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Rick Rossignol

Paying Attention to Payroll: New Supreme Court Overtime Ruling

Posted by & filed under BLOG, Wage and Hour Compliance.

Have you turned a blind eye to how you calculate your employees’ overtime or additional compensation? On March 5, 2018, the California Supreme Court ruled on how employers are required to calculate overtime, specifically in regard to flat-sum bonuses. RTR Consulting gives you the details about the new overtime ruling and what it means for your business.

 

A Look at the Law

 

According to California law, non-exempt employees are required to receive overtime. Rather than the overtime being based on the employee’s normal hourly pay, it must be based on what is called their “regular rate of pay.” The State of California Department of Industrial Relations (DIR) defines this term as, “…the compensation you normally earn for the work you perform. The regular rate of pay includes a number of different kinds of remuneration, such as hourly earnings, and commissions.”

 

Examining a Specific Case

 

Alvarado v. Dart Container Corp. of California is a case that demonstrates an employer using the formula incorrectly to calculate its employees’ overtime compensation. Alvarado argued that overtime is calculated differently to comply with the state’s standards. The California Supreme Court ruled in his favor because the fixed amount calculated was not relevant to the number of overtime hours worked.

 

For non-exempt employees, California now requires an employer to calculate overtime with a different equation. The DIR provides various formulas on their website to help employees and employers calculate their correct “regular rate of pay” based on their specific situation and wages. The Supreme Court’s ruling may further affect how overtime is calculated in California, which is why it is crucial to review your payment plan if you offer additional compensation to employees.

 

The Real Costs

 

There are costs associated with inappropriately handling employee pay. One of the most common consequences is a lawsuit, which is expensive even in victories. They can also deteriorate employee morale and retention, adding more complications to running your business and retaining employees. It can be difficult to stay informed on the latest changes in California law when you are focused on trying to successfully manage your company. Your business should not have to budget for making these types of mistakes, especially when it comes to paying your employees fairly under state law.

 

RTR Consulting has more than 20 years devoted to developing effective and efficient Human Resources policies, procedures, and best practices for small to medium-sized businesses. Contact us today to learn more about how to protect your business with changing legislation.

 

Stay tuned for next week’s blog to get a better understanding of the Supreme Court’s new perspective on Fair Labor Standards Act (FLSA) Exemptions.

Are Employee Health and Wellness Programs Worth It?

Posted by & filed under Attract and Retain, BLOG, Human Resources.

When trying to boost employee health, retention, and morale, you may consider adding health and wellness programs to your company. With more and more companies offering competitive benefits packages and wellness program initiatives, is it worth considering them? RTR Consulting discusses the various types of health and wellness programs you can implement to benefit your employees and discusses how they may add value to your company.

 

What types of programs can you implement?

 

There are various programs you can implement to promote employee health and wellness. Depending on the size of your company, you may be limited by what, and how many, programs you can begin. There are inexpensive – and even free – options you can add to enhance employee wellness. Don’t let the word “program” intimidate you or lead you to believe that you will have to develop a lofty budget to show your employees that you care about their health.

 

What are the costs associated with the programs?

 

Inexpensive or free solutions. Encouraging employee health does not have to be elaborate or expensive. It can be as simple as providing employees with a list of healthier options to eat nearby work, coordinating after-work exercise sessions with coworkers, holding walking meetings, or meeting at local farmers’ markets on the weekends. Adding healthier options to the break room doesn’t have to be costly if you replace vending machines with a selection of fruits and vegetables and make them periodically available. You can also do something as simple as exchanging healthy recipes during breaks or having employee workout challenges to keep employee health a priority.

 

Investments in company culture. There are options that cost a little more and will be considered a long-term investment to boost employee health and wellness. These include offering comprehensive, competitive benefits packages where employees have a wider network of options to address their health. You can also look into gym membership discounts or weekly exercise sessions after work hours for your staff. Some companies invest in standing desks or exercise balls for their employees to substitute chairs, benefitting employees who work 9-to-5 jobs that require sitting for long periods of time. This can be another costly endeavor depending on how large your staff is but may be worth looking into depending on your budget.

