Top 10 HR IssuesPaychex HR Services Client Seminar

for Managers and Supervisors

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Paychex HR Services | Top 10 HR Issues

Disclaimer

This Paychex seminar is for general information purposes only.

It should not be considered legal advice or interpreted as a legal opinion of any

specific facts or circumstances.

If you require legal or accounting advice or need other professional assistance,

you should consult an attorney or other professional advisor to discuss your

particular facts and circumstances.

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Paychex HR Services | Top 10 HR Issues

Job Descriptions

Forms I-9

Employee Classifications

Payment of Overtime

Hours

Handbook Policies

Workplace Harassment

Family and Medical Leave

Act (FLMA)

Health Care Reform

Employment-at-Will

Anti-Discrimination

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Job Descriptions

HR Issue #1

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Job Descriptions: What Is It?

Job descriptions may assist in:

complying with the Americans with Disabilities Act

aiding in exempt and non-exempt classifications

providing an accurate picture of the job

interviewing and identifying key skills and abilities

setting goals, and

measuring and tracking performance.

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Job Descriptions: Pitfalls to Avoid

Using outdated job descriptions may:

limit your ability to hire the most qualified candidate, and

make it more difficult to conduct performance management tasks.

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Job Descriptions: Reflection Point

1. Do you have job descriptions for all positions?

2. Do you have a specific point in your business

process when you review job descriptions?

3. Are you familiar with the essential functions

of each job?

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Job Descriptions: Take Action Today

Update current job descriptions.

Ensure all required skills and experience necessary for the position are

listed.

Remove skills that are outdated; add new ones as needed.

Dedicate a point to review and update job descriptions.

For example: Any time the duties of the position

change, or when hiring a new person.

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Forms I-9

HR Issue #2

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Forms I-9: What Is It?

Forms I-9:

must be completed to document employee eligibility to

work in the United States

are required by the Immigration Reform and Control Act

(IRCA), and

apply to all employees hired after November 6, 1986.

Note: Some employers are required to use E-Verify.

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Forms I-9: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

require applicants to complete the Form I-9 before hiring

specify which documentation from the list of acceptable documents the

employee must use to complete Form I-9

neglect to complete all sections of Form I-9

fail to re-verify expired documentation, or

inconsistently photocopy documentation.

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Forms I-9: Reflection Point

1. Did you complete a form I-9 for every employee hired after

11/06/86?

2. Do you keep them for three years after the

date of employment, or one year after the

date of termination, whichever is later?

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Forms I-9: Take Action Today

Complete Form I-9 on the first day of the employee’s employment.

Make sure the employee provides proper documentation of identity and

authorization to work within three business days of the date of hire.

Refer to the last page of Form I-9 for a list of acceptable documentation.

• If documentation is unavailable, the employee must produce a receipt showing

that the documentation has been applied for.

• Actual documentation must be provided within 90 days.

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Forms I-9: Take Action Today

Store Form I-9 separate from the employee’s general personnel file or

store electronically.

Keep for three years after the date of employment begins or one year

after the date the person’s employment is terminated, whichever is later.

Use Paychex HR Online, if applicable, to generate reports to include

expired documentation data to assist in the

re-verification process, where applicable.

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Employee Classification

HR Issue #3

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Employee Classification: What Is It?

Employee classification:

is required under the Fair Labor Standards Act (FLSA)

protects workers against unfair employment practices, and

classifies employees as either exempt or non-exempt.

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Employee Classification: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

classify all salaried employees as exempt, or

assign employee classifications based on the job title rather than job

duties and method of payment.

For example: An operations manager does not

automatically qualify for the executive exemption

simply because the position’s title includes the

word “manager.”

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Employee Classification: Reflection Point

1. Could you explain the differences between exempt and

non-exempt classifications to a co-worker or friend?

2. Do you contact legal counsel when a position’s

classification is in question?

3. Do you have a mix of both exempt and

non-exempt positions?

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Employee Classification: Take Action Today

Become more familiar with the two types of classifications (exempt and

non-exempt).

Contact legal counsel whenever a position’s classification is in question.

Be consistent when classifying exemptions.

Where federal and state law conflict, be sure to comply with the

requirement most beneficial to the employee.

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Employee Classification: Take Action Today

Non-exempt employees:

must receive at least minimum wage for the first 40 hours of work

must receive time and one-half their regular rate of pay for all hours

worked over 40 in a workweek, and

typically perform work that is routine with set rules and standards.

Note: State wage laws may vary and offer greater

protection for covered employees.

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Employee Classification: Take Action Today

To be classified as exempt, the employee:

must generally be paid on a salary basis

must receive a minimum salary of at least $455 a week

(where applicable), and

must meet the general duties test of one of the white

collar exemptions.

