Timesheets are so tedious. Why do I even have to do them?

As a PEO, StaffScapes depends on accurate timesheets from their clients to ensure an accurate payroll.  Timesheets should be a fundamental and important aspect of every company that has hourly employees.  The DOL (Department of Labor) requires every FLSA (Fair Labor Standards Act) covered employer to keep records for every non exempt workers, including hours worked and wages earned.  While keeping track of hours worked may be a tedious task for the employee or employer, it protects both against fraudulent hours, unpaid hours, and can even minimize the chances of a DOL audit.

The timesheet protects the employee by verifying the hours worked and guaranteeing compensation for the hours worked.  All hourly employees should sign their timesheets, verifying the hours on the timesheet are correct.  This can help prevent mistakes such as not getting the right pay, missed overtime hours, etc.

Timesheets also protect the employer.  If an employee signs a timesheet and is paid accordingly, it can help prevent DOL claims and unhappy employees. 

For example, Company X always assumes its hours for its hourly employees.  Every week, they pay their full-time employees the standard 40 hours.  Marty works at Company X and thinks this is great. He can take a 2 hour lunch or come in late and not make up his time because he knows the company isn’t keeping track, and he will always get paid for 40 hours.  Sandra also works for Company X and is not too happy.  She clocks in an average of 5 overtime hours and is never compensated.  Sandra is fed up and decides to go to the DOL and files a claim against Company X for unpaid wages. Company X has no way to prove that Sandra didn’t work those overtime hours, but they also don’t have a way to prove she did.  Because the burden of proof is on the employer to prove the employee did not work the hours claimed, without time keeping records, the DOL will usually charge the employer for the amount of unpaid wages.  If the employer is unable to prove the hours and refuses payment, it can open them up to a DOL audit. 

The best way to encourage employees to fill out timesheets is stressing that it is for their protection and never making exceptions.  For example, employees should be tracking their time every day they go to work, not just for special projects, or when they have a deadline to complete something.  Making it a known policy and everyday task makes employees more willing to comply and complete their timesheets regularly.  Saving both the company and employee time and hassle just in case something goes wrong.

By T.Redding Payroll Specialist

See Also

• Recordkeeping and Reporting
  Every employer covered by the Fair Labor Standards Act (FLSA) must keep certain records for each covered, nonexempt worker.

Majority of private employees have access to medical insurance.

The U.S. Department of Labor, Bureau of Labor Statistics (BLS) recently published their findings from the “National Compensation Survey: Employee Benefits in the United States, March 2007” survey. The recent survey finds a large percentage (71%) of private industry workers have access to employer-sponsored medical care plans.  A smaller percentage of employees (52%) actually participate in the employer-sponsored plans.  The BLS collected a great deal of data concerning many different benefits provided to private industry employees.  With increased discussion regarding America’s uninsured individuals, of significant interest in the survey is access and participation of employees in medical insurance programs.   

The published results from the survey can be found on the BLS website at: www.bls.gov/ncs/ebs/sp/ebsm0006.pdf.

U.S. DOL’s Wage and Hour Division announces record wage recovery for 2007

The U.S. Department of Labor’s Wage and Hour Division (WHD) announced its enforcement data for Fiscal Year 2007. For 2007, 341,624 workers received recovered back wages in the amount of $220,613,703 (the highest recovered amount for any year). Paul DeCamp, administrator for the Wage and Hour Division said "This record-breaking performance demonstrates the department’s commitment to protecting workers."

Since FY 2000, WHD has recouped more than $1.25 billion for nearly two million workers.

More information on agency results is available on the Wage and Hour Division Web site at www.dol.gov/esa/whd.

The US DOL responds to the requested comments on the FMLA.

After a long and much anticipated wait, the US Department of Labor responded to the public comments that it requested concerning the Family and Medical Leave Act (FMLA). Included in the 161-page report was the DOL’s statement that the report does not signal any forthcoming regulatory changes.  So what does the report contain?  Apparently a very large amount of comments received from employers and HR practitioners concerning the problems and difficulties of managing the current version of the FMLA. 

For the time being, administration of FMLA should continue as is, with all of its pitfalls.  However, we suggest that everyone pay specific attention to their states. Just because the federal government is not taking steps to change does not mean that individual states won’t.

