All posts by stu

Background screening, Fair Credit Reporting Act, Hiring

5 tips for conducting New Hire Background Checks

More small businesses are looking to verify information submitted by applicants and conducting a criminal background check is standard practice for many companies. I hear about many small businesses that try and conduct DIY background checks by looking at local county jail websites and using free online websites, like Spokeo. This is not a best practice, is not reliable and likely does not comply with the requirements of the Fair Credit Reporting Act (FCRA). So, what does a small business need to know about criminal background checks?  Here are 5 tips for conducting effective background screening.

First, it is best practice to select an experienced third party background checking company to ensure that they can help your company follow all the applicable legal requirements. If you hire employees from other states, be aware that many states have additional legal protections for applicants – and your background screening company can help you comply.  For instance, some states ban the ability to ask about criminal convictions on the employment application (in Florida, an employer can ask an applicant about criminal convictions).

Second, obtain an up to date disclosure and consent form that is signed by the applicant. Your document needs to meet the requirements of the FCRA. Check annually to make sure your form is still the most current version.

Third, make sure your offer letter tells the candidate that the offer is contingent upon the successful result of the criminal background check. The company has the right to rescind its offer if the results are unsatisfactory.

Fourth, only the most recent criminal convictions that relate to the specific job can be used to disqualify an applicant. The FCRA mentions using a 7 year period of time for looking at convictions. So, not any conviction, but relevant convictions can be used. The older the conviction and lower the severity, the least relevant.  Generally, minor offenses that were committed years ago should not be used to deny employment.

Fifth, if your check shows a conviction, your company must use the process outlined in the FCRA to give the candidate a chance to dispute the results (if they believe there is a mistake on the report). There is a process and time frame for sending Adverse Action letters to the affected candidate, allowing the person time to communicate directly with the background screening company about any alleged errors. Your company must give the candidate a reasonable amount of time to dispute the incorrect information before you pursue another candidate.

Consultstu LLC uses Sarma to conduct its small business background screening.  For questions about your background screening needs and situations, give us a call.

Discrimination, EEOC, Harassment, Investigations

How to Investigate a Sexual Harassment Complaint

With the ever-expanding news of sexual harassment complaints against Harvey Weinstein, Kevin Spacey and other Hollywood “A” listers, there is a national spotlight on harassment. If an allegation of harassment occurs at your organization, are you prepared to respond quickly and competently? First, almost every company should have a written policy that prohibits sexual harassment and other forms of harassment based on characteristics protected under federal and state law. Often, this policy is contained in the Employee Handbook or Office Manual.  Businesses with 15 or more employees are covered by state and federal discrimination/harassment laws, and smaller businesses (down to 5 employees) are often covered by local county or city ordinances on discrimination.

Second, understand what constitutes sexual harassment. The Equal Employment Opportunity Commission (EEOC) provides a three-prong definition for sexual harassment. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when: (1) Submission to such conduct is a condition of employment or advancement; (2) Submission to or rejection of such conduct is used as the basis for an employment related decision affecting an individual; or (3) conduct that has the purpose or effect of interfering unreasonably with the individual’s work or performance or creates an offensive, hostile, or intimidating working environment. The company’s written policy should outline a procedure for handling harassment complaints, including the person designated to receive an employee’s concern.

Now, here are the six steps to conducting your sexual harassment investigation:

Step 1: Receive the Complaint. When receiving a complaint, the company must take each instance seriously, listen with empathy (not judgmental) and not unnecessarily delay the response. Document the complaint – preferably having the Complainant put his/her complaint in their own words, and ask for details on all alleged incidents. Depending on the severity of the complaint, legal counsel may be conducted for assistance. Ask the Complainant for what type of outcome he/she prefers. Explain that the Company will protect the complainant from retaliation for participating in the investigation and that confidentiality will be maintained to the fullest extent possible, but the alleged harasser must have sufficient information to have the opportunity to respond to the allegations. Ask open ended questions, remain neutral, and do not make promises or guarantee a specific result. Ask for the names of any witnesses and if there are any documents or physical evidence that corroborates the complaint.

