SlideShare a Scribd company logo
1 of 2
Download to read offline
ADP TOTALSOURCE®


Top 10 HR Mistakes
You Want to Avoid

When it comes to human resource management, compliance is a fact of life.
Below is a list of 10 common HR mistakes. As a business owner you need to be
prepared. Fortunately, these errors are easy to fix once they’ve been identified.


Pay Practices
1.	  ailure to Pay Employees for Short Breaks –
    F                                                    4.	Calling Everyone an “Independent Contractor”
    The Fair Labor Standards Act does not require           – To determine whether an individual is an
    employers to provide breaks to employees                employee or an independent contractor under
    (although some state laws do). However, if you          Internal Revenue Service (IRS) guidance, the
    do provide short breaks (generally less than 20         relationship of the worker and the business must
    minutes), you will be required to pay employees         be examined. In any employee-independent
    for this time.                                          contractor determination, all information that
                                                            provides evidence of the degree of control and
2.	 ailure to Pay Employees for Accrued Vacation
    F
                                                           the degree of independence will be considered
    Time – Depending on which state you are in,             by the IRS. You cannot simply label a person an
    you may be required to pay departing employees          “Independent Contractor” in an effort to avoid
    for their accrued, but unused, vacation time. It        paying for workers’ compensation, payroll taxes,
    is important, therefore, to carefully track both        and benefits.
    accruals and usage of this time so that you do not
    end up paying out more than what the employee        5.	  isclassification of Employees – Just because
                                                             M
    is entitled to receive.                                 you pay an employee a salary does not make the
                                                            employee exempt from overtime requirements.
3.	Impermissible Deductions from or Withholding            Exemption from overtime is tied not only to salary,
    of an Employee’s Final Pay – In many states,            but also to the type of work the employee is
    only certain deductions (such as for a health and       performing. Failure to pay an employee overtime
    welfare plan or taxes) are allowed to be deducted       can result in the employer being required to pay
    from an employee’s pay. Additionally, most states       double or even triple the amount originally due to
    require payment of final wages to a departing           the employee.
    employee within a specific time frame. There are
    penalties associated for failing to pay employees
    the appropriate amount and on time.



  HR. Payroll. Benefits.
Employee Management
6.	Lack of Employee Handbook and Proper Job                                                                    9.	 ailure to Properly Train Supervisors – While
                                                                                                                    F
                                                                                                                    
       Descriptions – Employee Handbooks provide                                                                        some states require supervisors to undergo
       the road map for appropriate employee (and                                                                       regular training (i.e., California Sexual Harassment
       management) behavior. Similarly, proper job                                                                      Training), it is critical that all supervisors and
       descriptions set forth the expectations of each                                                                  management personnel are trained on how
       position, including a list of tasks, responsibilities,                                                           to handle complaints of discrimination and/or
       required skills, and qualifications. Consistently                                                                harassment, and that they know how to properly
       following the policies and procedures contained in                                                               conduct an investigation. Many complaints to the
       a well-drafted handbook can assist the employer                                                                  EEOC or an equivalent state agency stem from an
       in defending against claims brought by employees.                                                                employee’s belief that his or her complaints were
                                                                                                                        not properly handled or addressed by the employer.
 7.	
    Requiring Employees to Maintain Confidentiality
       During Investigations – Having a blanket policy                                                          10.	 ailure to Document – Employers often try too hard
                                                                                                                    F
                                                                                                                    
       prohibiting employees from discussing internal                                                                   to be “nice” by inflating performance appraisals
       investigation details with others may be a violation                                                             of average or poorly performing employees.
       of Section 7 of the National Labor Relations Act.                                                                Additionally, an employer’s failure to consistently
       Further, the Equal Employment Opportunity                                                                        and accurately document employee performance
       Commission (EEOC) cautions that overbroad                                                                        problems, violations of policy, etc., oftentimes will
       prohibitions may trigger retaliation prohibitions                                                                result in “he said/she said” situations. Having
       in Title VII.                                                                                                    appropriate documentation to support employment
                                                                                                                        decisions goes a long way to defend against
8.	 ailure to Understand and Grant Reasonable
    F
    
                                                                                                                        frivolous claims of discrimination.
       Accommodations – Knowing when you are
       required to grant an employee a reasonable
       accommodation (even when they may not ask for
       one directly) goes a long way in avoiding liability
       for claims filed for disability discrimination under
       Title VII — and for failure to accommodate and
       retaliation claims filed pursuant to the Americans
       with Disabilities Act Amendments Act.


