Article Author: Jana Reserva

Jana Reserva is a content manager for Workforce.com.

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How to Manage Compliance for Contractors

Summary

  • Managing contracted employees (1099s) fundamentally differs from managing typical W-2 staff.
  • Employers are legally responsible for correctly classifying workers according to the FLSA, IRS, and any applicable state-based rules. However, the line between employees and contractors can easily get blurred.
  • Workforce.com helps streamline contractor compliance management by ensuring workers are treated according to their classifications.

Suppose you are considering hiring independent contractors for a specific job. Or maybe you already employ a few. Have you done all of your research to handle them compliantly? If not, this guide is for you.

Strict labor standards govern how to properly classify and manage independent contractors, otherwise known as 1099 workers. Let’s examine how to stay on top of these rules and safeguard your business from legal risks.  

Why hire an independent contractor?

Hiring independent contractors offers flexibility, especially when you need help for short-term projects. Unlike full-time employees, contractors usually come in with the expertise required to start working right away, meaning less time spent on training and onboarding. 

Another advantage is cost-effectiveness. Contractors are not entitled to overtime pay, employee benefits like health insurance or retirement plans, or perks like paid vacations and promotions. You also avoid expenses like unemployment insurance and tax contributions that generally come with traditional employment. 

While engaging independent contractors gives you flexibility, there are risks involved. Misclassification is the biggest one. Since contractors are not entitled to the many lucrative benefits of regular employment mentioned above, misclassifying an employee as a contractor can result in serious legal trouble, fines, back taxes, and even lawsuits. Because of this, it is vitally important to understand what qualifies someone as a contractor. 

Key legal guidelines for managing independent contractors

Employee Classifications

Correctly classifying a worker as a contractor is the first step to staying compliant. At the federal level, the Fair Labor Standards Act (FLSA) uses a six-factor test that evaluates the “totality of circumstances” around the working relationship. With this assessment, businesses can determine the correct classification while considering crucial aspects such as control, independence, and the nature of work. These factors are:

  • Opportunity for profit or loss depending on managerial skill
  • Investments by the worker and the potential employer
  • Degree of permanence of the work relationship
  • Nature and degree of control
  • Extent to which the work performed is an integral part of the potential employer’s business
  • Skill and initiative

It’s important to note that the FLSA doesn’t assign a rule defining whether someone should be a contractor or an employee. Instead, it evaluates the facts of each situation to determine the working relationship and whether the worker is truly independent and doesn’t rely on the business like an employee would. 

Aside from federal rules, businesses must also check if there are state rules that govern how they should differentiate contractors from employees. In California, for instance, a worker is classified by default as a standard W-2 employee unless all of the following conditions are met: 

  • The worker is free from the control and direction of the hiring entity in connection with the performance of the work
  • The worker performs work that is outside the usual course of the hiring entity’s business
  • The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. 

In essence, a worker in California can only be classified as an independent contractor if they have autonomy over how and when they perform their tasks, as long as they complete their responsibilities. Also, the work must be fundamentally different from what the business does; For instance, a hospital commissioning people to construct a new building wing. Lastly, the worker must be independently engaged in an established trade and offer services to multiple clients.

Understanding the difference between independent contractors shapes how you manage payroll and benefits. Full-time employees are protected by wage and hour laws, ensuring they’re paid at least minimum wage and receive overtime pay. Full-time employees are also protected under meal break rules depending on the state. On the other hand, 1099 workers aren’t generally covered by these rules. Independent contractors are paid according to their contracts. In addition, they are not entitled to certain benefits, such as health insurance and workers’ compensation.

IRS Rules

Employers must also look at IRS guidelines because these will define how active their role is when handling taxes for their workers. It will also dictate how they report workers’ compensation, the types of forms to submit, and whether or not they would be legally liable to withhold taxes.

Employers withhold and deposit income taxes, social security taxes, and Medicare taxes from employee wages. On top of that, they also match contributions to SSS and Medicare taxes. But it’s a different situation for contractors. Employers generally don’t deduct income taxes from the contractor’s payment and don’t need to match contributions. 

So, under IRS rules, what factors will help you gauge whether a worker should be classified as an employee or contractor?

  • Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
  • Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how a worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
  • Type of relationship: Are there written contracts or employee type benefits (that is, pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Like California’s ABC Test, the IRS guidelines also consider the level of autonomy workers have over their jobs. Employers typically have less control over how contractors fulfill their tasks and don’t dictate the methods and tools workers use. 

The IRS also considers how financially dependent workers are on their employers. Contractors typically cover their own costs, such as transportation and equipment, whereas employees rely on their employers for those provisions. 

Employees typically have an ongoing relationship with an employer, while contractors typically work for a set period on specific tasks or projects and aren’t as involved in a company’s core operations. 

Classifying employees correctly is also a prerequisite for filing the correct forms and determining whether you must file a W-2 or 1099. Employers typically file W-2s for full-time and part-time employees, reporting all wages, compensation, and tax withholdings for the year.

On the other hand, form 1099 shows how much an employer pays an independent contractor in a tax year. You must file a 1099 if a contractor earns $600 or more annually. These 1099 forms will not include tax withholdings since contractors calculate and submit them to the IRS independently.

OSHA Regulations

The Occupational Safety and Health Administration (OSHA) requires employers, including those using contractors, to adhere to safety regulations and keep workplaces free from hazards to prevent injury or death.

OSHA has general safety regulations that apply to most workplaces, but specific guidelines exist for construction, maritime, and agriculture industries. If you’re in any of those sectors, it would be wise to know these regulations.

Typically, OSHA regulations cover the following areas: 

  • Safety training requirements include construction safety training, such as handling scaffolding, fall protection measures, and ladder safety.
  • Handling hazardous tasks, including hazard communication standards, proper labeling, data sheets, and training on handling hazardous substances.
  • Personal protective equipment (PPE) for specific working environments, including hard hats, gloves, goggles, or respirators, should meet OSHA standards.
  • Rules that must apply when multiple employers are present in a worksite, which is typical for big projects involving contractors and subcontractors. The company that hired them, the controlling employer, is responsible for following OSHA rules. This means that they must check for hazards, ensure safety standards are followed, especially with heavy equipment, and have a system to report and address safety concerns. 

Aside from training, employers are also responsible for communicating such rules and ensuring that contractors have the safety training needed for the job.

How to build an effective contractor compliance management policy

Employing third-party contractors differs from managing employees, but your legal obligations remain just as important. It’s crucial to have a dedicated compliance strategy for employing contractors to reduce risks and avoid violations. Here are some practical tips:

Establish rules and guidelines for classifying contractors.

A significant part of contractor compliance is classifying them correctly, so you must have a process for doing so.

Before hiring, vet potential workers carefully. Assess the task or job and how you plan to oversee it. From there, you can determine whether a part-time worker or a contractor is the right fit. Getting the classification right from the start ensures compliance with tax filings, payroll, and other regulations.

Create airtight contracts.

Contracts and agreements between you and contractors must clearly outline the scope of work, duties and responsibilities, and payment terms. Draft them with the regulations in mind. To avoid legal missteps, ensure these agreements comply with FLSA, IRS, and OSHA regulations.

Avoid scope creep. 

The law is very clear on factors that dictate whether a worker qualifies as an independent contractor. Remember that it all comes down to their financial and behavioral independence. Be careful not to overstep legal boundaries that could change their classification.

The key is consistency. Set clear rules for overseeing the job and adhere to the contract’s terms. Your treatment of contractors should remain uniform and standard throughout the project.

Provide necessary training. 

Safety training is a must for hiring contractors. Ensure they complete all required health and safety training before the project begins. 

It’s also in your best interest to train your managers on the legal principles governing contractors and employees. This can equip them during the vetting process and help them better manage projects in accordance with regulations. 

Set regular progress check-ins. 

See to it that the process stays on course. Establish regular check-ins where contractors submit performance reports detailing their deliverables, remaining tasks, and any challenges they face. This keeps you informed and allows for timely adjustments if needed.

At the same time, conduct routine assessments or audits from your end to track how the project is progressing. This helps ensure that contractors are set to meet deadlines and follow safety and health regulations. Regular check-ins keep the projects on track and minimize potential issues before they become bigger problems.

Stay abreast of relevant rules and regulations.

Labor laws can change at any time, so employers must stay up-to-date. Case in point: US Department of Labor’s final rule on worker classification. Previously, the law only looked at the economic dependence of workers on their employers. The more economically dependent a worker was on the employer, the more likely they were to be considered an employee. However, the changes take a broader approach and now consider the “totality of circumstances” when classifying workers. 

Streamline the process with technology. 

Contractor compliance can be complicated, requiring new administrative tasks and management processes for your managers and HR. However, technology can simplify some processes involved with working with contractors, such as onboarding, time tracking, payroll, and documentation.

Workforce.com simplifies contractor compliance

Managing employees is complicated enough, and adding contractors into the mix can come with its own set of challenges. But don’t let this discourage you from getting contractors for specialized projects, especially if they provide more flexibility. 

There’s a way to manage contractors in a more streamlined way. Here’s how Workforce.com can help. 

Onboarding 

Workforce.com’s onboarding system lets 1099 workers easily and independently submit all necessary paperwork, bank details, and contracts to employers. This self-service portal relieves the administrative burden from the employer and ensures all information is in place for contractors to get paid correctly.

Time tracking

Depending on the contract, contractors submit timesheets before they get paid, but you can simplify the process with Workforce.com’s time and attendance system. Instead of dealing with paperwork, contractors can log in and out through the time clock, automatically generating timesheets based on their time punches.

You can set up a Workforce.com on-site or you can allow contractors to clock in and out through their own device via the Workforce.com app. This ensures accurate time tracking across multiple locations, making recordkeeping more manageable and ensuring contractors are paid on time, especially if specific hours were agreed upon.

Scheduling & task management

Workforce.com also has a scheduling system that contractors can use to plan their work accordingly. They can build and assign shifts, create to-do lists, and communicate with other workers to more easily map out where and when work gets done.

PayrollWorkforce.com’s payroll system can simplify how you pay contractors. Along with your W-2 staff, the system will also automatically process payment for your 1099 workers based on hours worked and the terms of their contract. At the end of the year, Workforce.com will also provide you with all necessary 1099 forms, which your contractors will use to file their taxes.

Recordkeeping

Workforce.com keeps all contractor records organized in one place, helping you access everything in case of audits or compliance reviews. It stores contracts, timesheets, IRS forms, and other important documents related to each project, helping you stay on top of everything and remain compliant. 

Ready to improve how you manage contractor compliance? Book a demo and see how Workforce.com can help.

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California’s Meal and Rest Break Laws: What Employers Need to Know

Summary

  • California requires employers to provide their staff with a meal break and several rest breaks, depending on shift length.
  • Due to waiver conditions, industry-specific exceptions, and confusing legal jargon, complying with these rules is tricky.
  • Misunderstanding is no excuse for getting rest breaks wrong in California. Employers must equip themselves to schedule, track, and pay rest breaks correctly to avoid legal trouble.

Employee meal and rest break laws vary by state. Some lack regulations, while others have strict guidelines – the most stringent being California.

So, if you’re an employer in California, how do you know if you’re implementing meal and rest breaks correctly? Let’s break down what you need to know about these rules, what happens when you break them, and practical tips to ensure you remain compliant. 