Step 2: Review the Complaint. Review the facts and any evidence that supports the allegations of harassment. Take immediate steps to stop any active harassment and determine if the parties need to be separated during your investigation. The alleged harasser may be asked to take some time off from work, while the investigation is conducted; or the complainant may be offered (voluntarily) some paid time off while the investigation occurs. Determine how and when to schedule an interview with the alleged harasser.

Step 3: Interview the accused Harasser. Stay objective and do not assume that the alleged harassment happened. Take notes and preferably, have the accused employee write up their statement responding to the alleged incidents brought forward by the complainant. Ask the accused to identify any other evidence or documents that support their version of events. Interview any other witnesses identified by the accused harasser or the complainant. Ask all witnesses to keep the investigation confidential, and not to speak to other employees about the subject of the investigation.

Step 4: Weigh the evidence. Consider the credibility of each party and the reputation for honesty of the employee and the alleged harasser. Could there be another reason for the complaint – such as the employee is trying to make up for a poor performance review or a disciplinary action?  Have there been previous complaints?  Does the evidence support the complaint? Look for inconsistencies, or consistencies, between the accused version of events and the complainant’s. What evidence supports each sides version of events (especially if the case boils down to a “he said, she said” case).  Use common sense and your own knowledge of events to help fill in any gaps.

Step 5: Document your Investigation and Take Action. Keep a detailed written record of your entire investigation. If a discrimination or harassment charge is later filed, your detailed notes of your investigation are critical to your defense. Make your notes sufficiently clear and detailed so that you (and anyone else) can understand and use them in the future. Once you have the facts, make a decision about what you think happened and whether sexual harassment occurred.  If you determine that harassment occurred, then take prompt action to address it. Company action may involve discipline, an apology, reprimand, reassignment or discharge, depending on severity. The action should match the facts, and be geared to preventing future misconduct. Additionally, the company may decide to re-train employees, revise policies and/or make other workplace changes that make sense.  It is not the company’s purvue to determine illegality but only if a violation of company policy occurred.

Step 6: Close the Loop with the Complainant. Inform the Complainant about the results of your formal investigation and your decision. In addition, you may decide to discuss the means and methods for the complainant to confront concerns about harassment in the future. The victim can be instructed about how to talk to the harasser directly in order to state that their conduct is unwelcome and must stop.  You will continue to monitor the situation and make sure objectionable behavior does not re-occur.  Obviously, there will need to be some time for stress, feelings and emotions to decrease. Place emphasis on the professionalism and that each party has a vested interest in maintaining an efficient and harmonious workplace.  Take action against the accused, if needed.

Consultstu LLC provides fractional HR services to small/mid businesses that lower operational costs, improve business processes and maintain compliance. We deliver customized HR and safety 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

Employee Injury, HR Costs, Insurance, Workers Compensation

Florida Work Comp rates dropping in 2018

It’s final.  This week, the Florida Insurance Commissioner issued a directive for workers’ compensation rates to be decreased by 9.8% beginning in 2018.  His final order increased the rate reductions recommended by the National Council on Compensation Insurance (NCCI).  In addition, State Insurance Commissioner David Almaier asked NCCI to analyze the impact of eliminating the attorney fee caps in future work comp rate recommendations.  Last year (2017), Florida businesses paid huge increases in work comp base rates (an average 14.5% increase) due to several Florida Supreme Court decisions in 2016 that removed the caps on attorney fees in workers’ compensation claim cases.

Despite the rate rollback, Florida businesses still have strong incentives to actively manage the risks of employee injury, maintain a safety focus and OSHA compliance culture and actively control the cost of claims, should they occur. Take steps today to protect your business and control your experience mod from rising claim costs and take action to keep employees focused on job site safety and not taking unnecessary risks.  Call us to learn more.

Employment Poster, Minimum Wage, Posters, Wage and Hour

2018 Florida Minimum Wage Poster released

On October 13, 2017, the Florida Department of Economic Opportunity announced that the 2018 Florida minimum wage will be increased to $8.25 per hour, effective January 1, 2018. The agency is mandated to calculate a minimum wage rate each year based on the percentage increase in the federal Consumer Price Index in the South Region for the 12-month period prior to September 1, 2017. Update your poster for free from the Florida DEO website, or click here and download the 2018 minimum wage poster. All Florida employers are required to display the state-mandated minimum wage poster in a conspicuous manner for employees.

