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What Employers Can Do To Take Control
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What Employers Can Do To Take Control


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  • How many of your companies have been effected by the current economy? How many was the effect good?How many of your business have been hurt by the economy? Do you feel like your company has been under fire?How many of you have felt the effects of the economy personally? I think we all have. Whether we have been stressed about work, worried about family or have our own personal financial stresses with the current economy.In this presentation we are going to discuss some of the factors facing employers today due to the economy and some ways that you can help prevent them from happening and also ways to protect your organization.
  • How many of you have seen little kids play with animals (dogs and cats)?What usually happens? The Child thinks that they are friends and that they are playing together, but the animal is typically scared and getting hurt so eventually growls, bits, scratches or whatever it can to protect itself which in turn hurts/scares the child so the child will stop. I think this picture is awesome. This little boy thinks that he and the dog are a great team and is so excited to be with this dog. Look at the dog. He is in defense mode! He is sticking around for incase it actually is fun or in fear, but his stance says he is ready to bolt at any given moment.
  • Maybe you think claims are common, but it won’t happen to your company because your employees have been with the company for years and they are committed. You have taken care of them in the past, so they will weather the storm through these rough times even if you may not be in compliance.
  • You never know when your employees have decided they have more loyal to the company than the company has been to them, and will file a claim. You can’t afford to be out of compliance, because of the time and money it could cost your company.
  • At ESG we work with varying sizes of companies and all types of industries so we are exposed to a lot of creative ways of compensating employees. Many are industry trends, even if they are not compliant and many are just common misconceptions. What do you think are some of the most common mistakes that employers make with Wage and Hours? There are treats for those who participate. You don’t have to get it right to get a treat, but you do have to participate.(Give out small candy bars for all those that give ideas then go through the bulleted items giving examples of how companies have made these mistakes.) Banking Hours: We don’t offer our employees paid leave, so instead of paying them overtime, we just bank these hours so they can take time off in the future when we aren’t so busy and they can still get paid. Their banked hours is time and a half just like overtime would be. 1099: My employee wanted to be an independent contractor and all the other companies in this industry do it, so I just decided to let my employees decide if they want to be independent contractors or employees. Exempt vs Non-Exempt: Usually we get calls from employees on this. They say that they were given a promotion at work and they made them salaried employees. They were excited at first because they felt like it was a great opportunity to move up in the company but their job duties didn’t change, they just started working more hours and not getting paid for them. Piece Rate: My guy were just wasting the time on the job, so I decided that they should only get paid for work that they do and pay them piece rate. So I don’t track their time.
  • Here are a few ideas to help protect your company.The only area that we are really going to spend much time on is FLSA and Documentation because this is the area that we have seen companies are not sure of. The first and most important thing you need to know to protect your company is to understand and know FLSA laws.FLSA is a Huge topic, so we are going to review some of the more common mistakes employers make and if you are worried that you may have be out of compliance, Contact your HRC and they can answer your questions, and perhaps even do a little mini audit.DocumentationEven if you are doing everything correctly if you have no proof, it becomes the employees word against your word and you may loose a wage claim.CommunicateIf employees feel like their employer is open and honest with them through these rough times and lets them know where they are at, it will help alleviate some of their stress and more committed to the company. Often most employees stress is the unknown or worried that their employee will try to hurt them like the little boy with the puppy.Provide ResourcesThere are EAP services, some financial services, and it may be a good idea to have a resource on different low to now cost options s provided by government agencies for those employees that may need additional help.
  • Entrepreneurial Dilemma – You had a great idea and started a company. To keep growing you have to hire employees. As soon as you hire an employee you become subject to a lot of administrative headache. Our goal is to help you continue to grow your company without the administrative headache. You focus on what you do best – your company! Let us do what we do best – the administrative part of that…In this context – You started your company to make money, but when you hire employees your administrative burden increases. Here’s what you need to do to make sure you can protect the company you worked so hard to create!!Remember – the FLSA is very complex…make sure you have help to understand all of the related issues. We’ve only addressed a few common mistakes employers make when it comes to the FLSA. There is quite a bit more!!ESG can come do a mini-audit for you.Make sure to document – remember the guy who was fired for the drug screen and successfully sued his company because the printer broke and they didn’t have a copy of the result?
  • Transcript

    • 1. In the current economic environment, employees are more likely to fire claims against their employer.   
    • 2.
    • 3.
    • 4. Dwight Schrute on Loyalty
      “Would I ever leave this company? Look, I'm all about loyalty. In fact, I feel like part of what I'm being paid for here is my loyalty. But if there were somewhere else that valued loyalty more highly, I'm going wherever they value loyalty the most.”
