WELCOME!!!! Human Resource Presentation Kathy Wallace RMFOA Hilton Garden Inn Denver, CO 8-29-13 1

WELCOME!!!!

Human Resource PresentationKathy Wallace

RMFOAHilton Garden Inn

Denver, CO8-29-13

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Experience/Background/ResourcesExperience/Background/Resources2

AgendaAgenda

My Background Career Education Resources

Immigration Compliance Federal and State

File Management/RetentionWage and Hour ComplianceUnemployment ClaimsFuture possible topics

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HR CareerHR Career

Personnel Intern

Personnel Assistant

HR Clerk (AND Sales Clerk, Store Manager, Field Consultant)

Asst. and Store Manager

HR Coordinator/Generalist

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EducationEducation

Bachelor of Science Psychology

Bachelor of Science Management, emphasis in - Dean’s List, National Honor’s Roll, 3.78 G.P.A.

Master of Science Organizational Leadership, emphasis HR

- Graduated with Honors, 3.97 G.P.A. - Certificate in Strategic HR Integration

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Memberships/ResourcesMemberships/Resources

Society of Human Resource Management (SHRM) - Member of Regis Chapter, Colorado Springs Chapter, National Chapter - Access to SHRM database, laws, sample forms, knowledge center advisors

Regis Alumni Association - Access to extensive database and professors

- Can audit other classes for almost free (i.e.…Marketing, Accounting, etc…)

Personal Resources - Excellent Research capabilities - Networking contacts (Former supervisor/co-workers, friends, fellow students, etc…)

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Immigration ComplianceImmigration Compliance8

Immigration ComplianceImmigration Compliance

FEDERAL COMPLIANCE: I-9’s

1986, Immigration Reform and Control Act (IRCA)

* Established I-9, Employment Eligibility Verification

* Immigration Act 1990

* IIRIRA of 1996

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Employee Section: I-9

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Immigration Compliance Immigration Compliance

Employee Section: I-9

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Employer Section: I-9

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Common Mistakes:I-9’s

- Employee forgets to bring ID’s, brings expired ID’s (Receipts,

Extensions OK)

- Incomplete information in section 1

- Employee forget to check citizenship box

- Employee forgets to date or sign

- Asking for a specific ID

- Asking for ID’s PRIOR to job offer

- Completing ID information in wrong column

- Backdating

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Common Mistakes: I-9’s

- Lack of notation when changes and/or updates are made

- Forgetting to make copies

- Failing to complete Before the 3rd day of employment

- NOT keeping the forms for 3 years after DOH OR 1 year after Term., whichever is longer

- Laminated (“Not validated if laminated”) or gold plated SS cards

- Accepting SS cards that state “Not valid for employment” or “Valid for work only with DHS authorization”

- Using an outdated form (new one expires 3/31/16)

- Forgetting D.O.H. under Certification

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Immigration Compliance Immigration Compliance

Reverification and Rehires

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Employer Section: I-9’sReverification & Rehires

Use this section to update expired ID’s from Lists A or C EXCEPT: - For U.S. Citizens (box must be checked*) - For Lawful Permanent Residents (LPR’s)* who have a Permanent Resident Card (Form I-551)

Use this section for name changes

Use this section for employees re-hired within 3 years of the date the ORIGINAL I-9 WAS COMPLETED – as long as the I-9 is current (use a new form if one has been issued)

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I-9’sAudits

Store Level - Consistent annual audits - When you buy a new store or suspect noncompliance State Level – Usually in conjunction with Affirmation audit by C.D.L.E. National Level - D.H.S., D.O.J. and D.O.L. all have the right to inspect I-9’s - Will receive a written notice of inspection 3 days prior - May be required to take records to local I.C.E. office - Refusals or delays are in violation of the law

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I-9’sCivil Fines

1. Hiring, Recruiting, Employing a person not authorized to work OR Committing or participating in document fraud OR Discrimination in hiring/firing/promotion