Want to know more about what workplace posters need to be displayed (federal and state) and how your company can save money by downloading all your mandated posters for free?  Our next blog will show you how to locate these resources for Florida employers.

1095C form, Affordable Care Act, IRS

Increasing Penalties for Non-compliance with Obamacare in 2018

Today, President Trump signed an Executive Order that ended the Affordable Care Act’s (ACA) cost-sharing reduction payments to insurance companies.  The payments were added by President Obama to entice the insurance companies to add policies to the federal and state exchanges.  Since Congress did not appropriate funds for the CSR payments (estimated at $7 billion annually), the White House stated that it cannot lawfully make the CSR payments any longer.   This does not affect the tax credits individuals receive through the Healthcare Exchange, but will affect the profitability of the insurance carriers offering Exchange policies.  The ACA may be falling apart, but it is still the law of the land for employers.

In mid-September Congress came back into session, and was unsuccessful in attempts to repeal and replace Obamacare.  President Trump then issued an Executive Order directing agencies to minimize the ACA regulatory burden, but only Congress can repeal the ACA.  So, businesses are left with a continued obligation to comply with the Affordable Care Act, or face escalating penalties.  Each year, the penalties for failing to comply with the ACA’s employer shared responsibility provision (“pay or play”) keep escalating.

An applicable large employer (ALE) is an employer that has at least 50 full-time employees, including full-time equivalents (FTEs).  An ALE will owe penalties to the IRS for the calendar year 2017 if it fails to offer group health insurance to employees, or offers group health insurance that does not meet the ACA requirements of affordability or minimum value.  Read the IRS Q & A Section on Shared Responsibility.

Penalty Option 1 – An ALE does not offer group health insurance to at least 95% of full-time employees (and their dependents) and at least 1 employee receives a premium tax credit to purchase an individual policy on the federal Health Insurance Marketplace.  The employer pays a penalty of $2,260 per full-time employee, minus any credits available to the employer.

Penalty Option 2 – An ALE offers coverage to at least 95% of its full-time employees (and their dependents), but employees are not offered coverage that is affordable or does not meet the minimum value requirements, and at least one full-time employee receives a premium tax credit to purchase individual coverage through the federal Health Insurance Marketplace.  The employer pays a penalty of $3,390 for each full-time employee that received a premium tax credit.

In addition, ALE’s have mandatory reporting requirements.  Applicable large employers (ALEs) will be required to file Forms 1094-C and 1095-C with the IRS no later than February 28, 2018 (or April 2, 2018 if filing electronically) and ALEs will be required to furnish a Form 1095-C to all full-time employee by January 31, 2018.

Consultstu LLC provides fractional HR services to small/mid businesses that lower operational costs, improve business processes and maintain compliance. We deliver customized HR and safety 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

 

HR Compliance, Injury Statistics, OSHA, Record Keeping, Safety

How to Submit OSHA 300A Summary Data to ITA

Who Needs to Do This?

Establishments with 250 or more employees that are currently required to keep OSHA injury and illness records, and establishments with 20-249 employees that are classified in certain industries with historically high rates of occupational injuries and illnesses.

When Must This Be Done?

By December 1, 2017.

 

  1. Go to the Injury Tracking Application website (ITA)
  2. Create an account and log in.
  3. Create a separate, uniquely-named establishment for each business location that maintains OSHA injury logging.  Remember, OSHA 300 logs are generally maintained for each individual business location.
  4. You will need your company’s NAICS code!  Not only is it needed to register with and report to ITA, but it can also identify whether a company with fewer than 250 employees needs to submit ITA summary data at all.  If you have not determined your appropriate NAICS code, let us know and we can help.
  5. Pull your OSHA 300A Summary Injury Log from 2016, so you can add this data and create a CSV file of summary data to upload.  If you have multiple establishments, you can upload separate CSV files or compile a single file with multiple establishment summaries.
  6. To see what data fields are needed to create the summary, click here.
  7. Enter the headers and data into an Excel spreadsheet.  Click link to see a sample summary file for a single establishment, or for a multiple establishment sample.
  8. Be careful with commas!  Do not use commas at all in numeric fields.  For example, total employee hours should be: 11550, not 11,500.   If you must use a comma in a text field, that ENTIRE field must be contained inside quotation marks, or the upload will not be successful.  For example, the following company name should be entered into Excel as: “ConsultStu, LLC”.
  9. Convert your Excel spreadsheet to CSV format: File / Export / Change File Type / CSV (Comma delimited) / Save As / specify a filename and location.
  10. Upload your CSV file into the ITA system.  Click the “Upload a Batch File” button on the Injury Tracking Application Home screen in the For Batch Data Transmission section.  Click “Choose File,” and navigate to select the CSV file you created.  Check the box next to “agree to the terms and conditions” section, and click the “Upload” button.  You should receive an on-screen confirmation message once your file is received.  It may take a while for the system to process your upload.
  11. You may review and edit information after the upload.  Click on the “View Establishment List” button on the ITA home screen.  Find your establishment from the drop-down menu and then click on the name field.  Edit the data and then click the save button.
  12. A list of “Frequently Asked Questions” is on the OSHA ITA Recordkeeping.
Company Culture, Employee Handbook, Hiring, Onboarding, Recruiting