 

How do they add value to your company?

 

When potential candidates are searching for jobs, one of their considerations may be company culture. Though this may not carry the utmost importance for every candidate, it can be an important factor if an individual has other job offers on the table. Health and wellness programs can add value to your company because improving health has become a crucial point of discussion in our society. With more companies paying attention to their employees’ health, offering health and wellness programs or initiatives can give you an advantage. These programs can give employees something to look forward to, boost morale by keeping employees engaged, and promote retention by offering them a little something extra.

 

RTR Consulting has more than 20 years devoted to developing effective and efficient Human Resources policies, procedures, and best practices for small to medium-sized businesses. Contact us today to learn more about if incorporating health and wellness programs is beneficial for your business.

Why Employer Branding is Essential to Attract and Retain Talent

Posted by & filed under Attract and Retain, BLOG.

Part of an employee’s decision to work with your company can include considering your company culture and branding. What is branding from a workplace standpoint? Branding is your company’s story, experience, and qualities that make it stand out. One of the best ways to attract and retain talent in the workplace is to enhance employer branding.

 

How can you enhance employer branding?

 

Employer branding is more than offering lavish benefit packages and weekly company events after hours. The heart of branding is found in culture, experience, and the way employees are treated at your company. Not all companies can afford to go above and beyond to compete with larger companies, but you don’t need a million-dollar net worth to enhance employer branding. It can easily be done in the way you promote your company culture and share your employee experience with potential and current candidates. What values does your company add to an employee’s work experience? Adding a personal touch to demonstrate how much your company cares can easily create value for your brand.

 

How can branding promote employee attraction and retention?

 

Technology and social media make it effortless to share information with one another. Employees can find information about your company, reviews left by former employees or customers, and any other public information digitally available. You can attract potential employees to your business by creating value in the content you post on your social media profiles as well as the information you choose to put online. Do you openly describe your company in job postings? Or does everything seem like a secret? Transparency is the route to go for attracting the best talent to your business. Show potential employees around the office so they can get a sense of the team environment and culture. If your branding is reflected differently online than it is in the office, then you may want to consider implementing some changes.

 

If you create value to attract new employees, then you must plan on retaining that value to keep your top talent. What can you offer employees? Don’t think materialistically – think culturally. Do you have a collaborative, unique team that gets along well with each other? Do you offer rewarding work experience? Employees can easily pass on jobs that feel draining, unproductive, and different than described online or through the interview process. You do not want to lose employees in a month or even a year’s time because you made promises about your company that you cannot keep. You build a reputation with employee branding; you shouldn’t offer potential and current candidates empty promises that you can easily fall back on.

 

How does your company stack up against competitors?

 

Consider what other companies offer in their workplace and how they attract and retain top talent. Can you offer the same, if not better? You should strive to offer the best for your employees without creating various expenses for your business. True value is earned through respect and personal attention. It does not take much to show potential and current employees that you care about them and what they add to the company.

 

RTR Consulting has more than 20 years devoted to developing effective and efficient Human Resources policies, procedures, and best practices for small to medium-sized businesses. Contact us today to build your custom strategy to enhance top talent at your company.

How to Reduce Bias During Your Hiring Process 

Posted by & filed under BLOG, Human Resources.

 

Hiring employees is one of the most important parts of running your business. Though profit should be one of your priorities, hiring qualified candidates is key. Sometimes people have the habit of including their own biases during the interview process, which can lead to an easy dismissal of an excellent candidate. Even people with the best intentions may not realize they are being biased. RTR Consulting has a few tips to help you reduce bias during your hiring process.  

 

Know what the biases are. You can’t improve your process if you don’t know what the issue is or what to look for. Most biases are a product of gender, educational, and racial differences. All it takes is a perspective shift to realize that just because the candidate does not have the same gender, educational, or racial background as you, does not mean they are not qualified to perform the job duties expected in the role you are looking to fill. Take a moment to put yourself in their shoes to understand why they are interested in this job and would want to become a part of your team. Implementing training, sending out a presentation, or asking hiring managers to attend an informative meeting can be enough to save your company from making biased judgments. 