To learn more about maintaining compliance, please visit the ADP TotalSource® website and register
for complimentary live and prerecorded compliance webinars. These webinars are HRCI approved.


    About ADP TotalSource

    A part of ADP’s Employer Services Division, ADP TotalSource provides employers with a comprehensive Human
    Resources outsourcing solution that helps reduce the costs and complexities related to employment and
    human resources management. For companies and HR departments that seek to return their focus to their
    core processes, ADP TotalSource helps remove administrative and regulatory burdens, allowing more effort to
    be expended on strategic initiatives. Our affordable outsourcing opportunities have the ability to significantly
    reduce operating costs and streamline business operations, paving the way for growth and competitive gains.
    To learn more about how ADP TotalSource can help your business, call 1-800-HIRE-ADP (800-447-3237) or go
    to www.adptotalsource.com.


ADP, the ADP logo, and ADP TotalSource are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc.
All other trademarks and service marks are the property of their respective owners. Printed in the USA © 2012 ADP, Inc.

More Related Content

What's hot

Independent contractor vs employee for ashrm
Independent contractor vs employee for ashrmIndependent contractor vs employee for ashrm
Independent contractor vs employee for ashrmSherryLDarden
 
The Three Rs of Workplace Change: Restructure, Redeployment & Redundancy
The Three Rs of Workplace Change: Restructure, Redeployment & RedundancyThe Three Rs of Workplace Change: Restructure, Redeployment & Redundancy
The Three Rs of Workplace Change: Restructure, Redeployment & RedundancyMaurice Blackburn Lawyers
 
How to Comply with FMLA
How to Comply with FMLAHow to Comply with FMLA
How to Comply with FMLAbenefitexpress
 
Authorized Causes of Termination
Authorized Causes of TerminationAuthorized Causes of Termination
Authorized Causes of TerminationRussel Romero
 
Labor & Employment Law: A primer for your clients
Labor & Employment Law:  A primer for your clientsLabor & Employment Law:  A primer for your clients
Labor & Employment Law: A primer for your clientsKymStuart
 
Managing Redundancy and Employee Separation
Managing Redundancy and Employee SeparationManaging Redundancy and Employee Separation
Managing Redundancy and Employee SeparationAzamri Dollah
 
SUNY Presentation Interplay Between ADA, FMLA and WC (1)
SUNY Presentation Interplay Between ADA, FMLA and WC (1)SUNY Presentation Interplay Between ADA, FMLA and WC (1)
SUNY Presentation Interplay Between ADA, FMLA and WC (1)John C. Farruggio
 
Redundancy, Retrenchment and Separation
Redundancy, Retrenchment and SeparationRedundancy, Retrenchment and Separation
Redundancy, Retrenchment and SeparationlegalPadmin
 
Change in Personnel Status
Change in Personnel StatusChange in Personnel Status
Change in Personnel Statusdfag15
 
Life Cycle of an Employee Termination
Life Cycle of an Employee   TerminationLife Cycle of an Employee   Termination
Life Cycle of an Employee TerminationPolsinelli PC
 
Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)
Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)
Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)Richard Celler
 
Constructive dismissal and its HR implications
Constructive dismissal and its HR implicationsConstructive dismissal and its HR implications
Constructive dismissal and its HR implicationsDr. Balakrishnan Muniapan
 
Dealing with Workplace Misconduct
Dealing with Workplace MisconductDealing with Workplace Misconduct
Dealing with Workplace MisconductAzamri Dollah
 
Leaves, absences, and accommodations 2019
Leaves, absences, and accommodations 2019Leaves, absences, and accommodations 2019
Leaves, absences, and accommodations 2019eph-hr
 

What's hot (20)

Independent contractor vs employee for ashrm
Independent contractor vs employee for ashrmIndependent contractor vs employee for ashrm
Independent contractor vs employee for ashrm
 
The Three Rs of Workplace Change: Restructure, Redeployment & Redundancy
The Three Rs of Workplace Change: Restructure, Redeployment & RedundancyThe Three Rs of Workplace Change: Restructure, Redeployment & Redundancy
The Three Rs of Workplace Change: Restructure, Redeployment & Redundancy
 
