30 Minute Guide to HR: A Quick Guide to Success in HR for the Busy and Confused

The 30-Minute
Guide to HR
A Quick Guide to Success in
HR for the Busy and Confused

©2012 Sikich LLP. All Rights Reserved.

The 30-Minute Guide to HR: A Quick Guide to Success in HR for the Busy and Confused :: 2

The 30-Minute Guide to HR:
A Quick Guide to Success in HR for the Busy and Confused

As an individual with HR responsibilities, every time you turn around someone is talking about

FORWARD
compliance. If you read the papers or listen to the news at all, you can easily figure out that compliance
is getting tougher, the fines and penalties are getting stiffer and everyone is a target. We’re going to take
some of the complexity out of employment law and help you focus on the things that will really make a
difference.

In today’s world, compliance with employment law is critical to any organization, regardless of its size or
sector. The law continues to change and increase in complexity, including modifications to laws such as
the Family Medical Leave Act and the Fair Labor Standards Act that have been on the books for many
years. Failure to obey the law will generate expensive penalties that will ultimately affect the operations
of any organization, taking money from the budget that could be used to grow operations or fund
mission-based projects.

Compliance is not an option; it is the law.
This guide focuses on key compliance areas that organizations should have in place as a protection
against both fines and penalties and employee claims. Some items that we will cover are basic
organizational protections as mentioned; others will help your organization promote good employee
relations and ultimately make your organization less vulnerable to employee claims.

How you approach these various items will depend on your specific needs and resources. A simple
solution can be as effective as a high-priced, complex solution.

We’re going to give you a flavor of how you might want to look at what you’re doing. We’re not going
to cover every possible area of compliance, but we’re going to cover enough to get you pointed in
the right direction. You’re in the best position to determine priorities based on your knowledge of your
organization. Use that knowledge to kick it up a level! We’re there behind the scenes to help. So read on!



What Laws Apply to
Your Organization?
By way of a quick disclaimer, know two things:
1. You will have specific compliance requirements based on your sector
2. You have compliance responsibility for both state and local laws

The list that follows is a high-level overview of key federal laws on which organizations
of various sizes need to focus. Remember that while you are responsible for
compliance at the federal level, if your state or local laws are more stringent
than federal law, the benefit goes to the employee. Generally, whatever is more
advantageous to the employee will be the law with which you will comply.



Why is HR important?
Let’s face it—handling human resources is one of the toughest Manpower Planning
in-house jobs and often the one that gets little credit when things & Strategic Services
are working smoothly. In smaller organizations, the responsibility Recruiting &
Compliance
for HR is often lumped together with a lot of other administrative Onboarding Services
or financial tasks, leaving little time for the responsible party
to truly get comfortable with the breadth and depth of HR
responsibilities. Performance Organizational
Management Development
HR
Key HR concerns include: Outsourcing
� aintaining a high level of compliance and educating the
M Training
Compensation
organization and its supervisors about employment law
Development

� Promoting fair and consistent employee relations
� Supporting organizational effectiveness and success
Beneﬁts Communications
Employee
Sound simple? Maybe not. It is critical that those responsible Relations
for human resources have a solid understanding of ever-changing
employment laws and employee relations. Many organizations
are choosing to outsource all or part of their HR activities due
to the complexity of human resources. At a minimum, many
organizations have chosen to engage an HR professional on
an as-needed basis to provide advice and counsel in the many
areas of HR.



Let’s lay out some very basic Throughout this guide, we will
tenants for HR that help bring life take a look at the key areas of
to the ideas mentioned before. human resources including:
HR needs to provide for: � Recruitment .................................................................................... 8

� Basic protections, by having solid HR practices in place to
� Orientation .................................................................................... 13
help organizations eliminate unnecessary lawsuits � Compensation ............................................................................... 14

� Consistency, both in organizational operations and in the
� Benefits ......................................................................................... 16

way employees are treated. Inconsistency is one of the major � Training and Development ........................................................... 18

drivers of employment suits. For example, clear policies that are � Performance Management .......................................................... 19
communicated to both employees and supervisors through your
� mployee Relations, including employee handbooks .............. 20
E
employee handbook help employees understand what is expected
of them. And these same policies help your supervisors hold � Compliance, including I-9 forms ................................................. 25

everyone to the same standard � Administration ............................................................................... 27

� Fairness, because employees want to be treated fairly and
� Continuing Education ................................................................... 28

consistently. HR is in the forefront of this concern, coaching, � Various Laws ................................................................................. 29

counseling and educating supervisors and managers about the
law and their role in sound employee relations. It is HR’s When we think about these various functional areas of HR,
responsibility to make sure that fairness is a reality we are basically looking at the life cycle of an employee, from
the employee’s recruitment into the organization through the
employee’s departure. After reviewing the information in this
guide, you may find that you’re in good shape. In that case,
congratulations and keep up the good work. If you find a few
areas that could use improvement, start building your to-do
list right now.