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Payment for Overtime Hours

HR Issue #4

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Payment for Overtime Hours: What Is It?

Non-exempt employees who work more than 40

hours in a workweek must receive overtime pay at

a rate of at least one and one-half times their

regular rate of pay.

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Employers are required to retain complete

and accurate records, including payment for

overtime hours, for at least three years.

Payment for Overtime Hours: What Is It?

The regular rate of pay must be at least minimum wage and

should include remuneration received during the pay period.

Certain exemptions may apply, including:

pay for expenses incurred on the employer’s behalf

premium pay for hours worked on Saturdays, Sundays, and holidays

discretionary bonuses (a bonus paid to an employee that is not required

due to any contractual obligation)

gifts/payments in the nature of gifts on special occasions, and

holiday, vacation, or sick pay.

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Payment for Overtime Hours: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

average the hours worked between two workweeks when computing overtime pay

exclude non-discretionary bonuses, such as production bonuses, when calculating

the regular rate of pay used to determine the overtime rate

provide “comp time” to non-exempt employees in lieu of

overtime pay

fail to correctly calculate the regular rate of pay for

employees who receive two or more different rates of pay, or

fail to retain complete and accurate records for the

required period of time.

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Payment for Overtime Hours: Reflection Point

Do you have any non-exempt employees who go above and beyond by

volunteering to take work home or start work early?

Do you offer “comp” time?

Do you have non-exempt employees who check their work email over the

weekend or after hours?

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Payment for Overtime Hours: Take Action Today

Become familiar with each type of compensable time worked on the

Department of Labor website.

Consult with legal counsel to ensure your overtime calculation and

payment practices comply with the FLSA.

Include non-discretionary bonuses, such as production

bonuses, when calculating the regular rate of pay used to

determine the overtime rate.

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Handbook Policies

HR Issue #5

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Handbook Policies: What Is It?

Employee handbooks can provide a way to document

and communicate your company policies to employees.

Good communication can help:

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establish basic ground rules for employee conduct

set the tone for interpersonal relations, and

may help employers stay more consistent when

implementing their policies and practices.

Handbook Policies: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

fail to develop handbook policies

have poorly written handbook policies, or

distribute handbook policies that haven’t been reviewed by legal counsel.

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Handbook Policies: Reflection Point

1. Do you have written policies?

2. Have your policies been reviewed by legal counsel? Are the reviewed

periodically for compliance with changing laws?

3. Do you distribute your written policies to every new hire?

4. Do you have a signed Acknowledgement of Policy

Receipt form from all employees?

If you answered “no” to any of these questions, consider

researching and discussing your current HR policies.

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Handbook Policies: Take Action Today

Have legal counsel review your handbook to ensure it does not create an

implied contract of employment.

Implement handbook policies in a consistent manner to avoid potential

discrimination claims.

Remember, despite what is written in your employee handbook, your

actual practice becomes your policy.

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Workplace Harassment

HR Issue #6

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Workplace Harassment: What Is It?

Harassment is a form of discrimination based on a protected

class, and is against the law.

Unlawful harassment may be based on veteran status,

uniform service member status, race, color, religion, sex,

national origin, age, physical or mental disability, genetic

information, or any other protected class at the federal, state,

or local level.

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Workplace Harassment: Pitfalls to Avoid

If an employer fails to include sexual/non-harassment policies in

their handbooks, they may increase their risk of litigation.

Employers also need to be aware of specific state requirements

that may include:

Annual distribution of the company’s sexual harassment

policy and/or written notice to employees, and/or

sexual harassment training for supervisors/managers

and/or employees.

Mandatory postings

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Workplace Harassment: Reflection Point

1. Does your policy state that your company has a zero tolerance policy

when it comes to harassment in the workplace?

2. Does your policy communicate to employees that it is their responsibility

to report any harassment in the workplace, and assure

them they will not be retaliated against because they use

these procedures?

3. Does your policy include procedures for how an

employee can report harassment?

4. Do you require employees to acknowledge that they

have read and understand your policy by signing an

acknowledgement page?

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Workplace Harassment: Reflection Point (cont.)

5. Do you provide non-harassment training for all employees annually?

6. Do you provide additional training for your managers and supervisors?

7. Have your reviewed and incorporated state-specific requirements into

your policy and procedures where applicable?

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Workplace Harassment: Take Action Today

Review and distribute your non-harassment and sexual harassment

policies.

Distribute your non-harassment and sexual harassment policies.

Designate a member of management who is sufficiently trained to be

responsible for responding to harassment claims.

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Family and Medical Leave Act

HR Issue #7

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Family and Medical Leave Act: What Is It?