What are California’s Meal and Rest Break Laws?

According to California’s Labor Commissioner’s Office, also known as the Division of Labor Standards Enforcement (DLSE), most non-exempt employees in California are entitled to distinct categories of breaks: a meal break and a rest break.

Meal Breaks

  • Employees who work more than five hours in a day are entitled to a 30-minute unpaid lunch break.
  • Employers must provide an additional 30-minute unpaid meal break to employees working more than 12 hours in a day.

Several conditions must be met to satisfy the requirements for a reasonable meal break. Employees must be fully relieved of all their duties, the break must go uninterrupted, and the employer cannot discourage or prevent it. Employees must also be free to use the time as they see fit. Whether they eat lunch, leave the premises, or take a quick nap, it’s their prerogative.

Failing/refusing to give a meal break

If an employer fails to provide a reasonable meal period, they owe the employee one extra hour of pay at the regular rate for each day they do not receive a meal break. This is what is known as premium pay.

If an employee’s meal break is less than 30 minutes, and they never agreed to end their break early in writing, it is considered “interrupted” and must be paid, along with the one additional hour of premium pay for a missed break.

Employees who do not receive premium pay have the right to submit a wage claim to the Labor Commissioner’s Office.

Waiving meal breaks

Can meal break times be waived? Yes, but only under certain circumstances. Both employer and employee can agree to waive the meal break if a shift is 6 hours or less. At the same time, employees can skip the second 30-minute meal break, provided they took the first meal break and worked more than 10 but less than 12 hours. 

Waiving breaks should not be standard practice and should only be agreed to if a meal break will prevent an employee from completing an essential task. Employers should always properly document waived breaks in writing to protect themselves from unclaimed wage lawsuits.

On-duty meal breaks

There are cases when employees can’t be fully relieved of their duties during meal breaks or leave the premises while on break. If that’s the case, the rules for on-duty meal periods will apply, and these are the following: 

  • If an employee must remain at the work site or facility during the meal period, the meal period must be paid. 
  • On-duty meal periods are only allowed under certain conditions where the nature of the job makes it impossible for workers to be free of all of their duties while on break. Examples are sole employees in a coffee kiosk, night shift workers in a convenience store, or security guards stationed alone.
  • Both employer and employee must agree in writing. The document should state the terms of the on-duty meal period and explicitly state that the employee can cancel the agreement anytime if they no longer wish to have on-duty meal breaks.
  • On-site meal breaks should only happen for real, job-related reasons requiring employees to stay on the premises, not just because the employer and employee agree. The nature of the work should make it necessary for employees to remain at the job site, even during meal breaks.

Rest Breaks

  • Employers must provide a ten-minute paid rest period for every four hours worked or a significant fraction thereof.
  • As much as possible, the break should be taken around the middle of the work period.
  • The 10-minute rest break should start when an employee reaches a proper place to rest away from their work area. Employers must provide a suitable place for rest that’s separate from the restroom and available during work hours.
  • If a rest break is not provided, the employee is owed an additional hour of premium pay at their regular pay rate.

As with meal breaks, employees must be free from job responsibilities during their rest period. Furthermore, employees must not be on call during this time. Employees working at most three and a half hours are not entitled to rest breaks.

Employees can skip their rest breaks, but it must be their choice without any pressure or influence from the employer. It’s also wise to document every time a break is missed or skipped – an employer should have in writing why a break was skipped and if the employee agreed to it.

What makes compliance with California’s break time laws challenging

Due to the sheer complexity of California’s break laws, it can be difficult for employers to get everything right, even if they have the best intentions. Here are some of the most common roadblocks employers face regarding California meal and rest break laws:

Complying with industry-specific rules and exemptions

Aside from the basic rules around unpaid meal breaks and paid rest periods, California employers must also ensure that they follow applicable industry-specific regulations and exemptions. Here are some examples of such:

  • Employees in the motion picture industry must not work for more than 6 hours without taking at least a 30-minute break but not exceeding an hour. After that, employers must provide a second meal break no later than 6 hours after the previous one has ended. (IWC Order No. 12)
  • Hot meals and drinks must be provided for production employees working after 12 midnight.  (IWC Order No. 12)
  • Performers engaged in strenuous activities, such as swimmers, dancers, and skaters, shall have additional interim rest periods during shootings and rehearsals.  (IWC Order No. 12)
  • Rest breaks can be staggered in the construction, drilling, logging, and mining industries to prevent disruptions in operations. If a break is missed, it must be provided within the same workday; otherwise, the employer must pay a penalty for the missed break. (IWC Order No. 16)
  • Healthcare industry workers who work shifts longer than 8 hours may voluntarily waive their right to one of their two meal periods, provided that there’s a written agreement signed by the employer and employee. Employees can revoke the waiver with at least one day’s written notice. (IWC Order No. 4)
  • Employees who are directly responsible for the care of children under 18 years old or still in the foster system who need 24-hour care and employees who are working in 24-hour residential care facilities for the elderly, blind, and developmentally disabled individuals may be required to work on-duty meal periods without extra pay, especially if they must meet regulatory standards. This applies if:
    • The employee eats with the residents and is provided the same meal for free.
    • The employee is solely responsible for the residents, and a free meal is provided during the day shift.

Incorrect interpretations

Legal jargon is notoriously ambiguous and sometimes difficult to understand. Regardless, incorrectly interpreting California’s break laws can result in costly lawsuits—case in point: Bono Enterprises, Inc. vs. Bradshaw.

Bono Enterprises Inc., operating under the business name American Temporary Services (ATS), was a temporary work agency that supplied roughly 1,000 Californian employers with a workforce. One of their clients is a manufacturing plant in Modesto. ATS temp workers were not given security clearance in the plant, which resulted in them remaining in the plant premises during their 30-minute meal breaks.

Several employees filed complaints for not receiving paid wages for lunch periods when they had no choice but to stay on the premises. However, ATS argued that the wording of the rule is vague and unclear.

Furthermore, employees are relieved of all work duties during their meal breaks and can access an on-site cafeteria and relaxation areas. 

The commissioner ruled in favor of the employees, and the court agreed with their interpretation. The ruling emphasized that unpaid meal breaks must allow employees to spend their time as they choose, including leaving the premises. Being restricted on-site meant they could still be under the employer’s control, which violates the law.

This case clearly illustrates how easily the law can be misunderstood and reminds employers to tread carefully and err on the side of caution. It’s best to seek legal advice when in doubt or faced with unclear regulations. 

Tracking break times 

While it’s not the employer’s job to police how employees spend their break time, it is their duty to ensure that breaks are provided as required by the law. 

The challenge comes with determining which breaks are paid and unpaid and knowing when an employee qualifies for premium pay. Employers must also ensure the system isn’t misused to gain extra pay, such as manipulating break times to extend paid hours. And let’s not forget documentation and keeping track of waivers. These tasks add to the already heavy workload of HR workforce management.

Stay on top of California Labor Laws with Workforce.com

California meal and rest breaks are not only difficult to understand but also tricky to implement. Luckily, a payroll system like Workforce.com can help you automatically ensure employees receive what they are entitled to.

Here is how Workforce.com handles breaks in California:

Properly identifying paid and unpaid meal breaks

Workforce.com helps you identify which meal breaks are unpaid and when premium pay will apply. 

Employees clock in and out for meal breaks on Workforce.com’s time clock app. If they return early, you can set up shift questions asking if they are coming back by choice. If so, the break remains unpaid. However, if they answered no and indicated their manager asked them to return early, it would be an interrupted, paid break. Managers are notified in these cases to verify the situation.

Automated timesheet attestations

When staff clock out of their shift, you can prompt them with a series of questions certifying the accuracy of their timesheets. If no meal or rest breaks were taken, Workforce.com will give the employee an option to sign a waiver indicating whether or not they agreed to take their break. Every attestation and break waiver is filed securely in your document library, which you can refer to in case of an external audit or lawsuit.

Ensuring breaks are properly scheduled

Managers can easily customize and schedule compliant breaks in Workforce.com’s scheduling system. These breaks can be configured to automatically apply to any shift that meets the minimum required length. These preventative workflows ensure correct breaks are always scheduled with minimal manual effort.

Notifications and alerts

With Workforce.com’s mobile employee app, employees get reminders to take their breaks and clock in and out for meal and rest periods. At the same time, managers can also receive notifications if any of their team members seem to have missed their breaks. This way, they can investigate and address any issues quickly. 

Automated premium payments

When an employee fails to receive or misses a break, Workforce.com’s payroll system automatically calculates the correct premium payment amount they are owed based on their time logs and pay rate. This additional pay is reflected on the timesheet and properly paid out on payday.

Learn more about how Workforce.com’s payroll and scheduling system can help you easily manage rest breaks in California. Book a demo today.

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Employees using cell phones for work? Here’s how California employers must pay up

Summary:

  • In California, reimbursing employees for work-related personal cell phone use is more than just a perk. It’s the law.
  • Compliance with cell phone reimbursement laws may be challenging as there are ambiguities about reasonable compensation amounts.
  • Employees can use software like Workforce.com on computers to perform administrative work duties, avoiding the need for cell phone reimbursements.
  • Compliance-specialized HR software like Workforce.com can also handle distributing reimbursements and stipends if needed.

The lines between personal and professional mobile phone use are becoming increasingly blurred. Many employees use their personal devices for work-related purposes, whether answering emails, calling clients and team members, coordinating projects, or accessing company portals. If this is the case, who should foot the bill?

California addresses this overlap with Labor Code 2802, a law that attempts to clarify who should cover the costs of using a personal cell phone for work purposes.

So what does this law entail, and how does it protect employers and employees? Let’s take a closer look to help you navigate this legal dilemma in the Golden State. 

What is California Labor Code 2802?

California Labor Code 2802 mandates that employers fully reimburse employees for any job-related expenses they may incur; this includes all costs related to using a personal cell phone for work duties. This law protects employees and ensures employers are not sidestepping operating expenses.

So, if your employees use their cell phones to call clients, communicate with suppliers, manage company platforms, or perform other job-related activities, they may be entitled to reimbursement – depending on your state.

Clearly, this is more than just a job perk. It’s the law, and employers in California must comply. But this is much easier said than done due to the ambiguous nature of the way the labor code was written. The critical question here is how to measure what qualifies as reasonable compensation. And how do you even begin to job-cost phone-related activities?

The Cochran vs. Schwan’s Home Services Case

If your employees have unlimited call minutes, do you still need to reimburse them for cell phone use? Yes, you should. The court decision for Cochran vs. Schwan’s Home Services case reiterates why this is the case. 

In this class action suit, the plaintiff claims that California Law 2802 is violated because they use their cell phones for work-related calls in their job duties for a food delivery business but are not reimbursed for such costs. However, the defendant argued about the appropriateness of the class certification. According to them, the employees have varying reimbursement claims. They also countered that some employees didn’t incur additional costs because they were on a plan with unlimited minutes or included in a family plan.

The California Court of Appeals ruled that employees are still entitled to reimbursement even if they’re on a mobile plan with unlimited minutes or a family plan. The issue is about properly reimbursing employees for using their personal cell phones to perform work duties and not about whether or not employees incur additional expenses on top of their plan for making work-related calls. Since the employer benefits from these calls, they should cover the expense as part of their business operations.