First Offense: $375 - $3200 per worker Second Offense: $3200 - $6500 per worker Third Offense: $4300 - $16,000 per worker2. Failing to comply with I-9 requirements OR Committing

document abuse First Offense (2nd and 3rd): $110 - $1100 per form

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I-9’sCriminal Penalties

1. Engaging in the practice of hiring, recruiting, or referring individuals not authorized to work in the U.S.

Any Offense: Up to $3000 for each unauthorized worker and up to 6 months in prison for the entire practice

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State Compliance: Affirmation Form

- 2007, Colorado Employment Verification Law, C.D.L.E. * Established Colorado Affirmation Form

- Must be completed AFTER job offer, but BEFORE 20th day after hire date

- Keep forms for length of employment

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Affirmation Form

Employee Responsibility – NONE

Employer Responsibility – Verify ID’s, make copies, and complete Affirmation form within 20 business days

Common Mistakes - Forgetting to complete! Forgetting copies/Illegible copies - Allowing employee to fill out information

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Affirmation FormAudits/Penalties

1. Audits can be requested randomly by the C.D.L.E.

2. “An employer who, with reckless disregard, (1) fails to submit the documentation required by this section, or who, (2) with reckless disregard, submits false or fraudulent documentation, shall be subject to a fine of not more than five thousand dollars for the first offense and not more than twenty-five thousand dollars for the second and any subsequent offense.”

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Recommendations

1. Keep I-9, Affirmation, and copy of ID’s stapled together2. ALWAYS keep separate from personnel file 3. Keep Affirmation until I-9 can be destroyed Ex: Hired 8/15/13 Separated 10/15/133 years after DOH= 8/15/2016: 1 year after Term = 10/15/14 SO: Keep documents until 8/15/16

Ex: Hired 8/15/10 Separated 2/1/143 years after DOH = 8/15/13: 1 year after Term – 2/1/15 SO: Keep documents until 2/1/15

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QUESTIONS????

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New Hire ReportingNew Hire Reporting

QUESTIONS????

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Record RetentionRecord Retention27

Record Retention Record Retention

Record Retention Time

Job applications/Resumes, Job ads, Interview notes, Employment verifications, Reference letters

Personnel Files: Hires, separations, demotions, transfers, layoffs/recalls, training records, employment test results, training materials, disciplinary actions, evaluations

Payroll Records: name, address, SSN, job classification, title, schedules, pay rate, dates of payments, pay changes, benefits, deductions, W-4 (SEPARATE)

1 year for applicants NOT HIRED(Keep EEO info separate)

3 years after separation

4 years after separation

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Medical Information (SEPARATE)

- FMLA records

- Medical notes or exams

- Request for accommodation under ADA

Worker’s comp. Claims (SEPARATE)

- Toxic Substance exposure or Blood-borne pathogen exposure records

Tax Records: Federal and state payroll taxes, wages, FLSA

- 4 years after separation

- 4 years after separation

- 1 year after request

5 years after date of injury - 30 years after exposure

4 years

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EEO forms (SEPARATE)

State new hire reports

I-9/Affirmation/ID’s (SEPARATE)

Government Compliance Reports - OSHA 300 Report

Training Materials: Employee handbooks, policies, job descriptions

4 years

1 year 3 years after hire date OR 1 year

after separation, whichever is longer

5 years after the date of the report (ex. 2013 report comes out in 2014, keep until 2018)

6 years after period of use

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Record RetentionRecord Retention

Filing System Employee Records

1. Personnel File – new hire paperwork, training paperwork, acknowledgments, disciplinary actions, evaluations, application/resume, tests, state report (3 years after separation)

2. Reference Checks, Background Checks, DMV records, (1 year)3. Payroll Records – Garnishments, Classification (exempt vs. nonexempt), W-4, payroll

changes (4 years after separation)4. I-9/Affirmation/I-D’s (As noted previously)5. Medical File – doctor’s notes, requests under ADA, Drug Tests (future) (4 years after

separation)6. Worker Compensation reports (5 years after separation)

FILES MUST BE SHREDDED

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Filing SystemStore Records

1. Applications/Resumes not hired (1 year)

2. EEO forms (1 year)

3. Old Training Materials OR Policies OR Handbooks ( 6 years after stop using)

4. Tax Records (4 years)

5. OSHA 300 Report (5 years)

6. Job Ads (1 year)

FILES MUST BE SHREDDED

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QUESTIONS????

