craft Brewery (the basics):

  • At will employment – so there are no express or implied contracts of employment and everyone is free to stay or leave, as they wish
  • Equal Employment Opportunity statement.
  • A non-harassment statement that prohibits harassment, explains what it is and how your brewery will handle harassment concerns that are raised by employees
  • Workplace conduct rules, including attendance, to provide employees with specific matters that may lead to corrective counseling, up to an including termination
  • Company communications and guideline when using company phones, computers, internet and when using social media
  • Pay periods; how to record and report hours worked (method) and responsibility to pay overtime
  • 90 day introductory period for new hires to minimize your unemployment costs
  • Mandated leaves under federal and state law, including jury duty and military duty.
  • Workplace violence prevention
  • How to report a workplace injury
  • Lactation accommodation
  • Returning company property

Your employees will want to know about these policies:

  • Pay days
  • Open door and how problems are addressed
  • Proper dress for work
  • Employee benefits – paid time off, insurances, perks, retirement plan, sick days,
  • How performance is evaluated
  • Bonuses and incentive pay
  • What is your story and why should employees care
  • Company values
  • What makes your business unique and amazing

Rather than taking the fun out of your business, your craft brewery employee handbook will actually make life easier for you AND your employees, by establishing a fair, consistent, transparent foundation of mutual expectations and obligations.  It will serve as a helpful resource to employees (answering questions and shaping culture) as well as an important document that establishes your company’s commitment to legal compliance.   At Consultstu, we can provide special project assistance on an hourly basis to develop an effective employee handbook designed for the size and style of your unique business.  Call or email us today!

 

Florida rules, HR Compliance, Payroll, Wage and Hour

Can I Hold a Final Paycheck Until the Return of Company Equipment in Florida?

In Florida, a terminating employee must be paid their final paycheck no later than the next regularly scheduled pay date.  So, if your company pays bi-weekly, an employee leaving employment (either through termination or voluntary quit) must be paid on the next pay date.  So, holding a paycheck is not permissible.  If you are terminating employees in another state, be sure to check the state law because some states require fired employees to get paid on the day of termination.

But, what if the employee has company property that was not returned prior to or at the time of termination?  The last paycheck delivery obligation does not change if the employee has company property.  An employer may cancel direct deposit and ask the employee to come into the office to get their check (which allows for a reminder and creates an ideal opportunity to bring back company property).  However, if the employee does not show up by the date for payment, the employer is obligated to mail out the employee’s check.  To encourage the employee to return company property, I would recommend that you offer them something in return.  Perhaps offer to issue their last paycheck, or their last reimbursement check early?  Come up with your own idea and be creative.

What about recovering the cost of unreturned equipment?   Can you make deductions from their final paycheck?  No simple answer there.  Of course, your company should get all employee to acknowledge receipt of the equipment and agree to return it when asked.  Identify the equipment by serial number and take a picture.  Your equipment issuance form can also have language that the employee is financially responsible for returning it in good condition.  However, it is not a legitimate policy to withhold any paycheck in exchange for unreturned equipment.

We recommend that companies take the following steps:

  • Use property issuance agreements with employees – make clear they must return all items.
  • Assign a specific value to the company property.
  • State that if company property is not returned on time, your company can hold the employee financially responsible for the value of the equipment. However, before making any deductions from the last paycheck, make sure you review the different rules related to hourly and salaried employees.
  • Prepare a written demand for the property (sending certified mail) to ensure that small claims court is an option.
  • Filing a police report for property theft is another option.

If you are giving employees expensive company property to use, and not using a Property Issuance Agreement, contact us today at Consultstu.  We can make sure you are in the strongest possible position to hold employee accountable for your property!

Craft Beer, Fractional HR, HR Costs, HR Resources, Human Resources, Payroll, Start up

Hops and HR: Florida Craft Breweries Have Options

 

Whether your brewery is a start-up, or well-established and growing, how you handle human resources is a key aspect of business success.  Your workforce supports your brand.  Craft breweries are popping up all over Florida, and enjoying great success.  Each brewpub and product has its own unique value proposition and niche to squeeze into the crowded field of existing brewery options.

Of course, great product, unique recipes and a prime location are key elements to success, but don’t overlook another key element of your brewery’s success – a vibrant human resources function.  Not only will your brewing business need to create properly compliant HR processes and administration (the boring but important HR stuff), but HR can help drive small business results by recruiting great talent, building policies that define company culture, and ensuring your business delivers the competitive pay, benefits and perks expected in today’s workforce.  HR counsels with ownership to recommend methods and practices to develop employee effectiveness and respond to changing market conditions.  Florida brewing companies have several options for handling HR.

First, a brewing can outsource everything to an HR outsourcing company, also called professional employer organizations (PEOs). The PEO becomes a co-employer of your employees and handles the basic HR administration, including payroll, new hire processing, employment taxes, workers’ compensation and the offering of employee benefits.  There are many PEO options out there, from large national companies to local businesses.  These companies do a good job with the “nuts and bolts” of HR compliance, but they can be pricy and deliver unwieldly packages of bundled services.  For well-funded small and start-up breweries, this may be a very good option so that ownership is freed up to focus on business operations.  PEO services range in price.  PEO clients are either charged monthly administrative fees per employee/per month or charged a monthly percent of payroll fee.  As an example, let’s say a small 10 employee brewery is paying monthly PEO fees of $800 to $1200 per month (not including initial start-up fee, employee benefits and workers’ compensation costs).  The monthly cost is fixed, regardless of fluctuation in HR activities, and will experience controlled increases as the company grows.