The Family and Medical Leave Act (FMLA) applies to:

all private employers who employ 50 or more employees for each

working day during 20 or more calendar workweeks (not

necessarily consecutive workweeks) in the current or preceding

calendar year.

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public agencies (including state, local, and federal

employers), as well as public and private elementary and

secondary schools, regardless of the number of

employees.

Family and Medical Leave Act: What Is It?

Qualified reasons for leave include:

for the birth of a child, or adoption or foster care placement

to care for a spouse, child, or parent with a serious health condition

for the employee’s own serious health condition

to tend to certain qualifying exigencies arising out of active military duty,

or

to care for a covered service member with a serious injury or illness.

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Family and Medical Leave Act: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

fail to understand and comply

fail to recognize which laws an employee may be covered under during a

leave.

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Family and Medical Leave Act: Reflection Point

These questions are applicable to organizations that are private employers who employ 50 or more people each working day for at least 20 calendar workweeks, or organizations that are considered a public agency (i.e., state, local,

or federal), or a public or private school.

1. Do you have a compliant policy in your employee handbook?

2. Do you follow appropriate procedures to ensure full compliance?

If you answered “no” to either of these questions, consider researching and discussing your current HR policies.

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Family and Medical Leave Act: Take Action Today

The Department of Labor website has helpful information

to identify employer responsibilities regarding medical- and disability-

related leave requests.

The website also offers information about the interaction between the

ADA and FMLA and provides guidance for managing the relationship

between the ADA and state Workers’ Compensation laws.

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Health Care Reform

HR Issue #8

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Health Care Reform: What Is It?

Important laws:

Patient Protection and Affordable Care Act

Health Care and Education Reconciliation Act

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Health Care Reform: Who Is Affected?

small, mid-size, and large businesses

employers who cover dependents

• dependent child coverage extends to “adult child” dependents up to

age 26

FSA, HSA, and HRA participants

the elderly and sick, and

tax-exempt businesses.

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Health Care Reform: Pitfalls to Avoid

Not fully understanding the provisions of healthcare reform

Not responding to the employer requirements under those provisions

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Health Care Reform: Grandfathered Plans

If you had a plan in place before March 23, 2010, and you didn’t lose your

“grandfathered” status, your plan is exempt from some, but not all

provisions of health care reform. Be aware if your plan is grandfathered, it

may not be exempt from these provisions indefinitely.

You can lose your grandfathered status by making significant changes

that reduce benefits or increase costs, such as increasing the plan

deductibles, co-payments, or co-insurance.

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Health Care Reform: Over-the-Counter Medications

Over-the-counter medications are not reimbursable under HSAs,

FSAs, HRAs, or Archer MSA. There are two exceptions:

insulin, and

any over-the-counter medication prescribed by a physician.

Over-the-counter expenses other than drugs may

continue to be reimbursed without prescriptions.

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Health Care Reform: Preventive Care Coverage

Non-grandfathered group health plans and health insurance

issuers offering group or individual health insurance must

provide coverage for recommended preventive care without any

cost-sharing requirements, as long as services are rendered by

physicians and other health care professionals who participate in

the plan's network.

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Health Care Reform: Form W-2 Reporting Requirement

Employers who filed 250 or more Forms W-2 in the previous tax

year are required to report the value of certain employer-

sponsored health benefits on their employees’ Forms W-2.

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Health Care Reform: Summary of Benefits and

Coverage and Uniform Glossary

Under health care reform, health insurers and group health plans must

provide clear, consistent, and comparable information about health plan

benefits and coverage, so that consumers can easily compare health

plans and choose the coverage that best fits their needs.

Health insurers and group health plans must also provide a uniform

glossary of commonly used health coverage terms.

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Health Care Reform: 90-Day Waiting Period

The 90-day Waiting Period provision mandates that any waiting

period for a group health plan beginning on or after January 1,

2014 cannot exceed 90 days. Failure to comply is subject to a

penalty tax.

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Health Care Reform: Mandatory Insurance Coverage

The individual mandate provision requires that, effective January

1, 2014, most U.S. citizens and legal residents must have

coverage or purchase health insurance or pay a penalty.

The Supreme Court ruled in 2012 that the individual mandate

can be construed as a tax.

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Health Care Reform: FSA Contribution Limit

Employee contributions to medical FSAs are limited to the lesser

of a $2,550 cap for a taxable year or the company maximum.

This maximum is adjusted annually for inflation, beginning in

2015.

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Health Care Reform: Small Business Tax Credit

The following changes were made in 2014:

Small businesses that qualify for the full credit can receive up to 50% of

the employer’s contribution.

Small businesses wishing to take the tax credit must offer their

employees coverage through a SHOP exchange.