 

Enhance your internal process. It may sound like a small suggestion, but it may benefit your company more than you think: write better job descriptions. Harvard Business Review cites research that explains how certain words can turn candidates away and prevent them from applying to the job initially. The research indicates that using certain words or phrases can appeal to different genders. For instance, “When job advertisements were constructed to include more masculine than feminine wording, participants received more men within these occupations.” Consider the wording and phrases you use and who they may appeal to. Define the skills, knowledge, and abilities for the position and interview candidates based on these. Interviewing for these skills leads to better-qualified employees. 

 

Invest more time in the interview process. Some companies try to hire immediately to fill an open spot and do not want to waste time interviewing several candidates. This could cost your company more time and money in the long run though. It is crucial to spend more time interviewing quality, diverse candidates to choose the right one and hire a candidate with talent. Talent is what makes your company stand out from the competition. 

 

Rapidly moving through the interview process could lead to hiring the wrong candidate and you could easily find yourself ready to conduct more interviews to replace the new hire. Conduct preliminary phone interviews and include more members in the in-person interview whether you do a panel interview or call the candidate back for a follow-up. Try to obtain as much information about the candidate as possible in the time you have reserved to get to know them better over the phone. 

 

Capitalize on what works. If a process seems to be efficient and your company benefits from it, then you should implement it. Strengthen your internal process by incorporating efficient and effective solutions. Rethink or come up with new strategies to replace the things that are not working well. Ask questions to better understand why something is not working, how it can work better, and why you need to improve in the area. 

 

RTR Consulting has more than 20 years of experience devoted to developing effective and efficient human resources policies, procedures, and best practices for small, start-ups, and medium-sized businesses. Contact us today to build your custom strategy to enhance your hiring process. 

New Immigrant Worker Laws Employers Need to Know About

Posted by & filed under BLOG, Immigration.

 

On January 1, 2018, the Immigrant Worker Protection Act created changes and new requirements for employers. In our last blog, we discussed the importance of updating your employee handbook every year due to new legislation taking effect. This act is a perfect example of that, but we want you to be aware of the new laws and what you need to know. 

 

What is the Immigrant Worker Protection Act? 

 

According to the Department of Industrial Relations (DIR), the Immigrant Worker Protection Act adds some restrictions on employer behavior when immigration enforcement agents show up at an employer’s business or request an employee’s records. Employers are expected to remain compliant with notices received from immigration agencies to inspect I-9 Employment Eligibility Verification Forms and any other confidential employment records. The act also “prohibits employers from reverifying employment eligibility of any current employee at a time or in a manner not required by federal immigration law.” You can review the frequently asked questions here to learn more about the specifics.  

 

Important Documents 

 

The State of California Department of Justice provides details about the prohibitions and requirements for employers here. It can be used as an educational tool and guide to get you in compliance with these new regulations. The DIR also has a notice available for employers to provide their current employees with an announcement of any I-9 inspections. You must have this paperwork on file and use it when the need arises. These documents are designed to enforce compliance and ensure that employers are aware of these important new regulations.  

 

Compliance Fines 

 

There are prices to pay if you do not comply with the new federal regulations. You could be fined up to $10,000 if you choose to ignore the rules or are not aware of them. Ignorance could greatly impact your business – big or small. Ensuring compliance demonstrates your care and concern for your employees. 

 

RTR’s Suggestions 

 

RTR Consulting’s suggestions you be proactive when new legislation and regulations are put into effect. We suggest working with a consulting company that is always informed and up-to-date on the changing landscape of the workplace. We also think it is worth sharing the information company-wide. Depending on the size of your business, you can hold an internal meeting where your employees will become aware of the new changes or send out an informational email with supplemental documents. However you choose to do it, you must update your employees on the information because it affects their rights in the workplace. 