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Wage/Hour ComplianceWage/Hour Compliance 34

Wage/Hour ComplianceWage/Hour Compliance35

Wage/Hour ComplianceWage/Hour Compliance

Federal State

Fair Labor Standards Act (FLSA) of 1938 established minimum wage, overtime hours and working hours

Federal Minimum wage is $7.24

Federal OT equals 40+ hours in a 168 hour period (7days X 24 hours)

Colorado Wage Act (Revised 2011) and Colorado Minimum Wage Order 29 (2013) established same

State minimum is $7.78 – must follow the higher of the two

State laws are stricter, so must follow them: OT must be paid with 40+ hours in 7 days OR 12+ hours in a 24-hour period OR more than 3 12-hour shifts in one week (usually nursing)

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Federal State

Minors: Minimum age for working is 14; hours limited for < 16 years

No hour limits for 16 years of age or older

Minors: < 18 years UNLESS Emancipated or already have Diploma or G.E.D.

Cannot schedule more than 8 hours in a 24-hour period

Cannot schedule more than 40 hours in a 7-day period

If 16 years or under, cannot schedule on school nights, AND not past 9:30 pm on non-school nights AND not more than 6 hours per day if the next day is a school day

MUST FOLLOW STATE REQUIREMENTS

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Federal State

Exempt vs. Nonexempt

*$455/week minimum

* Criteria for Exempt: - Executive Employee exemption - Administrative Employee exemption - Computer Employee exemption - Professional Employee exemption - Learned Professional employee

Exempt minimum salary is $455/week

Exempt vs. Nonexempt

*$455/week minimum (Federal rate)

* Criteria for Exempt: - Executive Employee exemption - Administrative Employee exemption - Professional Employee exemption - Outside Sales exemption

Exempt minimum salary is $311.20 (7.78 X 40)

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Exemption Definitions(State and Federal)

1. Administrative: Primary duties are non-manual; exercises independent judgment – can make policy decisions without approval; can enter into contracts (vendor) without approval

2. Executive: Supervises 2 or more people 50% of workweek; can make hiring/firing decisions without approval, or can at least recommend such decisions;

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3. Professional: Knowledge of an advanced type through extensive education (EXCEPT doctors, lawyers, teachers); primary duty is intellectual; or primary duty requires imagination or talent, in an artistic endeavor

4. Computer: If compensated hourly, must be at a minimum of $27.63/hour. Must be employed as a computer systems analyst or programmer, or software engineer

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5. Outsides Sales: Must spend 80% time in the field, not in an office; Commissioned Sales: 50% earnings are from commission

6. Miscellaneous: Ski industry (seasonal), Medical Transport, Caregivers (In-home)

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Salary Exempt VS. Salary Nonexempt(Yes, it does exist!)

Salary Exempt = exempt from OT

Must meet one Exemption AND Make minimum of $23,660/year - pay is the same every

pay period, in spite of the hours worked: - If employee comes in for any part of the day, must pay for full day - Can only deduct for full days missed for reasons OTHER than sickness/disability

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Salary Exempt cont’d

- Can deduct for a full day missed (even for illness) IF you have an actual PTO OR VACATION/SICK Policy

- Can deduct payment for jury duty- Not required to pay full salary in the initial or final week of

employment- No OT for 40+ hours

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Salary Nonexempt = Nonexempt from OT

- Salary based on 40 hours per week at $455/week- DOES NOT meet any of the Exemptions- MUST pay OT: Example: Hire an Assistant at $25,000 or $480.77/week * works 38 hours: pay is $480.77 * works 42 hours: pay is $480.77 + $24.04 (25000÷52÷40 = 12.01/hour x 2 hours)

