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Lott, an HR practitioner dedicated to the “rights of management,” is known for his entertaining yet informative approach. His remarks came during his annual “Please Sue Me” session at the Society for Human Resource Management Conference and Exposition held recently in San Diego. Today, we feature Lott’s tips for wage and hour issues.
Wage and Hour Audit
Lott recommends a quick wage and hour audit for every employer. Ask the following questions, he says:
- Are you sure that your exempt salaried employees qualify for the exemption? Exempt and nonexempt classifications are determined by job duties, not by how you pay them.
- Are you paying nonexempt employees overtime wages equal to 1½ times their regular hourly wage? This is the federal requirement; your state may require even more, Lott notes.
- Are all your nonexempt employees recording all hours actually worked? Have them acknowledge this statement: “When you sign the timecard you are agreeing it’s an accurate reflection of the hours you have worked.”
- Are employees taking lunches at their desks or in their work areas? If they do any work during lunch, including answering the phone, they have to be paid.
- Are exempt employees docked for hours not worked within a workday? Don’t treat exempt employees like nonexempt employees, says Lott. In most cases, this type of docking jeopardizes the exemption.
- Are you granting “comp time” in lieu of overtime? In the private sector, “comp time” is likely a problem. Check with local legal counsel to remain safe, Lott suggests.
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Think Like Outsiders Think!
Lott recommends that managers and supervisors use the “60 Minutes/YouTube” system to police what they say and do. The system is simple: Ask yourself, would you like what you say to be aired on television on “60 Minutes”? (If you are under 30, he says, think would you like to see this action on “YouTube.”) Try to imagine your boss, your spouse, your parents, your children watching.
Handbook Review
Lott finds many problems with employee handbooks. He especially recommends that HR managers review the following sections of their handbooks:
- Probationary period. Whatever the name—get rid of it! (He adds that one company he knows calls it “comfort time.”) With a probationary period, he says, you risk negating your at-will status. A typical problem with probationary periods is that the manager comes to HR on day 89 of the 90-day probation period and says, “I need to fire the person.” But, says Lott, invariably, there’s no documentation, and it’s actually day 92. What you really want, he says, is to eliminate the probationary period. Then, he says, “Your employees are on probation forever.”
- Dating. “Don’t try to have a no dating policy,” Lott says. “It’s unenforceable.” It’s very strange, he finds, that at most companies you can supervise your best friend or your ex-spouse, but not someone you are dating. A better approach is to say this: Any relationship, on or off the job, that affects your ability to do your job or our ability to run our business may be a valid reason for discipline.
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- Attitude. You want something in your handbook about behavior, he says, because you may have to discipline on that basis. But don’t use the word “attitude,” he says. Take it to behavior with wording like this:
Maintain positive work atmosphere by acting and communicating in a manner so that you get along with customers, clients, co-workers, and management.
- PTO. Lott recommends moving to a Paid Time Off system. “Get out of the babysitting business of counting sick leave, attendance points, and demerits,” he says.
In tomorrow’s Advisor, more of Lott’s “Please Sue Me” advice, and an introduction to an extraordinary all-in-one HR resource.
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