The tax credit is available for a two-consecutive-year period

only, beginning January 2, 2014.

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Health Care Reform: Employer Shared Responsibility

Effective January 1, 2015:

Applicable employers with 100 or more full-time employees, including full-

time equivalent employees, may be assessed penalties if they fail to offer

employees and dependents health insurance coverage meeting the

established minimum essential coverage (MEC) requirements

They may also be assessed penalties if they offer such coverage and it is

deemed unaffordable or does not provide minimum value.

Enforcement of this provision for employers with 50-99 full-time

employees has been postponed until January 2016.

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Health Care Reform: Reflection Points

1. How has health care reform affected your business?

2. Does your company have any “grandfathered” plans?

3. Does your company provide coverage for recommended preventive care

without any cost sharing requirements?

4. Did your company file 250 or more Forms W-2 last year?

If so, did your company report the value of

certain employer-sponsored health benefits on

employees’ Forms W-2?

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Health Care Reform: Reflection Points

5. Do your health insurers or group health plans provide clear, consistent,

and comparable information about health plan benefits?

6. Do your employees have access to a “Summary of Benefits and

Coverage” and a uniform glossary of commonly used terms?

7. What is your company’s waiting period for coverage?

How does your company count the number of days?

8. Has your company used the Health Insurance

Marketplace to obtain health insurance or explore

health insurance options?

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Health Care Reform: Take Action Today

Visit our website to get detailed and updated information on health care

reform:

http://www.paychexinsurance.com/healthcarereform/index.aspx

Visit the health care reform website:

https://www.healthcare.gov/

Visit the Health Insurance Marketplace:

https://www.healthcare.gov/marketplace/b/welcome/

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Health Care Reform: Still to Come...

Effective in 2014: health insurance marketplaces

individual insurance requirement

guaranteed issue of health insurance

essential health benefits

90-day waiting period for coverage

Effective after 2014 (2015-2016): employer shared responsibility

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Employment-at-Will

HR Issue #9

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Employment-at-Will: What Is It?

Employment-at-will generally enables the employer and

employee to terminate the employment relationship at any

time without cause or notice.

An employer may not terminate an employee based on the

employee’s membership in any protected class.

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Employment-at-Will: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

underestimate the potential impact a judicial exception may have to the

employment-at-will doctrine, or

fail to use progressive discipline to correct performance and conduct

issues.

Progressive discipline includes a series of warning steps

whereby each warning step results in a consequence that

increases in severity the longer the undesirable behavior

persists.

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Employment-at-Will: Reflection Point

1. Do you communicate the employment-at-will status of the employment

relationship in your employee handbook, and employment

applications, etc.?

2. Do you use progressive discipline to correct performance issues?

3. Do you document disciplinary situations and actions?

4. Do you document conversations with employees and

store them in the employee’s personnel file?

If you answered “no” to any of these questions, consider

researching and discussing your current HR policies.

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Anti-Discrimination

HR Issue #10

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Anti-Discrimination: What Is It?

Title VII of the Civil Rights Act of 1964

Age Discrimination in Employment Act (ADEA)

Americans With Disabilities Act (ADA)

Immigration Reform and Control Act (IRCA)

(includes anti-discrimination provisions)

Uniformed Services Employment and Reemployment

Rights Act (USERRA)

Genetic Information Non-Discrimination

Act (GINA)

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Examples of anti-discrimination laws include, but are not limited to:

Anti-Discrimination: Pitfalls to Avoid

Employers may be at risk for legal violations if they:

fail to take complaints seriously or conduct timely investigations

terminate or reprimand an employee who complains about discrimination

terminate an employee for threatening to go to, or for going to,

the Department of Labor, OSHA, or for filing a complaint of

violation

fail to establish a clear channel for complaints, or

fail to establish written policies that discourage and

enforce anti-discrimination in the workplace.

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Anti-Discrimination: Reflection Point

1. Do you have a written anti-discrimination policy?

2. Do you handle complaints in a consistent manner?

3. Do you take all complaints seriously?

If you answered “no” to any of these questions,

consider researching and discussing your current

HR policies.

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Anti-Discrimination: Take Action Today

Take a proactive stance.

Create and promote a workplace that encourages diversity and steers

clear of discriminatory practices.

Leverage your resources.

(Paychex HR Professional, legal counsel, Equal

Employment Opportunity Commission, or your state human rights

agency)

Be consistent with discipline on anti-discrimination issues.

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Summary

The workplace continues to change. It’s becoming more diverse,

more regulated, and more unpredictable.

The challenges and risks facing employers today have never

been greater.

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Paychex HR Solutions Support

For more information, contact your Paychex HR Professional.

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