GUIDE TO HIRING AND FIRING

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1 GUIDE TO HIRING AND FIRING

2 Introduction Here at Coastal, we are about people. We believe that people are the heartbeat of a company. Yet the logistics behind bringing people into a company and letting them go can be heart-pounding to say the least. We ve developed this guide to highlight important details often overlooked when hiring and firing employees. HIRING Before You Do Anything - Employee Handbook Whether you are just preparing to hire your first employee or you ve been doing this for years, you need an employee handbook, outlining the company culture, expectations, payroll and HR components, resolution plans and more. Although this document is called an Employee Handbook, it will be your guide in the event of a dispute or disciplinary action. It will protect you by giving you something to point back to. It can also act as a template to ensure that you handle every employee relation fairly and in the same manner. Before the Interview - Job Description Before you actually hire someone for a position, take the time to create a thorough and accurate job description. The job description should outline tasks to be performed, how much time will be spent on each task, and how performance will be measured. An accurate job description lets job candidates know exactly what s expected of them and gives the new hire a fair idea of what to do in that job. It will also be necessary during performance reviews, to compare what an employee has accomplished or does daily with what is required of him or her according to the description. 1 COASTALPAYROLL.COM

3 Interview Questions During the interview itself, stay away from questions that could be misconstrued as discriminatory or biased. These could land you in legal hot water. Such questions involve age, marital status, religion, disabilities, and more. Using the job description you wrote for this position as a guide, you can keep the conversation on topic. Ask meaningful questions about skills and experience related to this position. Ask about certain job requirements and how the candidates see themselves fulfilling those requirements. FIRING When it s time to say goodbye to an employee, emotions can run high. Having plans in place before that time comes can help you navigate that process relatively smoothly. Consider the two ways an employee transitions out of a company. They may be terminated (in which case, the employer initiates the separation) or they may leave voluntarily (of their initiation.) The requirements from you as the employer change slightly depending on whether you are firing (terminating) the employer or whether they are leaving voluntarily. Termination Documentation When you terminate an employee, provide the following documentation: DE-39 Form This is always necessary when an employee leaves. This documents exactly under which conditions the employee left and when. 2 COASTALPAYROLL.COM

4 COBRA Continuation Notice and HIPP Notice These documents give them the information they need regarding ongoing health insurance coverage. The Unemployment Pamphlet or Brochure This document is available from your state unemployment office. The legal requirements for when you must provide this document vary by state, but we recommend giving it to them as soon as practically possible. Their Final Paycheck When you terminate an employee, you are required to give them the wages they have earned up until that point the day they leave your office. You need to have that ready before you terminate them. Paycheck Acknowledgement Outlining all earned pay, deductions, reimbursements, etc., this document acts as a safeguard against any potential disputes in the future. Voluntary Documentation When an employee quits or leaves voluntarily, you will need to give them the following: DE-39 Form Even when someone quits, you want to have documentation regarding the circumstances of that separation. COBRA Continuation Notice and HIPP Notice These documents give them the information they need regarding ongoing health insurance coverage. Final Paycheck When an employee quits, you have 72 hours from their last day of work to give them their final paycheck. The sooner you can do this, the easier it is on everyone. When an employee quits, giving you less than 72 hours notice, you have 72 hours to give them their final paycheck. If they give you more than 72 hours, such as two weeks, you need to give them their final paycheck on their last day of work. 3 COASTALPAYROLL.COM

5 Paycheck Acknowledgement This document, delivered with the final paycheck outlines the employee s earnings, deductions, reimbursements, etc and helps protect against potential disputes. This is best reviewed in person, so cut that check as close as you can to the employee s last day of work. Legal Disclaimer: This document is intended for informational purposes only, and does not constitute legal information or advice. This information and all Coastal Payroll materials are provided in consultation with federal and state statutes and do not encompass other regulations that may exist, such as local ordinances. Transmission of documents or information through the Coastal Payroll does not create an attorney-client relationship. If you are seeking legal advice, you are encouraged to consult an attorney. 4 COASTALPAYROLL.COM

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