The Business of Having Employees

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1 The Business of Having Employees Practical Human Resources Information For Businesses and How To Manage The Future Landscape Presented By: Steven Sweeney, President NEMR Total HR

2 Background Information President of a HRO (Human Resources Outsourcing) firm 16 years in HR industry Client employees in 11 states Firm assists clients and employees with daily employee relations, compliance issues, vendor consolidation and total employer offering Founding partner of licensed insurance agency Licensed insurance producer since 2002 Offices in NJ & PA All aspects of employee-related benefits Featured speaker Provides expert presentations on Human Resources and various employee related topics to business and industry groups

3 Most Days With Employees

4 Discussion Points Need to Know! Need to Watch! Employee Onboarding Paid Sick Leave OSHA & Drug Testing ACA Provisions Anti-Harassment Pay Equity Employee Handbook Updates E-Verify FLSA Updates How To Handle! In-House Consulting Model Outsourcing Model Handouts Restrictive Covenants Small Business & PEO

5 Human Resources isn t a thing we do it s the thing that runs our business. -Steve Wynn

6 How Complicated Could It Be?!?

7 Sample of Federal & State Agencies That Regulate Employment Department of Labor (DOL) Department of Justice / Civil Rights (DOJ) Occupational Safety & Health Administration (OSHA) Employee Benefits Security Administration (EBSA) Department of Health & Human Services (DHS) Equal Employment Opportunity Commission (EEOC) National Labor Relations Board (NLRB) Workers Compensation Bureau Department of Banking & Insurance And many more (based on location and industry )

8 Need To Know! Employee Orientation & Onboarding Critical Items Regulatory Paperwork Best Practices Establish Timeframes Preparation Reference Checks Background Checks Behavioral Assessments Offer Letter Immersion & Buddy System Office Swag Recent survey's have shown 75% of new hires say training during the first week is most important to them. 90% of employees decide whether they will stay with a company or leave within the first 6 months. *Data from recent Bamboo HR studies.

9 Why?

10 Need To Know! OSHA & Post-Accident Drug Testing Critical Knowledge OSHA interpretation of anti-retaliation provision's changing the landscape for employers who conduct post accident drug testing New Presidential administration may change current opinion of these rules, but this is an unknown OSHA interpretation is law of the land at the moment Best Practice Limit post-accident testing to situations where drug use likely contributed to the accident Have reasonable certainty a drug test can accurately show impairment caused by the drugs use Only test when drug use could have been causal factor in accident i.e. Drug presence in persons system vs. drug preventing the person from working safely

11 Need To Know! Anti-Harassment / Bullying Critical Items More important now than ever to educate your workforce Written policy Non-Retaliatory provision Reporting mechanism Best Practices 2 assigned personnel for reporting purposes Training 2x s per year with live trainers (employees & supervisors) Clear examples of prohibited conduct Survey s Hotline

12 Need To Know! Employee Handbook Updates Critical Items Social media policies Background checks Violation reporting Employer size Best Practices Review current handbook Be aware of continuous changes Update as soon as administratively feasible NLRB v. T-Mobile USA found several workplace rules were unlawful, including a rule about maintaining a positive work environment. Obtain written or digital signature of acknowledgement of understanding and receipt

13 Need To Watch! Paid Sick Leave What is happening currently? Federal sick leave program has been in place since 1993 for employers of specific sizes Certain states have policies that govern programs Specific cities within states are now adopting measures to provide these benefits Where are we headed? Look for more major metro cities to enact these programs Federal programs have been discussed to make the current law more broad in scope New laws are targeting employers of all sizes

14 Need To Watch! Affordable Care Act (ACA) Provisions What is happening currently Government is in turmoil regarding this legislation Obamacare is the law of the land Challenges with insurers Some states are down to single insurers, some states have none at all in parts (Tennessee) Where are we headed? Full repeal was unlikely Repeal and Replace effectively delayed for now Tweaks may happen but not likely to happen soon, dependent largely on administration

15 Need To Watch! Pay Equity Background Organized efforts and legislation on the books have existed for decades Has been building strong support in recent years as women have taken a bigger spotlight in major political positions Legislators are taking up the cause Specifically with high profile cases such as US Women s Soccer and Team USA Hockey Why Hot Now? Effective March 2018, certain employers will have to report a new 2017 EEO-1 report including summary pay data Private employers with 100 or more employees will report summary pay data Federal contractors and subcontractors with employees will continue to report as current Private employers with fewer than 99 employees and Federal contractors and subcontractors with 49 employees or fewer are not currently required to complete the EEO-1

16 Need To Watch! E-Verify Background Voluntary for most employers since 1996 Each employer representative utilizing system must undergo registration process Good practice, but administratively cumbersome Electronic process, but still need to complete paper form Why Hot Now? New Administration is very eager to tackle immigration and Homeland Security Mandatory E-Verify is on the horizon Still administrative things to be worked out for the system Research registration now, gain a comfort level and be ahead of the curve

17 Need To Watch! Fair Labor Standards Act (FLSA) Updates Background Federal law governing exempt and non-exempt employment status Sweeping regulation changes were to take effect in December of 2016 Last minute judicial ruling halted the implementation of the new regulations Why Hot Now? Law will most likely be revised and enacted Examine your current workforce if you didn t prepare in 2016 Pay close attention to the salary thresholds New regulations indicate the $35K range

18 How Do I Handle All Of This? There are a variety of ways to ensure your organization is keeping up with the myriad of federal, state and local laws related to employment. We will briefly examine three of those ways. In-House Consultant Model Outsourcing Model

19 In-House Model Positive Attributes Personnel is on site Corporate culture is more easily influenced* Other duties can be assigned as necessary Negative Attributes All liability and responsibility is assumed by the company Overhead cost Continuing education Workload ratio Supervisory oversight is necessary Vendor management Only know what they know Knowledge is transient *This can be a positive or negative attribute

20 Consulting Model Positive Attributes Specialized knowledge Unbiased advisory Short term commitment Available on as-needed basis Flexibility Negative Attributes More reactive Can be costly Has to be managed with internal resources Project based Transactional

21 Outsourcing Model Positive Attributes Fixed cost for budgeting Continuous counsel Team of specialists Vendor consolidation Complete discovery related to employee items Negative Attributes Perception of less control Off premise Learning curve (client and vendor) Clarity of relationship for staff Intimate knowledge

22 Parting Thoughts To Ponder People are not your most important asset. The right people are. - Jim Collins Time spent on hiring is time well spent. - Robert Half Never hire someone who knows less than you do about what he s (or she s) hired to do. - Malcolm Forbes

23 Questions & Answers Thank you for your time and attention! Steven Sweeney NEMR Total HR 4-A Eves Drive; Suite 108 Marlton, NJ