Job Descriptions Planning
The first step in many of the functional areas we listed is creating a sound You should constantly
job description. Your up-to-date job descriptions are the basis for recruiting. ask yourself…
There’s a much worn saying in recruiting—“If you don’t know what you’re
looking for, you’re sure to find it.” Sound familiar? Your job description
defines the requirements of the position in terms of experience,
education, technical and interpersonal skills, and a myriad of other
items that you need to consider when hiring.
“ How does
this candidate
match up to my
“
requirements?
The job description also sets the stage for both orientation and training. It
provides a yardstick by which you match the skills, experience and talents your
new employee brings to the table against the requirements of the position. This
analysis provides you with a ready-made, individualized training tool for a new
or newly promoted employee. It serves the same purpose for underperforming
groups, allowing you to measure against a real set of standards.

A good job description allows you to competitively compare your salary and
benefits package to the market. Most organizations want to pay competitively
within the means of the organization and it is impossible to do that without
having a sound job description to compare with similar positions in the market.

What makes
a good job
description?



Your job description is also critical in all aspects of performance management, from
setting and communicating the objectives and goals of the job through preparing An effective job description
effective performance appraisals to equitably handling discipline and termination. The will help you define what
job description outlines the key responsibilities of the job and in tandem with that, many you are looking for and can
supervisors and managers have developed a strong set of performance expectations be used to create screening
and interview questions. It
keyed to the responsibilities of each position. By creating performance expectations,
can also help you focus on
supervisors and employees can be on the same page. Employees can self-manage their
the experience that is needed
performance and seek training help, and supervisors are able to give sound feedback that
for the position.
is consistent to their job and responsibilities.
Once you know what you
are looking for, you need to
If you don’t have job descriptions or haven’t updated them have a plan as to how you
in a while, now is a good time to start. A good job description are going to fill the position.
is the backbone of your compliance efforts as you will see in
more detail as we move ahead.

They also form the basis of hiring plans, and are therefore critical for a number of reasons.
A good job description outlines the key responsibilities of a position and should give the
employee a clear picture of what the job entails. As an individual with HR responsibilities,
it is your job to see that the new employee learns everything he or she needs to know
about the new job. The job description is also your guide—it includes key responsibilities,
reporting relationships and decision-making authority, as well as requirements from the
Americans with Disabilities Act, such as the amount of time standing, how much this
position may need to physically lift and environmental factors.



Recruitment
Sourcing Screening Internal job postings
In today’s world of recruiting, there is no single source of candidates anymore and are also a good way to
no one process will work for all organizations. Match your recruiting process to source candidates. The
the needs and resources in your organization—create a process that is efficient, internal posting provides
making the best use of limited resources, training supervisors on good interviewing an opportunity for
techniques and providing appropriate tools to assist supervisors in getting your employees to self-
successful interview results. nominate and provides
your organization with an
opportunity to promote
It is important to cast a wide net to attract top talent to your qualified candidates
organization, so think about all of the places you can go to from within. Internal
recruit candidates. In addition to using job boards, determine postings also alert your
which networking groups and associations may provide employees to recommend
qualified candidates. Whether unemployment is high or low, external candidates that
top-quality candidates are hard to find. have effectively been
pre-screened by the
individuals who know your
organization best—your
Many organizations use pre-screening questions that highlight the must-have’s of
own employees.
the position, thus saving time by eliminating candidates who do not meet your basic
criteria. Specifically, using pre-screening questions over the phone can save you
and your hiring managers a substantial amount of time and allows them to review
more candidates in a smaller timeframe. This provides you with a pool of candidates
that you know meet your basic criteria.



Recruitment Process (Part 1)
After sourcing and screening candidates, you will have a select few that will move Double-check your current
forward in the recruitment process. Have all these individuals—whether they are application to make sure that
applying for entry-level or executive positions—complete an application. it contains a well-written
disclaimer. Your disclaimer
The application is important for a number of reasons. First, it shows that a candidate
should include:
can follow the simple directions needed to complete the application. Writing “see
resume” for work history isn’t acceptable. Second, statistics show that up � A statement around the

to 40 percent of candidates lie on their resumes, so the application provides a organization’s right to modify,
second check on employment facts for you. Check dates on the application against change, add or delete policies
dates on the resume—you may be surprised to find sometimes they don’t match up.
� A statement including at-will

language

Plan for finding candidates � The applicant’s acceptance of the

policies as they are stated now and
as they might change in the future,
and the applicant’s commitment to
Update job
comply with those policies
Job description/
Develop screening Interview top
questions candidates
Candidates hiring criteria � A release for drug testing, reference

checks and background checks

� A statement that an applicant

Present may request any needed
Successful Deliver offer Prepare reference most qualiﬁed
accommodations
Hire! letter checks candidates for hiring
manager review
� A statement explaining that all

employees will be required to verify
©2012 Sikich LLP. All Rights Reserved. www.sikich.com
that they are eligible to work in the
United States