So, the next question is how much? The court didn’t mandate a specific amount by which employees must be reimbursed, making the ruling pivotal for this piece of California law and the employers that must comply. Such uncertainty makes it even more challenging for employers to determine how much they should reimburse employees for cell phone usage.

How do you calculate reasonable reimbursement?

Since the law doesn’t state an exact dollar amount or formula by which you should reimburse employees for cell phone use, how do you identify that sweet spot?
According to a study by Oxford Economics and Samsung, most company reimbursements for mobile expenses range between $30 to $50 per month. On average, the monthly amount is $40.20 per employee. In addition, 98% of companies surveyed provide full or partial stipends to cover employee mobile expenses.

The reasonable reimbursement or stipend amount depends on your operations and how crucial mobile devices are for your employees’ tasks. According to the same study, 53% of executives said employees need mobile phones to do their jobs well, and 57% said mobile devices are key to getting work done.

Figure out how much of your employee’s screen time is devoted to work. For instance, if 50% of their daily phone usage is spent on job-related activities, you can consider providing a stipend or reimbursement equal to half of their monthly plan.

On the other hand, you can opt for exact reimbursement based on their usage if they can highlight specific line items in their phone bill that are directly related to work. However, this can be challenging since most mobile plans are bundled or have unlimited call minutes or data.

The key to determining a reasonable reimbursement amount is to ensure that you’re reimbursing what employees are due while still not overpaying.

What are the methods for reimbursement?

As with the amount, the law lacks specificity regarding how employers should distribute reimbursements. At the end of the day, it is really up to the employer.

One way is to follow a standard reimbursement process through HR. Staff submit receipts and documentation so that the employer can compensate them based on what’s stated in their invoice. However, this can cause additional admin work for both the employer and employee. 

To simplify things, an employer ditch the reimbursement method in favor of a monthly stipend to cover cell phone-related expenses. But what happens if the cell phone expense exceeds the allotted stipend? In this case, it’s always good to have a backup reimbursement process in place. It is also worth noting that overspending is a very real risk with a stipend since expenses aren’t being explicitly tracked.  

In short, for simplicity and less headache, go for a stipend. To avoid the risk of overspending, choose a reimbursement process.

Of course, employers could avoid all of this hassle by simply giving employees work phones on a separate company phone plan. However, this is obviously expensive and requires additional IT and security support. This option should really only be considered for the most obvious use cases where cold calling is a routine part of the job.

When should employees receive the reimbursement?

This is also determined by the employer and usually weighed against factors such as how often cell phones are used for work. It can be distributed monthly, quarterly, or annually or along with payroll.

Are cell phone reimbursements taxable? 

Cell phone reimbursements are not considered income or an amount added to an employee’s wage, but they cover expenses for cell phone use for business purposes. So, technically, they are not part of an employee’s earnings. However, they are usually considered non-taxable as long as they are given for “substantial non-compensatory business reasons,” as stated by the IRS.

Again, the key here is to ensure that employees determine a reasonable amount to reimburse. For instance, if your employee’s monthly bill is $100 and you pay $105 as reimbursement for cell phone use, the excess of $5 should be returned to you, or they would need to file it as income, which can be taxable.

The essentials of a reimbursement policy

The key to complying with the California Labor Code 2802 is to have a policy in place. As you create this for your organization or revisit your existing rules, you must ensure that it covers the following: 

  • Who’s eligible for reimbursement? Look at your operations and determine which roles rely heavily on their personal cell phones to get work done. For instance, employees who usually work at the company headquarters with access to company resources are less likely to use their mobile plan than those who work in various locations and are more likely to use their cell phones for work-related purposes while on the go. 
  • What type of usage warrants reimbursement? Specify what work-related tasks done on mobile entails because it’s best to define what constitutes business and personal use. Typically, work-related usage includes company calls, emails, and accessing company platforms.   
  • What is the documentation needed? List the documents employees must submit, such as receipts, invoices, or billing statements.
  • How will the reimbursement be computed? State clearly in your policy whether you will reimburse down to the cent or assign a stipend. 
  • How will the reimbursement process go? Detail the steps involved so that your employees will know how to proceed. 

When you create a reimbursement policy, see that you’re using clear language and be specific as much as possible. Keep it accessible to all employees, and make sure to update it if need be. 

Other states with reimbursement laws

There is no federal law that requires employers to reimburse employees for work-related expenses. However, the FLSA states that you might need to if those expenses cause wages to go down below minimum wage. 

Aside from California, here are other places that have laws on reimbursing employees for work-related expenses:

District of Columbia – DC Municipal Regulations Section 7-910

On top of wages, employers must also “pay the cost of purchasing or maintaining any tools required of the employee in the performance of the business of the employer.”

Illinois – Illinois Wage Payment and Collection Act Section 9.5

An employer must pay back an employee for any necessary costs or losses the employee has while doing their job and directly related to work for the employer. ‘Necessary costs’ include all reasonable expenses or losses required for the job that mainly benefit the employer.

Iowa – Iowa Code 2024 Section – 91A.3(6)

Any expenses an employee has that are approved by the employer must either be paid back before they’re spent or within 30 days after the employee submits an expense claim.

Minnesota – Minnesota Statute 174.24 Subd. 5

Once employment is ended, employers must reimburse the total amount deducted directly or indirectly for any items listed in the previous subdivision except for uniform or clothing rental and maintenance by motor vehicle dealers. Once reimbursed, employers can ask the employees to return any items they the employee provided reimbursement for. 

Montana – Montana Code 39-2-701

An employer must cover an employee’s necessary expenses or losses that happen while doing their job or following the employer’s orders. 

New Hampshire – New Hampshire Revised Statutes Section 275:57

If an employee spends money for work-related expenses at the employer’s request, and these expenses aren’t normally covered by the employee’s wages or advance payments, the employer must reimburse them within 30 days after the employee provides proof of payment.

New York – New York Labor Law Section 198 C – Benefits or Wage Supplements

Besides any other penalties, if an employer agrees to pay benefits or wage supplements to employees, but fails to make the payments within 30 days, they can be charged with a misdemeanor.

North Dakota – North Dakota Century Code Section 34-02-01

An employer must reimburse an employee for any necessary expenses or losses from doing their job or following the employer’s orders, even if those orders were illegal, unless the employee knew they were illegal at the time.

Pennsylvania – Unreimbursed Business Expenses

Some employees might be able to subtract certain job-related expenses from their state income tax. Qualified expenses may include travel and mileage, certain mobile phone use, and office supplies. 

South Dakota – South Dakota CL 60-2-1

An employer must cover any necessary expenses or losses an employee has while doing their job or following the employer’s orders, even if the orders were illegal, unless the employee knew they were illegal at the time.

Seattle – Wage Theft Ordinance

Seattle employers must pay employees on a regular pay day. Compensations include wages, tips, and reimbursements for expenses incurred on behalf of the employer. 

Massachusetts

While Massachusetts law doesn’t explicitly mention about expense reimbursement, the state’s Attorney General strongly recommends employers to cover necessary and unavoidable employee expenses. 

Handle cell phone reimbursements with ease

Worried about cell phone reimbursement logistics? Maybe it is time you consider leaving it to the experts.

Workforce.com is a powerful HR tool that covers time and attendance, scheduling, and payroll — helping you comply with obscure labor laws every step of the way. Employees can check their shift schedules, clock in for work, update their direct deposit information, and much more, all in one place. 

Workforce.com is uniquely equipped to handle all things related to California labor compliance, including cell phone reimbursements. Within the system, you can easily classify employees eligible for reimbursement with special tags, provide them with a way to upload necessary documentation, and ensure that they receive their reimbursements.

Worried about a scheduling and time clock app adding to your reimbursement bill? Think again. Workforce.com offers flexibility since staff can access it from computers too—devices not tied to personal cell phone plans. This can help minimize or even eliminate the need for cell phone reimbursements entirely.  Regardless of how big your HR team is, you can rest assured that crucial admin tasks are taken care of. 

Discover how Workforce.com can help you with payroll, reimbursements, and more. Book a demo today. 

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11 HR Basics for Small Businesses

Summary:

  • Statistics show that small businesses employ 61.6 million people in the United States, almost half (45.9%) of the US workforce.
  • With lean HR teams, small businesses must learn how to properly prioritize HR-related tasks.
  • Human resource management has many areas, and technology can simplify it for small businesses. Workforce.com is a best-in-class platform that helps small businesses with employee relations, labor compliance, payroll, and more.

Small business owners wear many hats—manager, marketer, strategist, and sometimes even accountant. However, one of the most crucial roles you play is that of a human resources (HR) manager.

While your business may be small, it’s vital to establish solid HR practices. From hiring your first employee to managing a growing team, understanding HR basics is key to fostering a positive company culture and ensuring legal compliance. 

Whether you’re personally handling HR tasks or entrusting them to someone on your team, here are 11 HR basics to focus on for your small business.

1. Labor compliance

Regardless of size, businesses are governed by labor laws under the local, state, and federal governments. This includes rules around employee classification, minimum wage, overtime, anti-discrimination, and workplace safety. 

As a small business, it’s vital to familiarize yourself with applicable employment laws to remain compliant and ensure that your policies are aligned with labor rules. Furthermore, some rules may differ for small businesses and large corporations, so constantly checking and verifying is best. 

For instance, in Massachusetts, businesses with 11 or more employees must provide paid sick leave, while those with fewer than 11 employees are only required to provide unpaid sick leave. 

If you have doubts about the proper protocol for employing someone, you should always consult your state’s Department of Labor.

2. Employee handbook

An employee handbook is more than just an administrative document; it’s a vital tool that sets clear expectations, promotes consistency, and protects your business and employees. But most importantly, from an employer’s perspective, a handbook helps defend against employee lawsuits. Small businesses must prioritize having a well-crafted handbook from the start. 

An employee handbook provides a foundation for a cohesive workplace, ensuring everyone is aligned with company policies and procedures. Sure, employees may memorize only some of the policies in one sitting, but it pays to have this document readily available so they have something to refer back to. It’s vital for clarifying HR policies, work hours, code of conduct, benefits, leave policies, disciplinary procedures, termination process, separation agreements, and emergency procedures. 

Creating a thorough and compliant handbook is a must to prove your business exercises “reasonable care” towards staff. Don’t skip it; otherwise, you will most likely be in for a world of hurt in the future.

3. Job descriptions

Small businesses also need to have job descriptions for every position. And no, I do not mean job postings. I mean job descriptions. These are internal documents that outline critical responsibilities, required skills, expectations, and qualifications for each role in your company.

Referring to job descriptions is extremely useful for things like performance management, promotion, hiring, and terminations.Writing multiple job descriptions may be daunting and time-consuming, especially if you don’t have any in place and are trying to catch up. To help you get started, here are customizable job description templates that you can use.

4. Recruitment

A core area of HR is recruitment. Hiring employees is difficult, especially if you’re just now beginning to build your workforce.

Small businesses should create a recruitment process that outlines job postings, interviews, and background checks. Remember that HR is typically the first point of contact for potential hires, so ensure that you have a straightforward process of how recruitment will go. In addition, see to it that you’re not violating any anti-discriminatory laws.

