ADP TOTALSOURCE

Top 10 HR Mistakes You Want to Avoid

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

Pay Practices
1. Failure to Pay employees for short Breaks
The Fair Labor Standards Act does not require employers to provide breaks to employees (although some state laws do). However, if you do provide short breaks (generally less than 20 minutes), you will be required to pay employees for this time.

4. calling everyone an independent contractor

To determine whether an individual is an employee or an independent contractor under Internal Revenue Service (IRS) guidance, the relationship of the worker and the business must be examined. In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence will be considered by the IRS. You cannot simply label a person an Independent Contractor in an effort to avoid paying for workers compensation, payroll taxes, and benefits.

2. Failure to Pay employees for accrued Vacation

time Depending on which state you are in, you may be required to pay departing employees for their accrued, but unused, vacation time. It is important, therefore, to carefully track both accruals and usage of this time so that you do not end up paying out more than what the employee is entitled to receive.

5. Misclassification of employees Just because

you pay an employee a salary does not make the employee exempt from overtime requirements. Exemption from overtime is tied not only to salary, but also to the type of work the employee is performing. Failure to pay an employee overtime can result in the employer being required to pay double or even triple the amount originally due to the employee.

3. impermissible Deductions from or Withholding

of an employees Final Pay In many states, only certain deductions (such as for a health and welfare plan or taxes) are allowed to be deducted from an employees pay. Additionally, most states require payment of final wages to a departing employee within a specific time frame. There are penalties associated for failing to pay employees the appropriate amount and on time.

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6. lack of employee Handbook and Proper Job
Descriptions Employee Handbooks provide the road map for appropriate employee (and management) behavior. Similarly, proper job descriptions set forth the expectations of each position, including a list of tasks, responsibilities, required skills, and qualifications. Consistently following the policies and procedures contained in a well-drafted handbook can assist the employer in defending against claims brought by employees.

9. Failure to Properly train supervisors While

some states require supervisors to undergo regular training (i.e., California Sexual Harassment Training), it is critical that all supervisors and management personnel are trained on how to handle complaints of discrimination and/or harassment, and that they know how to properly conduct an investigation. Many complaints to the EEOC or an equivalent state agency stem from an employees belief that his or her complaints were not properly handled or addressed by the employer.

7. requiring employees to Maintain confidentiality

During investigations Having a blanket policy prohibiting employees from discussing internal investigation details with others may be a violation of Section 7 of the National Labor Relations Act. Further, the Equal Employment Opportunity Commission (EEOC) cautions that overbroad prohibitions may trigger retaliation prohibitions in Title VII.

10. Failure to Document Employers often try too hard

to be nice by inflating performance appraisals of average or poorly performing employees. Additionally, an employers failure to consistently and accurately document employee performance problems, violations of policy, etc., oftentimes will result in he said/she said situations. Having appropriate documentation to support employment decisions goes a long way to defend against frivolous claims of discrimination.

8. Failure to Understand and grant reasonable

accommodations Knowing when you are required to grant an employee a reasonable accommodation (even when they may not ask for one directly) goes a long way in avoiding liability for claims filed for disability discrimination under Title VII and for failure to accommodate and retaliation claims filed pursuant to the Americans with Disabilities Act Amendments Act.

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

About ADP TotalSource

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

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