� A statement that an applicant is not

required to disclose expunged or
sealed criminal records



Many organizations have chosen to include pre-employment testing as part of their interview
process. This testing can include behavior or predictive testing that provides another look at The importance of a
the candidate in addition to the information generated from the interview process or reference strong professional
checks. Pre-employment testing can be a cost-effective addition to the recruiting process, reference check cannot
and when the right assessment is selected and used consistently, can provide a wealth of to be overstated. It’s
becoming an unfortunate
information. Pre-employment testing; however, is not a be-all, end-all in itself. It should never
state of affairs, but
be used as a hire/no hire decision-making tool by itself, but rather must be used in conjunction
people are regularly
with the interview and reference/background checks.
misrepresenting salary,
Reference checks are critical, though many organizations choose not to do them, using job responsibilities, and
the excuse that they can’t get information from previous employers. Your reference check start and end dates of
should include only requests for job-related information, and it should be directed only to employment.
the candidate’s supervisor, as this individual will best know the candidate’s work. Personal
references are rarely an effective source of information because they typically cannot provide
information about the candidate’s work performance. Keep in mind that
some states may
When you’re thinking about your process, make sure that you implement the kinds of testing/ have differing laws
background checks that appropriately support the common positions in your organization. regarding certain types
Often times, a good background check provider is a solid investment because the provider of background checks,
should have the experience and resources to do effective checks of education, criminal history, so understand those
credit, professional licensure, etc. specific laws before
making any moves.



Recruitment Process (Part 2)
After your number-one candidate passes all background and reference checks, it’s time to formalize
Have you ever lost a
the offer and complete the recruitment process. Write an offer letter, continue communication with
candidate between the time
the candidate until his or her start date, and report the new hire if your state requires it. you made the offer and the
Before you complete the recruitment process, time they started? Even if
find out if your state requires the reporting of the candidate is starting
new hires. Make sure you are up-to-date on in two weeks, a lot can

Offer Letter
potentially change in that
these requirements. If you are using a third-
time. Make sure you and
ne party payroll vendor, they should be doing this
to clearly outli others in the organization
offer letter is for you, but it doesn’t hurt to double check.
The purpose of an t
of employmen stay in close contact with
d conditions
the basic terms an ibility the new hire until he or
pervisor, elig
te, salary, su
incl uding start da she starts, as it helps keep
g and other
s, drug testin the new hire engaged and
da te for benefit also
ion. It should
eck informat shows you are excited to
ba ckground ch t-
ployment is “a have them on board.
candidate’s em
incl ude that the ey will
information th
are paid, the
will,” how they mpletion
oll (i.e., I-9 co
aced on payr
need to be pl should be
e offer letter
tation), etc. Th
and documen ed in the
the copy plac
new hire and
signed by the dgement
fer acknowle
’s file. The of
new employee e it
itical becaus
particularly cr
as mentioned is offer and
ptance of the
ndidate’s acce
verifies the ca letter leaves
A good offer
its terms an d conditions.
retation.
om for interp
little to no ro



Other Considerations
You don’t need to make things complicated. Consider these four
practices for your organization’s recruitment process:

1. utlook is a simple way to keep track of resumes, and there
O
are many other applicant tracking systems that are easy-to-use
and affordable. Your metrics can be as easy as time-to-hire or as
complex as multiple levels of metrics around quality-of-hire, time-
to-productivity, hiring manager satisfaction, etc.

2. rain your employees to always think like a recruiter. Teach them
T
how to “sell” the great aspects about your organization to anyone
outside the organization. Not only is this key to recruiting quality
people into your organization, but it is an effective sales tool that
can help identify potential customers.

3. Your employee referral program can be as simple as regular
notifications to your employee base about current openings,
including anything from a small treat to a complex internal
marketing campaign with large rewards. If you’re using cash
rewards to employees who recommend qualified candidates that
you end up hiring, remember that your rewards don’t have to be the
same for every position. You may have large rewards for positions
that you’d normally fill using a search firm, and negligible rewards or
no reward at all for positions that are relatively easy for you to fill.

4. Pipelining is a must in any economy. Keep track of those
individuals who you felt at the time would be a good fit for your
organization. Maybe you didn’t have the right position available
or they were the bride’s maid, but still a good, quality candidate.
Find simple, easy ways to stay in touch with them. Think about
sending regular communications that keep them up to date on what
is happening within the organization. This can also be effective for
temporary or seasonal hires.