5 Steps to Start Building your Company Culture

Every business develops its culture whether intentionally or unintentionally – and it goes without saying that company culture has a lot to do with what type of employees that are attracted to your business, their job satisfaction levels and how well they will satisfy your customers. If your company is not deliberating working on developing and strengthening its company culture, you are missing a golden opportunity to engage with employees in a deliberate manner in order to drive higher results. Leadership certainly sets the tone on culture and supports it financially, but your human resources practices (beyond compliance and cost containment) can be a primary driver of culture and employee engagement. A Harvard study examined businesses that made company culture a key aspect of their business strategy and determined that those companies that focused on culture achieved:

  • 4 times the revenue growth
  • Higher profits (climbed 750% greater)
  • Doubling of customer satisfaction
  • Reduced turnover (by as much as 34%)

HR can develop and implement employee-centric practices for recruiting, onboarding, training programs, performance feedback and employee benefits that connect with your workforce. Here are 5 steps to start your new focus on developing a deliberate company culture.

  1. What about your product or service gets employees inspired? Not what you do, but the impact of the work you do. Write it down, and share with employees. Add this message to your recruiting and employee messages.
  2. Are company values prominently displayed for employees? in the Employee Handbook? posted in the office? If you do not have a mission statement and a vision, work on developing them.
  3. What activities does the company do (or support) that support these values? Identify activities and events that visibly show support for your company mission so that employees can also rally around them.
  4. Add these values to your recruiting list – and hire employees that display support for these value. Also, develop a structured onboarding process that will teach new employees about the company culture, values and behaviors that are necessary to support the culture. For example, if teamwork is a key value, how are employees expected to be good team members – are these actions reinforced and rewarded?  How can you use behavioral questions to learn more about applicant’s past support and experience with teams.
  5. Communicate company values often and make sure employees know what your company is all about, the achievement goals and how each employee can connect and support the goals and objectives.

It’s never too late to start, even if your company has been in business for years.  Can you use company culture as a strategic advantage against competitors?  What type of employees do you want to attract – and why should they come to join your team? Once you have your vision for culture and determine your commitment to it (including proper resourcing and willingness to role model these behaviors) let human resources help you create a roadmap to implement impactful actions that support your desired company culture. If you are not sure about your existing culture, consider an employee opinion survey to determine how employees currently view the company and if company activities are supporting the desired company culture.  Our next blog post will focus on creating an onboarding process that reinforces your company culture.

Florida rules, General HR Questions, New Hire, Record Keeping

How to set up online New Hire Reporting in Florida

All Florida employers are required to report new hire information to the State of Florida. Online reporting is faster, easier, free and reduces the risk of error or unreadable information on paper-based forms.  Here is how to set it up:

  1. Go to the New Hire Reporting website.
  2. Click the “register” button
  3. Click on the “employer” button
  4. Multistate employers or employers with one or more subsidiary, location, or branch can save time and resources by consolidating new hire reporting into one central location. centralization of new hire reporting at the corporate office is recommended, using the multistate reporting method if applicable. For more information about multi-state reporting, click here.
  5. Enter your company information, including FEIN, company name, company email address, Reemployment Assistance number and select a password. Also, add all the contact information for the primary point of contact for handling unemployment claims.
  6. New businesses that do not have a reemployment assistance number, you will need to register with the Department of Revenue. Existing companies can find this number on the last unemployment claim or wage audit statement.
  7. Mark the “accept” button and click “register”
  8. Follow the instructions for confirming your account
  9. Use the “login” function to access your new account
  10. Employers having trouble can 1-888-854-4791, for assistance during normal business hours.

