How many of your managers are wandering around with "Please Sue Me" placards on their backs? Probably quite a few, says Hunter Lott. Yesterday’s Advisor covered his tips for a variety of HR compliance challenges. Today, we’ll get his tips on wage and hour issues, and take a look at a unique program just for small HR departments.
Lott is a consultant who specializes in helping small businesses cope with HR regulations and compliance. His suggestions came during one of his "Please Sue Me" sessions at a recent Society for Human Resource Management convention.
Mini-Audit for Wage and Hour
Lott recommends that employers answer at least these questions during a mini-audit of wage and hours practices:
Are you sure that your exempt salaried employees qualify for the exemption? Misclassification mistakes are easy to make and expensive to fix.
Are you paying nonexempt employees overtime wages equal to one and one-half times their regular rate of pay? Remember that the "regular rate" may be more than the hourly rate if you pay certain bonuses, or shift differentials.
Are all your nonexempt employees recording all hours actually worked? Don’t let them "volunteer" to work off the clock.
Are employees taking lunches at their desk or in their work area? "If they answer the phone or do other work, that’s not a lunch break," Lott notes.
Are exempt employees docked for hours not worked within a workday? "Don’t treat exempt like nonexempt," says Lott.
Are you granting "comp time" in lieu of overtime? "In the private sector, ‘comp time’ may be a problem. Check with local legal counsel to remain safe," Lott says.
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Do you have a system that auto-deducts for lunch? This is unwise since people invariably work part of lunch from time to time, answering phones or doing some other compensable work.
Are you refusing to pay unauthorized overtime? "It’s one of the few absolutes in HR," says Lott. "You have to pay the overtime—authorized or not—if it’s worked. You can fire for people for working unauthorized overtime," Lott notes, "but you have to pay it."
Are your exempt employees who are on furlough checking phone messages and carrying a Blackberry®? "If you put exempts on furlough," says Lott, "shut off their e-mail and computer access."
Wage and hour hassles—just one of what, a dozen challenges hitting your desk daily? How about those intermittent leave headaches, accommodation requests, or attendance problems? Let’s face it, in HR, if it’s not one thing, it’s another. And in a small department, it’s just that much tougher.
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Explanation of how HR supports organizational goals. This section explains how to probe for what your top management really wants, and how to build credibility in your ability to deliver it.- Overview of compliance responsibilities, through a really useful, 2-page chart of 21 separate laws that HR needs to comply with. These range from the well-known Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA) to lesser-known, but equally critical, rules such as Executive Order 11246. Also included are federal and state posting requirements. (Proper postings are among the first things a visiting inspector looks for … especially now that the minimum wage has been changing repeatedly.)
- Training guidelines. No matter the size of your company, expect to do training. Some of it is required by law. Some of it is just good business sense. Managing an HR Department of One walks you through how to train efficiently and effectively, for the least time and money.
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