5. Onboarding

Another vital part of HR is onboarding. A crucial step in this stage is gathering all necessary information and paperwork from an incoming team member. These include employee classification, W-4 and I-9 forms, social security numbers, bank details, marital status, and e-signatures.

Onboarding also integrates new hires into the company. An onboarding plan or roadmap should include steps that cover policies and procedures, training, company culture, and what’s expected of a new employee within the first week, first month, first 60 days, and so on.

Also read: Creating a Better Onboarding Process for Hourly Staff

6. Time and attendance tracking

Time tracking is the backbone of paying your employees correctly. Establish a process for capturing this information to ensure accuracy. Aside from employee time punches and overtime, you must also monitor your staff’s time off and leave balances.

There are several ways to track employee work hours. You can opt for paper timesheets, which are physical records of clock-ins and clock-outs. While simple to use, these are easily tampered with and time-consuming to verify. You can also use punch cards. While more straightforward to implement than paper timesheets, punch cards require clunky time clock machines – prone to mechanical failure and susceptible to buddy punching.

Cloud-based software is another option to track employee time. It can be automated and used across devices like cell phones, tablets, and desktop computers. Software like this typically has additional features to verify timesheets and prevent time theft. Whatever method you choose, go for one that will help you streamline the process of timesheet approvals; this is an area that can take up a lot of your HR admin time.

7. Employee scheduling

Employee scheduling is another significant part of running a business, big or small. While not typically a function of HR, in a small business the HR manager or owner typically will find themselves involved in creating and managing shift schedules.

Scheduling may seem straightforward, but it goes beyond setting and assigning shifts to staff. It is the art of balancing demand versus the number of employees you need to schedule. This is especially true for hourly workforces in the hospitality, restaurant, and retail industries.

Furthermore, you also need a process for when an employee can’t make it to work at the last minute. How do you find available qualified staff? It pays to have a set of steps to follow in such situations so you don’t end up short of people.

8. Payroll

Running payroll involves computing and distributing employee wages and salaries. Typically, you can run payroll yourself with the help of software, or outsource the work to a payroll service company. If you choose to calculate payroll yourself, you’ll need to track hours worked, employee classifications, applicable overtime, tax withholdings, benefits, and deductions. A lot goes into every pay run, and it can be more complex when you have hourly workers. 

Here are some of the basics you’ll need to start running payroll:

  1. Employer Identification Number
  2. W-4 Forms
  3. I-9 Forms
  4. State tax withholding forms
  5. Direct deposit authorization forms

You also need to establish a payment schedule. Payroll can be released weekly, bi-weekly, semi-monthly, or monthly. To determine which makes the most sense for you, consider business needs, cash flow, industry practices, and state laws or payday requirements.

9. Performance management and feedback

HR departments, whether in a small company or a big corporation, must implement a system for regular employee performance reviews. This is to retain top talent, boost employee engagement, and identify areas where more training may be needed. You must ensure that staff are on the right track and know the value they bring to the organization. When your employees are thriving, so does your business. It also pays to have a program for recognition and rewards to maintain morale and keep your team motivated. 

Performance reviews are not always formal sit-down meetings every month or quarter. In fact, it can be more spontaneous and informal. Coaching can be more in the moment, especially when your managers are on the floor with the team. 

Gathering employee feedback is also an important part of this. Setting up a system where staff can tell you what’s working and what needs to improve is advisable. Use the feedback to optimize your operations and spot potential problems. 

10. Employee development and training

Training and development is an excellent followthrough to your feedback process. Provide training opportunities to help employees develop their skills and advance their careers. This is a good step in preparing them for a more significant role. In some cases, though, additional training is conducted to bridge a gap and bring employees to where they currently are to where you want them to perform. 

It’s also vital to conduct compliance training. Ensure employees receive mandatory training, such as sexual harassment prevention or safety training.

11. Recordkeeping

HR is also responsible for maintaining accurate and confidential employee records such as personal information, performance evaluations, and disciplinary actions. They must also secure compliance documentation and compliance records, such as employment eligibility and payroll records. 

Why is HR important for small businesses?

Small businesses must prioritize HR because it’s the backbone of any operation. Whether you have a dedicated team or just one person to oversee it, you must perform HR responsibilities. You need to be compliant, hire for essential roles, retain top talent, and pay employees correctly to succeed.

While there may be some differences between laws for small businesses and big corporations, the fact remains that HR-related responsibilities exist for both. 

As a small business, prioritizing HR this early gives you an advantage because you can set the tone early and ensure your business is on the right track. It may require a lot of hard work now, but instilling these habits and processes early on will make it easier for you as your business grows.

The benefits of HR software for small businesses

Properly managing the full scope of HR is a daunting prospect for a small business. Typically, HR takes a backseat to more functional duties that keep a business running on a daily basis. However, by using software to shoulder some of the responsibilities of HR, smaller businesses can successfully set up a strong foundation and push through some key initiatives.

Here are the benefits of HR technology and why investing in it is a wise investment for small businesses.

Time and cost

HR management takes time, and software can significantly reduce time spent on manual and administrative tasks such as payroll, time and attendance tracking, and benefits administration. Having a cloud-based system in place frees up time for small business owners or HR staff to focus on strategic tasks. Furthermore, it reduces administrative costs related to paperwork and long hours spent on manual processes.

Improved compliance

HR software helps keep your compliance more airtight. Since it automates most of the processes, you can rest assured that you’re keeping a record of every vital information related to compliance and audits. It also helps track deadlines for compliance-related tasks and provides reminders for legal requirements such as employee eligibility verification and OSHA reporting.

Accuracy

Because HR software keeps employee data centralized. Since it is a single platform to store and manage all employee information, it’s simple and quick to update records, manage benefits, process payroll, and optimize employee schedules. 

HR software simplifies benefits enrollment by providing a user-friendly platform for employees to select and manage their benefits, reducing the administrative workload and improving accuracy. 

It also ensures that all time and attendance records are accurate, making timesheets easier to process every pay period.

Simplified processes

HR is rife with many administrative processes, and if you do them manually, you can quickly find yourself buried in paperwork, tracking employee information, and sifting through legal rules. HR software can simplify all of that for you. 

It can help you automate and standardize onboarding, benefits enrollment and management, time and attendance tracking, payroll processing, compliance, and even some areas of performance management. 

Because HR technology streamlines much of the administrative work, you can focus on making more strategic decisions, such as improving employee benefits package, optimizing schedules according to demand, addressing workplace conflict, and taking action on employee feedback.

Employee self-service and transparency

Employee self-service is another core capability of good HR software. It lets your employees check their schedules, view their leave balances, check their benefits, and update their information. 

Employee self-service capability should begin with onboarding, where new hires can upload their information and necessary documents to your systems. As a result, you avoid double entries, minimize errors, and spend less time on admin. 

Self-service portals often allow employees to update their personal information, view pay stubs, request time off, and access the employee handbook and company policies.

Data-driven decision making

HR software equips managers with better scheduling and workforce planning. An HR software that tracks demand can quickly provide insights into how to create more profitable shifts, ensuring that you’re not over or understaffing. It can also help you determine whether to hire more people or optimize your team’s hours.

Through analytics and reporting features, you can also create strategic moves by tracking turnover rates, employee sentiment and satisfaction, and recruitment efficiency.

Workforce.com simplifies HR for small businesses

Workforce.com understands the ins and outs of running a small business, especially those employing hourly workers. Whether a small business owner or a single team member tasked with HR duties, Workforce.com can be your HR sidekick.

Workforce.com is an all-in-one platform that handles HR, scheduling, and payroll in one single platform. It encompasses all areas of the employee lifecycle, from recruitment to offboarding. Ready to meet your HR assistant? Book a demo to see Workforce.com in action. 

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How to Terminate an Employee: Essential Dos and Don’ts

Summary:

  • Employee termination is a delicate art of upholding company policies and maintaining a good relationship with employees leaving the company. When handled wrong, it can result in legal repercussions.
  • Having a policy for how to terminate employees is vital. But knowing when to do it is equally crucial.
  • Use an official Employee Termination Letter when letting someone go. Also, be sure to properly document performance records and calculate final paychecks in your HR & Payroll system.

Terminating an employee is a challenging yet sensitive process for managers and business owners. It requires a balance of empathy, professionalism, and strict adherence to legal and organizational policies. When handled correctly, it can protect the company’s reputation, maintain team morale, and uphold the dignity of the departing employee. On the other hand, mishandling employee termination can lead to legal repercussions, a toxic work environment, and damage to company culture. 

Here’s a rundown of best practices on what you must do and mistakes to avoid to ensure that your employee termination process is carried out with fairness, compassion, and respect for all parties involved. 

The Dos

Do follow company policy and legal requirements. 

Every organization should have a policy regarding employee terminations. This policy goes beyond a list of paperwork and items that employees need to return before they leave. With this in place, you would have a clear framework and set of steps to follow when letting go of an employee. 

There are several reasons why employees need to be let go, and your termination policy should clearly outline a process for when such conditions are met. Employment typically ends for the following reasons: 

  • Voluntary termination happens when employees decide to leave an organization. Once an employee turns in their resignation or notice, the turnover period usually lasts two weeks to a month, depending on what’s stated in your company policies or what you have discussed with the employee.

The steps for when an employee resigns are pretty straightforward. They will be given a list of things they need to return and informed of when they can receive their final paycheck.

  • Involuntary termination happens when the employer initiates it, and there are several reasons why employers can do so. First, companies experience changes that prompt them to downsize, let go of redundant roles, lay off employees, implement furloughs, or close the business completely. Second, employees fail to perform or commit major violations or offenses.  

Involuntary termination is more challenging to navigate because more legalities must be accounted for. For instance, is the employee given ample opportunity to improve if the termination is due to poor performance? Was the issue communicated clearly to them? You may be liable under the law if you answer no to both questions. 

Your termination policy should clearly state offboarding processes specific to the nature of the termination. More importantly, every rule should adhere to applicable labor laws to avoid non-compliance and potential lawsuits.

For instance, there are employment laws governing when final paychecks should be released. Depending on what states you operate in, you would need to release the final paycheck on the actual last day, the next scheduled payday, or a specific number of days after the termination of employment. Here’s an updated guide on severance pay and final pay rules for 2024. 

Lastly, this policy should be included in the employee handbook.

Do comply with all applicable termination laws.

The dismissal process is straightforward if an employee leaves your company on their own accord. All you need to do is determine their last working day, prepare the necessary paperwork, provide a list of things and responsibilities the departing employee needs to turn over and issue the final pay. 

However, if an employee needs to go for involuntary reasons, you must take additional steps to ensure a smooth and compliant transition. Get thorough legal counsel to ensure that you comply with all termination laws that apply to your business. In particular, ensure you are following your state’s final paycheck regulations. 

Do document everything

Prepare the necessary documentation ahead of time. While nearly every state in the US adheres to the employment-at-will doctrine, it’s good practice to have a paper trail of performance evaluations and disciplinary records that support your reasoning for terminating an employee. You should also create a termination letter, an official document to notify employees that they are being let go. It must include the reason for termination, effective date, and next steps, such as turning over company assets and releasing final pay.

Termination letters may seem straightforward, but you must be careful when writing them. As an official document, they should stand in court if needed. Ensure that they are factual and include all the necessary information. Here’s a free template and guide to writing employee termination letters.

