2016 is here and your business is growing, and so are the number of laws and new complexities that you must face in regards to labor law. We’ve prepared our top 5 HR priority list for small business employers. Get these right and you’re halfway there!
Time Off Accruals
Sick time is mandated by law. By now, you should have set up a sick time policy that includes at least 24 hours sick time for employees that starts accruing the day they are hired. If you provide vacation, it must be an earned benefit that cannot be use it or lose it. It should be well written and detailed so employees understand it completely.
Timekeeping and Meal Break Activity
Hourly employees are required to track their time in, out and for meal breaks. Employers are required to record and retain employee’s hours, and report them on their pay stub. Meal breaks are mandated over 5 hours unless 6 hours will complete the day. Invest in a good electronic timekeeping system and require that all employees utilize it.
Salaried employees who are exempt from overtime rules must must be a manager of 2 or more, be an outside salesperson, or have control over a large portion of your business. Also, as of 2016, they must be paid twice minimum wage, or $41600 annually.
Independent Contractors(IC’s) are just that, independent from your business. They should not be under your control or direction in any way, or receive regular payments from you that are similar to wages. IC’s should also earn revenue from other sources in their field.
Overtime and Other Compensation Issues
Overtime continues to be a complicated issue for many employers. Simply put, employees are required to be paid one and on-half times regular pay for any hours worked over 8 in a day or 40 in a week.
New rules related to piece work, or pay that is a percentage of the job or profit requires that you track all hours employees work, and any non-productive time be paid out at an hourly rate, and be itemized on their pay stub. If you have a payment structure like this, you should consider abandoning it for an hourly plus compensation plan.
This a is just a quick synopsis of some of the most troublesome issues small business employers face. If you need additional info, we’d be happy to assist. Contact is at firstname.lastname@example.org