Orientation
What does every new employee need to know about your organization in order to be
an effective worker and colleague? Find out by examining your culture, performance
expectations, client service expectations and more. You have one chance to make a good
impression on your new hires; one chance to make sure they get started on the right foot.
Don’t lose that opportunity by being unprepared. Remember that these employees have
made a commitment to your organization. They want to be successful and they want the
organization to be successful. Give them the tools and information to make that a reality.

Document what you talk about during orientation in each employee’s file. Using an orientation
checklist can help support all processes and procedures, as it provides documentation of
what was discussed upfront while introducing the employee to the organization.

The checklist should clearly define the employee’s first 90 days with the organization and the
process that surrounds getting them acclimated and trained in their job responsibilities. The
first week will cover key items such as new hire paperwork, benefits, the employee handbook
and other key policies and procedures, as well as the job description and expectations. Be
sure to include touch points along the way so that you know how well the employee is getting
settled. Time spent here is a valuable investment in long-term retention.

The document should also include a checklist for the employee’s direct supervisor, which
may help ensure that the employee is receiving the right information and follow up during the
critical first weeks and months of their probationary employment. It also serves as a reference
tool to monitor their probationary period. When creating your orientation checklists, draw
your supervisors into the process. They are most knowledgeable about potential issues and
stumbling blocks. The checklist will help keep their training and mentoring on point.



Compensation
Plan Design
Paying people competitively and equitably is critical to any � Exempt/non-exempt evaluation is critical regardless of the size

organization that wants to retain top talent. While we’d like to of your organization. The Department of Labor recently hired
believe that our employees do not know what others are making, more investigators to look closely at organizations to ensure
we would be woefully mistaken. Pay is seen as a measure of they are classifying employees correctly. Remember, when you
how the organization feels about an employee. When employees classify positions as exempt or non-exempt, you have a duty
perceive that there are significant pay differences for positions that to use the tests for the various classifications. Keep in mind
are similar, we sow the seeds for dissatisfaction and turnover, and that it is job responsibilities—not job titles—that determine the
potentially wage claims. classification of any position.

Compensation has a lot of moving parts, and you should � Conduct regular surveys to know and understand where you

maintain focus for all of these parts: fall in your market space. From developing relationships with
others in your competitive area to participating in external salary
� What is your organization’s compensation strategy? Where

surveys to administering your own large-scale surveys, you have
do you want to fall in the market place? Do you want to pay at many opportunities to find competitive information. Find out what
the top of your market or somewhere in the middle? Is it okay your peers are using and go from there.
for you to be considered the lowest-paying organization on the
compensation spectrum? Your philosophy is important as you � If you have a formal pay structure, make sure you have a process

go to market to compare salaries for key positions. in place to incorporate new positions within the organization.
The Department of Labor wants to see that you have an effective,
� Job descriptions are critical for all positions. Again, these don’t

consistent, regularly used process for making decisions around
have to be long documents. They can be as simple as 10 bullets the placement of positions in your salary structure.
explaining the key job responsibilities.
� Strong incentive plans clearly

� Your formal pay structure can be a system of grades and

define what behaviors are
ranges, or it can be a documentation of current positions and rewarded and then are regularly
an informal ranking. This is even more critical now with the tested to make sure those
Ledbetter Act in place. You need to be able to explain your behaviors are indeed being
pay decisions and a formal system can help do so. A formal rewarded. Incentive programs
compensation system also gives credence to your desire to pay don’t have to be expensive nor
fairly and equitably. Employees want consistency and they want made up of all cash. Get creative!
to feel as though they are paid appropriately for the job they do.



Compensation continued...

Compliance
Compliance continues to be a critical area for all organizations. Make sure your processes
support good compliance through three things: Timely and accurate changes, confidentiality
of information and supervisor training on basic compensation practices.

First, you should have proper checks and balances to ensure that payroll changes are timely
and accurate. Payroll entries should always have a cross-check by a second party to maintain
the integrity of the system. Also, make sure your employees understand the importance of
keeping their personal information updated and notifying you when there are changes.

Second, all employee files and salary information should remain confidential. Make sure that
you are keeping this info under lock and key, only allowing access to that information to a
supervisor/manager on a need-to-know basis.

Finally, train your supervisors on the basics of compensation. If you have a formal salary
structure, make sure they understand the basis of the structure and how they should use it to
give raises, etc.



Benefits
Plan Design Communication
Many of the things that we say about compensation also apply to benefits, including having a clear
strategy and knowing what’s competitive. Successfully design and communicate your organization’s
benefits plan by taking the following six steps:

1. Partner: Start working with a good benefits broker who has your organization’s best interest in mind.
A good broker will be responsive to your needs throughout the plan year and will act as an advocate
for the organization when there are issues and during renewal periods. A good broker will also help you
communicate so your employees get the most out of their benefits. Additionally, they will work with you
to create a plan design that will work for your organization.