In addition to the termination letter, it is good to prepare and refer to employment contracts and other vital data that will help the employees understand why they are being let go. If you offer a severance package, discuss what’s included and how it will be computed.

Do have a termination meeting to notify the employee privately. 

Regardless of the reason, it would be best to notify the employee privately that they are being let go. It’s never easy to receive such news, and doing it in front of others will make it even more painful. 

A face-to-face meeting keeps their dignity intact, especially if they are being let go for job performance issues. 

It is important to keep these meetings short, straightforward, and professional. During the meeting, present them with the facts, such as the reason for the employment termination, what company property they need to return, when they can expect their final pay, and other next steps. End the meeting amicably, wish them well, and thank them for contributing to the company. 

Consider recording the meeting to ensure that all your bases are covered. Be sure to inform the employee beforehand that the meeting will be recorded. 

Do have a witness when notifying employees that they are being terminated. 

Having a third party present during the meeting is another good idea, both for the employee and the manager. 

Typically, the witness is a human resources person. HR professionals are well-versed and have the expertise to handle terminations, and it can help frontline managers carry out an otherwise daunting task. 

Do provide assistance when possible. 

Depending on the termination circumstances, consider offering recommendation letters to terminated employees to help them find new employment. This can be an excellent way to end things amicably, especially for team members who are let go because of downsizing or layoffs.

The Don’ts

Don’t dismiss employees without personally talking to them. 

Firing someone is never easy and typically comes as a blow, especially for unexpected reasons like layoffs or something more sensitive like “for cause” termination. 

While a termination letter is, in principle, a tool to notify employees that they are being let go, it’s not advisable to deliver the news through this channel only. Think of it as documentation that makes everything official and prevents legal repercussions. But at the end of the day, it’s merely that—a formality. 

When letting people go, it’s best to talk to them in person before presenting formal letters and documentation. A face-to-face dialogue helps soften the blow, demonstrates respect, and allows employees to ask questions regarding the termination. 

Don’t terminate employees on a whim. 

Termination should always be the final recourse because firing an employee without due process can have legal consequences. Letting people go should never be a knee-jerk reaction to the first sign of financial challenges, unsatisfactory performance, or conflict with other staff.

If a team member is not performing up to par, consider putting them under a performance improvement plan or PIP. A PIP is a documented program to help underperforming staff members improve. If an employee falls short of the goals set under the PIP, then termination should be considered. Here’s a guide and free template for creating a performance improvement plan. 

Even if an employee violates a company policy, firing them on the first offense is often not wise. Make sure that they are given the chance to correct their behavior and provide warnings accordingly. There should also be ample investigation and facts before letting employees go due to offenses like tardiness or conflict with another co-worker.

Also read: 3 Mistakes with Employee Conflict Resolution – How to Avoid

Don’t overlook the right timing. 

When it comes to employee termination, the when is equally important as the how. 

While it seems there’s never a right time to announce that an employee is being let go, it’s still essential to time it well. In some cases, firing people at the wrong time can even result in legal risks. 

So when is it NOT advisable to terminate an employee? When they are on medical leave. While an employee who’s under FMLA leave is not exempt from termination, you need to tread carefully. Certain conditions need to be met before you can let go of an employee undergoing said leave. Make sure to consult with your legal team to handle it properly. 

Other times when it’s not advisable to fire employees include: 

  • When they are going through difficult challenges, such as getting diagnosed with a severe illness or getting divorced
  • When they are on vacation or about to celebrate their birthday
  • During December or January, when they would be dealing with the holidays and the bills that come with it
  • During Fridays, because employees may have questions or clarifications. If termination is done close to EOD or on the weekend, it’s not helpful to wait through the weekend before they can get answers or details. Doing it during the midweek is the best way to go. 

Timing is crucial because it can result in a legal issue. However, whether there is a legal risk or not, it’s best to terminate employees with as much consideration as possible. Look into how much your operations could allow and time the termination accordingly. Losing a job is the last thing anyone would want. Make it as manageable for your employees as possible. 

Don’t forget to check in with remaining staff members. 

Employee termination can also affect staff who remain with the company. Ensure you check in with current team members to see how they feel about the situation. 

It’s normal for the remaining staff to feel anxious about their employment, especially after layoffs. Schedule a time to sit with them so you can address their concerns. Use this opportunity to gauge your team’s sentiments and take quick action if you think they are likely to disengage and quit. 

After terminations, it’s best to stay transparent with the remaining team. Have an open-door policy and answer their questions honestly. 

Don’t insinuate that the decision is not final. 

Don’t give false hopes when breaking the news to employees. It has to be clear and direct that they are being let go, and nothing can alter that decision. Don’t allow room for any vagueness or misinterpretation, whether verbal or written.

Don’t part ways on a bad note. 

Terminations, for whatever reason, will never be a comfortable discussion. However, it’s always best to part ways amicably with a departing employee. Even if there’s conflict, it’s pointless to rehash the negative things that happened. At this point, it’s best to focus on the positive sides of their tenure with the organization. 

Say goodbye on a positive note, or at the very least on a professional and civil level. If you think that there’s a risk of violence, have someone nearby to assist you, and don’t engage. 

Workforce.com can help lighten the load of employee termination

There are a lot of areas concerning employee termination, and Workforce.com can help simplify them for you.

Employee termination usually requires extensive documentation of time and attendance, performance reviews, payroll details, and other information related to calculating final pay. Workforce.com can help you gather all of this data and streamline the termination process.

Discover more about how Workforce.com can help you. Book a demo today. 

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3 Mistakes with Employee Conflict Resolution – How to Avoid

Summary:

  • 85% of employees report experiencing workplace conflict.
  • Conflict at work results in personal attacks, frequent absences, and even health issues when not handled properly.
  • Conflict resolution takes up valuable time. Have processes and automation in place to handle HR admin work while dealing with workplace issues.  

Workplace conflicts are inevitable to some degree, but mishandling them can lead to more significant problems. Whether it’s personality clashes, differences in work styles, or disagreements over responsibilities, managing these conflicts effectively is crucial for maintaining a healthy company culture and productive work environment.

According to a study by CPP Inc., 85% of employees experience some kind of conflict. When managed right, conflicts can result in a better understanding and working relationship among the employees, fostering a more positive work environment. But when not handled properly, conflict can transform into bigger problems such as personal attacks, frequent absences, and, yes, even health issues. 

Unfortunately, many managers and HR professionals make common mistakes when dealing with employee disputes, often exacerbating the situation rather than resolving it. In this article, we will explore some of the most frequent pitfalls in employee conflict management and provide practical strategies for avoiding them. 

Mistake 1: Sweeping things under the rug

A study by CIPD found that approximately 31% of employees who experienced conflict felt that their concerns were not taken seriously by the person they reported to, and 48% believed that the interests of the other party were given priority over their own. 

Conflicts are typical in the workplace, but like most problems, they’re never really out of sight or out of mind. If anything, unaddressed conflicts can escalate to bigger issues, such as people leaving jobs, reduced productivity, or a full-blown outburst that can compromise safety and operations. So, the best thing is to tackle conflicts head-on. 

How to avoid: 

Unfortunately, managers and team leaders may tend to avoid conflict simply because they don’t know how to deal with it properly. The good news is conflict resolution skills can be developed. Equip your frontline managers with the right tools and training to help them navigate different communication styles and improve their problem-solving skills.

According to the same study from CPP, Inc., 60% of employees didn’t receive basic training on conflict management and resolution. The others who did, on the other hand, said that the training equipped them to manage workplace conflict and reach positive outcomes or solutions. 

Train your managers to identify different types of conflict effectively. More often than not, the root of the problem is something deeper and something that’s not always apparent on the surface. Is the issue rooted around a task, or is the problem more relational? If it’s the latter, conflict typically stems from differences in values and emotions. Emotional intelligence comes in handy in such cases. Train managers to improve or develop how they read emotions, empathize with others, and manage feelings. Active listening and knowing to use neutral language are also vital for managers and HR professionals.

Administrative tools are equally important as conflict management training, enabling managers to spend more time on the frontlines spotting issues and resolving conflict. Software like Workforce.com streamlines and automates HR processes, scheduling, timesheets, and payroll. When frontline managers finish admin tasks quickly, they get more time on the floor with staff, leading to better conflict management. 

Aside from the functionality mentioned above, Workforce.com also has a shift feedback feature that allows employees to rate their shifts. They can also say what was effective and what needs improvement. Using this information, managers and supervisors can help spot potential conflict or have a clearer perspective of what’s causing tension or challenges.

Webinar: How to Design a Retention Strategy for Hourly Staff

Mistake 2: Not communicating the outcome of the investigation

It’s great when employees are given the chance and platform to air their grievances, but that’s just the start. Employers often miss the other important part of conflict management, which is letting all parties involved know the outcome of the investigation and what next steps to take. 

Some team leaders may treat post-conflict procedures as an out-of-sight, out-of-mind matter—this definitely won’t work. Just because time has passed after the initial conflict doesn’t mean that everything should go back to normal. If anything, leaving team members hanging would further fester ill feelings, cause disengagement among staff, and even increase attrition. 

How to avoid:

Establish a process for conflict resolution and stick with it. Designating clear ground rules sets the tone and direction. The clearer the steps, the higher the chances of issues being resolved. It’s also easier to track the case’s progress and determine roadblocks to conflict resolution.

Every organization’s conflict resolution process differs, but here’s a brief framework to help you create yours. 

  • Determine the source of conflict – Gather information. You can begin by getting statements from all involved parties but don’t take anything at face value. Ask the right questions to probe further and determine the root cause of the issue. Watch out for possible indicators to better understand the reason. For instance, is the issue really about a co-worker, or could it be because of another underlying issue rooted in your operations? In addition, you can look at supporting data from your systems if needed, such as performance evaluation or time and attendance data.
  • Define possible solutions – Ask the people involved how they would want to see the issue resolved. Doing so will give you insight into their point of view and what they value most, and that’s key to coming up with the best possible solution that everyone can agree on.
  • Communicate the solution – Once you develop a solution, communicate it — whatever it is. Make sure to explain how the resolution benefits all parties involved and the organization as a whole. The key here is not always to create a perfect situation for everyone but a space where both sides can move forward, agree, and collaborate.
  • Document the process and agreement – Make sure to document the agreement and ask them for steps they would take to avoid the same issue or conflict moving forward. Note that preventive measures ideally must come from all parties involved, including the organization, if need be. If it would result in change in company policies, ensure that it is appropriately communicated to everyone else and reflected in your employee handbook. 

When conflicts arise, staff must see accountability from the parties involved. It’s not about revenge or getting back at the other but about being heard and seeing the company’s rules correctly implemented. 

Furthermore, seeing conflicts resolved and given the proper attention would encourage staff to speak up and provide feedback. Having that culture would be beneficial in terms of improving your operations and employee engagement. 

Mistake 3: Having a reactive approach to managing conflict

In an ideal world, there would be no conflict in the workplace. But we’re not in an ideal world. Conflict will always eventually arise. However, most organizations tend to fall into the trap of taking a reactive approach to conflict or not taking an approach at all. And this is where things can get messy. 