 

RTR Consulting has more than 20 years devoted to developing effective and efficient human resources policies, procedures, and best practices for small, start-ups, and medium-sized businesses. Contact us today to build your strategy to lower your employment costs. 

Why You Need to Update Your Employee Handbook

Posted by & filed under BLOG, Human Resources.

 

To employees, employee handbooks are typically known as those lengthy documents that contain all the company rules and policies. Though your employees may not be reading your employee handbook cover to cover, it is imperative that you update it with the most current information to protect your business. One word could be the difference between a successful business and a lawsuit.

 

Why do you need an employee handbook?

 

An employee handbook protects your company. It spells out your policies and informs employees on specific details about your company. They give your employees a set of rules to follow while at the office. Depending on your business, you may have specific sets of rules and it is crucial that your employees be cognizant of them. Workplace conduct, federal regulations, information about employee benefits and events, and various other topics can be addressed in your handbook.

 

The contents of your handbook are important, and every employee must receive one upon hire. Make sure your employees sign an acknowledgment stating they received the handbook. It is their responsibility to read it and heed its contents.

 

How often should you update it?

 

It is standard to update your employee handbook every year because the workplace is a dynamic environment. There are several factors that influence handbooks, including new legislation and trends in the workplace. Some employers choose to update their handbooks every six months or if an immediate need arises. Annual changes are necessary to include the most recent laws and regulations that affect an employee’s work environment.

 

What are the risks?

 

Simply having a handbook does not exempt you from updating it. Clarity is always key. Any nebulous sections could negatively impact you if an employee were to sue your company. You can’t prevent being sued, but a handbook provides documentation that will benefit you if a lawsuit does begin. Lawsuits can also give your company a negative reputation. Is it worth risking your reputation to neglect to maintain an employee handbook? We don’t think so.

 

You also create disorganization within your company. Your employees will be uninformed about specific information and don’t know where to find it if your company lacks a handbook. You should strive to make your employees feel comfortable by making this information easily available to them.

 

Improve your work environment with RTR Consulting. Contact our human resource experts to learn more about updating your employee handbook today.

Do Your Employee’s Duties or Salary Qualify Them for a Computer Professionals Exemption?

Posted by & filed under BLOG, Human Resources, Outsourcing Human Resources.

You like to run your business with the best team possible and compensate them appropriately. Team members will of necessity include IT and computer professionals or those with relevant skills.

Question: are certain team members “exempt” or “nonexempt” employees according to FLSA (Fair Labor Standards Act) guidelines? Being clear about computer professionals exemptions can save you business costs.

A dilemma?”

Perhaps you have an employee who is considered your “IT pro.” This team member is paid an annual salary in excess of let’s say, $80,000.

The employee:

  • Manages and maintains your software on your company’s system
  • Does troubleshooting, repairs, upgrades, and software installs, etc.

Their special knowledge and skill are appreciated and utilized. What happens when they inform you that per their personal time records they’ve worked an amount of overtime and are therefore entitled to compensation for that unpaid overtime? Yes, in this instance they’re owed for overtime hours because of being misclassified as an exempt employee.

Keep in mind that your employee is already salaried and well-paid. Now you’ve been advised that they’re a “computer professional” who is exempt from overtime pay requirements. The reason: they do not pass the duties test required for a “programmer.”

Clearing things up

The employee in question would not meet the criteria for a Computer Professional Exemption. Unless their job description is within another FLSA exemption, they are entitled to overtime pay.

How so?

Qualifying for the computer employee exemption would require the following:

  • The employee’s compensation is by salary or a fee for service basis at a rate of not less than $455 per week (as of December 1, 2016, $913 per week). Or if they’re paid an hourly rate it cannot be less than $27.63 per hour.
  • The employee is employed as a computer systems analyst, a computer programmer, a software engineer, or another area of skill in the computer/IT field.
  • The employee’s primary duties would consist of any of the following according to Fuse Workforce Management:

1-The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications;

2-The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications;

3-The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or

4-A combination of the aforementioned duties, the performance of which requires the same level of skills.