2. Strategize: Know where you want to position your organization in the market. What benefits do you
want in order to attract the top talent you need? Your benefits broker can often be helpful.

3. Research: Your broker can also help conduct regular benefit surveys in their sector to determine
whether what your organization offers is competitive.

4. Communicate: Open enrollment time is not the only time to communicate with your employees about
benefits. Make sure they know what benefits are offered and how to get the most out of what you
are offering. Many organizations choose to communicate around the value of the benefits, including
statutory benefits that employees receive. It’s often very eye-opening for employees to see exactly how
much their organization has invested in them. This can actually positively impact turnover.

5. rovide accessibility: You have an obligation to provide Summary Plan Descriptions (SPDs) or advise
P
employees how to access them if they are online, and health care reform is going to provide even more
obligations for employers. For example, health care reform regulations are going to require that any plan
design changes are communicated at least 60 days prior to the changes taking effect.

6. Update: It is your responsibility to ensure that your plan documents are up-to-date, as these are the
documents that are the last word in how your plans need to run. Make sure your broker provides the
appropriate amendments when you make changes to the plan design.



Benefits continued...

Compliance
Compliance is equally critical in the area of benefits and it is an area that is continually
under scrutiny by the government. As an individual with HR responsibilities, it is essential
for you to:

� Input timely and accurate benefit deductions into your organization’s system

� Provide COBRA notices during the orientation process and within 14 days of termination

from the plan. These must be sent to participants and family members covered under the
plan, and must be sent via U.S. mail

� Protect employees’ health information by limiting the number of people who can access

medical files and deal with claims issues. Ensure that files are secured and you have both
a policy and process that is HIPAA compliant

� File 5500 forms each year by the specified deadline for 401(k) plans

� Administer the Family Medical Leave Act (FMLA) and other leaves properly by knowing

what you must provide to employees, documenting any leaves and getting the
appropriate documentation

� Train supervisors on benefits and leaves so they understand FMLA and other leaves, as

well as processes associated with these leaves



Training Development
Training and development activities help support your compliance � Have a clear idea of what licenses and certifications are

efforts by showing that you have provided the right kind of training necessary for your employees to function—this will vary from
for the positions in your organization. Training can be an adjunct to organization to organization. All licenses and certifications
the discipline and termination process. Additionally, training helps typically have an expiration date. If they are necessary for
you meet any requirements that you have in the area of safety. compliance purposes, make sure you have identified an internal
Careful documentation of training received by employees is critical individual who can track the terms of the documents and provide
to support compliance in many areas. Training and development reminders to those involved.
should include these aspects:
� After every training program, evaluate its effectiveness. Take a

� A needs assessment doesn’t have to be complicated or
few minutes to talk with supervisors and participants about what
cumbersome; spend some time with your supervisors, managers worked and what didn’t. Sometimes waiting a week to do this is
or executives talking about where performance could be useful so that you get information about what people have been
improved and then figure out if there are training components able to use. Remember that we want to look at the impact of
that would be useful. What are you required to do from a training. Did the training help the participants be more effective in
compliance standpoint that training can support? their jobs?

� Everyone could use on-the-job training and coaching, and
� Supervisors are your first line of defense—what skills could you

it could be a good opportunity to use a mentor approach by help them improve through supervisory training? Whether
using some of your supervisors or key employees as trainers, that might include harassment prevention training, interviewing
you can keep it simple and cost effective. Be sure to document skills training or discipline and termination training, what a
attendance at any training activity for your files. supervisor says and does may be critical to defending against an
employment claim.
� Take an inventory of any potential safety concerns in your

organization and work with your insurance broker to figure out � Whether you have two employees or 2,000 employees, you

what safety training is available on the outside through your must conduct harassment prevention training on a regular
carriers. If a claim is filed, demonstrating that you’ve provided basis and document training attendance. If an employee brings
appropriate training will pay dividends. a harassment claim forward, it is important that you can show
training has been provided to your employees.



Performance Management
Consistent, well-planned and executed performance reviews, has demonstrated that employees typically rate themselves
disciplinary interviews and terminations are critical in protecting lower than their supervisor does. The self-appraisal is a good
your organization from employment claims. The spectrum of jumping off point for a solid conversation about an individual’s
performance management activities should include: performance.