How to Comply with FMLA
How to Comply with FMLAHow to Comply with FMLA
How to Comply with FMLA
 
Authorized Causes of Termination
Authorized Causes of TerminationAuthorized Causes of Termination
Authorized Causes of Termination
 
Labor & Employment Law: A primer for your clients
Labor & Employment Law:  A primer for your clientsLabor & Employment Law:  A primer for your clients
Labor & Employment Law: A primer for your clients
 
Managing Redundancy and Employee Separation
Managing Redundancy and Employee SeparationManaging Redundancy and Employee Separation
Managing Redundancy and Employee Separation
 
SUNY Presentation Interplay Between ADA, FMLA and WC (1)
SUNY Presentation Interplay Between ADA, FMLA and WC (1)SUNY Presentation Interplay Between ADA, FMLA and WC (1)
SUNY Presentation Interplay Between ADA, FMLA and WC (1)
 
Redundancy, Retrenchment and Separation
Redundancy, Retrenchment and SeparationRedundancy, Retrenchment and Separation
Redundancy, Retrenchment and Separation
 
2012-05-30 Employee Classification
2012-05-30 Employee Classification2012-05-30 Employee Classification
2012-05-30 Employee Classification
 
Change in Personnel Status
Change in Personnel StatusChange in Personnel Status
Change in Personnel Status
 
d
dd
d
 
Irll ppt final
Irll ppt finalIrll ppt final
Irll ppt final
 
Mngt 2
Mngt 2Mngt 2
Mngt 2
 
Life Cycle of an Employee Termination
Life Cycle of an Employee   TerminationLife Cycle of an Employee   Termination
Life Cycle of an Employee Termination
 
Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)
Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)
Florida Overtime Wage Exemptions - Most Commonly Used Exemptions (Part I)
 
Constructive dismissal and its HR implications
Constructive dismissal and its HR implicationsConstructive dismissal and its HR implications
Constructive dismissal and its HR implications
 
Dealing with Workplace Misconduct
Dealing with Workplace MisconductDealing with Workplace Misconduct
Dealing with Workplace Misconduct
 
Termination of-service
Termination of-serviceTermination of-service
Termination of-service
 
Llj summer robinson
Llj summer robinsonLlj summer robinson
Llj summer robinson
 
Leaves, absences, and accommodations 2019
Leaves, absences, and accommodations 2019Leaves, absences, and accommodations 2019
Leaves, absences, and accommodations 2019
 

Viewers also liked

Viewers also liked (6)

Employment Law 101
Employment Law 101Employment Law 101
Employment Law 101
 
Top 10 HR Mistakes
Top 10 HR Mistakes Top 10 HR Mistakes
Top 10 HR Mistakes
 
Employee Conflict at workplace
Employee Conflict at workplaceEmployee Conflict at workplace
Employee Conflict at workplace
 
PACE - Law Presentation: Employment Law 101
PACE - Law Presentation: Employment Law 101PACE - Law Presentation: Employment Law 101
PACE - Law Presentation: Employment Law 101
 
Conflict Resolution Case Study Rutgers MBA
Conflict Resolution Case Study Rutgers MBAConflict Resolution Case Study Rutgers MBA
Conflict Resolution Case Study Rutgers MBA
 
Tidepool teacher's guide
Tidepool teacher's guideTidepool teacher's guide
Tidepool teacher's guide
 

Similar to Top 10 HR Mistakes You Want to Avoid

Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act
Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act
Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act Matt Charney
 
Redundancy, Retrenchment and Separation
Redundancy, Retrenchment and SeparationRedundancy, Retrenchment and Separation
Redundancy, Retrenchment and SeparationlegalPadmin
 
Top-5-Small-Business-HR-Mistakes
Top-5-Small-Business-HR-MistakesTop-5-Small-Business-HR-Mistakes
Top-5-Small-Business-HR-MistakesAllie0
 
Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...
Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...
Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...Kweiss
 
Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...
Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...
Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...Badmus & Associates
 
20 Factor Test Employee Or Sub Contractor
20 Factor Test Employee Or Sub Contractor20 Factor Test Employee Or Sub Contractor
20 Factor Test Employee Or Sub Contractordmaaskant
 
Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09
Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09
Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09Barbara Richman, SPHR
 