Unemployment claims dip

The labor department reported that 322,000 people filled applications for unemployment claims last week. This is down 15,000 from the week before. Claims dropped for the second straight week surprising many analyst. This is the same trend seen in Colorado as employers are busy hiring once again. During the last week many StaffScapes clients have asked about hiring or have hired new employees in 2008. 

With low unemployment employers are finding it difficult to find the right employee. It may be wise to ask a few more probing questions when interviewing candidates. By having a set list of questions when interviewing you will be better able to compare answers among job applicants. For more details on interviewing or steps to take when interviewing contact StaffScapes

The employee benefits Security Administration(EBSA) has published form M-! for 2007The form is almost identical to the 2006 Form M-1 and is due March 1, 2008. As with most tax document, payments and forms that are due on a specific day if that day fall on a weekend it is due the following Monday. So the 2007 M-1 Form due on March 1, 200 a Saturday will be due on Monday march 4th. A one-time extension is available but it is due before the initial filling.

See Also

• Form M-1
  EBSA Form M-1

A little-noticed provision of the Genetic Information Nondiscrimination Act increased child labor penalties under the Fair Labor Standards Act and added a significant penalty should an under-aged employee be seriously injured.

Penalties for violations have been increased to a possible $11,000 and there is a new $50,000 potential penalty if there is a death or serious injury of any employee under the age of 18 years who is working in violation of FLSA child labor limitations. The penalty may be doubled if the violation is a repeated or willful violation.  Serious injury means permanent loss or substantial impairment of one of the senses; permanent loss or substantial impairment of the function of a bodily member, organ, or mental faculty; or permanent paralysis or substantial impairment that causes loss of movement or mobility of an arm, leg, or other body part.  Employers should take special care with regard to summer hires and to make sure that they are performing proper safety training.  These new penalties became effective immediately.

Source: NAPEO.org

What Do I need to know about Form I-9?

With a new Form I-9 issued, it is a good idea to review the purpose of it and the requirements as an employer.

The Form I-9 is used to help employers verify individuals who are authorized to work in the United States. A form should be completed for every employee that is hired. Employers are required to:

1.      Ensure that your employees fill out and sign Section 1 of the form when they start to work

2.      Review document(s) establishing each employee’s identity and eligibility to work

3.      Properly complete and sign Section 2 of the form

4.      Retain the Form I-9 for 3 years after the date the person begins work or 1 year after the person’s employment is terminated, whichever is later

5.      Upon request, provide Form I-9 to authorized officers of the Department of Homeland Security (DHS), the U.S. Department of Labor (DOL), or the Office of Special Counsel for Immigration Related Unfair Employment Practices (OSC) for inspection.

Source: www.uscis.gov

US Labor Secretary, Elaine Chao, recently spoke concerning July employment numbers.

Recently reported on the US Department of Labor’s website, Elaine Chao comments about the July employment situation:

"While we are concerned about continued job losses, the overall economic picture, including the second quarter GDP’s increase of nearly two percent, demonstrates that our economy continues to work its way through current challenges. The resiliency of the economy given all the shocks we have sustained is noteworthy. The long term fundamentals of the economy remain solid. Now is not the time to raise taxes and take more money out of the pockets of workers when they need it most." 

The Colorado Department of Labor just announced the new minimum wage rate for 2009

The minimum wage rule enacted in 2006 to the Colorado Constitution requires the state’s minimum wage rate to be adjusted each year for inflation. The inflation adjustment is based on the US Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) for the Denver-Boulder-Greeley combined area. This adjustment is based on the difference between the CPI-U from the first half of the prior year and the first half of the current year. The CPI-U increased 3.7% from the first half of 2007 compared to the first half of 2008.  This adjustment will increase the 2009 minimum wage rate to $7.28 per hour, effective January 1, 2009.  The Tip credit for 2009 has not changed so the minimum wage rate for "Tipped Employees" will be $4.26 ($7.28 - $3.02).

For More information please go to the Colorado Department of Labor’s home page at: www.coworkforce.com.

Auditors finding “Good Faith” for small business using a PEO.