To report your new hires, you will need the new employee’s social security number, name, date of hire and address. Terminations can also be reported in the system.  Reporting termination is mandatory when the employee was subject to an Income Withholding Order for child support.

EEO-1 Form, EEOC, Executive Order, Payroll

EEOC Ditches Plan to Require Wage Data on the EEO-1 Form

The U.S. Equal Employment Opportunity Commission (EEOC) recently announced that the upcoming EEO-1 reporting form will not contain pay data collection information – confirming that the Trump Administration was ditching plans developed by the Obama Administration to expand the data collected on the EEO-1 form by adding a requirement to report aggregate W-2 income by sex, race, ethnicity, and job group.

On August 29, 2017, the EEOC issued a news release that it was halting plans for the change and instead employers covered by the EEO-1 rules should comply with the March 2018 EEO-1 reporting deadline by using the previously approved EEO-1 form (no pay data included).  The preferred method for submitting EEO-1 data is through the EEO-1 Online Filing System.

What companies are required to file the EEO-1 form?

  1. Private employers with 100 or more employees (or fewer than 100 employees if the company is owned by or corporately affiliated with another company and the entire enterprise employs a total of 100 or more employees); and
  2. Federal contractors (private employers) subject to Executive Order 11246 who have 50 or more employees and (a) are prime contractors or first-tier subcontractors and have a contract, subcontract, or purchase order amounting to $50,000 or more; or (2) serve as a depository of government funds in any amount; or (3) are a financial institution which is an issuing and paying agent for U.S. Savings Bonds and Notes.

 

Exempt Employee, Fair Labor Standards Act, Payroll, Salaried employees, Wage and Hour

Is a Company required to pay employees for weather closings?

Last Saturday and Sunday, Hurricane Irma stormed its way across Florida closing businesses, forcing evacuations and crashing power lines. Almost all businesses were closed Friday through Tuesday, and some even longer if power was lost. What are the rules for paying employees when a company is forced to close due to severe weather?

The answer depends on some technical wage and hour regulations implementing the Fair Labor Standards Act (FLSA).  When an employee misses work due to bad weather, the rules are different depending on whether the employee is classified as exempt or non-exempt.  A non-exempt employee is generally paid on an hourly basis, and they do not need to be paid unless they are working.  So, non-exempt employees are not required to be paid for weather closing days.  The story is different for exempt employees.  They are paid a salary (and also meet the required “duties” rules) and generally must be paid their full salary amount if they perform any work during the work week.  So, if a salaried employee worked at all during the week, they must be paid their full salary, even if the employer closes the business for bad weather.  No deductions should be made from the salaried employee’s pay. There are no Florida state laws that alter these federal rules.

What if the business is open, but an employee cannot come to work due to weather? Non-exempt employees are only paid if they work. A salaried exempt employee who does not come to work may have their salary docked for the missed day (as long as no work was done on that day).  An employer is permitted to make a deduction from the pay of an exempt employee when they are absent from work for one or more full days for personal reasons other than sickness or disability.  If the exempt employee is making phone calls, monitoring emails and/or performing other work remotely, the employer is not permitted to make the salary deduction.

Can a company require a salaried exempt employee to use vacation or PTO days to cover the bad weather days?  Yes, according to the Wage and Hour regulators.  They stated that since the FLSA does not require employee provided vacation or PTO time it is permissible for a company to substitute or reduce the accrued leave in the plan for the time an employee is absent from work, even if it is less than a full day, without affecting the salary basis of payment. However, the employee must still receive an amount equal to the employee’s guaranteed salary.  So, if the salaried employee does not have sufficient vacation or PTO to cover the bad weather days, then the employer can not reduce the employee’s pay.

Consultstu LLC provides fractional HR services to small/mid businesses that lower operational costs, improve business processes and maintain compliance. We deliver customized HR and safety 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

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