Typically, most organizations’ policies tend to be reactive, which means they only take action once conflict presents itself. While conflict cannot be completely avoided because people are…well… people, having a more active approach to dealing with issues is still key. 

How to avoid: 

Create a work environment that’s less prone to conflict. What does that look like exactly? 

First, you must equip your organization with tools that allow work to be clear. Sure, the job may have nuances, but it’s best to have a system for clearly black-and-white areas. Take, for instance, software like Workforce.com. It helps reduce or avoid disputes around time and attendance, scheduling, PTOs, and payroll because it’s automated. Should there be any concerns, they are easy to clarify or correct since there is only one source of data. 

Furthermore, you need to create a feedback system that helps spot conflicts and prevent them from blowing up. Aside from regularly scheduled check-ins and performance reviews, it also helps to incorporate a more spontaneous feedback process. Workforce.com’s shift rating and feedback can help. Asking people to rate their shifts can be crucial to identifying conflict early on. 

For instance, if consistent feedback or comments about how a certain piece of equipment delays closing time occurs, you can address it before it causes any further tension among staff. Another example would be if you’re getting reports about staff not endorsing properly for the next shift; you can also address it more ahead of time. 

Typically, conflict starts with small things or minor grievances. By creating a working environment where you can identify those triggers, you can manage conflict before it becomes big enough to disrupt your operations. 

Also read: 10 Best Practices for Employee Surveys

Tips to improve your conflict resolution strategy:

Have an open-door policy

Conflict needs to be brought to light before it can be solved. But how would that happen if employees don’t feel safe speaking up?

Staff may refuse to talk about conflict or concerns bothering them because they fear retaliation. In some instances, they don’t know where to begin. Having an open-door policy promotes open communication and a safe space for your employees to come up and talk to you if they’re facing any issues. 

When you implement such a system, ensure staff are aware of it. Reiterate that they can access their superiors if they need to raise concerns. Ensure, as well, that whatever’s discussed will be confidential or only be disclosed to others to the extent necessary to resolve issues. 

Practice active listening

In conflict management, facilitators must know how to listen, not just to respond but to understand. 

Active listening is vital to gathering information for conflict resolution. It takes into account everything being communicated, including nonverbal cues. When you listen actively, you become more conscious not just of the facts being stated but also of the person’s tone and emotions. 

Furthermore, it also pays to ask questions to validate information and recap what was discussed. 

Understand different conflict management styles

People tend to approach conflict in different ways. Here’s a general overview of these styles and why people resort to them. 

  1. Accommodating – This approach means setting aside one’s needs to give way to the other party’s needs and concerns. People tend to lean toward this approach when they want to keep the peace or if they realize they’re at fault and just want to move forward.
  2. Avoiding – As the word suggests, it means to steer clear of conflict. Some people approach conflict this way when they think the issue is trivial or not worth fighting over. Meanwhile, others avoid facing the problem because they need more time or space to think about it.
  3. Compromising – This approach aims to reach a common ground between two conflicting parties. Note that this approach aims to reach a solution that both parties can be okay with but not necessarily fully satisfied with. While it is not the most ideal, reaching a compromise can cause things to move forward, especially when there’s a deadline.
  4. Collaborating – Unlike compromising, collaborating is about reaching a win-win situation for both parties. This approach aims to reach a resolution that both parties can be happy with.
  5. Competing – Unlike accommodating, competing means standing one’s ground and not budging until the issue is resolved how they see fit. This approach is common among people who think that a rule or law was violated or if they believe that they are in the right. 

Understanding conflict resolution approaches is not just about finding the best way to tackle issues as a manager. It’s also a way to gain deeper insight into why employees approach a situation differently. For instance, if you learned of an issue concerning an employee, yet they chose not to report to you, you would want to probe if it’s just a non-issue for them or if they fear resentment.  

Use a system that keeps employee and workforce data accurate

Conflict can stem from workplace disputes around time and attendance, schedules, payroll, PTOs, and other employee information. That’s why it’s best to use a system that records all of this information, giving you a paper trail to refer back on.  

Information and data from a single source can help thwart conflicts or clarify things more easily. 

Don’t fall behind while resolving conflict 

Conflict resolution is a stressful and time-consuming responsibility for HR practitioners, especially in smaller companies. Resolving issues eats up valuable time, which is often spent on administrative tasks. To prepare for inevitable workplace conflicts, equip yourself with software that handles the admin work for you so you don’t fall behind. 

Discover how Workforce.com can streamline PTO requests, payroll processing, timesheet approvals, applicant tracking, and more so that you can handle strategic HR better. 

Schedule a demo today. 

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Creating a Better Onboarding Process for Hourly Staff

Painting of an Astronaut Husky sitting at a computer

Summary:

  • Employee onboarding significantly impacts productivity and retention. Given the nuances of hourly workforce operations, this process is more complex.
  • Technology can help streamline onboarding, but communication and human touch are crucial to successful onboarding. 
  • Onboarding processes and materials should be regularly assessed to ensure they remain aligned with and relevant to what happens on the frontlines.

If recruitment is about attracting employees, onboarding is about keeping them. The goal for any new hire is to make them productive members of the team as soon as possible—the onboarding process is key here. And no, we’re not just talking about giving them the company handbook and calling it a day. 

There’s no one-size-fits-all approach to an effective onboarding process. It greatly varies by industry, role, and whether you are managing an hourly workforce. If you are, this guide is for you. 

If you are just looking for the basics, check out our free onboarding checklist template below:

Free onboarding checklist

If you want more insight into onboarding best practices, read on. But before we dive into how to optimize employee onboarding for hourly staff, let’s take a look at the reasons why you should prioritize this stage of the employee lifecycle. 

Why a well-structured employee onboarding process matters 

Onboarding sets the tone for the rest of a new hire’s employment. Getting it right can massively impact a number of things, including:

Productivity

Focus on detailed onboarding protocols if you want a new team member to hit the ground running as soon as possible. New hires get productive quickly when they have a clear roadmap to follow. When employees are provided with all the necessary information and tools, they learn the ropes faster. However, note that crucial information goes beyond the handbook and training materials. Some details are best understood when they have an assigned mentor or partner while on the job. 

Bottom line

Poor onboarding can hurt your organization financially. The average cost of hiring a new employee is $4700, according to SHRM – and this only covers posting job ads, doing background checks, and interviewing. Training cost is another story altogether. It ranges from $481 to $1240 per trainee, spending on company size and industry, one study shows. 

So, how do you prevent all that money from going down the drain? Improve the employee onboarding experience. The costs associated with onboarding and training will all be for nothing if new hires decide to leave shortly after their first day. 

Employee Retention

According to the 2023 Training Industry Report, excellent onboarding can improve retention by 82%. New hires will most likely stick around when engaged from day one. Good onboarding ensures they are not just stuck in the back room in front of the computer, glossing over training and being overloaded with information that they wouldn’t likely remember by the end of the week. It’s about having a curated program that covers all the necessary training yet still allows room for hands-on learning and peer-to-peer interactions.

How to Improve Onboarding for Hourly Employees

The nature of onboarding for hourly employees differs greatly from onboarding in a corporate environment. “It’s more challenging to nail down for hourly-based industries or those employing shift-based workers because of all the nuances around it,” says Laura Timbrook, a national board-certified health and wellness coach, international speaker, and well-being strategist for manufacturing and other shift-working industries. 

Standardizing onboarding is a good place to start, but there are many considerations for integrating new hires into an hourly workforce. Here are some ways to work around challenges and improve how you integrate new hires into your team:

1. Determine how long onboarding is going to take

Typically, an onboarding program takes at least three months. However, it might not always be the case for hourly employees. 

First, consider whether the position is a seasonal role or a more permanent one. If it’s the former, you wouldn’t have three months to onboard them because the season may be over in three months’ time. How, then, can you ensure that onboarding is still effective within this timeframe?

It’s all about clarity. Having a list of tasks can help, but there’s still a learning curve. This is where having them work alongside a more experienced employee is essential. “If we can buddy seasonal workers with somebody who can show them the ropes quickly, that would be key. Our systems can often provide a checklist, but it can be too much if they also need to learn the system,” says Laura. 

Streamlining the process is crucial, especially during a short onboarding period. It should involve having the right systems so seasonal employees can quickly understand workflows and having somebody working with them who can easily address questions they may have along the way.

Meanwhile, you’d have more room to work with if you’re onboarding a new hire for a permanent position. Even so, the whole process must be curated to cover the administrative, compliance, and practical aspects of the role. Prioritization is key here, which brings us to the next tip.

2. Set priorities and milestones. 

One thing to avoid when onboarding new hires is to overwhelm them with information and admin work. 

“A lot of times, we get these employees in and get the legal paperwork out of the way, and then we just throw them on the floor. It’s a sink-or-swim scenario. As an employee, that won’t make you feel good about your job. It’s not going to make you feel good about yourself. And it won’t make you feel good about the organization,” shares Laura. 

It’s crucial that you set priorities and determine what a new employee must accomplish and by when. Space out tasks so that onboarding is more dynamic instead of spending a lot of their early weeks on paperwork. 

In some roles, mandatory compliance training must be completed before an employee can perform the job. If an employee needs to go through lengthy training material, check in with them. Otherwise, you can streamline the process by dividing a new hire’s hours between theoretical training and practical learning on the floor. 

“We really need to look at what they need by day one. Are we going through compliance training because, say, there’s a cardboard crusher they need to know from OSHA how to operate safely, yet they’re working the cash register? So do they really need that training on day one?” says Laura. 

The goal of onboarding is to complete the most important tasks that are prerequisites for new hires to get up and running. So, look into the training needed, see if you can space it out, and optimize the onboarding process around it. 

A good place to start is to outline what you expect to happen before an employee’s first day, first week, first 30 days, and so on. Having a schedule keeps things organized and expectations clear. 

Here’s an example of an onboarding timeline that lasts for 3 months and what typically happens in each period: 

Before the first day or preboarding

  • Documentation and paperwork – Send job offer letters and lodge paperwork contracts, tax forms, and IDs into your HR system.
  • System profiles—Once their information is entered for payroll, copy all of it into any operations systems new hires might need to use daily. This could mean setting them up in your scheduling and time clock system, project management tool, POS platform, and much more. 
  • Workspace and materials – Set up workstations or prepare work materials such as uniforms, IDs, lockers, and access to company systems.
  • Answering FAQs – It’s normal for new employees to feel anxious during preboarding because stepping into a new role involves many firsts. Sending them a message that covers vital information can help them with the first-day jitters. Doing a quick call to address any initial questions they may have can also help.
  • Prepare a welcome email or note for the new hire. It’s advisable that this note not be system-generated but personalized by the team they will be joining. 

The first day

  • New hire welcome – Greet the first hire upon their arrival. Introduce them to other team members and give them a quick workplace tour. This is also the time to hand them a welcome token or a note from their manager or teammates.
  • Employee orientation—Limit the first-day orientation to the essentials. A brief discussion about the organization and its policies should suffice. This information is also in the employee handbook, which your staff should have access to anytime.
  • Getting settled: Show the new hire their work area or station. On the first day, provide access to learning resources and e-learning platforms. You can also set some time for the new team member to get acquainted with other staff. An all-hands meeting or going on a team lunch are great ideas.