      ~ Dwight Schrute: The Office
    • 5. Recent Trend in Claims
      42% increase in Wage Claims
      2,714 claims in Utah
      July 2009 184 claims
      Record # of Wage Claims for
      2008 Fiscal year
      Multiple filings with same company
    • 6. What are the Penalties?
      Outstanding Wages
      5% interest up to 20 days
      This equals the wage claim amount so you end up paying double the outstanding wage.
    • 7. Wage and Hour Enforcement
      Obama’s 2010 Budget includes
      17% increase in enforcement budget
      22% increase in Full-time employees
      Conduct more targeted investigations
      To maximize compliance
      Focus on low-wage industries that employ vulnerable workers
    • 8. Common Errors Employers Make
      Banking Hours
      Independent Contractors
      Tip Reporting
      Salaried Employees
      Youth Jobs (mowing lawns)
      Pay employee from multiple entities
      Ask employees to do work off the clock
      Pay piece rate without tracking hours
      Paying payroll late because of funding issues
      Payroll deductions
    • 9. The Edge
    • 10. How to Protect your Company
      Understand FLSA Laws
      Audit current practices
      Communicate with employees
      Provide resources to employees
    • 11. Fair Labor Standards Act
      What Supervisors Need to Know
    • 12. Are Details Important?
    • 13. FLSA Basics
      Minimum wage and overtime requirements
      Equal pay
      Calculate overtime
      Rest and Meal Periods
      Recordkeeping requirements
      Exemptions from overtime requirements
      Deductions from pay
      Independent Contractors vs Employee
      Tip Reporting
      Child labor laws
    • 14. Minimum Wage
      July 24, 2009
      Federal versus state requirements
      Minimum wage/overtime posters
      Make sure you updated your posters with new min wage rate.
    • 15. Equal Pay
      Equal Pay Act
      Comparison of jobs
      Prohibited pay differentials
      Permitted pay differentials
    • 16. Hours of Work
      FLSA requires regular and overtime pay
      Hours worked
      Split shifts
      Training programs, lectures, and meetings
      Holidays, vacations, and sick days
      Report-in pay
    • 17. Overtime
      Overtime for hours worked over 40
      Averaging hours prohibited
      Holiday/sick pay not included
      On-call and travel time may be included
      Employee rights
      Time of payment
    • 18. Calculating Overtime
      Fixed 40-hour workweek
      Fixed workweek of fewer than 40 hours
    • 19. Rest Periods
      Work breaks
    • 20. Recording Work Time
      Means of tracking hours
      Regular starting and stopping times
      Rounding off
    • 21. FLSA Recordkeeping
      Employee information
      Basic employment and earnings records
      Records on employees receiving tips
      Minimum requirements
    • 22. Things aren’t always as they seem…
    • 23. Nonexempt and Exempt
      Nonexempt employees
      Exempt employees
    • 24. Types of Exemptions
      Highly Compensated
    • 25. Deductions from Pay
      Absences due to illness or disability
      Absences for personal reasons
      Disciplinary suspensions and penalties
      First and last weeks of employment
      Unpaid leave
    • 26. Contractors and FLSA
      Contractors include workers who contract with the company
      Reasonable basis test
      Relationship: Are they pursuing their own business
    • 27. Child Labor Laws
      Purpose of child labor laws
      Workers under age 18
      Hours of work
      Minimum wage
      Work restrictions for all minors under 18
      Other restrictions vary depending on minor’s age
    • 28. Related Utah Laws
      Final check within 24 hours
      If fired or laid off
      Signature required for deductions
      Deductions cannot take employee below minimum wage
      Penalties for late payroll
    • 29. Sleeping Giant
    • 30. Why You Need to Know
      Wage and hour issues are critical to the operation of the organization
      FLSA determinations may be difficult
      The law affects employee compensation
      You play an important role in compliance
    • 31. Virtual DOL Audit
      Employee Complaint or Watch List
      Notification Letter
      Prepare Documentation
      Minimum Wage
      Child Labor
    • 32. Virtual DOL Audit
      Interview Employees
      Their best recollection…
      Decision Letter/Meeting
      Back Wages Owed
    • 33. Utah Wage Claim
      Notification Letter
      Pay or Fight
      Possible Hearing/Mediation
      Decision Letter
    • 34. How to Protect your Company
      Understand FLSA Laws
      Audit current practices
      Communicate with employees
      Provide resources to employees
      Partner with ESG!!!
    • 35. FLSA Requirements