� Performance standards and expectations: Managers and
� Pay for performance: Pay decisions should be linked to

supervisors need to articulate what constitutes good work. If they performance ratings. This presupposes that the performance
can’t do this, they can’t expect to see top performance; however, appraisals are valid looks at performance. Since your
employees who fully understand what is expected of them can performance review should focus on the responsibilities and
perform at the level required with proper training. Performance expectations of the position, a strong performance review system
expectations also provide the groundwork for concrete should be able to clearly differentiate levels of performance.
discussions about performance, both positive and negative.
� A consistent disciplinary process: Similar disciplinary

� Appropriate evaluation tools: Use a consistent tool to evaluate
situations should be treated in a similar way, and you should
performance—one that is used to evaluate everyone on the have the flexibility in your discipline system to match it to the
same criteria as related to their job. Consider working with incident. A rigid system ties you into a certain action for a certain
a professional to develop competency-based performance situation. Leave yourself room to choose the disciplinary action
appraisals that focus on the competencies necessary for that you feel fits the situation.
success in the specific job and organizational culture.
� Discipline training for supervisors: Supervisors need

� Regular performance reviews: Your evaluation tool
training on your process to ensure that they are creating
should focus on the expectations of the position that were accurate reviews and documenting performance properly
communicated to the employee and should be used to provide for disciplinary purposes.
feedback on a regular basis.

� Employee self-appraisal: Are employees asked to rate their

own performance? Self-appraisals can be a valuable tool to help
employees put their own performance in perspective. Experience



Employee Relations
Everyone wants to work in a great place where teamwork and � Supervisory training: Supervisors need to understand how the
communication are strong, employees feel that they have organization expects them to deal with problems and employee
the necessary resources and are treated fairly, and everyone relations issues, especially harassment prevention. Training
understands what is expected. Some ways to ensure effective provides an affirmative defense for the organization if there is a
employee relations include: claim filed—showing that you did harassment prevention training
will help your case.
� Employee training: Employees need a clear understanding of
the “rules of the road.” What do we expect of employees and in � Employee communications: Other ways to ensure good
turn, what can employees expect from the organization? Many of employee relations include communications such as newsletters
those items are also outlined in the employee handbook. and state-of-the-organization communications that keep
employees updated.
� Communication processes: Make sure you have clearly defined
communication channels for employees’ problems—who should � Temperature surveys: Get a pulse on the organization by finding
someone go to if they have an issue? You also need to make out what employees think. Make sure you are prepared to act on
sure there is more than one person to whom the employee can some items brought up, or you may lose credibility.
reach out. For example, if the supervisor is the problem, to
� Exit interviews: Obtain feedback from someone who has left the
whom else can the employee take his or her concerns? This
aspect is especially critical when talking about harassment organization by conducting exit interviews. In addition to giving
or discrimination, as the courts look to see whether you have the employee closure, these also give the exiting employee a
a process for handling employee issues and whether those chance to share valuable feedback that will allow the organization
processes were followed. to improve. Consider using a third party, which could allow for
more candid comments.



Handbook
What is an Employee Handbook?

em·ploy·ee hand·book (noun): Your handbook is one of your best
organizational protections and is the cornerstone of compliance
and employee communications. It is a set of expectations and a
“rules of the road” compilation, so make sure that it is regularly
updated; has required federal, state and local compliance language;
and is widely disseminated to everyone in your organization. The
handbook is also a supervisory tool, so your supervisors should
also receive training on the content and their related responsibilities.
The handbook—which should be clear, consistent, available
and well-organized—should be distributed to all employees and
everyone must sign an acknowledgment stating they received
the handbook, which should be placed in their file. You also need
to make sure that the employees understand all polices in the
handbook—this starts with orientation.



Employee Handbook Checklist
Must-Have’s
Setting the stage for employment Paying employees correctly
Proof of authorization to work
Disclaimer
Employment status
Equal Employment Opportunity Statement Overtime
Genetic Information Nondiscrimination Act (GINA) Compensatory time (public entities only)

Americans with Disabilities Act H
andbook acknowledgement: Must be signed and dated by
employee, and placed in employee file by the employer
Harassment Prevention Policy

Other critical policies
Employment at-will
Confidentiality
Access to employee records

Managing required leaves of absence/time off

Family Medical Leave Act

Managing breaks
Lunches and breaks Good job
B
reak Time for Nursing Mothers
This will be a great addition
(update to FLSA under PPACA)
Way to go the extra mile!



Should-Have’s
Workplace basics Cell phone use/texting
Hours of operation Employment verifications
Work schedule Open door policy
Parking
Communicating about benefits
Building access
Benefits
Non-solicitation
Types of benefits available
Acceptance of gifts
Eligibility
Smoke Free Workplace
Paid time off – vacation, sick, personal, holidays
Introductory period
COBRA eligibility
Reporting absences
Jury duty
Dress code
Reporting time When employees must leave the organization
Termination process
Managing to great performance
R
eminder of important policies including at-will,
Performance reviews confidentiality, etc.
Salary reviews
Terminable offenses

Communicating effectively Good job
Inter-organization communication
Computer use/email policies
Social networking/social media Way to go the extra mile!



Nice-to-Have’s
Creating a great culture

Organization background
History
Mission, vision, values

Good job


Way to go the extra mile!