The Department of Labor (DOL) recognizes exempt duty roles as:

  • An Executive – a supervisor of two or more employees, their primary duty is management, and they provide genuine input into employee hiring, firing, etc.
  • An Administrator – an employee whose main duties provide support to the business including human resource staff, public relations, payroll, accounting, and duties not directly related to company production.
  • A Professional – includes lawyers, physicians, teachers, architects, registered nurses, and other duties that require advanced education or industry-related training, and creative professionals such as writers, journalists, actors, and musicians.

 

An employee who works “with computers” should not be assumed to be exempt from FLSA coverage. They are considered non-exempt unless they invest 51% of their duties in related “programming.”

It would make sense to ask before assuming qualification:

  • Do they manage backup or archives?
  • Do they input data?
  • Do they prepare operation instructions or computer-related diagrams?
  • Do they repair or debug computer/IT equipment?
  • Do the staff a help desk?

These would not typically qualify for FLSA computer exemption.

State laws can differ on what the federal FLSA qualifications call for. Confirm compliance before making assumptions about an employee’s exempt status.

Contact us about human resources information and compliance guidelines including FLSA exemptions to improve your work environment.

Why Now is a Good Time to Implement Your Workforce Plan

Posted by & filed under BLOG, Human Resources.

Plans fail for lack of planning. Whether you believe the statement or not, your perspective can have an impact on your decision to apply workforce planning to your organization.

A workforce plan is your strategy for getting the most from your team.

  • Anticipate what your employees need
  • Assign tasks that maximize individual employee skills
  • Apply resources and training that improves employee productivity and corporate outcomes

Action is everything

Your workforce plan this year or any year is to leverage employee skills, roles, and talent into productive action.

Action Step 1 – Survey your organization and establish context for your plan

Begin your strategy with an all-important “why?”

  • “Why are we implementing a workforce plan?”
  • “Why is our plan important to monthly, quarterly, and annual goals and outcomes?”
  • “Why are we measuring X?”

Your strategy naturally flows out of the fearless survey of your current corporate environment. Objectives can then be established to sharpen the focus of your workforce plan.

Don’t discount the external environment on your plan’s objectives and strategies. Depending on what business you’re in, it’s vital to have fingers on the pulse of local, state, and national challenges and initiatives.

Action Step 2 – Assess your employee team in the context of your plan

  • What is the current profile of your workforce?
  • What skills do they bring to your organization?
  • Where do you need to develop strengths through training?
  • What is the word-on-the-street within your current workforce regarding challenges and the need for improvement?
  • How does your workforce prioritize their contribution of skill to the plan?

Use these questions for starters. Develop additional questions to probe, listen, and develop your workforce plan and strategic agenda.

Action Step 3 – Look to the future within the context of your plan

The consistent improvement adds stability to your plans and strategies. Being unafraid to try and fail will help speed your progress.

  • What products and/or services can be rolled-out (appropriate to your plan)?
  • How do improvements impact your current workforce plan?
  • What new technologies and skills will be necessary to implement improvements?
  • When will you train to increase employee skills necessary for new growth?

Action Step 4 – Stand in the “gap” and bring closure

An important step is to accept where you and your team currently are. Owning your present realities will enable you to dig-in and overcome any corporate inertia.

Your workforce plan can energize you and your team to narrow and eventually close the gap. Gap analysis and closure strategies help you set priorities.

Action Step 5 – Evaluate and embrace room-for-improvement always

Outcomes are not consistently positive with workforce planning. But you and your employees are in a prime position to learn from every outcome.

  • Be unafraid to fail.
  • Evaluate everything! Leave no-stone-unturned.
  • Establish next steps based on your evaluations. Leverage what you uncover to make necessary adjustments to the plan.

Plan to succeed and you’ll at least be further than you would be had you not planned. Apply these steps or allow them to establish your own context for improving your workforce.

Contact us about human resources information and guidelines to improve your work environment including workforce planning.