HR Brief September 2015
HR Brief September 2015HR Brief September 2015
HR Brief September 2015Joe Williams
 
eBook: A Practical Guide to Compensation Self-Auditing
eBook: A Practical Guide to Compensation Self-AuditingeBook: A Practical Guide to Compensation Self-Auditing
eBook: A Practical Guide to Compensation Self-AuditingThomas Econometrics
 
Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...
Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...
Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...Barbara Richman, SPHR
 
Hrm performance appraisal
Hrm performance appraisalHrm performance appraisal
Hrm performance appraisalpochettino339
 
Contingent Workers
Contingent Workers Contingent Workers
Contingent Workers lnarvid
 
Americans with Disability Act Family Medical Leave Act Workers' Compensation:...
Americans with Disability Act Family Medical Leave Act Workers' Compensation:...Americans with Disability Act Family Medical Leave Act Workers' Compensation:...
Americans with Disability Act Family Medical Leave Act Workers' Compensation:...Jim Cowan
 

Similar to Top 10 HR Mistakes You Want to Avoid (20)

Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act
Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act
Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act
 
Redundancy, Retrenchment and Separation
Redundancy, Retrenchment and SeparationRedundancy, Retrenchment and Separation
Redundancy, Retrenchment and Separation
 
Top-5-Small-Business-HR-Mistakes
Top-5-Small-Business-HR-MistakesTop-5-Small-Business-HR-Mistakes
Top-5-Small-Business-HR-Mistakes
 
Common Mistakes Employers Make
Common Mistakes Employers MakeCommon Mistakes Employers Make
Common Mistakes Employers Make
 
Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...
Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...
Guide EmployeesThrought a Successful Merger - Construction Business Owner's M...
 
Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...
Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...
Avoiding Workplace Pitfalls - Domestic and Foreign Employee Compliance - Best...
 
20 Factor Test Employee Or Sub Contractor
20 Factor Test Employee Or Sub Contractor20 Factor Test Employee Or Sub Contractor
20 Factor Test Employee Or Sub Contractor
 
Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09
Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09
Memphis Biz Journal.Countering Risks Of Employment Related Actions.4.10.09
 
Acas 12 top tips
Acas 12 top tipsAcas 12 top tips
Acas 12 top tips
 
Acas 12 top tips
Acas 12 top tipsAcas 12 top tips
Acas 12 top tips
 
HR Focus Issue 59 0512 v5
HR Focus Issue 59 0512 v5HR Focus Issue 59 0512 v5
HR Focus Issue 59 0512 v5
 
HR Brief September 2015
HR Brief September 2015HR Brief September 2015
HR Brief September 2015
 
eBook: A Practical Guide to Compensation Self-Auditing
eBook: A Practical Guide to Compensation Self-AuditingeBook: A Practical Guide to Compensation Self-Auditing
eBook: A Practical Guide to Compensation Self-Auditing
 
EDI 2009 E Discovery Issues In Business Closings, Downsizings And Bankruptcy
EDI 2009 E Discovery Issues In Business Closings, Downsizings And BankruptcyEDI 2009 E Discovery Issues In Business Closings, Downsizings And Bankruptcy
EDI 2009 E Discovery Issues In Business Closings, Downsizings And Bankruptcy
 
HR & Benefits Solutions - HKP
HR & Benefits Solutions - HKPHR & Benefits Solutions - HKP
HR & Benefits Solutions - HKP
 
Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...
Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...
Memphis Business Journal.Making Mistakes In Flsa Exemptions Can Be Costly For...
 
Hrm performance appraisal
Hrm performance appraisalHrm performance appraisal
Hrm performance appraisal
 
Contingent Workers
Contingent Workers Contingent Workers
Contingent Workers
 
Americans with Disability Act Family Medical Leave Act Workers' Compensation:...
Americans with Disability Act Family Medical Leave Act Workers' Compensation:...Americans with Disability Act Family Medical Leave Act Workers' Compensation:...
Americans with Disability Act Family Medical Leave Act Workers' Compensation:...
 