During a recent conversation and review of a Department of Labor audit with a client I mentioned how the auditor used the term "Good Faith" during the audit. This came from her finding out that the employer was using a Professional Employer Organization (PEO). Once we as the clients PEO contacted the auditor the auditor was happy and willing to work with StaffScapes to gather and provide information pertaining to the claim. 

The audit came about after a client terminated an employee and that employee felt that he was due overtime pay. The employee was an exempt manager and was paid on a salary basis. During the audit it was determined that the employee was correctly classified and was not due any overtime pay.

I believe that the PEO relationship helped this audit go in the correct direction for our PEO client. Once the Auditor found out that the client was using a PEO she mentioned that it is good to see business making a good faith judgement in following the rules and regulations around having employees and employment. The PEO relationship allowed the client to focus on his business and marketing of that business and allowed the PEO to work on the business of employment. Because of this the employer had all the correct job descriptions, hiring and firing responsibilities laid out in the employers handbook. With that and the easily accessed time records we kept as the PEO the auditor was able to make a quick decision in this case.

Before the auditor came out to the work site we meet with our client to review the audit procedure. Our client was not happy that he had to have an audit and wanted to make that point clear to the auditor the next day. We advised him to come into the meeting with a smile and to treat the auditor as a co-worker and not to be confrontational. The auditor could have opened the audit to both of his business and not keep it focused to the claim at hand. It was decided early on that we would be at the meeting and help run the meeting with the auditor so as the correct questions would be answered and no additional information would be provided in less it was relevant to the discussion.

In the end the client had to meet with the auditor for a little over an hour. The audit went in the clients favor and no wrong doing was found. As the PEO we did suggest to the client how he can improve how he hires and fires.

Creating a good faith PEO relationship properly saved this client from having an audit go the wrong way.

See Also

• Human Resource Solution center
  The StaffScapes Advantage

Inflation adjusted minimum wage rate to increase in nine state on January 1, 2009.

Over the past few years states have moved to have statutory requirements that the minimum wage is to be indexed to that state inflation rate.  One of the most recent state to enact this law is Colorado who’s minimum wage rate will go from $7.02 to $7.28 in 2009.

The nine states are:

Arizona

Colorado

Florida

Missouri

Montana

Ohio

Vermont

Washington

For more detailed information about minimum wage and how it effects payroll, overtime calculations, certified jobs and more contact StaffScapes.

See Also

• Colorado Minimun Wage
  Co blog on DOL increase in Minumum Wage
• Payroll
  payroll maintenance

OSHA Unveils Guidance Concerning Avian FluOn November 14^th , 2006, The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) unveiled new safety and health guidance that alerts employees and employers about the hazards of occupational exposure to avian influenza from infected birds, or "avian flu," and provides practical recommendations on ways to avoid infection.

OSHA Guidance Update on Protecting Employees from Avian Flu Viruses, as well as other important resource information on the topic, is available in English and Spanish by visiting the In Focus section on the home page of OSHA’s Web site at www.osha.gov.

"We encourage employers and employees who are most likely to be exposed to avian flu to take the appropriate precautions," said OSHA Administrator Ed Foulke. "This guidance offers them practical tips, such as hand washing and the use of proper protective equipment, for preventing illness."

The new document updates guidance on avian flu issued by OSHA in 2004. The update provides separate recommendations for poultry employees and those who handle other animals, and for laboratory employees, healthcare personnel, food handlers, travelers, and U.S. employees stationed abroad. The primary focus is on good hygiene, including use of gloves and hand washing, as well as respiratory protection for those who work with infected animals or individuals.

The guidance also includes links to helpful Web sites with additional information, and a list of technical articles and resources, including a history on flu pandemics, symptoms and outcomes of various strains of the avian flu, a summary of the bird importation regulations, and details on the transmission of the virus.

See Also

• OSHA Guidance
  OSHA Guidance Update on Protecting Employees from Avian Flu Viruses
• OSHA Homepage
  OSHA’s Homepage to View for Further Information

The US DOL has released, on their website, the model notices for COBRA subsidyThe Department of Labor has just released their model notices for the COBRA subsidy available under the American Recovery and Reinvestment Act (ARRA). There are two formats of the General Notice, one full and the other abbreviated. Also drafted by the DOL and on their webpage are an alternative notice for insurance issuers and a notice in connection with the extended election period. A link to the DOL’s website with the model notices is listed below.  Staffscapes will have more information about the COBRA subsidy notices after we have had time to review the models issued by the DOL. 