The first week

  • Training
    • Job-specific training: During the first week, it’s time to start discussing what happens day-to-day on the job. Start with the basics and gradually ease into the more complicated parts of the role.
    • Mentorship: Assigning a mentor to a new hire helps with coaching and makes feedback more fluid. Mentors aren’t necessarily managers or team leaders; they could simply be more experienced coworkers. 

“A buddy system can take the load off managers who are already dealing with a lot. Having an onboarding buddy could answer nuanced questions that seem minute to everybody else but big for the new employee,” says Laura. For instance, this could be questions around seemingly simple things like filing leaves, how to operate the time clocks, or when the next pay run will be.  

Sometimes, the buddy doesn’t even have to be tenured. They can be someone who was onboarded maybe two or three months prior, depending on their performance. It helps because they just went through the same process and probably had the same questions any new hire would have.  

  • Goal-setting: Lay the groundwork during the first week. Discuss how the rest of the onboarding process will go and what is expected of them. The last thing any new hire wants to feel is lost, so set the tone, provide direction, and discuss metrics at this stage. New hires will likely perform better if it’s clear what they need to accomplish. In addition, include regular check-ins in your onboarding schedule.

The first month

  • More Training: This is fairly obvious, but the training doesn’t just cease after the first week. After new hires learn the basics of their job function, it is important to evaluate their improvement over several weeks and make adjustments accordingly. 
  • Performance check-in: Discuss with the new hire how they are faring with goals and expectations. This is also a good time to ask their feedback about the onboarding process and the job so far. If they cite anything that needs improvement, look into it and make changes as necessary. 

The first 90 days

Within the first three months, there should be 30, 60, and 90-day check-ins or performance reviews where you discuss progress, achievements, and areas for improvement. 

At this point, you can also start probing into long-term career goals since the new hire will most likely have a grasp of the work and culture, and you, as their manager, will have figured out the type of development you see for them. Discuss their aspirations and see how their performance and current role will tie into that.  

A feedback loop should also be established at this point. It’s important to note that feedback should not be limited to formal check-ins or sit-down meetings. Try to implement feedback into daily routines, such as right after a shift. 

3. Streamline onboarding with technology.

While everyone loves to theorize about strategy and engagement, realistically, the biggest lift of employee onboarding is on the administrative side of things. However, this shouldn’t be the case. The right technology should reduce the time you spend on admin work, giving you more time to focus on engagement and training.  

Effective employee onboarding software should let you do the following:

  • Capture new hire details and send them straight to HRIS, scheduling, and payroll. Ideally, onboarding should be the same system you use for applicant tracking and hiring; this way, you won’t need to waste time manually re-entering applicant information once you hire them. 
  • Complete new hire paperwork forms such as I-9 and W4, collect e-signatures, and get acknowledgment of company policies. A good onboarding platform allows you to go paperless. 
  • Track onboarding progress and send follow-up reminders to new employees to accomplish specific tasks.  
  • Let staff update their details. Adding a new bank account or changing an address should not require lengthy paperwork or email exchanges. An efficient onboarding tech allows employees to update their personal information through a self-service portal. It’s best if they can do so via a mobile app.  
  • Allow staff easy online access to resources like employee handbooks, HR policies, and training guides. Sometimes, new hires grapple for information not because it’s unavailable but simply because they can’t find it. 

“HR spends a ton of time and money writing these safety protocols and putting this all together. They need to know where that is because half of the questions a new employee might have asked or need to ask are in the employee handbook. They just don’t know where it is,” shares Laura.  

Aside from the employee handbook, staff must have a single place to find training materials and other details crucial to their day-to-day work, such as their shifts, leave balances, payslips, and timesheets.  

Keep in mind that onboarding is not a siloed process and should integrate well with other areas of workforce management. Ensure your onboarding syncs with time and attendance, scheduling, payroll, and HRIS.

“Technology is about 60% of onboarding. It has an amazing power to streamline things,” says Laura. However, as much as technology plays an important role, the human touch is still crucial. Your onboarding platform may have all the bells and whistles, but that will be for nothing if the employers fail to engage and communicate well with new staff. The key is to automate and simplify what you can with technology so that you can focus on the overall employee experience.  

Also read: A guide to writing employee performance reviews

4. Review and update your onboarding process.

Onboarding templates, materials, and processes should keep pace with operational changes. Every company policy change should also be reflected in onboarding. However, this is easier said than done. 

Managers and HR must be transparent about these things. A common pain point is that onboarding processes sometimes don’t align with what’s happening on the floor. 

“Often, the people that design the onboarding are in the corporate office. Hourly wage employees, whether they’re in plant production, retail, or transportation, have a much different experience on the ground. We’re often not making those connections,” shares Laura.

So, the key to bridging that gap is ensuring that frontline managers and HR collaborate to design onboarding plans. Managers can provide more context about what actually happens during operations, and HR can help adapt the program according to that insight. That way, the process is much easier to implement and makes the most sense for new hires. 

Another key area is revisiting the review and feedback process during onboarding. Take, for instance, the 30-—to 60-—to 90-day reviews. Typically, these sync-ups are conducted by the direct manager. However, some organizations mix it up and allow the new hire to talk to different people within the company during these check-ins. 

“I saw an organization where for the first 30 days, new hires deal with the direct managers. And then at 90 days, a general manager or a director comes in,” shares Laura. Such practice provides an opportunity for more open communication across different levels. Also, it can be especially helpful if the new hire staff has concerns with their direct manager. 

Webinar: Best Practices for Onboarding Hourly Staff

5. Understand the role of everyone involved in onboarding.

New hires will have different touch points within the organization, which can influence their decision to stay or leave.

At first glance, it seems like HR is the only team that interacts with new hires during recruitment and onboarding. But they’re not the only key players here. Managers also have a significant role in training, so it is crucial to ensure communication is aligned across the board between HR and management.

Part of designing an onboarding process is understanding the role of everyone involved. Aside from HR and hiring managers, identify if you need to involve other staff in the process, such as onboarding buddies or mentors. Set expectations and provide coaching on how they can balance their tasks while guiding new staff. 

Simplify employee onboarding with Workforce.com

While all of the tips we’ve given are a good start, the secret to better onboarding really comes down to connecting it with your Applicant Tracking System. 

Too many HR departments struggle with needless manual reentry. Ideally, all of an applicant’s information should transfer seamlessly to the rest of your software systems. 

Luckily, you can do this with Workforce.com. 

As an all-in-one platform for hourly teams, Workforce.com automates admin work throughout the employee lifecycle. Staff have one profile with one login starting from when they apply for the first time. All of their data flows from onboarding to scheduling, HRIS, and payroll without data re-entry. 

Learn more about better applicant tracking and onboarding by booking a call today. 

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The PWFA: What Employers Must Know

oil painting of pregnant lady

Summary:

  • The Pregnant Workers Fairness Act (PWFA) mandates employers to provide reasonable accommodations to pregnant and qualified employees. At the very least, reasonable accommodations could mean time off, including scheduling changes and temporary reassignments.
  • The EEOC’s final regulation for the law will go into effect on June 18, 2024.
  • An efficient workforce management solution can help with compliance and managing accommodations. 

The Equal Employment Opportunity Commission (EEOC) issued the final regulation to carry out the Pregnant Workers Fairness Act (PFWA) that will go into effect on June 18, 2024. Designed to protect the rights of pregnant employees, the PWFA mandates that businesses provide reasonable accommodations to pregnant workers, similar to those provided under the Americans with Disabilities Act (ADA). Understanding and implementing the PWFA not only helps you stay compliant with federal law but also promotes a supportive and inclusive work environment. 

Here’s a quick rundown of the PWFA and how you can best comply.  

What is the PWFA?

The PFWA law requires employers to provide reasonable accommodations to qualified employees. It took effect in June 2023, but the EEOC recently issued the final regulation to implement it. 

It protects employees who have known limitations. Under the law, these refer to physical and mental conditions related to, affected by, or arising from pregnancy, childbirth, or related medical conditions. 

The law applies to public and private sector employers with more than 15 employees. 

What does reasonable accommodation exactly mean?

Basically, these are adjustments or changes in the work environment that would help qualified employees. The most obvious accommodation would be providing time off for treatments, doctor’s appointments, and childbirth, but it could be other things. Some examples include: 

  • Flexible break times for drinking water or using the restroom
  • Changes in work schedule
  • Temporary reassignment
  • Providing equipment or modifying a workstation
  • Assigning light duty
  • Offloading some essential functions of the job

Employers are required to provide such accommodations as long as it would not cause any undue hardship to the organization. Under the law, undue hardship means “a significant difficulty or expense.”

The law also has provisions that provide safeguards that ensure qualified employees will get the adjustments that are right for their condition. For instance, employers can’t force employees to take reasonable accommodations aside from what both parties previously agreed on.  

While providing time off for qualified reasons is acceptable, employers can’t force employees to take leave when they can implement adjustments to keep them working their shifts. For instance, if a pregnant employee works a cash register and can’t stand for long hours, it would be non-compliance for employers if they forced the employee to take time off when they could provide a stool to keep the employee comfortable while working.

Under the PWFA, employers are also not allowed to deny an opportunity and punish employees for requesting reasonable accommodations. Coercing employees who are exercising their rights and people who help them do so is also prohibited under the law. 

Who are qualified employees under PWFA?

Qualified employees under the PWFA are those employees who can perform their duties and fundamental tasks with or without reasonable accommodation. Most employees would meet this requirement because they would most likely be able to perform their essential functions when they’re provided adjustments at work. 

But what if core work functions or duties need to be adjusted, such as when an employee can’t perform a task? Employees can still be qualified, provided that their inability is temporary and that they can return to their essential functions in the near future. For instance, if the job requires an employee to operate heavy equipment, employers may modify their task to only involve light work. 

Tips for complying with the PWFA

Complying with the PWFA is not just a legal obligation. It’s also about promoting a more inclusive work environment and improving retention. Here are some practical tips for implementing it in your organization.

Establish a process for PWFA

It’s all about communication and transparency. Employees must be aware of the law and how they can qualify and practice their rights under it. A process with a clear set of guidelines is essential. 

Obviously, it all starts with employees letting management know of their condition. Employees should know who to inform to get the ball rolling. Aside from their immediate supervisors, who else do they need to notify? 

The guidelines should also include the type of information qualified employees need to provide. However, it’s important to note that it’s not mandatory under the law to present medical records to request for reasonable accommodation, especially when the condition is very apparent. For instance, there is a need for schedule modifications because of morning sickness or the need for bigger uniforms down the line. 

However, employers may request medical documentation to confirm that the level of reasonable accommodation requested is appropriate. This pertains to work changes that warrant a suspension of one or more essential functions, such as if the employee must avoid exposure to certain chemicals or has a temporary inability to operate heavy equipment. In addition, employers should keep medical records confidential.

Train your managers

Much of the work around complying with PWFA is between the managers and frontline staff. Ensure your managers and supervisors are equipped to implement the law and identify qualified employees. Access to materials about the law and their role in implementing it can help them navigate it better. It also helps to familiarize them with other related laws, such as the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and the Pregnancy Discrimination Act (PDA). 

Stay on top of compliance with a workforce management platform

Navigating the PWFA will be less challenging when you have a system that helps you stay on top of it. 