Compliance
We’ve talked about compliance opportunities throughout this � Employee classification: Make sure that all your employees are

guide, but there are a few other compliance-specific items to think properly classified as exempt or non-exempt. Exempt employees
about for your HR functions: are not subject to the overtime requirements of the Fair Labor
Standards Act, but it is the individual’s job responsibilities that
� I-9 forms: There is considerable governmental activity

determine whether or not they are exempt.
surrounding I-9 forms, and many organizations have had these
audited. Make sure yours are correctly and completely filled � Independent contractors: If you use independent contractors,

out and that you have an updated form for everyone in your make sure you have a specific contract that stipulates the
workforce with appropriate documentation. Audit your I-9 forms work to be performed and make sure you have checked the
before someone else does, and ensure you purge them on an requirements for classifying someone as an independent
appropriate schedule. Find more detailed information on I-9 contractor. If they don’t meet the requirements, you may be
audits in the next section of this guide. putting the organization at risk, as the Department of Labor and
IRS are going after organizations that misclassify workers.
� Tax forms: Have appropriate tax forms on file for each employee

and be especially careful for those employees working out of � Required posters available: Employers in the United States are

state. Not all states require state tax forms, but if they do, make required to have their employment posters visible in high-traffic
sure they are current. areas. Visit the Department of Labor website to obtain copies of
all posters for free.
� Overtime: Overtime is owed for all hours worked over 40 hours

in a seven-day pay period, and you must pay for all hours � Workers’ compensation: If a worker is injured, get a detailed

worked even if the individual did not get approval for extra hours. report of what happened and fill out the first report of injury,
Overtime is time-and-a-half of the individual’s regular hourly rate which is a standard form used by workers’ compensation
of pay. Compensatory time is not an acceptable pay practice in carriers. You also have to post the OSHA 300 log each year in
the private sector. February for the previous year.



I-9 Audits
What can you do to prepare for a potential I-9 audit? organization uses E-Verify, it must be utilized for
Here are 10 steps to take: all new hires, not selectively. Employers can enroll Overall, it is
online for E-Verify at www.dhs.gov/E-Verify. good HR practice
1. ake sure your organization has a completed I-9 form and the
M to train one or
appropriate background documentation for all employees hired 5. Employees who indicate they are “aliens authorized
two individuals
after November 6, 1986. Copies of the most recent I-9 form can be to work” should specify their status and to manage the
downloaded from the government website, www.uscis.gov/i-9. All classification on the I-9 form. Employers must then I-9 forms and
documentation submitted as proof of citizenship must be unexpired establish a system to follow up on any conditional process. This
or it will be viewed as invalid by the auditors. Spanish I-9 forms can authorizations before the expiration date. will help ensure
be utilized for translation purposes; however, the English version is that all forms
the form that must be retained for records purposes. 6. Be proactive and audit your own files, which will
are completed in
give you the opportunity to correct any I-9 forms. a timely fashion
2. ew hires should have their documentation and form
N Refer to the federal government’s manual on I-9 and completely
completed by their first day on the job, and at least one piece forms for more details, which can be downloaded filled out.
of documentation presented must include the employee’s from their website at www.uscis.gov/I-9.
photograph. By law, new employees have up to three business
days from their first day of hire to provide the appropriate 7. After you have audited your files, place a note in your I-9

documentation, and they must use physical addresses, binder indicating the date that the files were audited. This adds
not P.O. boxes. transparency to any corrections made on the documents.

3. he federal government does not require you to copy the
T 8. I-9 forms must be retained for as long as the employee is working

documentation presented; however, it is good HR practice to do for you. After the employee leaves your organization, you must
so, saving much time if you need to verify any documentation retain his or her I-9 form for at least three years after the date of
at a later date. Further, all completed I-9 forms and any copies hire, or one year after the employment termination date, whichever
of identification documents should be kept separate from timeframe is longer.
employees’ personnel files. Store the documents in binders 9. -9 forms can be retained on paper, microform or
I
in alphabetical order by employee last name. This way, if you electronically, but electronic records must comply with the
are audited, all you need to do is hand the auditor your binder Department of Homeland Security’s standards and must be easily
of I-9 records. accessible by auditors. Review the federal guidelines for properly
4. any organizations are also utilizing E-Verify, which is the Web-
M uploading I-9 forms for electronic storage, particularly the steps
based verification companion to the I-9 form. E-Verify is a free required for the signatures and electronic signature protocol.
program that provides an automated link to federal databases, 10. eview each I-9 form to make sure that all information is
R
helping employers confirm the employment authorization of new completed in its entirety. Fines will be assessed for incomplete
hires. In essence, it shows that your organization has taken all information, and can range from $110 to more than $1,000 per
steps available as part of the new hire verification process. If an violation and perform.