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Recommendations

In general, only Store Manager positions should be exempt

Don’t use “exempt” status to avoid paying OT

Use the exempt status questionnaire (handout) to determine if a person should be salaried or hourly

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Recommendations

Pay the minimum wage

Employment of people 16-18 OK if don’t schedule over 8/day or 40/week: Follow state youth employment laws for 15-year olds

If you own two or more stores and an employee works 40+ between both stores, OT must be paid. IF the wage is different for each store, OT must be calculated using home store salary

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QUESTIONS???

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UnemploymentUnemployment48

UnemploymentUnemployment

Regulations

UI Benefits are funded through employer premiums via quarterly premium-reports and the wage-report process

Base RateFor 2013, employers must pay premiums for each employees’

chargeable wages: Max = $11,300 State Unemployment tax rate = 1.0 – 5.9% 1.7% for new employers

Bond RepaymentCDLE secured a $630M bond to increase the UI fund

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Regulations

Rate Increase Factors:

Average annual payroll increases

New benefit charges to account (new claims)

Level of UI trust fund decreases

Business stops paying wages for a period of time

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Regulations

How are Benefits Determined for the Employee?????

Must earn at least $2500 from employer(s) in Base Period

Employee earnings calculated on Base Period, a Predetermined time frame of 12 months (next slide)

Two formula’s used to calculate weekly benefit amount – the larger of the two amounts is used

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Unemployment Unemployment

Base Period Estimator

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Formula’s

“Calculate the total wages paid for the highest two consecutive quarters in the base period. That number should be multiplied by 0.6 for weekly benefit amount. The minimum amount is $25, and the maximum weekly benefit is $481

“Begin with the total wages paid in the 12-month base period and divide that total by 52. That number is then divided by 2 to determine weekly benefit amount. The Minimum weekly benefit is $25 and the Maximum is $529

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How Do You Avoid Unemployment Claims??????????????????????????

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Guidelines for Preventing ClaimsDOCUMENT! DOCUMENT! DOCUMENT!

Get a resignations statement OR make note to the file that clearly documents the reason for leaving

When separating an employee, have them sign the Notice or Letter that signifies the ending of the employment (when possible). Otherwise, document the events yourself and place in the file.

Performance Management: Consistent and accurate evaluations, as well as regular feedback sessions (daily incident reporting)

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Consistent and fair application of all policies, regulations and benefits

Holding all employees accountable for their jobs equitably

Progressive Disciplinary System: Verbal (but still documented!), 1st and 2nd Written Notice, Final Notice, Separation

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Guidelines for Preventing Claims

DOCUMENT! DOCUMENT! DOCUMENT!


Responding to Initial Claims

1. Don’t be late!2. Focus on the reason the employee was separated – don’t give

more information than asked 3. Reasons for separation should be based on specific, observable

behaviors4. Include all documentation such as disciplinary actions,

suspensions, signatures on handbooks or policies, etc…5. ALWAYS APPEAL LOST INITIAL CLAIMS! In hearings,most

employees talk themselves out of benefits

*IN GENERAL, IF AN EMPLOYEE QUITS THEY WILL NOT GET UI BENEFITS: BUT IF THEY ARE TERMINATED, MAKE SURE THE REASON IS THOROUGHLY DOCUMENTED.

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Questions??????

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Human ResourcesHuman Resources

Possible Future Topics

Writing effective evaluations or disciplinary actions Legal Posting Requirements Employee Relations Workman’s Compensation Claims Corporate Social Responsibility Organizational Development (company, group, individual

intervention methods) Training: Leadership, Customer Service, Merchandising etc…. Benefit Development and Administration Basic Employment Laws

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Documents

WELCOME!!!! Human Resource Presentation Kathy Wallace RMFOA Hilton Garden Inn Denver, CO 8-29-13 1