WAGES
WAGES WAGES
WAGES
 

Top 10 HR Mistakes You Want to Avoid

  • 1. ADP TOTALSOURCE® Top 10 HR Mistakes You Want to Avoid When it comes to human resource management, compliance is a fact of life. Below is a list of 10 common HR mistakes. As a business owner you need to be prepared. Fortunately, these errors are easy to fix once they’ve been identified. Pay Practices 1. ailure to Pay Employees for Short Breaks – F 4. Calling Everyone an “Independent Contractor” The Fair Labor Standards Act does not require – To determine whether an individual is an employers to provide breaks to employees employee or an independent contractor under (although some state laws do). However, if you Internal Revenue Service (IRS) guidance, the do provide short breaks (generally less than 20 relationship of the worker and the business must minutes), you will be required to pay employees be examined. In any employee-independent for this time. contractor determination, all information that provides evidence of the degree of control and 2. ailure to Pay Employees for Accrued Vacation F the degree of independence will be considered Time – Depending on which state you are in, by the IRS. You cannot simply label a person an you may be required to pay departing employees “Independent Contractor” in an effort to avoid for their accrued, but unused, vacation time. It paying for workers’ compensation, payroll taxes, is important, therefore, to carefully track both and benefits. accruals and usage of this time so that you do not end up paying out more than what the employee 5. isclassification of Employees – Just because M is entitled to receive. you pay an employee a salary does not make the employee exempt from overtime requirements. 3. Impermissible Deductions from or Withholding Exemption from overtime is tied not only to salary, of an Employee’s Final Pay – In many states, but also to the type of work the employee is only certain deductions (such as for a health and performing. Failure to pay an employee overtime welfare plan or taxes) are allowed to be deducted can result in the employer being required to pay from an employee’s pay. Additionally, most states double or even triple the amount originally due to require payment of final wages to a departing the employee. employee within a specific time frame. There are penalties associated for failing to pay employees the appropriate amount and on time. HR. Payroll. Benefits.
  • 2. Employee Management 6. Lack of Employee Handbook and Proper Job 9. ailure to Properly Train Supervisors – While F Descriptions – Employee Handbooks provide some states require supervisors to undergo the road map for appropriate employee (and regular training (i.e., California Sexual Harassment management) behavior. Similarly, proper job Training), it is critical that all supervisors and descriptions set forth the expectations of each management personnel are trained on how position, including a list of tasks, responsibilities, to handle complaints of discrimination and/or required skills, and qualifications. Consistently harassment, and that they know how to properly following the policies and procedures contained in conduct an investigation. Many complaints to the a well-drafted handbook can assist the employer EEOC or an equivalent state agency stem from an in defending against claims brought by employees. employee’s belief that his or her complaints were not properly handled or addressed by the employer. 7. Requiring Employees to Maintain Confidentiality During Investigations – Having a blanket policy 10. ailure to Document – Employers often try too hard F prohibiting employees from discussing internal to be “nice” by inflating performance appraisals investigation details with others may be a violation of average or poorly performing employees. of Section 7 of the National Labor Relations Act. Additionally, an employer’s failure to consistently Further, the Equal Employment Opportunity and accurately document employee performance Commission (EEOC) cautions that overbroad problems, violations of policy, etc., oftentimes will prohibitions may trigger retaliation prohibitions result in “he said/she said” situations. Having in Title VII. appropriate documentation to support employment decisions goes a long way to defend against 8. ailure to Understand and Grant Reasonable F frivolous claims of discrimination. Accommodations – Knowing when you are required to grant an employee a reasonable accommodation (even when they may not ask for one directly) goes a long way in avoiding liability for claims filed for disability discrimination under Title VII — and for failure to accommodate and retaliation claims filed pursuant to the Americans with Disabilities Act Amendments Act. To learn more about maintaining compliance, please visit the ADP TotalSource® website and register for complimentary live and prerecorded compliance webinars. These webinars are HRCI approved. About ADP TotalSource A part of ADP’s Employer Services Division, ADP TotalSource provides employers with a comprehensive Human Resources outsourcing solution that helps reduce the costs and complexities related to employment and human resources management. For companies and HR departments that seek to return their focus to their core processes, ADP TotalSource helps remove administrative and regulatory burdens, allowing more effort to be expended on strategic initiatives. Our affordable outsourcing opportunities have the ability to significantly reduce operating costs and streamline business operations, paving the way for growth and competitive gains. To learn more about how ADP TotalSource can help your business, call 1-800-HIRE-ADP (800-447-3237) or go to www.adptotalsource.com. ADP, the ADP logo, and ADP TotalSource are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc. All other trademarks and service marks are the property of their respective owners. Printed in the USA © 2012 ADP, Inc.