Administration
As with all other aspects of human resources, administration also has its general best practices
that can help move the HR department forward more effectively. Among those best practices are:

� Clearly defining the positions of all who support the HR function and ensuring they understand

the expectations

� Creating a checklist that will allow you to audit your files periodically to ensure that the

information contained in those files is appropriate

� Including a policy in your handbook that states the process for requesting a review of file. Be

aware that some states have specific requirements for employees to review their files. In some
situations, these requirements may cover how quickly the file must be produced, what can be
withheld and whether the employee can make copies of any documents

� Establishing clear guidelines of how long you are will retain files and who is responsible for

purging those files. Records retention periods will vary by type of document

� Maintaining confidentiality in all situations by all those involved in HR



Continuing Education
The world of human resources changes often with the addition of new employment regulations,
updates to existing laws and new interpretations. If you have responsibilities in your organization’s
human resources department, it is critical that you continue your education to develop professionally.

It isn’t easy staying updated on the latest changes and developments with employment laws. Keep
your knowledge fresh by attending training sessions and legal updates for all the latest news and
changes. You may want to also consider getting a professional certification.



Various Laws
The following list is a sampling of the federal laws governing employment matters. This list should not be
considered all-inclusive nor a complete review of the specific law noted. Remember, organizations are
required to comply with state and local laws as well. It is your responsibility to determine with the laws
with which your organization must maintain compliance.

Employers with 2+ Employees
� Equal Pay Act of 1963: This act requires employers to pay employees fairly and makes it illegal to pay

different wages to men and women if they perform equal work in the same workplace.

� Fair Labor Standards Act: This act regulates overtime, minimum wage and child labor laws.

� Immigration and Nationality Act: This act requires employers to verify eligibility of all employees hired.

� Occupational Safety and Health Act: This act requires employers to maintain a workplace that is safe

and healthful for its employees.

� Nursing Mothers in the Workplace Act: This act requires that employers provide reasonable unpaid

break time each day to an employee who needs to express breast milk for an infant.



� Title VII of the Civil Rights Act of 1964: This law makes it illegal to discriminate against someone on

the basis of race, color, religion, national origin or sex. The law also makes it illegal to retaliate against
a person because the person complained about discrimination, filed a charge of discrimination or
participated in an employment discrimination investigation or lawsuit. The law also requires that
employers reasonably accommodate applicants’ and employees’ sincerely held religious practices,
unless doing so would impose an undue hardship on the operation of the employer’s organization.
An amendment also makes it illegal to discriminate against a woman because of pregnancy,
childbirth or a medical condition related to pregnancy or childbirth.

• W
orkplace harassment deserves special mention here. Harassment can include sexual harassment
or unwelcome sexual advances, requests for sexual favors and other verbal or physical harassment
of a sexual nature. Harassment does not have to be of a sexual nature; however, and can include
offensive remarks about a person’s sex. For example, it is illegal to harass a woman by making
offensive comments about women in general.

� Americans with Disabilities Act of 1990: This law prohibits employment discrimination against

qualified individuals with disabilities. The law also requires that employers reasonably accommodate
the known physical or mental limitations of an otherwise qualified individual with a disability who is
an applicant or employee, unless doing so would impose an undue hardship on the operation of the
employer’s organization.

� Genetic Information Nondiscrimination Act (GINA): This law makes it illegal to discriminate against

employees or applicants because of genetic information.



� Age Discrimination in Employment Act of 1967: This act prohibits age discrimination against

individuals who are 40 years of age or older.

� Consolidated Omnibus Budget Reconciliation Act (COBRA): Employees who have lost coverage

under their group plan due to certain “qualifying events” must be given the option to purchase
the same health coverage available to active employees. Note that employers with fewer than 20
employees are subject to state laws, where applicable.

Employees with 50+ Employees
� Family and Medical Leave Act (FMLA): Employers must provide up to 12 weeks of unpaid leave

to employees because of the birth or adoption of a child, to care for a child or family with a serious
health condition or because of the employee’s own serious illness.


Have we covered every possible compliance concern that you should
have? Of course not. Our intent is to provide you with a framework to
begin looking at your organization in the context of the employment
laws and best practices that are relevant to your organization. Take a
moment to start a to-do list for yourself so that you can begin looking
at the people-side of your organization in a focused way. You can’t
change everything at once, but know what you need to look at and
take it one high-priority item at a time.

Contact Us
Joyce Grenis
Senior Vice President,
Human Resource Consulting Services
jgrenis@sikich.com
630.566.8454
www.sikich.com

Find us on Facebook @sikichllp

Follow us on Twitter #sikichllp

Visit our Blog www.sikich.com/blog


30 Minute Guide to HR: A Quick Guide to Success in HR for the Busy and Confused

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