See Also

• DOL COBRA Model Notices
  DOL COBRA Model Notices

It’s everywhere.  Every day you probably follow a group, friend someone you haven’t talked to in 15 years, tweet that your newest video is posted on You Tube TM and make sure that you are LinkedIn TM.  Keeping up with Social Media is a part-time job of its own.  It’s fun, it promotes you and what you are doing and it can keep you in touch with those in your life.  However, setting aside all of the positive aspects of Social Networking, as a business owner you must consider how this impacts you and your bottom line. 

Almost all employees have their own dedicated computer or access to a computer while on the job.  This makes it very easy to have access to the web and its opportunity for “surfing” when time should be devoted to work.  Surfing the internet while on a break or during a lunch hour is acceptable for some companies and can have positive effects on productivity.  Where it crosses the line is when an employee devotes more than their allotted break time to their social media status updates.  If you are paying your employees for time spent in non work related tasks, you are loosing revenue.  You don’t have to invest in surveillance equipment or micro-manage your employees.  But, what you should do is have a policy in place that clearly defines acceptable usage of company owned equipment and make sure that each employee clearly understands the consequences of unauthorized usage.  Should you need to reprimand an employee or terminate their employment, having a policy in place will pave the way to ensuring your decisions are supported by the Department of Labor. 

For more information on establishing company policies, contact StaffScapes at 303-466-7864 or info@staffscapes.com.

I turned on the news last night and watched as picture after picture was displayed showing the aftermath of the violent storms and devastating tornados that made their way across Oklahoma.  It happens every year across our great nation.  Buildings are destroyed, people are killed, and families go from enjoying an evening meal together to figuring out where they will sleep after their homes have been demolished.  Having been through several severe storms myself including the tornado that hit Windsor, CO in May, 2008, I am reminded that it is important to have a plan in place to deal with natural disasters when they occur.  As a business, it is your responsibility to provide a safe environment for your employees at your location.  You can’t prevent a natural disaster, but your can prepare for how to respond when the need arises.  Here are 3 Keys to help you get started:

1.  Have a written emergency evacuation procedure that includes floor plans and indicate exit locations and fire extinguishers.  Communicate these procedures with your staff

2.  Have an emergency kit stocked and accessible in each building of your business.  Include in this kit, contact phone numbers for medical treatment facilities in your area

3.  Have a designated location for all staff members to report to immediately after an emergency is declared.  Keep a staff roster with emergency contact information in an easily accessible location and account for all individuals by roll call to ensure safety and well-being of all employees

For more tips and information on preparing for an emergency, please contact us at 303-466-7864 or Eugena.Bellamy@StaffScapes.com for a complimentary copy of our whitepaper on developing your Emergency Response Plan.

During this economic recession, Colorado companies need to be aware of the CDLE’s ability to investigate companies looking for additional tax revenues.  The Colorado Department of Labor and Employment (CDLE) is required by House Bill HB09-1310, to accept complaints and conduct investigations regarding alleged misclassification of employees as independent contractors. An additional notification has also been added to the required Unemployment Notice Poster, alerting employees and contractors of their right to file a complaint.

Any person may file a written complaint alleging that an employer has misclassified an individual, who is performing work, as an independent contractor. After a complaint is received, the CDLE determines within 30 days whether an investigation is needed. If it is determined that an investigation is warranted, the CDLE will notify the company that an investigation will be conducted. Once the investigation is completed, the CDLE will issue a written order either dismissing the complaint or finding that the company has engaged in the act of misclassifying employees.

If an investigation finds that an employer has misclassified employees, the employer must pay all back taxes owed with interest. Additionally, the employer may be fined up to $5,000 per misclassified employee for the first misclassification and up to $25,000 per misclassified employee for a second or subsequent misclassification. In addition, upon a second or subsequent misclassification, the employer is prohibited from contracting with, or receiving any funds from, the state of Colorado for up to two years.

The law also allows an employer to request an advisory opinion. The opinion is available to employers seeking advice on proper classification of workers. If you would like to request an advisory opinion on whether you should classify individuals as employees or independent contractors a written, signed request must be submitted. Some of the questions CDLE will base their determination on are:

• Does the individual(s) have an independent trade, profession, or occupation? If so, what is that trade, profession, or occupation?