On paper, it sounds simple to provide accommodations to pregnant and qualified employees under the law. However, it’s a more complex situation on the ground. Workforce.com can help run your team efficiently in compliance with PWFA, or any labor law for that matter. Here’s how: 

  • Accurate scheduling – When an employee is qualified under PWFA and needs scheduling changes, you can set qualifications so that you will be notified if you accidentally schedule them for shifts or stations that are inappropriate for their current condition.
  • Accessible handbook and training guides – Workforce.com’s HRIS makes it easy for your frontline teams to access the employee handbook and other materials they need, such as your policy on PWFA. This can come in handy should your employees need to clarify any points in your policies or rules.
  • Easy way to stay on top of last-minute shift changes – In case qualified employees face an emergency that compels them to miss a shift, managers can quickly offer the vacant shift to available staff through Workforce.com’s shift bidding functionality.
  • A feedback platform for improving operations – Workforce.com has a shift feedback that prompts employees to rate their shifts. Use this to see if reasonable accommodations are still appropriate and to gauge how the rest of the team feels about the current setup.


The PWFA is a significant step to ensuring that pregnant workers can get the support they need in the workplace. Compliance can be challenging, but the right platform can simplify the process for you. With Workforce.com, you can reduce administrative burden, track accommodations, manage documentation, and ensure that all employees are treated fairly. Discover how Workforce.com can help you stay on top of every stage of the employee life cycle, from hiring to payroll. Book a call today. 

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Free Employee Change of Address Form [Template]

oil painting of someone carrying moving boxes

Summary:

  • Federal and state laws govern how employee records are kept and for how long. These rules can differ by location and industry.

  • Managing employee records is a tall order, but HR software keeps thing simple, allowing staff to update their own info digitally.

  • Download and modify this employee change of address form template for free.

With a small staff count, organizing, tracking, and updating employee records is relatively straightforward for any HR department. But if you have a rapidly scaling business, staying on top of personnel information might be a little more challenging. 

To keep things organized in all of this chaos, you need to keep accurate records. When an employee’s mailing address needs to be updated, you’ll need to rely on more than just word of mouth to get this information processed. 

Many HR departments use a change of address request form. Download ours here – feel free to copy, save, and modify it. 

Using a simple form like this is only the first step in accurate record-keeping. It is 2024; let’s be honest, people don’t use printers anymore. Or at least they shouldn’t be. 

Well, that might be a tad extreme. But you know where I am going with this. 

All kinds of records, such as employee names and emergency contact details, will change over time. Add leave request forms, benefits enrollment, and other templates into the mix, and you’ll realize how quickly recordkeeping can become an administrative burden. 

Paper forms < Going paperless; Here’s why. 

Luckily, you can avoid repeatedly downloading 15+ paper forms to manage your workforce records by using HR software. 

Here are three ways where HR software can help you get a better grip on employee record-keeping:

1. United employee records in one place.

You can collect all of your employee information in one system without storing random paper forms in dusty, beige filing cabinets scattered around your office. Typically, organizations keep some form of the following employee details: 

Time and Attendance

This information is essential to staying on top of your day-to-day operations. This includes records on the clock ins and outs, time off, employee schedules, tardiness, absences, and hours worked. 

Benefits

Insurance enrollments, health coverage, and other company benefits all fall under this category. It can also include records involving the Americans Disabilities Act (ADA), the Occupational Safety and Health Administration (OSHA), and the Family and Medical Leave Act (FMLA). Staying on top of these records will help you comply with federal laws like the Employee Retirement Income Security Act (ERISA).

Payroll

Details that have something to do with a person’s pay computation go under payroll information. Details like wages, hourly rates, withholdings, tax forms, timesheets, direct deposits, and W2 and W4 forms all fall under one umbrella. 

Personnel information

These are basic details that typically go under an employee’s file. This includes name, home address, phone number, employment history, emergency contact information, and other new employee paperwork. Over time, this file will consist of documentation around performance reviews, awards, disciplinary records, training, termination, and further employment-related details. 

Medical records

Medical records include doctor’s notes, drug tests, medical exams, and medical expense reimbursement requests.

Separation of employment records

These records are related to an employee’s departure from the organization, including resignation letters, unemployment documents, reasons for separation, whether voluntary or involuntary, and exit interviews.  

2. Compliance with employee record-keeping rules

There are federal rules and state-based rules that govern the type of information you can retain and for how long. Here’s a brief overview of some of these regulations:

Fair Labor Standards Act (FLSA)

Federal and state-based rules govern the type of information you can retain and for how long. Here’s a brief overview of some of these regulations:

        • Employee’s full name and social security number
        • Address, including zip code
        • Birth date, if younger than 19
        • Sex and occupation
        • Time and day of week when employee’s workweek begins, hours worked each day, and total hours worked each workweek
        • Basis on which employee’s wages are paid
        • Regular hourly pay rate
        • Total daily or weekly straight-time earnings
        • Total overtime earnings for the workweek
        • All additions to or deductions from the employee’s wages
        • Total wages paid each pay period
        • Date of payment and the pay period covered by the payment

Department of Labor (DOL) rules also state that payroll records and collective bargaining agreements must be kept for three years and timesheets for two years. 

Equal Employment Opportunity (EEOC)

This regulation states that employers retain employee records for a year. Should a staff member get terminated, their personnel records should be kept for one year after their departure from the company. 

Internal Revenue System (IRS)

Under IRS rules, employment tax records should be kept four years after filing the 4th quarter of the year. Some of these records include employer identification numbers, fair market value of in-kind wages paid, and copies of employees’ and recipients’ income tax withholding certificates. 

Genetic Information Nondiscrimination Act (GINA) and Americans with Disabilities (ACT)

Both acts mandate that medical information be kept separate from general personnel files. This includes doctor’s notes, disability benefits claim forms, drug or alcohol tests, FMLA requests, ADA requests and documentation, workers’ compensation records, medical exams, health insurance forms, employee assistance program information, and medical expense reimbursement requests. 

3. Saving time with self-service

The most efficient way to update records is to have staff do it themselves. HR software typically offers employee self-service functionality that allows employees to handle their own recordkeeping, often through a mobile device. With this, they can take ownership of updating their details without having to submit support tickets to HR.

Workforce.com makes employee recordkeeping easy.Screenshot of an employee profile in Workforce.com

Workforce.com is a cloud-based HR system specialized for hourly workforces. It offers complete visibility over employee information, documents, contracts, forms, and other data vital to running your workforce. It’s also built with an employee self-service feature that allows staff to update their details without bothering HR. Likewise, HR managers can configure notifications so they never have to dig to find information on form acknowledgments, onboarding reminders, PTO requests, attendance issues, etc.

Book a call today to get started on ditching paper forms. 

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Time Off Requests: 5 Tips + Free Template (2023)

Oil Painting of an Astronaut handing you a piece of paper

Summary:

  • Time off management is difficult when no company policy for leave requests and approvals exists. Confusion can result in overlooked requests, no-shows, and short staffing.

  • Use and customize this employee time off request template to track employee leave requests. It should serve as a formal request that outlines the number of days an employee will be away and the type of leave they will use.

  • Improve leave management with a time-off tracking app.

Managing leave requests can get complicated, especially when your business starts to scale. That’s probably why you are here, right?

Without structure or centralization, leave management can quickly become an administrative nightmare. Managing a flurry of different leave requests from emails, chats, SMS, or in-passing conversations is challenging. With no clear process or paper trail, you could end up with a disgruntled team and understaffed shifts.

Start documenting things better with the template below:

Employee Time Off Request Form

Keep in mind that using a paper template will only get you so far. Efficient time-off management is all about creating structure and sticking to it. Here are some tips to help you do this:

1. Have an HR policy in place

While federal law may not require you to offer time off, in most states, you are required to do so. Even if this is not the case for you, it is best practice to offer time off anyway – you’ll have a hard time hiring without this kind of benefit. 

Have your HR team create a written policy that is easy to follow. Without a policy guiding your business, things can quickly get tricky when multiple employees apply for time off on the same dates, for long periods, or during peak seasons.

A time off policy should include the following key areas:

  • A designated lead time/deadline for applying for leave credits or filing for leave of absence
  • Rules around unforeseen employee’s absence in case of emergencies
  • Clear steps on how employees can submit leave requests
  • Policies around high peak seasons or periods
  • Rules around various types of time off benefits such as sick leave benefits, vacation days, unpaid time off, and floating holidays. 
  • Policy around FMLA (Family and Medical Leave Act) and whether they will be accrued other paid time off.

Leave policies vary across organizations. Businesses in retail, hospitality, and healthcare typically have the most stringent policies in order to staff properly during periods of peak demand. That’s not to say that leave requests are less likely to be approved in these organizations; managers just need to have a more efficient system for facilitating them. 

The key here is looking at your data, such as labor forecasts, historical sales, and demand information. See the peaks and valleys in the demand-to-labor ratio so you can plan for employee schedules accordingly and allow employees to take time off.

2. Use software to streamline things.

Managing time off should be simple – using software is the best way to simplify things. The right leave tracking software should allow you to:

  • Let employees submit time off requests in a single place.
  • View and approve leave requests and ensure that all requests go through a single channel. 
  • Customize your own accrual rates and policies.
  • Review available versus current hours.
  • See projected PTO balances on future dates.
  • View leave requests filed in a specific period.
  • Sync leave management with employee scheduling and labor forecasting, ensuring you’re never over or understaffed.
  • Let staff update their availability or unavailability
  • Set blocked periods where employees are discouraged from taking leaves.
  • Access the leave management portal via mobile or desktop. 

Leave management software makes the most sense as it eliminates paperwork and missed leave requests. While having a time off request form helps, it should only be used temporarily to manage employee leave.

3. Allow for shift swapping and/or bidding. 

Unforeseen absences are inevitable. Emergencies happen all of the time, and there may be instances where staff may be unable to make it into their shift at the last minute. Shift swaps and bids are beneficial during such situations.

Workforce.com has a shift-swapping system that lets employees pick their replacement or offer their shift in a bidding process to all available team members. As a result, managers no longer need to scramble to find coverage. Everything occurs over a single mobile app, so nothing slips through the cracks.

4. Consider implementing a rotating time off schedule. 

A rotating time off schedule works by assigning a particular period when employees can take time off. Doing this helps you prevent overlapping leave requests. Remember that you’ll need to exercise discretion here in case of unavoidable, last-minute leave requests. Determine when it is okay for overlapping leave to occur, follow FMLA rules, and figure out how you will find replacements.

5. Incentivize employees not to take time off. 

Only do this during busy times of the year for your business. Rewards for working during peak demand can be higher pay rates, fixed bonuses, or additional PTO. Incentivizing your staff this way will increase the likelihood of leave being taken during slower periods, ensuring your shifts are fully staffed when facing high demand. 

Simplify leave management with Workforce.com

Workforce.com is an all-in-one solution for managing shift workers. While it covers everything from onboarding to payroll, leave management is one of its specialties. Its mobile PTO tracking app lets staff check their balances, view upcoming time off, and submit leave requests.

Requesting time off on the Workforce.com app

Best of all, every leave request is tied directly to Workforce.com’s employee scheduling system – meaning every approved request is automatically reflected on the schedule. 

Book a call today to learn more about Workforce.com’s leave management system.