Small Business Safety Net: April 2013

Tuesday, April 30, 2013

Learn How 1 Document Can Save You Thousands in Fines!

Lisa Kennis-Miller is the Founder and President of HR Rescue Resources, LLC, a human resources consulting firm for small to medium sized companies. Follow her on Facebook. For $50 OFF a 1 hour consultation or to join our mailing list, please visit www.HRRescueResources.com

Shockingly, many small business owners dive right into their everyday duties without doing their homework on what is required in the back office.

What I mean is, most entrepreneurs don't know (and some don't care) that, there are employment laws that come with having employees (no matter how few).

Consider this your warning! You never know who will show up on your doorstep wanting to audit your files and slap you with hellacious fines. Small business owners are often the targets of surprise audits; and it is no wonder!

Many employers do not know what an I-9 Form is; let alone, that one is required by law for each employee hired since 1986.

I speak to business owners on a regular basis and only about 10% of them are knowledgeable about Form I-9 and less than 1% know about E-Verify (the electronic version of I-9). So, allow me to give you a quick and thorough education - and save you THOUSAND$$ in potential fines for violations in the process...

The Immigration Reform and Control Act (IRCA) of 1986 requires all employers to verify newly hired employees are eligible to work in the United States. The employee must present documents verifying identity and employment authorization to the employer at the time of hire, in accordance with the List of Acceptable Documents on the last page of Form I-9.

The information has to be documented on the government provided, I-9 Form or in the E-Verify system. The entire form has to be completed on the first day worked, but no later than the third day worked.

There are also record-retention requirements. The I-9 has to be kept in a separate file (from the personnel file) and be retained after the employee leaves - for three years after the hire date or one year after the termination date; whichever is later.

Participation in E-Verify is voluntary for most businesses, but some companies are required by state law or federal regulation to use it.

Failure to comply with provisions of Form I-9 can have severe financial, legal, and PR risks. Most employers are not aware they have a problem until a government agency shows up for an audit. Non-compliance, whether intentional or inadvertent, has severe consequences inflicted by the Department of Homeland Security (DHS).

Some Fines You Could Face:

Failure to properly complete, retain, or make I-9 Forms available for inspection = $100 to $1100 per form
Knowingly hiring or continuing to employ unauthorized workers = $250 to $11,000 per employee
Employers engaging in a pattern or practice of unauthorized behavior = $3000 per employee and/or 6 months of imprisonment

Full instructions are included with the form in the link below.

A newly revised form I-9 was rolled out on March 8, 2013. This new version is easier to read and supposedly more user friendly. It is also 9 pages, whereas the older form was 3 pages. The older version of the form is only valid until May 7, 2013.

Remember, a few minutes to comply with regulations can save your company unwarranted fines, legal fees, and unwanted press if you get the knock at your door.

Tuesday, April 9, 2013

Are You the Reason Your Employees Are Failing to Perform?

Lisa Kennis-Miller is the Founder and President of HR Rescue Resources, LLC, a human resources consulting firm for small to medium sized companies. Follow her on Facebook. For $50 OFF a 1 hour consultation or to join our mailing list, please visit www.HRRescueResources.com

Whether you are a three person show or a multi-location organization, properly written & executed job descriptions will prove their worth time and again.

You are the owner of a start-up and have 'had it up to here' with Joey because he just isn't doing the job the way you want him to do it; OR Susie isn't demonstrating all of the characteristics that you think a supervisor should have - - and today is the day you are letting her go! Sound familiar??

Well, hold on just a minute... let's back up and ask a key question to make sure you have done your job as the owner/manager to provide the tools necessary for your people to succeed at their jobs.

Did you provide them with a complete job description during the hiring process? And again on their first day of employment? And again upon their annual review, with changes made (if necessary)?

Employee job descriptions are written statements (usually several pages) that describe the duties, responsibilities, required qualifications, education, FLSA exemption status, and reporting relationships of a particular job. Employee job descriptions are based on objective information obtained through job analysis, an understanding of the competencies and skills required to accomplish needed tasks, and the needs of the organization to produce work. It is also something that may evolve over time and needs updated as the job changes.

Employee job descriptions clearly identify and spell out the responsibilities of a specific job. They also include information about working conditions, tools, equipment used, knowledge and skills needed, physical demands, and relationships with other positions.

Effectively developed, employee job descriptions are communication tools that are significant in your organization's success. Poorly written employee job descriptions, on the other hand, add to workplace confusion, hurt communication, and make people feel as if they don't know what is expected from them.

Did you know that having accurately written, high quality job descriptions can also protect your company legally?
HINT: Saves you $$$$

If an employee is terminated for poor performance, an accurate, complete, and up-to-date job description will help the organization defend its decision

Job descriptions MUST have accurate and inclusive physical requirements/demands of the position to comply with the Americans with Disabilities Act (ADA) – they are often requested from doctors to determine if an employee can return to work after an illness, surgery, or injury

Well-developed, accurate job descriptions may also prove useful in providing a defense against charges of employment discrimination beyond the recruiting process

After completing a thorough job analysis, that will determine if your employee is exempt or non-exempt; make certain to label it on their job description. [Violations of the Fair Labor Standards Act (FLSA) are VERY common in this area and come with HEFTY fines!]

Remember, Employee job descriptions set clear expectations for what you expect from people. According to Ferdinand Fournies in Why Don't Employees Do What They're Supposed to Do and What To Do About It, this is the first place to look if people aren't doing what you want them to do. He says you need to make certain that they clearly understand your expectations. This understanding starts with the employee job description.