• How is the rate of pay determined? Is the individual paid a salary, hourly rate, fixed rate, contract rate, or by the completion of work?

• Does the individual(s) work exclusively for you?

• Do you oversee the actual work or instruct the individual as to how the work will be performed?

• Can you terminate the work the individual is performing at any time? If so, for what reasons?

• What training do you provide the individual(s)?

• What tools or benefits do you provide to the individual(s)?

• What materials and equipment do you provide to the individual(s)?

• What are the individual’s work hours? How is the time he or she works determined?

• How is the individual(s) paid? If by check, who is the check made payable to?

• Is the individual(s) business a part of your business? Is it separate and distinct?

Apple™ promotes its new Apple iPad™ as the “best way to experience the web, e-mail, photos and video.  Hands Down.”  We agree.  We also think that StaffScapes is the “best way to handle your human resources needs.  Period.”  Hundreds of people count on us weekly to be their “partners to answer questions regarding Human Resources, employee relations, process payroll, assist with workers’ compensation and unemployment claims and much more”, said Jim Thibodeau, President of StaffScapes, Inc. 

From today through Labor Day, StaffScapes will be providing one Apple iPad™ to any person or company that refers a qualifying* new client and who begins services by September 6, 2010.  This promotion is open to any client, employee, friend, relative or business associate of StaffScapes, Inc. Some restrictions apply.  For rules and regulations, please contact StaffScapes, Inc.  303-466-7864 or info@StaffScapes.com.

*see rules and regulations for qualified requirements.

Summer is here!  With no papers to write or tests to take, many high school and college students are hanging out at the pool enjoying their much anticipated time off.  But many others are looking to earn some extra money and a chance to improve their skills.  For many employers, this is a great opportunity to get caught up on tasks without the need to hire an employee long-term.  Due to the planned length of employment and the demographic involved, some employers easily confuse these jobs believing that the on the job training students receive qualifies as an internship and may offer the position as unpaid.  The Fair Labor Standards Act (FLSA) has specific requirements you need to know when evaluating the type of position you have available.  To qualify for an unpaid internship, the following criteria must be met according to the Department of Labor:

1.    The internship must be similar to the training the student would receive in an educational environment.
2.    The experience will benefit the intern.
3.    The intern does not take the place of another employee and is supervised by existing staff.
4.    The employer receives no immediate advantage from employing the intern and may in fact have their operations interrupted due to the training involved. Typically, more supervision and training is required for the intern compared to other employees. 
5.    The intern is not guaranteed a job at the end of the internship period.
6.    The employer and the intern understand that the intern is not eligible for wages for the time spent in the internship.

If all of the above criteria are not met, chances are the position would be viewed as an employment relationship and would be subject to wage and hour laws.  For more information, please review this Fact Sheet.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com

Cell phones are a way of life.  We update our Facebook accounts, check e-mail, find a restaurant, text our significant others and even occasionally talk to someone.  But increasingly, cell phones are becoming a vehicle for what is being labeled as “textual harassment” or harassment via text messages.  It’s easy to discount, thinking that this is a simple issue and one that won’t ever affect you, but “textual harassment” is becoming a problem for all age groups and it is an issue that employers must deal with.

Employees today are using their cell phones as new weapons for sending threatening and abusive messages to co-workers.  They are spreading non truths about others including their supervisors and/or the companies they work for.  They are sexually harassing colleagues and employees alike and even bullying co-workers.  Considering all of this, it is important for employers to have clear policies in their handbooks that detail what is and is not acceptable when it comes to texting.  This form of harassment can also apply to social media posting. When drafting your policies, consider the usage of not only personal cell phones but also privacy issues related to company paid for and company reimbursed cell phones as well. Once your policies are in place, you should establish training for staff members that explains your position and outlines procedures for complaints to management.  Dealing with reports immediately, documenting the complaint, investigating the claim and evaluating the evidence for potential corrective action will go a long way in defending you and your company should the EEOC get involved. 

StaffScapes is experienced in dealing with claims of textual harassment and works with its clients to have clear policies established.  For more information or assistance for your company, please call StaffScapes at 303-466-7864.