Another option is the “do it yourself” method.   Using this option, your brewery generates and develops its HR processes in house. The DIY approach is preferred by breweries that seek to retain maximum control of internal operations (such as hiring, firing, handling HR paperwork, complying with federal and state employment regulations, managing unemployment, injury and workers’ compensation procedures, etc.).  You also avoid the high costs of “all inclusive” PEO services.  While it is feasible for management to utilize business software such as Quickbooks to handle payroll, perhaps with assistance and oversight from a bookkeeper or financial manager, many companies opt for a slightly modified version of DIY, under which only the payroll function is outsourced.  There are many resources, including online cloud-based systems, to handle just payroll, payroll taxes and employee deductions.  For a 10 employee brewery, you might find payroll services for around $200 per month (depending on payroll cycle), with some additional fees for W2s and quarterly employment tax filings.

A third option is a hybrid between a fully outsourced model and the DIY approach.  Some PEOs modify their “all inclusive” PEO contracts to offer individual services under an Administrative Services Organization (ASO).  The ASO provides a cafeteria-style selection of individual services for human resources, payroll and benefits administration.  Your brewery decides what specific HR tasks to outsource and retains full responsibility for the remaining functions.  For instance, your brewery might select to outsource payroll, benefits administration, and unemployment claims.  Using the ASO model, the HR service provider is not a co-employer of your brewery staff, so the brewery must retain its own payroll account, workers’ compensation policy (and experience MOD), SUTA rate and employment risks for hiring and firing.

The last option features the highest level of customization and flexibility (and is trending with the growth of the freelance community).  DIY focused breweries can purchase fractional HR services to conform to their evolving, periodic, or fluctuating HR needs.  For instance, a start-up or growing DIY brewery may have the basics covered (payroll, admin support, insurance advisors) – but needs help recruiting, or would like to design a company handbook or an on-boarding process to build engagement and strengthen company culture.  An external HR consultant can also step in to handle unplanned HR events with minimal disruption to operations … employee complaint, investigation, discipline meeting, employee injury, terminations, etc.   The level of trust and familiarity can grow by using the same consultant over time, but the beauty is that you only pay for services when you need and use them.  HR consultants range in price and expertise depending on location and services.

As your brewery builds followers and increases sales, consider (or reconsider) the best option for your HR administration.  Successful businesses and breweries take HR beyond the basics.  Old school HR dutifully handles common administrative tasks, follows direction, and maintains the required paperwork and personnel files.   This can be handled by a PEO, ASO or using DIY principles.  However, a craft brewery in 2018 should update its HR mindset.  Strategic HR tools and techniques can strengthen the connection with employees to build your brand.  HR can serve as your “workforce guru,” or Sherpa who delivers creative thinking, changing tactics and strategic recommendations to find and retain amazing talent.

Consultstu advises Florida craft brewers on HR matters and delivers fractional HR expertise for start-up businesses.  Our next blog post will present ten critically important HR issues that Florida brewing companies are facing in 2019.

 

Employee Injury, Human Resources, Work from Home, Workers Compensation

When are “Work from Home” injuries covered by Florida Workers’ Compensation?

More and more employers are permitting employees to work from home, for some or all of their work week.   This raises the potential of home-related injuries being claimed by injured employees under the Florida Workers’ Compensation Act, even though the employer has no control over the home-based office space of the employee.  What are the rules when work from home employees get hurt at home?

A “work from home” workers’ compensation claims adjuster for Sedgwick CMS and The Hartford tripped over her dog while reaching for a coffee cup in her kitchen, injured herself and then filed a work comp claim.  On the day of the accident, she had been working for 3 hours by the time she fell over one of her two dogs.  She sustained knee, hip and shoulder injuries.   Her employer permitted her to work from home, but denied her workers’ compensation claim because it asserted that the injury did not arise out of the employment.  At first, the employee won her claim.

The Florida workers’ comp law states that an employer is responsible for accidents that “arising out of work performed in the course and scope of employment.” (440.02, Definitions)  Did her injury arise out of the employment?  A compensable accident occurs in the scope of employment when it occurs in the period of employment, at a place where the employee would reasonably be and while she fulfills her duties.  In her case. the injury occurred during working hours, in her home where she would reasonably be and her coffee break was a permissible comfort break.  So was it compensable?

No, because the Florida Legislature intended the term “arising out of employment” to requires occupational causation.  The Court reversed the decision of the JCC and stated that the risks that caused the claimant’s accident and injuries must be work-related.  So, an injury is only compensable if the employment necessarily exposed a claimant to conditions that would substantially contribute to the risk of injury and to which the claimant would not normally be exposed during his nonemployment life.  The employment must, in some way, contribute an increased risk of injury peculiar to that employment – otherwise, it did not arise out of employment.

The injuries must flow from the risks related to an employee’s work.  A claim was denied for a person that fainted at work because the claimant could not demonstrate that her physical surroundings on the job in any way contributed to the risk or injury any more than they would have in a non-employment life.   With no “occupational causation”, a claim can not succeed.

In this case, the normal features of the claimant’s “non-employment life” (sleeping dog, kitchen, reaching for a coffee cup) caused the accident and injuries.  Similar at home injuries, such as a light fixture falling, tripping over kid’s toys, poor lighting, slippery floor tile – would all seem to be non-compensable claims.  Florida courts have consistently ruled that workers’ compensation does not allow for the recovery for all injuries occurring in the workplace.  Specifically, Florida does not allow recovery for injuries that arise out of conditions personal to the claimant, which are not caused or aggravated by the work.  Therefore, if an employee is injured while working at home, make sure your accident investigation determines the cause of the injury so it can be properly reported to the insurance carrier.

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